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Section 1
  Lesson 1: The Land Between the Rivers
  Lesson 2: Sumer
  Lesson 3: Babylonia
  Lesson 4: Hammurabi's Code
Section 2

Lesson 3: Babylonia

As Sumer weakened, invaders began to overrun its cities. One group of invaders took over the small town of Babylon, located near the point where the Tigris and Euphrates flow close together. This previously insignificant town became the centre of a new Mesopotamian empire known as Babylonia.

The Economy of Babylonia

When we speak of the economy of a country, we mean the system which that country uses to produce, distribute, and consume goods. The economy of Babylonia was based, like that of Sumer, on agriculture. In Sumer, agricultural products such as grain and wool were often traded for goods the Sumerians could not produce themselves. This system was known as bartering.

MoneyBartering was used in Babylonia, too, but money gradually replaced it as a means of exchange. The money was in the form of bars of precious metals—silver, copper, or gold. The Babylonians even had banks to manage their money. Money had many advantages. For example, it is easier to handle and exchange than grain.

Video: The Origins of Money     T1     ISDN     56k


The Babylonians were shrewd businesspeople. Their boats sailed up and down the Tigris and Euphrates rivers and into the Persian Gulf, carrying goods that kept the Babylonian markets busy and the country wealthy.

Land Ownership

In Babylonia, individuals were able to own the land, while in Sumer they could only rent the land from the priests on behalf of the gods. There were several advantages to individual ownership. For example, profits from crops went to the landowners. Land owners were also more likely to want to improve crop yields because they would receive the profits.


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