The theories of proto-industrialization

Sheilagh C. Ogibie and Markrc Cerman

'Proto-industrialization' is the name given to *re expansion of domesticindustries producing goods for non-local markets which took place inmany parts of Europe between the sixteen*r and the nineteenthcenturies. Often, although not always, such industries arose in thecountryside where they were practised alongside agriculture; usually,they expanded without adopting advanced technolory or centralizingproduction into factories.

This widespread industrial growttr in early modern Europe has longbeen a subject of specialized study. But in the 1970s it began to attractmuch wider interest, when a series of stimulating articles and bookschristened it 'proto-industrialization', and argued that it was a majorcause of the transition to capitalism and factory industrialization.

Proto-industrialization as the first step trr irt4,r"l6alization

The term 'proto-industrialization' was invented by Franklin Mendels,and first used in his 1969 doctoral dissertation on the Flemish linenindustry (Mendels 1969/1981). It became widely known after thepublication in 1972 of a now-famous article based on this research(Mendels 1972). For Mendels, proto-industrialization was the firstphase of industrialization: 'pre-industrial industry', he argued, 'pre-

ceded and prepared modern industrialization proper' (Mendels1972: 241). During this proto-industrial phase, a rural labour forcebecame involved in domestic industries producing for supra-regionalmarkets. The population was liberated from the agrarian resourcebase, and labour which had previously been unused because of theseasonal nature of agrarian production found employment. Subse-quently, in order for production to expand further, specializationinto regions of rural industry and commercial agriculture becamenecessary.

Mendels took for granted that all of early modem Europe (not justFlanders) saw the decline of traditional urban and guild regulation of

2 Sheilagh C. Ogilvie and Markus Cerman

industry, as manufacturing moved into the unregulated countryside.There, according to Mendels, proto-industrialization also broke downthe traditional regulation mechanisms of agrarian society - inheritancesystems and other institutional controls - which had adjusted populationgrowth to available economic resources. For the regions of Flanderswhich he studied, Mendels sought ro show that periods of economicuptum in proto-industry led to an increase in the number of marriages,and that this increase was ineversible - that is, even in periods ofeconomic downturn, the marriage rate did not decline again. This, heargued, generated higher fenility and rapid population growth, which inrurn led to further expansion in rural domestic industries. It was thisself-sustaining proto-industrial spiral, Mendels argued, which ultimatelygenerated the labour, capital, entrepreneurship, commercial agricultureand supra*regional consumer markets required for factory industrializa-tion. Mendels explored and extended these theses over rhe years thatfollowed (see Mendels 1975; and especially Mendels l9g0).

Proto-industr.iali zation and proletarianization

During the 1970s and 1980s, Mendels' argumenrs were eagerly taken upby other hisrorians, giving rise to separare schools of proto-industrialtheory. One emanated from David I-evine, who, in his doctoraldissenation on two villages in nineteenth-cennrry I-eicestershire, alsoviewed proto-industry as having revolutionized demographic behaviour(later published as I-evine lg77). But for r*vine, proto-industry and theassociated population explosion were important mainly because they'proletarianized' the worldorce. By this he meant that they broke downthe social structure and landownership paftern of traditional ruralsociety, creating a large group of people who had no land to live from,and therefore had to work for wages. I-evine viewed proto-industrializa-tion as only one aspect of this larger process of proletarianization, whichfor him was the crucial precondition for capitalism and industrialization.

Proto-industr"ialization and surlrlus labour

Another view of proto-industrialization, much less widely known *lanothers but indirecdy quite influential, was put forward by Joel Mokyr.Mokyr rejected alrnost all *re arguments advanced by Mendels (Mokyr1976:. 377-9). However, he was convinced that proto-industrializationprovided cheap 'surplus' labour, which fuelled European industrializa-tion by means of the mechanisms described by '$f. A. I-ewis in hisdualistic growth model for modem developing economies (-ewis Lg54).

