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How states acquire the ability to raise taxes is a central question in the study of institutions and economic development in economic history. This paper uses new data on 'ËœNative Authorities', or African local governments, to investigate tax compliance under indirect rule in British Africa. In theory, Native Authorities represented the integration of indigenous institutions into colonial rule. However, the relationships of African states with the colonial government varied, and African communities experienced considerable political and economic change during the colonial period. The paper investigates the relationship between tax compliance, the autonomy of African states within the colonial system, local levels of income and education, and Native Authority institutions. Understanding the dynamics of Native Authority tax collection helps address wider questions about African processes of state-building, the emergence of an 'uneven topography' of sub-national institutions during the colonial period, and the ways in which Africans shaped colonial rule.

In Sub-Saharan Africa we find some of the highest levels of income inequality in the world. Nevertheless, we generally know very little about the historical development of inequality. In this paper we look at how inequality developed in colonial and post-colonial Botswana. We show that income inequality started rising in the 1940s and peaked in the mid-1970s about the time that the economy switched from cattle to diamonds. Since the 1990s, it has then declined somewhat. Following the tradition of Kuznets we discuss how this rise and decline could be related to a potential structural transformation of the economy.

The historical role of European farming in southern and central Africa is a delicate matter that has received a great deal of attention among scholars over the years. Going through this vast literature a striking consensus emerges: success or failure of European farming in southern Africa was to a large extent depending on their access and control over labour. These propositions have so far never been systematically and empirically tested. This paper is an attempt to do that by analyzing the ‘wage-burden’ European settler farmers faced. The wage-burden is identified by measuring wage shares (total amount paid in the form of wages as a share of total profits) on European farms in colonial Africa. Based on archival documents we construct time-series for value of output, transportation costs, investments and wage shares for European tobacco and tea farms in colonial Malawi. Our estimates show that the wage burden decreased significantly after 1930s, i.e. the European farmers were able to capture a larger part of the rent over time. We argue that the developments cannot be explained by domestic colonial policies, but changes in regional migration patterns, which had a significant impact on the supply of farm labour.

In this paper we estimate the level and inequality of income for Bechuanaland Protectorate by constructing four social tables between 1936 to 1964 using colonial archives and anthropological records. We present a working hypothesis that there is need to further analyze Botswana's colonial era if we are to understand several aspects of contemporary economic structures. Our focus is on identifying the roots of post-independence high levels of inequality. We find that first of all that migrant labour to neighbouring South Africa earned well relative to domestic labour in the Protectorate, both in the formal and traditional sectors. Remittances their families back home and became an important strategy for the poorer segments of society to stay at or above subsistence. Second, the creation of a beef export sector in the 1930s brought with it new opportunities to access export incomes and starting in the 1940s this led to increasing income inequalities and a polarization in cattle holdings. Third, wages for government officials were forging ahead creating an increasing income divide between public and private formal employment. In conclusion we infer that Botswana's contemporary institutional inequality has far reaching historical roots.

This paper addresses the long-term impact of Sub-Saharan Africa's indigenous systems of slavery on its political and economic development, based on an analytical survey of the literature and data collected from anthropological records. We develop a theory to account for this based on the framework proposed by North et al. (2009), where indigenous slavery may have impeded the transition from a 'limited access state' centred around personal relations to an 'open access state' based on impersonal rule of law and widely shared access to public and private organisations. In a quantitative analysis we find that indigenous slavery is robustly and negatively associated with the quality of governance and with current income levels.