18th Century Europe: Economy, Society, and Politics
The International Panorama
Continental Hegemony
Until the mid-17th century, continental hegemony belonged to the House of Austria and the Habsburgs. This dominance was challenged by France and other European states, leading to numerous wars against the Spanish monarchy. These conflicts resulted in Spain’s loss of its European possessions and continental hegemony, which shifted to France under Louis XIV.
Colonial Hegemony
During the 16th century, colonial hegemony belonged to Portugal and Spain. Thanks to geographical discoveries, they created vast colonial empires. However, both countries eventually lost their commercial dominance to the United Provinces, Great Britain, and France.
The Economy of the Old Regime
Agricultural Activities
Agriculture and livestock farming employed over 80% of the population. Agriculture focused on cereals. The peasantry worked on large estates (domains) owned by kings, nobles, and the clergy, particularly in western and southern Europe.
Craft Activities
Craft production focused on manufacturing, particularly textiles and metallurgy, within urban workshops controlled by guilds. In the 17th century, new forms of home-based work emerged, with peasants hired by businessmen to produce goods at home. Manufactures were large workshops where numerous craftsmen worked for the state.
Trade
Internal trade occurred in urban marketplaces, with weekly markets and annual fairs offering less common products like spices and silk. Foreign trade, centered on large port cities, boomed from the mid-15th century onward, fueled by raw materials from new colonial territories.
Mercantilism
Mercantilism held that a country’s wealth resided in its precious metals, and that state intervention in the economy was necessary to increase these holdings.
Society of the Old Regime
The Privileged Classes
The nobility and clergy enjoyed honorific privileges (preferential treatment), economic privileges (exclusive access to certain positions), fiscal privileges (tax exemptions), and legal privileges.
The Non-Privileged Estates
The non-privileged estates comprised over 90% of the population and lacked privileges, bearing the sole obligation of paying taxes.
The International Panorama (18th Century)
Continental Balance
The Peace of Utrecht and the Treaty of Rastatt, following the War of the Spanish Succession, established the continental balance of power. This principle aimed to maintain equilibrium among European powers to prevent wars.
Colonial Hegemony
The struggle for colonial hegemony pitted Great Britain against the United Provinces and France.
Political Transformations
Enlightened Despotism
In the latter half of the 18th century, some monarchs attempted to reconcile absolutism with Enlightenment ideals. Enlightened despotism emerged, a form of government where the monarch retained absolute power but was considered the “first servant of the state.” Enlightened monarchs implemented various reforms, including centralizing administration, unifying laws, improving living conditions for the Third Estate, promoting public education, and intervening in church affairs.
Criticism of Absolutism
While some Enlightenment thinkers accepted enlightened despotism, others criticized it. Influential theorists included Voltaire, Montesquieu, and Rousseau. Voltaire favored a limited monarchy to uphold individual liberties. Montesquieu advocated for the separation of powers (legislative, executive, and judicial). Rousseau asserted that sovereignty resided in the nation or citizenry.
Economic Changes of the 18th Century
Changes in Economic Activities
Agriculture progressed with the introduction of new crops like corn and potatoes. Industrial production increased due to rising demand.
New Economic Policies
Physiocracy, advocated by François Quesnay, posited that land was the primary source of wealth. Economic liberalism, championed by Adam Smith in The Wealth of Nations, argued that labor was the main source of national wealth.
Social Transformations
Social changes affected the nobility, the bourgeoisie, and the military. The nobility lost its original function, while the bourgeoisie gained wealth. Enlightenment thinkers criticized the nobility’s privileges and the clergy’s wealth and size.