Republic of Cospaia

The writing is still there, carved on the lintel of the little church: “Perpetua et firma libertas”. It is the fleeting, almost hidden trace of an incredible story: that of Cospaia, a small town in the Upper Tiber Valley that, for nearly four hundred years, was the smallest republic in the world.

Anarcho-capitalism has worked, yes. One country in Italy was anarcho-capitalist during a lot of centuries, but you won't release of which country I am talking about: the Reppublic of Cospaia. During 4 centuries, this little republic flourished in the center of Italy without any government, without military intervention, without bureaucracy and without taxes. This is an utopia for the modern world which we live in.

The success of this little republic that shos us that we need very few resources for achieving the flourish of a nation. So if Cospaia was not a state, why is it called a Republic. Well, it was not a republic in the strict legal sense. Some old men brought together in the church of Cospaia and they discussed about the village. This fact of being gattered together, is the expression which gives to this anarcho-capitalist community, the name of Republic. It was a territory without sea access.

The territory of Cospaia was about 3.3Km2. Only 300 people lived there, among the centuries. 300 people and 100 household lived in this anarcho-capitalist community during 4 centuries.

In the beginning, the population was illiterate, with the exception of the priest of the parish. The republic was never invaded by foreign powers, except during the Napoleonic Era, but they survived to this occupation.

In spite of being a community without sea access, and with the most of the population without education and being excluded of the most important trade routes, Cospaia got a big prosperity. During 400 years they prevent the occupation of foreign forces.

The history of Cospaia begins in 1440. During this period of time, the Italic Peninsula was formed by small kingdoms and states. One of this kingdoms were the Papal States and it was governed by the Pope, in Rome. His northern neighbour was the Republic of Florence, ruled by the Medicis. In 1432, Eugene IV was elected Pope and took a loan of 25,000 gold florins to Juan de Cosme de Medici, one of the most important bankers of the epoque and the most important man in the finances of the Republic of Florence. It was not an era of Central Banks and fiduciary money, inclusive the goverments had th offer warranties for obtaining a loan. So the Pope put the town of Borgo Sansepolcro and its surroundings in the upper part of the Tiber Valley as guarantee against the loan.

After 10 years, the Papal States couldn't pay the loan and the topographs both of Florence as of the Papal States agreed that of the new limits between the states, wouldn't be a river in the upper part of the Tibet, but the topographs made a mistake. There was more than one river in the region. A tributary in the high part was divided in two just where the town of Cospaia was located.

Although the residents of Cospaia were illiterate, they immediately realized their good fortune, since they were now outside the jurisdiction of both the pontifical states and the Republic of Florence. The people in Cospaia quickly declared themselves as an Independent Republic. The rulers of the Pontifical States and of the Republic of Florence found it valuable to have an "intermediate state" between their territories, and none pressed to incorporate Cospaia into their state. Thus began 385 years of anarchy.

In the beginning Cospaia's economy was based on barter and despite the lack of a strong currency or education, the people of Cospaia were better than the neighboring towns that were under the power of the state. Like an anarchist republic, they had no taxes to pay, they did not have arbitrary rules imposed by rulers to benefit those with good connections. Cospaia's men were not recruited to fight in the wars for Rome or Florence, and since they had no rulers representing them, they had no one who could engage them in tangled alliances that could be counterproductive and could lead them to war. The inhabitants of Cospaia were free to make exchanges and raise their families in the way they believed to be correct. Not having rulers allowed people to use in the most profitable way their time and energy.

