Economics & Finance / Economic Theory / Development Economics

Divide and Conquer or the Rule of the Divided? Shocking Evidence from Africa

Stelios Michalopoulos, Elias Papaioannou

Stelios Michalopoulos and Elias Papaioannou challenge the traditional 'state-centered' view of development in Africa. Using satellite nightlight data and historical maps of pre-colonial ethnic groups, they reveal a stunning truth: modern national institutions like rule of law and corruption control have almost no impact on local economic performance. Instead, the political complexity of ethnic groups before colonialism—whether they had centralized kingdoms or were stateless—predicts today's wealth. This video breaks down the natural experiment of ethnic groups split by colonial borders, showing how history, not policy, shapes Africa's economic landscape. Discover why 'divide and rule' may actually be the 'rule of the divided'.