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# Colonial Economic System Resilience

## Definition

The capacity of colonial economies to withstand and recover from shocks, including market disruptions, policy changes, and external pressures. More open systems typically demonstrate greater resilience through diversified economic activity and adaptive capacity.

## Source Chapter

Book IV, Chapter 7

## Context

Smith argues that monopoly-based colonial systems often lack resilience, creating artificial dependencies and limiting adaptive capacity. He contends that more open arrangements would promote greater resilience through diversified economic relationships and autonomous adjustment capabilities.

## Economic Domain

General Theory

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