The Great Divergence — European economics and institutes in XV-XVII

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Agopov ovanesThe Great Divergence:European economics and institutes in XV-XVII Preconditions: Middle Ages (400 to 1500 )The dominant role of the Catholic Church and its dogmaSubsistence agriculture -> Internal Exchange/Sharing Poorly centralized power of King as the OverlordSlow pace of technological developmentThe prohibition of charging “interest” Reformation or RenaissanceSecularizationChurch split: the emergence ProtestantismCentralization of power Development of Technologies and Sciences -> The Great geographic discoveries New religious standards -> Controlled “interest” Loan at interest: long history “The doctrine of fair price” - Thomas Aquinas (Aquinas) (1225-1274) Martin Luther (1483-1546) and John Calvin (1509-1564) From Peasants to BurgessThe appearance of manufactories and craft associationsDevelopment of trade relations on all levels of supply chainDevelopment of shipbuilding: rebirth of caravel The Great Developments The Great Geographic Discoveries What’s New in the New World The new perception of the world The Peace of Westphalia (1648) The EndThanks for your attention!Questions?

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