ECOSOC - Issue 1, 40th Session

40th Session Issues

Critical Economic Situation in Africa

INTRODUCTION

The economic situation in Africa is unique and in many ways seems incomparable to the less complex economic problems faced by other nations of the world. The extent and the vast nature of the problems facing the African economy include issues such as external debt and its link to agriculture, the nature of African education, toxic waste dumping, poor use of the labor force, political instability, and ecological depletion as a result of drought, locusts, the tsetse fly, and desertification. These problems are so severe that they are now termed "critical."

EXTERNAL DEBT AND AGRICULTURE

The problems inherent in repayment of international debt by developing nations are faced by many nations. While Africa is not the only continent suffering from the debt crisis, the unique nature of the situation and its response to that situation are without clear parallel. External debt is a problem because it increasingly distorts the entire economies of poor African nations. In order to earn the foreign exchange necessary to make payments on the ever growing debt, African countries have allocated more and more of their land for export crops like cotton, rubber, coffee, and cocoa. Some African nations such as Gambia have oriented their entire agricultural sector around the production of one or two crops for export at the expense of food crops desperately needed by the population. This emphasis on export agriculture has cut into the production of food crops for domestic consumption.

Nations which compete with African grain producers, particularly western nations, have sought out new markets for their huge grain surpluses driving down world grain prices in the process. The world grain market gluts have driven thousands of small grain farmers out of business in Africa. One of the reasons for this is the fact that a small producer cannot compete with the megafarms of modern corporate agriculture. Declining prices for all agricultural commodities have put a further squeeze on many African countries. Unable to change crops or switch to industrial production, they simply increase the volume of production, often adding to the downward price spiral. In addition, Africa's agricultural output is relatively insignificant when compared to total global output, making it impossible for them to influence prices dramatically even if they were to take unified action.

The decline in world grain prices brought havoc across Africa. For example, the drop in crop prices came at a time when Zimbabwe was in the midst of a long term project to boost corn production, and in Cameroon the sudden drop in rice prices in 1981 pulled the rug out from under its ambitious program to export rice. In the later case, the United Nations Food Program was forced by its charter to purchase lower priced US rice to distribute at its feeding stations in Cameroon instead of purchasing from its local producers as it had been doing. In a sense, the rise of export crop production in Africa has been accompanied by an increasing dependency on imported food. African countries are forced to grow crops they cannot use or consume in order to pay or service their ever increasing high interest debts. In good years they can either keep their agricultural surpluses or sell them to buy staple food. In bad years, they cannot survive without help.

Furthermore, African governments are believed to have made a strategic mistake by undervaluing small scale farmers and failing to provide support services for them. The development of large scale farming or so-called "capitalist" agriculture has, over the years, resulted in a growing sense of uselessness among the rural poor who, in earlier times, had been the backbone of agriculture in Africa.

Above all, many Africans argue that most of the personnel international agencies sent to conduct agricultural research in Africa are simply development theorists who are overly concerned about defending the Eurocentric mode of production and trying to prove their case either by extrapolations or by making a historical assumptions. Since the 1960's, the continent has been inundated by hordes of foreign experts and advisers. Yet, Africa is still experiencing of development problems in agriculture. Experts have not addressed the fact that what was good for European agriculture would not necessarily be beneficial to Africa, which had different cultural and traditional modes of organization before colonization. The land tenure system of most of Africa is such that it does not permit corporate systems of agriculture which appear common in industrialized countries. Most Africans are accustomed to subsistence farming and seem reluctant to accept any rapid change.

EDUCATION AND THE ECONOMIC SITUATION

While school enrollment is increasing, the general quality of education is decreasing. Given the intrinsic links between education and development, the implication for the continent cannot be overstated. Colonial education was highly selective. There were huge discrepancies in access for urban and rural populations, between genders, and for ethnic and religious groups. The legacy was that a new elite has been fashioned in the image of colonial administrators while the bulk of the population has remained untouched. The colonialists fashioned education in a way quite distant from the African economy, a legacy that has been perpetuated. For instance, the colonialists made white collar jobs superior and failed to introduce any technical education. African nations have not introduced technical education since independence was achieved. As a result, the colonial system appears to have been institutionalized.

