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After emerging as the victor of the civil wars which brought down the Roman Republic, Augustus became an absolute ruler and the first Roman emperor. Thus, he started the 503-year period of rule by emperors. The concentration of power in the hands of one man rstored a strong central government. This led to the 207-year period of relative political stability in the Roman Empire which historians call the Pax Romana (Roman Peace).

Augustus also created an imperial bureaucracy and replaced the corrupt private tax collectors with well paid government officials, which lead to a fair and non-abusive tax collection system. He also encouraged trade with a tax regime which was not a burden on businesses, and by building infrastructure (roads, bridges, ports and aqueducts). He also promoted trade with Ethiopia, Arabia, Persia, India and China. He reduced the size of the Roman army (which had became oversized), stationed many legions in frontier areas, completed the professionalisation of the army, and created a military treasury, so that the soldiers were paid by the central government. Augustus also promoted important public works in the city of Rome. On his deathbed he said "I've found Rome a city of bricks and I left it a city of marble."

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