Athens on the Doorstep
Abstract: North/Wallis/Weingast (2009) define the problem of development as the transition from natural state to open access order and propose a theory of the natural state as a stable system. Yet some natural states develop by moving to "doorstep conditions" that led to open access orders in a few modern states. NWW’s focus on early modern Europe gives the impression that the transition happened only once in human history and leaves the theory vulnerable to confounding variables (industrial revolution, technology, colonialism). If the conditions predicted by the theory produced a similar result prior to modernity, the theory's robustness is supported. We consider ancient Athens as an out-of-sample test, showing that conditions similar to those NWW assert for early modern Europe held in Athens, and tests that support our claim. Changes in Athenian policy in the direction of open access are predicted and explained by reference to changing Athenian revenue demands, sources of revenue, and capacity for coercion. We offer a new implication about dignity as immunity from humiliation. Athens offered legal immunities against acts of hubris (intentional humiliation) to all residents of Athenian territory. Why were these immunities not limited to adult, native males citizens? The extended immunity was costly in respect to enforcement, and it diluted the privileges of Athenian citizens. We argue that Athens’s expansion of inclusion reflected their gains from trade, from specialization and exchange, and from tax revenue.
