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Extract entities, map to VSM, and synthesize analysis.
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<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-4-chapter-07 -->
# Colonial Economic System Governance
## Definition
The structures and processes through which colonial economic policies are made and administered, including legislative bodies, administrative agencies, and enforcement mechanisms. Better governance typically produces more effective and beneficial economic outcomes.
## Source Chapter
Book IV, Chapter 7
## Context
Smith analyzes colonial governance structures, arguing that monopoly-based systems often suffer from poor governance and lack of accountability. He contends that more open arrangements with greater local participation would produce better governance and economic outcomes.
## Economic Domain
Regulation
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