<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-4-chapter-07 -->

# Colonial Administrative Efficiency

## Definition

The effectiveness with which colonial governments manage public affairs relative to their cost, including the provision of basic services, maintenance of order, and implementation of local policies. Colonial administration typically achieved reasonable outcomes at relatively low cost due to limited scope and local accountability.

## Source Chapter

Book IV, Chapter 7

## Context

Smith uses colonial administrative efficiency to argue that colonies could reasonably contribute more to imperial expenses. He contrasts the modest cost of effective local government with the substantial expenses of military protection and monopoly maintenance, suggesting a more balanced fiscal relationship would be feasible.

## Economic Domain

Regulation

---
