Polish–Lithuanian Commonwealth - Economy

Economy

The economy of the Commonwealth was dominated by feudal agriculture based on the plantation system (serfs). Slavery in Poland was forbidden in the 15th century; in Lithuania, slavery was formally abolished in 1588. They were replaced by the second enserfment. Typically a nobleman's landholding comprised a folwark, a large farm worked by serfs to produce surpluses for internal and external trade. This economic arrangement worked well for the ruling classes in the early era of the Commonwealth, which was one of the most prosperous eras of the grain trade. The economic strength of Commonwealth grain trade waned from the late 17th century on. Trade relationships were disrupted by the wars and the Commonwealth proved unable to improve its transport infrastructure or its agricultural practices. Serfs in the region were increasingly tempted to flee. The Commonwealth's major attempts at countering this problem and improving productivity consisted of increasing serfs' workload and further restricting their freedoms in a process known as export-led serfdom.

Though the urban population of the Commonwealth was about 20% of the total in the 17th century, which was much lower than in some West European countries (approximately 50% in the Netherlands and Italy) the urbanization of the country was of a specific character (Pic. 7). The Commonwealth's preoccupation with agriculture, coupled with the szlachta's privileged position when compared to the bourgeoisie, resulted in a fairly slow process of urbanization and thus a rather 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).

Poland-Lithuania played a significant role in the supply of 16th century Western Europe by the export of three sorts of goods, notably grain (rye), cattle (oxen) and fur. These three articles amounted to nearly 90% of the country's exports to western markets by overland- and maritime trade.

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. 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 Gdańsk, 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, Bug, San, Nida, Wieprz, Neman. 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. Hrodna become an important site after formation of a customs post at Augustów in 1569, which became a checkpoint for merchants travelling to the Crown lands from the Grand Duchy.

From Gdańsk, ships, mostly from the Netherlands and Flanders, carried the grain to ports such as Antwerp and Amsterdam. Besides grain, other seaborne exports included carminic acid from Polish cochineal, lumber and wood-related products such as ash, and tar. The land routes, mostly to the German lands of the Holy Roman Empire such as the cities of Leipzig and Nuremberg, were used for export of live cattle (herds of around 50,000 head) hides, furs, salt, tobacco, hemp, cotton (mostly from Greater Poland) and linen.

The Commonwealth imported wine, fruit, spices, luxury goods (e.g. tapestries, Pic. 5), 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 Discovery, many old trading routes such as the Amber Road (Pic. 4) 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. Many goods and cultural artifacts continued to pass from one region to another via the Commonwealth. For example, Isfahan rugs imported from Persia to the Commonwealth were actually known in the West as "Polish rugs" (French: Polonaise).

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