The theories of proto-industrialization 3

V&ile Lrwis' model had been (and still is) enormously influential, it wasbecoming clear that there was little empirical evidence for the existenceof much 'surplus' labour in the agricultural sectors of present-day lessdeveloped economies (I(ao, Anschel and Eicher 1964: l4l; Uttle 1982:90). But Mokyr argued that in the pre-industrial European economyJsurplus labour was provided not by agriculture but by proto-industry.

Although for the most part this version of the theory has not beenpursued, it is important because of its direct links with the economics ofdevelopment, and because it is close to the view of proto-industrializa-

tion adopted by Jan de Vries in his influential theories conceming earlymodem European urbanization (de Vries 1984).

Proto-industrializ31i611 and the transition from feudalism tocapitalism

The proto-industrialization debate was intensified, first in German (inL977) and then in English (in 1981), by the publication of a book byPeter Kriedte, F{ans Medick and Jrirgen Schlumbohm. CombiningMendels' and I-evine's findings with earlier literature on domesticindustry, panicularly *rat of the German Historical School of NationalEconomy, they turned the theory of proto-industrialization into ageneral model of European social and economic change in the periodbetween the Middle Ages and the nineteenth century. In their ownwords,

Proto-industrialization... as'industrialization before industrialization' ... canbe defined as the development of rural regions in which a large part of thepopulation lived entirely or to a considerable extent from industrial massproduction for inter-regional and intemational markets ... Viewed from theIong-range perspecdve, it belongs to the great process of transformation whichseized the feudal European agrarian societies and led them toward industrialcapitalism. (Kriedte, Medick and Schlumbohm 1981: 6)

For them, proto-industrialization represented the 'second phase' ofthis uansformation process, for it 'could establish itself only where theties of the feudal system had either loosened or were in the process offuIl disintegration' (Kriedte, Medick and Schlumbohm 1981: 6). Thecause of this loosening of feudalism in the 'first phase' of the transitionto capitalism was, they argued, an increased differentiation in agrarianclass structure and a bifurcation of agrarian production into commercialand subsistence rypes. This in turn had been caused by the commutationof feudal dues paid in kind into money renrs, which had occurred inEuropean feudal societies, particularly in western and north-westemareas of the continent. The polarization of the rual population into two

4 Sheilagh C. Ogilvie and Markus Cerman

different groups -'peasants' (who owned enough land to live solely fromagricultural production), and a landless or land-poor'rural sub-stratum'(who could not live from agriculture alone) - provided the basis, it wasargued, for the subsequent integration of the rural sub-stratum intodomestic industry. This integration was triggered by the e:rpansion ofsupra-regional and international markets, and a resulting need toincrease production. Industrial production could only be expanded if itwas shifted to the countryside, because in the towns guilds restrictedgrowth.

Once proto-indusries had arisen in the countryside, according to thisaccountJ they led to a transformation in the organization of industrialproduction, through a succession of different stages of development(alttrough it was emphasized that these stages should not be viewed asrigid or deterministic). The first stage was the 'Kaufsystem' (artisanal orworkshop system), in which rural producers retained autonomy overproduction and selling. An increasing penetration of merchant capitalinto production led to a greater dependency of producers on merchantsand putters-out, bringing about a general transition to the 'Verlags-

system' (putting-out system). The most important element in thisdependency was that the rural producers no longer had independentaccess to the market, either for buying raw materials or for selling theirproduct. In the puming-out system, the merchants bought up the rawmaterial inputs, 'put them out' to the rural producers who processedthem in return for a wage, whereupon the merchants collected theoutput for transfer either to the finishing stages of production or to thefinal consumer market. (Jltimately, according to *ris view, industrialproduction made the transition to a third organizational stage, theconcentration of production into centralized manufactories and theninto mechanized factories. Kriedte, Medick and Schlumbohm - likeMendels - explicitly mentioned (although without explaining) thepossibility *rat this line of development might fail, resulting in de-industrialization and re-agrarianization.

