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The Origin of Extractive States in Africa: The Case of the British Cape Colony, 1834-1909

Gwaindepi, Abel LU and Fourie, Johan (2019) In ERSA working paper p.1-32
Abstract
The majority of African states continue to be regarded as extractive
states. We use the Cape Colony’s public expenditure to account for the
emergence of extractive states in Africa. With a sub-imperial role for
Sothern African colonial expansion, the Cape Colony became a template
for extractive practices that continue to characterize the region. Using
public expenditure data, budget debates and existing historiography, we
trace the elite competition for limited public resources that associated
the Cape’s transition from an agrarian society to a mining-led economy.
We find that the mining elites managed to make dominant coalitions that
derailed public expenditure decisions towards self-serving ends. With... (More)
The majority of African states continue to be regarded as extractive
states. We use the Cape Colony’s public expenditure to account for the
emergence of extractive states in Africa. With a sub-imperial role for
Sothern African colonial expansion, the Cape Colony became a template
for extractive practices that continue to characterize the region. Using
public expenditure data, budget debates and existing historiography, we
trace the elite competition for limited public resources that associated
the Cape’s transition from an agrarian society to a mining-led economy.
We find that the mining elites managed to make dominant coalitions that
derailed public expenditure decisions towards self-serving ends. With political
and economic influence, their desires could not be vetoed in budgets
votes and this inevitably gave the state its extractive character. The competing
interests of farmers and miners/industrialists; the lack of capital for
infrastructure investment; and limited executive constraints —widespread
features of modern African economies — led to state capture by a narrow
elite. The main lessons derived are that narrow/limited democratic spaces,
politics of personalities, exclusion based on race or class and monopolies
in key economic sectors are breeding grounds for extractive states. (Less)
Please use this url to cite or link to this publication:
author
and
organization
publishing date
type
Working paper/Preprint
publication status
published
subject
in
ERSA working paper
issue
783
pages
1 - 32
language
English
LU publication?
yes
id
82634936-c0d6-4aa6-b50c-adec5bb89527
alternative location
https://econrsa.org/system/files/publications/working_papers/working_paper_783.pdf
date added to LUP
2019-05-16 13:45:58
date last changed
2019-05-17 09:36:16
@misc{82634936-c0d6-4aa6-b50c-adec5bb89527,
  abstract     = {{The majority of African states continue to be regarded as extractive<br/>states. We use the Cape Colony’s public expenditure to account for the<br/>emergence of extractive states in Africa. With a sub-imperial role for<br/>Sothern African colonial expansion, the Cape Colony became a template<br/>for extractive practices that continue to characterize the region. Using<br/>public expenditure data, budget debates and existing historiography, we<br/>trace the elite competition for limited public resources that associated<br/>the Cape’s transition from an agrarian society to a mining-led economy.<br/>We find that the mining elites managed to make dominant coalitions that<br/>derailed public expenditure decisions towards self-serving ends. With political<br/>and economic influence, their desires could not be vetoed in budgets<br/>votes and this inevitably gave the state its extractive character. The competing<br/>interests of farmers and miners/industrialists; the lack of capital for<br/>infrastructure investment; and limited executive constraints —widespread<br/>features of modern African economies — led to state capture by a narrow<br/>elite. The main lessons derived are that narrow/limited democratic spaces,<br/>politics of personalities, exclusion based on race or class and monopolies<br/>in key economic sectors are breeding grounds for extractive states.}},
  author       = {{Gwaindepi, Abel and Fourie, Johan}},
  language     = {{eng}},
  month        = {{05}},
  note         = {{Working Paper}},
  number       = {{783}},
  pages        = {{1--32}},
  series       = {{ERSA working paper}},
  title        = {{The Origin of Extractive States in Africa: The Case of the British Cape Colony, 1834-1909}},
  url          = {{https://econrsa.org/system/files/publications/working_papers/working_paper_783.pdf}},
  year         = {{2019}},
}