PIA 2574 African Development Seminar: Conflict, Governance and Development

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Colonialism in Africa  Accuracy, Orthodoxy or Propaganda  Short Discussion

The Economy: Markets and Planning

Historical African Development Issues  The Concept of "Indigenization:“  Localization process  Personnel Indigenization (Africanization, Indianization,)  Representative Bureaucracy  “Ethnic Arithmetic”

South Africa’s Homelands

Zenophobia? (Nativism in Pennsylvania 1853)

mzungu/faranji/lekoa/zongo

African Historical Development Issues  Equity- Fixed percentage of ownership  49% local content requirements  Nationalization with or without Compensation (State Socialism)  Joint Venture Programs- management contracts

The World Economic Regime  The Importance of the Market  End of the Command Economy  World Market: “Only game in Town?”

Market Debates  Impact of world economy on Domestic Economies: Development of underdevelopment  Questions of conflict: pluralist vs. hegemonic models in the post-war world  Economic change vs. political development- Is governance (democracy) a pre-requisite?  Is Participation Essential?

Renowned international social activist Graça Machel Mandela, with Kuseni Dlamini, CEO of Old Mutual South Africa and Emerging Markets, attended the Old Mutual Staff volunteerism awards dinner. Accompanying them is Anthony Petersen (left), Amos Hadebe (back left) and Dr Pandelani Mathoma, Managing Director Old Mutual. (GSPIA PhD 2001).

Market Issues  Complementarity problem  Origins of capital  Market failure?  The end of the Command Economy

And Size

Statistics- Forty Years of Independence  Social: Illiteracy % illiterate  Population: Growth vs. HIV/AIDs 3-4 percent per year 50% less than 15 years of age 20-25% HIV positive in Southern Africa  Loss of Primacy of Nation State

Statistics Health: Losing the Battle? Malaria Yellow Fever Schistosomiasis/ bilharzia Sleeping Sickness Kwashiorkor HIV/AIDs

Forty Years of Independence  Agriculture: Subsistence: soils/rain/desertification  Decline in food production (cash crops and urbanization)  Terms of Trade and Debt  Price decline for Primary products  Economic collapse- one third of Africa

Economic Growth  Economic: Fourth World- less than 1% growth  Fourth World  $100-$365 per year

Inflation

Growth in Africa  %  %  %  2004: 55-60%  Now: 78% Goal: Back to the Future

Economic Collapse

Economic and Social Development: Liberalism and Markets  Social Norms and Production  Economic predictability  Alternatives to private investment  Globalization and international capital  Africa and the World Economic System: Odd Continent Out?

Discussion The Impact of Globalization on Africa?

Primacy of Nation State: How Sovereign?  Impact of transnational actors  Issue of micro-states  Rational Actor model- public or social choice theory- collective choice is non-rational?  The role of international regimes- UN, World Bank, IMF, etc. Globalization and International Order

The Issue of Transitional States NICs-Newly Industrializing Countries in Asia, Africa and Latin America

Countries considered as in the process of industrialization

The Issue of Transitional States  Tigers: Korea, Singapore, Hong Kong, Taiwan  Kittens: Thailand, Malaysia, Indonesia- Want to be Tigers  "Tails": India, China, Brazil, Argentina, Mexico. Tigers with long poverty tails.

The Issue of Transitional States  Why no NICs in Africa?  What about Nigeria?  What about South Africa?  Autonomous vs. Dependent Development?

African Successes: Oil?  Nigeria  Gabon  Cameroon  Angola, Ghana, Chad, South Sudan?

African Successes: No Oil  South Africa  Kenya  Botswana  Ivory Coast*  Zimbabwe* *Bad Politics  Blue= Freedom House Democracies (2006)

Issues of markets and productivity  International systemic hegemony and international competition within markets  Technical Assistance- bias to international trade  Back to the future- get the LDC economy back to the 1950s: what then?  Dependent development- is it dependent and is it development?

Foreign Aid and Development

Financial and Budgetary Management Systems in Africa Six historical periods 1.Until the 1950s- recurrent budgets- law and order s-1960s growth. Domestic development Funds with bilateral technical assistance 3.Recurrent vs. Development budgets

Financial and Budgetary Management Systems in Africa s-1970s: Distribution and basic needs. World Bank and Poorest of the poor 5.Mid-1970s Planning vs. Budgets s- Structural Adjustment "non- budgetary" allocations vs. incremental budgeting (define)

Planning vs. Budgets  donor monies drive the system in the degenerated state  planning demanded by technical assistance  Technical assistance- both grants and loans (no private loans to Africa)  project planning "wins" over national planning and budgeting systems

Case Studies Norman and Elsa Rush

A Long Time Ago!!!

Book Authors  V.S. Naipaul  Philip Gourevitch

Deborah Scroggins and Emma McCune

African Economies: Discussion What kind of an economy works for Africa? Capitalism Socialism Economy of Affection Dependent Development?

African Economies: Discussion  Why should the Northern Tier states care about Africa?  What are the regional economies in Francophone Africa, in Eastern and Southern Africa? Is there a common West African Economy?  Which of our writers say important things about economic development?