In 1574 the people of Cospaia discovered an extremely lucrative use of their time and talent. A crop of the new world was introduced, which exerts influence in the region to this day. The crop was tobacco. Tobacco has been extremely popular throughout history, wherever it has been introduced, and in Renaissance Italy it was not to be the exception. Cospaia was soon known for its high quality tobacco. This is in addition to the demand for tobacco given the restrictions imposed by the states in the Italian peninsula on the cultivation and use of tobacco. Many people think that banning tobacco use is a twentieth-century invention, however the morality police were alive and well in the 17th century as well. In 1624 Pope Urban VIII published a papal bull making the use of tobacco in any sacred place punished with excommunication. The ban was maintained until 1724 when it was abolished by Pope Benedict VIII. Of course, these anti-tobacco regulations only benefited Cospaia's economy. The fall in supply and the absence of regulations or taxes made Cospaia the center of tobacco exchange. Soon stores were set up to take advantage of this lucrative business. Many of these warehouses were run by Jews from Genoa, Livorno, Civitavecchia, Naples and Ancona. Jews in Italy were a minority persecuted and closely watched by the surrounding states. On many occasions they were forbidden to own a property and were forbidden from trading with Christians. So the economy of laissez faire Cospaia allowed to survive and prosper this persecuted minority despite the aggressions of the states that were in the surroundings.

Throughout its history, Cospaia had no rulers, no judicial power, and no written laws except for the phrase "Perpetua et Firma Libertas," which was inscribed in his church in 1610. The approximate translation, "Firme and Eterna Libertad . "

Disputes were handled by the heads of the families or the local priest. Mediators were chosen for their integrity rather than for their political connections. There is no indication that Cospaia was a violent place. If it had been, its inhabitants would have adhered to the papal states or to the Republic of Florence. Instead, the opposite happened. People moved en masse to Cospaia because it allowed them to have opportunities that did not exist in neighboring states.

Cospaia is described as a "lawless" place, and inhabited by "smugglers," and of course these accusations were true. Cospaia had no laws except for Perpetua et Firma Libertas. Because almost everything that entered the pontifical states or the Republic of Florence was taxed, anything that Cospaia left was "contraband." In the 18th century, Cospaia had gone from being a harmless little village to being a tax-free property center. It was not only the tobacco capital in Italy, but also textiles, groceries, and other goods circulated without taxes through Cospaia. The rulers of the neighboring states were naturally offended that someone was making money and they were not getting their share. They began to call Cospaia a "lair of lawless smugglers." There are reports that the Pope and the Grand Duke of Tuscany corresponded on how to solve the problem of "contraband."

For much of Cospaia's history, they had evaded the anger of their larger neighbors because they were small, and the rulers of the neighboring states generally had bigger problems than the minimal loss of income they suffered at the hands of Cospaia's free market.

In 1826 the state finally had enough of the resounding success of Cospaia, and the Pope together with the Grand Duke of Tuscany caused the small Republic to go hungry and forced the remaining 14 heads of family to sign the "subjugation act" thus ending 385 years of freedom and anarchy. As compensation, each region was allowed to grow half a million tobacco plants (its cultivation was banned everywhere), residents were also compensated with a silver coin bearing the image of the Pope. The coin eventually became known as the "papetto", combining the Italian words for Pope and small, indicating how little they had received in exchange for giving up their freedom. To this day the people of Cospaia hold an annual festival to celebrate the freedoms they once enjoyed. If you are ever in Italy visit El Banquete de Cospaia.

It is tempting to ask what would have happened if Cospaia had remained free until this day. Could they have survived in the modern era like San Marino or Liechtenstein? So tempting that these questions are, I think that Cospaia still has important lessons to teach us. After all, they were an anarchist republic that survived and thrived for 385 years. They are 385 years without taxes, wars, rulers or regulations. I challenge anyone to name a country with a better record.

Today, Cospaia remains a small town and is now part of San Giustino. The road travelling through town — via della repubblica, or “the way of the Republic” — pays homage to their roots.

The tradition of the town is not forgotten. In fact, each year, the former Republic (as it still is called) holds a festival celebrating the rich history of Cospaia. The land is still as beautiful as ever, containing the fields and picturesque landscapes that no doubt captivated generations of the free men and women of Cospaia.