Colonial experience and postcolonial underdevelopment in Africa

In this paper, we analyze the connection between the history of colonial rule and postcolonial development in Africa. We focus on the fact that many African colonies were governed by indirect rule. Under indirect rule, indigenous people are divided into two groups: a privileged ruling group and an unprivileged ruled group. Our model assumes that the ruled group cannot observe how the resources appropriated from them are divided between the colonial ruler and the ruling group. In this economy, excessive exploitation by the colonial ruler creates distrust among indigenous groups and a negative effect on postcolonial economic and political development.