AUA Why Nations Fail - Daron Acemoglu | Page 125

century, the new economic opportunities of the seventeenth, eighteenth, and nineteenth centuries would also have fundamentally different implications for these different parts of Europe. Because in 1600 the grip of the Crown was weaker in England than in France and Spain, Atlantic trade opened the way to the creation of new institutions with greater pluralism in England, while strengthening the French and Spanish monarchs. T HE C ONTINGENT P ATH OF H ISTORY The outcomes of the events during critical junctures are shaped by the weight of history, as existing economic and political institutions shape the balance of power and delineate what is politically feasible. The outcome, however, is not historically predetermined but contingent. The exact path of institutional development during these periods depends on which one of the opposing forces will succeed, which groups will be able to form effective coalitions, and which leaders will be able to structure events to their advantage. The role of contingency can be illustrated by the origins of inclusive political institutions in England. Not only was there nothing preordained in the victory of the groups vying for limiting the power of the Crown and for more pluralistic institutions in the Glorious Revolution of 1688, but the entire path leading up to this political revolution was at the mercy of contingent events. The victory of the winning groups was inexorably linked to the critical juncture created by the rise of Atlantic trade that enriched and emboldened merchants opposing the Crown. But a century earlier it was far from obvious that England would have any ability to dominate the seas, colonize many parts of the Caribbean and North America, or capture so much of the lucrative trade with the Americas and the East. Neither Elizabeth I nor other Tudor monarchs before her had built a powerful, unified navy. The English navy relied on privateers and independent merchant ships and was much less powerful than the Spanish fleet. The profits of the Atlantic nonetheless attracted these privateers, challenging the Spanish monopoly of the ocean. In 1588 the Spanish decided to put an end to these challenges to their monopoly, as well as to