PIA 2574: African Development THE AFRICAN CRISIS AND ITS END-AND THE FUTURE OF THE DEVELOPMENTAL STATE PIA 2574: African Development

Author of the Week- Robert Bates: The Structural Adjustment Argument Markets and States in Tropical Africa Important influence on rational choice theory THESIS- Need to consider markets and how they can be distorted by state decisions in terms of producers and prices, consumer goods and factors of production

SAPS- Structural Adjustment Programs or the Washington Consensus. Robert H. Bates is Eaton Professor of the Science of Government in the Departments of Government and African and African American Studies, Harvard University Born: c. 1942 A Major Influence on Public Policy Reforms SAPS- Structural Adjustment Programs or the Washington Consensus.

The Economy and the State Public Sector Reform and SARs

Robert Bates Government policy subsidizes urban dwellers Agricultural production used (or misused) to fund urban capital accumulation and/or capital flight The state, in effect taxes farmers for state sponsored “crony capitalism” and excessive access “rents”

Nigerian Cartoon, 2007

Robert Bates The result is the depression of prices for cash crops The key to understanding the economic system in Africa is in historical patterns of prices- depression that goes back to the colonial period. Monsopsonies- use of state agencies (often called marketing boards) to control marketing and sales of agricultural products.

Colonial Marketing Boards

Robert Bates The state distorts agricultural marketing structures to divert gains to be had from commercial agriculture to other interest groups (the organizational bourgeoisie) employed in the state and in state controlled industries. Result: the “Exit Option” for rural dwellers Result- Structural Adjustment

Structural Adjustment: The Response to Bates The problem of debt Stabilization vs. Conditionality Public Sector Reform- Policy Reform Heavily Indebted Poor Countries Initiative (HIPC)

Debt as a problem- Issues: The concepts of market and productivity International systemic hegemony International competition within markets Complementarities and non-flexible prices

Policy Reduction and Growth Facility/ Poverty Reduction Strategy Paper (PRGF)

Technical Assistance Bias to international trade Back to the future- get the LDC economy back to the 1950s Dependent development- is it dependent and is it development

An African Viewpoint of Poverty Assistance

The Current State of Financial Management IMF Stabilization- key: currency reform, auctions and trade liberalization World Bank and UNDP "Management"- Opposing views to SAPs Absence of recurrent budgets Military Alliances with AFRICOM and other International Forces.

Currency Auctions Food prices meet market conditions Stabilization Currency Auctions Food prices meet market conditions Trade Liberalization Currency deregulation-auction Bridging Loans

The Current State of Financial Management Activity (economy) driven by technical assistance projects - the only game in town Loans and grants- major source of international involvement Conditionality-

Structural Adjustment Loans and Grants a. Bridging Loans b. Sectoral Loans and Grants c. Project Grants d. International Requirements vs. domestic political response e. World Bank Social and Urban Funds (Guinea Conakry, Ethiopia, Eritria and Palestine - Picard)

The International Regime IMF vs. World Bank vs. Bilateral Donors vs. UNDP Terms: a. Neo-Orthodoxy b. heterodoxy c. Stabilization and the IMF d. Conditionality- World Bank e. The Use of social funds

Conditionality: The Big Three a. privatization b. Civil Service reform c. Reduction in the size of government

South African Cartoon Attacking PSRs

Privatization of the economy a. divestiture b. contracting out c. liquidation d. sell off public private partnership shares

"Privatization fights laziness, privatization fights poverty, privatization fights smuggling, and privatization fights unemployment.“ Kigali, Rwanda

Problem: Privatization of the bureaucracy a. Individuals IN GOVERNMENT work with investments and the service/commercial sector: Crony Capitalism b. Departments sell their services- eg. statistics in Zaire/DRC c. Sub-economic salaries- offices and telephones- buying soap and selling chickens and eggs

Solution: Privatization of the bureaucracy d. International conditions for "good" bureaucrats, eg. World Bank in Uganda- special salaries for those on contract with the project e. Overall Goal: Return to the recurrent budgeting process of the 1950s. End debt and deficits f. End Corruption and Crony Capitalism

IGEMBE KENYA

Privatization: The Issue of Settlers vs. Citizens Privatization: The Issue of Settlers vs. Citizens. The Debate About Pariah Groups Globalism and RACE? Is this the Crux of the Problem? Europe in Africa: nature of the relationship (Images) Is this an Emotional Issue?

