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EUROPEAN SECTORAL INSTITUTIONS: ROLES AND INTERACTIONS

When Europeans emigrated to the New World in phase i they were typically moti­vated by a desire to generate economic gains over and above subsistence. They wanted consumer and luxury goods from Europe and were prepared to devote some or all of their labor to producing export commodities whose sale paid for imported goods.

In these respects the original settlers and their descendants comprised a transplanted private profit sector. To the extent that the basic unit of economic activity was the family, settlers were a noninstitutionalized component of a colony’s private profit sector. But settlers also founded, managed, and owned their own profit-oriented institutions. Examples were large-scale haciendas and ranches, plan­tations, and—most notably in the bna colonies—a wide range of small-scale man­ufacturing, commercial, and shipping enterprises.

Even in pure settlement, mixed, and plantation colonies, however, metropole­based private profit institutions played major roles. Whether operating on their own or in conjunction with the metropolitan state, European companies controlled trade between a metropole and its colonies. They were particularly well positioned to reap handsome profits if they monopolized trade with colonies exporting highly valued commodities like spices and sugar. Banking houses extended credit to overseas ven­tures. European companies handled the vast bulk of the transatlantic slave trade. Many plantation owners lived lavishly in the metropole thanks to profits from their outdoor factories.

A recurring pattern in phase i was the formalization of cooperative arrange­ments between a metropole’s public and private profit sectors. A common Iberian pattern was for a monarch to authorize a ship’s captain to trade on condition that a fifth of the proceeds was handed over to the royal exchequer. A mechanism popular in seventeenth- and eighteenth-century England, Holland, and France was the char­tered company, a corporate body authorized by royal or legislative charter to operate overseas for profit and to carry out quasi-governmental functions in territories assigned to it.

Nonreinvested gains from a chartered company’s activities were fre­quently divided between government officials and agencies, on the one hand, and private investors on the other. Prominent actors in both sectors thus had a shared interest in the venture’s success. Some enterprises, such as the Virginia Company and Dutch West India Company, sponsored initial rounds of settlement in new colonies and laid out the basic policies of colonial governance. Others were primarily trading operations, formally authorized to use force as need be to ensure access to desired commodities, keep purchase prices low, and protect company property and person­nel. Among the best known trading ventures were the English East India Company (1600); the Dutch East India Company (1602); the French East India Company (1664); and the Hudson’s Bay Company (1670).32

Christian missionary activity was most evident in the New World colonies of Catholic countries. Among Catholic orders sending priests to Iberian colonies to observe, convert, and teach indigenous peoples were the Dominicans, Franciscans, Augustinians, Mercedarians, and Jesuits. More than a hundred houses and mission centers belonging to various orders were at work in Spanish America by 1600. The leading religious congregations in French North America were the Jesuits, Recollects, Capuchins, and Sulpicians.33 Missionaries often operated far outside areas effectively controlled by a colonial administration. In Japan and China they worked in lands never taken over.34 In effect they created their own religious and cultural frontiers.

Cooperative links between public and religious sectors were most evident in the Spanish and Portuguese empires. Papal bulls authorizing these countries’ mon­archs to claim overseas possessions made it clear that propagation of the Catholic faith was a precondition and principal purpose of the entire operation. From the start close ties were maintained between secular governing structures and the Roman Catholic hierarchy.

Even when monarchs exercised veto power over the hierarchy’s choice of personnel to be sent abroad, the state never completely controlled the church’s work at home or in the colonies. Neither was there a fusion of sectoral institutions at home or abroad. Rather, each found it in its own interest to form an ongoing coalition with the other. The colonial state’s coercive and financial resources supported the work of religious conversion. The church in turn preached that indig­enous peoples and settlers should obey constituted authority.

A different pattern obtained in England and Holland after Catholicism ceased to be the official religion. Protestant denominations, whether accorded official status or not, showed little interest in converting indigenous people to Christianity. Not until phase 3 did Protestants become seriously involved in missionary work. Rather, phase 1 Protestantism was the more or less exclusive possession of settler commu­nities. Indeed, it was precisely the “heathen” character of non-Europeans that en­abled settlers to justify exterminating them and taking their land. To the extent that a church-state alliance obtained in English and Dutch settler colonies, the decentral­ized nature of Protestant denominational governance gave settlers a degree of control over the religious sector that was not possible in officially Catholic colonies.

The kinds of cross-sector coalitions forged in the metropoles affected the ways in which overseas empires were governed. The nature of these coalitions and the degree to which decision-making authority in each sector was retained in metro­politan hands influenced the degree of leverage settler communities could exert on sectoral institutions at the point when political leaders in the colonies considered breaking with the metropole. But such observations run well ahead of the story. The point here is that during phase i Europeans experimented with a variety of ways in which public sector institutions could collaborate with institutions from other met­ropolitan sectors to advance their interests overseas.

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Source: Abernethy David B.. The Dynamics of Global Dominance: European Overseas Empires, 1415-1980. Yale University Press,2002. — 524 p.. 2002

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