"The Pitfalls of National Consciousness" was one chapter of The Wretched of the Earth, a revolutionary book about imperialism, decolonization, and their effects on colonial peoples. Basically, Fanon argued that colonial governments fostered, usually deliberately, inequalities in their colonies. In particular, a class of colonial elites emerged with close ties to the mother country--usually educated there--and received positions of prominence in the colonial government. Once independence was achieved (and this colonial bourgeoisie was typically at the center of independence movements) they became the leaders of the new nation. Through their connections, education, and familiarity with European ways, they would gain wealth and even more influence, offering investment opportunities to European capitalists. They would siphon off some of this wealth for themselves, solidifying themselves as the elites. These same people, as national leaders, were the ones responsible for the emergence of what Fanon called a "national consciousness" that in turn made their wealth and power possible. So over time, the emergence of a national consciousness, promoted by a wealthy, Western-educated class, would lead to the exploitation of the poor people of these new nations--a situation not materially different than colonialism itself. In fact, Fanon argues, national consciousness can lead to dictatorship as "[p]rivileges multiply and corruption triumphs, while morality declines." Only be focusing on the well-being of all the people could a former colony avoid this fate.
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