The earliest Spanish explorers, beginning with Christopher Columbus, imposed European political structures upon the New World. The primary institution created was that of encomienda, by which Amerindian communities were distributed to pacify rebellious settlers, and to serve as slaves or serfs. Despite misgivings, the Spanish government allowed the proliferation of this system, as it ensured the immediate and continuing profitability of the colonies. The Spanish government also managed to increase gold production through offering incentives to individual entrepreneurs. This had enormous impact upon the Arawak and Carib of the Caribbean, as they were not only ravaged by European disease, but were forced to work hard labour in mines. These mines were located in the interior of the islands, and although the Amerindians were not necessarily deprived of food, they were removed from the coast and its varied supply of dietary elements, and hence became malnourished. When, by 1509, virtually all of the local Amerindians had died, the Spanish settlers began raiding other islands for slaves. Shortly thereafter, the import of African slaves began, a forced migration that was to dramatically and permanently affect the economy, politics, societies, and culture of both North and South America.

The encomiendas, which often functioned as territorial and administrative bodies, were based on traditional indigenous structures. This meant that, although the Spanish demanded labour from the Amerindians, there was minimal relocation. In addition, the indigenous peoples retained ownership of their own lands within the encomienda. On the mainland, the encomiendas were enormous, and those who held them, the encomenderos, retained a significant economic advantage. Cortés, for example, received twenty-three encomiendas, containing a total of 115,000 Amerindians. In general, royal officials, clergy, religious foundations, and court favourites received the best and largest encomiendas.

Although the Spanish Crown outlawed Amerindian slavery and the encomienda system in 1542 and 1550, respectively, distance worked against their authority and few settlers complied with this new legislation. In many areas of the Caribbean this law had little real impact, as most of the Amerindian population had died.

Other European nations in the Caribbean, such as the French and Dutch, often allowed their joint-stock companies to administer their colonies. Gradually, the colonies attracted large enough populations to be governed as directly by European governments. However, not all who were involved in politics were white. On Dominica, Montserrat, and Nevis most public officials were middle-class men of African origin. After emancipation, systems of representative government were gradually replaced by more direct rule by the state, with representative governance coming to a complete halt after a governor’s mismanagement of a riot in 1865. These Crown governments did little for the economy of the Caribbean, but they were able to preserve public order and make improvements to the infrastructure of the islands.