#6 - Gold and Growth: The Economic Legacy of Mansa Musa

Gold and Growth: The Economic Legacy of Mansa Musa

A Golden Pilgrimage

Turning back the clock to early 14th-century Mali (located in western Africa), one finds themselves at the birth of a new empire—one propelled by gold. Or, as Professor Loeb would put it, "the gold mines go brrrr." During the reign of Mansa Musa I, Mali saw immense economic growth that couldn’t even be placed on an accurate scale by modern-day historians and economists.

Musa went on Hajj to Mecca in 1324, traveling with barrels of gold and other luxurious resources like salt and ivory. En route to Mecca, Musa’s lavish gift-giving in the Egyptian capital of Cairo is said to have completely collapsed their gold market by drastically increasing the supply within their borders. However, the economic policy that Mansa Musa brought to the empire extended beyond opulence. He introduced Islam into the economic systems, particularly with Zakat (mandatory almsgiving) and Sharia Law, integrating them into the widespread Sugubas. A Suguba refers to the large markets throughout the Malian Empire that were used for trade routes.

During his reign from 1312–1337, Mansa Musa introduced policies promoting Islamic financial systems that complemented their extensive trade network and booming gold deposits. This policy had noticeable short-term and long-term impacts on the local economy, trade, wealth distribution, and the broader Islamic macroeconomy.

Economic and Cultural Impacts

Al-Umari’s The Description of Africa describes how this policy change helped cement Mali’s position as a key player in global trade during the 14th century. The implementation of Zakat redistributed wealth by requiring businesses and wealthy individuals to donate a portion of their income to the less fortunate. However, as discussed in economic studies, one could argue this system kept low earners out of the workforce and de-incentivized financial moguls from earning more.

To counterbalance this critique, it’s important to note that this societal system became a cultural norm after the assimilation of Muslim theology rather than a mere "tax the rich" proclamation. This policy was on full display in 1324 during Mansa Musa’s pilgrimage to Mecca, where Mali’s transformation into a dominant economic force was showcased on the world stage.

Infrastructure and Education Investments

The Solow Growth Model explains long-term economic growth through capital accumulation, technological advancements, and productivity improvements. Mansa Musa’s investments in infrastructure, such as trade routes and developed city centers like Timbuktu, increased the marginal product of capital. These developments facilitated trade and production, further elevating the levels of capital stock.

The enormous increase in trade revenue from salt and gold exports provided the necessary resources to push the economy forward. Additionally, Musa’s fostering of education through established learning centers attracted scholars from across Africa to spread knowledge and enhance common skills. Education enriched the labor force and boosted the overall economic output. The resulting growth in education also allowed lower-tier citizens to participate in the economy, acting as a catalyst for wealth redistribution. Innovations in trade logistics within the Suguba trade centers mirrored technological progress in the Solow Model, leading to sustained production and output growth over time.

The Downturn and Legacy

Mali’s immediate boom under Mansa Musa’s fiscal policies brought soaring prosperity, but the trend steadied more each year after the Hajj in 1324. Al-Umari’s accounts and the Solow Model both depict the trajectory of growth tapering into a steady-state adjustment due to sustained investments in human capital and trade enhancements.

Mali’s centralized government, with provincial governors personally appointed by Mansa Musa, enabled these policies to take root. While law and administration were portrayed as fair and just, it’s possible that scribes embellished their accounts. Nonetheless, Mali during Mansa Musa’s reign is often compared to economically developed, modern-day Western societies in terms of governance and infrastructure.

After Musa’s death, however, internal power struggles divided the empire, weakening trade routes and the unified Islamic economic code that had driven Mali’s economic growth. This fragmentation prevented Mali from maintaining its golden age. Today, modern-day Mali struggles economically, ranking among the world’s poorest nations. Economists continue to debate whether Africa’s modern challenges stem more from colonialism or geographical and geopolitical factors.

Closing Thoughts

Mansa Musa’s economic policies left a lasting legacy of wealth redistribution, education reform, and infrastructure development. These changes, combined with Mali’s abundant natural resources, enabled the empire to become a dominant economic power during its golden age. Though modern Mali bears little resemblance to its historical peak, the transformative impact of Mansa Musa’s reign serves as a reminder of how governance and resource management can elevate a nation.

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