Historical contextualization is vital to comparative historical analysis in social science. The meaning of important concepts such as rights, popular sovereignty, and the state differs across diverse historical contexts even within a single case such as England. Neglect of such differences makes state formation appear to occur along a linear trajectory and the state–society relationship seem simply confrontational. A comparative historical analysis based upon deep and solid examination of historical contexts reveals hitherto unobserved similarities in state formation between Western Europe and East Asia. It provides a new account of how domestic governance was attained through state–society collaboration when the state's capacity to directly provide public goods remained quite limited. Moreover, it casts new light on understanding the political “great divergence” in the transition from early modern to modern states, as well as offering a novel explanation of the resilience of contemporary authoritarian regimes that legitimate their power mainly through care for domestic welfare.