Colbertism
Encyclopedia
Colbertism is an economic and political doctrine of the seventeenth century, created by Jean-Baptiste Colbert
, the French minister of finance under Louis XIV. Colbertism is a variant of mercantilism
and is more a collection of economical practices than a true current of economic thought.
had a successful hold on North America
and various other areas, including India
, Spain
had a large hold of South America
and North America
, and the Dutch
had successful outposts in India
. The French
were beginning to colonize parts of North America, but did not have permanent settlements like the Spanish and British colonies.
In 1628, Quebec
became controlled by the Company of One Hundred Associates
, a merchant-run join-stock enterprise founded by Cardinal Richelieu
. The Company received a monopoly over fur trade
, and title to all the lands in New France, in trade for 4,000 settlers to the new colony, as well as supplies and priests. Like all other colonies, French influence in the New World led to problems with the natives: war for control of the fur trade and French disease killed off large portions of Indian tribes.
France not only had colonies North America, but also controlled the French West Indies, in the Caribbean Sea. During the 17th century, France colonized several of the West India
n Islands because of competition with the Spanish, English, and Dutch. Despite controlling very many of the West Indian Islands, only Martinique, Guadeloupe, and some nearby small islands survived as the French West Indies.
Quite surprisingly, the idea of mercantilism was first described by the French finance minister, Jean-Baptiste Colbert
. Colbert's idea was a "favorable balance of trade" in which goods were exported for gold, versus an "unfavorable balance of trade" in which gold would flow out of the country. Colbert also intended to get rid of internal tariffs, and to tax the nobility, but failed.
Jean-Baptiste Colbert
Jean-Baptiste Colbert was a French politician who served as the Minister of Finances of France from 1665 to 1683 under the rule of King Louis XIV. His relentless hard work and thrift made him an esteemed minister. He achieved a reputation for his work of improving the state of French manufacturing...
, the French minister of finance under Louis XIV. Colbertism is a variant of mercantilism
Mercantilism
Mercantilism is the economic doctrine in which government control of foreign trade is of paramount importance for ensuring the prosperity and security of the state. In particular, it demands a positive balance of trade. Mercantilism dominated Western European economic policy and discourse from...
and is more a collection of economical practices than a true current of economic thought.
Principal Characteristics
Colbert's central principle was that the wealth and the economy of France should serve the state. Drawing on the ideas of mercantilism, he believed state intervention was needed to secure the largest part of limited resources. To accumulate gold, a country always had to sell more goods abroad than it bought. Colbert sought to build a French economy that sold abroad and bought domestically.History
In the 17th century, European powers had already successfully colonized some part of the world. EnglandEngland
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
had a successful hold on North America
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...
and various other areas, including India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
, Spain
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
had a large hold of South America
South America
South America is a continent situated in the Western Hemisphere, mostly in the Southern Hemisphere, with a relatively small portion in the Northern Hemisphere. The continent is also considered a subcontinent of the Americas. It is bordered on the west by the Pacific Ocean and on the north and east...
and North America
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...
, and the Dutch
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
had successful outposts in India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
. The French
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
were beginning to colonize parts of North America, but did not have permanent settlements like the Spanish and British colonies.
In 1628, Quebec
Quebec
Quebec or is a province in east-central Canada. It is the only Canadian province with a predominantly French-speaking population and the only one whose sole official language is French at the provincial level....
became controlled by the Company of One Hundred Associates
Company of One Hundred Associates
In 1627 the French government granted the company of 100 associates a monopoly on the fur trade in New france. In return the company was supposed to bring over 4000 French catholics to settle down in new france over the next 15 years. The company allowed the settlers to trade for furs directly with...
, a merchant-run join-stock enterprise founded by Cardinal Richelieu
Armand Jean du Plessis, Cardinal Richelieu
Armand Jean du Plessis, Cardinal-Duc de Richelieu et de Fronsac was a French clergyman, noble, and statesman.Consecrated as a bishop in 1608, he later entered politics, becoming a Secretary of State in 1616. Richelieu soon rose in both the Catholic Church and the French government, becoming a...
. The Company received a monopoly over fur trade
Fur trade
The fur trade is a worldwide industry dealing in the acquisition and sale of animal fur. Since the establishment of world market for in the early modern period furs of boreal, polar and cold temperate mammalian animals have been the most valued...
, and title to all the lands in New France, in trade for 4,000 settlers to the new colony, as well as supplies and priests. Like all other colonies, French influence in the New World led to problems with the natives: war for control of the fur trade and French disease killed off large portions of Indian tribes.
France not only had colonies North America, but also controlled the French West Indies, in the Caribbean Sea. During the 17th century, France colonized several of the West India
West India
West India or the Western region of India consists of the states of Goa, Gujarat and Maharashtra, along with the Union Territories of Daman and Diu and Dadra and Nagar Haveli. It is highly industrialized, with a large urban population. Most of Western India was part of the Maratha Empire before...
n Islands because of competition with the Spanish, English, and Dutch. Despite controlling very many of the West Indian Islands, only Martinique, Guadeloupe, and some nearby small islands survived as the French West Indies.
Quite surprisingly, the idea of mercantilism was first described by the French finance minister, Jean-Baptiste Colbert
Jean-Baptiste Colbert
Jean-Baptiste Colbert was a French politician who served as the Minister of Finances of France from 1665 to 1683 under the rule of King Louis XIV. His relentless hard work and thrift made him an esteemed minister. He achieved a reputation for his work of improving the state of French manufacturing...
. Colbert's idea was a "favorable balance of trade" in which goods were exported for gold, versus an "unfavorable balance of trade" in which gold would flow out of the country. Colbert also intended to get rid of internal tariffs, and to tax the nobility, but failed.