Please enable JavaScript.

Coggle requires JavaScript to display documents.

Treaties of Westphalia, Adam Smith’s contribution to economic theory in…

- - - - increased centralized control
      - the emergence of the state as a powerful source
      - increase of state's power
      - acknowledgment of state sovereignty
      - absolute control of the military by state leaders
  - - - Private enterprise was encouraged.
      - states improved their infrastructure to improve commerce
      - Economic success occurred as those states enslaved indigenous peoples in the Americas and transported enslaved Africans to their new lands.
      - trading companies and banks emerged.
    - - Serfs remained on the land
      - economic development was stagnant.
      - Yet in both regions, states led by a monarch with absolute power dominated, with Peter the Great in Russia (1682-1725), and Frederick Il in Prussia (1740-86).
- - - - LIMITATIONS
        
        Leaders are limited by divine law and natural law
        
        They are also limited by the type of regime -- "the constitutional laws of the realm"-- (monarchy, aristocracy, democracy)
        
        leaders are limited by covenants, contracts with promises to the people within the commonwealth, and treaties with other states.