"Capitalism in Europe Series" - Part 1: The Context

Context of development of capitalism in Europe 

The context of economic and financial transformation through the gradual development of capitalism that began in Europe because of the feudal system crisis in the fourteenth century, the instances that led to the meticulous flourishment of this system which only expanded until the Industrial Revolution. 

Chris Harman, the late British revolutionary Marxist, made one of the most credible endeavors to situate capitalism's growth within the perspective of world history."Capitalism is not a Western European phenomenon," Harman asserted. Many countries have seen a shift toward capitalism as a result of the accumulation of productive forces in Europe, Asia, and Africa over the centuries. These trends peaked earlier in Western Europe than elsewhere for circumstantial historical reasons, and once they did, further movement towards capitalism across Europe was hindered once capitalism ignited European imperialism. According to Marx, capitalism first developed in Italy, and it dominated the European economy of the late Middle Ages. Historians have conducted substantial research and discussion on the methodologies through which capitalism originated, progressed, and flourished. 

Initially, Europe had practices of a feudal mode of production, therefore, based on the lord’s ownership of the land and incomplete or partial ownership of the peasants and serfs living on the land. The dependent peasants farmed and ran local economies on the feudal lords' estates. The tenant was a protégé of the lord, which meant that she or he was obligated to the lord by a distinctive oath of obedience. Because of the dynamic changes in the agricultural sector following feudalism, an agrarian revolution revolutionized the production structure. The evolution was accompanied by the use of science and technology.

Agricultural production in Britain was significantly lower before the agrarian revolution. The low agricultural production was caused in part by land tenure. Agriculture's mechanization and rationalization was significant aspect of the Agricultural Revolution. This revolution changed the mode and relation of production of a previous feudal society because of which the agricultural sector, along with the technological and manufacturing sectors developed to support it. It has made a huge contribution to the origination of capitalism in Europe.  The rise of population and the increasing demand for wools led to changes in agricultural production. Farmers accumulated capital in industries, which they invested in industries and trade. This transformation in agriculture provided raw materials required by industries Wool was an essential raw resource offered by the agrarian revolution to textile businesses. Small-scale or peasant production likewise came to an end with the agricultural revolution. Merchants accumulated capital in industries, which they invested in industries and trade Thus, capitalist farmers have taken over peasant production.

The Agricultural Revolution proved to be a pivotal point, allowing the country's population to transcend previous peaks and support the country's ascension to economic preeminence, eventually leading to capitalism.

The English revolution led to the formation of the industrial revolution in Britain. The revolution swept away all forms of the king’s absolution and dictatorship in England and brought a realistic constitutional monarchy under the full practice of human rights. This led to the development of a single currency, which made it possible for Britain to have a uniform currency all over the country, facilitating the selling and buying of manufactured goods.

French Revolution led to the elimination of feudalism on August 4, 1789. Led to industrialization. The catholic church, Louis XVI, and his wife Marrus Antonente have been swept away. Free enterprises, as well as trade, were allowed to encourage to boost up economic production. It led to the establishment of the agrarian revolution and the abolition of subsistence agriculture.

Demographic Revolution was the demographic revolution that fueled the industrial revolution, which led to the emergence of capitalism as we know it today. As a result of the population growth, Europe's trading activities were boosted by the availability of a ready market. As a result, people began to forgo subsistence agriculture in favor of more lucrative economic pursuits. The high population growth contributed to the demise of feudalism because feudal relations could not keep up with the population rise.

On this, Marx says that it "enriched [the farmers] just as quickly as it forced the rural poverty, The growth of agriculture fostered mercantilism and entrepreneurial trade. Regarding the emergence of capitalism, Marx emphasized commercial capital and the role of the upper class, beginning with the story of primitive accumulation.  On the contrary, according to Weber, capitalism arose in Northern Europe when the Protestant ethic led many people to participate in secular work. The Protestant labor ethic was a driving force behind modern capitalism's unplanned and uncoordinated emergence. Moreover, Dobb argued that feudalism's decline was due to an internal rather than an external prime mover - but what about feudalism as a mode of production?

Written By 

Sadia Ahmmed