Colonialism

Question 1

Define colonialism

Answer 1

Colonialism > a nation invading another > aim of taking control of political power, land, and resources.

Question 2

Name two factors that determine the choice of where to set up a colony

Answer 2

1. Wind (Feyer and Sacerdote, 2001)
2. Mortality (AJR, 2001)

Question 3

Feyer and Sacerdote (2001)

Answer 3

During the Age of Sail, wind was instrumental in travelling by ships > islands located on a route with prevailing wings could be easily revisited.

Fewer and Sacerdote (2001) found a positive relationship between the years spent as a European colony, and current GDP > longer European colonial exposure is good for current inhabitants

Question 3

What did Feyer and Sacerdote (2001) argue the benefit of colonial power depend on?

Answer 3

• Found that the positive relationship is dependent on the colonial power.
• Years under U.S., British, French, and Dutch rule having more beneficial effects than Spanish and Portuguese rule.

One explanation > the system each power used.
– Early Spanish colonialism used ‘encomienda’ system, which allowed the ‘conquistadores’ to enslave native to work in plantations.
– Whereas under British rule, institutions such as parliaments, rule of law and the protection of protect rights were transferred to these colonies, > thus explaining how colonial years after 1700 were more beneficial.

Question 4

The mortality hypothesis

Answer 4

AJR (2001)

the mortality faced by Europeans in different parts of the worlds and colonies have determined their choice on where to settle and what institutions to create.

Question 5

AJR (2001) > Mortality Hypothesis

Answer 5

Places where Europeans were able to live and stay healthy, they were more likely to build better economic and political institutions.

Whereas, in areas where Europeans settles were unable to go, they set up ‘extractive’ institutions, which led to lower economic growth within those areas

Question 6

AJR (2001) > institutions and colonialism

Answer 6

Institutions matter when it comes to economic growth.

I.e. South and North Korea, or East and West Germany > evidence how part of a country stagnated under central planning, while another prospered with a market economy.

Question 7

Where can we see the long term impact of colonialism on economic growth?

Answer 7

(AJR 2001)

US and New Zealand > As settlers were able to live > developed institutions which enforced the rule of law and encouraged investment > even after independence > one of the richest in the world.

Congo or the Gold Coast > settlers unable to live > extractive state with the intuition of transferring resources were created > detrimental to investment and economic progress

Question 8

(Banerjee and Iyer 2005)

Answer 8

The land tenure system in India

Under British rule > areas’ proprietary rights in land were given to landlords > lower agricultural investments and productivity in post-independence period > compared to the areas where those rights were given to cultivators.

> > Historical difference in the institutions created in each area, led to very different policy choices, and thus different economic outcome in both the short and long term

Question 9

M&P (2016)

Answer 9

Institutions were not reformed by now < ethnic partitioning of states by Europeans powers.

Europeans colonial powers took the decision to end colonialism, they drew up new countries and their borders.

Partitioning > civil conflict

Question 10

Horowitz (1985)

Answer 10

Ethnic partitioning led to foster the ideology of secession and nationalism.

leading to split groups being used by governments to destabilise neighbouring countries.

Ethnic wars > led to deadly, economically harmful, and devastating effects for the victims and local community.

Question 11

Name reasons why colonial-era institutions have not been reformed by now

Answer 11

1. The land tenure system (Banerjee and Iyer 2005).
2. Ethnic partitioning > civil and ethnic conflict. (M&P, 2016)