Introduction
The Hellenistic age is the period between 323 BCE and 30BCE. Precisely, it was marked by the death of Alexander the Great and the conquest of Egypt by Rome. The regions active during this age were in the Middle East and the Eastern Mediterranean. Alexander’s reign created a uniform economy from the eastern borders of Persia to the Ionia Sea. As a result, the Greeks utilized this environment to enhance their economic advancements in banking, trade and the manufacturing industries. A large section of the wealth generated during this period was yielded from agricultural activities. Generally, there was no striking difference between the methods utilized to facilitate farming during this period and the previous era. However, there was a major distinction in sectors such as capital expenditure, banking, slavery, piracy, trade and property management. This paper evaluates the components of the Hellenistic age economy. For a fact, the development of this economy during was attributed to the successful implementation of productive economic policies.
Trade
According Rodger and Peter, the level of trading activities greatly improved during the Hellenistic period. Not only domestic trade, but also international commerce dominated this era. The former was conducted between major parties in the Hellenistic period and kingdoms from different states. On the other hand, international trade was conducted with nations such as India, Italy, Parthia and other southern Arabic States. The trading activities were held on the land and the seas. The most advanced form of commerce was sea trade, which was done in the Red sea, the Mediterranean and the Persian Gulf. It is worth mentioning that the major benefit of this activity was the creation of productive economic relationships with other nations. However, it yielded detrimental effects such as piracy. Land trade was well established among the local citizens, Greeks, and it primarily involved the exchange of monuments and agricultural produces.
Agriculture
Land cultivation was of great importance in the development of the Hellenistic period. It was practiced by the new and the ancient Greek cities. Landowners processed and cultivated their farms with the help of slaves. Additionally, the foreigners who settled in this land during this period focused on this economic activity as opposed more than political governing. According to the Cambridge Companion to the Hellenistic World, the improvements made on irrigation, and land reclamation did not have a major effect on the quantity and quality of agricultural produce. New discoveries made during this era enhanced the ease of food produce. For instance the utilization of the ox drawn plough enhanced the level of productivity. It facilitated mass production of sugar and cotton, which were extensively traded with neighboring states. Generally, agriculture was a major contributor in the stability of the Hellenistic economy. It contributed to not only the amount of food available in the region, but also the increase in finances generated from this activity.
Banking
The Hellenistic period had a well-established banking system. In fact, this enhanced its exemplary performance in the agricultural and the trade sector. However, it is worth noting neither the private sectors, nor the banking systems offered loans for commercial purposes. The banks only acknowledged maritime loans as a precautionary measure to avoid conflict. The interest rates offered during his period ranged between 22 and 30 percent. Individual loans were only offered for short periods and they could only be issued for non-productive activities. The interest rates for these services ranged between five and ten percent. However, banks later began investing this capital with the depositor’s consent. This created the provision for loan collection among the depositors leading to the rapid growth of banks and other financial institutions during this period. Contrastingly, the kings were the money holders in Egypt through royal banks. This investment did not yield significant returns.
Capital expenditure
During this era, there were multiple possibilities to invest one’s capital. A lot of people preferred investing their money in the in various activities other than opting for financial security in the bank. Individuals were discouraged from investing in the banks due to poor interest rates. Precisely, the bank did not offer any loans for corporate activities, thus there were no means for the money deposited to grow significantly. Instead, people invested in trade and agriculture and other sea activities. Others opted to spend their finances in the purchase of slaves at a cheaper price and selling them off at profits. However, in some states, banks collected their deposits and offered loaning activities. For instance, during the 2nd century BC, loans were distributed to corporate enthusiast the interests were collected and used for wheat purchases, which was distributed to the citizens for free.
Piracy
This was a major threat to the stability and popularity of ocean trade. During this period, piracy was a lucrative economic activity that flourished in times of warfare and trouble. Forts were constructed to enhance the influence of the ruling groups in at sea. They were used as watch towers and trading centers. Most of the pirates were from the ancient Greece. The government did not make any significant effort in trying to deal with the threats posed by the sea pirates. In fact, the Hellenistic Age and Roman Egypt argues that the rulers did not make any significant effort trying to repress the negative actions conducted by this group. In times of disaster, piracy was used as an escape activity to repress the pains inflicted during the warring period. Until the end of the 2nd century BC, pirates dominated the sea activities in the Hellenistic world. They negatively affected the growth of the economy during this period.
