16th to 18th centuries Economy of Madrid

a porcelain flower centerpiece, made @ buen retiro royal porcelain factory, 18th century


seat of government

after philip ii made madrid capital city of spanish empire in 1561, city experienced rapid growth. spain (like many other european countries) continued centralize royal authority, particularly under bourbon monarchs, madrid took on greater importance center of administration spain. described economic parasite , sucking in resources of empire without directly generating wealth.

manufacturing

during period madrid became important nucleus of artisanal activity. proto-capitalist institutions established, including 5 great guilds (cinco gremios mayores) or banco de san carlos, producers royal household such porcelana del buen retiro (porcelain) , fábrica de tabacos (tobacco). supply of goods city major concern of national , municipal governments, , accomplished through complex network of agents , public , private institutions, functioning along mercantilist lines , centred upon plaza mayor , number of other marketplaces.

during transition capitalism, madrid, unlike other cities such london , paris, did not become great centre of trade. not suitable location trade @ time, due geographical position, far sea or navigable rivers. madrid remained largely political , social centre, , served market luxury goods , agricultural produce of castile – grain.