Principles for Dealing with the Changing World Order: Why Nations Succeed and Fail

by Ray Dalio

At the time, Confucian scholars were then seen to be near the top of the social hierarchy, which helped them get ahead in politics. To get ahead one needed to study Confucianism in depth and pass highly competitive exams. Political decisions were frequently based on ruler’s interpretations of Confucian ideals. “Neo-Confucianism,” which was dominant at the time, shifted the focus of the belief system toward a more rational, philosophical, academic, and humanistic form. This way of thinking, which was practical, evidence-based, and scientific, was a key reason China pulled so far ahead of Europe in the Middle Ages. At the time, scholars and scientists had significant power, which led to remarkable technological advances (gun powder, the printing press, architecture, and more). Literacy rates were extremely high relative to other places at the time, and China was also advanced in medicine. For example, it had a widespread program of fighting smallpox infection via an early form of vaccination, centuries before Europe. Its financial system was