For students of economics and ancient civilizations alike, the strange economy of the Incan Empire is fascinating. Annalee Newitz writes for io9:
In the fifteenth and sixteenth centuries, the Inca Empire was the largest South America had ever known. Rich in foodstuffs, textiles, gold, and coca, the Inca were masters of city building but nevertheless had no money. In fact, they had no marketplaces at all.
Centered in Peru, Inca territory stretched across the Andes’ mountain tops and down to the shoreline, incorporating lands from today’s Colombia, Chile, Bolivia, Ecuador, Argentina and Peru – all connected by a vast highway system whose complexity rivaled any in the Old World. The Inca Empire may be the only advanced civilization in history to have no class of traders, and no commerce of any kind within its boundaries. How did they do it?
Many aspects of Incan life remain mysterious, in part because our accounts of Incan life come from the Spanish invaders who effectively wiped them out. Famously, the conquistador Francisco Pizzaro led just a few men in an incredible defeat of the Incan army in Peru in 1532. But the real blow came roughly a decade before that, when European invaders unwittingly unleashed a smallpox epidemic that some epidemiologists believe may have killed as many as 90 percent of the Incan people. Our knowledge of these events, and our understanding of Incan culture of that era, come from just a few observers – mostly Spanish missionaries, and one mestizo priest and Inca historian named Blas Valera, who was born in Peru two decades after the fall of the Inca Empire.
Wealth Without Money
Documents from missionaries and Valera describe the Inca as master builders and land planners, capable of extremely sophisticated mountain agriculture – and building cities to match. Incan society was so rich that it could afford to have hundreds of people who specialized in planning the agricultural uses of newly-conquered areas. They built terraced farms on the mountainsides whose crops – from potatoes and maize to peanuts and squash – were carefully chosen to thrive in the average temperatures for different altitudes. They also farmed trees to keep the thin topsoil in good condition.
Incan architects were equally talented, designing and raising enormous pyramids, irrigating with sophisticated waterworks such as those found at Tipon, and creating enormous temples like Pachacamac along with mountain retreats like Machu Picchu. Designers used a system of knotted ropes to do the math required to build on slopes.
And yet, despite all their productivity, the Incas managed without money or marketplaces…
[continues at io9]