ABSTRACT
Britain was uniquely favoured by a combination of agricultural progress, surplus capital for investment coming from expanding commerce and the exploitation of overseas colonies, the possession of plentiful coal and iron ore, and fast-flowing streams for water power. Capital was represented in the main by tiny, dispersed parcels, the tools and equipment that could be housed in a modest workshop or a single room in the house. The most dramatic conflict was that of the British and French in India where both sought to capitalize on the anarchic conditions that followed the collapse of the Mogul empire with the death of Aurangzeb in 1707. The phase in the development of capitalism was characterized too by a progressive shift in the distribution of income. Even in those parts of Europe where labour services were not increased, the gap between rich and poor tended to widen.
