The Economic Reforms …

Years: 1684 - 1827

The Economic Reforms of the Marquis of Pombal: Inspired by Colbertism (18th Century)

Sebastião José de Carvalho e Melo, later known as the Marquis of Pombal, served as the chief minister of Portugal under King Joseph I (1750–1777) and implemented sweeping economic reforms inspired by Jean-Baptiste Colbert’s protectionist policies in France. His mercantilist strategies aimed to strengthen the Portuguese economy, promote industrial development, and reduce dependence on foreign imports.


Key Economic Policies Under Carvalho

  1. Monopoly Companies and Trade Regulation

    • Like Colbert’s system in France, Carvalho granted royal companies monopolies over specific industries.
    • He prohibited the export of gold and silver, ensuring that wealth remained within Portugal.
    • Several monopoly companies were established to control trade in Brazil and other colonies.
  2. Reforming Portuguese Agriculture

    • To increase cereal production, Carvalho banned the planting of grape vines in certain regions, prioritizing grain cultivation to combat food shortages.
    • At the same time, he protected Portugal’s winemaking industry by:
      • Founding the Douro Wine Company (1756), which held a monopoly on the export of Port wine.
      • Standardizing wine production and protecting Portuguese wines from foreign competition.
  3. Industrial Development and Manufacturing

    • Carvalho sought to modernize Portuguese industry, particularly textiles, glassmaking, and fishing.
    • He converted the silk industry into a broader textile sector, reducing reliance on imported fabrics.
    • The Marinha Grande glass factory was placed under British management, introducing advanced manufacturing techniques to improve production quality.
    • A state-supported fishing and processing company was established to develop sardine and tuna fisheries in Portuguese waters.

Impact of Carvalho’s Economic Policies

 Strengthened Portuguese industries, particularly in wine, textiles, and glassmaking.
 Increased state control over colonial trade, boosting revenues from Brazil and overseas territories.
 Reduced Portugal’s dependence on foreign imports, improving the country’s economic self-sufficiency.
 Criticized for excessive state intervention, which stifled competition and created economic rigidity.
 Provoked opposition from the nobility and foreign merchants, particularly British traders, whose influence in Portugal was diminished.


Conclusion: Carvalho’s Economic Legacy

Carvalho’s Colbertist-inspired economic reforms had lasting effects on Portugal, laying the foundation for industrial and commercial modernization. His mercantilist policies increased state control over trade and production, but their long-term success was limited by resistance from powerful elites and external economic pressures. Despite this, his efforts to strengthen the Portuguese economy through protectionism and industrialization shaped economic policies for decades to come.

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