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11.1 Administrative and economic reforms

3 min readaugust 7, 2024

The were a game-changer for Spain's colonies. They aimed to tighten control and boost cash flow by overhauling how things were run. Think new bosses, streamlined systems, and the king flexing his muscles over everyone, even the Church.

On the money side, it was all about opening up trade and squeezing more taxes out of the colonies. They scrapped old , let more ports get in on the action, and got creative with new ways to fill the royal coffers. But all this change stirred up some serious tension.

Administrative Reforms

Centralization and Restructuring of Colonial Administration

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  • Bourbon Reforms were a series of administrative and economic changes implemented by the Spanish Bourbon monarchs in the 18th century to increase control over the colonies and boost revenue
  • divided the colonies into smaller administrative units called intendancies, each governed by an who reported directly to the crown, reducing the power of viceroys and increasing centralized control
  • were royal inspectors sent to the colonies to investigate and report on the administration, helping the crown identify areas for reform and root out corruption
  • efforts aimed to concentrate power in the hands of the Spanish crown, reducing the autonomy of colonial officials and institutions
  • involved streamlining , creating new positions and departments to improve efficiency and oversight

Regalismo and the Assertion of Royal Authority

  • was the assertion of the absolute power and authority of the monarch over the Church and all other institutions in the colonies
  • The crown sought to limit the influence of the Catholic Church in colonial affairs, reducing its political power and economic privileges
  • Assertion of extended to other areas, such as the regulation of trade, taxation, and the administration of justice
  • The Bourbon monarchs aimed to reinforce their absolute power and divine right to rule, challenging traditional power structures in the colonies

Economic Reforms

Trade Liberalization and the Removal of Monopolies

  • Free trade decrees, such as the 1778 , opened up colonial trade to more Spanish ports and reduced restrictions on inter-colonial trade, stimulating economic growth and competition
  • The crown abolished various trade monopolies, such as the , which had limited colonial trade to a single Spanish port, allowing for more direct trade between the colonies and Spain
  • Removal of monopolies and trade liberalization aimed to increase the flow of goods and wealth between Spain and its colonies, benefiting both the colonial economies and the Spanish treasury

Tax Reforms and Revenue Generation

  • The Bourbon monarchs implemented various to increase revenue from the colonies, such as the extension of the , a sales tax, to previously exempt goods and transactions
  • Tax collection was made more efficient through the creation of new tax bureaus and the appointment of dedicated
  • The crown sought to reduce tax evasion and smuggling, which had long deprived the treasury of significant revenue
  • Other tax reforms included the establishment of new taxes on specific goods, such as tobacco and alcohol, and the revision of existing tax rates to optimize revenue generation
  • The increased tax burden on colonial subjects, particularly the lower classes and indigenous populations, contributed to growing social tensions and resentment towards Spanish rule
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© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.

© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
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