Nowadays, the Asian market and economy is significant and represented prominently in the global market. Countries like Japan, South Korea, India and China, to name a few, form a major part of the world economy today. Yet it took centuries for Asia to become an economic powerhouse and the main reason for this delay existed in the political structure of their states.
High Taxation and Economic Uncertainty in India's Past Government Structure
A majority of the Asian countries allowed and gave little room for economic growth, while absolute and centralized power lay in the hands of a handful of rulers. These leaders often demanded taxes but gave their populace little or nothing in return.
The Oriental tyrant may be a cliché, but it was a common fact and reality, particularly from the fifteenth to the nineteenth century. The Moguls that invaded the north of India, for example, demanded taxes and tributes to build palaces and forts, yet they neglected important aspects that would have benefited the state as a whole, such as infrastructure, trade, and discovery.
In southern India, the Hindu princes implemented high taxation and often confiscated money of the businessmen. This led to a reluctance to accumulate wealth among businessmen due to the instability and unpredictability of the government and the economic situation. These businessmen refrained from seeking more wealth as they constantly feared that their money could be taken away from the government at any moment.
Centralization in Middle East Stopped Learning and Economic Growth
In the Middle East, centralization came at a later date, which explains why, during the Ottoman Empire, trade, commerce, and innovation flourished. The Middle East used to be an important center of knowledge, learning, and economic activity.
People in the Middle East had the freedom to exchange both goods and ideas and to progress economically and intellectually. However, in the twentieth century, the creation of supposedly modern nation-states led to dictatorships that brought economic and political progress to a halt.
The Magna Carta in Europe and the Role of Church, Nobility and Individual Nation-States
In Europe, the situation was different. The Christian church had managed to contest and control the power of the ruling kings. The Magna Carta, for example, was a bill of rights that held the power of kings in check while helping the nobles to gain influence and power in the political structure.
Furthermore, Europe was aided by the fact that there were many nation-states that lived in independence and were not controlled by an absolute and centralized government. Part of it was due to the geography of the area that allowed for small states to be able to defend themselves from the enemy, while the various individual states began to compete with each other for survival and power. This fact led to continuous economic growth and wealth in the area.
As can be seen, a decentralized governmental structure along with guaranteed standards of economic and political stability and freedom has helped shape the progress of nation-states in world history. When the tax money of the populace was put to good and fair use and there was freedom to associate with others and to trade goods and ideas, economic progress and development was at its highest.
Sources
Zakaria, Fareed. The Post-American World. New York: W. W. Norton & Company, 2008.
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Arash Farzaneh - Arash Farzaneh is a writer and a language professor. He has a Master's degree in French literature with a minor in Psychology. Since his ...
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