Catholic University of Eastern Africa, Nairobi, Kenya University of Dar-es-Salaam, Tanzania Kenyatta University, Nairobi, Kenya Makerere University, Kampala, Uganda Saint Augustine University of Tanzania, Mwanza University of Nairobi, Kenya Sokoine University of Agriculture, Morogoro, Tanzania Uganda Martyrs University, Nkozi, Uganda University of Zambia, Lusaka University of Zimbabwe, Harare
 
Economic Development & Nation-building in Africa: Which Way Now

Economic Development & Nation-building in Africa: In Search of A New Paradigm

 

Presented by Dr. Peter John Opio, Dean of Business Administration and Management-

 Uganda Martyrs University

At   African Nation- Builders Workshop- Minnesota 25,2000

 

Preamble: 

 

We live in a world of unprecedented opulence that would have never been imagined a century or so ago. In the field of trade, commerce and communication, we have witnessed the rise of new players. Countries like Korea, Taiwan, India, Brazil and Mexico are now respected as economic partners by opulent nations. There have also been remarkable changes beyond the economic sphere. The twentieth century has established democratic and participatory and democratic governance as the preeminent model of political organization, with human rights and political liberty as preeminent concepts.

And yet ours is also a world of remarkable deprivation, destitution and political oppression. Old problems have taken on new twists. Poverty, hunger, violations of elementary political freedoms as well as of basic liberties, neglect of the interests and agencies of women's, worsening threats to our environment and the sustainability of economic development all add to the grim picture[1].  Although these deprivations can be observed in rich as well as poor countries in Asia, Europe and the Americas, the situation seems even grimmer for Africa countries. Consider the figures from the World Development Report 2000 on human poverty in developing selected countries.

 

 

*Kenya: 30.6% of the population are not expected to survive to 40; 56% of the population are without safe drinking water; 42% live below national income poverty line while 26% live on less than 1$ per day.

 

* Ghana: 20.6% people are not expected to survive to 40; 75% have no access to health services, 68% have no access to sanitation; 31.4% live below the national poverty line, while 78.4% live on less that 1$ per day.

 

*Nigeria: 33.3% are not expected to live to 40; 51% have no access to safe drinking water; 59% lack proper sanitation; 70.2% live on less than 1$ a day, while 43% live below the national poverty line.

 

*South Africa: 25.9% of the population are not expected to survive to 40; 13% are without access to safe water and sanitation; 11.5% live on less than 1$ per day.

 

*Uganda: 45.9% are not expected to survive to 40; 54% have no access to safe drinking water; 29% have no access to health services; 43% have no proper sanitation; 36% live on less tha1$ a day, while 55% are below the national poverty line.  

       

                                                Adopted from Human Development Report 2000

Whether one believes the figures or not, the experience on the ground is worrying. The increase of civil wars and trans-boarder wars has turned Africa into a hotbed of ignominious strife. The last decade has witnessed the collapse of the nation-state in Somalia, Liberia, Rwanda and Congo, and the general failure of national development plans throughout the continent.

   

Why Africa lags behind in economic development is the subject of endless debates. I will not dwell on them at length here. My contention runs as follows: economic development strategies in Africa have not produced the desired growth-related objectives so far because of following: (a) the inability on the part of policy/decision makers to establish a meaningful "fit" between economic progress, power politics and the good of the society (the common good); (b) the lack of synergy between political and religious institutions. I therefore, argue for new "partnerships" between states, governments, religious bodies and international institutions as the way forward for meaningful economic development in Africa and effective nation building. First, I will start by dispelling some grand generalizations about economic development in Africa.

 

Wealth Creation, Development and Economic Efficiency in Africa:

 

Like many other developing nations the economic strategies pursued by nearly all post-colonial African nations states South of the Sahara in the post cold-war era have largely been influenced by and largely modeled on the canons of liberal capitalism. The failure and dismal performance of African countries once aligned to the Marxist or to one or other form of state managed economic system, notably Tanzania and Mwalimu Nyerere's Ujamaa, Zambia and Kenneth Kaunda's African Humanism, Ghana and Nkwame Nkurumah's Conscientism, Uganda and Milton Obote's "Common Man's Charter" and the shift of policies by these countries suggest the following. Economic growth and development are possible only in acclimate where freedom of enterprise and the right to private property are positively recognized. Secondly, the market as an economic institution requires a democratic system where human rights and freedoms are fully protected. 

