The Modern World-System I

In the case of Portugal, there seemed to be advantage in the “discovery business” for many groups—for the state, for the nobility, for the commercial bourgeoisie (indigenous and foreign), even for the semiproletariat of the towns.

In addition, Portugal already had much experience with long-distance trade

One obvious answer is found on any map. Portugal is located on the Atlantic, right next to Africa. In terms of the colonization of Atlantic islands and the exploration of the western coast of Africa, it was obviously closest. Furthermore, the oceanic currents are such that it was easiest, especially given the technology of the time, to set forth from Portuguese ports (as well as those of southwest Spain).123

Nonetheless, the supply was not keeping pace with the demand, and the search for gold by the maritime route (thus, for Sudanic gold, circumventing North African intermediaries) was unquestionably one consideration for the early Portuguese navigators

There are three main explanations of the crisis. One is that it was the product essentially of cyclical economic trends. The optimal point of expansion given the technology having been reached, there followed a contraction. The second is that it was the product essentially of a secular trend. After a thousand years of surplus appropriation under the feudal mode, a point of diminishing returns had been reached. While productivity remained stable (or even possibly declined as a result of soil exhaustion) because of the absence of structured motivation for technological advance, the burden to be borne by the producers of the surplus had been constantly expanding because of the growing size and level of expenditure of the ruling classes. There was no more to be squeezed out. The third ex

Thus started a downward cycle: The fiscal burden led to a reduction in consumption which led to a reduction in production and money circulation which increased further the liquidity difficulties which led to royal borrowing and eventually the insolvency of the limited royal treasuries, which in turn created a credit crisis, leading to hoarding of bullion, which in turn upset the pattern of international trade.