trajectory, culminating in the Industrial Revolution.8 In their terms, England was the first country to move to having 'inclusive' or 'pluralistic' rather than 'extractive' political institutions. Note that other West European societies – for instance, Spain – failed to do this. As a result, the outcomes of European colonization in North and South America were radically different. The English exported inclusive institutions; the Spaniards were content to superimpose their extractive ones on top of those they took over from the Aztecs and Incas.
Niall Ferguson's "The Great Degeneration" discusses the evolution of political institutions in England, which transitioned to inclusive and pluralistic systems that fostered development. This shift was pivotal, leading England to become the first nation to embrace such structures, contrasting starkly with Spain and other West European societies that maintained extractive institutions. Ferguson argues that this divergence significantly influenced the historical outcomes of European colonization in the Americas.
In North and South America, the English model promoted inclusive governance, which helped to establish more equitable societies. In contrast, the Spanish approach retained extractive systems, prioritizing control and exploitation. This fundamental difference in political institutions not only affected the colonies' progress but also laid the groundwork for the divergent paths of development seen in these regions over time.
