The Teutonic Knights, a military order which was powerful in the south of the Baltic Sea, was strong in Livonia. The order built castles and strongholds and owned a lot of land. The Teutonic Knights also had many soldiers and strong armed forces.
Most of the land in Livonia was owned by German noblemen. The peasants had very hard lives. They were heavily taxed and had to do a lot of labour service on the estates. All this led to a peasant uprising in the middle of the 14th century, which was brutally put down by the aristocracy.
The clergy, under the Bishop of Riga, were also very influential in Livonia.
The German christianised the people of Livonia at the end of the 12th century. The region was conquered during a crusade. The Germans founded many towns. The first town to be founded was Riga in 1201. It was built in the German manner, with a harbour, a square and a church. Throughout the Middle Ages, Riga was an important place for the German merchants and the Hanseatic League. Mainly grain and flax was exported from the town. The German cogs arrived with salt, cloth and spices. The trade with the German towns often went by way of Visby and Kalmar.
If you would like to know more about Riga, read "Town Life. Towns on the Baltic Sea".