Economic History U2

ECONOMIC HISTORY U.
2
FROM THE NEOLIYHIC REVOLUTION TO THE GREAT EMPIRES OF ANQUITY
2.1 FIRST HUNTERS AND GATHERERS
 Hominins
Appeared in Africa in late Pliocene epoch (6M years ago), could walk upright (and run) and grasp
objects with their hands. Heads were only large enough to have chimp-sized brains.
Pliocene epoch: (2.6M – 12.000 years ago), characterized for having at least 20 episodes of
glaciation and warming.
Hominins increased intelligence (larger skulls with more complex brains).
 Human predecessors (omnivorous)

o Australopithecus: South Africa, Kenya, Chad, Ethiopia. Rivers and coast habitats, where
searched for seafood and mollusks.
o Homo habilis: Africa. Used stones for poking and chopping.
o Homo erectus: Middle East, Caucasus, India, Indonesia, Australia, China, Africa. Used hand
axes and tools for sewing and cutting.
All these species were extinct:
o Inability to adapt to climate change of geologic catastrophes
o Failure to compete against other human ancestors.
 Homo sapiens (190.000-160.000 BCE)

o Largest brains of all
o Technology: weapons (spears or arrows) to kill animals or competitors. This led to a richer
diet (protein energy), so they had better health, mental activity, and performance.
o Communication and social organization (clans) helped them to adapt to the changing
environment.
o Travelled long distances (food and shelter).
2.2 NEOLITHIC REVOLUTION
Began around 13.000 BCE in Iraq, Jordan, and Syria (zone known as the ‘’Fertile Crescent’’).
Humans started cultivating nutritious plants (provided carbohydrates) that give them energy.
Domestication of animals and cattle breeding (sheep and goats)
All these conditions led to a better health, taller individuals, and larger groups.
They also developed storable food and dwellings (‘’house’’).

Most common crops (cultivos) were wheat, barley, and peas.
Started the production of pottery (for storage and cooking) as well.
2.3 FIRST FARMERS SOCIETIES
The excess production led to storage and trade, and the consecutive accumulation of production resulted
on wealth.
Inhabitants specialized on farming, cattle breeding, dwelling construction, or trading; although there were
three basic sectors: agriculture, manufacturing, and services.
The appearance of division of labour could permit inhabitants develop leisure and creative activities
(excess time).
New technologies were developed:
o Baking and fermentation: consumption of bread and beer.
o Small diversion dams (diques) and canals.
All these advances permitted the raise of MODERN SOCIETIES.

 Around 26 separate and independent agricultural focus were found.
 Some factors, like the growth on nº of inhabitants, labour specialization, property defense or
leadership; lead to the formation of a state, to coordinate and govern, and organize agricultural
problems (natural disasters, invasions, famine…).
 Excess production led to the population organization on guilds (gremios).
 State formation provoked the apparition of hierarchies and levels of power. Consequently, social
classes, law and war were born.
2.4 THE ECONOMY OF THE GREAT EMPIRES OF ANTIQUITY
Introduction
The first city in history is Uruk (around 5500 BCE), Mesopotamia, with a population of around 10.000. it is a
historical region in Western Asia situated near to Tigris-Euphrates River, in the northern part of Fertile
Crescent. It has extense protective walls (shows that wealth protection and defense was important).
Dynasties were an organization form and stayed during centuries:
Sumerians > Akkadians > Babylonians > Assyrians > Neobabylonians > Persians
Under the Babylonian empire, Hammurabi (king) unified the city-states that formed Mesopotamia and
published a set of laws to define property rights and contracts.
Mesopotamia
Mesopotamia counted with an extensive trading network (trading outposts in Babylon, Uruk,
Afghanistan…); products traded were mainly metals (silver, gold, cooper), precious stones and textiles.
They made use of donkeys to travel, although the domestication of horses and invention of the wheel also
helped.
Formal organization was based on a leader of the city, a leader of the cattle pen (ganado) and a leader of
lambs (corderos); and other professions (potters, jewelers, gardeners…).
All of them received fixed rations for their services (these provoked the birth of salary-based work
accounting).
Mesopotamians started to use written language in cuneiform and inscriptions in clay tables.
Mesopotamian achievements
The ‘’age of empires’’ led to the spread of writing, religion, philosophy, organized bureaucracies, and social
classes. This was a result of Bronze Age technology (use of metals such as cooper and bronze).
o Bronze weapons were essential for maintaining the armies, so all of them encouraged long-distance
trade.
o Tools, precious stones, and spices show the prosperity reached by ancient empires.
Other ancient empires (5500-3000 BCE)

 Indus valley: scattered cities along an alluvial plain, each engaged a specialized role in a system of
diversified agriculture and all of them traded local craft products.
 Ancient Egypt: with inhabitants since 8000BCE, it was an empire placed along the banks of Nile
River and ruled by pharaohs. The state expanded and sustained the development of settled
agriculture. There was no irrigation works (bc of the annual floods of the Nile).
Mesopotamia, 3000 BCE onwards
 Assyrian empire: was the world’s first great empire
 Neo-Babylonian empire: covered the east coast of the Mediterranean, Syria, Iraq, and Iran. They
didn’t use soldiers to commandeer slave labour, they used a tribute system (taxes) to hire
contractors. Rulers let the merchant elites in each city develop the surrounding fields, while
keeping the trade routes. The result was economic growth, higher living standards and growing
population.
GREEK EMPIRE
Rise of Greek city-states

