after describing how the catholic church put an end (for the most part) to clans and tribes in western europe via its regulations on marriage, a topic which has been discussed at length here on the ol’ blog (see the Inbreeding in Europe series down below in the left-hand column), economist avner greif explains in “Family Structure, Institutions, and Growth: The Origins and Implications of Western Corporations” how the new, individualistic europeans developed a corporate society, one which eventually lead to democratic nations in europe [pgs. 309-10]:
“The decline of large kinship groups in Europe transpired during a period in which the state was also disintegrating and the church’s secular authority was diminishing…. A new solution was needed to solve problems of conflict and cooperation, and people got together to form corporations.
“These corporations were voluntary, interest-based based, self-governed, and intentionally created permanent associations. In many cases, they were self-organized and not established by the state. Participation was voluntary in the sense that one had to be attracted to be a member and, therefore, corporations had to cater to their members’ interests….
“By the late medieval period, economic and political corporations dominated Europe….
“Monasteries, fraternities, and mutual-insurance guilds provided social safety nets against famine, unemployment, and disability. The majority of the population belonged to such fraternities and guilds, at least in England. Because corporations provided social safety nets that were alternatives to those provided by kinship groups, they enabled individuals to take risks and make other economic decisions without interference by members of such groups. Relative to a society dominated by kinship groups, the nuclear family structure increased capital per worker by encouraging later marriages and fewer children, and it led to a more efficient distribution of labor and knowledge by facilitating migration.
“Craft guilds regulated production, training, and the protection of brand names. Universities, monastic orders, and guilds developed and distributed scientific and technological knowledge. Merchant guilds and communes protected property rights at home and abroad, secured brand names, and provided contract enforcement in exchange. Corporations, such as the Italian citystates and military orders, mustered armies to expand the European resource base.
“Many late medieval corporations were political; they had their own legal systems, administrations, and military forces. The Italian city-republics were literally independent, but most European cities west of the Baltic Sea in the north and the Adriatic Sea in the south were also political corporations (communes). Political corporations also prevailed among Western European peasants. Because such corporations preceded the pre-modern European states, they often provided these states with indispensable services, such as tax collection, law and order, and an army. Self-interested rulers were constrained in adopting policies that hindered these corporations’ economic interests or abusing their property rights (Greif, 2005). Indeed, by the thirteenth century, most European principalities had representative bodies to approve taxation and communes were represented in all of them. Economic corporations, therefore, had the ability to impact policies and, in the long run, they were influential in transforming the European state into a corporation in the form of a democracy.“
that is all. (^_^)
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