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The Management of Expenditures and Revenue by Alexander the Great During His Expedition to the Boundless Asia Dr American Research Journal of Business and Management (ARJBM) ISSN (Online) : 2379-1047 Volume 2016, 25 pages Research Article Open Access The Management of Expenditures and Revenue by Alexander the Great During his Expedition to the Boundless Asia Dr. Ioannis N. Kallianiotis Economics/Finance Department, The Arthur J. Kania School of Management, University of Scranton, US [email protected] Abstract: The philosophy of Oeconomicos (Economics) and the basic practical economic policy were developed by Xenophon in Ancient Greece. Alexander the Great was living a little later in the 4th century B.C. and we know him as a great Greek (Hellen) king, civilizer, and “forerunner”; but, he was at the same time, an excellent economist because he had to manage the economy of his enormous campaign from North Greece to India, to civilizer. Also, “he desired not pleasure or wealth, but only excellence and glory”, which was the teaching of the moralexercise and an ethical efficient Greek and effectivephilosophy. public Alexander policy forwas his grateful vast Empire, to gods and for to his satisfy Greek all descent the citizens and had as aall Hellenic these Hellenic values that made him one of the most important persons in human history. As a student of the greatest of philosophers Aristotle, he has shown outstanding management capabilities, with rates of salaries, health and welfare systems, advanced social policies, building projects, supplies, transports, reforms of the tax system, makers, today. We will measure his budgets by using the weights of gold and silver coins and determine and loans, founding of new cities, even controlling financial scandals and other information useful for our policy ethical economic policy with its surpluses is very useful for all scholars. Also, it is mentioned the history and the compare prices by taking these information from different ancient historians. Alexander’s moral leadership and revolted and deluded creation and humanity to be in a position to understand and accept His revelation, which Greeksrole of thiswere extraordinary expecting from man their and oracles the contribution since 5th century of the Greek B.C. civilization and language in God’s plan, for His Keywords: Role of Economics: Role of Economists, History of Economic Thought, Monetary Policy, Fiscal Policy, General: Economic History, Development of the Discipline: Historiographical and Sources and Methods INTRODUCTION Alexander III the Great ( ; 356-323 B.C.) was borne in North Greece and was living in the 4th century B.C. We know him as a great Greek (Hellen) general and king, but he was at the same time, an excellent economist (oeconomologosΜέγας, Ἀλέξανδρος) because he had to manage the economy of his wars, his enormous campaign from North Greece (Macedonia)1 public policy (revenue, spending,οἰκονομολόγος and surpluses) for his vast Empire and to satisfy all the citizens as a civilizer and not as a conqueror. His role, as it was proved to India later, (Hindus was a divine River), one; and he to was exercise a “social an forerunner”.efficient and At effective a point Alexander said that “…I am grateful to gods that I was borne Hellen…”.2 He had the consciousness of his historic descent and invitation (“call from God”). Of course, as a student of the greatest of philosophers (panepistimon, 1 .» (Strabo, ). 2 «... ...» (Alexander the Great, ). «Ἔστι οὖν Ἑλλάς καί ἡ Μακεδονία Στράβων www.arjonline.orgΕὐγνωμονῶ τοῖς θεοῖς ὅτι ἐγεννήθην Ἕλλην Ἀλέξανδρος ὁ Μέγας Page 1 American Research Journal of Business and Management (ARJBM) ) Aristotle ( ,3 he has shown outstanding management and leadership capabilities. His military budgets contained more or less what budgets of states comprised (and were directly relatedπανεπιστήμων to the latter); like, ratesἈριστοτέλης; of salaries 384–322 and wages, B.C.) health and social welfare programs, building construction projects, supplies of military material and food, transports, acquisitions and maintenance of military equipment, otherreforms information of the tax system,from these donations Hellenic and studies debt financing,useful for royal our leaderslands apportionment, and policy makers, support today of veterans (after 2,350 and years),their families, and for building economic of historianscities and infrastructures, and numismatics. even controlling financial scandals and we can extract many ; 430-354 B.C.), had developed a new philosophy (science) that he gave the name Oeconomicos ( ),4 which was A couple of decadesth century earlier A.D. than in Alexander’sWest Europe appearance, and was written a disciple as Economics of Socrates,; but Xenophon its creator ( Ξενοφῶνwas Xenophon and for this reason, he is the “Father of Economics”. The meaning of this discipline is “the managementΟἰκονομικός of household” (noun:misspelled in, 18oecos=household and verb: , nemo=manage or distribute).5 Xenophon wrote 14 volumes on Ways and Means οἶκος6 and the Management of the Armyνέμω ( ). This work took place in Athens in the management5th century B.C. of (thethe