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Aksum

Why Nations Fail: The Origins of Power, Prosperity, and Poverty

Aksum was an ancient kingdom in the north of present-day Ethiopia, founded around 400 BC and linked to a wide network of international trade. Its history provides a striking comparison with the Roman Empire: both were developed states that later lost commercial connections and experienced economic decline, but the political arrangements that followed took distinct forms. In Aksum, the weakening of central authority was followed by a land-based system of service and tribute that resembled European feudalism while allowing substantial extraction from farmers.

Kingdom and Commercial Reach

Aksum was a relatively developed kingdom for its time. It traded with India, Arabia, Greece, and the Roman Empire, and possessed institutions and technologies comparable in important respects to those of the Eastern Roman Empire. It used money, constructed monumental public buildings and roads, and had similar technologies in agriculture and shipping. The kingdom was not isolated from the political and commercial world around the Red Sea: its historical territory included outposts across the water in what are now Saudi Arabia and Yemen.

Aksum also shared a religious turning point with Rome. Around the time the Roman emperor Constantine converted to Christianity in AD 312, Aksum’s King Ezana did so as well. The parallel does not make the two states identical, but it places Aksum among the established powers of late antiquity rather than at the margins of it. Its roads, public works, currency, and overseas connections together indicate a kingdom able to support both organized government and long-distance exchange.

Loss of Trade and Economic Decline

The book compares Aksum’s decline with that of Rome, while identifying a different external force behind the Aksumite reversal. In the seventh century, Arab expansion into the Red Sea and down the Arabian Peninsula displaced the Huns and Vandals as the external pressure shaping Aksum’s fortunes. Aksum lost its colonies in Arabia and its trade routes, weakening connections that had helped sustain the kingdom’s economic life.

The consequences described are material as well as political. Money ceased to be coined, the urban population fell, and the state’s orientation shifted inland, toward the highlands of modern Ethiopia. This sequence makes the decline legible through changes in commerce, settlement, and government: overseas losses were followed by contraction in urban life and a refocusing of the state. Aksum’s fate is therefore not presented as a simple story of one invasion, but as a chain in which the loss of external connections contributed to wider economic and political change.

Gult and the Reorganization of Authority

After the seventh century, Aksum’s institutional development followed a pattern the book compares with Europe after the collapse of central state authority. In Europe, feudal institutions emerged in the wake of weakened central power. In Ethiopia, a comparable arrangement developed around gult, a system in which the emperor granted land to a holder who owed services, especially military service, in return. The gult holder, in turn, had the right to collect tribute from those who farmed the land.

The term gult derives from an Amharic word meaning that he assigned a fief. The institution appears in thirteenth-century manuscripts, although it may have originated much earlier. Historical sources cited in the book suggest that gult holders could extract between one-half and three-quarters of the peasants’ agricultural output. That range makes clear that the resemblance to European feudalism was not merely a matter of terminology or landholding: both systems connected grants of land and obligations to rulers with the extraction of produce from cultivators. By comparison, at the height of feudalism in England, serfs lost about half of their output to their lords in one form or another. The book thus characterizes the Ethiopian arrangement as probably more extractive.

A Distinct Institutional Path

The comparison with Europe is deliberately limited. Gult was an independent Ethiopian development, not evidence that the country simply repeated a European sequence. The system had notable similarities to feudalism, but Aksum’s later circumstances differed: after the seventh century, Ethiopia remained isolated in the mountains of East Africa from processes that subsequently shaped Europe, including the rise of independent cities, emerging constraints on monarchs, and the expansion of Atlantic trade after the discovery of the Americas.

In the book’s account, this isolation helped leave Ethiopia’s version of absolutist institutions largely unchallenged. The contrast gives Aksum’s history its broader significance: the loss of trade routes and colonies did not just reduce exchange in the short term, but preceded a different institutional settlement, one in which landholders mediated authority and extracted tribute. Aksum demonstrates how a kingdom once connected to major trading partners could be redirected inward, and how similar pressures of weakened central power could produce arrangements with family resemblances across regions without making their histories identical.