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8 Africa and the global economy Strategies for Development Ngos[1]
8 Africa and the global economy Strategies for Development Ngos[1]
8 Africa and the global economy Strategies for Development Ngos[1]
8 Africa and the global economy Strategies for Development Ngos[1]
8 Africa and the global economy Strategies for Development Ngos[1]
8 Africa and the global economy Strategies for Development Ngos[1]
8 Africa and the global economy Strategies for Development Ngos[1]
8 Africa and the global economy Strategies for Development Ngos[1]
8 Africa and the global economy Strategies for Development Ngos[1]
8 Africa and the global economy Strategies for Development Ngos[1]
8 Africa and the global economy Strategies for Development Ngos[1]
8 Africa and the global economy Strategies for Development Ngos[1]
8 Africa and the global economy Strategies for Development Ngos[1]
8 Africa and the global economy Strategies for Development Ngos[1]
8 Africa and the global economy Strategies for Development Ngos[1]
8 Africa and the global economy Strategies for Development Ngos[1]
8 Africa and the global economy Strategies for Development Ngos[1]
8 Africa and the global economy Strategies for Development Ngos[1]
8 Africa and the global economy Strategies for Development Ngos[1]
8 Africa and the global economy Strategies for Development Ngos[1]
8 Africa and the global economy Strategies for Development Ngos[1]
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8 Africa and the global economy Strategies for Development Ngos[1]

