Continuity and Change in The Early Modern Global Economy European World Week Four Continuity and Change in The Early Modern Global Economy Tim Davies

Lecture Structure Introduction to the world economy, c.1500 Changes in the economy 1500 – 1750… Europe: Population Agriculture Manufacture Trade Historiography The wider world and divergence

European Economies c. 1500 Rural - Peasantry Some developments in trade… Genoa and Venice

View of Genoa in the Sixteenth Century

European Economies c. 1500 Rural - Peasantry Some developments in trade… Genoa and Venice Dominance of Italy and Flanders (Belgium) Large gap between rich and poor societies Limited choice (Musgrave)

The World Beyond Europe Poly-centric Significance of Asia: Islamic world Transnational interaction Mastery of science, navigation and a sophisticated commercial structure

A market scene, Constantinople, sixteenth century

The World Beyond Europe Poly-centric Significance of Asia: Islamic world Transnational interaction Mastery of science, navigation and a sophisticated commercial structure China Widespread literacy, sophisticated economy Overseas exploration (Zheng He)

Hongzhi Emperor (Ming Dynasty), 1470-1505

Zheng He, (1371-1433)

Economic Growth in Europe? Emmanuel Le Roy Ladurie, The Peasants of Languedoc = ‘l’histoire immobile’ Low production ceiling…

Population and Urbanisation Dramatic population rise in some areas … increased European population as a whole… 75 million in 1500 110 – 120 million in 1700 (De Vries, 1984, p. 36) More of this population lived in towns… Rising prices as demand increased Production (agricultural and manufacture) appears to keep pace

Agriculture Two periods of agrarian change: 1500 – 1600 1600 – 1750 More intensive use of land 1600 – 1750 Labour efficiencies Mark Overton

Proto-Industrialisation F. Mendels, 'Proto-industrialisation: the First Phase of the Industrialisation Process', JEconH, 32 (1972) P. Kriedte, H. Medick and J. Schlumbohm, Industrialization before Industrialization (Cambridge, 1981)

Proto-Industrialisation

Proto-Industrialisation Rural labour; often in tandem with agricultural work Production for a market – using urban-based merchants Low rate of technological change Extensive rather than intensive growth Diversification

Manufacture Development in certain industries and areas… Mining Iron Still small scale… Importance of England, Sweden and Holland Although some development elsewhere

Iron industry in Germany, sixteenth century

Mining in Germany, sixteenth century

Antwerp Stock Exchange, 1650

The English and Dutch East India Companies

The Role of the State Mercantilism Sixteenth and seventeenth centuries States and foreign trade Tariffs National banks Bank of Sweden, 1668 Bank of England, 1694

Some Explanations… Population growth => economic activity => sustained economic growth (Postan) Weak peasant farmers, strong capitalist farmers => enclosure and farming innovations => rapid agricultural growth (Brenner) Enhanced protections of property rights => incentive for profitable activity => sustained economic growth (North)

Wallerstein and World Systems Immanuel Wallerstein, The Modern World-System, vol. 1: Capitalist Agriculture and the Origins of the European World Economy in the Sixteenth century (1974) Centre and Periphery…

World Beyond Europe, c.1750 Ottoman Empire China Imperial overstretch? China Regime change No more overseas expansion Changes seem quite marked in comparison to Europe: Foreign trade Power of the state – mercantilism Development of Proto-Industry Divergence?

Stagnation? Not everywhere in Europe experienced such developments. This is important… Economic growth not a normal condition. 0.04 % – 0.08% annually. North/South divide Jan Luiten van Zanden – measuring early modern economic growth

Conclusions A transition to capitalism? Owners of capital rather than owners of land New world of choice and variation… But not everyone included Not yet a unified global economy… Beginnings of divergence?