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This document provides a historical overview of the Middle Ages, focusing on the economic and social transformations during that era. It examines the impact of the barbarian invasions, the emergence of Christianity, and the development of the feudal system, including social order & conflict.
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# 1. Edad Media The transition from Antiquity to the Middle Ages is marked by profound changes in laws, customs, and political and social institutions among the peoples. The Early Middle Ages take place from the fall of the Western Roman Empire (V-X) through the Late Middle Ages (X-XV) until the fa...
# 1. Edad Media The transition from Antiquity to the Middle Ages is marked by profound changes in laws, customs, and political and social institutions among the peoples. The Early Middle Ages take place from the fall of the Western Roman Empire (V-X) through the Late Middle Ages (X-XV) until the fall of the Byzantine Empire by the Ottomans and the discovery of America. ## 1.1. Economía y Comercio in the Early Middle Ages The Middle Ages were always marked by poverty, as many dark deeds took place. However, during this period, signs of future economic recovery emerged. Among the causes are events that are considered vehicles of change that are yet to come; these are significant starting points: ### “The Invasion of the Barbarians” This was the end of the Roman Empire, and the arrival of the barbarians from Northeast Europe in the 5th century. It meant total violence and destruction of cities in an uncontrolled manner from North and Northeast Europe. These acts involved an intercultural encounter between a cultured and an uncultivated people, generating benefits for everything new that was being discovered, including becoming aware of new needs that were previously unknown, which form the basis of a new range of goods and services. This event also resulted in the regeneration of both the invading and the conquered peoples. The invading peoples were more likely to teach other peoples because knowledge is more easily transmitted to someone with little culture. This regeneration opens up a new opportunity for business and the introduction of new values. ### “The Appearance of Christianity” During this period, the barbarian peoples received principles such as the dignity of humankind, the value of work, the elevation of their savage condition, and above all, equality and fraternity. These principles would eventually become the foundations of future commercial relations: - **Equality:** Conditions must be the same for all merchants. They must be aware of the same level of legal support when setting up a business. - **Fraternity:** They must collaborate among different countries and not face each other as enemies because, if they all cooperate in carrying out a commercialization, everyone wins. Religious institutions (monasteries and abbeys) played a fundamental role in the development of trade by integrating values into the peoples. The Church began with the first economic studies because they were the only ones privileged with access to information and could manipulate it to control it. The first theologians wrote the first economic terms. In addition, the Church had its own role in the economy with its own businesses, offering assistance to merchants on land trade routes. These routes were drawn depending on where the churches were located. ## “The Feudal System” The feudal system was a political and economic organizational system that provided orders, protection, guarantees, and rules to ensure the economy could function. It originated from the need to defend against barbarian invasions. A fief was a military-based institution rooted in landownership, despotism, and the exercise of sovereignty by the nobles in their lordships. The kings organized the kingdom into plots of land and gave them to vassals (knights of lower rank) in exchange for loyalty, military protection, administration, and maintenance. Those nobles who felt incapable did the same with their vassals. This system was detrimental to trade because it was based on the principle of inheritance. That is, the fief was passed down through generations, and no one thought of improving the conditions of the land, peasants, and labor, but instead limited themselves to receiving the harvest. However, the feudal system was also a driver of social change due to its intolerance of servility, which eventually created an order. Similarly, the more oppressed the peasants felt, the more they fought for their rights, which created a slight social awareness among the peasantry, leading to a social revolution. ### "The Crusades" These religious wars brought profound changes to the social order. Faith pushed many nobles to undertake a religious-military expedition against the Muslims. This revived communication between the West and the East, which revived the Black Sea and the Mediterranean. These new routes created a need for new ships, developing the maritime industry. These routes made it possible to create maritime maps, leading navigation to become secure and new maritime trade routes to appear, improving trade. Ownership of land (the only factor of production) was a privilege of the privileged classes. However, many of them wished to participate in the Crusades due to their entrepreneurial spirit and the desire to learn about the world. Therefore, the privileged classes began selling their land to the peasants, and thus landownership was circulated for the first time. Some peasants became landowners, began to invest, and were thus able to enter the market. This represented a fundamental historical shift. With all the aforementioned, the splendor of commercial traffic was recovered, although for a long time it was a "commission" trade, which is