New Granada
Why Nations Fail: The Origins of Power, Prosperity, and PovertyNew Granada, identified in the account with modern Colombia, is presented as a place where Spanish conquest operated through the seizure of towns, the subjection of their inhabitants, and the pursuit of precious metals. Its king’s captivity and death expose the violence beneath the conquerors’ claims to lawful authority, while the broader discussion connects colonial expansion to the destruction of indigenous economic possibilities.
Conquest and the division of people
The account describes Spanish conquerors assigning towns and their inhabitants among themselves, a practice they called encomienda. In New Granada, this arrangement served the long-term purpose of taking available gold. The people of the allotted towns were treated as forced laborers, while the Spanish expedition’s commander made the king of the territory his prisoner.
The conquest narrative places this episode within a wider pattern: methods developed in Mexico were adopted elsewhere in the Spanish Empire. New Granada is therefore not described as an isolated case, but as one example of conquest organized to transfer land, labor, and wealth to the conquerors.
The king’s captivity
The commander held the king, identified in the account as Bogotá, for six or seven months and demanded increasing quantities of gold and emeralds. Hoping to secure his release, the king agreed to fill an entire house with gold. He sent his people to search for it, and they gradually brought gold and precious stones; the required amount, however, was not reached.
The Spaniards then threatened to kill him for failing to meet the demand. The commander presented himself as a representative of the law and had the king formally accused before him. He ordered torture if the king continued to withhold the promised wealth, and the king eventually died under the treatment inflicted on him. The sequence makes the coercion unmistakable: a bargain extracted from a captive was recast as a legal obligation, and the commander’s authority as judge reinforced his power as conqueror.
Colonial extraction and historical significance
The episode gives concrete form to the book’s account of Spanish colonial rule. The seizure of towns and forced labor were not incidental to the search for treasure; they were means by which conquest turned indigenous communities and their resources toward Spanish purposes. In New Granada, the demand for a houseful of gold and emeralds culminated in the death of the king who had been made to promise it.
The book’s broader argument is that European commercial and colonial expansion often destroyed independent polities and indigenous economies or created extractive institutions that restricted their development. New Granada’s conquest exemplifies that pattern through the joined control of territory, people, and wealth. Its account also reveals an enduring imbalance in the historical record: the king and his people appear chiefly through a Spanish chronicler’s report of their subjection, while the colonizers’ demands and actions occupy the narrative foreground.