Madam Chairman, Ladies and Gentlemen,
please permit me to take this opportunity to express my gratitude to the organizers of the meeting especially Jennifer and Jonathan. South Africa Institute of International Affairs and the International Institute of Strategic Studies for asking me to address this distinguished assembly.
The Tswalu Dialogue is a brilliant initiative and has the potential of achieving great things for Africa if it continues to be will organized and prevented from becoming yet another talking shop. My theme this morning is “Meeting The Challenges of Democracy And Economic Development In Africa”. Democratic governance in Africa has had many setbacks and on this continent economic success stories have been very few indeed.
Many of the topics that I planned to discuss in this presentation have already been brilliantly handled by previous speakers but when I pondered on the theme some questions sprang up in my mind which I feel I must share with you. Such an exercise is necessary for two (2):
(i) To be able to help solve Africa’s numerous problems we must think new thoughts; and to be able to think new thoughts we must ask questions.
(ii) We have in our mist many experts on Africa whose presentations have been very impressive. I hope to find answers to some of these questions while they are still around.
Besides Madam Chairman,
(i) Have African states been really free to chart their own course of economic and political development since independence?
(ii) The numerous conflicts and upheavals on the continent, especially since independence particularly Democratic Republic of Congo (DRC) and Angola – potentially rich countries – what have been their real causes? Were all these conflicts home grown?
(iii) The African dictators who oppressed and looted their countries’ resources, where did they keep the money? Why have the monies not been returned in most cases? Would the return of the monies not help relieve some of the poverty? Why was Mobutu able to stay in power for so long without any serous sanctions from the established democracies and important development partners?
(iv) The perceived unattractiveness of Africa as an investment destination because of great risks and conflicts – how many established industries or commercial concerns were destroyed, incapacitated or confiscated in Africa over the last ten (10) years? If I were an investor I would consult an insurance broker about this.
(v) Investors naturally want good return on their investment. The large corporations in Africa like coca cola, Barclays, Unilever, etc. – How do their profits compare to the return on investments elsewhere outside Africa? If the situation is so risky why don’t they relocate?
(vi) The Structural Adjustment Programme proposed by the Bretton Woods institutions as solutions to Africa’s economic problems were they modified to suit specific conditions in those countries? How can democratically elected governments dependent on goodwill of the electorate accept harsh directives from foreign bureaucrats which adversely affect education, health, agriculture etc without losing favour and credibility? If such policies do not undermine the basis of democratic governance, what else will?
(vii) Africa has many problems and suffers from every conceivable kind of deprivation, yet there is not gainsaying that the image of Africa projected on the international stage is much worse than the reality. This negative image has driven away potential investors and kept FDI from the continent, thereby perpetuating the continent’s dependence of aid and her increasing poverty. Does anybody benefit from this unfortunate situation?
Madam Chairman, The Tswalu initiative is excellent and I hope it will produce practical positive results in the near future. I suggest that at the end of every meeting the participants will resolve to help find ways of tackling problems which will help in Africa’s development. For this meeting I suggest we resolve to do something about the negative image of Africa. Perhaps we can consider some advertisements on CNN – “Africa.
The Other Side Of The Story” – beautiful traditional festivals, etc. could be regularly shown to let the world know that it is not all AIDS, poverty and gloom.
Our hosts, The Oppenheimer family and others could contact other successful companies on the continent to fund this programme.
Democratic governance in Africa – most African countries have been independent for a little over forty (40) years. In most of the western world Democratic governance has been practiced for centuries. In the colonial era, there was no democratic governance in the colonies. Are we then surprised. this type of government has some difficulties in Africa? I plead with honourable participants –there is need for patience.
Another fact that we must consider is that educational attainment, level of economic development and historical background of a given country will all have some influence on the nature of governance.
