Africa: false start, the new dawn the challenge of the 21st Century – July 2001

Comments to: boima@logafrica.com



Introduction

Africa the origin of the human race as far as current science knows is in turmoil while at the same time has huge potential. What went wrong and what needs to be done to put things straight. This paper looks at the pre-colonial period, which put together people of disparate origin, the false start, after independence, the pay back period, when African countries were forced to take drastic actions to remedy two decades of mismanagement, the new dawn as African governments implemented major economic and political changes and the ten key issues of the new millennium.

The Pre-colonial unknown

The period before the Berlin conference in 1884 when the continent was carved up by European powers seems a long way ago but many of the problems can be traced to that momentous day. Many of the continents indigenous chiefdoms, kingdoms and empires had been defeated, bought off or otherwise neutralised.

The Berlin conference was merely confirming title deeds for real estates which the colonial powers had already laid stake to. In West Africa the mighty Ashanti Empire had finally succumbed to the British in 1874, Samora had also buckled under the French; The Kingdoms in Congo, Angola, and the mighty empire built by Shaka had all succumbed to the superior firepower and financial muscle of the European Invaders.

The notion of the African “nation state” or empire, where an African authority often through a superior war machine and administration had extended its rules, taxes and political control over a significant geographical area had been obliterated. In its place came “states” which were formed using an atlas, with demarcation along longitudes and latitudes. The Ashanti Empire for example was shod off some of its holdings in Cote d’Ivoire and Togo and some northern regions that that empire had not subjugated or would have wanted to be involved in because of their Islamic faith were added together to form Ghana.

This meant that African states were denied the evolutionary process that saw countries develop in Europe and other parts of the world. The development of such kingdoms would have ensured that an Ashanti or Madinke culture, political entity and administration would have been extended to other different but related ethnic groups. Rather artificial states with little or no cohesion were created. Without colonialism the Fulani/Hausa states may have resulted in a northern Nigerian entity with common language, religion and history. The Yoruba Kingdom could have coalesced into Yorubaland. True the European colonialists saved weak ethnic groups but this very “success” caused future problems for African states. Furthermore during this period and earlier, consolidation of the nation state in Europe and elsewhere saw minorities being absorbed forcibly or otherwise. Colonial authorities also deliberately promoted minority ethnic groups at the expense of the dominant ethnic group, fuelling future conflicts.

The false start

The Euphoria of Independence for most African countries lasted up to the early 1980s. This was a period when freedom, experimentation and mismanagement all occurred. The big day came, grand speeches were made and all the trapping of a “modern” state were acquired, armies were built, shipping and airlines created, roads built, conferences organised and attended to discuss colonialism, neo-colonialism, socialism, nonalignment and the “third world” view on every single issue irrespective of whether they had any bearing on the vast majority of peasants. It was a period of enlightened progress, schools and universities were built and the masses were exhorted to get educated, for what nobody could say or plan, well there was always the Government, seen not so much as a provider of services but as a golden cow to be milked dry. One got a job for the salary and did not have to turn up or bother with the nuisance public.

Socialism, nationalism and the East/West jostling for the soul of the oppressed shaped the period. The Soviet Union and to a lesser extent, China and Cuba were role models as well as being major supporters of freedom struggles and in the immediate post independence period provided much aid and expertise. The sixties and seventies saw the emergence of socialists and social democrats in the West with their agenda of aid, proposing that 0.7% of their GDP would be devoted to help the impoverished third world. In America President Kennedy and his Peace Corps were fanning out to help the emerging countries. African Governments were supported and encouraged to acquire and operate the levers of economic control. Aid was provided for numerous capital projects, dams, roads, agricultural projects, the guilt complex was having a very positive effect for Africa. Or was it?

