This study investigates the consequences of postwar decolonization for political and economic development in former European colonies. While extensive research shows negative effects from colonial rule itself, this paper examines outcomes immediately after independence using two-way fixed-effects models.

Using data from various post–World War II independence cases, we analyze four key areas: democracy levels, internal conflict rates, government revenue growth, and economic expansion. Our findings reveal a surprising contrast:

* Statistical Analysis: Examines consequences of decolonization via two-way fixed-effects models.

* Political Outcomes: Democracy increased significantly as colonies gained autonomy before independence.

* Economic & Conflict Outcomes: Post-independence changes were minimal in conflict, revenue growth, and economic expansion.

Considering colonial institutions or adjusting for endogenous timing of independence doesn't change these results. This nuanced conclusion—democratic gains but no significant improvements elsewhere—suggests decolonization's political effects may have been overstated despite the long-term negative legacy of European colonialism.