Portugal
Why Nations Fail: The Origins of Power, Prosperity, and PovertyPortugal is one of the European powers through which the book traces the widening reach of Atlantic and overseas commerce. Its significance lies less in a national portrait than in its place in a comparative account of expansion: Portuguese claims in the Americas, voyages around Africa, and contact with Central Africa helped connect regions, while the institutions governing those connections shaped who gained from them.
Expansion across the Americas and the Atlantic
In the sixteenth century, Spain and Portugal divided much of South America between them: Spain conquered and colonized most of central, western, and southern South America, while Portugal claimed Brazil to the east. The book places this division within the wider Spanish advance that followed Columbus’s 1492 voyage, including Hernán Cortés’s invasion of Mexico in 1519 and Pedro de Mendoza’s expedition to the Río de la Plata. The contrast makes Portugal part of a broader imperial transformation, rather than an isolated explorer’s story.
The consequences of European expansion were not uniform. The book argues that Atlantic trade and colonization helped create a wealthy class of traders in England who had relatively few ties to the Crown, while other European monarchs could monopolize overseas trade. Portugal’s place in the expanding Atlantic world therefore belongs to an account in which commerce could produce different political and economic effects depending on who controlled it and how institutions distributed power.
Voyages, contact, and uneven exchange
Portugal also figures in the book’s account of the circulation of knowledge between Europe and Africa. Europeans began sailing around Africa’s western coast in the late fifteenth century, while Asian sailors had reached East Africa much earlier. The distinction helps establish that African societies were not isolated from wider networks before formal European colonization; the later question is not simply whether contact occurred, but what political and economic conditions governed its consequences.
The Kingdom of Kongo offers a more specific example. After the Portuguese mariner Diogo Cão visited in 1483, Kongo entered intense contact with Portugal. The kingdom was highly centralized by African standards, and its capital, Mbanza, had about 60,000 inhabitants—roughly the population of Lisbon at the time and larger than London in 1500. Its king, Nzinga a Nkuwu, converted to Catholicism and took the name João I; Mbanza was later renamed São Salvador.
Portuguese contact introduced the wheel and plow, and agricultural missions in 1491 and 1512 encouraged their adoption, but these efforts failed. That failure did not, in the book’s account, demonstrate cultural resistance to technology: the Kongolese adopted guns quickly and used them in response to market incentives, including the capture and export of enslaved people. They also adopted literacy, clothing styles, and house designs. The contrast directs attention from an alleged inability to innovate toward the incentives created by political and economic arrangements.
Colonial power and the institutions of development
The book’s wider argument is that overseas expansion could connect regions while also imposing or strengthening extractive institutions. European colonial profits were often built on the destruction of independent polities and indigenous economies, or on the creation of extractive systems, as in Caribbean plantation economies established with enslaved Africans after the near-collapse of native populations. Portugal belongs to this history of European reach, although the book’s specific examples of later commercial coercion focus especially on Dutch and British activity.
The Kongo case makes the institutional mechanism explicit. Portuguese contact brought new technologies, but the book attributes their limited productive adoption to the insecurity of life and property under a powerful king. Output could be appropriated and taxed; people could be captured and sold. Under those conditions, investment in long-term productivity offered little security, while exporting enslaved people could be more profitable to the ruler than raising agricultural output through widespread use of the plow. The evidence thus separates the arrival of technology from the incentives and protections needed to make it transform production.
Portugal’s role is also set against the later Dutch expansion into Southeast Asia, where the Dutch East India Company used military force to monopolize spice trade and intensified forced labor. That comparison broadens the book’s point: European expansion was not a single uniform process, but a series of commercial and political interventions whose effects depended on the institutions they created or reinforced. Portugal’s appearances help establish the early geography of that expanding world and the fact of sustained contact; the book’s central analytical emphasis is on how power determined whether contact supported wider prosperity or extraction.