Economic+Developments

Masha Kremliovsky


 * Prompt:** "In the 15th century, European society was still centered on the Mediterranean region, but by the end of the 17th century, the focus of Europe had shifted north." Identify and analyze the economic developments between 1450 and 1700 that helped bring about this shift.


 * Thesis:** The focus of economic Europe shifted from Florence in the fifteenth century to Amsterdam in the seventeenth century, as economic superiority shifted from Medici rule in the Mediterranean region to the United Provinces of the Netherlands in the north.

__Mediterranean Focus__ __Northern Focus__
 * Outline:**
 * richness of Italy - Rome and Florence major cities in Europe
 * Medici rule - House of Medici was greatest banking house in Europe
 * branches in Venice, Milan, Rome, Avignon, Bruges, London, Lyons (most of these cities near Mediterranean region, rather than Northern)
 * had controlling interests in industrial enterprises for wool, silk, and the mining of alum
 * suffered a sudden decline due to poor leadership and a series of bad loans
 * Flanders, Bruges, had been the economic crossroads of Europe - served as meeting place between Hanseatic merchants and Flanders Fleet of Venice
 * declined in fifteenth century
 * Hanseatic League also declined with it - proved increasingly unable to compete with developing larger territorial states
 * better weapons and technology, while trade helped the development of industries
 * the United Provinces of the Netherlands were mostly Atlantic provinces
 * "golden age" of Dutch Republic as the United Provinces held center stage as one of Europe's great powers
 * shores made sea trade easily possible
 * Amsterdam merchants possessed vast fleet of ships, many used for North Sea herring catch
 * Dutch invention of the fluyt, a shallow-draft ship of large capacity, made large quantitative transportations easier; also large ships for sea voyages
 * origins of German Hanse League from the North - trading routes already developed
 * Spain, Portugal, and France - naval stores; Sweden - copper and iron; main providers of salt, woollens, wines
 * Netherlands were able to remain in central power until the start of the eighteenth century, when they started to have major debt
 * Exchange Bank of Amsterdam - financial importance helped economic prosperity as well

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