Polish-Lithuanian Commonwealth: Encyclopedia II - Polish-Lithuanian Commonwealth - Economy

Polish-Lithuanian Commonwealth - Economy

The economy of the Commonwealth was dominated by feudal agriculture based on exploitation of agricultural workforce (serfs). Typically a nobleman's landholding comprised a folwark, a large farm worked by serfs to produce surpluses for internal and external trade. The peasantry's situation worsened from the late 17th century on, when the landed szlachta sought to compensate for falling grain prices by increasing the peasants' workload, thus leading to the creation of second serfdom, a phenomena common throughout contemporary Eastern Europe.

The Commonwealth's preoccupation with agriculture, coupled with the szlachta's dominance over the bourgeoisie, resulted in a fairly slow process of urbanization and thus a fairly slow development of industries. While similar conflicts among social classes may be found all over Europe, nowhere were the nobility as dominant at the time as in the Polish-Lithuanian Commonwealth. There is, however, much debate among historians as to which processes most affected those developments, since until the wars and crises of the mid-17th century the cities of the Commonwealth had not markedly lagged in size and wealth behind their western counterparts. The Commonwealth did have numerous towns and cities, commonly founded on Magdeburg rights. Some of the largest trade fairs in the Commonwealth were held at Lublin. See the geography section, below, for a list of major cities in the Commonwealth (commonly capitals of voivodships).

Although the Commonwealth was Europe's largest grain producer, the bulk of her grain was consumed domestically. Estimated grain consumption in the Polish Crown (Poland proper) and Prussia in 1560–70 was some 113,000 tons of wheat (or 226,000 łaszt (a łaszt, or "last," being a large bulk measure; in the case of grain, about half a ton). Average yearly production of grain in the Commonwealth in the 16th century was 120,000 tons, 6% of which was exported, while cities consumed some 19% and the remainder was consumed by the villages. The exports probably satisfied about 2% of the demand for grain in Western Europe, feeding 750,000 people there. Commonwealth grain achieved far more importance in poor crop years, as in the early 1590s and the 1620s, when governments throughout southern Europe arranged for large grain imports to cover shortfalls in their jurisdictions.

Still, grain was the largest export commodity of the Commonwealth. The owner of a folwark usually signed a contract with merchants of Gdansk (German Danzig), who controlled 80% of this inland trade, to ship the grain north to that seaport on the Baltic Sea. Many rivers in the Commonwealth were used for shipping purposes: the Vistula, Pilica, Western Bug, San, Nida, Wieprz, Niemen. The rivers had relatively developed infrastructure, with river ports and granaries. Most of the river shipping moved north, southward transport being less profitable, and barges and rafts were often sold off in Gdańsk for lumber.

From Gdańsk, ships, mostly from the Netherlands and Flanders, carried the grain to ports such as Antwerp and Amsterdam. Gdańsk ships accounted for only 2–10% of this maritime trade. Besides grain, other seaborne exports included lumber and wood-related products such as tar and ash.

By land routes, the Commonwealth exported hides, furs, hemp, cotton (mostly from Wielkopolska) and linen to the German lands of the Holy Roman Empire, including cities like Leipzig and Nuremberg. Large herds (of around 50,000 head) of cattle were driven south through Silesia.

The Commonwealth imported spices, luxury goods, clothing, fish, beer and industrial products like steel and tools. A few riverboats carried south imports from Gdańsk like wine, fruit, spices and herring. Somewhere between the 16th and 17th centuries, the Commonwealth's trade balance shifted from positive to negative.

With the advent of the Age of Exploration, many old trading routes such as the Amber Road lost importance as new ones were created. Poland's importance as a caravan route between Asia and Europe diminished, while new local trading routes were created between the Commonwealth and Russia. But even with improvements in shipping technology the Commonwealth remained an important link between Occident and Orient, as many goods and cultural artifacts passed from one region to another via the Commonwealth. For example, Persian carpets imported across the Commonwealth were actually known in the West as "Polish carpets". Also, the price of eastern spices in Poland was several times lower than in western ports, which led to the creation of a distinct Polish cuisine, owing much both to the eastern and western influence.

Commonwealth currency included the złoty and the grosz. The City of Gdańsk had the privilege of minting its own coinage.

If such a commonwealth of countries existed in 2005, it might have been among the largest economies in the world.

Adapted from the Wikipedia article "Economy", under the G.N U Free Docmentation License. Please also see http://en.wikipedia.org/wiki