From Commons to Capital: The Power Struggles Behind Europe’s Shift in Property Rights

Introduction

In one of the most dramatic upheavals in European history, the enclosure of common lands in England was a violent turning point in the concept of property. Once a shared resource for all, these lands were suddenly transformed into private domains, enriching a few at the cost of impoverishing the many. As R.H. Tawney famously described it, the Enclosure Movement was nothing short of a “revolution of the rich against the poor,” a ruthless exercise in power that forever changed the relationship between people and land​.

But how and why did this revolution take place? In this post, we’ll explore the political forces that enabled the Enclosures, examine the human cost of this shift, and contrast it with the ethical, communal land systems of Islamic law.


1. The Pre-Enclosure Balance of Power

Before the Enclosures, the idea of land as a communal resource was woven into the very fabric of rural life. The king, typically, acted as a balancing force between the wealthy aristocracy and the peasantry, often siding with the common people to preserve his own power. As Tawney noted, the idea that the powerful might trample over the weak was not new, but the large-scale privatization of the commons created unprecedented levels of displacement and suffering​.

For centuries, common land was a lifeline for rural communities—people grazed their livestock, gathered firewood, and grew food on these shared lands. But all this changed in the 16th and 17th centuries when wealthy landowners began enclosing these commons, fencing them off for private use. This wasn’t just about reorganizing land; it was a complete upending of social structures that had existed for generations.


2. The Aristocratic Push for Enclosures: The Glorious Revolution and Beyond

The Glorious Revolution of 1688 marked a key turning point in this power struggle. The aristocracy, having supported the return of the monarchy after years of civil war and political chaos, demanded concessions from the king in return for their loyalty. What they wanted—and what they got—was control over vast tracts of land, with the right to privatize these common resources.

In Tawney’s evocative description, this was a victory for the aristocracy, who had long been pushing for greater control over land and wealth, but it came at a steep cost to the peasants, who were left landless and desperate. The political shift of the Glorious Revolution had weakened the monarchy’s ability to resist these demands, and the aristocrats exploited this weakness to the fullest​.


3. The Human Cost: A Revolution Against the Poor

The consequences of the Enclosures were immediate and devastating. As common lands were fenced off and transformed into private property, countless peasants were thrown off the land. They were, in Tawney’s words, “cast adrift,” forced to seek their fortunes in rapidly growing urban centers or to eke out a living as wage laborers on what had once been their own land​.

Deprived of their rights to access common lands, the poor had little choice but to sell their labor to survive. In the dark and smoky factories of the Industrial Revolution, they toiled in what William Blake called “Satanic Mills,” places of grinding exploitation where human lives were sacrificed for the profits of the wealthy. Enclosures didn’t just change land ownership; they transformed the very lives of the poor, forcing them into wage slavery and stripping them of their dignity.


4. The Absurdity of Modern Property Notions

Modern Western property law, with its emphasis on individual ownership, often stretches into absurdity. As Kogl (2005) points out, the notion that merely landing on an island makes one the owner of that land is a deeply flawed idea. This mindset echoes through history, even in the naming of the American continents after the Italian explorer Amerigo Vespucci. Despite the fact that these lands were home to vast indigenous populations with their own civilizations, the act of “discovery” by a European was enough to claim ownership and impose a foreign name​.

This idea—that someone can simply arrive and declare ownership—demonstrates the arrogance embedded in modern property concepts. The indigenous peoples, who had lived on these lands for thousands of years, were dispossessed without any recognition of their rights. This echoes the Enclosure Movement, where the rich fenced off lands that had long belonged to rural communities. In both cases, the original inhabitants were rendered invisible, and their rights dismissed.


5. Islamic Property Law: Ethical Ownership for Public Good

In contrast to the Western shift toward privatization, Islamic law views property as a trust from God (Amana), and ownership is based on the ability to benefit the community. In Islam, land is not simply a commodity to be hoarded or exploited; it must serve a higher purpose.

One of the most illustrative principles of Islamic law is the concept of reviving dead land. If someone can make barren land productive, they are entitled to own it—not because they simply claim it, but because they bring it back to life for the public good. Ownership in Islam is deeply tied to the idea of stewardship, and it is granted not for personal gain but for the benefit of society.

The waqf system, where land is endowed for public projects such as schools, hospitals, or infrastructure, further highlights the communal responsibility of landowners. The use of land is always oriented toward serving the needs of the community, and wealth is redistributed through zakat to ensure that those in need are not left behind.


6. Conclusion: A More Just Approach to Property

The transformation of property rights in Europe was not just an economic change; it was a profound injustice. The Enclosures robbed the poor of their livelihoods, forcing them into lives of labor and misery in the new industrial age. The absurdity of modern property notions—where land can be claimed simply by arriving—further highlights the flaws in this system.

