The economy of European grew dramatically during the Renaissance period especially in the area of trade. The early trade of the Renaissance period tremendously affected wealth cities as well as banking classes and merchants who rose to power. Economic Renaissance is famous since the developments such as improvements in a banking system, population growth, new manufacturing systems and the expansion of trade led to the increase in commercial activities. Moreover, feudalism that had been prevalent in the Middle Ages steadily disappeared and the new forms of capitalism were realized (Carnegie-Mellon, 2010). These changes affected most of the facets of the European society and thus pushing people to adapt to the different types and new modes of conducting business. Economic circumstances were critical as opposed to political factors in developing an environment ripe for the Renaissance to flourish.
The Medieval Europe was mostly rural, and most of the people in the economy depended on agriculture. Cities and towns did not have important centers of production till late Middle Ages, but with time the economic significance increased quickly. The Economic circumstance in the European economy was diverse since different regions produced many goods. With time, most parts of the continent advanced economically as others declined. For instance, in 1400s Italy was dominating the manufacturing and trade industry in Europe (OECD, 2003).
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Merchants in Milan, Venice, and Florence created large business entities to carry out their economic activities in Europe. They produced and sold a broad range of products. The Italians also offered banking services for other merchants and governments across Europe. It is established that some of the cities specialized in manufacturing and trade. According to Carnegie-Mellon “Florence produced silk and woolen cloth while Milan manufactured metal goods like armor” (Carnegie-Mellon, 2010). On the other hand, Venice controlled Mediterranean trade as they bought spices and other products from Ottoman and Arab traders and shipped the commodities to the buyers in northern Europe and Italy.
Ultimately, the economic circumstances of Europe during the Renaissance experienced both opportunities and crises. The people showed the need to change. For instance, if one route failed the merchants developed the other. For example, when Venice declined in their leading role in the trade for the Asian spices, they changed to printing (Carnegie-Mellon, 2010). With time, print decreased in Venice and thus making Paris the printing capital in Europe. Indeed, this continued the transformation and growth of the Renaissance economy. According to Alfani “Merchants used their knowledge and experience of the trade goods and international markets to expand the economy of Europe” (Alfani, 2013). For instance, some of the merchants became successful bankers and thus started transferring funds, exchanging different forms of currency and offering loans. Notably, this led to increased need for financial services thus the emergence of banking institutions.
To a greater extent, the economic circumstances in Europe during the Renaissance allowed it to flourish. Trade was an important aspect that made the Renaissance period to thrive. It is established that trade led to the emergence of merchants who were powerful and wealthy. They provided an ideal environment for development as they invested their money in buildings and establishing businesses. The merchants and the banking class in Europe during Renaissance era rose with power and thus transformed the cities and towns with their wealth. European economy during Renaissance led to an increase in economic activities and later the emergence of capitalism that replaced feudalism that was widespread during the Middle Ages (Alfani, 2013). Ultimately, the economic circumstances of the Renaissance were necessary as they allowed the society to flourish and thus to change most aspects of the European community.
References
Alfani, G. (2013). Calamities and the Economy in Renaissance Italy: The Grand Tour of the Horsemen of the Apocalypse. New York: Springer.
Carnegie-Mellon. (2010). The Economic Impact of the Regional Renaissance Initiative. New York: University of Pittsburgh, Duquesne University, Price Waterhouse LLP.
OECD. (2003). Urban Renaissance Berlin: Towards an Integrated Strategy for Social Cohesion and Economic Development: Berlin: Towards an Integrated Strategy for Social Cohesion and Economic Development. New York: OECD Publishing.