Likewise, the notion of "African Studies" is something which applies more outside Africa than within. Education is not given in African proper, and African orientated priorities, such as those related to the African economy, remain un-addressed. As it is taught, the study of Africa is generated from outside Africa and whatever is happening within Africa is supportive rather than the other way around. For instance, an average African student studies the European economy, agricultural problems, geography and history. Yet the same student is taught nothing about Africa's own history, economy, geography and so on.

ARMS VERSUS ECONOMIC DEVELOPMENT

In most African states defense still consumes a large share of the national budget, easily outstripping social spending. In Africa, one million dollars could provide about one thousand classrooms for about thirty thousand children, yet that amount is more often spent on a modern tank. The price of a single military helicopter is equivalent to the salary of 12,000 school teachers, yet the helicopter is seen as a necessity. The policy and choice of more tanks means less classrooms, with inevitable consequences for economic growth and social development. High defense spending, because of perceived internal or external threats, diverts finances from productive sectors such as agriculture and industry, thereby increasing the rate of food and manufactured goods imported, and using scarce foreign exchange to purchase expensive weapons from abroad. Regime survival rather than state enhancement is the primary objective.

Arms transfer is a major element in foreign policy between Africa and the so-called developed countries. Most of time, Africa purchases military equipment on concessionary credit terms which increases the leverage of supplier nations, as well as aggravating the balance of payments and foreign exchange problems of the recipient. As much as there is a push from the developed world to sell arms, there is a demand from Africa for more and better weaponry.

In addition, the arms deal is also motivated by fear of threat from some of the developed countries who decide to use "guns" rather than negotiation to settle international disputes. Many in Africa point to the U.S. raid on Libya as an example of that threat. Other countries, also fearful of such a perceived threat, see the purchase of arms as their only way out. Moreover, a mutual dependency is established between the industrialized nation's need for primary commodities and influence, and the willing market for military equipment in Africa. The African nations fail to understand that security is found in development, and that without development there can be no security.

INVESTMENT DETERRENCE: LEGAL AND POLITICAL CAUSES

Legal frameworks in most African countries were inherited from their former colonial powers. In some ways those laws were designed to discourage contact between the colonies and countries other than those associated with the colonial power. In many African countries the colonial legacy still exists in their laws. This legacy, which includes extensive bureaucracy, has always discouraged foreign investment by nations other than the colonial power.

Since 1945 the world has endured some 155 wars practically all of which have occurred in the developing nations. During this period, Africa experienced seventy coups and the assassination of 13 heads of state. Only one head of government has been deposed by the ballot box in that time frame. When armed conflict erupts, there follows the making of a nightmare scenario for millions of people. The pivot of that scenario is endemic hunger, in a continent which was largely food sufficient until the late 1950's and still has the potential to feed the world.

ECONOMIC DESTABLIZATION IN SOUTHERN AFRICA

A primary source of economic problems in Southern Africa is the South African policy of apartheid. The Front Line states, who like the rest of Africa are crumbling economically, are preoccupied with the defense of their southern borders. It is impossible for Namibia to move forward successfully with wide scale economic reform at a time when its independence is constantly being postponed by South Africa. Nearly all the foreign currency earned from export agriculture is used to buy expensive weapons for defense against the "Devil of South Africa." Furthermore, the greatest portion of the foreign aid sent to the Front Line states comes in the form of weapons. The foreign debt created by the purchase of expensive weapons to counter the sophisticated weapons of the Pretoria government has resulted in mounting international debt, not to mention the cost of servicing the interest on those debts. The Front-Line states generally contend that failure to adopt comprehensive sanctions against South Africa has perpetuated the regime and its associated problems.

