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Imperial Measurement: A Cost–Benefit Analysis of Western Colonialism
Why did the West become rich? Was it the product of institutions, culture, and economic policies? Or were foreign expansion, imperialist exploitation and the slave trade the keys to prosperity? In this book, Kristian Niemietz takes the reader beyond the ‘Culture War’ debates around the legacy of the British Empire, and looks at the economics of imperialism. By examining the empirical work of modern historians of colonialism, as well as the views of contemporary figures ranging from Adam Smith to Karl Marx, Niemietz explores a debate which has raged for three centuries and is only growing more contentious. Drawing on data from various European colonial empires, Niemietz casts doubt on the claim – popular among both 19th-century imperialists and modern-day progressives – that empire was a crucial factor in the West’s rise to prosperity. Instead, he shows that – its immorality aside – Western colonialism was simply bad economics. Far from being a story of plunder leading to sustained growth, the story of empire is an all too familiar tale of vested interests using the state to secure private benefits while leaving the taxpayer to foot the bill.
72 pages, Kindle Edition
Published April 18, 2024
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Displaying 1 - 7 of 7 reviews
July 27, 2024
If you want a short literature review you can read in a couple hours on the benefits and costs of British colonialism , this is a good little piece. Niemietz clearly summarizes the empirical evidence from the economics literature that attempts to quantify the net economic effect of colonialism by the British empire.
Niemietz sketches two extreme positions regarding Britain’s purported trade benefits from its colonies: 1) Britain would have traded exactly the same amount with its colonies without colonization; and 2) No amount of trade would have occurred with those independent nations without colonization. Niemietz marshals empirical evidence to demonstrate some intermediate position between these two extremes is likely most justifiable: “It finds that empires boosted trade relative to alternative arrangements that were common at the time, but they were far from the sole driver” (p. 23).
On the purported economic benefits of slavery: “So, on the whole, the economics of slavery are analogous to the economics of the Empire. The gains were small relative to the size of the British economy, and they cannot have explained more than a small share of total investment. Once we subtract the fiscal cost, the net gains may well have been negative.” (p. 39)
On the best predictors of a country’s wealth today (as measured by GDP)?
“The best predictors of how rich or poor a country is today are economic policy and governance indicators such as the Economic Freedom Index and the Ease of Doing Business Index. This tells us a lot more than whether or not a country was involved in the slave trade, how many colonies it once possessed, or how long it held on to them” (p. 56).
What about the economic effects on the part of the colonized? Contradicting Bruce Gilley’s thesis (in The Case for Colonialism), Niemietz supplies evidence to support the claim that a “history of colonial extractivism, or a period of heavy involvement in the slave trade, made the subsequent development of good institutions less likely. The implication is that colonialism and slavery were not zero-sum games that benefited the colonisers at the expense of the colonised. It was more like a negative-sum game, which hurt the latter without really benefiting the former” (p. 60).
An excellent mini-book / literature review focused on some important economic questions about colonialism. A useful piece.
Niemietz sketches two extreme positions regarding Britain’s purported trade benefits from its colonies: 1) Britain would have traded exactly the same amount with its colonies without colonization; and 2) No amount of trade would have occurred with those independent nations without colonization. Niemietz marshals empirical evidence to demonstrate some intermediate position between these two extremes is likely most justifiable: “It finds that empires boosted trade relative to alternative arrangements that were common at the time, but they were far from the sole driver” (p. 23).
On the purported economic benefits of slavery: “So, on the whole, the economics of slavery are analogous to the economics of the Empire. The gains were small relative to the size of the British economy, and they cannot have explained more than a small share of total investment. Once we subtract the fiscal cost, the net gains may well have been negative.” (p. 39)
On the best predictors of a country’s wealth today (as measured by GDP)?
“The best predictors of how rich or poor a country is today are economic policy and governance indicators such as the Economic Freedom Index and the Ease of Doing Business Index. This tells us a lot more than whether or not a country was involved in the slave trade, how many colonies it once possessed, or how long it held on to them” (p. 56).
