Summary
Highlights
Mercantilism was a state-driven economic system in Europe from 1450-1750, emphasizing mineral wealth accumulation (gold, silver) through a favorable balance of trade (more exports than imports). Wealth was seen as a finite pie, with each nation striving for the largest slice, fostering intense competition. Colonies served as closed markets for exports, increasing mineral wealth for the parent country. This was a key driver for maritime empire development.
Joint stock companies were limited liability businesses, often state-chartered, funded by private investors. These companies facilitated imperial expansion by creating a mutual interdependence between the state and merchants. The state granted monopolies and protection, while merchants expanded influence in distant lands. The Dutch East India Company is a prime example, significantly expanding Dutch power in the Indian Ocean. While the Dutch, British, and French used joint stock companies, Spain and Portugal relied more on state-funded ventures, which contributed to their waning influence.
A significant change was the rise of the Atlantic system, moving goods, wealth, and laborers between the Eastern and Western hemispheres after Columbus's voyages. Sugar from Caribbean plantations was a major good, leading to decreased prices and increased demand in Europe. Silver, particularly from Potosí in Bolivia, became the primary form of wealth, circulating through Europe and Asia, fueling trade for goods like silk and porcelain.
Labor in the Atlantic system relied heavily on coerced labor. Spanish powers attempted to force indigenous people to work. The British initially used indentured servants. However, all imperial powers eventually heavily relied on enslaved Africans to support and grow the Atlantic economy. This system was maintained by global silver flow and trade monopolies granted by states.
Despite European dominance, regional markets in Afro-Eurasia continued and expanded. Merchants from the Middle East to Southeast Asia continued to trade in the Indian Ocean, even benefiting from increased traffic. Overland routes like the Silk Roads remained largely controlled by Asian land-based powers like Ming and later Qing China. Peasant and artisan labor also continued and intensified, with peasants producing more agricultural goods for distant markets (e.g., cotton in South Asia) and artisans increasing production of luxury goods for European demand (e.g., silk from China, rugs from the Middle East).
The African slave trade had profound social effects. It led to a gender imbalance in West Africa due to the high demand for male laborers in the Americas. This often resulted in increased polygyny in West African states. In the Americas, enslaved Africans developed Creole languages, a cultural synthesis of European and African languages, and sometimes indigenous languages.
Spanish and Portuguese Christianity significantly impacted South American societies. Missionaries were sent to spread Christianity, acting as instruments for the spread of European language and culture. Success was mixed; many indigenous groups outwardly adopted Christianity but privately maintained their original beliefs, leading to violent retaliation when discovered. Some missionaries, like Bartolomé de las Casas, championed the protection of indigenous Americans, leading to new legislation. Ultimately, slow progress led to a syncretic blending of Christianity with native belief systems. Enslaved Africans also brought their native belief systems, including Islam, leading to further blending of cultures and beliefs.