The effects on the economy of Africa as a whole can not be over emphasized. The Front Line states and the rest of Africa are faced with a refugee situation which threatens to become more severe. Many observers agree that the worst effect of this problem is that many black South Africans are unable to make their fullest contribution to the economic and social betterment of their continent.

HUMAN RESOURCES AND ECONOMIC DEVELOPMENT

The effective development and use of human resources is central to reactivating the development process in most sub-Saharan African countries. Qualified Africans working abroad are not attracted to return and work in Africa. Most African students remain abroad after the completion of their education. This is partly contributed to by the immigration laws in some countries which were created with the intent of attracting cheap African labor.

The economy in African countries has failed to include women. Laws in some countries prohibit women from taking most employment. Where women are allowed to work by law they continue to meet with discrimination and are often refused employment. Many analysts suggest that women may in fact assist in the production of up to 75% of Africa's food, but their contributions are not credited in government statistics or by legal systems which generally grant few property rights to women.

Furthermore, there is a lack of labor mobility in Africa. Prior to the colonization of Africa there was very high mobility of labor in Africa, which may be part of an explanation for its booming economy before colonization, and for the attractiveness of many African colonies. After European partition of Africa, labor mobility appears to have been retarded because new nation-state boundaries made it difficult for human resources to be geographically mobile. The required "pass books" in South Africa and the international passport required for transit between nation states are a European legacy.

INTERNAL TRADE AND ECONOMY

Internal trade within Africa is almost nonexistent at the present. Prior to colonization trade within Africa was a very important portion of its economy. By colonizing Africa and drawing nation-state boundaries, the colonial powers made the legal system aim at discouraging trade with countries other than those associated with it. That explains why today there is a lot of trade between the "Francophone" countries in Africa and yet those same nations trade only infrequently with the "Anglophone" countries who were subjects of a different colonial master.

Even today, the legal system supports the payment of custom duties and high tariffs. In addition the granting of import and export licenses is such that trade between African countries and overseas countries is encouraged, while trade within Africa is discouraged. The legal system, which could be traced to colonial era, made trading with overseas nations easier than with African countries.

The currencies used in Africa create their own hindrances to trade. For example, it is still common among the "Francophone" nations to link their currencies to the French franc. Often it is easier to trade with nations accepting the franc than with a neighboring nation whose currency is not similarly linked. African countries continue to trade with certain countries despite the unfavorable terms of trade due mainly to the fact that their currency is closely tied together.

NATURAL DISASTERS AND ECONOMY

Drought, tsetse fly infection, locust invasion and desertification are all natural disasters. All these naturally occurring phenomena affect mainly sub-Saharan Africa.

At the present time locust invasions remain so unpredictable that most farmers prefer not to plant crops at all when there is speculation that locusts will attack. Locusts can cause severe, if not total, damage to all food crops. Despite technological advances using satellite monitoring there remains no device to clearly predict the path and the time of the invasion. To make matters worse there are also no relevant preventive or protective measures.

While locusts harm the farmer, the tsetse fly affects the cattlemen. The tsetse fly can cause a disease that induces anemia (bringing on a state referred to as sleeping sickness) and often leads to death in humans as well as in livestock. Even though the tsetse fly has been around for a long time, many Africans remain poorly informed about the effects of the tsetse fly or adequate preventive measures. Furthermore, the reduction in human resources in areas affected by the tsetse fly can be partly explained by the severe effects of its infection.

Desertification is one of the most important problems in sub-Saharan Africa. The southward movement of the desert is rendering most of the former productive land barren. The Cameroon sponsored Operation Green Sahel, which includes but is not limited to the planting of trees (reforestation) is proving very effective but the population remains in need of more education as to how to accomplish the goals of the projects.

Drought is one of the most important problems affecting the sub-Saharan region of Africa. Even though there are some means of predicting drought, the inhabitants of the affected areas appear to be ignorant about the importance of irrigation, soil preservation and food preservation.

