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Jamestown

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

Founded on May 14, 1607, Jamestown was the first durable English settlement in North America and a testing ground for two competing colonial models. The Virginia Company initially expected to obtain wealth and provisions by controlling Indigenous people, rather than by organizing the settlers to produce their own food. The colony’s repeated crises showed why that plan could not simply reproduce Spanish conquest: without rich mines or a large population that could be compelled to supply labor and food, survival depended on the settlers’ work and, eventually, on institutions that gave them incentives to invest and produce.

Foundation and Colonial Ambitions

The English had reached North America after the more heavily exploited regions of the Americas had already been claimed by other European powers. Their earlier attempt to establish a colony at Roanoke, in what is now North Carolina, had failed between 1585 and 1587. In late 1606, three Virginia Company vessels—the Susan Constant, the Godspeed, and the Discovery—sailed under Christopher Newport. The colonists entered Chesapeake Bay and traveled up a river they named the James, after James I. On May 14, 1607, they established Jamestown.

The Virginia Company approached colonization with expectations shaped by the example of Hernán Cortés and Francisco Pizarro. Its initial plan was to capture a local chief and use him to secure provisions and compel the surrounding population to produce food and wealth. But the settlers had arrived within the territory claimed by the Powhatan Confederacy, a coalition of roughly thirty polities led by Wahunsunacock. His capital, Werowocomoco, lay only about twenty miles from Jamestown. The English initially sought to learn about the surrounding land and hoped either to induce local people to provide food and labor or, failing that, to trade with them. The idea that the colonists themselves should grow their food scarcely informed this first plan.

Wahunsunacock quickly learned of the English presence and distrusted their intentions. He initially sent messengers expressing a desire for friendly relations, while assessing what the newcomers meant to do. His authority extended across a substantial regional power, though it was not as centrally concentrated as that of the Inca Empire. The gap between English ambitions and the actual balance of power around the settlement would shape Jamestown’s early struggle for survival.

Scarcity, Leadership, and Survival

As winter approached in 1607, food supplies dwindled, while Edward Marie Wingfield, the appointed leader of the colony’s ruling council, hesitated. Captain John Smith became central to the colony’s response. His writings are among the principal sources for Jamestown’s early history; his life before the settlement had included military service in the Netherlands and Hungary, capture and enslavement in Romania, and escape back into Austrian territory. At Jamestown, he proved more capable than the council’s indecisive leadership of responding to the immediate problem of provisions.

Smith and Newport tried to persuade Wahunsunacock to accept a coronation ceremony that would, in effect, recognize English authority. The effort failed. Wahunsunacock resolved to remove the colony and imposed a trade embargo, cutting off the exchange through which the settlers had obtained supplies. He sought to starve them out. The episode demonstrated that the English could not assume that nearby Indigenous communities would submit to their plans or provide the provisions on which the settlement depended.

In December 1608, Newport sailed back to England carrying a letter from Smith to the Virginia Company’s directors. Smith argued that Virginia offered no quick route to the kind of wealth extracted from Mexico and Peru: there were no precious-metal mines, and the Indigenous population could not be forced to provide food and labor. A viable colony therefore required settlers who could work in useful occupations. He urged the company to send carpenters, farmers, gardeners, fishermen, blacksmiths, masons, and others able to build and provision a settlement, rather than large numbers of people who expected to find gold.

Jamestown survived another winter through Smith’s ability to secure provisions. He pressed local Indigenous groups to trade and, when they refused, sometimes took supplies. Within the settlement he imposed a work rule that made subsistence conditional on labor: “he that will not worke shall not eat.” The rule captured the practical reversal forced on the colony. Its survival could not rest on the original hope that others would produce what the English wanted; the settlers had to work themselves.

The Starving Time and the Limits of Coercion

The Virginia Company was intended to make money, but after two disastrous years it had no profit to show for its investment. The directors responded by replacing the ruling council with a single governor, appointing Sir Thomas Gates to the new position. The change coincided with the winter of 1609–1610, remembered as the “starving time.” The new governing arrangement left no place for Smith; disgruntled, he returned to England in the autumn of 1609.

