Unformatted text preview: xpansion Did Major issue in early modern Europe: security of property rights for
merchants and control of entry into overseas trade. These economic
institutions determined by the distribution of political power.
In absolutist monarchies, less security of property rights and crown
monopoly of foreign trade.
Development of constraints in Britain and the Netherlands related to
con‡ict between merchants and Crown (in the case of the
Netherlands the Hapsburgs).
Institutional change driven by opening of Atlantic trade which
enriched and empowered those with an interest in restraining power –
English Civil War and Glorious Revolution, Dutch Revolt. James A. Robinson (Harvard) The Emergence of Modern Economic Growth: A Comparative and Historical Analysis: L
September 30, 2009
23 / 29 Why did Constitutional Regimes Arise only in some places?
Thus rise of Western Europe was in fact the rise of Atlantic Europe.
But not all Atlantic nations gained.
Changing environment: opening of trade routes to New World and
Asia via the Atlantic.
Di¤erent e¤ects of this new economic opportunity depending on
economic and political institutions
In countries with access to the Atlantic and with some degree of entry
into foreign trade (i.e., Britain and the Netherlands): new groups of
In countries with tight crown monopoly of trade (i.e., Spain, Portugal,
France), the monarchy and its allies became the main bene…ciaries
For countries without access to the Atlantic; no direct bene…ts and
indirect costs through diversion of trade
James A. Robinson (Harvard) The Emergence of Modern Economic Growth: A Comparative and Historical Analysis: L
September 30, 2009
24 / 29 Institutional Change The enrichment of new groups outside of the Royal coalition was
crucial. They had vested interest is more secure property rights,
The enrichment of these groups through inter-Oceanic trade
strengthened their resources and political power and culminated in the
Dutch Revolt and in Britain the Civil War and Glorious Revolution. James A. Robinson (Harvard) The Emergence of Modern...
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This document was uploaded on 02/28/2014 for the course ECON 2328 at Harvard.
- Fall '09