Some African countries have been successful in practicing democracy and Ghana is a good example-such states should be given adequate support to make them role-models for the others. When Berlin was a divided city, West Berlin was so massively resourced during the Cold War that East Berliners were prepared to risk their lives to flee to the West because life looked better.
Madam Chairman, there is no doubt that most Africans accept that dictatorship and bad governance are responsible, to a large extent for the backwardness, conflicts and great suffering in Africa. Of the fifty-three (53) states in Africa, only five (5) have not had military intervention.
Of the forty two(42) countries designated as Highly Indebted and Poor, thirty-two (32) are in sub Sahara Africa. Africa’s share of world trade is only 1%.
Africa comes to the top where diseases – HIV AIDS, TB, Malaria, hunger, squalor and deprivation are concerned. The time to act is now, hope deliberations at Tswalu will be followed by action. Nor should we forget the debt burden estimated over $300 billion serviced at 12.5% and growing in stock at 5% per annum.
While Africa struggles to embrace democracy and put in place right economic policies, I feel I should take advantage of the presence of the Assistant Secretary of State for Africa to appeal that the United States of America a country noted for generosity in its dealing with many states and regions around the world, should help tackle, with some enthusiasm or sense of urgency, and with adequate resources, the numerous problems that confront the African continent.
The question that is often asked is how did Africa find itself in such a terrible situation? Many explanations are available. Most African countries emerged from colonial rule to independence at the height of the cold war and the nationalist leaders were divided between the East and the West in their choice of developmental path. Most chose the socialist path for the following reasons:
(i) Socialist societies were one party states and their leaders could keep power with little challenge from political opponents. This system found favour with the leaders at that time.
(ii) The former Soviet Union appeared to be making giant strides with reported GDP growth of between (9% and 12% per annum.
(iii) Soviet Union was the first to put Sputnik in space and this immensely boosted her image in the eyes of Africans.
(iv) Some nationalist leaders felt that African societies were Communalistic i.e. similar to socialist pattern.
(v) Again the cold war also divided the leadership of Africa-just before the inception of OAU into Casablanca (Right wing) and Monrovia (left wing) groups. These groups undermined each other and prevented African leaders from acting in concert to provide sound economic policy and good governance for the continent. Nkrumah sensing the danger that could result form the division spoke and wrote about the need for Africa to unite, but he himself was firmly in the socialist group and had already taken a divisive stand.
Madam Chairman, Ladies and Gentlemen,
please permit me to take this opportunity to express my gratitude to the organizers of the meeting especially Jennifer and Jonathan. South Africa Institute of International Affairs and the International Institute of Strategic Studies for asking me to address this distinguished assembly.
The Tswalu Dialogue is a brilliant initiative and has the potential of achieving great things for Africa if it continues to be will organized and prevented from becoming yet another talking shop. My theme this morning is “Meeting The Challenges of Democracy And Economic Development In Africa”. Democratic governance in Africa has had many setbacks and on this continent economic success stories have been very few indeed.
Many of the topics that I planned to discuss in this presentation have already been brilliantly handled by previous speakers but when I pondered on the theme some questions sprang up in my mind which I feel I must share with you. Such an exercise is necessary for two (2):
(i) To be able to help solve Africa’s numerous problems we must think new thoughts; and to be able to think new thoughts we must ask questions.
(ii) We have in our mist many experts on Africa whose presentations have been very impressive. I hope to find answers to some of these questions while they are still around.
Besides Madam Chairman,
(i) Have African states been really free to chart their own course of economic and political development since independence?
(ii) The numerous conflicts and upheavals on the continent, especially since independence particularly Democratic Republic of Congo (DRC) and Angola – potentially rich countries – what have been their real causes? Were all these conflicts home grown?
(iii) The African dictators who oppressed and looted their countries’ resources, where did they keep the money? Why have the monies not been returned in most cases? Would the return of the monies not help relieve some of the poverty? Why was Mobutu able to stay in power for so long without any serous sanctions from the established democracies and important development partners?
