1374 THE AMERICAN ECONOMIC REVIEW DECEMBER 2001 also documents how early British expectations including Robinson and Gallagher (1961),Gann for settlement in West Africa were dashed by and Duignan (1962),Denoon (1983),and Cain very high mortality among early settlers,about and Hopkins (1993),have documented the de- half of whom could be expected to die in the velopment of "settler colonies,"where Europe- first year.In the "Province of Freedom"(Sierra ans settled in large numbers,and life was Leone),European mortality in the first year was modeled after the home country.Denoon(1983) 46 percent,in Bulama (April 1792-April 1793) emphasizes that settler colonies had representa- there was 61-percent mortality among Europe- tive institutions which promoted what the set- ans.In the first year of the Sierra Leone Com- tlers wanted and that what they wanted was pany (1792-1793),72 percent of the European freedom and the ability to get rich by engaging settlers died.On Mungo Park's Second Expedi- in trade.He argues that "there was undeniably tion (May-November 1805),87 percent of Eu- something capitalist in the structure of these ropeans died during the overland trip from colonies.Private ownership of land and live- Gambia to the Niger,and all the Europeans died stock was well established very early..."(p. before completing the expedition. 35). An interesting example of the awareness of When the establishment of European-like in- the disease environment comes from the Pil- stitutions did not arise naturally,the settlers grim fathers.They decided to migrate to the were ready to fight for them against the wishes United States rather than Guyana because of the of the home country.Australia is an interesting high mortality rates in Guyana (see Crosby, example here.Most of the early settlers in Aus- 1986 pp.143-44).Another example comes tralia were ex-convicts,but the land was owned from the Beauchamp Committee in 1795,set up largely by ex-jailors,and there was no legal to decide where to send British convicts who protection against the arbitrary power of land- had previously been sent to the United States. owners.The settlers wanted institutions and po- One of the leading proposals was the island of litical rights like those prevailing in England at Lemane,up the Gambia River.The committee the time.They demanded jury trials,freedom rejected this possibility because they decided from arbitrary arrest,and electoral representa- mortality rates would be too high even for the tion.Although the British government resisted convicts.Southwest Africa was also rejected for at first,the settlers argued that they were British health reasons.The final decision was to send and deserved the same rights as in the home convicts to Australia. country (see Robert Hughes,1987).Cain and The eventual expansion of many of the col- Hopkins write (1993 p.237)"from the late onies was also related to the living conditions 1840s the British bowed to local pressures and, there.In places where the early settlers faced in line with observed constitutional changes high mortality rates,there would be less incen- taking place in Britain herself,accepted the idea tive for new settlers to come. that,in mature colonies,governors should in future form ministries from the majority ele- B.Types of Colonization and Settlements ments in elected legislatures."They also sug- gest that "the enormous boom in public The historical evidence supports both the no- investment after 1870 [in New Zealand]...was tion that there was a wide range of different an attempt to build up an infrastructure...to types of colonization and that the presence or maintain high living standards in a country absence of European settlers was a key deter- where voters expected politicians actively to minant of the form colonialism took.Historians, promote their economic welfare."(p.225).6 5 Naturally,other factors also influenced settlements.For 6 Robert H.Bates(1983 Chapter 3)gives a nice example example,despite the relatively high mortality rates,many of the influence of settlers on policy in Africa.The British Europeans migrated to the Caribbean because of the very colonial government pursued many policies that depressed high incomes there at the time (see,e.g.,Richard S.Dunn, the price of cocoa,the main produce of the farmers in 1972;David W.Galenson,1996;Engerman and Sokoloff, Ghana.In contrast,the British government supported the 1997:David Eltis,2000). prices faced by the commercial cereal farmers in Kenya.1374 THE AMERICAN ECONOMIC REVIEW DECEMBER 2001 also documents how early British expectations for settlement in West Africa were dashed by very high mortality among early settlers, about half of whom could be expected to die in the first year. In the "Province of Freedom" (Sierra Leone), European mortality in the first year was 46 percent, in Bulama (April 1792-April 1793) there was 61-percent mortality among Europeans. In the first year of the Sierra Leone Company (1792-1793), 72 percent of the European settlers died. On Mungo Park's Second Expedition (May-November 1805), 87 percent of Europeans died during the overland trip from Gambia to the Niger, and all the Europeans died before completing the expedition. An interesting~example of the awareness of the disease environment comes from the Pilgrim fathers. They decided to migrate to the United States rather than Guyana because of the high mortality rates in Guyana (see Crosby, 1986 pp. 143-44). Another example comes from the Beauchamp Committee in 1795, set up to decide where to send British convicts who had previously been sent to the United States. One of the leading proposals was the island of Lemane, up the Gambia River. The committee rejected this possibility because they decided mortality rates would be too high even for the convicts. Southwest Africa was also rejected for health reasons. The final decision was to send convicts to Australia. The eventual expansion of many of the colonies was also related to the living conditions there. In places where the early settlers faced high mortality rates, there would be less incentive for new settlers to come.5 B. Types of Colonization and Settlements The historical evidence supports both the notion that there was a wide range of different types of colonization and that the presence or absence of European settlers was a key determinant of the form colonialism took. Historians, Naturally, other factors also influenced settlements. For example, despite the relatively high mortality rates, many Europeans migrated to the Caribbean because of the very high incomes there at the time (see, e.g., Richard S. Dunn, 1972; David W. Galenson, 1996; Engerman and Sokoloff, 1997; David Eltis, 2000). including Robinson and Gallagher (1961), Gann and Duignan (1962), Denoon (1983), and Cain and Hopkins (1993), have documented the development of "settler colonies," where Europeans settled in large numbers, and life was modeled after the home country. Denoon (1983) emphasizes that settler colonies had representative institutions which promoted what the settlers wanted and that what they wanted was freedom and the ability to get rich by engaging in trade. He argues that "there was undeniably something capitalist in the structure of these colonies. Private ownership of land and livestock was well established very early ..." (p. 35). When the establishment of Euro~ean-like institutions did not arise naturally, the settlers were ready to fight for them against the wishes of the home country. Australia is an interesting example here. Most of the early settlers in Australia were ex-convicts, but the land was owned largely by ex-jailors, and there was no legal protection against the arbitrary power of landowners. The settlers wanted institutions and political rights like those prevailing in England at the time. They demanded jury trials, freedom from arbitrary arrest, and electoral representation. Although the British government resisted at first, the settlers argued that they were British and deserved the same rights as in the home country (see Robert Hughes, 1987). Cain and Hopkins write (1993 p. 237) "from the late 1840s the British bowed to local pressures and, in line with observed constitutional changes taking place in Britain herself, accepted the idea that, in mature colonies, governors should in future form ministries from the majority elements in elected legislatures." They also suggest that "the enormous boom in public investment after 1870 [in New Zealand] ... was an attempt to build up an infrastructure ...to maintain high living standards in a country where voters expected politicians actively to promote their economic welfare." (p. 225).6 Robert H. Bates (1983 Chapter 3) gives a nice example of the influence of settlers on policy in Africa. The British colonial govemment pursued many policies that depressed the price of cocoa, the main produce of the farmers in Ghana. In contrast, the British govemment supported the prices faced by the commercial cereal farmers in Kenya