Economic history of Venice

Venice, which is situated at the far end of the Adriatic Sea, gained large scale profit of the adjacent middle European markets. As a consumer centre Venice did play a rather meaningless role. But within a long process of adaptation and learning the Venetians developed techniques of trade, forms of companies and methods of finance, but to the same degree means of business development, of insurance and patent protection, in addition technical and organisational innovations, last not least means of controlling the money-market, that made them forerunners of developments for the rest of Europe.

Nevertheless, only the nobility or patriciate had the right to exercise the wealth-bringing long-distance trade. It was the same patriciate that erected a monopoly of political leadership. It left production and small business to the strata of its society that were not capable of becoming a member of the council - which was the visible sign of nobility. On the other hand, they provided protection against competitors, against violation of secrecy - and exercised strict control.

Ab initio Venice had to face fierce competition and rivalry, especially coming from Genoa. War, whether declared or not, was the normal status that for four times culminated in year-long open wars, conducted with all means. Finally, the tiny - as far as its expanse was concerned - super power had to draw back, because the world powers of those days, Spain and the Ottoman Empire, had a world of natural and human resources, Amsterdam, London and Lisbon the political and economic means that Venice could not afford in that ever growing range.

In the 17th and 18th century, the regional power that had almost lost its entire colonial empire, was more and more specialized in the production of luxury articles and in agricultural products of the Terraferma.

Taking and keeping control of long distance trade from Venice necessitated new means and measures of checking and controlling. The "commercial revolution" with its new cultural, organisational forms, not to forget with its new ways of living, lead to a never before seen predominance of economy, especially as the economically leading clans were at the same time incorporated in the vehicles of political power. Economic success attracted - as ever - thousands of people, amongst them lots of artisans with capabilities of utmost importance. Refining and melioration, new products could develop.

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Wikipedia