Serving God and Mammon: The ‘Minerals-Railway Complex’ and its effects on colonial public finances in the British Cape Colony, 1810-1910

Forskningsoutput: Working paper

Standard

Serving God and Mammon: The ‘Minerals-Railway Complex’ and its effects on colonial public finances in the British Cape Colony, 1810-1910. / Gwaindepi, Abel.

2019. uppl. Stellenbosch University, 2019. s. 1-38 (Stellenbosch Working Paper Series ; Nr. WP07/2019).

Forskningsoutput: Working paper

Harvard

Gwaindepi, A 2019 'Serving God and Mammon: The ‘Minerals-Railway Complex’ and its effects on colonial public finances in the British Cape Colony, 1810-1910' Stellenbosch Working Paper Series , nr. WP07/2019, 2019 uppl, Stellenbosch University, s. 1-38.

APA

Gwaindepi, A. (2019). Serving God and Mammon: The ‘Minerals-Railway Complex’ and its effects on colonial public finances in the British Cape Colony, 1810-1910. (2019 uppl.) (s. 1-38). (Stellenbosch Working Paper Series ; Nr. WP07/2019). Stellenbosch University.

CBE

Gwaindepi A. 2019. Serving God and Mammon: The ‘Minerals-Railway Complex’ and its effects on colonial public finances in the British Cape Colony, 1810-1910. 2019 uppl. Stellenbosch University. s. 1-38. (Stellenbosch Working Paper Series ; WP07/2019).

MLA

Vancouver

Gwaindepi A. Serving God and Mammon: The ‘Minerals-Railway Complex’ and its effects on colonial public finances in the British Cape Colony, 1810-1910. 2019 uppl. Stellenbosch University. 2019 mar 18, s. 1-38. (Stellenbosch Working Paper Series ; WP07/2019).

Author

Gwaindepi, Abel. / Serving God and Mammon: The ‘Minerals-Railway Complex’ and its effects on colonial public finances in the British Cape Colony, 1810-1910. 2019. uppl. Stellenbosch University, 2019. s. 1-38 (Stellenbosch Working Paper Series ; WP07/2019).

RIS

TY - UNPB

T1 - Serving God and Mammon: The ‘Minerals-Railway Complex’ and its effects on colonial public finances in the British Cape Colony, 1810-1910

AU - Gwaindepi, Abel

PY - 2019/3/18

Y1 - 2019/3/18

N2 - The resource curse literature underscores the fact that extractive economies face challenges in diversifying their economies. What is less explored are the public finance challenges encountered in these economies when the extractive industries are completely privatized. Using a recently compiled dataset on public revenues, expenditures and debt, this paper explores the nexus between the privatized extractive sector operations and public finance policies of the Cape Colony between 1810 and 1910. The paper finds that despite the natural resource endowment, the Cape Colony became heavily indebted and had huge budget deficits by the time it joined the Union of South Africa in 1910. After the discovery of diamonds, competition for resource-rents caused a slowdown and in some instances reversed the progress made in consolidating state institutions. The drive towards a national program of development inherent in self-governing colonies was overpowered when the competition for resource-rents culminated in rent-seeking led by the interests in the monopolized extractive sector. Rather than being the main source of government revenues and a basis for inclusive economic progress, as expected in a self-governing settler colony, diamonds became a trap through the operations of what I call a ‘Minerals-Railway complex’. The insights from the study have important implications for our understanding of both settler colonialism in Sub-Sahara Africa as well as the management of natural resources in developing economies.

AB - The resource curse literature underscores the fact that extractive economies face challenges in diversifying their economies. What is less explored are the public finance challenges encountered in these economies when the extractive industries are completely privatized. Using a recently compiled dataset on public revenues, expenditures and debt, this paper explores the nexus between the privatized extractive sector operations and public finance policies of the Cape Colony between 1810 and 1910. The paper finds that despite the natural resource endowment, the Cape Colony became heavily indebted and had huge budget deficits by the time it joined the Union of South Africa in 1910. After the discovery of diamonds, competition for resource-rents caused a slowdown and in some instances reversed the progress made in consolidating state institutions. The drive towards a national program of development inherent in self-governing colonies was overpowered when the competition for resource-rents culminated in rent-seeking led by the interests in the monopolized extractive sector. Rather than being the main source of government revenues and a basis for inclusive economic progress, as expected in a self-governing settler colony, diamonds became a trap through the operations of what I call a ‘Minerals-Railway complex’. The insights from the study have important implications for our understanding of both settler colonialism in Sub-Sahara Africa as well as the management of natural resources in developing economies.

KW - public finances

KW - fiscal capacity

KW - elite power

KW - economic development

KW - natural resources

KW - African colonialism

KW - Cape Colony

KW - H30

KW - H41

KW - H50

KW - H61

KW - N17

M3 - Working paper

VL - 44

T3 - Stellenbosch Working Paper Series

SP - 1

EP - 38

BT - Serving God and Mammon: The ‘Minerals-Railway Complex’ and its effects on colonial public finances in the British Cape Colony, 1810-1910

PB - Stellenbosch University

ER -