Portugal's empire in Asia makes its monarchy the richest in Europe and makes Lisbon the commercial capital of the world.

This prosperity is more apparent than real, however, because the newfound wealth does not transform the social structure, nor is it used to lay the basis for further economic development.

The country's industry is weakened because the profits from Asian monopolies are used to import manufactured goods.

As the empire in Asia is a state-run enterprise, no middle class or commercial sector independent of the crown of any consequence emerges as it had in other parts of Europe.

Moreover, the persecution of the Jews, who possess vital technical skills, robs the country of an important force for modernity and reinforces feudal elements.

Adding to the drain on the economy is the large amount of money spent on sumptuous palaces and churches.

Because the wealth from the discoveries has not produced a middle class of competent, trained individuals to whom the affairs of state gradually fall, leadership in Portugal remains in the hands of the king and the military aristocracy.

Moreover, the imperial system has intensified the already centralized system of government, which means that the quality of national policy is closely tied to the abilities of the top leadership, especially the king himself.

Unfortunately, the House of Avis does not produce a king of great merit after Joao II, and Portugal enters a long period of imperial decline.