(iv) The perceived unattractiveness of Africa as an investment destination because of great risks and conflicts – how many established industries or commercial concerns were destroyed, incapacitated or confiscated in Africa over the last ten (10) years? If I were an investor I would consult an insurance broker about this.
(v) Investors naturally want good return on their investment. The large corporations in Africa like coca cola, Barclays, Unilever, etc. – How do their profits compare to the return on investments elsewhere outside Africa? If the situation is so risky why don’t they relocate?
(vi) The Structural Adjustment Programme proposed by the Bretton Woods institutions as solutions to Africa’s economic problems were they modified to suit specific conditions in those countries? How can democratically elected governments dependent on goodwill of the electorate accept harsh directives from foreign bureaucrats which adversely affect education, health, agriculture etc without losing favour and credibility? If such policies do not undermine the basis of democratic governance, what else will?
(vii) Africa has many problems and suffers from every conceivable kind of deprivation, yet there is not gainsaying that the image of Africa projected on the international stage is much worse than the reality. This negative image has driven away potential investors and kept FDI from the continent, thereby perpetuating the continent’s dependence of aid and her increasing poverty. Does anybody benefit from this unfortunate situation?
Madam Chairman, The Tswalu initiative is excellent and I hope it will produce practical positive results in the near future. I suggest that at the end of every meeting the participants will resolve to help find ways of tackling problems which will help in Africa’s development. For this meeting I suggest we resolve to do something about the negative image of Africa. Perhaps we can consider some advertisements on CNN – “Africa.
The Other Side Of The Story” – beautiful traditional festivals, etc. could be regularly shown to let the world know that it is not all AIDS, poverty and gloom.
Our hosts, The Oppenheimer family and others could contact other successful companies on the continent to fund this programme.
Democratic governance in Africa – most African countries have been independent for a little over forty (40) years. In most of the western world Democratic governance has been practiced for centuries. In the colonial era, there was no democratic governance in the colonies. Are we then surprised. this type of government has some difficulties in Africa? I plead with honourable participants –there is need for patience.
Another fact that we must consider is that educational attainment, level of economic development and historical background of a given country will all have some influence on the nature of governance.
Some African countries have been successful in practicing democracy and Ghana is a good example-such states should be given adequate support to make them role-models for the others. When Berlin was a divided city, West Berlin was so massively resourced during the Cold War that East Berliners were prepared to risk their lives to flee to the West because life looked better.
Madam Chairman, there is no doubt that most Africans accept that dictatorship and bad governance are responsible, to a large extent for the backwardness, conflicts and great suffering in Africa. Of the fifty-three (53) states in Africa, only five (5) have not had military intervention.
Of the forty two(42) countries designated as Highly Indebted and Poor, thirty-two (32) are in sub Sahara Africa. Africa’s share of world trade is only 1%.
Africa comes to the top where diseases – HIV AIDS, TB, Malaria, hunger, squalor and deprivation are concerned. The time to act is now, hope deliberations at Tswalu will be followed by action. Nor should we forget the debt burden estimated over $300 billion serviced at 12.5% and growing in stock at 5% per annum.
While Africa struggles to embrace democracy and put in place right economic policies, I feel I should take advantage of the presence of the Assistant Secretary of State for Africa to appeal that the United States of America a country noted for generosity in its dealing with many states and regions around the world, should help tackle, with some enthusiasm or sense of urgency, and with adequate resources, the numerous problems that confront the African continent.
The question that is often asked is how did Africa find itself in such a terrible situation? Many explanations are available. Most African countries emerged from colonial rule to independence at the height of the cold war and the nationalist leaders were divided between the East and the West in their choice of developmental path. Most chose the socialist path for the following reasons:
(i) Socialist societies were one party states and their leaders could keep power with little challenge from political opponents. This system found favour with the leaders at that time.
(ii) The former Soviet Union appeared to be making giant strides with reported GDP growth of between (9% and 12% per annum.