In retrospect the East/West conflict was a disaster for Africa. The competition for influence meant that countries took on all forms of assistance, many of which were of little relevance or any hope of being sustainable. Debts piled up, often without governments being aware of the magnitude of the problem for the next generation. The Eastern bloc and Scandinavian countries helped support a host of state enterprises with little attention to operations after handing over. Hastily trained operators with little experience, political interference and endemic corruption meant that many of these enterprises were white elephants, bleeding the countries. The West encouraged or acquiesced to crony capitalism and the looting by the likes of Mobuto. Debts with the west piled up for all kind of projects with Western governments fully aware that much of these loans and aid was being siphoned back to Western banks. There was little criticism for crony capitalism, which in the guise of industrialisation and nationalism allowed monopolies to be built, shielded by high import tariffs. Marketing boards were set up mainly for the benefit of bureaucrats who through corruption and mismanagement ensured that farmers received only a fraction of the world price of commodities. Coups and wars added more complexities often aided and abetted by major western and eastern powers.

To a certain extent the African experience of this period could not have taken any other direction. In pre-independence days the colonial masters were keen to keep the cost of ruling the natives down, these countries were to be net beneficiaries to the colonial power, not a burden. Little money was spent on education and other social extravagance. To the credit of the colonial masters there was little corruption and if there was it did not reach the lowly African clerk. In addition the colonial administration had centuries of a structured civil service and the tradition of working for England, France, the Empire was entrenched. The new team did not have this advantage and in particular the concept of a nation state would take time to build. So in the beginning, the primary reference for the new decision makers was the ethnic group. Success was often based on what the official could do for his family, clan and ethnic group, hence payrolls were packed accordingly. The idea of providing a service for the state was secondary; promotion came because of your ethnic or political connection. This philosophy would have devastating effect on the work ethic and encouraged corruption. It is within the context that new leaders were suddenly thrust into power with control over significant budgets and for much of the 60’s and 70’s generous aid from the West and East.

Pay back day

By the beginning of the 1980’s after 20 years of a false start for many countries the cracks had resulted in breakdown in the social and economic fabric. Tony Addison of the World Institute of for Development Economics Research succinctly summed up the scenario in his paper on Reconstruction from War in Africa when he wrote that “many of Africa’s ruling elite possessed neither the mandate provided by competitive elections nor the popular mandate accompanying economic success which provided a large measure of support for East Asia’s miracle states despite their authoritarianism”. It was pay day back time as countries burdened with debt and overvalued currencies suddenly seeing the real value of those currencies collapsing or as in the case of the Francophone countries forced by France to devalue the CFA. Creditors were tightening credit, donor fatigue was taking hold and the decline of the Soviet Bloc meant reduced aid from this source. Despite the significant investment in the post independence euphoria the infrastructure was poor, the state was often unable to deliver the most basic services such as health, education and even salaries. This breakdown could not have come at a worse time; the decade saw the beginning of the aids epidemic, the re-emergence of virulent malaria and tuberculosis. During this period the IMF and World Bank came knocking on the door. Something had to give and these institutions put pressure on Governments to implement drastic and wide ranging reforms. The central theme was that markets create wealth and the state must give up control of the means of production and commerce. Subsidies, which were largely for the benefit of urban dwellers, were slashed.

The new dawn

By the 90’s virtually all African countries had embarked on the IMF/World Bank instigated reforms. Countries started recording positive economic growth although for many it was just the pain of the cure; somehow Jo Public was not getting the crumbs. Mass layoffs in Government industries and Ministries were accompanied by rising prices of basic items as Government subsidies were removed. In this scenario came two new developments. Firstly the IMF/World Bank grudgingly accepted a humane approach was needed, hence the new focus on poverty reduction. Another feature was the emasculation of the state machinery, with many of their functions usurped by NGO’s. For many African activist this is the new form of colonisation, with Government policy dictated by the IMF/World Bank, control of production and commerce transferred to foreign owners and implementation of social programmes controlled by NGOs, most of whom are controlled by people from rich countries.

On the other hand supporters of these changes would say you had you chance and blew it. There may be huge income disparities but in many ways income has been transferred from urban areas to the rural areas and wealthy beneficiaries will say in the new market environment they have to provide a service to a discerning consumer. NGOs have played a crucial role in areas like aids and other debilitating problems. Anyway as far as Joe Public is concerned it does not matter who provides help, having been neglected by the elite for so long NGOs are a providing much needed help, this is globalisation in a different way. Another element increasingly stressed is that of good governance. By the late 1990s most African countries had held democratic elections and were effectively or nominally committed to good governance. All major aid donors now insist on good governance. Another positive feature of this period is the move by OECD countries to minimise corruption by making it illegal for their companies to bribe officials. This concerted effort is a marked improvement on the cold war era when western governments paid little attention to or in some cases, notably France, it has emerged that state companies routinely bribed African officials. Finally there is pressure from the west to cancel the debts of African countries. NGOs are playing a major role in this issue.
 

