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Nations, Conglomerates and Empires: Trade-off Between Income and Sovereignty

In: Small Countries in a Global Economy

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  • Branko Milanović

    (Research Department)

Abstract

[There are three ways in which countries grow. First, by] ‘fonning a league consisting of several republics in which no one of them had preference, authority or rank above the others; and in which, when other cities were acquired, they made them constituent members in the same way as the Swiss act in our time, and as in Greece the Acheans and the Aetolians acted in olden tunes….The reason why such a republic cannot expand is that its members are distinct…which makes it difficult for them to consult and to make decisions. It means that they are less keen on acquiring dominion, for, since many communities share in that dominion, they do not appreciate further acquisition in the same way as does a single republic which hopes to enjoy the whole. Furthermore, a league is governed by a council, which must needs be slower in arriving at any decision….The second method consists in forming alliances in which you reserve to yourself the headship, the seat in which the central authority resides, and the right of mitiative. This was the method adopted by the Romans. The third method is to make other states subjects instead of allies, as the Spartans and the Athenians did…[This method] is quite useless, as can be seen in the case of the two republics just mentioned.

Suggested Citation

  • Branko Milanović, 2001. "Nations, Conglomerates and Empires: Trade-off Between Income and Sovereignty," Palgrave Macmillan Books, in: Dominick Salvatore & Marjan Svetličič & Jože P. Damijan (ed.), Small Countries in a Global Economy, chapter 1, pages 25-69, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-51319-8_2
    DOI: 10.1057/9780230513198_2
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    1. Alberto Alesina & Enrico Spolaore, 1997. "On the Number and Size of Nations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1027-1056.
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    7. Patrick Bolton & Gérard Roland, 1997. "The Breakup of Nations: A Political Economy Analysis," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1057-1090.
    8. Perotti, Roberto, 1992. "Income Distribution, Politics, and Growth," American Economic Review, American Economic Association, vol. 82(2), pages 311-316, May.
    9. Durham, Yvonne & Hirshleifer, Jack & Smith, Vernon L., 2008. "The Paradox of Power," Handbook of Experimental Economics Results, in: Charles R. Plott & Vernon L. Smith (ed.), Handbook of Experimental Economics Results, edition 1, volume 1, chapter 16, pages 127-137, Elsevier.
    10. Orlowski, Lucjan T, 1995. "Corrigendum [Direct Transfers between the Former Soviet Union Central Budget and the Republics: Past Evidence and Current Implications]," Economic Change and Restructuring, Springer, vol. 28(2-3), pages 235-237.
    11. Alesina, Alberto & Perotti, Roberto & Spolaore, Enrico, 1995. "Togetheror separately? Issues on the costs and benefits of political and fiscal unions," European Economic Review, Elsevier, vol. 39(3-4), pages 751-758, April.
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    Cited by:

    1. Costa-i-Font, Joan, 2010. "Unveiling vertical state downscaling: identity and/or the economy?," LSE Research Online Documents on Economics 27750, London School of Economics and Political Science, LSE Library.
    2. Joan Costa Font & Ramon Tremosa Balcells, 2006. "National Identity and the Preference for State Opting-Out in the Basque Country," Working Papers in Economics 151, Universitat de Barcelona. Espai de Recerca en Economia.
    3. Joan Costa-i-Font, 2010. "Unveiling Vertical State Downscaling: Identity and/or the Economy?," LEQS – LSE 'Europe in Question' Discussion Paper Series 20, European Institute, LSE.

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