As in the theory of Mendels, so too in that of Kriedte, Medick andSchlumbohm, the demographic consequences of proto-industrializationoccupied a central position. The so-called 'demo-economic system' ofproto-industrialization, developed by Hans Medick (and discussed ingreater detail in Jtirgen Schlumbohm's contribution to the presentvolume), drew a systematic set of theoretical connections betweendemographic development and the family economy of the proto-industrial household. Medick's concept thus sought to go beyond thedirect relationships between proto-industry and marriage behaviour as*rey had been interpreted by Mendels.

The theories of proto-industrialization 5

Some*ring often not acknowledged by either critics or proponents of

the concepts advanced by Kriedte, Medick and Schlumbohm is that

their theory actually advances tvro distinct assessments of proto-

industrialization. Peter Kriedte and Hans Medick, in what they call their'system concept', regard the proto-industrialization phase as a separate

economic system: that is, it was a separate mode of production which

prevailed during the transition from feudalism to capitalism, and which

united elements of both feudal and capitalist modes. Jtirgen Schlum-

bohm, by contrast, holds that although the proto-indusrialization phase

did have features of both feudal and capitalistic modes of production, it

did not constinlte a system of its own: it was a process, and remainedpart of the feudal mode of production.

Extensions to the theories of proto-industrialization

At latest by 1977, therefore, the concept of proto-industrialization hadproliferated into a family of different theories, which adopted ratherdifferent definitions of proto-industry and which disagreed quite

fundamentally about the causes of economic development. Almost allthat they had in common was that they located these causes in a certainsector of t}re economy - export-oriented domestic industries - andviewed this sector as having broken down the demographic equilibriumof traditional European society. Over the following years and decades,these various branches of proto-industrialization *reory stimulated ahuge outpouring of research into regions of domestic industrythroughout Europe - and, indeed, beyond it (on the application ofproto-industrialization theories to the non-European world, see theliterature cited in Ogilvie 1993a:178 n. 6).

By 1982, so influential and yet so variegated had the field of proto-industrialization become that Franklin Mendels and Pierre Deyon wereinvited to convene one of ttre three main sessions of the EighthIntemational Economic History Congress in Budapest, wittr proto-industrialization as their theme. Deyon and Mendels pre-circulated adraft definition and a set of hypotheses, forty-eight researchers con-tributed empirical papers (Deyon and Mendels 1982), and Mendelssummarized the findings of the session in a 'General repoft', containinga revised definition and a set of hypotheses which have provided a basisfor subsequent debate (Mendels 1982; revised version published inFrench as Mendels 1984).

The 1982 definition of proto-industrialization stressed certain keycharacteristics. Proto-industrialization was held to take place (and thus bemost properly studied) not nationally or internationally, but regionally:

6 Sheilagh C. Oeihrie and Markus Cerman

'within a small radius around a regional capital'' Sfithin regions' proto-

industries were held to combine three characteristics. First, they were

distinguished from old-fashioned crafts in that they produced not for

local or regional consumption, but for sale to export markets located

outside the region. Second, 'the most significant aspect of proto-

industrialization' was that it 'provided employment in the countryside

above all': it was practised pan time by peasants who also laboured in

agriculture, and only in its 'extreme or ultimate form' did it involve full-

time employment. Third, proto-industrialization involved the'symbiosis

of rural industry with the regional development of a commercial

agriculture'. A supplementary characteristic was 'the dynamic element':

proto-industrialization was defined as a grcwth over time in the industrial

employment of rural workers (Mendels 1982:.77-9).Deyon and Mendels also put forward four hypotheses concerning the

efrects of proto-industrialization. First, it was supposed to have led to

population growth and land fragmentation, by breaking down traditional

regulation of demographic behaviour by peasants, landlords or inheri-

tance systems. Second, it created profits which formed the capital for

factory industrialization. Third, it provided merchants with ttre skills and

experience they would need for factory industrialization' And fourth, it

caused the commercialization of agriculture, which enabled subsequent

urbanization and factory industrialization. The authors argued that it

was through these four mechanisms that proto-industrialization led to

factory industrialization, although they admitted that sometimes it led to

de-industrialization instead (Mendels 1982: 80).In his 'General report' of 1982, Mendels also proposed a list of