The 10 Big Issues in the new millennium

Conflict Resolution This is probably the biggest problem for the continent. Unless all parts of the continent resolve the conflicts still raging on, the whole region will suffer and fail to attract significant medium to long-term investment that is desperately needed.

Good governance Democratic reforms, which have swept the continent, must continue and in tandem must be effective and fair due process and an independent press. The world will be watching whether countries pass the Huntingdon test, which states that democracy only becomes institutionalised after two turnovers of government, which indicates that political contenders are willing to yield ground through the political process.

Corruption Efforts by the OECD to outlaw corruption must be pursued with vigour, particularly in countries such as Britain where this practice is still not a criminal offence. Efforts by OECD countries to have a more transparent banking system and limit money laundering will also deter African officials from salting away ill gotten gains in western countries. Privatisation of state enterprises is another weapon as is good governance.

Aids All governments must take immediate and comprehensive action against this scourge. Uganda has implemented a very successful campaign and all African countries should learn from them how they do it – an Africa solution.

Market Liberalisation Markets create wealth and the reforms must continue. Sales of state assets must be transparent to ensure that the best bids are successful. In the post privatisation scenario all efforts should be made to ensure effective competition. Where natural monopolies occur, the regulatory system for a lease must be rigorous and benchmarks and other efficiency indicators must be set to ensure real improvements for consumers and the continent.

International trade The major focus should relate to market access for African products in rich countries, encouraging regional trade and building and maintaining the infrastructure to improve the competitive position of the continent. African governments need to diversify their exports. Peace, good governance and good infrastructure will attract medium to long-term investment.

Capacity Building The challenge is for Africans to acquire skills and build a positive work ethic in the public, private and NGO sectors. The emphasis should be functional education, which provides skills necessary for the productive sectors. In the public sector there is need for civil servants be held accountable and they must be imbued with a service culture. They should be seen as providing a service not merely hassling locals and foreign businesses. In the private sector generous tax exemptions for training combined with punitive measure phased over time should encourage companies to train and use locals. A similar policy should apply to the NGO sector. Progressive NGOs are already taking measures to localise their operations and Governments should support such moves by giving preferential treatment to them.

Debt Reduction This is a very trendy issue among Western Activist. Western policy makers should, in return for cancelling debts insist on political reforms and that savings should be directed at poverty reduction programmes and other social programmes badly in need of support.

The Nation State The challenge facing African countries is how to instil the concept of the nation state transcending ethnic divisions. While the citizen’s ethnic identity will and should continue to play a major part in his/her life people this must not be the only significant reference. Only when the concept of nationhood is firmly entrenched will we get the best man/woman for the job, work assiduously for the state and not want to break away. This concept must be instilled from a very early stage in a child’s development. People must come to accept that they have responsibilities and rights and that the state is not there merely to be milked for the benefit of the individual, clan or ethnic group. Meritocracy, where the best man/woman gets the job not because of their ethnic background must be the order of the day. The state in turn will be taken seriously when it can deliver services.

However nationalism must not be viewed in a very narrow sense, the impressive developments in countries like Cote d’Ivoire were largely the work of immigrants from neighbouring countries. Immigrants throughout the world have added considerable value to the countries they settle in and this process must not be unduly impeded. Preference must be given to African experts, companies and labour if they can deliver. In the absence of social welfare and minimal basic services, immigrants from other African countries tend to bring mainly benefits bar the criminal types. The concept of the “Africa nation state” must develop just as the European Union and other regional bodies are being set up.

Capital Markets In an optimistic scenario as countries moves to a situation where they are regarded as “an emerging markets”; capital markets will increasingly become a source of funds from local and foreign sources. Many stock exchanges are however too small, lack liquidity and are simply not viable. Countries should explore the possibility of consolidating these markets into regional centres.