Victoria State
Why Nations Fail: The Origins of Power, Prosperity, and PovertyVictoria, established as a separate state from New South Wales in 1851, illustrates how access to economic opportunity could support demands for political inclusion. Its goldfields were open to anyone who paid an annual mining license fee rather than reserved for a monopolist; the diggers who came to work them became an influential force in Victoria and helped advance universal suffrage and the secret ballot.
Separation and Political Reform
The history of Victoria formed part of a wider contest over representation in Australia. In New South Wales, pressure had limited the governor’s formerly extensive authority: a British-appointed council was created in 1823, ex-convicts were admitted to juries in 1831, and transportation of convicts there ended in 1840. A legislative council established in 1842 had two-thirds elected members, and eligible ex-convicts could vote and stand for office. By the 1850s, adult white men had gained suffrage in Australia.
Victoria, carved out of New South Wales in 1851, shared in this political movement. In 1856 it and Tasmania became the first places in the world to introduce an effective secret ballot. By making votes secret, the system checked vote-buying and coercion; the standard method of secret voting is still known as the Australian ballot. The change marked a further advance beyond the more restricted political arrangements William Wentworth had defended, including an unelected legislative council.
Gold and Open Access
Gold discovered in New South Wales and Victoria in 1851 drew attention to how the resource would be controlled. Because the gold was alluvial, authorities faced a choice between restricting mining rights and allowing broader access. James Macarthur, son of the prominent squatter John Macarthur, proposed fencing off mining areas and auctioning monopoly rights—an Australian version of the Sierra Leone Selection Trust.
The monopoly proposal did not prevail. Australian authorities instead allowed anyone who paid an annual mining license fee to search for and dig gold. This open-access arrangement made the diggers, the name given to the mining adventurers, a powerful political constituency, particularly in Victoria. Their economic position gave them a stake in public decisions, and they helped push forward the agenda of universal suffrage and the secret ballot.
Political Significance
Victoria’s example connects economic access with political change. Gold could have been enclosed through exclusive rights, but the licensing system left the mining opportunity open to a much wider group. The resulting diggers became actors in Australian politics rather than merely a labor force in the goldfields.
The secret ballot and the diggers’ political influence are presented as parts of the same broader movement toward more inclusive institutions. Victoria thus figures both as a state formed during Australia’s expansion and reform and as a place where an open resource regime helped strengthen demands for participation in political life.