inclusive economic and political institutions, controlling
power became less central. In Austria-Hungary and in
Russia, as we saw in chapter 8, the monarchs and the
aristocracy had much to lose from industrialization and
reform. In contrast, in Britain at the beginning of the
nineteenth century, thanks to the development of inclusive
economic institutions, there was much less at stake: there
were no serfs, relatively little coercion in the labor market,
and few monopolies protected by entry barriers. Clinging to
power was thus much less valuable for the British elite.
The logic of the virtuous circle also meant that such
repressive steps would be increasingly infeasible, again
because of the positive feedback between inclusive
economic and political institutions. Inclusive economic
institutions lead to a more equitable distribution of
resources than extractive institutions. As such, they
empower the citizens at large and thus create a more level
playing field, even when it comes to the fight for power. This
makes it more difficult for a small elite to crush the masses
rather than to give in to their demands, or at least to some
of them. The British inclusive institutions had also already
unleashed the Industrial Revolution, and Britain was highly
urbanized. Using repression against an urban,
concentrated, and partially organized and empowered
group of people would have been much harder than
repressing a peasantry or dependent serfs.
The virtuous circle thus brought the First Reform Act to
Britain in 1832. But this was just the beginning. There was
still a long road to travel toward real democracy, because in
1832 the elite had only offered what they thought they had
to and no more. The issue of parliamentary reform was
taken up by the Chartist movement, whose People’s
Charter of 1838 included the clauses
A vote for every man twenty-one years of age, of sound
mind, and not undergoing punishment for crime.
The ballot.—To protect the elector in the exercise of
his vote.
No property qualification for members of Parliament—
thus enabling the constituencies to return the man of
their choice, be he rich or poor.
Payment of members, thus enabling an honest