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On the Economics of the Socialist Theocracy of the Jesuits in Paraguay (1609-1767) |
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NONNEMAN Walter |
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Affiliation: Department of Economics, University of Antwerp |
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Keywords: Relation between Church and States, Theocracies, Economics |
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| Abstract: | From 1609 to 1767 the Jesuits governed a “socialist theocracy” in Paraguay. Never more than 200 Jesuits managed
a Guarani Indian population of up to 150,000 people in a network of over 35 “reductions” or missions dispersed
over an area twice the size of France and encapsulated in the Spanish-Portuguese colonial system. By the end of the 17th century, the Jesuit state was developed into a fully developed and well organized command economy. This
paper explains the underlying economics of the development and properties of the Jesuit state. The Jesuits
planners regulated land use, labour movement and trade. They also controlled the production of public goods, structured saving and investment, and provided for social insurance and external security. Jesuit rule was autocratic. Power production was high on loyalty and low on repression. Loyalty was derived from heavy investments in religious indoctrination but also from successful military and diplomatic protection of the Indian population. Repression was limited by incorporating indigenous customs and structures of authority. The Jesuit state came to an abrupt end when the Jesuits were expelled, first from Portugal and its colonies in 1758 and later also from Spain and its dependencies in 1767. |
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