Anarchy and Higher Trade Equilibrium: A Study of the Russian Old Believer Monasteries

Abstract

This paper argues that anarchic communities may breach the dichotomy of anarchy and low level of trade versus the state and a high level of trade. In particular, some anarchic groups may favourably leverage the very fact of their statelessness and turn it into a competitive advantage, enabling a shift to a higher level of trade. In this vein, integration into the state is undesirable as it deprives the community of this competitive advantage and may move it to a lower trade equilibrium. To prove my hypothesis, I provide an account of the contemporary Russian old believer monasteries, located deep in the Siberian taiga. These monasteries continue to remain anarchic well into the 21st century, as their stateless existence gives them a claim to spiritual purity. This enables these monasteries to provide spiritual services to the old believers who are considered religiously impure after integrating into the state. Joining the Russian state would thus deprive the old believer monasteries of their claim to spiritual purity and, by extension, their ability to trade, rendering such action undesirable. As a result, the old believer monasteries remain stateless, while securing a high level of trade with the state-integrated old believers. This is evidenced by the presence of modern equipment, high tech goods, and significant financial resources—items that would be impossible to obtain in the taiga without extensive economic exchange.