The Economic Expansion Of Venice

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In the Middle Ages, Venice was possibly the richest place in the world. Venice become rich due to reconstituting strong central political power by kings such as Charlemagne. By 1050 to 1330, Venice was then as big as Paris, and probably three times the size of London. This expansion includes contractual innovations making economic institutions much more inclusive such as commenda. Government documents replaced with new names. The economic expansion of Venice created more pressure for political change. There are some innovation such as Great Council with sub councils Senate and the Council of Forty, General Assembly, new doge had to swear an oath of office. The institutional innovations included creation of independent magistrates, courts, a court of appeals, and new private contract and bankruptcy laws. But there was a tension. Economic growth was accompanied by creative destruction. Each new wave of enterprising young men who became rich via the commenda or other similar economic institutions tended to reduce the profits and economic success of established elites. And they did not just reduce their profits; they also challenged their political power. To avoide this disturbance, On October 3, 1286, a proposal was made that Great Council that the rules be amended so that nominations had to be confirmed by a majority in the Council of Forty, which was tightly controlled by elite families. This would have given this elite veto power over new nominations to the council. The
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