Book SummaryThe Square and the Tower, by Niall Ferguson

1-Page Summary1-Page Book Summary of The Square and the Tower

In The Square and the Tower, best-selling author and Stanford University historian Niall Ferguson applies network theory—the study of how people and other entities connect with each other—to the study of world history. He notes that historians typically focus on the history of governments and other institutions that are organized as formal hierarchies, but that other types of networks affect society as well. He sets out to show how such alternate networks have affected the world.

The title of the book is a metaphor for the interplay between formal hierarchies and other types of networks: The tower represents governmental authority and formal hierarchies, while the town square represents social and commercial networks outside the...

The Square and the Tower Summary Network Theory

Network theory is the study of how people or other entities connect and interact with each other to form networks. It examines how different kinds of networks operate and how they affect the world around them.

As Ferguson explains, networks can take many forms, because different types of entities can connect in many different ways. You can have a network of computers connected via digital communication protocols. You can have a network of businesses connected by supply chains and cash flows. And you can have a network of people connected by shared interests, family ties, or other bonds of loyalty.

Ferguson observes that humans seem to have an innate proclivity for connecting with each other and forming networks. This has led to the creation of governments, social clubs, and all the other interpersonal networks that collectively make up human society.

Networking in Real Life

Although networks can take non-human forms, such as supply chains or computer systems, all such networks are ultimately controlled by people. Business entities can form networks of supply and distribution, but the businesses are still run by people. Computers can exchange information on a...

The Square and the Tower Summary Three Principles of Hierarchies

As he applies network theory to his analysis of world history, Ferguson makes three key observations: Hierarchies are necessary to maintain social order, additional networks tend to undermine hierarchies, and hierarchies can only deal with a limited amount of complexity.

Hierarchies Maintain Order

Ferguson observes that many important networks, such as governments and corporations, are at least approximately hierarchical in their structure. He suggests that these networks tend to take the form of hierarchies because hierarchies are particularly efficient when it comes to coordinating activities and resolving disputes. He explains that hierarchies facilitate dispute resolution because any two entities that disagree can appeal to their shared superior. But if they don’t have anyone that they both regard as superior, then their differences continue to fester—sometimes until they go to war and the victor emerges as the superior in a new hierarchy.

For this reason, Ferguson goes so far as to say that peace and social order is only possible when there is a clear hierarchy that everyone accepts as legitimate. In most cases, a government is the hierarchy that maintains...

The Square and the Tower Summary Prognosis for the Future

As Ferguson recounts, certain visionaries, social media proponents, and Silicon Valley entrepreneurs have argued that making the world more connected through social media and global commerce will contribute to building a utopian future of world peace and equality. Ferguson contends that this is not the case. He stops short of making specific predictions about what the future does hold, but he identifies a number of trends contradicting the idea that the growth of current networks will precipitate world peace and equality.

Network Growth Doesn’t Bring Peace

First of all, as we’ve discussed, the growth of networks independent of a hierarchical power structure tends to weaken that power structure. Thus, Ferguson says, if the growth of new networks sufficiently undermines the hierarchies that are responsible for maintaining order, the result is anarchy, not peace.

In the case of social media, this scenario is not entirely hypothetical. As Ferguson points out, the proliferation of “fake news” and other inflammatory information passed around social media networks has increased the polarization of opinions and created some unrest in the United States.

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Shortform Exercise: Prepare for the Future

We’ve discussed the universal principles about networks that Ferguson infers from world history and how he thinks they’ll shape the future as social media, global e-commerce, and other online networks continue to grow. Now you’ll have a chance to think through what these principles mean for you and how you can use them to your advantage.

Ferguson stresses that non-hierarchical networks (including family ties, professional associations, conspiracies, social media, and so on) tend to undermine the power of formal hierarchies such as governments or business management chains of command. Which hierarchies are you currently part of or subject to? For each one, state whether you would prefer to increase its power, maintain it as it is, or reduce its power, and briefly explain why.