 

The failure of social market experiments, led many African nations south of the Sahara, especially under-performing ones, to quickly embrace, in the hope of attracting loans and capital for development from the World Bank and International Monetary Funds, free market policies and fierce recovery strategies, such as privatization and Structural Adjustment programs (SAPs). These programs were adopted piecemeal by African countries seeking capital for development and reconstruction. The primary concern of many African leaders henceforth shifted from promoting the well-being of the least advantaged members of the society to being labeled "credit worthy" by the WB and IMF.  They also harnessed the support of these institutions to justify their claim to power and safeguard their political agenda. Uganda's Yoweri Museveni and Ghana's Rawlings were hailed the world over for ushering in a new economic era in their respective countries and in the African continent at large. However, what has not been said is to what extent their open-handed disposition to the IMF/WB conditionalities, strategies and policies has or has not done to create a just, humane and harmonious society. Although Direct Foreign Investments occasioned real GDP growth, none the less these investments remained marginally effective, because of high incremental capital output ration (ICOR). Their influence on the economic policies of these nations and impacts on society have however, not abated. Why this is so, is the subject of polarising and bloodletting debate in favour of or against the IMF/WB policies. My contention is that these debates are based on and feed on the same formalistic understanding of wealth creation and a unilateral concept of economic growth. These claims, we contend, are out of step not only with the African phenomenology of work, life and community. They tend to clinicalize the problems of poverty and inequality on the continent.

 

Claims and Disclaimers

 

Proponents of liberal market economy argue that foreign investment has a positive effect on Southern economic development.[2] Such investments fill resource gaps in developing countries and improve the quality of factors of production. Liberal market policies attract direct foreign investors who bring into the underdeveloped countries otherwise unavailable financial resources through the firm=s own capital and its access to international capital markets. They also contribute crucial foreign exchange earnings to the developing world through their trade effects. The marketing skills and knowledge of foreign markets of foreign investors and their competitive products, it is argued, generate exports and thus increase the foreign exchange earnings of the host countries. The economic turnaround in sub-Saharan African countries particularly Uganda in the later part of the 1990s provides a useful (albeit limited) case in point. The liberalization of the economy saw a rise in foreign investment to unprecedented level since independence and has registered a growth rate of 8% per annum in GDP during 1992-95, thanks to increase in foreign investments. 

A second important gap filled by foreign investors, according to proponents of liberal market economy, is technology. Foreign investors allow Southern states to profit from the sophisticated research and development carried out by their corporations and make available technology that would be out of reach of developing countries.  Foreign firms also have contributed significantly in the training and development of local staff, stimulating local technological activities, and transfer of technology throughout the local economy and improving productive efficiency of host African nations. Raphael Kaplisky (1987: 201-260) attributes the comparative advantage of the Kenyan economy over other countries in the Great Lakes region of Africa to the technical change instituted by British multinationals such as Unilever. The use of advanced technology including robotics within the automobile industry by multinational corporations (MNCs) such as General Motors in South Africa explains why South Africa has continued to sustain its market dominance in sub-Saharan Africa (Richard Jackson 1983).[3]


Third, argue proponents, foreign investment has helped improve the quality of labour in the South and in deed, in Africa. It provides needed managerial skills that improve production, creating more jobs. The service sector, in particular, has seen notable improvement in some African countries over the last decades. The creation of jobs, the provision of new and better products, and programs to improve education for local employees and communities have been evoked as a case for MNCs activities in the Southern hemisphere in general and the preponderance of liberal capitalism and its Smithian heritage over socialism.

 

African Nation States and the Development Challenge: Limits of Grand Strategies

 

There is an asymmetry between the assumptions of liberal policies on the economic development in Africa, nation building and the actual political, social and economic experience on the ground. Often overlooked are the actual impacts of SAPs on the life of the least advantaged members of the society.  The paradox of economic development in Africa is inextricably tied to the methods, policies and strategies employed by African nations to effect economic turnaround, notably: (1) foreign aids; (2) structural adjustment programs (SAPs); (3) privatization programs.

