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Institutions and Economic Development in Early Modern Central Europe
Published online by Cambridge University Press: 12 February 2009
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Institutions and economies underwent profound changes between 1500 and 1800 in most parts of Europe. Differences among societies decreased in some ways, but markedly increased in others. Do these changes and these variations tell us anything about the relationship between social organisation and economic well-being? This is a very wide question, and even the qualified ‘yes’ with which I will answer it, though based on the detailed empirical research of some hundreds of local studies undertaken in the past few decades, is far from definitive. Many of these studies were inspired by an influential set of hypotheses, known as the ‘theory of proto-industrialisation’. While this theory has been enormously fruitful, its conclusions about European economic and social development are no longer tenable. This paper offers an alternative interpretation of the evidence now available about proto-industrialisation in different European societies, and explores its implications by investigating one region of Central Europe between 1580 and about 1800.
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References
1 I should like to thank Jeremy Edwards, Emma Rothschild, Paul Seabright, Keith Wrightson and Tony Wrigley, who were so kind as to read and comment upon the manuscript of this paper; and André Carus, who read several drafts and made a large number of very stimulating suggestions.
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52 See the quantitative results presented in Ogilvie, Württemberg, chapter 7.
53 The setting and enforcement of output quotas, and evidence of compliance with them, is discussed in detail in Ogilvie, Württemberg, chapter 8.
54 The position of widows (and other women) in the Black Forest worsted industry is investigated in detail in Ogilvie, ‘Women's work’; for an overview of the issues, see Ogilvie, ‘Women and proto-industrialisation’.
55 See the detailed demographic results presented in Ogilvie, Württemberg, chapter 9; for a preliminary overview of some of these, see Ogilvie, ‘Coming of age’; Ogilvie, ‘Women and proto-industrialisation’.
56 Piece-rate ceilings for the spinners were set in all the worsted weavers' ordinances and much ancillary legislation from 1589 onward: ‘Engelsatt-Weberordnung, vfgericht in Ao 1589’, reprinted in Troeltsch, , Zeughandlungshompagnie, 431–4, here 433Google Scholar; ‘Engel-sattweberordunung in A. 1608 [actually 1611] vfgerichtet’, reprinted in Troeltsch, Zeughandlungskompagnie, 435–53, here 446; ‘Engelsattweberordunung in A. 1608 [actually 1611] vfgerichtet’, emendations of 1654, reprinted in Troeltsch, Zeughandlwtgskompagnie, 435–53, here 446 footnote 2; ‘Zeugmacher-Ordnung von 24 März 1686’, in Vollständige, historisch und kritisch bearbeitete Sammlung der württembergische Gesetze 19 vols. (Stuttgart, 1828–1851) ed. Reyscher, A. L. [hereafter Sammlung, ed. Reyscher, ], vol. 13, 615–40, here 626Google Scholar; ‘Rescript in Betreff des Zeugmachergewerbs’ (8 Sep 1736), in ibid., vol. 14, 178ff.
57 Economists studying modern less developed societies draw a distinction between ‘formal’ (or ‘regulated’) markets, in which transactions are open, legal and enforceable by the state or other social institutions; and ‘informal’ (or ‘black’) markets, in which transactions do take place, but are secret, illegal and unenforceable because they are not endorsed (or are explicitly prohbited) by the legitimate institutions of the society. As many studies of less developed economies show, the development potential of the ‘informal sector’ derives from its ability to evade costly formal-sector regulations. However, the ‘informal sector’ is ultimately constricted by high transactions costs, high information costs, high risks, low worker protection, and high costs of capital (resulting in sub-optimal levels of investment), all of which result from its lack of legitimacy and its inability to enforce contracts. On this, see, for instance, Todaro, M. P., Economic development in the Third World (Harlow, 1989), 270–1Google Scholar.
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62 Troeltsch, , Zeughandlungkompagnie, 101, 125–31Google Scholar; the effects of the rigid negotiations of the ‘Moderation’ (the regime of prices and quotas for raw wool and cloths periodically re-negotiated between company and guilds, under the supervision of the district-level ducal bureaucrats, and subsequently enforced by law) are discussed in detail in Ogilvie, Württemberg, chapter 8.
63 Troeltsch, , Zeughandlungkompagnie, 8, 72, 110Google Scholar; the restriction was introduced in Rezesse of 1665 and 1674, and incorporated into the ordinance for the industry in 1686: ‘Recess zwischen denen Färbern vnd Knappen zu Callw de dato 17. Augusti 1665’, reprinted in Troeltsch, Zeughandlungskompagnie, 465–71; ‘Recess Zwischen der Färbern Compagnie und Knappshaft d. Stuttgart d. 23.ten Apr. A. 1674’, reprinted in Troeltsch, Zeughandlungskompagnie, 471–8; ‘Zeugmacher-Ordnung’ (24 Mar 1686), in Sammlung, ed. Reyscher, , vol. 13, 615ffGoogle Scholar.
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66 For an example from 1709, see WHSA A573 Bü 862, account-book of the worsted weavers' guild of the district of Wildberg for the year Apr. 1709–Apr. 1710, fol 26r–26v; for an example from the 1770s, see Troeltsch, , Zeughandlungskompagnie, 130–1Google Scholar.
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88 As is shown, for example, in Tipton, , Regional variations, 30, 59, 69, 71Google Scholar, which shows how ubiquitous a characteristic a feature of German industrialization in the nineteenth century were state monopolies and privileges issued to favoured interest groups.
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