By contrast, Islamic law offers a more ethical approach, where ownership is granted based on responsibility and the ability to benefit society. In a world where inequality and exploitation continue to plague our economic systems, perhaps it’s time to revisit these more just and humane approaches to property.


On the Vital Importance of Understanding International Financial Architecture

[bit.ly/AZifa1] Lecture 1 on Rise and Fall of the Gold Standard, on Friday 4th May 2018 in AR Kemal Rm at PIDE, by Dr. Asad Zaman, VC PIDE. 1hr 20m Video Lecture, shortlink for Lecture 2:bit.do/azifa3. These two lectures are detailed. A single 50m lecture for general public, with a 2000 word summary is available from: Understanding International Finance.

3100 word summary of lecture:

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The Great Transformation in European Thought

{bit.ly/AZGTET} Our Prophet Mohammad SAW made dua both for the acquisition of useful knowledge, and for protection from useless knowledge.  Useful knowledge is that which enters our heart, and advances us in our spiritual journey towards God.  Many types of knowledge can be harmful, and distract us from progress towards achieving the purpose for which we have been given a brief life on this Earth. For example, it is narrated that “Whoever acquires knowledge not learning it except to achieve some worldly gain will not perceive the fragrance of Paradise on the Day of Judgment.” [Ahmad, Saheeh]. Today, Western dominance of the world has led all of us to be deeply influenced by Western conceptions about knowledge, which are precisely the opposite: Knowledge is useful only if it leads to worldly gains. The stark contrasts between Western and Islamic ideas about knowledge and education are highlighted in the first lecture on my course on Introduction to Statistics: An Islamic Approach. The course itself has been constructed to demonstrate that, because of this contrast, it is essential for Muslims to construct alternatives to Western educational models.

Because Western conceptions of knowledge have become deeply embedded in our hearts through the process of a Western education, it is not enough to oppose them by confronting them with Islamic alternatives. Rather, dislodging these ideas from our hearts requires a deeper and more painful process of deconstruction. This involves learning the historical processes which led to the creation of modern secular European ways of thinking which currently dominate the world.  In this complex and multi-threaded story, one essential element is described by Karl Polanyi’s classic “The Great Transformation: Political and Economic Origins of Our Times.” Polanyi describes how the market society emerged in Europe after crushing traditional society, and replacing the traditional social values of cooperation and responsibility by individualistic market values which favor commercialization of all things, including humans and social relationships. My 30 page paper on “The Rise and Fall of the Market Economy” in Review of Islamic Economics, Vol. 14, No. 2, 2010, pp. 123-155 provides a summary of Polanyi, bringing out aspects relevant to Islamic Economics. In this post, I will provide a much shorter summary of 1000 words, which has been among the top 10 posts of a leading heterodox economics blog (RWER Blog) for several years, attracting about 1000 hits every month. The post below is revised and updated version of the original post on RWER blog linked in previous sentence.

The central theme of Polanyi’s book is a historical description of the emergence of the market economy as a competitor to the traditional economy. The market economy won this battle, and ideologies supporting the market economy won the corresponding battle in the marketplace of ideas. Today, the victory of the market economy is so complete that it has become difficult for us to imagine societies where the market does not play a central role. Polanyi argues that contrary to popular belief, markets have been of marginal importance in traditional societies throughout history. The market economy emerged after a prolonged battle against these traditions. As Polanyi clarifies, this is not a good development. The commodification of human beings and land required by the dominance of the market has done tremendous damage to society and environment. The value of human life has been degraded to their earning power. This enables the grim calculations made by Ambassador Albright that sacrificing half a million Iraqi children is worth the control of oil. Similarly, precious rainforests, coral reefs, plants, fish, and animal species which took millions of years in the making, and cannot be replaced at any price, are reduced to the value of timber, food or chemicals. This is the root cause of the social and environmental catastrophes we currently face. The analysis of Polanyi can be summarized in the six points listed below.

1: All societies face the economic task of producing and providing for all members of society. Modern market societies are unique in assigning this responsibility to the marketplace, thereby creating entitlements to production for those with wealth, and depriving the poor of entitlement to food. All traditional societies have used non-market mechanisms based on cooperation and social responsibility to provide for members who cannot take care of their own needs. It is only in a market society that education, health, housing, and social welfare services are only available to those who can pay for it.

