The Low Countries in the Transition to Capitalism

In the most recent phase of the discussion on the historical conditions for economic development, or the transition from feudalism to capitalism, the town-dominated Low Countries have been neglected, because the focus has been to such a large extent on agrarian conditions and agrarian transformations. This article seeks to make use of the cases of the medieval and early modern Northern and Southern Netherlands, the most highly urbanized and commercialized regions in Europe, to show that the rise of towns and the expansion of exchange cannot in themselves bring about economic development, because they cannot bring about the requisite transformation of agrarian social-property relations. In the non-maritime Southern Netherlands, a peasant-based economy led to economic involution. In the maritime Northern Netherlands, the transformation of peasants into market-dependent farmers created the basis for economic development.