(iii) Soviet Union was the first to put Sputnik in space and this immensely boosted her image in the eyes of Africans.
(iv) Some nationalist leaders felt that African societies were Communalistic i.e. similar to socialist pattern.
(v) Again the cold war also divided the leadership of Africa-just before the inception of OAU into Casablanca (Right wing) and Monrovia (left wing) groups. These groups undermined each other and prevented African leaders from acting in concert to provide sound economic policy and good governance for the continent. Nkrumah sensing the danger that could result form the division spoke and wrote about the need for Africa to unite, but he himself was firmly in the socialist group and had already taken a divisive stand.
(vi) Under colonial rule there was little capital accumulation among the natives, how could one then become accumulation among the natives, how could one then become Capitalist without capital?
(vii) In the absence of private capital the state felt it was its duty to use state resources to become the engine of growth – this of course failed miserably – because of corruption and inefficiency.
By this choice, many African leaders cut themselves from expertise, resources, and entrepreneurial spirit of the west, which could have helped their states. Hence Cote d’Ivoire, Ghana’s neighbour which stayed closer to the western pattern of development did much better than Ghana which went the socialist way.
Other shocks befell the newly independent states:
(i) By the end of the first decade after independence, the commodity boom, which had helped many of the colonies, came to an end and with massive reduction in export income.
(ii) The second decade after independence saw the end of the fixed but adjustable exchange rate system giving way to the floating system – Africa was again hit hard.
(iii) That was not the end, 1973-74 saw four (4) fold increase in oil prices and another hike in 1979. Africa could not withstand these shocks neither could she turn to the developed countries as they had cushioned themselves with restrictive economic policies.
As a result of these difficulties, Africa turned to the formation of the regional trading blocks – ECOWAS, COMESA, SADC and others. These trading blocks may not be the panacea for all our troubles but unlike President Museveni, I believe they are the right way forward. On the west coast, ECOWAS has encouraged free movement of goods and services, provided right of abode for ECOWAS citizens for a limited period and increased intra-Africa trade appreciably.
What Africa must hasten to do is to urgently pursue the path of processing our primary products and pressing for access into the major world markets. For example in the case of Ghana – cocoa processing on very large scale, gold must also be processed so should agricultural and fish products. Lumber must also be processed to basic furniture before export. Such activity will provide employment, stabilize the prices of export products and increase income from these products.
Madam Chairman, Ladies and Gentlemen, fortunately, slowly but surely Africa is learning from her past mistakes. The kind of unity needed for economic take off and democratic governance is being pursued through the African Union and NEPAD.
The greatest needs of Africa are human resources development and finance capital to be able to utilize her immense natural resources. Africa needs the help of friends and development partners, but it must be focused help along the areas indicated. There must also be increased trade not aid.
So what is the way forward?
i) The core values of democracy – rule of law, separation of powers, representative, government and human right must be embraced.
ii) The peer review mechanism as enshrined in NEPAD will also serve as a check on excesses in governance.
iii) The proposed African Parliament and court are indications that absolute sovereignty for individual states in Africa is in the process of becoming a thing of the past.
Madam Chairman, Ladies and Gentlemen, forty years after independence is too short a time for the world to write off Africa. With sound economic policies and respect for democratic governance Africa will overcome her many difficulties and join the comity of nations as a worthy partner. As a little boy, I was told that a big problem broken down to its component parts is more easily solved. I therefore suggest the following principles to be considered in trying to find solutions to Africa’s problems:
1. Free the continent from conflict
2. Erase the negative of Africa
3. Invest in human resource development
4. increase intra-African trade, especially regional trade
5. Battle diseases – e.g. Malaria and HIV/AIDS
6. Add value to primary products
7. Modernise agriculture
8. Ensure market access by development partners
9. Promote private sector
10. Ensure good governance
Africa will overcome her problems. Thank you for your attention.