INTERNATIONAL AID AND ECONOMIC DEVELOPMENT

The nature of most of the foreign aid sent to the continent creates more problems than solutions for Africa. First, there are few comprehensive studies of the problems for which aid is intended. In some cases the donor country knows little or nothing of the recipient country's geography, history or current agenda for problem solving. In some instances, sub-Saharan African countries receive aid in the form of evaporated milk, which can create digestive problems when consumed. This may be due to the fact that most Africans lack the digestive enzymes (maltose) to properly digest milk. Furthermore, what the sub-Saharan Africans actually need is not food but an irrigation scheme to perpetuate food production. Aid in the form of food only helps to encourage dependency and discourages self-reliant development.

UNITED NATIONS INVOLVEMENT

The crisis in Africa in all its aspects was of major concern to the United Nations as the 1985 General Assembly concluded. The world body adopted a wide range of resolutions and decisions involving African matters, from its call for a special Assembly session in 1986 to consider Africa's critical economic situation, to its adoption of a 22 article convention against Apartheid in Sports, to its continuing demand for sanctions against South Africa to bring about an end to its racial policies. In addition, it has addressed matters related to Namibia (40/97F), including a call for a special U.N. session on the topic, and put forth a call for many U.N. bodies to pay special attention to African social and economic needs.

The Sport Convention annexed to resolution 40/64G, was adopted by a vote of 125 in favor, to none against, with 24 abstentions. Under the text, the Assembly appealed to all states to sign and ratify the convention as soon as possible, requested that all governments and non-governmental organizations acquaint the public as widely as possible with the convention's text, and asked the Secretary General to ensure the Convention's urgent and wide dissemination.

With resolution 40/64 A, adopted by 122 votes to 18, with 14 abstentions, the Assembly called on the Security Council to act urgently under Chapter VII of the Charter with a view to applying comprehensive and mandatory sanctions against South Africa and to condemn the policy of "constructive engagement" and active collaboration with the apartheid regime of South Africa. It condemned the activities of those transnational corporations and financial institutions that had continued political, economic, military and nuclear collaboration with Pretoria, as well as states similarly linked to tacit or direct support for South Africa.

The Secretary General's report (A/40/372-E/1985/104) provides background data on the situation in Sub-Saharan Africa and reviews emergency action taken by African countries and the international community. The "Dublin Plan," adopted by the EEC in 1984 to assist the eight African countries most affected by the famine and the implementation of the third Lome Convention, also addressed the issue. The EEC has called for a special session of the Assembly on the critical situation in Africa.

In a wide ranging text approved unanimously (resolution 1985/80), the Security Council strongly urged the international community to "intensify its efforts to increase substantially the flow of resources - particularly of a concessional character to Africa," and to address in a comprehensive manner the critical problems arising from a "negative or insufficient flow of resources" due to the heavy debt burden and depressed commodities export earnings of African countries. Donor countries in particular were asked to support African regional and subregional institutions engaged in implementing economic recovery programs and economic self-reliance for their member countries.

Stressing the need to keep food and agricultural issues at the center of global attention, the Council decided (1985/196) to transmit to the Assembly in 1985 a draft resolution by which the Assembly would reaffirm that urgent action be taken to increase food production. Priority attention was needed at international, national and subregional events for the timely delivery of food to those requiring assistance in African countries.

SUGGESTIONS FOR RESEARCH

In addition to those discussed in this essay, it may prove helpful to familiarize yourself with the following terms and organizations: Lagos Plan of Action and Agenda for Action, EuroAfrican group, Brandt Commission, Club of Rome, OAU, Paris Club.

The following publications and journals may be of assistance with general research: OAU Lagos Plan of Action for the Economic Development of Africa 1980-2000, Geneva; International Institute for Labour Studies, 1981; Africa Now; Africa News; West Africa; African Affairs

The most recent United Nations resolutions on this topic include:

43/8 Emergency Assistance to Sudan

43/12 Co-operation between the United Nations and the OAU

43/26 Question of Namibia

43/27 Midterm review and appraisal of the implementation

of the UN Programme of Action for African Economic Recovery and Development 1986-1990

43/179 Transport and Communication Decade in Africa

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