Culture and Contracts: The Historical Legacy of Forced Labour
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Abstract Can divide-and-rule colonial policy be responsible for contemporary ethnic tension? This paper empirically investigates the role of a divisive and extractive colonial policy on Hutu-Tutsi discord in Rwanda and Burundi. It shows that Hutu with a family history of subjugation to forced labour by Tutsi chiefs are less trusting of Tutsi today and less willing to partner with Tutsi for a cooperative task. This may have implications for agriculture insurance agreements since Hutu are more agrarian and Tutsi are more pastoral. Indeed, Hutu with a forced labour family history make fewer inter-household insurance agreements and are more likely to experience default.