2: Market mechanisms for providing goods to members conflict with other social mechanisms and are harmful to society. They emerged to central prominence in Europe after a protracted battle, which was won by markets over society due to certain historical circumstances peculiar to Europe. The rise of markets caused tremendous damage to society, which continues to this day. The replacement of key mechanisms which govern social relations, with those compatible with market mechanisms, was traumatic to human values. Land, labour and money are crucial to the efficient functioning of a market economy. Market societies convert these into commodities causing tremendous damage. This involves (A) changing a nurturing and symbiotic relationship with Mother Earth into a commercial one of exploiting nature, (B) Changing relationships based on trust, intimacy and lifetime commitments into short term impersonal commercial transactions, and (C) Turning human lives into saleable commodities in order to create a labor market.

3:  Unregulated markets are so deadly to human society and environment that creation of markets automatically sets into play movements to protect society and envirnoment from the harm that they cause. Paradoxically, it is this counter-movement, this opposition to markets, that allows markets to survive. If this was not present, markets would destroy the society and the planet. For example, the Great Depression caused the collapse of many free market institutions, and the government stepped in to prop them up and substitute for them. Similarly, only massive government intervention save the world from a major economic crisis following the Global Financial Crisis of 2007. This protective, anti-market, move allowed capitalism to survive. This is called the “Double Movement” by Polanyi, who says that the history of capitalism cannot be understand without looking at both sides — the forces trying to liberate markets from all regulations, and the forces fighting to protect society from the harmful effects of unregulated markets.

4: Certain ideologies, which relate to land, labour and money, and the profit motive are required for efficient functioning of markets. In particular, both poverty, and a certain amount of callousness and indifference to poverty are required for efficient functioning of markets. Capitalist economics require sales, purchase, and exploitation of labor, which cannot be done with creating poverty, and using it to motivate workers. The sanctification of property rights is another essential feature of markets. Thus, the existence of a market economy necessitates the emergence of certain ideologies and mindsets which are harmful to, and in contradiction with, natural human tendencies.

5: Markets have been fragile and crisis-prone and have lurched from disaster to disaster, as amply illustrated by GFC 2007. Polanyi prognosticated in 1944 that the last and biggest of these crises in his time, the Second World War, had finally killed the market system and a new method for organising economic affairs would emerge in its wake. In fact, the Keynesian ideas eliminated the worst excesses of market-based economies and dominated the scene for about 30 years following that war. However, the market system rose from the ashes and came to dominate the globe in an astonishing display of power. This story has been most effectively presented by Naomi Klein in The Shock Doctrine: The Rise of Disaster Capitalism.

6: Market economies require imposition by violence — either natural or created. As noted by the earliest strategists, deception is a crucial element of warfare. One of the essential ingredients in the rise of markets has been a constant battle to misrepresent facts, so that stark failures of markets have been painted as remarkable successes. There are a number of strategies commonly used to portray an economic disaster as progress and development. Without this propaganda, markets could not survive, as the forces of resistance to markets would be too strong. For example, a fundamental message of modern economics textbooks is that capitalism has created tremendous wealth and unprecedented progress. In fact, notwithstanding capitalist propaganda to the contrary, this growth has been extremely costly. We have sold planet Earth and the future of our children, and are celebrating the proceeds without taking into reckoning the costs. Accounting for the costs of destruction of environment, animal species, and human society, shows that that costs of growth have been far higher than the benefits. See “Evaluating the Costs of Growth” (September 21, 2014). Real World Economics Review, issue 67, 9 May 2014, page 41-51.. Available at SSRN: https://ssrn.com/abstract=2499115.

A 28 minute video-talk expanding on the points made above is available from You-Tube:

Supplementary Readings and Videos:

For links to articles, videos, and posts, explaining various aspects of Polanyi, see Resources for Study of Polanyi’s Great Transformation

My full article, which provides further details of this brief sketch,  can be downloaded from the link below:   “The Rise and Fall of the Market Economy,” Review of Islamic Economics, Vol. 14, No. 2, 2010, pp. 123–155

Polanyi’s analysis cannot be understood by modern economists because it is based on methodological principles radically different from those currently in use.  The Methodology of Polanyi’s Great Transformation explains these principles, which demonstrate the necessity of considering historical and cultural context of economic theories. Polanyi’s analysis provides the basis for a radically different approach to economics, which considers politics, society, environment, and economics as inter-related subjects which cannot be understood in isolation.

The relationship between the Great Transformation and the looming environmental catastrophe which threatens the future of humanity on planet Earth is discussed in Zaman, Asad, Markets and Society (September 17, 2015). Pre-publication Draft of “Unregulated Markets and the Transformation of Society” Chapter 18, Routledge Handbook of Ecological Economics: Nature and Society. Editor Clive Spash. 2016. Available at SSRN: https://ssrn.com/abstract=2662167. A 50m video talk on this topic is available from https://www.youtube.com/watch?v=EoESaHpxvM8