First, let me make a brief description of the World Bank and IMF. The two most important and yet most contested institutions of our time, the International Monetary Fund and International Bank for the Reconstruction ad Development (World Bank) were founded in the period following World War II under the famous Bretton Woods Agreement to monitor and establish the parity or value of the currencies of the first world nations, advice these countries on policies affecting monetary systems; and very important for Europe and the US, they provided loans for current accounts deficits as well as capital for reconstruction purposes. These funds came from member states and benefited fellow member states. For instance, between 1945 and 49 the US gave financial assistance amounting: $3 billion in relief funds and $3.75 billion to Great Britain to enable it complete its reconstruction and return the pound to convertibility. The US too, benefited from this arrangement. Huge sums of money from these institutions helped build the US rail network.

 

Short of their own funds, developing countries too, turned to these funds in the form of bank loans. In fact, in the first five years, half of the World Bank loan lending went to European reconstruction and development; the other half was extended to developing countries on hard terms. In deed, in the 1950s and 1960s financial/technical aid emerged as a new form of economic interaction. According to economic analysis of the time, the growth of less-developed countries was truncated primarily by insufficient capital investment and external financial assistance was thought to be only viable solution. The developing countries benefited much at first. Between 1961 and 1969, the Development Loan Funds (DLF) initiated by the US availed $4.8 billion to Latin America, while British aid doubled from $648 million in 1956 to $414 in 1963.

 

Monetary Aid as the Double Bind: The Peonage of Debt

 

While aid thus ushered in a new form of international relations, beneficial to the countries of the Southern hemisphere, it did not and has not since, been able to change the balance of economic power between the North and South. In fact, it has dismally fallen short of being a springboard for sustainable development. Instead, what has emerged among others is the problem of unserviceable debt. The figures are revealing:

Total external debt stock in underdeveloped countries has not just accumulated to frightful heights. Between 1980 and 1991, it climbed from $79 billion to $178 billion. In the meantime however, economic growth in real terms in these countries has shown no improvement. Interest areas on these loans meanwhile have rocketed from a mere US$1.25 billion in 1982 to $12.89 billion in 1991. The total debt of African countries rose from $6 billion in 1970 to $210.7 billion in 1994, representing 82.8% of Africa's GDP and 254% of its export earnings.

 

Unless canceled, the debt owed by Africa is likely to exceed the $300 billion mark. What this means, is simply that Africa, and many highly indebted countries can not in any way develop or move out of its daunting poverty, a frightful disease. In the same vein, Africa cannot under these circumstances adapt to changes in the global economic environment. Take the case of Uganda. Although the Ugandan economy has experienced some improvements in the years following the adjustment programs (IMF/WB conditionalities) [which occasioned the lowering of inflation to 6%] Uganda's total debt showed no improvement. Instead, the national debt rose from $ 2,6 million in 1993 to 2.9$ in 1994, with debt servicing taking as much as 167 million. The mounting debt burden has created phenomenal gap in the balance of payment and eaten into its foreign exchange reserves.

The implication of this is grave and surpasses by far mere figures. More affected by debt burden are the poor, the vulnerable, and the politically and economically disenfranchised. The heavy interest on debt (loan repayment) not only means the government can not invest in productive development activities, but also there is not much left to invest into the basic infrastructure, particularly in health and in education. I was recently stunned by an experience of a family in Uganda that lives in the outskirts of Kampala, not far from the multimillion dollars WB regional office. They lost their 5-year-old daughter in June and were about to loose another one from malarial attack because they could not afford 1$ to take her for treatment at the National hospital, which had just been restored, at high cost, with a loan from the World Bank. The child actually died in the hospital, on the ICU bed and she was not the only one. When I took the second dying child, I found out that that attractive building was only a shell. Not only is it under-equipped but the cuts in health spending by the Uganda government under the IMF/WB adjustment programs had driven many nurses and doctors out of the country, or into other professions. The irony here is that it is the same IMF/WB who will give money to improve the health infrastructure but care little about the consequence of adjustment policies on the quality of health-service delivery.

