This book is a compilation of lecture notes from the Liberal Arts Education course "China and the World: Historical Perspectives" of the School of Economics and Management of Tsinghua University. The author describes the profound concepts concerning state governance in a clear and compelling style from the perspective of economics. Topics of this book include nations and states formation, power balance and talent selection, and factors contributing to the rising Europe, etc. The book aims to dissect the dynamics of human society through its significant characteristics and historical processes, thereby revealing the humanity’s efforts and achievements in the pursuit of good governance over the past three millennia.