established through an agreement between two merchants. The business is entrusted to a partner who handles transporting the product to more distant markets, selling it, and setting a price, etc. Then, the profits are divided between the partners. This system was beneficial for those wealthy individuals who could not undertake business ventures, such as widows, who, being women, could not do any work at that time. ### "An Optimal Climate” In the Early Middle Ages, there were exceptionally mild climatic conditions across almost all of Europe, so that, without any significant changes in the seasons, there were no waiting periods for the land to rest and produce. Crops could thus be cultivated throughout the year, increasing agricultural productivity and the variety of products. As a result, there was an increase in production and population. ## 1.2. Economic Recovery in the Late Middle Ages The relative political and social stability provided the security necessary for the development of long-distance trade, which led to the establishment of new trade routes crossing the continent from one end to the other. This first manifestation of trade revived was maritime, with two main axes: - **Mediterranean and the Levant:** Latin states in the Mediterranean region acted as a connection between West and East, with the central role of Italian cities such as Genoa, Pisa, and Venice. - **Atlantic and the Baltic:** The Baltic region benefited port enclaves in Castile, southwest France, England, the Netherlands in the Sea of Poniente, and with a central role for German cities. ## “Rural Society” Agriculture was the engine of economic and commercial recovery since the structure of the economic system was agriculture. The predominant political-territorial system was feudalism as a system of administration and maintenance of order. The manor or fief. In this society there is no possibility of social mobility; that is, whoever is born poor will be poor regardless of any factor. The “complexity” of society in this period generated many struggles and conflicts, giving the Middle Ages its reputation for violence and darkness. Rural society was divided into three orders, each with its obligations and a different social class: - **Lords:** They are responsible for maintaining order. - **Clergy:** They belong to the Church and own land, businesses, important buildings (such as the church itself), and rights (such as the right to education or exemption from taxes). They are divided into regular clergy (who deal with religious matters) and secular clergy (who deal with economic or social topics). - **Peasants:** They work the land. ## “The Rebirth of Urban Life” Population growth and increased agricultural productivity encouraged many peasants to emigrate to urban centers where they took up new activities such as trade, reviving urban life. As a result, urban centers were expanding with a new life, with more opportunities to engage in trade, selling agricultural products and providing an outlet for excess produce. All of this created a reciprocal influence between rural and urban life, as the countryside supplied extra people to populate the cities. This increase in population led to increased consumption, providing an outlet for agricultural products in the market, making trade the primary activity. These new needs, combined with the pace of life in the cities, meant that the feudal hierarchy could no longer be imposed. Merchants and businessmen began claiming freedom and calling for the abolition of the feudal hierarchy to allow trade to reach other continents, causing the system to collapse. Merchants began to form associations, even with aristocrats who lent money. From these associations emerged municipal governments that addressed public issues, protected common interests, and resolved disputes and lawsuits. ## “Trade Routes and Techniques” Maritime trade routes gained considerable strength. The most profitable route connected Italy with the East, as the Italian cities had the best commercial minds and maritime technologies, as well as a privileged and strategic position in the Mediterranean. Venice held a privileged position, which is why it was always involved in struggles against Pisa and Genoa for control, one from the other. Another route was the one that connected directly from China to the Mongol Empire, known as the Silk Road. Thanks to this route, detailed merchants' guides such as Marco Polo's journal were discovered. The importance of the North Seas also grew, dominated by the large commercial cities organized by the Hanseatic League. Trade began with a land route and, later, there was a shift to maritime trade, boarding a ship or joining other partners to undertake commercial voyages across rivers. However, land trade did not fall behind; its development was driven by the fact that, before advances in navigation, maritime routes were dangerous, and land routes were protected by the feudal lords (in exchange for tolls) or by religious organizations. One of the most important and advanced commercial centers of the time was represented by the Champagne Fairs in France, where merchants often met for various reasons, such as the protection of the counts, the ease of negotiations, special courts, the geographical position (north of Italy and the Netherlands), and practices that were introduced such as letters of credit. A letter of credit was a "contract" that guaranteed that the debtor would pay the creditor a sum of money on a particular date and in a particular place. It did not have legal backing; that is, no law existed (until the French Revolution) that could penalize someone who did not comply with the terms, which is why trust and respect emerged. Merchants were known for their good reputation. No one could defraud anyone because everyone had to make a profit, and the better this system