The economic history of portugal


Factors in the Rise of Portugal



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2.2. Factors in the Rise of Portugal

2.2.1. Economic and Social Conditions


Portugal was a very small country (89,000 km²) largely isolated from the rest of Europe, lying on the very periphery of south-western Europe, in the Iberian Peninsula. It long remained a basically feudal society that often engaged in warfare with the Muslims who had once occupied their lands and who were still their neighbours to the south and east, and with its Spanish Christian neighbours in Castile to the east.

Beside that, Portugal was facing demographic problems, its small population, no more than a million before the Black Death, was much reduced afterwards, which implied a chronic problem of labour scarcity. It was an impoverished land with few resources, little arable land, and poor-quality soils. Like the Dutch to the north, the Portuguese were forced to turn to the sea, for both fishing and trade.

Its surprising expansion from the end of the 14th century was due chiefly to maritime trade and that maritime trade in return was conditioned by political factors.

2.2.2. General Reasons for the Rise of Portugal


Historical:

As Portugal was a poor country in terms of having poor resources of soil they were depending on the sea. Consequently, the Portuguese were gathering important knowledge of Atlantic winds, weather and tides. Even though nowadays it does not seem to be such a great knowledge it was crucial during medieval times. It has to be noted that during this period many explorations got lost or stuck because of the shipbuilding possibilities, in terms of changing directions, which will be discussed in a separate chapter. The importance of these skills was greatly enhanced by crown sponsorship of Atlantic explorations, research on navigation technology and documentation of maritime experience in the form of route maps with compass bearings and cartography.



Social:

During the Muslim rule, Jewish merchants played a significant role for the commerce. Since they were persecuted in Spain they fled to Portugal providing it with important skills for developing business interest with the Muslim world.



Geographical:

Portugal’s location on the South Atlantic coasts of Europe was a clear strategic benefit when exploring the world and developing marine trade. Its geographical position along the west coast of the Iberian Peninsula allowed the natural development of a seafaring tradition.



Slavery:

While slavery almost disappeared within Europe during the Middle Ages, Portugal was still depending on it due to its demographical problems. The population of Lisbon was made up of 10% Berbers and black slaves, providing Portugal with labor force. Even though it was a minor issue during this time, the importance of slavery grew rapidly during the Colonization period when the demand for labor force almost exploded.



Atlantic Slave Shipments by Portugal and Its Competitors, 1701–1800



2.2.3. Political Factors in the Rise of Portugal


For once Warfare and Civil wars have been beneficial. In 1383-85, a disputed succession had led to a revolt and civil war that freed Portugal from the domination of Castile, which was the largest Christian kingdom in Spain.2 The Battle of Aljubarotta in August 1385, destroyed much of the old nobility and established a new dynasty under João I of Aviz (1385-1433). During this time, the new Aviz dynasty developed very close to Lisbon's small mercantile bourgeoisie.

Its monarchy, which imposed a political and social unity rarely to be found elsewhere in Western Europe outside of England – and certainly not in neighboring Spain for another century, was the critical factor that made Portugal a forerunner in exploration. Its kings encouraged maritime trade and shipping ventures and the Crown gave every possible incentive by implementing tax privileges and insurance funds to protect the investments of ship owners and builders. Often, members of the aristocracy were also investors such as Prince Henry the Navigator. The aristocracy used their political position to facilitate the Crown's granting of royal sanctions that regulated the voyages of exploration made by the merchant community. Portugal was fortunate to have kings who recognised the kingdom's dependency on overseas trade and assisted in its expansion in every possible way. The stability of the monarchy was essential to the establishment of sustainable economic growth, thus the stability of the Portuguese monarchy gave the kingdom a seventy-year head start over the Spanish who were distracted by a civil war and the Reconquista of Granada. It was not until Columbus' voyage in 1492 that the Spanish were finally in a position to challenge Portugal's predominance in exploration.

In 1386, the new king, João I, secured a political alliance with England: the Treaty of Windsor, directed against Castile. This Anglo-Portuguese alliance was the turning point for a growing maritime commerce, based on Portugal's few resources. During this time, the chief domestic trading resources with which Portugal commenced northern trade were the following: wine, olive oil, citrus fruits, cork, bay salt and salted cod fish – caught in the Grand Banks.


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