ASPECTS MERCHANTILISM ACCORDING TO ELI F HECKSCHER

  Question.Explain five aspect of Merchantilism according to Eli F Heckscher       

   El Filip Heckscher was a Swedish economist historian who was born in November 24,1879 with his father Isodor Heckscher who was a cansul.General stationed in Stockholm beloved on other Rosa Meyer.Eli Filip Heckscher passed into different level of education forstance he graduated from Upppsala  University in 1904 where he got dictorial degree and in 1907 he received his philosophical doctrine (Ph D).He become a professor in 1909,Heckscher died in November 26, 1952.During his life time Heckscher several things to economic theory in his state.Eli Heckscher explain different publication that how trading advantanges of different state was a result of different factors historically.  

Heckscher wrote a last publication known as “Merchantilism 1935” because he was very interested with the history of protectionism.Protectionism was a system where by merchantile states as Britain,Portugal,Spain and other state put trade barrier so as to secure their market.Also Heckscher on his book explained five aspects of merchantilism as conducted in Europe.

The term merchantilsm for the first time was called by Adam Smith and later on called the whole process of merchantilism as merchantile system and also merchantilism was explained by different scholars.Forexample Bourgeoisies claimed that “merchantilism was not initial stage of capitalism”due to that Bourgeosies considered merchantilism as normal expansion of European nation over other nation as in African continent and America.But on other hand Marxist scholar claimed that Merchantilism was the first to the development of capitalism in Europe.

Merchantilism in Europe began 15 th Century to 18 th Century .According to Heckscher defined merchantilism as an economic policy and economic ideas.Heckscher meant that merchantilism was a policy applied by different European merchantile nation as Britain,Portugal and france so as to generate profit.

During 15th Century was a period when merchantilist state started the accumulation of bullion.During that time was where European merchantilist state started to support  Merchants.Forexample Vasco Da Gama was sponsored by his state in 1498 Portugal also Christopher Clombus Supported by his state and discovered new word in 1492.

There fore,merchantilism can be defined as an international trading system in which merchantile power as Britain,Portugal,Spain and others accumulate wealth through illegal ways such as  plundering,enclosure system,also slave trade.

According to Eli Filip Heckscher in his publication “Merchantilism vol I” he explained five aspects of merchantilism as follows.

           Firstly,merchantilism as a system of power ,in order for state to be powerful  economically should have power  so as to generate profit by accumulating wealth,as during merchantilism wealth was accumulated through illegal way as plundering,there fore Heckscher on his publication claim that wealth in the state accumulated through power  so due to that the decentralized state which was under feudal lords where unified so as to gain more power that can be beneficial for accumulation of wealth in the state so Heckscher insist more power to the state than wealth.

          Also,merchantilism as  system of unification,according to Eli Filip Heckscher unification was a one aspects among five aspects of merchantilism where by decentralized state which was  under  feudallords also town council was united to form a single centralized state which gave room for economic development since they used single currency also they formed common market.Heckscher on his book show the ideas of Germany scholar  Raphael who argue that “it was not only economic unity for merchantilist but economic power”so due to that the decentralized state existed during feudal system were united in order to be strong economically.

           Futher more,merchantlism as protectionism system,where by medieval town used protectionism to secure their interest so each merchants state put trade barrier over other state so as to protect market  example the imposition of high tarrifs.Heckscher show :protectionism was in fear goods” meant that European merchantile state impose heavy taxes to  foregn imported goods  so as to secure their market.

             Merchantilism as monetary system. Heckscher in his publication show that the circulation of money was important toward economic development European mercantile states.Therefore during merchantile era especially 18 Century European states started use money for economic hence money become a medium means of accumulation of wealth.Therefore, a view of development seems to be tied up a great circulation of money.

             Merchantilism as conception of the society,merchantilism was considered as plan of building strong society  it does not regard the welfare of human being. Right of people was not considered but only things considered was building society through development therefore,exploitation was common during mercantile era.Due to that sense Heckscher argue that to build strong society ,human right is not issue to be considered.

             In summary, mercantilism has brought  effects in Africa, America  and Europe as in Africa mercantilism brought many negative impact such as it has paved the way for colonialization of Africa also exploitation of African resources as Gold and Silver also Many African during mercantilism was shipped to new word for working in plantation and mines which was established after the discover of new world.It estimated that about 131,000 were  shipped from Africa to America in 1519 to 1866.Apart from negative impact of merchantilism in Africa mercantilism in Europe was blessing since influenced the development of town and city as Liverpool, Manchester also financial institution such as bank like Backlays bank in 1756.

Pia Fungua Link Hiyo for more details Usisahau kusubscribe na kushare

https://youtu.be/DHFUOagZhWA

https://youtu.be/DHFUOagZhWA