The Princeton Economic History of the Western World Series

States of Credit provides the first comprehensive look at the joint development of representative assemblies and public borrowing in Europe during the medieval and early modern eras. In this pioneering book, David Stasavage argues that unique advances in political representation allowed certain European states to gain early and advantageous access to credit, but the emergence of an active form of political representation itself depended on two underlying factors: compact geography and a strong mercantile presence. Stasavage shows that active representative assemblies were more likely to be sustained in geographically small polities. These assemblies, dominated by mercantile groups that lent to governments, were in turn more likely to preserve access to credit. Given these conditions, smaller European city-states, such as Genoa and Cologne, had an advantage over larger territorial states, including France and Castile, because mercantile elites structured political institutions in order to effectively monitor public credit.
While creditor oversight of public funds became an asset for city-states in need of finance, Stasavage suggests that the long-run implications were more ambiguous. City-states with the best access to credit often had the most closed and oligarchic systems of representation, hindering their ability to accept new economic innovations. This eventually transformed certain city-states from economic dynamos into rentier republics. Exploring the links between representation and debt in medieval and early modern Europe, States of Credit contributes to broad debates about state formation and Europe's economic rise.

The Decline and Rise of Democracy

by David Stasavage

Published 2 June 2020

"One of the most important books on political regimes written in a generation."-Steven Levitsky, New York Times-bestselling author of How Democracies Die
A new understanding of how and why early democracy took hold, how modern democracy evolved, and what this teaches us about the future

Historical accounts of democracy's rise tend to focus on ancient Greece and pre-Renaissance Europe. The Decline and Rise of Democracy draws from global evidence to show that the story is much richer-democratic practices were present in many places, at many other times, from the Americas before European conquest, to ancient Mesopotamia, to precolonial Africa. Delving into the prevalence of early democracy throughout the world, David Stasavage makes the case that understanding how and where these democracies flourished-and when and why they declined-can provide crucial information not just about the history of governance, but also about the ways modern democracies work and where they could manifest in the future.

Drawing from examples spanning several millennia, Stasavage first considers why states developed either democratic or autocratic styles of governance and argues that early democracy tended to develop in small places with a weak state and, counterintuitively, simple technologies. When central state institutions (such as a tax bureaucracy) were absent-as in medieval Europe-rulers needed consent from their populace to govern. When central institutions were strong-as in China or the Middle East-consent was less necessary and autocracy more likely. He then explores the transition from early to modern democracy, which first took shape in England and then the United States, illustrating that modern democracy arose as an effort to combine popular control with a strong state over a large territory. Democracy has been an experiment that has unfolded over time and across the world-and its transformation is ongoing.

Amidst rising democratic anxieties, The Decline and Rise of Democracy widens the historical lens on the growth of political institutions and offers surprising lessons for all who care about governance.