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 7: The Turning Point
Key Insight 3 from this chapter

The Glorious Revolution and the End of Absolutism

Key Insight

James I and Charles I sought to strengthen monarchy and establish absolutist institutions similar to those in Spain and France, aiming to increase their control over the economy through more extractive means, notably monopolies. The conflict with Parliament intensified in the 1620s, with Parliament scoring a victory in 1623 by passing the Statute of Monopolies, which prohibited the king from creating new domestic monopolies, though his authority over international trade monopolies remained.

Charles I intensified absolutist efforts after 1629, bypassing Parliament by levying forced loans, altering loan terms, refusing debt repayment, creating overseas monopolies, undermining judicial independence, and imposing 'ship money' taxes annually until 1640. His need for funds for conflict with Scotland forced him to call Parliament in 1640, leading to the Short and then the Long Parliament, which refused to dissolve. This ignited the Civil War in 1642, a struggle over political and economic institutions, where royalists often benefited from Crown-granted monopolies, while regions with weaker monopolies, like Birmingham's metallurgical industry, supported Parliament.

The Parliamentarians, led by Oliver Cromwell, defeated and executed Charles I in 1649, but this initially led to Cromwell's dictatorship, not inclusive institutions. The monarchy was restored in 1660, and Charles II and James II renewed efforts to establish absolutism. James II's attempts in 1688 triggered another crisis; a more united Parliament invited William of Orange and Mary to replace him. This 'Glorious Revolution' established a constitutional monarchy, enshrined by the Declaration of Rights (later the Bill of Rights) in 1689, asserting parliamentary supremacy and ending absolutism in England.

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