Concessions, Violence, and Indirect Rule: Evidence from the Congo Free State

Abstract All colonial powers granted concessions to private companies extract natural resources during the era. In Africa, these were characterized by indirect rule and violence. We use arbitrarily defined borders of rubber in north Congo Free State examine causal effects this form economic organization on development. find that historical exposure causes significantly worse education, wealth, health outcomes. To mechanisms, we collect survey experimental data from individuals near a former concession boundary. village chiefs inside provide fewer public goods, are less likely be elected, more hereditary. However, trusting, cohesive, supportive sharing income. interpret our results as reflecting how institutions culture may act substitutes context widespread system.