Without Smith’s resourcefulness, and with Wahunsunacock continuing to restrict food supplies, the colony suffered catastrophic losses. Of the five hundred people who entered the winter, only sixty were alive by March. The surviving settlers were driven to cannibalism. The crisis made the cost of the colony’s dependence on outside provisioning impossible to ignore, but the company’s alternative was not a workable solution. Gates and his deputy, Sir Thomas Dale, imposed a severely demanding work regime on English settlers, while the colonial elite did not bear the same burden. Dale promoted the Lawes Divine, Morall and Martiall, whose provisions included the death penalty for anyone who fled the colony to live among Indigenous people.

That system of discipline did not resolve the colony’s basic problem. The company had limited power to make English settlers labor hard for subsistence rations. Nor could it compel local people to provide the food and work that the original plan required. Conditions in Virginia differed sharply from those in the densely populated regions of central Mexico and Andean Peru: the book contrasts estimates of no more than three-quarters of a person per square mile across most of what became the United States with densities as high as four hundred per square mile in central Mexico or Peru. A colonial strategy that depended on commanding a large population could not work in the same way in Virginia.

Land, Political Participation, and Institutional Change

Beginning in 1618, the Virginia Company changed course. Since it could not reliably coerce either local people or English settlers, it began offering incentives. Under the headright system, each male settler received fifty acres, with another fifty acres for each family member and each servant brought to Virginia. Settlers received their houses and were released from their contracts. In 1619, the company also introduced a General Assembly, giving adult men a say in the laws and institutions governing the colony. The land grants and assembly marked a sharp departure from the initial plan of extracting food and labor by command.

These measures did not mean that political participation was universal or that the colony had escaped the conflicts over power and rights that marked English colonial rule. The account presents the assembly as the beginning of democracy in the United States, while describing a longer struggle over whether colonial institutions would secure incentives and participation or concentrate economic and political rights among a privileged few. English elites repeatedly attempted to create restrictive institutions in North America, but the model repeatedly broke down. In Virginia, the company had to learn that the Spanish approach could not be reproduced in the north and that a viable economy required institutions encouraging settlers to work and invest.

Jamestown’s significance also lies in its place within a broader Atlantic expansion. English colonization at Roanoke began in 1585; the English East India Company was formed in 1600; Jamestown followed in 1607; and Barbados was occupied in 1627. Across the Atlantic world, small initial differences in political institutions shaped who could control trade and who could press for changes to political authority. In England, merchants who had gained wealth through Atlantic commerce could challenge royal monopolies and prerogatives. In Virginia, the earlier struggle began with a different pressure: the company’s inability to compel either settlers or Indigenous communities made incentives and institutional accommodation increasingly necessary.

Place in the Formation of the United States

The book links Jamestown’s development to the later institutional trajectory of the United States. Its foundation began a process that culminated in the War of Independence and the U.S. Constitution, producing, in the book’s account, a centralized state with pluralistic political institutions. The history of the colony was therefore not a simple, uninterrupted march toward democracy: its early experiments included coercive labor rules, concentrated authority, and the attempt to make Indigenous people sustain English settlement. Its later changes arose because those arrangements could not secure the labor and resources the colony needed.

Jamestown is also compared with the founding of New South Wales, where the initial circumstances likewise did not favor extractive colonial institutions. Neither settlement had a dense Indigenous population to exploit, readily available precious metals, or suitable conditions for profitable slave plantations. In both cases, colonial authorities gradually turned toward inclusive economic institutions alongside more inclusive political ones, as pressure made the initial arrangements difficult to maintain. The comparison emphasizes that the institutional pattern associated with the United States emerged not from the same political revolutions that transformed England, but from the distinct constraints and conflicts of colonial foundations.

The early colony thus stands at the intersection of ambition and limitation. The Virginia Company tried to reproduce a model built on command and extraction; Wahunsunacock’s resistance and the settlers’ own inability to live by that model exposed its weakness. The eventual movement toward land incentives and a General Assembly did not erase the inequalities or conflicts of colonization, but it helped set Jamestown on a different institutional path—one in which the prospects of the settlement increasingly depended on encouraging settlers to produce and participate rather than simply ordering them to serve.