Behind this general title lies a much more specific study, a political economy of ancient Greece. It combines behavioral and new institutional economics, public choice theory, international relations theory, and some of Aristotle’s ideas. Ober argues that between 800-300 BCE Greek city-states achieved an extraordinary level of wealth for the premodern era; Greece itself did not match it until 20th century. He attempts to explain this sustained economic growth as a result of exceptional political institutions and social norms. Greek city-states stood out among other premodern societies and were in many ways similar to successful early modern Western societies.
After reading several pages of this book I assumed that it was written by a young, pretentious economist attempting to apply standard scientific concepts to simplistically explain the ancient era. However, Ober is actually an experienced historian specialized in ancient Greece, and that clearly shows later in the book. Nonetheless, it is a highly ambitious book, with a youthful, fresh perspective, and based on some audacious assumptions and projections. Ober aggregates archeological evidence into quantitative data for analysis and modelling, attempting to determine size of cities, population density, income per capita, Gini coefficient and other economic statistics. A lot of this seems a bit too speculative, but political and economic arguments are interesting and convincing. First part of the book presents data, theoretical background, previous studies and general insights. This section is quite lengthy and somewhat haphazard in its exploration of various ideas, including parallels with the evolutionary biology of ants. The book becomes much clearer when it shifts to historical narrative, which fortunately constitutes the majority of its content. It starts with the earliest Greek states and culminates with Macedonian conquest, mostly focusing on Syracuse, Sparta and Athens.
Greeks developed decentralized, rule-based political systems with checks and balances, protections against arbitrary expropriation, reduction of extreme inequality, compromises between social classes, and a reasonable alignment between private and collective interests. Such systems not only fostered competition and cooperation but also encouraged capital investment, reduced transaction costs, and facilitated increased specialization. Cultural norms favored expertise, innovation, risk-taking, long-term thinking, financial prudence and scientific rationality among a significant portion of the citizenry. Even Greek oligarchies displayed a remarkable degree of egalitarianism and orderliness compared to other premodern societies. These norms also extended beyond domestic affairs to shape diplomacy, alliances, and federations. This explains how small city-states managed to endure, despite the challenges posed by wars and empire-building endeavors. Individual entrepreneurship, market exchange and competition encouraged quick dissemination of successful innovations, along with creative destruction of inefficient institutions and regimes. Macedonian conquest was initially not a radical break as Philip expanded numerous Greek traditions and adapted them for the new era, with cities retaining some of their autonomy. However, following the peak in the fourth century, a period of gradual decline set in, leading to oppressive, impoverished conditions typical of premodern societies.
Ober presents ancient Greece as the earliest historical example of the connection between democratic-leaning, free-market regimes and economic development. The framework and ideas which he employs are standard in this area of economics. While it begins a bit confusingly, the sections containing historical narrative are well written, and the book can be understood by readers without background in economics and political philosophy. However, a solid understanding of Greek history could be beneficial, allowing readers to take some of the more speculative ideas with a grain of salt. Although the book garnered controversy on various fronts, Ober’s ideas are far from preposterous. He employs a moderate theoretical approach and the limited available data to draw bold and intriguing conclusions that, while not definitive, remain satisfactory. Overall, it is a thought-provoking book, certainly worth reading.