Did state expansion incur diminishing returns (Lane) or exploit Essay

Did state expansion incur diminishing returns (Lane) or exploit economies of scale - Essay Example It has been argued that the emergence of nation state was basically an attempt to achieve the required level of economic growth. It is therefore generally believed that the consistent increase in the growth of economies of Europe was mostly a direct result of the emergence of nation state due to which different institutional changes took place. It is therefore generally believed that the economic growth of the Europe is mainly due to this notion of Nation State. What is also however, significant to note that economic theory often ignored the use of violence and organized crime and war to achieve the objectives of economic growth? According to Lane (1954) the use of violence created economies of scale against those enterprises which were using the same violent techniques or were engaged in achieving so called territorial monopoly. It is therefore important to discuss as to whether the expansion of State in new territories is essential for the exploitation of economies of scales or it actually result into diminishing returns. This paper will therefore discuss this notion and will present a well balanced argument as to whether the State expansion actually results into achieving the economies of scale or not. It has been argued that the closer connection between the war and the development of nation state started to emerge during the 15th century. This was the period in European history when most of the countries witnessed centralization of the political structures within their countries. Different countries have started to develop centralized governments and the overall concept of nation building started to emerge. What is also important to note that with the development of the centralized power structures within the societies, the overall political power of the central authorities increased too and with that power came the more power to control the economic lives of the citizens of the state also? Much of this