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The main purpose of this paper is to uncover the rationale for the inward-oriented policies of Ming-Qing China (in particular, Hungwu, the founder of Ming China). In this study, we do not simply evaluate this inward-oriented policy based on historical records but in contrast, use the Adam Smith's concept of political economy to yield a sympathetic understanding of that policy. Smith emphasized the distinction between the system of agriculture and the system of commerce, preferring the former to the latter. We use Confucianism to explain the inward-oriented policy. In other words, we examine the theories of Hungwu, Adam Smith and Confucianism in a consistent and concise manner, emphasizing the notion of inward orientation. One may argue that Smith's theory and Confucianism might exist only in the speculations of a few scholars and, hence, would never have been adopted by any policy maker. This argument is addressed by analyzing Hungwu's theory, himself an important real world policy maker. |