1. Political Economy of Africa's Postcolonial Development Failure: The Spiral of Economic Decline
· The more money is spent on patronage, the less there is for capital and social development projects.
· Little sustained genuine economic development in postcolonial period because of draining of recourse to consolidate power
· By 1970, over 60% of wage earners in Africa were government employees
· By 1980, at least 50% of all expenditure by African governments was used just for paying salaries of government employees.
· Inefficient parastatals drained away government resources.
· Over reliance on profits from export of cash crops to run the government.
· Rural farmers were used to subsidized urban dwellers leading to rural underdevelopment and migration.
· Emergence of squatter settlements of unemployed and underemployed in cities.
· Farmers started selling their crops in the black market: loss of tax revenue.
· Elites did not use corruptly acquired money for investments increasing national productive capacity.
· Almost all states were in economic decline by the early 1970s.
2. The Crisis in Postcolonial African Development (Mid to Late 1970s):
· Cumulative effects of poor decisions, misrule and mismanagement set in motion a crisis situation.
· The growth rate of Africa declined in the 1970s and 1980s. (0.2% growth between 1965-1984).
· GDP per capital felled on the average 2.3% annually from 1980-1985.
· By Mid 1980s, Africa was in full blown crisis: domestic factors, declining terms of trade, high population growth, oil shock of the 1970s.
· Poverty: By 1985 absolute poverty increased to 180 million people i.e., 47% of the population.
· By 1998, the number of the poor increased to 111 million.
· By the 1980s, most African countries lacked the money to pay for their budgets and so public services deteriorated.
· Citizens withdrew into the informal economic sector and relied on informal social and economic support systems (no taxes to be collected).
· Decay of state administrative institution started which increased corruption of government employees.
· Increased relevance of community self-help groups.
· Citizens disengaged from the state; refused to cultivate cash crops and no taxes are paid, and there were increased clandestine economic activities.
· African governments borrowed heavily to maintain themselves, with high interest rates.
· 40% of export earnings was needed to service the debt. High indebtedness led to the drying up of loan sources except for the World Bank and IMF.
I generally think of Mahathir Mohamed of Malaysia as a classic defender of state capitalism
not neoliberalism. South Korea is also in that category and even Meiji Japan, 1868-1912,
employed state capitalist strategies.
But what the IMF tried to do in Africa with the SAPs
after the 1980s was neoliberalism.
The question is whether Nigeria wants to go in the direction
of state capitalism or neo-liberalism- or none of the above.
Neo-liberal globalization is not inevitable or cut in stone. In fact the entire edifice
almost came tumbling down in the 2008 financial meltdown.
Professor Gloria Emeagwali
History Department
CCSU. New Britain. CT 06050
africahistory.net
vimeo.com/user5946750/videos
Gloria Emeagwali's Documentaries on
Africa and the African Diaspora
________________________________
From: usaafricadialogue@googlegroups.com [usaafricadialogue@googlegroups.com] On Behalf Of Samuel Zalanga [szalanga@bethel.edu]
Sent: Friday, October 30, 2015 11:39 AM
To: usaafricadialogue@googlegroups.com
Subject: Re: USA Africa Dialogue Series - Fw: Autopsy of Nigeria's failed privatisation programme | Punch Nigeria
I did not read the original article and so I am responding to the comment below. Because of the complimentarity of factors that need to exist and complement each other before capitalist enterprises can succeed, privatization as such, is not a panacea. In my work comparing neoliberal economic reforms in Malaysia and Nigeria, an important conclusion I arrived at is that as Max Weber's seminar work, "The Protestant Ethic and the Spirit of Capitalism" illuminates, there are certain cultural, institutional and social-psychological dimensions to successful capitalist enterprises. It is not just about money and investment. Inkeles and Smith too, in their book "Becoming Modern" discuss the institutional dimensions and social-psychological dimensions of modernity, in which capitalism is an integral part of.
Malaysia implemented neoliberla economic reforms at the same time that Nigeria did. But in Malaysia, the reform was not just an economic one. Prime Minister Mahathir Mohamad pushed very vigorously for, social-cultural, attitudinal and personality changes that he thought were necessary to make the new form of capitalist enterprises he envisaged succeed. What this means is that he was not hesitant to openly critique some cultural practices that would hinder his people from succeeding. Some of the things he said will be considered racist if said by a White person. Whether public enterprises or private capitalist enterprises, there is a certain kind of human being, with certain kinds of attitudes, worldview and predisposition that is better fit for a capitalist market environment. Whether this is good or bad is another issue that is important but I do not want to get into that debate here.
Of course many economic anthropologists have argued based on empirical research that while Weber was right in his seminal work in arguing that there are certain personality characteristics, cultural practices, and institutional structures and modus-operandi that are central to the success of capitalism, he was wrong in assuming that this only existed in the West. Anthropologists have dressed down the Protestant Ethic to its basic essence and concluded that there are many groups in the non-Western world that already have the characteristics that are functionally equivalent to Weber's Protestant Ethic.
