Wednesday, June 18, 2014

Re: USA Africa Dialogue Series - FW: Rwanda: An Economic Model for Africa

Just a few cautious comments:
(1) I would not designate what has happened in China since the era of the four modernizations "economic prosperity and development." Yes, China has encountered phenomenal economic growth since the country's leaders recognized the need to abandon the communal approaches to production. However, there has been little development.
(2) Rapid growth in China has been achieved at the expense of the environment and severe inequalities in the distribution of income and wealth. Land, air and water pollution are at levels that greatly threaten human survival and render life extremely miserable, even for the rich.
(3) I would not consider the financial crisis of 2008 a fault of Western democracy. Systems, no matter how well designed, occasionally fail. What is critical is whether those systems have within them mechanisms to deal fully and effectively with such challenges and do so in a way that does not unnecessarily disadvantage some groups or individuals within the countries or societies involved.
(4) We should not be too quick to compare Nigeria, which has been independent for only a little over 50 years, with countries that have been free to experiment and develop their institutions for over a hundred years. Yes, Nigerian democracy is in its embryonic stages of development and it is failing to fulfill the expectations of its citizens. Nevertheless, authoritarianism, no matter how it is framed, is not the answer.
(5) Nigeria is a country comprising of a significant diversity of ethnic and religious groups, each with its own culture, customs, religious beliefs, and world view. Many of these groups were involuntarily brought together through colonialism and other historical events. The events and people that brought these groups together to form what is now the modern nation-state of Nigeria did so for reasons other than building a fully functioning and effective economic and political unit. Hence, the institutional arrangements that the colonialists, or other invaders, introduced into Nigeria and which now form the foundation for the modern state, were never designed to enhance peaceful coexistence, nor were there expected to provide groups and individuals with the wherewithal to maximize their values. Instead, these institutions were designed specifically to enhance exploitation and primitive accumulation. Consider the colonial police force, for example--it was not designed to maintain law and order and enhance democratic living; instead, its primary purpose was to defend the interests of the various European mercantile companies that operated in the colony against competition from indigenous groups. The police essentially defended elite (European colonial) interests, which were dominated by primitive accumulation, against competition from ordinary citizens. Such an approach to policing remains an essential part of governance, not only in Nigeria, but through out post-colonial Africa. If you have a chance, read: Phillip T. Ahire, "Policing and the Construction of the Colonial State in Nigeria, 1860-1960," Journal of Third World Studies, Vol. 7 (1990): 151-172.
(6) I would not compare Nigeria to Rwanda--although Nigeria has a lot of problems, it has the potential to develop both its political and economic institutions and evolve into a strong and economically viable democracy, one in which citizens have a say in what happens to them and their lives.


On Wed, Jun 18, 2014 at 5:45 AM, Assensoh, Akwasi B. <aassenso@indiana.edu> wrote:

 



Below is an enlightened but personal commentary by Professor Samuel Zalanga of Bethel university in Minnesota. 
 

*************************************************


In the economic development literature, the economic model that Kurt Davis Jr. (the author of the article) is promoting is known as: "THE BEIJING CONSENSUS" which means focusing on authoritarian rule or mode of governance while promoting or focusing primarily on creating conditions for economic prosperity and development. So economic prosperity is promoted first and foremost, while liberal democracy is made secondary, or sometimes even sacrificed.

This approach is contrasted with "THE WASHINGTON CONSENSUS" which believes in simultaneous promotion of economic and political liberalization. That means promoting liberal democracy at the same time as promoting democratic reforms. 

Unfortunately, Amy Chua in her book entitled: The World on Fire, shows that the Washington consensus does not work well in many developing countries for reasons to complex to discuss here. Thus after the 2008 economic meltdown or collapse, the Beijing Consensus has become more popular among many developing countries, which is giving concern to some people in the West because it means increased Chinese global influence. And it seems like many people are satisfied with economic prosperity even if it means lacking some social and political freedoms (authoritarianism). Russian listened to the West and promoted economic and political liberalization simultaneously and that led to the collapse of Russian Empire. The two reforms do not always complement each other when implemented simultaneously.

Going by what the author is saying, most African countries would do better under authoritarian regimes that produce stability and economic prosperity and opportunities, than an infatuation with democracy like in Nigeria where 25% of the national budget is spent on the national assembly in the name of democracy. Nigeria's democracy is an exploitation racket. But can we have progressive authoritarian government in Nigeria? Will Nigerians embrace that or is the country too complex for that?

Two more quick comments on Kurt Davis Jr' piece. Economic growth is a necessary but not sufficient condition for human development. Whether economic growth in a country leads to human development or not depends on  the institutional mechanisms or arrangement in society that mediate how gains from economic growth are shared. Otherwise, growth can happen without development.

Second. the author mentioned many things that Rwanda under Kagame is doing right but he did not pay attention to education. In the long run, Rwanda can only cross the industrial divide through huge investment in education and human capital. This is what accounts by and large for the success of many Asian countries..

At least even if Rwanda is authoritarian, Kagame inspires more confidence in the world than Jonathan Goodluck. I say this not out of disrespect but as a sincere empirical observation.
--------
Samuel Zalanga
Department of Anthropology, Sociology & Reconciliation Studies
Bethel University, 3900 Bethel Drive #24
Saint Paul, MN 55112.
Office Phone: 651-638-6023

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JOHN MUKUM MBAKU, ESQ.
J.D. (Law), Ph.D. (Economics)
Graduate Certificate in Environmental and Natural Resources Law
Nonresident Senior Fellow, The Brookings Institution
Attorney & Counselor at Law (Licensed in Utah)
Brady Presidential Distinguished Professor of Economics & Willard L. Eccles Professor of Economics and John S. Hinckley Fellow
Department of Economics
Weber State University
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(801) 626-7423 Fax

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