“FOR THE PUBLIC BENEFIT” RAILWAYS IN THE BRITISH CAPE COLONY African economic history working paper series No. 30/2016 Alfonso Herranz-Loncán, University of Barcelona
[email protected] Johan Fourie, Stellenbosch University
[email protected] ISBN 978-91-981477-9-7 AEHN working papers are circulated for discussion and comment purposes. The papers have not been peer reviewed, but published at the discretion of the AEHN committee. The African Economic History Network is funded by Riksbankens Jubileumsfond, Sweden 1 1 “For the public benefit”? Railways in the British Cape Colony ALFONSO HERRANZ-LONCÁN2 AND JOHAN FOURIE3 Built mostly to support the early mining industry, the Cape Colony’s railways reduced the cost of transport to the interior and increased labor productivity in the Colony from 1859 to 1905 by, we calculate, 30 percent. Little of the gains went to the state-owned company: the Cape parliament seems always to have seen the railways as a means to development. But the politically overrepresented western parts of the Colony gained much more than underrepresented areas like Basutoland or the Transkei. While boosting the economy, the railways also had distributional effects, with consequences for racial segregation in twentieth- century South Africa. Keywords: railways, infrastructure, public goods, South Africa, social savings JEL-code: N4, H4, O1 1 We thank the following for comments and suggestions: Eltjo Buringh, Estian Calitz, Kerstin Enflo, Ewout Frankema, Erik Green, Jan Greyling, Oscar Gelderblom, Ed Kerby, Di Kilpert,