THE LONG PROCESS OF DEVELOPMENT Douglass North once emphasized that development takes centuries, but he did not have a theory of how and why change occurs. This groundbreaking book advances such a theory by examining in detail why England and Spain developed so slowly from 1000 to 1800. A colonial legacy must go back centuries before settlement, and this book points to key events in England and Spain in the 1260s to explain why Mexico lagged behind the United States economically in the twentieth century. Based on the integration of North s institutional approach with Mancur Olson s collective action theory, Max Weber s theory of value change, and North s focus on dominant coalitions based on rent and military in In the Shadow of Violence, this theory of change leads to exciting new historical interpretations, including the crucial role of the merchant-navy alliance in England and the key role of George Washington s control of the military in 1787. Jerry F. Hough is the James B. Duke Professor of Political Science at Duke University. He has taught at Duke since 1973. He previously taught at the University of Toronto and the University of Illinois at Urbana-Champaign, and he has served as a senior Fellow at the Brookings Institution. Hough received his PhD from Harvard University in 1961. His research has focused on the Soviet Union, the democratization of Russia and America, and nation building in the United States. He is the author of How the Soviet Union Is Governed ; Soviet Leadership in Transition ; The Struggle for the Third World ; Soviet Debate and American Options ; Democratization and Revolution in the USSR, 1985 1991 ; The Logic of Economic Reform in Russia ; and Changing Party Coalitions: The Mystery of the Red State Blue State Alignment. Robin Grier earned her PhD from George Mason University in 1995. She was an assistant professor of economics at Centro de Investigaci ó n y Docencia Econ ó micas (CIDE) in Mexico City before joining the University of Oklahoma in 1999. She became an associate professor of economics in 2004 and a professor in 2010. Grier s research has been published in the Journal of Development Economics, the Journal of Law and Economics, Economic Development & Cultural Change, Review of Development Economics, the Journal of Development Studies, Economic Inquiry, Public Choice, the Southern Economic Journal, Kyklos, Economía Mexicana, El Trimestre Econ ó mico, and Rationality and Society. Her area of specialization is the political economy of development in Latin America and Mexico.
The Long Process of Development Building Markets and States in Pre-industrial England, Spain, and Their Colonies JERRY F. HOUGH Duke University ROBIN GRIER Unive rsit y of Ok l a homa
32 Avenue of the Americas, New York, NY 10013-2473, USA Cambridge University Press is part of the University of Cambridge. It furthers the University s mission by disseminating knowledge in the pursuit of education, learning, and research at the highest international levels of excellence. Information on this title: /9781107063693 2015 This publication is in copyright. Subject to statutory exception and to the provisions of relevant collective licensing agreements, no reproduction of any part may take place without the written permission of Cambridge University Press. First published 2015 Printed in the United States of America A catalog record for this publication is available from the British Library. Library of Congress Cataloging in Publication Data Hough, Jerry F., 1935 The long process of development: building markets and states in pre-industrial England, Spain, and their colonies / Jerry F. Hough, Duke University; Robin Grier, University of Oklahoma. pages cm Includes bibliographical references and index. ISBN 978-1-107-06369-3 (hardback) 1. State, The Philosophy. 2. Political development. 3. Great Britain Politics and governmenty 1066 1485. 4. Spain Politics and government To 1479. 5. Great Britain Colonies America Administration. 6. Spain Colonies America Administration. 7. Economic development United States History 18th century. 8. Economic development Mexico History 18th century. I. Grier, Robin M. II. Title. JC131.H68 2014 338.9 dc23 2014020949 ISBN 978-1-107-06369-3 Hardback Cambridge University Press has no responsibility for the persistence or accuracy of URLs for external or third-party Internet Web sites referred to in this publication and does not guarantee that any content on such Web sites is, or will remain, accurate or appropriate.
