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PIA 2574

PIA 2574. African Development Seminar. The Economy: Markets and Planning. Historical African Development Issues. The Concept of "Indigenization:“ Localization process Personnel Indigenization (Africanization, Indianization,) Representative Bureaucracy.

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PIA 2574

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  1. PIA 2574 African Development Seminar

  2. The Economy: Markets and Planning

  3. Historical African Development Issues • The Concept of "Indigenization:“ • Localization process • Personnel Indigenization (Africanization, Indianization,) • Representative Bureaucracy

  4. 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

  5. The World Economic Regime • The Importance of the Market • End of the Command Economy • World Market: Only game in Town?

  6. 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?

  7. Market Issues • Complementarity problem • Origins of capital • Market failure? • The end of the Command Economy

  8. Statistics- Forty Years of Independence • Social: Illiteracy- 60-75% 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

  9. StatisticsHealth: Losing the Battle? Malaria Yellow Fever Schistosomiasis/bilharzia Sleeping Sickness Kwashiorkor HIV/AIDs

  10. 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

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

  12. Growth • 1957 100% • 1961 95% • 1981 50% • Now: 55-60% Goal: Back to the Future

  13. 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?

  14. 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

  15. Discussion The Impact of Gobalization on Africa?

  16. The Issue of Transitional States NICs Newly Industrializing Countries in Asia and Latin America:

  17. 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.

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

  19. African Successes: Oil • Nigeria • Gabon • Cameroon • Angola, Chad, Sudan?

  20. African Successes: No Oil • South Africa • Kenya • Botswana • Ivory Coast* • Zimbabwe* *Bad Politics

  21. 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?

  22. Financial and Budgetary Management Systems in Africa Six historical periods 1.Until the 1950s- recurrent budgets- law and order 2.1950s-1960s growth. Domestic development Funds with bilateral technical assistance 3.Recurrent vs. Development budgets

  23. Financial and Budgetary Management Systems in Africa 4.1960s-1970s: Distribution and basic needs. World Bank and Poorest of the poor 5.Mid-1970s-1980- Planning vs. Budgets 6.1980s- Structural Adjustment "non-budgetary" allocations vs. incremental budgeting (define)

  24. 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

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

  26. 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 your writers say important things about economic development?

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