revisions to some of the original proto-industrialization hypotheses of

the 1970s. First, he admitted that the chronology of proto-industrializa-

tion varied, and had to be investigated in the context of the economic

history of the particular region in question. Second, he acknowledged

that proto-indusuialization did not invariably lead to impoverishment;

he suggested that producers' incomes depended on the production

function of the specific wares *tey produced. Third, although he still

held that proto-indusory invariably disturbed the demographic system'

he admined that its impact might be felt not just on nuptiality, but also

on fertility and migration; and that it depended on household organba-

tion, the prevalence of a Hajnal-type 'European' family system (Ilainal

1965, 1983), the social position of women and adolescents, the degree

of population pressure and the nature of domestic relations in the

particular sociery in question. Fourth, he admined that proto-industry

could lead to either industrialization or de-industrialization, depending

on a variety of factors, among which he highlighted nansportation costs.

The theories of proto-industrialization

Fifth, he acknowledged that the effect of proto-industrialization de-pended on the larger world economy, which might make it risky to

extrapolate to *re modern developing world. FinallR he argued that the

srudy of proto-industrialization should wam modern development

economists of the dangers of simple linear views of development,

involving straighdorward transitions from static feudal societies to

dynamic capitalist ones (Mendels 1982: 93-8).

Criticisms of the theories of proto-industrialization

Somewhat more slowly *ran they attracted support, the theories ofproto-industrialization also began to draw criticisms. Several compo-nents of the definitioz of proto-industry evoked lively controversy(Kriedte, Medick and Schlumbohm 1992: 70ff). For one thing, theprecise size and structure of unit *rat qualified as a'region'was unclear.Proto-industries could and often did extend beyond the radius around asingle market town, or altematively were sometimes found in only oneor rwo communities in such a radius. Thus it was undesirablyconstraining to adopt this narrow geographers' definition of a region. Onthe other hand, defining the region as simply the area within which acertain proto-industry was practised seemed, al*rough pragmatic, toIeach the concept of the 'region' of much of its analytic content.Moreover, there was no agteement about how large a proportion of theregional labour force must have been employed in proto-industry, norhow fast or sustained the growth of this labour force must have been, inorder to quahfii as 'proto-industrialization'. Many researchers empha-sized the importance of specific characteristics of the particular region,including the economic trends it experienced historically, and itssituation within the wider national or international framework. inaffecting the course of proto-industrialization.

There was also confusion about the precise theoretical impoftance ofexpon markers for proto-industries; this is especially important given thecriticisms from a number of historians of crafts and industry about theneglect of locally oriented rural and urban crafts. Even now, it remainsunclear what proportion of production had to be exponed in order forany given industry to qualiff as a proto-industry instead of a craft.Finally, it is not clear how distant the final markets must have been, inorder for trade in industrial products to count as 'supra-regional' ratherthan 'local' - especially given the ambiguity in defining the 'region'

which has already been discussed. In sum, the precise demarcationbetween locally oriented crafts and export-oriented proto-industriesremains indistinct.

8 Sheilagh C. Ogilaie and Markus Cennan

Many commentators, especially historians of crafts and industry,criticized the negkct of other forms of in&rstry. The theories of proto-industrialization concentrated solely on one sort of pre-industrialindustry - namely domestic industry. These critics advanced strongarguments against such an over-emphasis on the role played by thissingle sort of industry in the transition to industrialization proper. Theyurged that historians also take into account the quandtative andqualitative importance of locally oriented rural and urban crafts, export-oriented urban industries, and centralized manufactories - all of whichhad been consciously neglected by the theories of proto-industrialization(Kauftrold 1986; Suomer 1986; Schremmer l98O:. 422-3,425-7,442).

A related issue was the apparent neglect of industial uchnologt andpl4tsical geography. Although Mendels made passing references to *rerole of the production functions of pardcular industries in affecting ruralimpoverishment, and the key role of ffansportation costs in determiningindustrialization or de-industrialization of proto-industrial regions, thesereferences remained for many years largely unexplored. Only recentlyhave they been developed into a more systematic consideration of therole in proto-industries of technical requirements of different branchesof industry and the effect on production costs of geographical andphysical characteristics of the region (Mager 1993).