different Golden Century sectors ofof Pericles),the economy.7 One of the volumes was th century (Πόροι A.D.; ἢ περὶ but Προσόδων) Ὁ Οἰκονομικός τοῦ Στρατοῦ and continued in the first half of the 4 toeven calculate from the expenditures Homeric period, and revenueswe see good and “economists” leave the interpretation and their ability of the to manageeconomic effectively conditions their for societies.a future systematicWe also see analysis. a fiscal and royal redistribution economic system of that period. Then, we use the historic evidence In addition to economics, numismatics, and economic policy, we can see many political, military, cultural and futuristic events during that period and 8the following Hellenistic era. Economic history is necessary for all social scientists (especially economists) because this past knowledge can help us to deal with the current complex global economic, social, and political problems. The contribution of Alexander the Great, with the spreading of the Greek civilization, and the learning of the most advanced language, the Greek language by the known world event in human history that followed three hundred years later, the coming of the Son of God (the revelation of was beyond a human plan and offering. It was a divine plan for the preparation of the world to accept the unique he was punished with the punishment of death (poison hemlock, ) for his unconceivable moral and ethicalthe highest philosophical value, the conception Truth) that of Socrates “the Unknown and other God”. moral9 philosophers were expected five centuries ago and κώνειον 3 According to theEncyclopædia Britannic. scientist is in his debt.” 4 The Oeconomicus “Aristotle was the first genuine scientist in history ... [and] every state. Cicero translated the Oeconomicus into Latin, and the work gained popularity during the Renaissance in a number of translations. (Οἰκονομικός) Adam Smith can has actually taken many be seen ideas as froma treatise Oeconomicus, on success but in heleading “forgot” both to angive army reference and a 5 See, Kallianiotis (2013a). 6to See, Xenophon. Whitehead See, (1977). Marchant and Todd (1997, p. 408). 7 Pericles between the (Περικλῆς, Persian (499-449 “exceedingly B.C.) glorious”; and Peloponnesian 495– 429 B.C.)(431-404 was arguablyB.C.) wars. the See, most Thucydide prominents, 2.65 and. Alinfluentialso, Blois de,Greek Lukas statesman, (1997). Unfortunately,orator, and general there areof Athens no populist during leaders the Golden in our days.Age (480-404 B.C.) specifically the time 8 See, Kallianiotis (2015b). 10 See, Ancient Greek prophesies regarding the True, but Unknown at that time, God. See also, Kallianiotis (2016a). Volumehttp://www.impantokratoros.gr/neopaganismos_filosofoi.el.aspx 2016 Page 2 American Research Journal of Business and Management (ARJBM) Alexander’s Expedition to Asia and India and its Expenditures The major expenses (dapanae, ) of Alexander the Great were: (1) The compensation (salaries) of the army. (2) Food and other provisioning of the huge army personnel. (3) The support of veterans and their families. (4) Maintenance cost of armament,δαπάναι equipment, and siege machines. (5) The development and creation of the Feasts and social events. The most costly expenditures were the payroll of the army and especially, during the expeditionnavy. (6) The to thehealthcare remote ofIndia his (anpersonnel amount and of 1,074,579,600 soldiers. (7) Transportation Drs or $164,253,594.1), of the soldiers as Table and 2, equipment. 1a & 2 shows. (8) His army was comprised, by Greek-Macedonians, who were serving their country, by allies from the Greek cities (especially Thessalian cavalry), and by professional mercenaries ( ). More than a half of the army, for his planned invasion to punish Persia and Hellenize Asia, came from outside the borders of Macedonia, from all over the Greek world and the nearby barbarian tribes. The focus,μισθοφόροι here, is not only economic, but on history, language, and social studies; emphasizing the military and political events. 10 drawn from Macedon ( ) and various GreekAlexander’s city-states, army mercenaries,crossed the Hellespont and feudally (Ἑλλήσποντος) raised soldiers in from 334 B.C.Thrace with ( approximately), Paionia 48,100 ( soldiers,), and Illyria6,100 cavalry and a fleet of 12011 Ship-building ships with crews wood numbering from royal 38,000, forests were also available. A Μακεδονίαletter from Philippoi to Alexandros III in 335, seems to be holding up the sale of wood from Mt DysoronΘράκη ( ,Παιονία near Tripotamos in Kilkis).(Ἰλλυρία The or control Ἰλλυρίς). of resources (like timber, etc.) was not only as a commodity for the market, but as a strategic resource to be doled out as a philanthropy.12 Firewood and charcoal were necessaryΔύσορον for houses, for baths, and gymnasia, too. Wood was also transported long distances. Macedonia, Chalkidiki, Lebanon, and other places had big forests and were supplying wood. Alexander showed his intent to conquer the entirety of the Persian Empire and punish them for their invasions of Greece by throwing a spear into Asian soil and saying, he accepted ), too.
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