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Religions and Ideologies as Strategic Assets: A Supply-Demand Model of Belief Systems Across National Rise and Decline

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  • Kim, Yong Jin

Abstract

This paper develops a macro-historical framework for the emergence, institutionalization, proliferation, fragmentation, and decline of religions and secular ideologies. It treats belief systems as equilibrium governance technologies that enable large-scale cooperation, legitimacy formation, and moral constraint when kin-based networks and informal reciprocity become insufficient. The framework models belief formation as a triadic supply-demand equilibrium among (i) the public, which demands justice (especially distributive justice), meaning, security, identity, and explanations of suffering; (ii) ruling authorities, which demand order, hierarchy, legitimacy, and mobilization capacity; and (iii) intellectual elites, which supply doctrines, rituals, interpretive schemas, and institutional designs. The supply-demand model yields testable hypotheses: belief systems tend to arise under crisis and coordination problems; codification and canon formation stabilize authority when actor incentives align; prosperity and intellectual specialization foster pluralization; fragmentation lowers institutional trust and state capacity; and crises of meaning resolve through reform, revival, replacement, or stagnation. The paper evaluates these claims through both supply-demand theoretical framework and comparative qualitative evidence across multiple civilizational trajectories and applies this framework to contemporary geopolitical competition, emphasizing ideological divergence within and between the United States and China. The analysis suggests that ideological capital, representing the level of belief system, is a strategic asset that conditions long-run state capacity, technological trajectories, and economic growth.

Suggested Citation

  • Kim, Yong Jin, 2026. "Religions and Ideologies as Strategic Assets: A Supply-Demand Model of Belief Systems Across National Rise and Decline," EconStor Preprints 334355, ZBW - Leibniz Information Centre for Economics.
  • Handle: RePEc:zbw:esprep:334355
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    References listed on IDEAS

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    1. Timur Kuran, 2011. "The Long Divergence: How Islamic Law Held Back the Middle East," Economics Books, Princeton University Press, edition 1, number 9273, December.
    2. Douglass C. North, 2005. "Introduction to Understanding the Process of Economic Change," Introductory Chapters, in: Understanding the Process of Economic Change, Princeton University Press.
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    JEL classification:

    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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