I'm not sure what the development of daru is. does he change?
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The most important thing to Daru is that he find a sense of place in Algeria, that he is accepted in some way by the people. Everywhere else, including France, Daru feels away from home or exiled. Daru abhors violence, be it from the Arabs or the French. Daru develops as a static character until perhaps the end of the story: he only feels more isolated than before.
There is irony here that reflects the irony that Daru has always known about his existence in Algeria. Despite his affection for the people, he will never be considered one of them. Daru gives the prisoner a choice of where to go, freedom or prison yet he is condemned as a French oppressor who handed an Arab brother to the French authorities.