Slavery
The utilization of slavery had constructive effects on the development of the Hellenistic economy. It was greatly associated with the development of piracy over the years. However, the government did not castigate the development of this activity until later in the century. Warfare was the main source of slaves and stronger communities could exploit the lesser fortunate and capture the weak parties. In the 2nd century BC, the slave market in Delos sold over ten thousand slaves in a day. On the other hand, slaves were used for economic activities such as land tilling or vessel preparation for sea travel. During the end of the second century, slave revolts broke out and led to the seizure of public slave trading within the Hellenistic world. However, it was a major economic activity in during the Hellenistic period and contributed to the development of the economy significantly due to the provision of labor.
Industries
Industries were well established during this period and they made a significant contribution in the growth of this society. The most advanced sectors of the ancient industries included construction, textile and metallurgy. Cities such as Selgoss and Tyre grew in popularity for their dye works. On the other hand, Tarsus was popular for Linen while Sidon was known for its glasswork activities. Additionally, pottery and other related activities were popular during this period. Metallurgy was considered to be one of the most popular form of art and quite popular during warfare periods. In most occasions, the any equipment necessary for the development of ships, war equipment, or furniture was manufactured locally in these industries. As a result, there was a tremendous impact on economic growth during this period. The exploitation of mines further enhanced Greece’s financial dominance. This is largely accredited to the fact that silver was mined in Laurium and was used as a medium of value exchange in the Hellenistic period.
Taxation
The development of the economy during this period heavily relied on taxes imposed on the citizens. Precisely, there was a five percent tax ratio embedded on product purchases and the transportation of goods. Additionally, there was liable taxation on foreigners’ homes and 25 percent on well-established business centers. People who owned animals paid some commission to the central government in the form of taxes. The finances collected in this process were used to maintain other sectors during the period. For instance, agricultural raw materials were purchased to enhance the produce generated by individual farmers. Most of the Hellenistic cities were forced to pay regular tributes to the king and the local government. Moreover, they were required to financially contribute in times of war. These demands enhanced the government’s control over the Hellenistic cities and commercial activities. Consequently, taxation made tremendous contributions in the development of the economy during the Hellenistic period.
Money distribution
With the release of large quantities of precious metal after Alexander’s conquest, the monetary value of coinage slightly reduced. However, the Hellenistic world had a well-established financial policy. It was divided into sections that had different exchange mediums. For instance, Dachma had coins that weighed about 5 grams. Aegan and Euboea islands had different monetary systems that weighted about 3.75 and 3.25 grams respectively. There were multiple factors that facilitated the movement of large amounts of money. For instance, advancement in mercenaries and troops whose occupation involved the constant changes saw the need for the implementation of a common currency. As such, implementation of proper strategies to assess the money’s progress was essential as it led to the development of the economy.
Conclusion
In conclusion, the Hellenistic world had a steady economy founded on effective policing. After the death of Alexander the Great, it experienced a revolution in trade and agriculture. The discovery of farm tools such as the ox drawn plough made it easier to engage in large-scale farming. Additionally, the well-established banking system made this world exceptional as opposed to the earlier periods. In spite of the ineffective policies used to run these institutions, they made a tremendous contribution to the growth of the overall economy. Trade was a substantial economic activity and its impact on the development of this world was exemplary. It was widely practiced on an international level, though the sea. People had different ways of spending their capital. Low deposits were made to the banks due to the rather mediocre interest rates offered. Slavery was widely practiced in this world due to the development of piracy and internal conflicts. In spite of the fact that it had a positive impact on the development of the economy due to the supply of labor, it was unethical to trade people without their consent. Nonetheless, the development of this economy is largely attributed to the proper financial strategies employed by the Hellenistic world.
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