Trade was a large part of Southwest Asia. A prime example of this is the common event of purchasing supplies from cities such as the Chinese, European, and African empires. In Southwest Asia itself, one of the most thriving cities was that of Medina. Medina was an Islamic city that catered to the less wealthy traders thanks to their ban on charging fees, rent, and permanent buildings. Needless to say, this made it a popular city among the majority of people from all classes. Medina’s economy itself had elements from both capitalism and socialism while not leaning too heavily in one direction. One of the more advanced ideas Medina presented, however, was the concept that people of all genders, ethnicities, and backgrounds were able to purchase land.
The Spread of Islamic Economy
Islamic based empires grew through the spread of Islam. The non exclusive and accepting culture lead to expansion through Islamic goods and people. One such place it spread to was Jerusalem, which conflicted with the Christians and eventually started the crusades. The crusades affected trade severely, as Muslim people avoided the crusaders at all costs. This lead to the decline of merchants, directly handicapping the trade for the meantime. However, with the development of maritime trade in that area, Islamic economy could continue to thrive under the dire circumstances, spreading its influence even more over Southwest Asia and the world.
The Biggest Impact
To conclude, the most powerful innovation Islamic economy had was documenting purchases in the form of contracts and receipts. With the recent invention of paper, traders could document their inventory, expenses, and catalog orders. Many of the documents are very similar to the kind we have today. Much like when buying land or a house they put their signatures on contracts that deal with major financial transactions and each party received a copy of the document. Business techniques that they had are very similar to the way our banking system today. There were also an early form of what would be currently known as a corporation during this time, where they are separate from the government, much like ours. Islamic caliphates were one of the first welfare states.
Written in Joint By: Angelo Bahe and Max Woolverton Edited By: Max Woolverton