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Printing in Europe and The Ottoman Empire. 15 th Century: The Printing Revolution. Mid 15 th century Gutenberg improves printing technology. 15 th Century: The Printing Revolution. Made production, preservation, and dissemination of written knowledge cheaper.
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15th Century: The Printing Revolution • Mid 15th century Gutenberg improves printing technology.
15th Century: The Printing Revolution • Made production, preservation, and dissemination of written knowledge cheaper. • Increasing returns to scale - profits. • First book – The Bible. • Reading and writing became more useful, and induced HC acquisition. • Stimulated the development of vernacular languages. • Undermined the authority of the catholic church. • Reformation; King James Bible (1604-11) • Rise of the enlightenment and modern science
15th Century: The Printing Revolution Source: Dittmar ( 2009)
Printing in the Ottoman Empire • Ottoman Sultans forbade printing in Arabic script between the 15th and 18th centuries. • Istanbul: first book printed in Arabic script in 1729. • Printing took off only in the 19th century. • Religious authorities claimed that printing books would decrease the value of oral learning. • New knowledge may depreciate old knowledge. • Minorities were allowed to print books in their own languages.
Military Technologies – Firearms • The Ottomans were eager to adopt advanced military technologies. • Gun powder and guns production. • Janessaries - firearms bearing infantry starting from the 1380s. • Artillery. The Ottoman siege in Vienna (1528)
Explaining technology adoption • Conservative nature of Muslim societies. • Assuming the result. • Why was the ban lifted? • Not consistent with adoption of military technologies. • Not PC. • An explanation should account for: • Initial ban on printing in Arabic script, yet not in other script. • Rapid adoption of firearms. • Removal of the ban on printing in the 18th century.
Explaining Technology Adoption • Acemoglu and Robinson (APSR, 2006) model political aspects of new technologies adoption. • Political elites may block technologies that threatened them, even if it impedes economic development. • Blocking new technologies occurs when political competition is at intermediate values, • Blocking does not occur when the elite's rule is secure or when political competition is intense.
A (very) simple model of technology adoption • Ruler, Agent, and (passive) Citizenry. • Ruler collect a share β (legitimacy) of S (surplus), and transfers T to the Agent. • Legitimacy: educators/books or military force. • The Agent (military/”clergy”) decides to legitimize the Ruler or to incite a revolt and capturing a share α of S at probability p. • Assuming β>α because of damage/cost of revolt. • To avoid revolt the ruler offers the Agent: T=pαS • The ruler's surplus is: βS-T=S(β-pα)
A model of technology adoption • New technology θ affects S(θ), α(θ), β(θ),and p(θ). • The Ruler suppresses new technology if: S(β-pα) > S(θ)[β(θ)-p(θ)α(θ)]
Technology Adoption • Firearm technology • Ottoman elite was based mainly on infantry Janessaries, adopted firearms starting 1380s. • Mamluk elite was based on cavalry resisted the adoption of firearms. • In terms of the model, firearms • Increase S by conquests. • Increase β ability of army to to collect tax. • Decrease p likelihood of successful revolt (?) • Light firearms vs. artillery • Decrease α greater cost of preparing for rebellion and greater destruction in revolt (?).
Technology Adoption • Printing technology • Printing in Aranic script was banned by the sultan in 1485, few decades after Gutenberg`'s invention. • The ban was relaxed in 1726, yet publications on religious were still prohibited, and texts were censored. • Only in the 19th century printing took off. • Minorities printed books starting 1490s. • In terms of the model, printing • Could increase S by productivity. • Decrease β ability of “clergy” to legitimize ruler. • Could raise p likelihood of successful revolt. • No effect on α losses from revolt (?).
Technology Adoption - Summary • Military technology was adopted by the state, yet was forbidden to subjects, because it enhanced the ruler's payoff. • Printing technology weakened the “clergy”'s ability to legitimize the ruler, and reduced the latter's expected payoff despite productivity gains. • Printing was adopted when “clergy”'s ability to legitimize the ruler was weakened. • Corruption of religious establishment. • Rise of local elites in the 17th and 18th centuries. • Political elites could intentionally block economic development to secure their position.
Printing • Why European rulers did not block printing? • Speculation: • fragmentation of Western Europe posed a coordination problem. • Some rulers benefited from undermining the catholic church. • Mokyr on rise of secular science: Innovative scientists could run to other states when local authorities threatened them. • Competition between rulers induced them to use innovations, fearing that other would take advantage of them.
Why is the ME Economically Underdeveloped Timur Kuran
Main argument • Around 1000 AD the Middle East was a developed region. • Yet, it failed to undergo the institutional development that Europe did. At 1800 AD Islamic commercial institutions were similar to those eight centuries earlier. • This paper points on institutions that hindered economic development, including: • Islamic law of inheritance. • Lack of corporations in sharia. • The waqf (pious foundation). • Initially these institutions were not obstacles for economic development. Later on, these institutions had an adverse role.
Background: Path Dependence • Past decisions affect the trajectory of the economy and create a lock-in situation. • Lock-in situations occur when • there is a large fixed cost and increasing returns to scale /positive externalities, which make a switch to more efficient trajectory un-profitable. • Some pressure groups block efficient changes because of their private interests. • Common dimension of path-dependency: • Technology. • Institutions.
Technological Path Dependence • Communication signals (cellular etc.) • Mac vs. PC • Typing technology: the keyboard (QWERTY) • Fitted the old typing machines. • Not efficient for computer typing • Switching costs are large because people are used to the previous system.
Institutional Path Dependence • Institutions are rules / equilibria. • Switching rules / equilibria • should be coordinated. • Likely to be costly. • May harm some players. • Therefore, some economies may be locked-in an inefficient equilibrium.
Institutional Features of the Islamic ME Difficult to pool resources for large scale long term enterprises • Egalitarian inheritance system. • No long living corporations. Partnerships were practically limited in scope and to a single mission. • No banks, only dubiously legal money lending between individuals. • Weak property rights and arbitrary taxation. • Provision of public goods by funds privately endowed for eternity to Waqfs. • Legal Pluralism, and minorities' ability to choose legal system. Weak incentives Inflexibility of supplied PG Advantage of minorities
Comparison to the “West” • Unequal inheritance laws facilitated accumulation of lands and capital. • The Catholic Church and Christian orders, cities, universities were incorporated from the High Middle Ages onwards. • Provisioned secular and religious public goods. • Starting from the 16th century commercial corporations were based in this legal concept but opt to make profits. • Long Political struggle for limiting ruller's ability to abuse property rights (e.g. The glorious revolution, 1688)