The Economy and the State The Original Formula. From the Chairman of the South African Communist Party and head of Umkhonto we sizwe (Spear of the nation) Joe Slovo: MK and the SACP

Second Book of The Week Gillian Slovo, Every Secret Thing (London: Virago, 2009)

“Ag Pleez Deddy” (1961) Gillian Slovo uses this song to demonstrate the distance between her childhood and her parents’ fight against apartheid. She, along with Robyn Slovo and Shawn Slovo, would always sing the song driving with their parents Ruth First and Joe Slovo around Johannesburg. “Censored version” http://www.youtube.com/watch?v=0Hr75pqA8bo /

Ruth First Ruth First (4 May 1925 – 17 August 1982) was a South African anti-apartheid  activist and scholar born in Johannesburg South Africa. She was Director of the African Studies Program at the University of Mozambique. She was killed by a parcel bomb addressed specifically to her Maputo Mozambique where she worked in exile from South Africa.

The Challenge and The Threat 1.The impact of Settlers (Both European, Middle Eastern and Asian) on “your" part of Africa. 2.Francophone Issue: the impact of France on the region as a part of a European image and the extent to which the French in West Africa are "settlers.“ 3.The New Settlers? Foreign Aid Workers and Missionaries

Settlers as a Pariah Group: Question: Was Europe’s Relationship with Africa Different than with the Middle East, Asia and Latin America Is this the real problem with a mixed economy with a strong private sector and non-profit economy

Settlers Redux Impact on the Whole Continent Question: Was Europe’s Relationship with Africa Different than with the Middle East, Asia and Latin America The New Settlers: Foreign Aid Workers, Contractors and Missionaries

One View

vs. Indigenous People- Wa Arusha Masai

South Africa: Review Dutch- settlement and movement “So Called Coloureds” [ and Indians] 1815: End of Napoleonic War 1820s settlers: British British vs. Dutch-

South Africa Profile, 1985: Is South Africa Different? Indians 900,000 Europeans: 4,800,000 Coloured (Mixed Race): 2,900,000 Africans: 24,000,000 Indigenous: San-Khoisian: 31,000 Others: Chinese, Japanese, Arabic (30,000- less than .5%)

“S0-Called Coloured” South Africans

South Africa: Reminder Trusteeship vs. Assimilation Segregation vs. Apartheid- "Homelands" as nations Afrikaans vs. African Nationalism Majority rule vs. minorities

South Africa: The Dependency Issues Role of working class and poor whites Mining and labor reserve- "peasant based proletariat Multi-racialism, non-racialism vs. “Africanization”

Peasantariat Families and Mining- South African Mines and European Lights

Settlers: The Issue and the Problem Francophone Africa: North Africa, Algeria and permanent association The Importance of “Francophonie” on Culture and Values Italians, Belgians and Portuguese

Eritrea- 1940s

“Sarkozy admits France made mistakes over Tunisia” Nicholas Sarkozy and Zine al-Abidine Ben Ali

West Africa Role of the "Syrians" and "Lebanese“ Arabs as "settlers?“ People of mixed race?

Mixed Race Political Leaders- Jerry Rawlings, Ghana and Ellen Johnson-Sirleaf, Liberia

Seretse Khama Ian Khama- Botswana

Mixed Race Eastern and Central Africa 80,000 people Issue- Loyalty to the State and conflict with Indigenous Peoples

Zimbabwe Military demobilization and Rhodesia "Home Rule"- UDI Zimbabwe and Non-racialism Indigenous Peoples and Land

Rhodesian Army, c. 1975

Zimbabwe- “White Africans?”

Land Economics In Zimbabwe

Eastern and Southern Africa Indians in Eastern and Southern Africa Asians- The forgotten settlers Amin, Mugabe and the indigenous people argument

Missionaries, Traders and Settlers: How to Assess British Settlers and Asian Traders Missionaries and Settlers East Africa, the Federation Southern Africa The special issue of Namibia

The Uganda Asians

IMAGES: Still From The Film 'White Mischief'

Popularizers: Ernest and Mary Hemmingway and Madonna (Stereotyped Images)

Carrie Gruenloh, MPIA Univ Carrie Gruenloh, MPIA Univ. of Pittsburgh, Democracy Specialist (Southern Sudan) USAID

Discussion 1. Structural Adjustment 2. The impact of Settlers (Both European, Middle Eastern and Asian) on “your" part of Africa. 3. Francophone Issue: the impact of France on the region as a part of a European image and the extent to which the French in West Africa are "settlers.“ 4.The New Settlers? Foreign Aid Workers and Missionaries 5. What are the Major Issues Effecting African Development?