Lessons from Chinese history – Econlib

The Economist recently offered a compelling review of Johan Norberg’s latest work, Peak Human. One particularly striking segment caught my attention:

The Song dynasty’s rulers were notably more invested in upholding the rule of law than their predecessors, who ruled on a whim. To create a stable governance structure, they employed numerous officials selected through meritocratic examinations. The inaugural Song emperor famously implemented an “unconventional policy reform” that entailed “[not] executing officials who disagreed with him.”

Peasants were awarded property rights and mobility, liberating them from the shackles of feudal lords. This newfound freedom led to a remarkable increase in agricultural output, more than doubling it and enabling the growth of populous urban centers. For instance, in the 1100s, Kaifeng, the capital, boasted a population 65 times larger than that of London. The establishment of canals facilitated domestic trade, paving the way for international commerce. Artisans innovated industrial techniques, such as utilizing coal for iron smelting. The invention of movable type in the 1040s made printed books so accessible that one philosopher lamented that people would no longer memorize the classics. By 1200, Song China had emerged as the world’s leading economy, possessing a merchant fleet with the potential for global exploration and a culture of innovation that could have incited an industrial revolution centuries ahead of Europe.

Regrettably, this golden age was not destined to endure, as the Ming dynasty shifted from classical liberalism to a statist form of nationalism:

Internal freedom of movement was curtailed, and voluntary trade was supplanted by enforced labor. Engaging in foreign trade became a capital offense, and even the construction of seafaring vessels was outlawed. Yearning for the past, a Ming emperor resurrected fashion trends from five centuries earlier, and men caught with the ‘wrong’ hairstyle faced castration along with their barbers. As a direct consequence of these regressive Ming policies, Chinese incomes plummeted by half from 1080 to 1400. It wasn’t until the late 20th century that the country began to reclaim its former vitality.

While it is undeniable that all ancient civilizations had their share of flaws by contemporary standards, Norberg’s analysis highlights a significant pattern: golden ages across various civilizations tend to materialize during periods when political and economic policies are relatively less restrictive.