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# Colonial Economic System Evolution

## Definition

The long-term development and transformation of colonial economic arrangements over time, including the progression from simple agricultural economies to more complex commercial and industrial systems. This evolution reflects the natural development of economic capabilities and market relationships.

## Source Chapter

Book IV, Chapter 7

## Context

Smith presents colonial economic evolution as a natural process that occurs when unimpeded by artificial restrictions. He argues that monopoly policies often prevent this natural evolution, forcing colonies into economically suboptimal development paths that limit their long-term potential.

## Economic Domain

General Theory

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