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]

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