That is why in many African countries, even private businesses have some serious problems of excelling, which challenges the simplistic assumption that mere privatization will just create miracle of success. Without infrastructure and the internalization of the ethic of capitalism, such organizations will still perform poorly.
Moreover, Thatcher implemented similar reforms in Britain where the privatization process undervalued the value of public assets that were to be sold. There is a documentary series by the BBC called "For the Love of Money"which demonstrates how privatization under the regime of neoliberalism created conditions for the 2008 Great Recession which can be veritably described as creating conditions for the "Tragedy of the Commons."
Many African countries and their leadership lack the commitment, vision and the discipline to deal with some of these problems. IN the first place, they could have resisted the adoption of Washington Consensus as a panacea to human problems. But in the great majority of universities in Africa, they teach economics in a traditional way. Without being grounded in economic history, they will just rely on the abstracts models in the text books which do not actually do justice in capturing the experience of even Western countries. The assumption that privatization through trickle-down economics will bring "universal opulence" or prosperity is not only naive, simple and simplistic but it assumes too much.
Piketty in his book "Capital in the 21st Century" provided a thorough historical and contextual analysis of Kuznets' Curve which is considered as a gospel truth in economics, i.e., that initially as development takes off, inequality will widen but in the long run, things will level off. Piketty with evidence illuminated the context of Kuznets' economic theory and the social conditions or atmosphere that led people to embrace it. i.e. Cold War ideological campaign and propaganda. The goal was to persuade newly independent countries to ignore the Soviet campaign against capitalist inequality since even if inequality characterizes early effort at economic development in developing countries, in the long run, this will work out well. But as John Maynard Keynes said, in the long run, we are all dead.
As a sociologist, I recognize the difficulty of talking about the social-cultural dimensions of capitalism in especially African context. Africans love their heritage, there is nothing wrong with that. Although I question some reaction or resistance to the demand to change some aspects of African culture because the same Africans that are so much in love with their culture are in many aspects of their lives in the forefront of consuming the fruits of Western culture. This is why in his disappointment with them, Fanon in his chapter "The Pitfalls of National Consciousness" in his book the "Wretched of the Earth," lamented and ruminated on the postcolonial African bourgeoisie that is satisfied to consume western products but not intellectually curious enough to ask the means or process through which the West created the technology or other things that we Africans enjoy using. Even if we have a unique culture, Africans have no regret or ashamed of driving foreign SUVs, enjoying sophisticated cell phones, using foreign building designs etc. Sometimes cultural arguments are only used to express the unwillingness to bring about meaningful change, otherwise, in many aspects of the lives of Africans, they are eager and without hesitation to adopt and adapt foreign or even western cultural elements. Often, many feel it makes them feel superior.
The bottom-line is: Africans or Nigerians, have to understand what the modern world is in its essence and real terms. And then they have to make a harder decision on whether they want to be part of it or not. It is their right to make that choice. If they decide to be part of it, they have to ask, in what way or manner do they want to be part of it. Some think of creating something uniquely African, -- call it African modernity or whatever. Then Nigerians and Africans have to ask what is the minimum level of competence that they need in order to become active players in the dog eat dog neoliberal global economy which they embraced, probably without thinking deeply about the social implications of Herbert Spencer's Social Darwinism as still the core ethic of capitalist system of production. Nigerians and Africans will have to decide what changes they need to make if they want to be active players that will thrive and flourish in such a global economy which frankly I am sorry to say does not care about Nigeria or other countries per se. In Haiti over 200,000 people died after the Earth Quake but it did not affect the value of shares in New York Stock Market, Asia or Europe. Given the logic of the system, a whole country can be buried in the ground and if the people are not central to the global capitalist system, it is not going to stop the system from functioning. It will for many only be an immediate issue of concern if it will affect shares and rate of return. Otherwise, just perform the funeral and cover the news for some weeks and then just proceed to business as usual.
The Beijing Consensus embraces the materialistic goal of Western development but the Chinese pursue different strategies to arrive there and many westerners are worried and surprise. They may criticize Chinese economy for not being orthodox but none of the current western nations grew under conditions that they systematized in economic text books. It is not easy to ask people to make cultural changes because culture defines people. Worse even, you are not even sure that if you make the cultural changes, you will automatically succeed. But one thing is sure, there are certain types of personality characteristics, cultural set up and social-psychological orientations that best fit with the current dog eat dog world or global economy. Westerners did not find it easy when they went through those transformations.
The painful thing for Nigeria or African countries is that even if they want to retrieve something original about their past e.g., precolonial, they cannot do so. It is gone, and their mindset if they observe carefully is no more compatible with such traditional set up in totality. But to move forward and embrace the new system is painful, sometimes humiliating, and creates feeling of ambivalence and nostalgia. But nostalgia that leaves millions in poverty. So whether Nigeria decides to move forward and embrace the changes that need to be made, or decide to do something Nigerian or African, either way, it is not going to be easy and will require discipline, wisdom and judgement.
