This paper analyzes how British colonial rule altered the club-like and competitive features of chiefdoms and weakened the incentives of political leaders to be accountable to citizens. Political institutions in late pre-colonial West Africa aligned the incentives of the chiefs such that they were responsive to their people. Alignment arose because of a high degree of competition between governance providers and because political leaders were effectively the residual claimants on revenues generated from providing governance services. I identify the mechanisms by which colonialism severed the link that aligned the incentives of government with those of its citizens. British indirect rule did that by reducing political competition and softening the budget constraints of the chiefs. Toward the end of colonial rule, chiefs became less accountable to their people as evidenced by the widespread corruption and extortion by the chiefs and by their unprecedented constitutional violations and abuses of power.

Author: Liya Palagashvili

Status: Published in Public Choice

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