AUA Why Nations Fail - Daron Acemoglu | Page 308

was an outcome of government policy, which had forcibly stamped out African economic growth and created the reservoir of cheap, uneducated African labor to be employed in European-controlled mines and lands. After 1913 vast numbers of Africans were evicted from their lands, which were taken over by whites, and crowded into the Homelands, which were too small for them to earn an independent living from. As intended, therefore, they would be forced to look for a living in the white economy, supplying their labor cheaply. As their economic incentives collapsed, the advances that had taken place in the preceding fifty years were all reversed. People gave up their plows and reverted to farming with hoes—that is, if they farmed at all. More often they were just available as cheap labor, which the Homelands had been structured to ensure. It was not only the economic incentives that were destroyed. The political changes that had started to take place also went into reverse. The power of chiefs and traditional rulers, which had previously been in decline, was strengthened, because part of the project of creating a cheap labor force was to remove private property in land. So the chiefs’ control over land was reaffirmed. These measures reached their apogee in 1951, when the government passed the Bantu Authorities Act. As early as 1940, G. Findlay put his finger right on the issue: Tribal tenure is a guarantee that the land will never properly be worked and will never really belong to the natives. Cheap labour must have a cheap breeding place, and so it is furnished to the Africans at their own expense. The dispossession of the African farmers led to their mass impoverishment. It created not only the institutional foundations of a backward economy, but the poor people to stock it. The available evidence demonstrates the reversal in living standards in the Homelands after the Natives Land Act of 1913. The Transkei and the Ciskei went into a prolonged economic decline. The employment records