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  • Transcript

    • 1. African Development Practice
      • Today’s News Presentation
      • Upcoming class events
      • Africa in the Global Economy
      • Strategies for Development
      • Role of “Civil Society” and NGOs
    • 2. Africa in the context of globalization
      • Continent largely on side lines
      • Have Wallerstien’s predictions come true?
        • Decline in nonessential exports
        • Increase food crises
        • Social and economic disintegration
      • Even the so-called prosperous take on debt
      • But are things changing now?
    • 3. Africa’s role in the global economy
      • Trade in extraction industries to former colonizer
      • Aid, Debt, and Adjustment
      • Transnational Corporations and African underdevelopment
        • Human Rights Accountability
        • What about China’s role now?
    • 4. Trade in extraction industries to former colonizer
      • Non-Diversified economies often dependent on single commodity for export with prices set abroad
        • Priceinelstic- declines in prices do not mean increase in demand
        • Prices set in London, New York and other metropoles
        • Prices continue to decline
      • Some countries diversified
        • Kenya, IC then doing badly, in 2007 doing well
        • Attempts to diversify across continent in Agriculture and manufacturing
      • Most do the opposite
        • Nigeria becomes dependent on oil
      • Africa mostly still involved in extraction with processing done elsewhere
    • 5. Transnational corporations and African Development
      • Relatively small compared to other places
      • Primarily in the extraction industry with some exceptions mostly in South Africa
        • De Beers, Royal Ducth Shell, Anglo-American, Lornho
        • Exceptions: Kenya’s industrial area EPZ, South Africa as continent’s processing zone, Nestle and unilever factories
      • Most corporations headquartered and supported by former colonizer (France and Britain)
      • What about Human Rights and corporations?
    • 6. What about Human Rights and corporations?
      • Talisman oil in Sudan aiding genocide against southerners for oil
      • Royal Dutch Shell in Nigeria with Ken Saro-Wiwa
      • Chad/Cameroon pipeline and Niger Delta
      • Firestone slavery in Liberia
      • Today because of pressure from HR activists many western companies cleaned up, but Chinese companies extracting resources across Africa
      • Profits repatriated out of Africa
    • 7. China and Africa
      • Human Rights and China
        • “ See no evil” policy for doing business in Sudan
        • Chinese cheap labor undercuts African wages
        • Chinese forced labor and mine accidents in Zambia
      • Potential Development benefits
      • Because interest is resources, African leaders can negotiate without strings attached
      • Chinese interest comes at a time when the West has turned away.
    • 8. Africa as a market
      • Mobile phones
      • Consumer Goods and expansion of S.A retail to “Africa”
      • AID
      • Micro-finance
        • Kenya’s recent credit crunch
      • Back up at the ports and problems getting goods in and out of Africa.
        • E.g. Tanzama RR, and 2008 Mombasa backup
    • 9. Aid, Debt, and Adjustment
      • During Good Times after colonialism massive debt occurred
        • Some debt funded ruler’s Swiss bank accounts while others went to public welfare programs
        • Most debt financed “pre-conditions” of growth
          • Remember Rostow
      • Even under the best conditions what does Aid system what does this do for indigenous knowledge and in worst case what did it do…..
    • 10. Aid, Debt, and Adjustment
      • By 1970s need to finance debt became paramount
      • By 1980s WB and IMF collected more in debt repayment than dispersed in loans
      • Structural Adjustments Programs implemented as condition of aid or loans
      • Aid requires donor’s equipment, consultants
      • ODA declines after end of Cold War, despite rhetoric
    • 11. Structural Adjustments Programs
      • Policy directions of Saps
        • Massive currency devaluation
        • Reduction of internal and external deficits
        • Liberalization of economy for comparative advantage
        • Encouraging foreign investment
        • Removal of high tariffs and quotas to let “market work”
        • Elimination of price controls and subidies
        • Cuts in state sector
        • Cost recovery fees (user fees)
      • Designed to make economy more efficient and reduce debt, but in many cases increased debt load
    • 12. SAPS CONTINUED
      • Conditions meant
        • User fees for health and education
        • Privatization of state run enterprises
        • Reduction in public sector employment
      • Encouraged foreign investment, but again extraction no investment occurred.
      • Reduction only occurred where oil found, but even there poor did not benefit
      • But today NEPAD and MDG change focus to HC
    • 13. Background to Development ideologies
      • Optimism from both East, West, and South
      • 1960s, the development decade projected 5% growth
        • East (Warsaw pact) saw independent Africa as part of the master plan for Communism
        • West particularly USA excited because of new markets to be opened and spread its way of life
        • South (continent) to taste the fruits of Africa’s wealth
      • Capitalist Development paths
      • Popular Socialist Development Paths
      • Afro-Marxist Development Paths
    • 14. Capitalist Development Paths
      • Economic mode prior to independence
        • Most sectors controlled by Europeans although Indians, Arabs and some Africans allowed to participate in small capitalist ventures
      • Commonly referred to as “liberal/free market”
      • After Independence pattern continued with foreign and domestic investment as development strategy in some countries
        • Kenya,
        • Cote’d’Ivoire,
        • Nigeria,
        • Gabon
    • 15. Capitalist Development Paths
      • In some cases capitalist ventures become part of state and other cases regulation inhibits business
      • On the other hand, where regulation did not exist wealth simply transferred to former colonizer and local elite
      • Problems with this path fall under Rodney’s thesis
    • 16. Popular Socialist paths
      • Several countries believed that capitalism was incompatible with Africa’s communal lifestyle
      • Popular (African) socialism as alternative by
        • Ghana’s Pan Africanist socialism
        • Tanzania’s Ujamaa
      • Emphasis on rural development and eliminating disparities between classes
      • Some state driven projects and enterprises
      • Ended due to coups, SAPS, and inability to finance itself
    • 17. Afro-Marxist paths
      • With Support of Warsaw Pact massive state driven Marxist projects from a command and control economy
      • Top down development
      • Ignored Indigenous Development
      • State Farms and Factories modeled on Soviet system
        • Ethiopia’s Mengistu Dreg govt
        • Angola
        • Burkina-Faso
        • Benin
    • 18. Afro-Marxist paths
      • Propped up by Soviets and Warsaw pact
      • Very popular in former Portuguese colonies and in Ethiopia due to lack of social services with Feudal history
      • “ Frontline” states unable to implement development plans due to heavy military spending to combat S.A. backed insurgency
      • When Soviet Union collapsed, economic liberalization made a condition of aid and loans
    • 19. End of Development Ideologies?
      • SAPs become mandates that destroy choice
      • Cold War ends
      • But current debate between “pro-poor” human capital and “Pro-growth” neo-liberal ideologies
      • Is the war on terror a new ideological frame work after the end of the cold war?
      • NEPAD and MDG?
    • 20. Development at the local level in Africa
      • Human Development schemes
        • Development from below->development from within->Participatory Development-> now the HR approach to development
        • Sometimes criticized as development from “without” and disconnected “nexus of relationships” and scale
      • Local development
        • IK as method of doing things
        • Local associations , HTAs, now AIDS support and NCPs in Brody’s discussion
        • But often puts other “duty bearers” e.g. govt, int’l orgs off hook with “development on the cheap”
      • Remittances from abroad as development?
    • 21. NGOs, CBOs, HTAs, CSO, ect
      • Grassroots or new form of top down
        • HTAs, vs. donor funded CBOS
        • $$$$$$
      • Is the dominant civil society truly people local driven?
      • Who is the community, Who benefits? HTA?
      • Opposition to civil societies?

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