Roman Empire

Roman Empire had an agrarian slave-based economy whose main concern was feeding the vast number of citizens and legionaries populating the Mediterranean region. State was probably one of the main stakeholders in grain trade in the Roman Empire. But was the grain trade made possible by a strong state, or was the strength of the state dependent on the economy based on grain trade? In my opinion, the grain trade system was made possible by a strong government and it was an instrument for the government to retain power. There are three conditions provided by the strong state to encourage grain trade.

First of all, the government was able to make huge investments in construction and maintaining of facilities at deep-water ports to support the grain trade with its quite sophisticated logistics. Since grain needs special transportation and storage conditions, large warehouses providing necessary ventilation and humidity were constructed to store grain.

Secondly, the government directly incentivized citizens to be involved into the grain trade. The state provided tax privileges for grain traders, promoted ship construction and recognized status of merchants. In addition, the state provided guarantee of price and demand to reduce risks of the merchants. We also know, that the merchants were often financed by powerful elite coming from the leading families. Senators, the members of government were also among elite citizens. Thus, senators were often interested in grain trade and in retaining the power of the state.

Finally, the state was the main buyer and distributor of wheat. It was a political issue in the affordable food supply in Rome. The government began to provide a grain dole to citizens to improve living conditions among the lower classes. The grain dole affirmed position of the state as a benefactor. At the same time, the state provided free spectacular entertainments. Indeed, the state created the system of wheat distribution and free spectacular