A fundamental substantive criticism levelled at all the theorists, butparticularly Kriedte, Medick and Schlumbohm, was that they adopted amistaken view of the structure and functioning of the traditional societicsout of which proto-industrialization is supposed to have developed. Thiscriticism was directed both at their view of the preconditions for thedissolution of feudalism during the 'first phase' of the transition tocapitalism, and at their picture of agrarian society, especially that part ofit which they termed the 'subsistence qpe' (Coleman 1983: 440ff; Eley1984: 525f8 Houston and Snell 1984: 491; Linde 1980: 1064Schremmer L98O:. 434ff; cf. on this Kriedte, Medick and Schlumbohm1983: 92ffand the contribution by Schlumbohm in the present volume).This raised the question whether the model of the peasant familyeconomy which they - like Mendels - had taken over from AlexanderChayanov, who had developed it for early-f'ventieth-century Russianpeasants (Chayanov 1966), was really applicable to early modemEuropean societies. Further criticisms were levelled at the contrastsdrawn between subsistence-oriented proto-industrial producers andprofit-oriented (i.e. capitalistically motivated) putters-out and entrepre-neurs (Mosser l98l: 404n. The exclusive subsistence orientationassumed for rural domestic workers was not found in empirical studies,and was inconsistent with the observed fact that proto-industrial

The theories of proto-industrialization 9

producers sometimes became traders, factors, putters-out and even

manufactory operators; nor was it altogether consistent with the

observed practice whereby proto-industrial workers saved up proto-

industrial earnings to invest in land and agriculture.

Closely related to this issue was the argument that the theories were

inapplicable to cenain Eurolean soc'ieties. Some commentators argued that

the preconditions for proto-industrialization assumed in the theory

actually prevailed only in north-west Europe, so that the model could

not claim to be generally applicable (Flouston and Snell 1984:' 476).

However, others contended that England - an imponant part of north-

west Europe - had to be excluded from the model, because corruner-

cialization and capitalistic stmctures were already far advanced in

England before the establishment of proto-industries, and thus proto-

industrialization cannot have brought them into being. It was also

argued that the demographic postulates of the theory and the view it

advanced concerning factory industrialization were not appropriate in

the English context (Coleman 1983: 439tr; llouston and Snell 1984:476). Ironicalln German historians also claimed that the theories ofproto-industrialization were inapplicable to Germany, which is oftenseen as having followed a 'special path' toward industrialization andmodemization (Kuczynski 1981; Schultz 1983; Linde 1980).

Most commentaries also criticized the demograplec component to thetheories: both Mendels' view of the relationship benveen proto-industryand demographic growth, and Medick's 'demo-economic system'.Because the demographic regime was subject to so many differentinfluences in the various regions of eady modem Europe, it seemedunlikely that all local and regional studies would suppoft the postulatesof the theory in all respects. As a consequence, the explanatory powerand the validity of Mendels' and Medick's demographic postulates werequestioned by a wide variety of critics, from both *reoretical andempirical perspectives. Empirical case-studies of proto-industrialregions all over Europe were adduced to show that not all proto-industrial regions had greater population density, faster demographicgrowth, lower ages of marriage, higher fertility rates, larger householdsor a breakdown in the family and gender division of labour - all of whichhad been postulated in the original *reories. Furthermore, case-studiesQf agrarian regions were used to demonstrate that many - even all - ofthese demographic characteristics could also be found in regions andtime-periods when agricultural production was intensified and expanded(Coleman 1983l. 442f; Linde 1980: l13B Housron and Snell 1984:479ff; Scfuemmer 1980: 429f[ Kriedte, Medick and Schlumbohm1993:219-26).

l0 SheilaghC. Ogiltie and Markus Cerman

The relationship between proto-industry and agriculture also remainedunclear. It was pointed out that proto-industries were practised in thesame region as many different kinds of agriculture, including bothsubsistence and commercial farming. Moreover, proto-industriesderived their food and raw material supplies both from their ownfarming and from that of neighbouring or more distant regions ofsurplus. By-employment in proto-industry and agriculture was not thenorn, but rather was sometimes present and sometimes absent. Finally,it was pointed out that in a number of proto-industrial regions,traditional agrarian institutions survived unaltered and rural socialstructure remained gtable (Houston and Snell 1984; Unde 1980).

