Kathmandu— Across thousands of years, the way governments are funded has emerged as a critical factor in shaping their governance style. A recent global comparative study spanning Europe, Asia, and the Americas found that revenue generation methods strongly predict whether a government becomes concentrated in the hands of a few or remains more collective and inclusive.

Revenue Dependence Shapes Governance

The study, published in March 2026, analyzed governance patterns across 40 historical cases. It found that governments relying heavily on externally controlled resources such as taxes from local production or market activity were more likely to be inclusive and accountable. Conversely, rulers who could finance themselves through monopolizable resources like royal estates or war booty tended towards autocracy.

Feedback Loops Between Autocracy and Inequality

The research also uncovered a significant relationship between autocratic governance and higher levels of socioeconomic inequality. Societies with concentrated power exhibited greater disparities in wealth, as measured through differences in housing, access to valued goods, burial treatment, and other indicators. This pattern suggests that autocracy and inequality reinforce each other over time.

Political scientist Margaret Levi's argument that the history of governance is deeply intertwined with revenue collection is supported by this new evidence, which extends her insights across millennia and continents.

(With inputs from CounterPunch)

Originally published on abcnews.com.np.