Pre-Industrial Revolution: Economy, Society, and Absolutism
The Traditional Industry and Manufacturing. Everything needed for daily consumption was often produced within the family. The peasant family was the basic production unit, working the land to produce goods for domestic consumption. In cities, medieval artisan production was controlled by guilds: groups of artisans in the same profession who controlled production volume, techniques, and sales prices. The increasing demand for products encouraged traders and craftsmen to seek new production systems to escape guild control, which hindered increased production and profit margins. Domestic work expanded as craftsmen distributed raw materials and tools to peasant families to produce goods at home. The merchant, typically paying per piece produced, marketed the product in urban or colonial markets. During the 18th century, another model of industrial production emerged: manufacturing. Subsidized by the state or private initiative, these institutions produced luxury goods. Although production remained manual, the novelty was concentrating many hired workers under one roof, a precursor to modern factories.
Inadequate Transport. The communication network was sparse and basic. Roads and highways were the primary system, with animal-drawn carts and coaches providing slow transport with low carrying capacity. Sea and river transport were also used. Sea transport relied on wind power, limiting cargo capacity and speed. River navigation was easier and cheaper; Great Britain’s extensive river system created an extensive network of inland waterways.
Domestic and Colonial Trade. Poor transport resulted in limited trade development. Most trade occurred at fairs, and internal trade was largely local. Regular fairs, where merchants from distant areas traded, existed since ancient times. However, colonial trade broke the commercial isolation of the pre-industrial period. From the 16th century, trade between distant areas increased significantly, opening new shipping routes. Colonial trade stimulated European economies by providing raw materials, creating markets for manufactured goods, and generating profits. The triangular trade, involving Africa, America, and Europe, is a prime example: European manufactured goods were exchanged for slaves in Africa, who were then sold in America in exchange for agricultural products (coffee, cocoa, and snuff). The capital needed to finance these expeditions fueled the growth of credit facilities, trading companies, and financial institutions (banks), leading to more merchants and lenders. Low levels of agricultural specialization also contributed to “little surplus.”
3. Monarchial Absolutism
3.1 The Divine Right Monarchy. The political system of the Old Regime was the absolute monarchy based on divine right; the monarch’s authority came from God. The monarch held all power (legislative, judicial, and executive). Arbitrariness characterized state policy, and no law protected subjects from despotism. Several institutions advised and executed the monarch’s mandates. The main governing body was the council of state, whose members were appointed by the king and divided into sections. Provincial governors enforced laws, with numerous officials responsible for executing orders, administering justice, and collecting taxes. The monarch was only restricted by divine law (laws of each kingdom accepted at coronation). Parliaments, originating in the Middle Ages, represented the three estates and provided a degree of limitation.
3.2 The Beginnings of Parliamentary Democracy. By the 18th century, only Britain and the Netherlands had monarchies where the monarch’s powers were limited by a parliament. England became a parliamentary monarchy, separating executive and legislative powers. An elected parliament voted on laws and controlled government members. However, this parliamentarism was limited; only 15% of the population had voting rights.
4. The Crisis of the Old Regime
4.1 The Spirit of Enlightenment. The Enlightenment, an 18th-century European intellectual movement, inspired the American and French Revolutions. French thinkers emphasized reason as the sole means of understanding the world, challenging the medieval worldview based on theocentrism, revelation, and tradition. Many were deists, rejecting religious superiority and intolerance.
4.2 Criticism of the Old Regime. Enlightenment thinkers proposed a new political and social order based on freedom and equality, forming the basis of liberalism. Montesquieu advocated the separation of powers and judicial independence. Rousseau championed a social contract guaranteeing basic rights and national sovereignty. They promoted social mobility and meritocracy. Physiocrats, such as Quesnay, opposed mercantilism and laid the foundations of economic liberalism.
4.3 Enlightened Despotism. Enlightenment ideas influenced European courts, with some monarchs attempting to combine royal authority with progressive ideas. These monarchs centralized absolutism, streamlined administration, promoted education, and pursued economic modernization. However, the contradictions of this reformism paved the way for liberal revolutions.