Draft: Please do not cite or circulate Constitution and Coordination: Behavior, Institutions, and Institutional Change in Ancient Athens Federica Carugati Associate Director, Ostrom Workshop Visiting Assistant Professor, Political Science Department and Maurer School of Law
[email protected] ABSTRACT: At the end of the 5th century BCE, a prosperous imperial democracy embarked on a long and demanding war. The conflict severely strained Athens’ resources, compromised her commitment to democracy, and plunged the city into civil war. Within a few years, Athens was again a prosperous democracy. How did the polis manage to rebound so decisively? This article explores the dynamics of institutional change in ancient Athens by analyzing how beliefs affected institutional change, and how institutional change shaped long-term political and economic outcomes. I argue that, during the late 5th century crisis, the Athenians collectively articulated a consensus on law as a bulwark of constitutional stability. After the civil war, the commitment to law was weaved into the structure of a new, self-enforcing constitution. The constitution fostered political stability and economic recovery by enabling investments in institution building and infrastructure. 1 Draft: Please do not cite or circulate 1. Introduction At the end of the 5th century BCE, the world’s first large-scale democracy failed.1 Under the pressure of a long and demanding war, the Athenian Assembly (the polis’ legislative organ) made a series of poor military decisions that plunged the city into a severe and protracted crisis. In the span of a decade, a prosperous, stable, imperial democracy lost its major sources of revenues (i.e.