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Michael Bailey's avatar

Whenever I read this site, I'm impressed and my optimism about the world bolstered.

Third Venetia's avatar

This article is a breath of fresh air. Europe’s “rise” wasn’t a continental trait so much as a handful of high-trust, decentralized, high-iteration ecosystems pulling ahead, then forcing partial imitation from their neighbors.

It’s good that you mention Northern Italy as part of the “innovators club”, as it’s often ignored in favour of Northwestern Europe in articles such as these. Perhaps it’s due to the fact that the region is currently captive to the italian state, a centralizing bureaucratic behemoth that stifles the innovation and ethnic self-determination of Lombards and Venetians.

Today, we should be wary of arguments supporting centralization for centralization’s sake, and instead ask ourselves if it is even useful or efficient. This is especially relevant in the context of the increasing obsolescence of the nation-state as a model for political organization.

Michael Magoon's avatar

Glad that you enjoyed it, and thanks for the restack.

Richard Jordan's avatar

Great essay.

One thing that might support your argument - Spain enjoyed "the fifth" from the New World, and this extra income insulated it from needing to make difficult policy changes. This fact is sometimes used to explain why France was able to develop a more functional bureaucracy and financial system before Spain, even though Spain was initially ahead in the state-building game.

In the 18th c., French political/economic evolution also ground to a halt after it became geopolitically dominant.

The logic of strategic emulation, under harsh competitive pressures, would suggest that political/economic evolution spreads more slowly to regimes insulated from this competition, not just by distance (like China), but also by their own dominant position (like New World silver for Spain, or France's large population).

Implications for the US today?

Michael Magoon's avatar

I am not totally sure what you mean, but I focus more on increased material standard of living for the masses rather than state-building.

While its empire was a boon in the short-run to its governing elites, I really do not think that it helped the Spanish people very much. And you are correct, it insulated the Spanish elite from making necessary changes.

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Dec 31, 2025
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Michael Magoon's avatar

Glad that you enjoyed the article.

You may have already read this other article, but I go into more detail here:

https://frompovertytoprogress.substack.com/p/why-some-centralized-regimes-grow