Antigua Guatemala
Why Nations Fail: The Origins of Power, Prosperity, and PovertyAntigua Guatemala, formerly called Santiago de los Caballeros, appears in the book as an early center of Spanish colonial authority and as the foundation of a durable elite lineage. Its history connects the reward of conquest to the persistence of concentrated political and economic power in Guatemala, where descendants of conquistadors remained influential centuries after independence.
Colonial Origins and Conquistador Rule
After serving Hernán Cortés, Bernal Díaz del Castillo was appointed governor of Santiago de los Caballeros, the city now known as Antigua Guatemala. Díaz del Castillo also wrote one of the best-known eyewitness accounts of the conquest of Mexico. The appointment joined military service and colonial administration: the conqueror’s reward was authority over a Guatemalan city and the opportunity to establish a family dynasty.
Díaz del Castillo was one among several conquistadors whose families helped form Guatemala’s colonial elite. The book names Pedro de Alvarado alongside him and describes these lineages as part of a broader pattern in which political authority and economic advantage became closely associated with descent from the conquerors. Antigua Guatemala matters in this account not simply as a place-name, but as the setting through which a colonial office and a family’s lasting influence become visible.
A Durable Elite
The legacy of those early families extended far beyond the first generation of conquest. In the twentieth century, research identified a core group of twenty-two Guatemalan families connected by marriage to another twenty-six families just outside that circle. The study traced their control of economic and political power back to 1531. Under a broader definition of the elite, its members represented just over one percent of Guatemala’s population in the 1990s.
The book links this concentration of power to the persistence of extractive institutions. Guatemala’s pattern differs in form from cases where post-independence leaders inherited colonial structures, but the result is similarly durable: those who hold economic and political power shape institutions to preserve their position. The story attached to Antigua Guatemala thus opens onto a much longer history, in which the rewards of conquest and the authority of an elite survived changes of government and the end of colonial rule.