worked, the more forms of business existed. ## “The Commenda” The commenda was used for maritime trade in the Middle Ages, where the merchant (the partner who provided the capital) remained in the port of origin, and the agent carried out the trade by making trips. Thus, those who had financial capital but could not perform the service (such as widows and the elderly) could also participate in trade. - It involved a single round trip. - The profits were divided between them: three-quarters for the merchant and one-quarter for the agent. - The active partner (agent) could make autonomous decisions. - One important precedent for the commenda was the mechanism of representation, introduced by the Romans. ## “La vera societá” This was a union of several partners who operated in many cities across Europe. They dealt with financial transactions, had branches, wagons, mules, ships, and even owned mines with their own suppliers, so they had direct access to raw materials. Furthermore, they introduced the tow trade. Thanks to everything mentioned above, there was a need for a new financial entity to manage money, make loans, etc. That is why banks emerged, the first deposit banks in Genoa and Venice. During this period, the merchant is the protagonist. Another fundamental figure was the money changer: - The same merchants were expert money changers because they were aware of the different currencies due to their many trips. Furthermore, a new currency was introduced at every fair. - The merchant was very versatile and was a money changer and a commission agent; skilled bankers emerged from their ranks. - Money changers were the target of harsh attacks from churches because they were known as the “sinners of the time” because they had absolute power to defraud other merchants when making currency exchanges. That is, they could claim that the currency exchange rate was higher and keep the difference. ## 1.3. Crisis of the Medieval Economy Starting in the 14th century, a series of unfortunate events damaged all sectors of the medieval economy: - **The Black Death:** The deadliest pandemic known to mankind that swept across Europe, killing almost half the population. There were outbreaks every five years because without medical advancements, vaccines, and proper hygiene practices, it was impossible to resist the phenomenon. - **Violent Civil Wars and Wars Between Nations (The Hundred Years' War Between France and England):** There was a string of conflicts within countries or between countries, causing loss of human life. New sovereigns with a lot of ambition occupied new lands to advance their trade. Colonialism caused many wars that led to high mortality rates. - **The Fall of the Byzantine Empire at the Hands of the Ottoman Turks:** The beginning of this event is found in the era of the Christian crusades, specifically, the Fourth Crusade. The route to the East through Eastern Europe was closed by the Turks. - **Extremely Cold Climate:** There was evident damage to crops and the health of entire populations, destroying all the benefits from optimal weather conditions. This would have a significant impact on the reduced productivity of farmland, leading to a shortage of agricultural products, which in turn would cause prices for these products to rise and wages to drop because labor was worth less. - **Congestion in Cities and Towns:** The population of cities had already increased significantly due to relocations from areas with good weather conditions. However, even more people moved to the cities because there were no crops in the countryside. This resulted in congestion in cities and towns. Because of the cold climate, people had to heat their homes more. The need for firewood then led to large-scale deforestation, harming the environmental balance and further reducing the productivity of farmland. - **Increased Social Tensions:** When, across the board, laborers in the countryside began to suffer injustices because prices rose and wages fell. The effects of these events led to a decrease in population and a fundamental shift in trends: - **Lower Prices and Higher Wages:** Due to a significant drop in production, there was also a significant drop in the demand for products. Combined with the scarcity of labor, this meant that peasants set the work conditions. Employers had to accept these conditions to have workers. - **Changes in the Economic Conditions of Peasants:** For the first time, a mass of laborers achieved liberation from serfdom. They had access to more land for grazing because more people had less land to work, and their nutrition improved. This marked the beginning of the 15th century, a time of economic and social development in Western Europe. # 2. The Modern Era The two events that mark the beginning and end of the Modern Era are the conquest of Constantinople (1453) and the French Revolution (1789). The processes of the Middle Ages do not disappear but rather continue to evolve. ## 2.1. Transition from the Middle Ages ### "Social Changes" The economic prosperity that marked the beginning of the 15th century saw important social changes: - **Predominance of Merchants:** The position of merchants is increasingly defined, as they are in charge, set the rules of trade, and dictate the standards of civil coexistence. - **Development of Cities:** Cities become the headquarters or “offices” of trade. This leads to the development of major cities: Venice, Paris, London, Lisbon, Amsterdam. These cities take control of trade routes. - **Rise of Urban Society:** This is a characteristic of the Modern Era, with less emphasis on agriculture. It does not replace agriculture with urbanization but rather signifies coexistence with those practices. - **Division of Society:** Society remains divided into social groups or classes, with no possibility of social mobility. Society is divided into: