Postcolonial states inherited extractive economic and social institutions, characterised by a sharply marked dualism between a small formal sector and a huge informal sector, including farmers. 
Nchi zilizowahi kutawaliwa na wakoloni zilirithi uchumi na taasisi za kijamii zenye misingi ya kinyonyaji, hali inayodhihirishwa na pande mbili zenye tofauti kubwa kati ya sekta ndogo rasmi na sekta kubwa isiyo rasmi, ikiwa ni pamoja na kilimo.