The neo-Babylonian empire eventually moved to Persia, while Greek city-states had expanded along the
coasts of the Mediterranean and the islands of Aegean Sea. These city-states development was based in
market principles to buy food and raw materials from surroundings or distant villages, and then
manufacture goods to sell. Products were traded in ‘’agoras’’ (metals, clays, grains…).
Greek cities stablished special quarters (colonies) to house their own merchants, fisherman and settlers;
and built warehouses and temples.
They also invented a coined money (with gold and silver), assuring foreign merchants a fair payment for
their goods (this eventually led to wider circulation.
Greek citizens and peasants were also soldiers, so they were unwilling to engage in extended offensive
raids against other cities (had to take care of their shops and farms).
Greeks were originally cultivators; but the mountainous character of their homeland led them to the sea
products production.
Greek trade
Greeks traded mostly in seas, so merchants financed the naval armies to protect rutes. Extensive trading in
Mediterranean and Black seas led to an exponential economic growth, making them the first maritime
empire.
Slaves and workers were treated fairly and battled in wars to win citizenship (right combination of
incentives and labour productivity).
Greece evolution
After the Peloponnesian war (431-405 BCE) against Sparta, it started the ‘’golden age of Ancient Greece’’.
The combination of naval and military forces led to the conquests of Alexander the Great (Asia Minor,
Egypt and part or India). This made a huge part of society had higher living standards that in northern
Europe.
The result of this growth was larger cities, homes with furniture and devices, elaborate products, and
consumption of imported food.
Finally, the decline of the empire coincided with the rise od Roman empire to the west, which adopted
many Greek developments.
Greece legacy
 Philosophy: trying to understand the world in a non-mythical way and new methods to think.
 Arts: realistic artwork (sculptures and statues) in search for beauty.
 Democracy (citizens vote, public spirit).
 University (Plato and the Academy)
 Math: geometry
2.5 ECONOMY OF THE ROMAN EMPIRE
Roman trade
Roman republic expanded its economic area in Italian peninsula at the time that Greek empire was on
decline. Eventually, Rome created an empire that dominated the western end of the Eurasian landmass
(including Britain) and extended along the African shores of the Mediterranean.
Rome was perfectly situated to become a center of trade with the Etruscans and Latins; and they also
traded with Greek and Phoenician cities in the Mediterranean.
Roman city-states groped in the Latin League. Rome became a republic in 509 BCE (consuls were voted by
citizens). The roman republic pursued territorial expansion, with its powerful citizen-army and wealthy
merchants.
Roman evolution
Rome absorbed Greek sites and extended trading privileges to conquer merchants (providing security and
protection under roman law).
Rome fought three Punic Wars against Ancient Carthage (264-146 BCE), the capital of Phoenician empire.
After winning the war, Rome underwent a spectacular growth (Augustus established himself as first
emperor in 27 BCE and roman population reached 1.25 M and high living standard).
Economic growth was based on trade since merchants could enjoy diverse resources around the entire
Mediterranean and extend their markets into ancient civilizations of Sumerian and Indus Valley region
(these civilizations flourished in response to Rome´s rising wealth and population).
Ancient Rome decay

 Diseases
The Antonine plague (brought by Roman troops from Near east) consisted of an epidemic of
smallpox, which devastated one-third or roman population, as well as depleting the ranks of roman
armies that defended the borders of the empire. Urban centers were specially affected, so living
standard fell.
 Religion
Monotheistic religions began to arise (traditional religious beliefs were found as useless against the
disease), and new religions doubt the legitimacy of the powerful social class
 Invasion and civil wars
The roman army had to be restuffed with troops from border areas (different training and
languages) what reduced efficiency and provoked confusion.
In 376, goths and non-roman people entered the roman empire, and during the next century Rome
fought the goths as well as engaged in destructive civil wars.
Rome eventually loses the war in 476 against Germanic barbarian empire and deposed the last
emperor of the western roman empire in Italy, Romulus Augustulus.
Continuation of the Roman empire

During most of its existence, the empire was the most powerful economic, cultural and military force in
Europe.
In Late Antiquity and Middle Ages, eastern roman provinces were named ‘’new Rome’’, with capital in
Constantinople.
Byzantine citizens considered themselves as romans (although more identified with Greek culture and
religion)
The Middle Ages finally would end when Constantinople fell to the Ottoman Empire in 1453.

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ECONOMIC HISTORY U.

2.1 FIRST HUNTERS AND GATHERERS

 Human predecessors (omnivorous)

 Homo sapiens (190.000-160.000 BCE)

2.2 NEOLITHIC REVOLUTION

They also developed storable food and dwellings (‘’house’’).

2.3 FIRST FARMERS SOCIETIES

All these advances permitted the raise of MODERN SOCIETIES.

2.4 THE ECONOMY OF THE GREAT EMPIRES OF ANTIQUITY

Other ancient empires (5500-3000 BCE)

Rise of Greek city-states

Ancient Rome decay

Continuation of the Roman empire

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