Purpose

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(No Transcript)
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Purpose

• To provide the class an understanding of the
  interrelation between the historical, political,
  and economic issues of Sub-Saharan Africa with
  emphasis on Nigeria, South Africa, and Ghana.

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Agenda

• Sub-Saharan Africa
• History
• Regions and Regional Powers
• The Problem(s)
• Definitions
• Comparative indices
• The Plan
• Over the Horizon
• Conclusion
• Questions

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The Bridge
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References

• Ayittey, George Africa in Chaos
• Van de Walle, Nicholas African Economies and the
  Politics of Permanent Crisis
• Nafziger, E. Wayne African Capitalism
• http//www.africa-union.org
• http//www.cen-sad.org
• http//www.transparency.org/surveys/index.html
• http//www.freedomhouse.org/

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Sub-Saharan Africa

• 48 countries
• Four times size of USA
• 770 million people
• 50 of worlds gold
• 40 of worlds potential hydro-electric power
  supply

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Sub-Saharan Africa

• 19 countries
• Six month military college
• Humanitarian projects
• Lifelong friends

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Sub-Saharan Africa

• Colonial History
• Anchor States
• South Africa
• Nigeria
• Kenya
• Ethiopia

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Sub-Saharan Africa

• Nigeria
• 123 million
• Africas largest domestic market
• GDP 36 billion
• Exports oil (98.4), cocoa, rubber
• 250 Ethnic groups

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Sub-Saharan Africa

• South Africa
• 42 million
• GDP 126 billion
• Unemployment 23.3
• Worlds largest producer of gold and platinum
• Agriculture and mining 9.7 of GDP
• Africans 78 of population
• Whites 10 of population
• Apartheid abolished in 1991

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Sub-Saharan Africa

• Ghana
• 17 million
• GDP 5.2 billion
• Inflation 23.6
• Exports cocoa, aluminum, gold
• Renewed political stability
• Key player in UN military missions

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Sub-Saharan Africa

• African Union
• Sub-Regional Organizations

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Sub-Saharan Africa

• African Union (AU)
• 53 members
• Accelerating the process of integration in the
  global economy
• Address multifaceted social, economic and
  political problems
• Includes Court of Justice, African Bank,
  Pan-African Parliament

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Sub-Saharan Africa

• Southern African Development Community (SADC)
• 14 members

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Sub-Saharan Africa

• Economic Community of West African States
  (ECOWAS)
• 16 members
• Seeks to eliminate tariffs and other obstructions
  to trade among member states
• Establish a common external tariff
• Seeks to create a single monetary zone
• Military monitoring group (ECOMOG)

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Sub-Saharan Africa

• Community of Sahel-Saharan States (CENSAD)
• 18 members
• Strengthen peace, security, stability, achieve
  global economic and social development
• Promote free movement of persons, capital and
  interests to Member states

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Sub-Saharan Africa

• Common Market for Eastern and Southern Africa
  (COMESA)
• 21 members
• main focus is on the formation of a large
  economic and trading unit
• Established a free trade area , that removes all
  internal trade tariffs and barriers
• Introducing a common external tariff structure to
  deal with all third party trade

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Sub-Saharan Africa

• East African Community (EAC)
• 3 members
• Emphasizes economic co-operation and development
• Regional cooperation and integration envisaged is
  broad based, covering trade to tourism, and from
  monetary affairs to infrastructure development
• Other areas of cooperation include free movement
  of trade, political matters including defense,
  security, foreign affairs, legal and judicial
  affairs

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Sub-Saharan Africa

• Intergovernmental Authority on Development (IGAD)
• 7 members
• Mainly drought and conflict stricken
• Foster regional security and sustain economic
  development
• Restoration of peace in Sudan and Somalia remains
  the primary goal

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Sub-Saharan Africa

• Economic Community of Central African States
  (ECCAS)
• 11 Members
• Develop capacities to maintain peace, security
  and stability
• Develop physical, economic and monetary
  integration
• Develop a culture of human integration and
• Establish an autonomous financing mechanism for
  ECCAS

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The Problem(s)

• The Problem Solving Process
• Step 1 Recognize define problems
• Step 2 Gather facts assumptions
• Step 3 Develop possible solutions
• Step 4 Analyze each solution
• Step 5 Compare outcome of each solution
• Step 6 Select the best solution
• Step 7 Follow-up and evaluate

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The Problem(s)

• Three layers
• Regional
• External
• Colonialism
• Racism
• Lack of Development
• Internal
• Political Instability
• Corruption
• Democratization
• Economic Development
• Environmental
• Racism and Tribal differences

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The Problem(s)

• Political Instability
• 14 countries (of 48) in conflict 1
• No state monopoly on use of force
• 64 coups from 1963-1968
• Widening gap between states and societies
• Wars are internal
• 1 Institute of Peace and Conflict Studies

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The Problem(s)

• Corruption
• Transparency International Corruption Perception
  Index
• Surveys of business, government, and country
  specialist

• Country CPI
• Bangladesh 1.3 (133)
• Nigeria 1.4 (132)
• Ghana 3.3 (70)
• India 2.8 (83)
• China 3.4 (66)
• Brazil 3.9 (54)
• Mexico 3.6 (64)
• South Africa 4.4 (48)
• Hungary 4.8 (40)
• Japan 7.0 (21)
• US 7.5 (18)
• Finland 9.7 (1)

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The Problem(s)

• Democratization
• 192 countries surveyed by Freedom House
• Free, partly free, not free
• Road to democracy
• Freedom
• Rule of law
• Incentives
• Infrastructure
• State apparatus

• Type Free PF NF
• 1973 35 18 47
• 2003 44 21 35
• GDP 89 5 6
• SSA (73) 2 9 28
• SSA (03) 11 21 16

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The Problem(s)

• Economic Development
• 54.8 PPP 1 per day in 2000 1
• 19 of Bottom 20 Low Income Economies are
  African 2
• Van de Walle notes four options
• Leave formal economy
• Religion
• Conflict
• Democratic response
• 1 Bhalla (2002), Class handout 07 Apr
• 2 Class handout, 02 Apr, based on UNDP and World
  Bank data

• Country PPP
• Sierra Leone 480
• Nigeria 830
• Ghana 1980
• India 2450
• China 4260
• Brazil 7450
• Mexico 8770
• South Africa 9510
• Hungary 12570
• Japan 27430
• US 34870

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The Plan

• Christianity, Commerce, and Civilization
• Development
• Environmental
• Structural
• Error in Diagnosis
• Internal
• External

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The Plan

• Development based on political, institutional,
  intellectual, and economic freedoms
• Seek to end conflicts
• Control environment
• Correlation between economic development and
  good governance
• President Bush African Policy

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The Plan

• African Growth and Opportunity Act (AGOA)
• New Partnership for Africas Development (NEPAD)

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Over the Horizon

• MBendi potential
• Rivers make Africa cheapest power source in the
  world
• Manufacturing center of world
• Tourism trade
• Increased agricultural output
• Post HIV/AIDS population smaller, richer, and
  more intelligent
• Malaria and TB eliminated

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Conclusion

• Key is to develop African solutions to these
  African problems (Ayittey)
• Evolve from crisis management to development

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Questions