Ellen Hillbom

In this chapter, focus is on the period 1945-1960 and the discussion is divided into three thematic sections: First, macro-economic structures including growth trends and the composition of the economies. Second, colonial budgets including state finance, fiscal capacity, and economic policy. Third, changes in occupations, incomes, and living standards primarily for the African subjects. The text presents illustrative examples from the region and covers the economic interests and strategies of numerous groups amongst both the expatriates and the local populations.
During the late colonial era, the focus of economic strategies was on supporting the export sectors that were dominated by cash crop production and extractive industries. While the empires paid for the post-war reconstruction of the European metropoles, colonies also experienced economic growth. Increasing incomes and changing consumption patterns created some opportunities for local agro-processing, manufacturing, and services, but there were few larger initiatives for diversification of the colonial economies. Growth was extensive rather than intensive, and the reliance on a small number of commodities made the economies vulnerable to fluctuating world market prices.
The colonial budgets grew due to increasing tax revenues and more generous grants and loans from the metropoles. Subsequently, there was increasing government spending on the administration, infrastructure, and human development. Urbanisation led to substantial social transformation with new types of occupations, changing consumption patterns, unionisation, and new relationships between the urban populations and the emerging African political leadership. With an expanding wage sector and opportunities for engaging in export-oriented commercialization, there was growing differentiation and increasing income inequality. Finally, living standards also improved through better hygiene and heath care, housing, infrastructure, and other investments in social development.