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National Constituent Assembly

Why Nations Fail: The Origins of Power, Prosperity, and Poverty

The National Constituent Assembly was the body through which France’s revolutionary crisis became a sweeping institutional rupture. In 1789 it dismantled feudal dues, tax exemptions, and occupational restrictions, and asserted equality of access to public office. Its constitution made France a constitutional monarchy, but the reforms did not settle the struggle over power: war, factional division, and the Terror followed. Its importance lies both in what it changed and in the path it opened away from absolutism and extractive institutions.

From political crisis to a new assembly

The Assembly arose from a conflict over who could authorize reform and who would have a voice in France’s political order. When the Crown sought approval for measures to fund an army against the Scots, the Assembly of Notables unexpectedly insisted that only a representative body, the Estates-General, could endorse such reforms. Unlike the handpicked Assembly of Notables, the Estates-General represented all three estates. Its last meeting had been in 1614, and its gathering at Versailles in 1789 immediately exposed the depth of disagreement: the Third Estate sought more votes, while the nobility and clergy resisted.

The Estates-General ended its meeting on May 5 without resolving the dispute, apart from deciding to convene a more powerful National Assembly. Merchants, businesspeople, professionals, and artisans in the Third Estate saw the impasse as evidence of their growing political strength and demanded a greater role and broader rights. Supported by citizens in the streets, the Assembly was reconstituted as the National Constituent Assembly on July 9. The sequence mattered: a dispute over representation had turned into a contest over the authority to remake the state.

The political atmosphere continued to radicalize. Conservative circles around Louis XVI persuaded him to dismiss the reformist finance minister Necker, provoking further unrest in Paris. The storming of the Bastille on July 14 marked the revolution’s beginning in earnest. Necker was reinstated, and the Marquis de Lafayette was placed in charge of the National Guard of Paris. Against this unsettled backdrop, the National Constituent Assembly acted with a confidence that the earlier representative bodies had not possessed.

Abolishing the old order

On August 4, 1789, the Assembly proposed a new constitution and abolished the feudal system. Its first article ended feudal and censuel rights and dues that originated in or represented personal or real serfdom, without compensation. The measure struck at obligations that had shaped everyday life in the countryside, where French peasants still faced limits on mobility and dues owed to the monarch, nobility, and Church, even though the most extreme forms of serfdom had already declined.

The Assembly also attacked legal privileges in taxation. Its ninth article abolished personal and property-based tax exemptions and declared that taxes were to be collected from all citizens and property in the same manner and form, with proportional payment to be considered even for the remaining months of that year. The reform dismantled a system in which the nobility and clergy enjoyed exemptions unavailable to the rest of the population. Feudal status and fiscal privilege were not treated as separate problems: both were among the inherited advantages the new order meant to remove.

The eleventh article reached beyond dues and taxes to offices and professions. It made every citizen, regardless of birth, eligible for ecclesiastical, civil, or military office and declared that no profession should entail a loss of standing. Equality before the law thus extended into political and occupational life. Subsequent reforms removed the Church’s power to levy special taxes and made the clergy employees of the state. The guilds and occupational restrictions that had protected established members from new entrants were abolished, reducing barriers to economic activity in the cities.

Constitutional monarchy and revolutionary conflict

The Assembly’s work continued after the August decrees. On September 29, 1791, it passed the final version of the constitution, establishing France as a constitutional monarchy with equality of rights for all men, no feudal obligations or dues, and an end to guild-imposed trading restrictions. The king remained, but his role was sharply limited; the account describes him as having little power and not even his freedom. The settlement therefore preserved the monarchical form while transforming the authority exercised within it.

The Assembly’s reforming drive also intensified division. Its abolition of feudalism and the privileges of the First and Second Estates prompted conflicting visions of the society that should replace the old order. Local political clubs formed, most notably the radical Jacobin Club, which would later take control of the revolution. Meanwhile, nobles fled France in large numbers. Many émigrés urged the king to break with the Assembly and act, alone or with foreign assistance, particularly from Austria, the home country of Queen Marie Antoinette and the destination of many of the exiles. Fear that the revolution’s achievements might be reversed helped propel further radicalization.

War changed the course of the revolution again. In 1792 France entered a conflict with the First Coalition, led by Austria. The war strengthened revolutionary resolve and mass radicalism, including among the sans-culottes, named for their inability to afford the fashionable knee-breeches. The Terror followed the executions of Louis XVI and Marie Antoinette. Under the Jacobin faction led by Robespierre and Saint-Just, executions reached not only aristocrats and counterrevolutionaries but prominent revolutionaries as well, including Brissot, Danton, and Desmoulins. The Terror eventually turned against its own leaders: Robespierre and Saint-Just were executed in July 1794.

A contingent institutional turning point

The Assembly’s reforms were a beginning, not a guarantee of stable or lasting inclusiveness. Several decades of instability and war followed the August 1789 declarations. After the Terror, France experienced a period of relative stability under the Directory from 1795 to 1799, followed by a three-person Consulate consisting of Ducos, Sieyès, and Napoleon Bonaparte. Napoleon’s influence had grown through military successes during the Directory, and the Consulate soon became his personal rule. The revolutionary process therefore moved from limits on monarchy toward renewed concentration of power, even as the earlier institutional break remained consequential.

The book interprets the French Revolution as a critical juncture: a disruption of the existing political and economic balance that can redirect a society but does not prescribe a single outcome. The Assembly’s abolition of feudal dues, tax exemptions, and guild barriers marked movement away from absolutism and extractive institutions. The changes were followed by further political and economic reforms and ultimately by the Third Republic in 1870, which brought France a parliamentary system comparable to the one set in motion in England by the Glorious Revolution. That later outcome was not automatic. The monarchy’s failed efforts to stabilize the regime, the pressure of Britain’s rapid industrialization, and the contingent course of revolutionary conflict all formed part of the path to change.

The Assembly’s historical significance consequently rests in a tension. Its laws opened offices and occupations beyond inherited status and made taxation more equal in principle, while the revolution that carried those reforms forward produced violence, suffering, instability, and war. Yet, in the book’s account, France did not remain trapped under an absolutist order that blocked economic growth and prosperity, as did regimes in Austria-Hungary and Russia. The Assembly stands at the point where a struggle over representation became an attack on the legal and economic foundations of privilege—and where that attack began a difficult, reversible-looking but ultimately consequential movement toward more inclusive institutions.