MGMT2123 Lecture Notes - Lecture 5: Pope Eugene Iii, Crony Capitalism
11 Jun 2018
School
Department
Course
Professor
Day 5: (First summarize steps)
● Political Economic Systems:
○ Pre Modern
○ Small Family Business
○ Large Family Business
○ Crony Capitalism
■ Pre Modern Colonial
■ Modern Regional
○ Managerial Capitalism
○ Social Democratic Capitalism
○ Finance Capitalism
○ Network Capitalism
○ Combinations
● Case: Historical
○ Premodern Italy
○ Royals, Military, Large Land Owners and Religion (Roman Catholicism)
○ Cosimo de Medici v. Pope Eugenius
○ Venice approaching peak of its power in the mediterranean, about to overthrow
the Byzantine empire
○ Church against charging interest or saw it as sin as usury
○ Cosimo asks Pope how god might have mercy on him…
■ How can i be a good banker and a good Christian
○ This is a late negotiation, banking systems had been in practice for hundreds of
years
○ Cosimo through the official state religion, (pope) is trying to negotiate these guys
(other big business merchants and others) to be included…. And if they dont …
civil war
■ IF they do wealth and power will shift and pre-modern system will die off
○ I am the Pope
■ I make it legal (charging interest) as long as Medici and others donate
15% of profits (7.5% to the church up to their discretion, 7.5% to public
works exclusively)
○ Civil War was avoided
○ Is there anything that you agree to between Pope and Cosimo that might work
today in the Muslim world?
September 14th
● Case: France/Former Colony Peace Making
○ With help of the Military the incumbent can fix the election and declare
themselves winners
○ Country 2 leader also corrupt
○ Other big countries are interested observers (ex: US) who defer to the French
○ Since not a lot of oil, not a big interest to the Chinese… not a player
○ The Russians are also not a player here, the resources are not very strategic for
Russia
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Document Summary
Royals, military, large land owners and religion (roman catholicism) Venice approaching peak of its power in the mediterranean, about to overthrow the byzantine empire. Church against charging interest or saw it as sin as usury. Cosimo asks pope how god might have mercy on him . How can i be a good banker and a good christian. This is a late negotiation, banking systems had been in practice for hundreds of years. Cosimo through the official state religion, (pope) is trying to negotiate these guys (other big business merchants and others) to be included . If they do wealth and power will shift and pre-modern system will die off. I make it legal (charging interest) as long as medici and others donate. 15% of profits (7. 5% to the church up to their discretion, 7. 5% to public works exclusively) With help of the military the incumbent can fix the election and declare themselves winners.
