Economic history of Europe (1000 AD – present)
This article covers the economic history of Europe from about 1000 AD to the present. For the context, see History of Europe.
Middle Ages
Agriculture
Early in the first millennium, improvements in technique and technology began to emerge. Monasteries spread throughout Europe and became important centers for the collection of knowledge related to agriculture and forestry. The manorial system, which existed under different names throughout Europe and Asia, allowed large landowners significant control over both their land and its laborers, in the form of peasants or serfs. There were exchanges with distant regions mediated through the Arab world. Arabs introduced summer irrigation to Europe. Population continued to increase along with land use.By 900 AD in Europe, developments in iron smelting allowed for increased production, leading to developments in the production of farm tools such as ploughs, hand tools and horse shoes. The plough was significantly improved, developing into the mouldboard plough, capable of turning over the heavy, wet soils of northern Europe. This led to the clearing of forests in that area and a significant increase in agricultural production, which in turn led to an increase in population. Farmers in Europe moved from a two field crop rotation to a three field crop rotation in which one field of three was left fallow every year. This resulted in increased productivity and nutrition, as the change in rotations led to different crops being planted, including legumes, such as peas, lentils and beans. Inventions such as improved horse harnesses and the whippletree also changed methods of cultivation.
Watermills were initially developed by the Romans, but were improved throughout the Middle Ages, along with windmills, and were provided the power needed to grind grains into flour, cut wood and process flax and wool, and irrigate fields.
Field crops included wheat, rye, barley and oats; they were used for bread and animal fodder. Peas, beans, and vetches became common from the 13th century onward as food and as a fodder crop for animals; they also had nitrogen-fixation fertilizing properties. Crop yields peaked in the 13th century, and stayed more or less steady until the 18th century. Although the limitations of medieval farming were once thought to have provided a ceiling for the population growth in the Middle Ages, recent studies have shown that the technology of medieval agriculture was always sufficient for the needs of the people under normal circumstances, and that it was only during exceptionally harsh times, such as the terrible weather of 1315–17, that the needs of the population could not be met.
Famines and plagues
There were episodes of famines, and also of deadly epidemics. Soil exhaustion, overpopulation, wars, diseases and climate change caused hundreds of famines in medieval Europe. Around 1300, centuries of European prosperity and growth came to a halt. Famines such as Great Famine of 1315–1317 slowly weakened the populace. Few people died of starvation because the weakest had already succumbed to a routine disease they otherwise would have survived. A plague like the Black Death killed its victims in one locality in a matter of days or even hours, reducing the population of some areas by half as many survivors fled. Kishlansky reports:Depopulation caused labor to become scarcer; the survivors were better paid and peasants could drop some of the burdens of feudalism. There was also social unrest; France and England experienced serious peasant risings: the Jacquerie, the Peasants' Revolt. These events have been called the Crisis of the Late Middle Ages.
Technology
A major technological advance came in long-distance navigation, from the 8th century to the 12th century. Viking raids and the Crusader invasions of the Middle East led to the diffusion of and refinement of technology instrumental to overseas travel. People made improvements in ships, particularly the longship. The astrolabe, for navigation, greatly aided long-distance travel over the seas. The improvements in travel in turn increased trade and the diffusion of consumer items.Crafts and urban growth
From the 11th century to the 13th century, farmers and small-scale producers of crafts increasingly met in towns to trade their goods. They met in either seasonal trade fairs or they traded in an ongoing basis. Craft associations called guilds fostered the development of skills and the local growth of trade in particular goods. Over the course of the centuries of this period towns grew in size and number, first in a core in England, Flanders, France, Germany and northern Italy.Spinning, weaving, sewing and cutting were considered women's work until the mid-12th century when men began taking over some positions with more sophisticated industrial structures and technologies. In the large cities of Northern France, centers of medieval textile production, the shift to male dominated production started even earlier, in the 11th century, when the vertical loom was replaced by the horizontal treadle loom. Especially the guilds of furriers, tailors, dyers and tapestry makers were dominated by men. Some women did participate in guilds, but it was rare. Most commercial roles were occupied by men, while women were preferred for positions within households. When women were accepted for guild membership it was usually as a second-rank member.
The economic system of this era was merchant capitalism. The core of this system was in merchant houses, backed by financiers acting as intermediaries between simple commodity producers. This system continued until it was supplanted by industrial capitalism in the 18th century.
Economic activity over a broad geographic range began to intensify in both northern and southern Europe in the 13th century.
Trade flourished in Italy, particularly by the 13th century. Leading the trade in Mediterranean Europe were traders from the port cities of Genoa and Venice. The wealth generated in Italy fueled the Italian Renaissance.
Hanseatic League
In cities linked to the North Sea and the Baltic Sea a trade monopoly developed in the Hanseatic League. This facilitated the growth of trade among cities in close proximity to these two seas.Long-distance trade in the Baltic intensified, as the major trading towns came together in the Hanseatic League, under the leadership of Lübeck.
The League was a business alliance of trading cities and their guilds that dominated trade along the coast of Northern Europe and flourished from the 1200 to 1500, and continued with lesser importance after that. The chief cities were Cologne on the Rhine River, Hamburg and Bremen on the North Sea, and Lübeck on the Baltic.
The Hanseatic cities each had its own legal system and a degree of political autonomy.
The Hanseatic League was an alliance of North German and Baltic cities during the Middle Ages. The Hanseatic League was founded for the purpose of joining forces for promoting mercantile interests, defensive strength and political influence. By the 14th century, the Hanseatic League held a near-monopoly on trade in the Baltic, especially with Novgorod and Scandinavia.
France
The collapse of the Roman Empire unlinked the French economy from Europe. Town life and trade declined and society became based on the self-sufficient manor. Some international trade existed for luxury goods such as silk, papyrus, and silver; it was handled by foreign merchants such as the Radanites.Agricultural output began to increase in the Carolingian age as a result of the arrival of new crops, improvements in agricultural production, and good weather conditions. However, this did not lead to the revival of urban life; in fact, urban activity further declined in the Carolingian era as a result of civil war, Arab raids, and Viking invasions.. The High Middle Ages saw a continuation of the agricultural boom of the Carolingian age. In addition, urban life grew during this period; Paris expanded dramatically.
The 13 decades from 1335 to 1450 spawned a series of economic catastrophes, with bad harvests, famines, plagues and wars that overwhelmed four generations of Frenchmen. The population had expanded, making the food supply more precarious. The Black Death of 1347 was echoed by several smaller plagues at 15 year intervals. The French and English armies during the Hundred Years War marched back and forth across the land; they did not massacre civilians, but they drained the food supply, disrupted agriculture and trade, and left disease and famine in their wake. Royal authority weakened, as local nobles became strongmen fighting their neighbors for control of the local region. France's population plunged from 17 million, down to 12 million in 130 years. Finally, starting in the 1450s, a long cycle of recuperation began.