The Economic Recovery of Portugal Under Fernando …

Years: 1372 - 1383

The Economic Recovery of Portugal Under Fernando I (1367–1383)

By the time Fernando I ascended the Portuguese throne in 1367, the kingdom was still reeling from the devastating effects of the Black Death (1348–1349), which had severely disrupted economic productivity and caused widespread labor shortages. To counter these challenges, Fernando enacted sweeping economic reforms, aimed at revitalizing agriculture and maritime trade.

The Law of the Sesmarias (1375): Agricultural Revival

To stimulate food production and rebuild the country’s wealth, Fernando I issued the Law of the Sesmarias in 1375, which:

  • Obliged all landowners to cultivate unused land or else sell or rent it to someone willing to do so.
  • Mandated that all unemployed individuals take up agricultural work, ensuring that no able-bodied person remained idle.
  • Increased food production, helping stabilize Portugal’s economy in the wake of the plague’s labor shortages.

These measures revitalized Portuguese agriculture, leading to a more self-sufficient economy and a stronger tax base for the monarchy.

Maritime Expansion and the Merchant Fleet

Recognizing Portugal’s geographical advantage in Atlantic trade, Fernando I also took decisive steps to strengthen the Portuguese merchant fleet:

  • Shipbuilding Incentives – Allowed shipbuilders constructing vessels over 100 tons to cut timber from royal forests, reducing the cost of large-scale ship production.
  • Tax Reductions for Trade – Granted partial tax exemptions on the first voyage of any merchant ship over 100 tons, encouraging investment in larger, more capable vessels.
  • Maritime Insurance System – Established a state-backed maritime insurance company, requiring shipowners of vessels over 50 tons to contribute 2% of their profits. In return, they received compensation in the event of shipwrecks, reducing the financial risks of seaborne trade.

Legacy: Strengthening Portugal’s Economic and Maritime Power

Through these policies, Fernando I rebuilt Portugal’s agricultural base and laid the foundations for the kingdom’s future naval and commercial expansion.

  • The Law of the Sesmarias restored economic stability and productivity, reinforcing Portugal’s agricultural self-sufficiency.
  • The promotion of shipbuilding and the merchant fleet helped position Portugal as a maritime power, setting the stage for the later Age of Exploration.
  • The creation of a maritime insurance system marked an early innovation in risk management, reflecting Portugal’s increasing dependence on sea-based commerce.

Despite his political challenges, Fernando’s economic and naval policies strengthened Portugal’s long-term development, ensuring its resilience and growth in the late medieval period.

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