Which economic system was predominant in the Caribbean during the 17th and 18th centuries?

The predominant economic system in the Caribbean during the 17th and 18th centuries was mercantilism. This system was characterized by the belief that the wealth of a nation was primarily determined by its acquisition of precious metals and the balance of trade. European powers, particularly the British, French, Spanish, and Dutch, established colonies in the Caribbean to exploit its natural resources, especially sugar, which was a highly sought-after commodity.

Under mercantilism, colonies were expected to produce raw materials for the mother country and serve as markets for manufactured goods. This created a structured trade relationship where the Caribbean colonies exported agricultural products and other resources while importing finished goods from Europe, reinforcing the economic dependency of the colonies.

The mercantilist policies also involved heavy regulations on trade and commerce, including navigation laws that restricted trade with other nations. This facilitated the extraction of wealth and resources from the Caribbean islands back to Europe, reflecting the mercantilist focus on enhancing national power through economic control.

Thus, mercantilism shaped the economic landscape of the Caribbean during this period, directing colonial economies towards a system that benefited the European powers and establishing a legacy that would influence Caribbean economies long after the 18th century.