What about the economic effects on the part of the colonized? Contradicting Bruce Gilley’s thesis (in The Case for Colonialism), Niemietz supplies evidence to support the claim that a “history of colonial extractivism, or a period of heavy involvement in the slave trade, made the subsequent development of good institutions less likely. The implication is that colonialism and slavery were not zero-sum games that benefited the colonisers at the expense of the colonised. It was more like a negative-sum game, which hurt the latter without really benefiting the former” (p. 60).
An excellent mini-book / literature review focused on some important economic questions about colonialism. A useful piece.
May 23, 2024
Imperial Measurement : A Cost–Benefit Analysis of Western Colonialism (2024) by Kristian Niemietz evaluates the question of how much benefit European countries got from their colonies and if the benefit that they got enabled them to industrialise. Niemietz has a PhD in political economy.
The book initially examines the British Empire and looks at statements by Adam Smith and others who thought that the empire cost more than it brought it for a long time. By looking at records of British trade it can be shown that the vast majority of it was with other European countries, not with its empire. The book strongly makes the case that amount that was possibly saved from colonies wasn’t very large and indeed was similar to the amount that sheep farming yielded.
The British Empire is examined in stages and the impact of the slave trade evaluated on economic grounds. Niemietz shows that the economic impact was fairly small and it could not have driven the industrial revolution.
The book then examines Europe as a whole and looks at the French, German and Belgian Empires. The Belgian ‘Empire’ is described as being profitable and is shown to be exceptional economically. It was, however, created after Belgium industrialised.
There is also a chapter on the impact on empires on those that were ruled and the point is made the places in Africa that had slaves taken from them appear to have suffered and have poorer institutions than places that didn’t to this day.
Imperial Measurement is a very good short book on an important question. It’s a well written, solid literature review that tackles an important subject.
The book initially examines the British Empire and looks at statements by Adam Smith and others who thought that the empire cost more than it brought it for a long time. By looking at records of British trade it can be shown that the vast majority of it was with other European countries, not with its empire. The book strongly makes the case that amount that was possibly saved from colonies wasn’t very large and indeed was similar to the amount that sheep farming yielded.
The British Empire is examined in stages and the impact of the slave trade evaluated on economic grounds. Niemietz shows that the economic impact was fairly small and it could not have driven the industrial revolution.
The book then examines Europe as a whole and looks at the French, German and Belgian Empires. The Belgian ‘Empire’ is described as being profitable and is shown to be exceptional economically. It was, however, created after Belgium industrialised.
There is also a chapter on the impact on empires on those that were ruled and the point is made the places in Africa that had slaves taken from them appear to have suffered and have poorer institutions than places that didn’t to this day.
Imperial Measurement is a very good short book on an important question. It’s a well written, solid literature review that tackles an important subject.
January 6, 2025
an interesting presentation of a perspective that i had previously not had the chance to explore in much depth. when conversations surrounding western colonialism are overwhelmingly presented as the coloniser getting rich at the expense of the colonised, i appreciated the comparison between various european powers and the very compelling economic figures to offer a more nuanced outlook on the topic.
August 14, 2024
Excellent
An excellent and well-written book, which examines whether imperialism was profitable for the home country or not. This book definitely puts paid to the strange view that the wealth of rich countries today was based on colonialism and slavery. It was not. Strongly recommended.
An excellent and well-written book, which examines whether imperialism was profitable for the home country or not. This book definitely puts paid to the strange view that the wealth of rich countries today was based on colonialism and slavery. It was not. Strongly recommended.
November 20, 2024
Arguments feel a bit tentative and certain areas remain unexplained. Interesting topic though!
February 23, 2026
brought an interesting different perspective that I had never thought of.
nice and concise and reasonably written
nice and concise and reasonably written
June 13, 2025
I think this is a great overview however I could have done without the culture war nonsense which almost made me put the book down “the great awokening”
Displaying 1 - 7 of 7 reviews