Contents List of Tables and Figures Monarchs, 1037 1833 page vi vii Int ro du c t i on 1 1. The Collective Action Difficulties of Creating an Effective State 34 2. The Pre-State of England and Spain: The Importance of Manmade Geography 65 3. The Early State in England and Spain 101 4. The Minimally Effective State: England, Tax Revenue, and Colonization 137 5. Spanish Colonial Policy and the Transition to the Minimally Effective State 170 6. A Dominant Coalition in Transition: England and the Rise of the Merchant Navy Alliance after 1600 203 7. The English Colonies 243 8. Colonial Mexico 274 9. The Collective Action Problems of the Formation of the United States 305 10. The Collective Action Problems of the Formation of Mexico 342 11. The Implications for Development Theory 380 References 409 Index 437 v
Tables and Figures Tables 3.1 Export of Wool and Wool Cloth, 1371 1500, Bags of Wool and Equivalent Cloth, Selected Decades page 121 7.1 Population of the British Colonies in 1710, by Regions 250 7.2 The White Population of the Colonies, 1650 1770 259 11.1 Mexican Economic Development, 1980 2010 389 Figures 5.1 Reported Silver Production in Bolivia, in silver marks 193 5.2 Reported Silver Production in Mexico, in silver pesos 194 vi
Monarchs, 1037 1833 English Monarchs S ax on s Edward (the Confessor) 1042 1066 Harold II 1066 Nor man s William I 1066 1087 William II 1087 1100 Henry I 1100 1135 Stephen 1135 1154 Plantagenets Henry II 1154 1189 Richard I 1189 1199 John 1199 1216 Henry III 1216 1272 Edward I 1272 1307 Edward II 1307 1327 Edward III 1327 1377 Richard II 1377 1399 House of Lancaster Henry IV 1399 1413 Henry V 1413 1422 Henry VI 1422 1461 vii
viii Monarchs, 1037 1833 House of York Edward IV 1461 1483 Edward V 1483 Richard III 1483 1485 Tudors Henry VII 1485 1509 Henry VIII 1509 1547 Edward VI 1547 1553 Mary I 1553 1558 Elizabeth I 1558 1603 Stuarts James I 1603 1625 Charles I 1625 1649 Commonwealth Oliver Cromwell 1649 1658 Richard Cromwell 1658 1659 Stuarts (restored) Charles II 1660 1685 James II 1685 1688 William III 1689 1702 Mary II 1689 1694 Anne 1702 1714 House of Hanover George I 1714 1727 George II 1727 1760 George III 1760 1820 Castilian Monarchs Jiménez Dynasty Ferdinand I 1037 1065 Sancho II 1065 1072 Alfonso VI 1072 1109 Urraca 1109 1126
Monarchs, 1037 1833 ix House of Burgundy Alfonso VII 1126 1157 Sancho III 1157 1158 Alfonso VIII 1158 1214 Henry I 1214 1217 Ferdinand III 1 1217 1252 Alfonso X 1252 1284 Sancho IV 1284 1295 Ferdinand IV 1295 1312 Alfonso XI 1312 1350 Peter 1350 1369 House of Trastámara (1479 1555) Henry II 1369 1379 John I 1379 1390 Henry III 1390 1406 John II 1406 1454 Henry IV 1454 1474 Spanish Monarchs 2 Isabella I 1474 1504 Ferdinand V 3 (Regent) 1504 1516 House of Habsburg Charles I 1516 1556 Philip II 1556 1598 Philip III 1598 1621 Philip IV 1621 1665 Charles II 1665 1700 1 The Castilian kings also ruled the region of Le ó n from 1230 onward. Prior to then, Castilian kings had only occasionally ruled Le ó n. 2 As the text indicates, these dates can be misleading. Henry IV s death ushered in a civil war, and Isabella did not consolidate her power until 1479. 3 Succeeding to the throne of Aragon as Ferdinand II on January 19, 1479, Ferdinand ruled Castile as a regent of Joanna. Ferdinand also went on to rule Granada (1492) and Navarre (1515).
x Monarchs, 1037 1833 House of Bourbon Philip V 1700 1724 Louis I 1724 Philip V 1724 1746 Ferdinand VI 1746 1759 Charles III 1759 1788 Charles IV 1788 1808 Ferdinand VII 1808 House of Bonaparte Joseph I 1808 1813 House of Bourbon Ferdinand VII 1813 1833