The theories were also accused of neglecting the economic role ofurban cennes. Although Deyon and Mendels acknowledged that 'the

entire handicraft sector was organized or coordinated from the town',they appear to have regarded proto-industry as exclusively the ruralcomponent of this handicraft sector (Mendels 1982: 78). This is oneaspect of the theories of proto-industrialization which has been moststrongly criticized. An imponant current of thought argues that largeurban export industries, or those involving centralized production units,should also be included under the rubric of proto-industrialization(Cerman 1993; Hohenberg l99l; Poni 1985).

A final major criticism focussed on factory industialization and de-industialization, and questioned the role of proto-industrialization inpreparing the way for industrialization. It was widely acknowledged byboth proponents and critics of the *reories of proto-industrializadon thatde-industrialization and a retum to agriculrure were a not infrequentoutcome in proto-industrial regions. According to the critics, this factremoved a great deal of the empirical content from any theory aboutproto-industrialization, especially since the factors which decidedwhether a proto-industrial region would industrialize or de-industrializeremained largely unclear (Clarkson 1985: 34ff; Houston and Snell 1984:488ff; cf. on this the contribution by Clarkson in the present volume).

Each of the mechanisns by which proto-industrialization is supposedto have led to industrialization was shown to have weak empirical andtheoretical bases. Research showed that the demographic effects ofproto-industrialization were extremely various, as was its impact on thefragmentation of landholdings (as is acknowledged in Kriedte, Medickand Schlumbohm 1993: 219ff, 226fr). Proto-industrialization appears tohave been only one of many sources of capital for industrialization, andin some cases proto-industrial profits flowed into agriculture, land-holding, or socio-political invesmrents. Proto-industrialization was alsoonly one of many sources of entrepreneurial skills for industrialization,

The theories of proto-industrialization I I

and sornetimes took place in such a constraining framework that it did

not involve the development of the appropriate entrepreneurial skills at

all. Furthermorei there is no evidence that it was proto-industrialization

which led to the development of commercial agriculfi,rre, rather than

agriculrural surpluses which led to the gXowth of both proto-industries

and - crucially - towns and cities. Commercial agriculture developed in

many cases earlier *ran proto-industry, and not always in neighbouring

regions. In many proto-industrial regions these mechanisms themselves

cannot have operated, since they did not industrialize, but rather stayed

proto-industrial or moved back to agriculture, and there is no agreement

about what factors decided whether a proto-industry would generate the

appropriate 'industrializing' mechanisms or not; thus the predictive

power of the theory is greatly reduced (Clarkson 1985; Houston and

Snell 1984; Hudson 1990; Mokyr 1976).

The theories of proto-industrialization thus touch upon almost every

aspect of pre-industrial society: people's thoughts and motivations, their

sexual and family behaviour, their use of time in work and play, theirownership of land and equipment, their standard of living and nutrition,*reir inequalities and conflicts, the social institutions which they used

@ut were also constrained by) in the attempt to sureive and themechanisms by which their society and economy gradually changedbetween c. 1500 and c. 1800. Around each of these fields of pre-industrial Europeans' Iives, the theories of proto-industrialization haveput forward daring hypotheses, which have aroused lively and oftenacrimonious debate. In different ways, all of these debates are discussedin the chapters of this book. However) most chapters place specialemphasis on those issues which are crucial for understanding a particularEuropean society. This is only appropriate, given that, in the earlymodem period just as today, Europe was a continent with a rich range ofregional differences, as well as an equally rich array ofshared concerns.Among these shared concerns are social inequality, demographic changeand economic well being. How these evolved in Europe benveen themedieval period and the nineteenth century continues to be illuminatedby the debate about proto-industrialization.

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