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Virginia

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

Virginia was England’s first enduring North American colonial experiment and a test of whether a model of conquest and extraction could be transplanted to a place with few people to exploit and no rich deposits of gold or silver. The failures at Jamestown pushed the Virginia Company away from coercive control and toward incentives for settlers; that institutional turn became an early foundation for political pluralism in the future United States.

A Colony in the Wrong Place for Extraction

England entered North American colonization as a latecomer. The more immediately profitable regions of the Americas, with dense Indigenous populations and precious-metal mines, were already occupied. The English instead attempted a colony at Roanoke, in present-day North Carolina, between 1585 and 1587; it failed. In 1606, the Virginia Company sent three ships—the Susan Constant, Godspeed, and Discovery—under Christopher Newport. They entered Chesapeake Bay and sailed up the James River, named for James I. On May 14, 1607, they founded Jamestown.

The colonists arrived with a strategy shaped by Spanish conquest in Mexico and Peru. They hoped to capture a local leader and use him to secure provisions and compel people to produce food and wealth. But Jamestown lay within the territory claimed by the Powhatan Confederacy, a coalition of roughly thirty polities under Wahunsunacock, whose capital, Werowocomoco, was only about twenty miles away. The English initially hoped to learn about the region, obtain food and labor, or at least trade. The prospect that they would need to grow their own food seems not to have entered their plan: they expected the work of colonization to be done by others.

Jamestown’s Failed Bargain

Newport returned to England in April 1608 carrying pyrite, or fool’s gold. When he came back in September, he brought instructions to assert firmer control over the local population. The company’s proposed ceremony—crowning Wahunsunacock in the hope of making him subordinate to James I—foundered before it could secure the intended submission. Wahunsunacock refused to come to Jamestown, asserting that he was a king in his own land and would not go to the English fort as bait. At Werowocomoco, the coronation attempt also failed to establish English authority. Wahunsunacock responded by imposing a trade embargo, cutting off the supplies on which the settlement depended.

In December 1608, Newport sailed for England again, carrying John Smith’s appeal to the Virginia Company. Smith argued that Virginia offered no quick fortune through precious metals and that the Indigenous population could neither be compelled to provide food nor forced into labor. A viable colony, he reasoned, had to rely on settlers who could build, farm, fish, and perform other necessary work. He urged the company to send skilled workers rather than another large contingent of people unsuited to the colony’s needs.

Smith’s immediate management helped Jamestown survive a second winter. He secured trade with local groups through a mixture of persuasion and pressure, and imposed a rule linking labor to food. But the company’s wider project remained a profit-seeking enterprise, and after two disastrous years it had produced no return. The Virginia Company replaced its ruling council with a single governor, appointing Thomas Gates. Smith, excluded from the new order, returned to England in the autumn of 1609. Without his resourcefulness, and with Wahunsunacock restricting the food supply, the colony collapsed into the so-called starving time: of five hundred people entering the winter, only sixty were alive by March 1610, and the survivors resorted to cannibalism.

Coercion and Its Limits

The company’s next attempt was to make the settlers themselves bear the cost of colonial production. It claimed ownership of all land, housed men in barracks, issued company-determined rations, and organized work gangs under company agents. The resulting regime approached martial law, with death prescribed for offenses including running away and taking food. The punishments reveal the company’s dilemma: settlers subjected to hard labor and subsistence rations had reason to leave, whether to live among local communities or to establish themselves beyond company control on the frontier.

Virginia’s population and resources made coercion difficult to sustain. Outside a few concentrated areas, the population density of what became the United States was estimated at no more than three-quarters of a person per square mile. Central Mexico and Andean Peru, by contrast, could reach four hundred people per square mile—more than five hundred times as dense. The conquest-based labor arrangements that could be imposed in those regions could not simply be reproduced in Virginia. The company lacked the means to force either Indigenous people to supply the settlement or English settlers to work indefinitely for rations.

Land, Incentives, and Political Participation

After years of failure, the Virginia Company adopted a different strategy in 1618. The headright system granted each male settler fifty acres, with another fifty acres for each family member and each servant brought to Virginia. Settlers received their houses and were freed from their contracts. In 1619, a General Assembly was introduced, giving adult men a say in the laws and institutions governing the colony. The change replaced a failed effort to command labor with incentives to settle, invest, and work, while also widening political participation.

The shift took twelve years from the founding at Jamestown and marked the company’s recognition that its original approach could not succeed in the north. A further lesson unfolded over the rest of the seventeenth century: economic viability depended on institutions that gave colonists reasons to work and invest. English elites repeatedly tried to restrict political and economic rights to a privileged few, in imitation of more extractive colonial arrangements. In Virginia, however, such designs ran up against the limits of concentrated control and the need to secure settlers’ cooperation.

Virginia’s Longer Institutional Legacy

Virginia’s development formed part of the extended struggle that shaped institutions in the future United States. From Jamestown’s foundation in 1607 through the War of Independence and adoption of the U.S. Constitution, the colonial experience shared a broad institutional pattern with England’s conflict between Parliament and monarchy: both contributed to a centralized state with pluralistic political institutions. The American route differed, however, because it did not begin with the same entrenched history of absolutist rule that had to be broken by revolution in England.

The United States Constitution later reinforced constraints on power and separation of powers, but it did not complete the development of inclusive institutions. In the nineteenth century, economic inclusion also expanded through measures such as the Homestead Act of 1862, which made frontier land available to settlers rather than reserving it for political elites. These changes did not remove exclusion—women and Black Americans remained unable to vote at the point when voting rights had expanded to white men—but Virginia’s early turn toward landholding incentives and political participation belonged to a longer, unfinished process. Its significance lies in the contrast between the colony’s initial attempt to extract labor by force and the institutional changes that followed when that attempt proved untenable.