 

This and related experiences justify, in my estimation, the call to cancel Third World debt. Not however, because it makes it impossible for these countries to develop, but because of the consequences on the most vulnerable. I underscore the most vulnerable because it is the poor and not rich bureaucrats who ultimately service the interest on debts through taxes. In most Third World countries, Africa in particular, not only is the case that subsequent governments pay the interest accrued on foreign debts, but most of the times, large percentage of the loans find their way with the knowledge of some IMF/WB officials in the private banks of these leaders. What professor Denis Brutus of South Africa recently pointed out about the uncanny conduct of some African leaders and IMF/WB officials is revealing and disturbing:

 

The issue of debt is an obscene reality for Africans across the continent and in deed for the whole world. The IMF loaned money for the apartheid governments and Nelson Mandela's government is expected to pay those loans back. The IMF supported Mobutu (RIP) knowing well that the loans made to Zaire went into Mobutu's personal accounts. In Southern Africa – Mozambique, Zimbabwe, and all across the continent the IMF has not only hurt current generations, but they have devastated the heritage of future generations (Third World Resurgence, 97, 1999:35)

 

This sounds quite hard and even extreme but the message it brings forth is clear. The issue of debt crises is complex, to be sure. The argument by liberal capitalists that the poor countries must not only pay their debts but must also make themselves ever credit worthy flies away. The current debt problem, as I perceive it, by far supersedes the issue of economic justice, narrowly understood. Closely observed, there is a blatant injustice on both sides. Not only the powerful negotiators on both sides, but the taxpayers, do not primarily experience this injustice. On your side in the South, you tax feeds capital into these institutions (IMF/WB), which tacitly allow unscrupulous leaders to place sizable amounts of these loans into private accounts. On the Third World front the real debtors are the poor who bear the brunt of it all. The African leaders do not bother and are largely quite philosophical about the burden the debt burden creates on the poor. In stead, they are quick to succumb to token measures adopted by the WB and IMF.

 

 Ghana & The impasse of Adjustment Centered Policies on Economic Restructuring

 

            Ghana's experience is equally stunning. Like Uganda, Ghana has been showered with foreign aid as a reward for its pursuit of the WB/IMF recovery programs. In its decade-long quest for economic recovery, the government has drawn virtually every funding mechanism available at the Bank and Fund, contracting more than $1.75 billion in loans and credits by the end 1990. Despite massive amount of foreign financing, Ghana has not achieved as much progress. The often-cited indicator of success – the GDP growth averaged 3.88% between 1983 and 1990, representing a nominal improvement over the pre-adjustment period. However, this figure contrasts sharply with the sectoral distribution of GDP, which shows, among other things, that in Ghana, growth has been uneven and has taken place principally in areas receiving direct investment support. For instance, while the mineral and forestry sectors have grown, manufacturing has declined. The performance of the domestic food and livestock sub-sectors, critical to the well being of most Ghanaian consumers, has on balance been negative. Thus although the WB and IMF have hailed the agricultural export sector as a success story, it is little known that the emphasis on cocoa production has exacerbated regional and local income disparities. Although cocoa farmers comprise only 18% of Ghana's farming population approximately 46% of government expenditure in the agricultural sector has been allocated in the cocoa industry.  As a result, Ghana's food self-sufficiency declined steadily well into the 1990s, and per capita income of non-cocoa farmers stagnated. Producers of rice, vegetable oil and other cash crops were hit by cheap imports, the product of liberalization policies and exchange rate adjustments.   The claim made by World Bank economists that adjustment policies have created a framework for poverty eradication and that market liberalization in agriculture has increased prices and increased rural household incomes flies away before the experience of poverty of rural farmers in Ghana and many other sub-Saharan African countries. Oxfam's experience across Africa has shown, on the contrary, that "an undue emphasis on market deregulation has exposed vulnerable peasant producers to private sectors monopolies that have proved every bit as exploitative as their parastatal predecessors". (Oxfam America).             

This trend of affairs calls into question liberal growth policies. The ensuing inequality and consequence on the most vulnerable members of the society can no longer be considered mere trade offs. Inattentiveness by African leaders to economic needs of the most vulnerable members of the society explains why African states which have "excelled" in pursuing liberal economic strategies do not rank as the most humane and are more often than not, prone to revolt and dictatorship. As the British pundit Charles Handy correctly points out in his erudite work The Hungry Spirit: "A society in which the top 1% earn more, collectively than the bottom 40% will not long be tolerated in a democratic state. The 40% will eventually revolt, and, dictatorship, one hopes, is not an option".[4]  The libertarian adage that inequality is at best an inevitable tradeoff of a free market economy and, in a sense, necessary for efficient economy has been questioned and found wanting by one of Britain's leading economic analysts, Will Hutton. In his instructive work, The State We are In, he notes:

 

