Question

One explanation for greater economic development in moderate versus tropical climates is that institutions established by colonial settlers in moderate climates ______, while institutions established by colonists in tropical climates ______. A. were based on English common law; were based on the Napoleonic Code B. were based on the Napoleonic Code; were based on English common law C. protected property rights; were extractive and authoritarianD. were extractive and authoritarian; protected property rights

Answer 1

Answer:

C. protected property rights; were extractive and authoritarian

Explanation:

Based on the work of Acemoglu, Johnson and Robinson there were different types of colonization policies which created different sets of institutions. These authors argued that the colonization path was strongly influenced by feasibility of settlements. On the one hand, tropical places where diseases were more likely and affected Europeans the most, settlers formed extractive institutions.  These institutions were not designed to protect private property or provide checks and balances against government expropriation. Their main objective was to transfer as much of the resources of the colony to the colonizer.  On the other hand, where climates were more moderate, settlers seek to replicate European institutions, emphasizing  private property and checks and balances against government power.