Cover of Why Nations Fail by Daron Acemoglu, James A. Robinson - Business and Economics Book

From "Why Nations Fail"

Author: Daron Acemoglu, James A. Robinson
Publisher: Profile Books
Year: 2012
Category: Business & Economics

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Chapter 1: So Close and Yet So Different
Key Insight 3 from this chapter

English Colonization in North America: A Shift from Coercion to Incentives

Key Insight

England, as a minor European power, began colonizing North America almost a century after Spain, settling for regions lacking gold, silver, and dense indigenous populations suitable for forced labor. The first attempt at Roanoke (1585-1587) failed. In 1607, the Virginia Company's Jamestown settlers initially tried to replicate the Spanish model by attempting to coerce local chief Wahunsunacock for food and labor. This strategy proved unworkable due to the Powhatan Confederacy's decentralized nature and Wahunsunacock's resistance, including imposing a trade embargo.

Captain John Smith recognized the futility of the Spanish model in North America, noting the absence of gold and the inability to force indigenous peoples to provide sustenance; he stated, 'Victuals you must know is all their wealth.' He emphasized that colonists themselves needed to work, famously declaring 'he that will not worke shall not eat.' Without Smith's resourcefulness, the 'starving time' of winter 1609/1610 saw the Jamestown population plummet from five hundred to sixty, with instances of cannibalism.

The Virginia Company's subsequent attempt to impose draconian work regimes on English settlers through 'Lawes Divine, Morall and Martiall,' featuring death penalties for desertion or theft, also failed. The sparse indigenous population and vast frontier offered escape routes, limiting the company's ability to coerce settlers into harsh labor. This forced a dramatic shift in 1618: the introduction of incentives like the 'headright system' (50 acres per male settler), freedom from contracts, and the establishment of the General Assembly in 1619, giving adult men a voice in governance. Subsequent attempts to create hierarchical, elitist societies in Maryland and Carolina also collapsed as settlers demanded land and political rights, leading to assemblies and broader participation, which became the foundation for the United States' path to independence.

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