Inequality between classes and regions affect both demand and supply. Demand becomes more volatile and unbalanced while supply is affected by under investment and neglect of human capital. Economic cycles are amplified; firms become more like opportunist traders than social organizations committed to production and innovation. As a result, the long-run growth rate tends to fall, unemployment rises and the government's underlying fiscal position deteriorates, and a vicious cycle intensifies the volatility of the demand and supply.[5] 

 

The above citation sums up the British experience accurately. The collapse of social cohesion that ensued Margaret Thatcher's economic restructuring did not only rid off what was old and inefficient. The individualist, laissez-faire values, which guided the reforms, ripped the British society of all sense of human decency, solidarity and social justice. The dogmatic commitment to inequality and euphoria for quick-wins provided fresh grounds for new owners to employ and remunerate at will. Although this allowed employers to suck more efficient workers into the work force, this market based employment strategy did not always deliver. In the downsized industries, the same flexibility generated a rise in unemployment – up 1.5 million over the years – and led to a sharp fall in demand. The loss of income by more than one third of the population affected the economy at large. Consumer spending fell by 7.6 billion pounds by 1992.

           

The impasse of a purely market-driven development agenda on Africa need not be proven any further. What is clear is that, in the absence of any sense of commitment to the good of the society, further implementation of adjustment policies is more likely than not, going to lead to the disintegration of African nations. This will further be exacerbated by the absence of any realistic safety nets within most African states.

  

Privatization and the impasse of "Quick turns" Efficiency

 

Despite the unfailing support from WB/IMF economists, the pursuit of privatization programs over the last decade has drawn criticism not only from the academics, community activists but also the United Nations Development Program (UNDP). As the UNDPs' 1993 World Development Report asserts: "In many countries the privatization program has been more of a 'garage sale' to favored individuals and groups than a part of a coherent strategy to encourage private investment" and promote equal opportunities. In many African countries, notably Kenya, privatization has served as a conduit to corruption and flight of capital from the country. In more than one case, the sales of public enterprises have been made to parties lacking managerial capacity.  All in all, what parties drawing the policies have not taken into consideration is the long-term consequence on the society. When assessed in terms of the hard-fast logic of efficiency and profitability, many of the firms may in deed, not have been relatively successful.

Furthermore, there is evidence to show that parastatals in Kenya perform better than private enterprises on a range of economic indicators. Besides, the fact that some privatized enterprises have not performed any better, but have shown greater inefficiency such as Uganda's Nytil Pifcare, indicates that the trouble with some companies (and there are many such companies in Africa) is not the lack of private incentive, but ineffective management.  By ineffective management I do not mean lack of managerial skills and competencies. The irony is that in Britain itself, the threshold of privatization, the sale of public utilities have not delivered the promised benefits to the public. The Thames Water Company and the British Rail are by no means paragons of efficiencies. It is now well accepted among management academics that a listless pursuit of economic efficiency is not sufficient in itself. In his works The Empty Raincoat and The Hungry Spirit Charles Handy argues that an economic agenda that places efficiency and productivity gains over and above the demands for justice, solidarity and the common good is not the mark of a decent society. Moreover, a decent capitalism cannot be built on the narrow idea of wealth accumulation, but must instead rest on a broader understanding of human life and society. "Capitalism, no matter how successful, will never on its own give a complete answer to the question 'Why'…Ultimately, we need a new understanding of human life, one that gives money (capital accumulation) its due, but not more than its due". [6]      

Which way then, for Africa?

 

 

Towards A New Vision of Economic Development and Nation building in Africa

 

From capital accumulation to capability enhancing policies: the indispensable role of freedom

 

Economic development in Africa cannot be built and sustained on models of economic growth, which places self-interest and profit maximization over and above all other values, including the concern for the vulnerable. Economic development in Africa ought to be built on values of caring, so as to narrow the highly unjust and unacceptable gap between the very few rich and the majority, that live in insecure sub-human conditions. This requires that African governments give priority to policies and programs, which promote the common good and enhance the capabilities of their citizens. The capability approach enhances the understanding of development in significant ways. It draws attention on the agency of economic actors, and emphasizes their freedom to determine their lives. As the Nobel laureate Amartya Sen has correctly pointed out in his most recent work, Development As Freedom, development seen in terms of substantive freedom of people has far-reaching implications for understanding of the process of development as well as the means of promoting it. To wit, it includes the removal of constraints and deprivations: economic, social, as well as political.[7]

