Charles II
Why Nations Fail: The Origins of Power, Prosperity, and PovertyCharles II’s reign illustrates how the restoration of monarchy could revive royal authority without restoring the political conditions that had once allowed it to operate unchecked. He pursued a program of absolutism and protected a lucrative overseas monopoly, but the conflict over that privilege unfolded in a changed political landscape—one in which Parliament, judges, and petitioners could contest the Crown’s economic power.
Restoration and Renewed Absolutism
After the execution of Charles I and the abolition of the monarchy, Oliver Cromwell ruled as a dictator. Following Cromwell’s death, the monarchy was restored in 1660, and it recovered many of the privileges removed in 1649. Charles II then set about renewing the effort to create absolutism in England, continuing a struggle over the distribution of political power rather than simply returning to the old settlement.
Those efforts were bound up with economic interests. Some supporters of the Crown had received lucrative monopolies, while merchants protected from outside competition had reason to favor royal authority. In this system, political power could determine who received economic privilege; those privileges, in turn, gave their beneficiaries a stake in preserving the power that granted them.
The Royal African Company and Royal Prerogative
One of the overseas monopolies Charles II maintained was the Royal African Company, whose charter he issued in 1660. The company held a monopoly on the profitable African slave trade. Its governor and major shareholder was Charles’s brother James, who would later succeed him as James II. The arrangement linked royal protection, private wealth, and the trade in enslaved people: the company’s exclusive privilege depended on the Crown’s willingness to defend it against independent traders.
The company tried to keep those traders, known as interlopers, from buying enslaved people in West Africa and selling them in the Americas. In 1689 it seized the cargo of an interloper named Nightingale. Nightingale sued, and Chief Justice Holt ruled that the seizure was unlawful because the company had relied on a monopoly created by royal prerogative. Holt held that monopoly privileges could be established only by statute, placing future grants—including the Royal African Company’s—under Parliament’s authority. The ruling marked a practical limit on the Crown: before the Glorious Revolution, the king could have removed a judge who ruled against him; afterward, such a ruling could stand.
A Political Order in Transition
Charles II’s absolutist project did not end with his reign. After his death, James II intensified it. In 1688 James’s attempt to reestablish absolutism provoked another crisis and civil war. Parliament, now more united and organized, invited William of Orange and his wife Mary, James’s Protestant daughter, to replace him. William arrived with an army and claimed the throne under a constitutional monarchy shaped by Parliament; James’s army disintegrated, and James fled to France.
The revolution altered the setting in which the Royal African Company’s monopoly could be defended. After 1688, James lost both the throne and the position from which he had protected the company. Parliament had to decide what to do with the privilege. Interlopers submitted 135 petitions demanding free access to Atlantic trade, far outnumbering the company’s petitions. Their case drew support well beyond London: 73 interloper petitions came from the provinces, compared with eight for the company, and 27 came from the colonies, compared with 11. The interlopers gathered 8,000 signatures, against the company’s 2,500, and framed opposition to monopoly as a matter of national interest rather than merely their own commercial advantage.
Institutional Significance
Charles II’s example belongs to a broader account of how political and economic institutions reinforce one another. When power is concentrated and weakly constrained, elites can shape economic rules to extract resources; the resulting wealth can then help them preserve political dominance. In seventeenth-century England, royal monopolies embodied this connection, and their defenders included merchants whose fortunes depended on exclusion from competition.
But that relationship was not immutable. The Civil War, the monarchy’s restoration, the Glorious Revolution, Holt’s ruling, and the flood of petitions mark successive contests over who could create and protect economic privilege. Charles II’s restoration renewed the Crown’s effort to centralize power, yet the later challenge to the Royal African Company showed how a changed political order could redirect decisions from royal prerogative toward statute and parliamentary judgment. His reign thus forms part of a larger institutional struggle: the restoration of the monarch did not settle who would control the rules of economic life.