Speaker
Description
Concessions to private companies were a common form of economic and administrative organization during the colonial era in Africa. In 1891, Portugal granted the central and northern regions of Mozambique as concessions to private companies, the Mozambique and Niassa Companies. These companies operated with state-like powers and implemented a vast forced labour regime that exploited the natural resources of the leased territories. I use the river-defined concession borders to provide evidence on the long-term effect of this form of private colonization on human development. Using a novel dataset and a regression discontinuity (RD) design, I find that the concession system had contrasting effects on present-day wealth, health, and education outcomes. Individuals living in villages located just inside the former concession borders of the Mozambique Company have significantly higher levels of health and education compared to those living just outside them. They are also wealthier when considering the operational de facto borders. In contrast, individuals living in villages located just inside the former concession borders of the Niassa Company have significantly lower levels of health and education compared to those living just outside them. My results shed light on the enduring impact of colonial-era private concessions and aim to advance understanding of the origins of the lack of integration in Mozambique.
