AUA Why Nations Fail - Daron Acemoglu | Page 382

(this page–this page), proposed that fences be placed around the mining areas and the monopoly rights auctioned off. They wanted an Australian version of the Sierra Leone Selection Trust. Yet many in Australia wanted free access to the gold mining areas. The inclusive model won, and instead of setting up a monopoly, Australian authorities allowed anyone who paid an annual mining license fee to search and dig for gold. Soon the diggers, as these adventurers came to be known, were a powerful force in Australian politics, particularly in Victoria. They played an important role in pushing forward the agenda of universal suffrage and the secret ballot. We have already seen two pernicious effects of European expansion and colonial rule in Africa: the introduction of the transatlantic slave trade, which encouraged the development of African political and economic institutions in an extractive direction, and the use of colonial legislation and institutions to eliminate the development of African commercial agriculture that might have competed with Europeans. Slavery was certainly a force in Sierra Leone. At the time of colonization there was no strong centralized state in the interior, just many small, mutually antagonistic kingdoms continually raiding one another and capturing one another’s men and women. Slavery was endemic, with possibly 50 percent of the population working as slaves. The disease environment meant that large-scale white settlement was not possible in Sierra Leone, as it was in South Africa. Hence there were no whites competing with the Africans. Moreover, the lack of a mining economy on the scale of Johannesburg meant that, in addition to the lack of demand for African labor from white farms, there was no incentive to create the extractive labor market institutions so characteristic of Apartheid South Africa. But other mechanisms were also in play. Sierra Leone’s cocoa and coffee farmers did not compete with whites, though their incomes were still expropriated via a government monopoly, the marketing board. Sierra Leone also suffered from indirect rule. In many parts of Africa where the British authorities wished to use indirect rule, they found peoples who did not have a system of centralized authority who could be taken over. For example,