Colonial legacy, private property, and rural development: Evidence from Namibian countryside

Does the legacy of direct colonial rule, through its impact on property rights security, affect rural development in Africa? Although mainstream economic theory links secure property rights to development, extant micro-level evidence from the continent remains mixed. We take advantage of a natural experiment in Namibia, exploiting as-if random application of direct colonial rule that later affected property rights security. Using detailed census data and matching on underlying climatic conditions, we find evidence of more commercialized agricultural cultivation in directly ruled areas. We relate this finding to differing tenure regimes. In formerly indirectly ruled areas where land is still allocated by traditional elites, own-account agricultural activity for the market and living standards lag behind formerly directly ruled regions. Our work has direct implications for students of colonial legacies and land tenure regimes.