Italy
Why Nations Fail: The Origins of Power, Prosperity, and PovertyItaly appears in the book not as a single, unchanging political unit but as a landscape repeatedly reshaped by competing institutions. In the Roman Republic, expansion generated wealth and economic activity, yet much of its benefit flowed to a narrow senatorial elite while the loss of smallholders’ land sharpened conflict. Centuries later, French armies made Italy a central theater of revolutionary war, and the reforms imposed by the French and Napoleon weakened feudal and corporate privileges. The contrast between these episodes shows how growth, power, and the distribution of resources could move together—or pull apart.
Rome: expansion and unequal gains
The Roman Republic’s economic expansion left traces in both archaeological evidence and the political conflicts described by ancient historians. The number of known shipwrecks rose sharply toward the birth of Christ, reaching a peak of 180. Yet shipwrecks do not simply measure private commerce: probably two-thirds of the cargoes belonged to the Roman state, including taxes and tribute carried back from the provinces and grain and olive oil brought from North Africa for distribution to Rome’s citizens. Much of the physical accumulation associated with Rome’s wealth therefore reflected extraction as well as exchange.
A second indicator comes from ice cores in Greenland. Snow preserves atmospheric pollutants, including lead, silver, and copper, and samples drilled in 1990–1992 through 3,030 meters of ice revealed a marked rise in these pollutants beginning around 500 BC. Their levels increased through the following centuries and reached a peak in the first century AD, evidence of the scale of Roman mining. Lead levels would not reach a comparable level again until the thirteenth century. These measurements indicate substantial economic expansion, but they do not by themselves show how its proceeds were distributed.
Roman institutions combined political rights for citizens with highly extractive practices. Slavery was widespread, while the senatorial class—whose members were drawn from large landowners—dominated politics and much of the economy. The Plebeian Assembly and plebeian tribunes existed, but effective power remained with the Senate. The distribution of land was profoundly unequal and probably became still more so by the second century BC, setting the conditions for the land-reform conflict associated with Tiberius Gracchus.
As Roman power spread across the Mediterranean, wealth accrued disproportionately to a few senatorial families. Their resources came from control of lucrative provinces and from extensive estates in Italy, worked by enslaved people, many captured in Rome’s wars. At the same time, the Republic’s military system placed mounting pressure on smallholders. Citizen-soldiers had once left their farms for campaigns and then returned to them; as wars grew longer, some were absent for years. Their holdings fell out of use, families could face debt and hunger, and land was gradually absorbed into senatorial estates. Dispossessed citizens gathered in Rome, where the widening gulf between rich and poor became a source of political danger. The landowners who benefited from this arrangement held power and had little reason to dismantle it.
Land reform and political conflict
Plutarch’s account links Tiberius Gracchus’s reform campaign to his journey through Etruria, where he became aware of the hardship facing citizen-soldiers’ families. Whether that experience alone prompted his intervention or intersected with other disputes with senators, he advanced a plan to change land allocation in Italy. Elected plebeian tribune in 133 BC, he proposed a commission to investigate public land held beyond the legal limit of three hundred acres and redistribute the excess to landless Roman citizens. The limit came from an old law that had long been ignored.
The proposal threatened the interests of the senatorial class and was initially obstructed. Tiberius used support from the crowd to remove a fellow tribune who was vetoing the measure, allowing the commission to be established; the Senate then prevented it from carrying out its work by withholding funds. The struggle thus concerned not only a stated acreage limit but also who could enforce law, direct public resources, and decide how land would be distributed.
The dispute escalated when Tiberius claimed for the commission funds left to the Roman people by the king of Pergamum. He also sought election to a second term as tribune, in part because he feared prosecution after leaving office. Senators used the bid for another term to accuse him of seeking kingship. He and his supporters were attacked, and many were killed; Tiberius was among the first to die. His death did not resolve the underlying land question. His brother Gaius later took up the reform cause and was also killed by landowners, underscoring how persistently efforts to alter the distribution of resources met resistance.
Italy in the French Revolutionary Wars
By the late eighteenth century, Italy had become the main theater of war between France and Austria. France had annexed Savoy in 1792, but the conflict remained at a stalemate until Napoleon invaded in April 1796. By early 1797, in his first major continental campaign, he had conquered almost all of northern Italy; Venice, by contrast, was taken by the Austrians. The Treaty of Campo Formio, signed in October 1797, ended the War of the First Coalition and recognized several French-controlled republics in northern Italy.
The treaty did not end French expansion across the peninsula. French forces invaded the Papal States and established the Roman Republic in March 1798. Naples was conquered in January 1799, and the Parthenopean Republic was created there. With Venice remaining Austrian, France controlled the rest of the Italian peninsula either directly, including Savoy, or through satellite republics: the Cisalpine, Ligurian, Roman, and Parthenopean. During the War of the Second Coalition, from 1798 to 1801, control was contested, but France essentially remained dominant.
Conquest, reform, and industrial change
French rule brought military conflict and political upheaval, but it also carried reforms that altered economic and social arrangements. Revolutionary armies abolished remaining feudal relations, weakened or eliminated urban guilds, and imposed equality before the law in the territories they controlled. Napoleon continued many of these changes, while also seeking firm control over conquered lands, sometimes making agreements with local elites or placing family members and associates in authority. His codification of Roman law and legal equality in the Code Napoléon gave those principles a durable legal form, and the code remained in force in some places even after French rule ended.
The reversibility of reform varied. In Hanover, old elites returned after Napoleon’s fall and much of the French settlement was lost. Elsewhere, feudalism, guild power, and aristocratic privilege were permanently destroyed or substantially weakened. Across Europe, the removal of inherited restrictions helped prepare the ground for more inclusive economic institutions. By the middle of the nineteenth century, industrialization was advancing rapidly in many places once controlled by France, while Austria-Hungary and Russia, which the French had not conquered, and Poland and Spain, where French control was limited or temporary, remained largely stagnant. Italy’s revolutionary-era experience is therefore part of a wider argument: political conquest could impose sweeping change, and the institutional consequences could outlast the armies that brought it.