
Birth of the Multinational:
2000 Years of Ancient Business History,
From Ashur to Augustus
Karl James Moore and David Charles Lewis
* Excerpts from pp. 46-48:
Arising  in the mid-fourth millennium BC, Sumer and its daughter civilizations  of Babylon and Assyria led Western civilization for three thousand  years, half of recorded human history.
Why did Mesopotamian Iraq  come to excel in world politics and trade while richer lands like Egypt,  India and China played more peripheral roles? The answer, once again,  appeared to rest in the comparative historical geography of these  cradles of civilization. ...
History took a different course in  Sumer, Babylon and Assyria, which were ultimately destined to become the  true cradles of private initiative and capitalism, the evidence for  which in Mesopotamia is as old as writing itself.
The oldest  written documents of human civilization itself, dating from 3200 BC if  not earlier, evoke the crude and primitive business transactions of the  very ancient communities arising just north of what was then the swampy  coastline of the Arabian gulf. Far more suited as a source of irrigation  water than the swift-flowing Tigris, the Euphrates in the fourth  millennium BC became the major locus of settlement in Sumer.
Even  though at first there was human life along the lower Tigris, both  rivers and their adjoining canals constituted an interlocking web of  land and water routes that would eventually "tend to strengthen local or  regional units and impede the trend towards unification" permitting the  rise of multiple power centers.
It would be too simple to  assume, however, that geography of and by itself led to the rise of  capitalism in Mesopotamia; it merely removed a major bureaucratic  obstacle by preventing any single municipality or settlement from  monopolizing access to the outside world.
Instead of encouraging  a one-state monopoly upon trade and commerce, the terrain of  Mesopotamia permitted an environment of competition to develop among  various Sumerian towns that would help generate the revolution in  technology, which, after 3100 BC, would usher in the Bronze Age. ...
Sumerian,  Anatolian and other smiths, long accustomed to forging primitive Copper  tools, began around that time to discover that when they mixed their  soft red-brown Copper ore together with sufficient amounts of Tin in a  super-hot furnace, they would produce a harder alloy called Bronze.
The  more Tin they mixed with red Copper, the yellower and harder the new  metal, known as Bronze became. The invention of Bronze alloys in  foundries where the fires were heated to between 590 and 790 degrees  centigrade made it possible for professional Metallurgists to mold soft  Copper and Tin into sturdy plows, building tools, kitchen ware and other  Items destined to vastly increase human productivity in a manner  comparable to that of the Industrial Revolution of modern times.
The  very map of Mesopotamian civilization itself was redrawn after 3100 BC.  Sumerian farmers could now plow their lands to grow enough food to  enable others to enter more specialized occupations and live off the new  surplus produced by an increasingly capitalized agriculture.
An  urban, commercial and money economy was thus made possible through the  molding of Bronze ploughs, sickles and the invention of wheeled  donkey-carts, all of which made it possible for the Sumerian farmer to  send his excess Wheat and Barley to feed the new sculptors, carpenters,  leather-workers, brick-layers, scribes and others now able to earn a  living in places like Ur.uk. ...
In the Copper Age before 3100  BC, the people of Southern Mesopotamia dwelt, as did the rest of  humanity in the Near East, in an almost completely rural subsistence  economy. Sumerians and others lived in towns along or near their river  valleys or wherever sufficient rainfall and moisture permitted them.  Only one or two of these towns such as Eridu and Uruk merited the title  of city.
The Sumerian landscape then changed dramatically between  3100 and 2900 BC as the Bronze Age Urban Revolution began to gain  momentum.
The Tigris-Euphrates and western Iran quickly acquired  dense clusters of concentrated farms and towns and a dozen growing  cities like Kish, Ur, Lagash, Umma, Awan, Hamazi and Shuruppak.
The  same phenomenon would, within several centuries, come as well to other  regions: Northern Mesopotamia and Syria, Anatolia, the Indus Valley, but  not before the Sumerians, crowding into their cities in search of new  economic opportunities and military security, had clearly taken the lead  in capital formation, technology and urban development. ...
The  Urban Revolution gave birth to forms of politics, diplomacy, war and  business, which, if different from our own, are, for the first time  recognizable.
Evolving from pictograms, which appeared at the  end of the Uruk Period (3500-3200 BC), the cuneiform alphabet of  3200-2900 was sufficiently streamlined and detailed enough to provide an  eyewitness commentary upon early Dynastic civilization.
Humanity's  first urban and capitalist civilization and its development were  revealed day-by-day in the tablets of the time as well as in the silent  testimony of the ruins of its royal tombs and impressive buildings.  Decorated with images of ears of Corn and stalks of Wheat, the vases of  Uruk spoke as much about the nature of its economy as volumes of  tablets.
In the center of the developing institutions of these  emerging sophisticated urban communities were the temples of their gods  and the palaces of their Lugals, "big men" or Kings.
Following  the work of Sumerologist Anton Deimel in 1931, five decades of scholars  believed that the city-states of the ancient Near East were "socialist"  theocracies in which the temple exercised supreme political power and  owned all of the land.
Private ownership of lands was felt to be  nonexistent until it was recognized in the early 1960s that city-states  such as Lagash controlled large tracts of rural territory owned by  family groups.
Individual and family property and commercial  markets were an integral part of the Mesopotamian economy from the  beginning, existing alongside and in perfect harmony with the public  enterprises of the palace and temple.
The average Sumerian  peasant was more than capable of supporting himself and his family from  his irrigated plot on which he usually grew vegetables and wheat while  raising chickens. Documents from Lagash prove that most of these plots  were privately owned, even by the poor, and that Real Estate was a  thriving business even in early Dynastic times.
If the urban  Mesopotamian economy rejected communism, it was by no means a  laissez-faire system either. Tablets from both Sumer and Ebla picture a  very patrician and paternalistic form of mixed economy, which gave  entrepreneurs certain freedoms within a mercantilist framework of  strongly regulated commerce, much of which was still state-run. ...
The  history of the ancient Near East between 3000 and 2000 BC was one of  expanding trade and commerce, growing social inequality and the rise and  fall of centralized bureaucratic governments many of whose functions  were later assumed by new commercial organizations in the  Assyro-Babylonian private sector.