Titulus II. Economy, Technology and Scientific Life
The Roman economy of these days is, like every other economy using the technology of the Iron Age, based on agriculture. Since agricultural technique aren't very elaborate, the major part of Roman society is occupied in the primary sector of economy, to satisfy basic human needs. Most notably, both Egypt's and North Africa's grain is used to feed Rome, the most populous city in the world.
Most agricultural work is done on great estates (latifundia), mostly owned by members of the senatorial aristocracy. Latifundia dominate the economy in Italy, Greece, Sicily, Africa and southern Gaul, whereas smaller property is more common in other parts of the empire. After the Punic Wars, slaves carried out the greatest share of the work on the estates, but their number declined since the Augustan peace. Now, under emperor Lucius, many land owners (patronus or dominus) lease their land to free citizens, working as indentured tenants (coloni).
Besides the aristocracy, the most important economic actor in the Roman Empire is the emperor. The first Severan emperors had nationalized the mining sector, and Lucius perpetuates his ancestors' policy. Inspired by the laws of the Han Dynasty, salt and iron, but also gold, silver, copper and other metals are state monopolies; mining and processing of the ore are exclusively public tasks managed by imperial officials, and the profits serve to fill the Empire's coffers.
The greatest part of the production takes place in the cities. Large factories, either owned by the state or holding a public license, compete with craftsmen working in small, primitive workshops. Craftsmen are often united into guilds (collegia or sodalitates), which are closely supervised by the state, among others for fiscal purposes. The state mistrust independent business, but has no other choice than tolerating it, since available technology doesn't allow for a planned economy.
Trade and banking, as production, are at their core still quite primitive due to early technology and often run by single businessmen, often equites. However, in contrast to pre-Severan times, companies play an important role in Roman economy. Individual merchants have formed larger companies (sodalitates marcatorum), forcing tradesmen in other regions to do the same.
The state supported this evolution, if only to control cash flows and to pass public tasks (like protecting trade routes) on private militias. Under Lucius, the early economic centralization reaches its climax – impressed by the success of the Maeotian Company, Lucius decides to start a process of economic centralization and rationalization: Each region should receive its own company, regulating the trade with Rome's neighbors by concentrating mercantile capital.
Lucius founded two new companies: firstly the African Company based at Leptis Magna, which leads the trade with Agysimba and the Hesperidian Ethiopians (buying slaves, tropical wood and exotic animals), making games (like animal chases) and constructions cheaper and the occupation of North Africa more profitable; secondly, the Maeotian Company, trading with Scythia through the rivers (mainly using theBorysthenes [1] and Tanais [2]) and with the tribes of the north (importing amber, fur, slaves and wood); the emperor is the principal shareholder of these companies.
The Office of Trade, inspired by Wang Mang's economic adjustment agency, regulates foreign trade and directs the companies. On the recommendation of the same Office, the Alexandrian and the Indian Company fused to form the large and mighty Eastern Company. Lucius, concerned about economic stability, also regulated the market for financial assets:
To prevent speculation and the financial panics of previous years, Lucius decided that shares of the three companies should be traded only in Byzantion, which received a large basilica, becoming Rome's first stock exchange. However, Antiochia, Leptis Magna and Chersonesos remained important markets for the goods of the different companies, while Alexandria, Carthage, Ostia and Charax became ports of secondary importance.
The Severan emperors, including Lucius, realized that technological backwardness obstructed the implementation of many of their ideas. For example, Lucius accelerated the creation of the first paper manufactory in the Roman Empire. Paper, developed in China in 858 AUC [3], is a quite new product and came to Rome in the last 150 years. Before being adopted by the Romans, it had to prove its usefulness.
Unfortunately, the Severan emperors didn't realize that technological progress in specialized sectors needs general progress and research. Thus, it is not surprising that philosophical universities like the Platonic Academy in Athens, the Museion of Alexandria or the Museion of Charax (with the notable exception of military and medical research) aren't funded by the imperial government.
Accordingly, agricultural technological progress is pretty mediocre. Existing technologies, like the breast collar harness, the seed drill or the one wheel barrow (monokyklos), are gladly adopted by the managers of imperial estates, whereas new technology is often suppressed by the lack of competition and independent economy.
[1] Dnieper
[2] Volga
[3] 105 CE