Institutions Always 'Mattered' Explaining prosperity in Mediaeval Ragusa (Dubrovnik)

The mediaeval Republic of Ragusa (now Dubrovnik) was a prosperous economy that outperformed its Dalmatian rivals (Kotor, Split and Zadar). It enjoyed a period of rapid economic development in the 15th and 16th centuries. This study collects together evidence on how Ragusa compared to other economies of the region and addresses the difficult task of looking at the reasons behind its success.

Drawing on a vast amount of secondary literature, the authors use data to support their historical study of Ragusa. They provide a close analysis of its economic evolution, in particular looking at its policies and institutions. The authors, using the perspective of New Institutional Economics (NIE), test a number of hypotheses on the determinants of success. The authors argue that Ragusa exhibits the characteristics of an a 'Tiger' economy with growth-promoting institutions. Their findings reveal evidence which suggests that Ragusa had strong fundamentals with prudent finances, effective rule of law, good governance, social fairness, business-friendly institutions and trade openness.

This text offers a comprehensive historical case study of Ragusa's economy, making it essential reading for scholars and researchers of economic history and development theory.

Oleh Havrylyshyn is Visiting Fellow, alternate Executive Director (Ukraine), International Monetary Fund, and has been a consultant to various governments, the World Bank, and other international agencies. A native of Ukraine, he has travelled and worked extensively in Eastern Europe and the former Soviet Union. He is the author of Divergent Paths in Post-Communist Transformation (Palgrave Macmillan, 2006).
 
Nora Srzentic, Ghent University, Belgium.

PART I: OVERVIEW OF BOOK
1. Introduction
2 . Key Aspects of The New Institutional Economics (NIE)

PART II: ECONOMIC HISTORY OF RAGUSA/DUBROVNIK
3. History of Ragusa in Eastern Mediterranean Context
4. Economic Evolution and Rise to Prosperity
5. Quantifying Ragusan Prosperity and Disproportionate East Mediterranean Role
6. The Relative Decline after Vasco da Gama Circumnavigation

PART III. PRUDENT MACROECONOMIC POLICIES
7. The System of Governance , Wise Policies , and Market-Friendly Institutions
8. Macro Policies 1: Fiscal Probity the Starting Point for Good Institutions
9. Macro Policies 2: Monetary and Financial Prudence , Minimal Public Debt

PART IV. GROWTH-PROMOTING INSTITUTIONS
10. Institutions Friendly to Commerce- in today's jargon 'Ease of Doing Business'
11. An Open Legal System with Effective Rule-of-Law
12. 'Sufficient ' Social Fairness Provides Stability
13. Maximal Diplomacy with Minimal Military

PART V. CONCLUSIONS
14.How Unique Was Ragusa? Some Comparison with Venice and Others
15. A Successful Case of Institutional Optimality Before its Time: What lessons for the 21st. century?