China has made great success but there is widening inequality and they have embraced the predominant idea of conceiving development in materialistic terms. Their rich are falling into the same trap of copying western consumption, as if they are inferior. But then they talk sometimes with great pride. Obviously there is much cultural ambivalence in the country. They can go back to Confucius but at the end of the day, it is whether Confucius and his heritage can be adapted to neoliberal globalization which humanity has been so gullible to accept as the new secular religion of humanity. Exactly where this, even at its best taking us to, no one knows. But we are too busy to have time to sit down and reflect. The culture and lives of people is controlled by the tyranny of the urgent.
Samuel
On Fri, Oct 30, 2015 at 6:17 AM, ayo_olukotun via USA Africa Dialogue Series <usaafricadialogue@googlegroups.com<mailto:usaafricadialogue@googlegroups.com>> wrote:
Sent from my BlackBerry® wireless handheld from Glo Mobile.
-----Original Message-----
From: Olayemi Folusho <offlinenspri@gmail.com<mailto:offlinenspri@gmail.com>>
Date: Fri, 30 Oct 2015 11:35:38
To: ayo_olukotun@yahoo.com<mailto:ayo_olukotun@yahoo.com><ayo_olukotun@yahoo.com<mailto:ayo_olukotun@yahoo.com>>
Subject: Re: Autopsy of Nigeria's failed privatisation programme | Punch Nigeria
No matter how policy will be good in Nigeria it's will be redesigned to benefit some individual and not the country. The privatization programme in Nigeria was hijacked to make those in power super rich by undervaluation of assets and sale to those in the corridors of power. If Buhari's administration is to look into privatization programme he may have no time to do any meaningful work. The corruption level was deep and wide in scope.
Sent from my iPad
> On Oct 30, 2015, at 1:27 AM, ayo_olukotun@yahoo.com<mailto:ayo_olukotun@yahoo.com> wrote:
>
>
> http://punchng.com/2015/10/2259
>
> Sent from my BlackBerry® wireless handheld from Glo Mobile.
--
Listserv moderated by Toyin Falola, University of Texas at Austin
To post to this group, send an email to USAAfricaDialogue@googlegroups.com<mailto:USAAfricaDialogue@googlegroups.com>
To subscribe to this group, send an email to USAAfricaDialogue+subscribe@googlegroups.com<mailto:USAAfricaDialogue%2Bsubscribe@googlegroups.com>
Current archives at http://groups.google.com/group/USAAfricaDialogue
Early archives at http://www.utexas.edu/conferences/africa/ads/index.html
---
You received this message because you are subscribed to the Google Groups "USA Africa Dialogue Series" group.
To unsubscribe from this group and stop receiving emails from it, send an email to usaafricadialogue+unsubscribe@googlegroups.com<mailto:usaafricadialogue%2Bunsubscribe@googlegroups.com>.
For more options, visit https://groups.google.com/d/optout.
--
Samuel Zalanga
Department of Anthropology, Sociology & Reconciliation Studies
Bethel University, 3900 Bethel Drive #24
Saint Paul, MN 55112.
Office Phone: 651-638-6023
--
Listserv moderated by Toyin Falola, University of Texas at Austin
To post to this group, send an email to USAAfricaDialogue@googlegroups.com
To subscribe to this group, send an email to USAAfricaDialogue+subscribe@googlegroups.com
Current archives at http://groups.google.com/group/USAAfricaDialogue
Early archives at http://www.utexas.edu/conferences/africa/ads/index.html
---
You received this message because you are subscribed to the Google Groups "USA Africa Dialogue Series" group.
To unsubscribe from this group and stop receiving emails from it, send an email to usaafricadialogue+unsubscribe@googlegroups.com<mailto:usaafricadialogue+unsubscribe@googlegroups.com>.
For more options, visit https://groups.google.com/d/optout.
--
Listserv moderated by Toyin Falola, University of Texas at Austin
To post to this group, send an email to USAAfricaDialogue@googlegroups.com
To subscribe to this group, send an email to USAAfricaDialogue+subscribe@googlegroups.com
Current archives at http://groups.google.com/group/USAAfricaDialogue
Early archives at http://www.utexas.edu/conferences/africa/ads/index.html
---
You received this message because you are subscribed to the Google Groups "USA Africa Dialogue Series" group.
To unsubscribe from this group and stop receiving emails from it, send an email to usaafricadialogue+unsubscribe@googlegroups.com.
For more options, visit https://groups.google.com/d/optout.
Department of Anthropology, Sociology & Reconciliation Studies
Bethel University, 3900 Bethel Drive #24
Saint Paul, MN 55112.
Office Phone: 651-638-6023
Listserv moderated by Toyin Falola, University of Texas at Austin
To post to this group, send an email to USAAfricaDialogue@googlegroups.com
To subscribe to this group, send an email to USAAfricaDialogue+subscribe@googlegroups.com
Current archives at http://groups.google.com/group/USAAfricaDialogue
Early archives at http://www.utexas.edu/conferences/africa/ads/index.html
---
You received this message because you are subscribed to the Google Groups "USA Africa Dialogue Series" group.
To unsubscribe from this group and stop receiving emails from it, send an email to usaafricadialogue+unsubscribe@googlegroups.com.
For more options, visit https://groups.google.com/d/optout.
No comments:
Post a Comment