The Austrian Netherlands in the Second Half of the Eighteenth Century a Cautious Recovery

Chapter 2 The Austrian Netherlands in the Second Half of the Eighteenth Century A Cautious Recovery

In many respects the second half of the eighteenth century was a relatively prosperous era for the Southern Netherlands. The Habsburg empress Maria- Theresa came to represent an international political climate which afforded the Austrian Netherlands a period of peace and stability. Moreover, the position of the Habsburgs on the international stage was emboldened by the Treaty of Aix-la-Chapelle (1748), allowing the government to introduce a cautious but efficient customs policy. For the first time since 1648, the customs administration developed a pragmatic-mercantilist trade policy in support of the nation’s domestic industries.1 Seen in hindsight this policy may appear rather incoher- ent, particularly owing to its countless obscure regulations and exceptions, yet it nonetheless may have been a huge step towards achieving import-substitu- tion in several strategic sectors and according to some even to an export-driven growth.2 Moreover, the local administrators – though they were elected by and accountable to the Habsburg emperors – seemed to be genuinely concerned about this small corner of the empire and appeared to recognize its economic potentials. Likewise, the Austrian Netherlands were granted a larger degree of self-government than were the Habsburg hereditary lands.3 Although there is no small degree of dispute regarding the condition of the Austrian Netherlands’ international trade flows, a somewhat broader consen- sus exists concerning the nation’s general economic situation. For the decades before 1750 historians usually agree that economic life was, in virtually every respect, bleak and stagnant but that circumstances subsequently began to

1 It should be noted that the term “industry” needs to be taken with a pinch of salt. The manu- factories of this era did not yet know the rigid division of labour that would arise during the nineteenth century. 2 Catharina Lis and Hugo Soly, “Different Paths of Development. Capitalism in the Northern and Southern Netherlands During the Late Middle Ages and the Early Modern Period,” Review. A Journal of the Fernand Braudel Center for the study of economics, historical systems, and civilizations 20, no. 2 (1997). 3 The Prince-Bishopric of Liège was not included in the Austrian Netherlands (although it would later be part of Belgium) and this policy thus not applied to Liège.

18 Chapter 2 improve. Historians assume that the economy of the Southern Netherlands gradually reoriented during the second half of the eighteenth century. Although difficult years were still to follow, such as the period 1771–1775 (according to Hasquin) and the years immediately after the Brabantine Revolution, these interludes occurred amidst periods when the nation’s industries were other- wise flourishing.4 The economy in general certainly appeared to fare well during the years 1780–1785.5 According to Chris Vandenbroeke the Habsburg economy was performing better in terms of human capital, agricultural productivity, population growth and transport infrastructure than were the respective economies of neighbouring countries.6 Agriculture still accounted for approximately half of the gross domestic product – as was the case through- out most of Europe at the time.7 But while agriculture certainly seemed to do well, the emerging urban industries – in the view of certain prominent economic historians (Van der Wee, Soly) – formed another backbone of the economic recovery after 1748. Also, certain key developments in international relations were beneficial for the position of the Austrian Netherlands. Events like the four years’ war between the Dutch Republic, Great Britain and France, all of whom had entered the conflict as a result of the American War for Independence, pre- sumably created an opening for the neutral Austrian Netherlands in international trade. Previous years had seen the Southern Netherlands relegated to a generally passive role, its actions, especially those related to international trade, being dependent on the interests of more powerful nations. Every deci- sion could lead to opposition and reprisals from other states. It was only in the second half of the eighteenth century that the Habsburg government became capable (aided by several notably bright technocrats) of developing its own trade policy. The influence of international politics upon domestic economic affairs had not played out, of course. Competition between nations remained

4 Hervé Hasquin, “Nijverheid in de Zuidelijke Nederlanden, 1650–1795,” in Algemene Geschiedenis der Nederlanden (Haarlem: 1979), 158. 5 Hubert Van Houtte, “Contribution à l’Histoire Commerciale des Etats de L’empereur Joseph II (1780–1790),” Vierteljahrschrift für Sozial- und Wirtschaftsgeschichte 8 (1910): 355. 6 G. Dejongh and Y. Segers, “Een Kleine Natie in Mutatie. De Economische Ontwikkeling van de Zuidelijke Nederlanden/België in de Eeuw 1750–1850,” Tijdschrift voor Geschiedenis 114 (2001): 175, Herman Van der Wee and Eddy Van Cauwenberghe, Productivity of Land and Agricultural Innovation in the Low Countries (1250–1800) (Leuven: Leuven University Press, 1987), Vandenbroeke, “The Regional Economy,” 163. 7 Erik Aerts, “Economische Interventie van de Centrale Staat in de Spaanse en Oostenrijkse Nederlanden (1555–1795),” in Gouvernance et Administration dans les Provinces Belgiques du XVIe au XVIIIe Siècle, ed. S. Dubois and J. Yante (Brussels: 2009), 115.