            The emphasis Sen lays on freedom is important; it smacks at Africa leadership profoundly. Economic development will forever remain a distant dream as long as African leadership does not break away from their dependence, not only on financial aids, but also on development policies designed elsewhere. The African development needs, like the people, are unique and have unique sets of values. To accept full-scale and to apply piecemeal strategies for development drawn by economists who have only a notional knowledge of the African continent and its need is to betray the African people. This betrayal is all the more painful as those masterminding it are precisely those who have been entrusted with authority by the people to manage the economy on their behalf. As Pope John Paul II points in his encyclical Solicitudo Rei Socialis:

 

Development, which is merely economic, is incapable of setting man free. On the contrary, it will end up by enslaving him further. Development that does not include cultural, transcendent and religious dimensions of man and society, to the extent that it does not recognize the existence of such dimensions, and does not care to direct its goals and priorities towards the same, is even less conducive to authentic liberation…Peoples aspire to be free: their search for full development signals their desire to overcome the many obstacles, preventing them from enjoying a 'more humane life'". (SRS: #46).

 

Economic development can only issue from political freedom. However, the sort of political freedom Africa needs is one that is not dictated by global economic concerns, in the first place. Without doubt, Africa cannot lock itself out from the world, and must, where necessary, respond to the competitive forces in the global market. However, the blind pursuit of the dictates of the market will not engender the peace, stability and security that Africa needs. As managers of their nation's economy, African leaders need to free themselves from ideas, policy dictates and strategies which run counter to the values of the people. Any economic activity, which does not promote the dignity of the human person and integrity of the community "runs the risk of unduly absorbing human energies and limiting people's freedom".[8] African political leaders have an enormous moral task to safeguard, defend and promote the economic independence of their nations.   

Again, we have examples to learn from. Nations which were at one time uncompetitive and economically backward by the conventional standards, such as India, Korea, China and Taiwan have made their ascent precisely because of the decision by their leaders to steer free of economic 'conditionalities'. The main task that lies ahead in this regard for Africa to acquire its economic identity is to make a decisive effort to de-neocolonize itself. It goes without saying that African leaders can not lead Africa into greater political freedom and enable their compatriots to enjoy fruits of civil liberties when they are not free themselves. The Latin adage: "nemo dat quod non habet" (Nobody gives what he/she does not have) is true in this regard.     

The 'model' of development Africa needs is one that integrates Africa's social values, especially the values of community, sharing and mutual support with the spiritual destiny of the people. The African world-view is phenomenological, i.e. embedded in experience, rather than in some rationalistic or rationalizable notion of the person (anthropology) and society (sociology). Africans do not just co-exist; they pro-exist, they live, engage in any form of activity not primarily for personal gains, but for the good of the one and the many. They act for the good of all. In this purview the common misconception that African solidarity or community spirit is a constraint to economic efficiency and development is wild and unjustified. That the Japanese were able to transform their post World War II economic adversity because of their hard work and selfless ethos (embodied in the kyosei i.e., commonality) is now not only widely accepted; it is even admired as a case of economic miracle, by hard core liberal ideologues.    

            In a word, Africa needs a distinctive vision of development. This vision, however, is not to be had in mainstream economic principles and strategies. The basis of such a vision can ultimately be in the agent, in the actor, the protagonist of economic development – the human person. The inalienable right of each person to health, shelter, food, education, work and to a just wage must transcend the economic mandates of efficiency, howsoever valuable this may be.

 

From the law scarcity to abundance: recovering the African phenomenology of community and ownership

 

          I have just noted that sustainable economic development cannot be achieved without a distinctive vision of economics. Critics might object, with good reasons, that there is no such a thing as African economic laws. True. Fair enough. In deed, economic relations in Africa in the broad sense are not governed by classic presuppositions of scarcity and utility maximization. Economic relations are based on the vision of pro-existing and co-acting persons, sharing resources, wealth and possessions. What guides this sharing is not charity, the gift of what spills over from what the individual has maximized, but the abundance of goodness experienced by living and acting with the other, and in creative relationship. The faith in our interconnection allows us to give abundantly from the little we possess. Sharing does not make inefficient homo economicus. On the contrary, we become homo matures by reaching out to others. Thus, possessions have meaning only in the context of relationship, which they serve to build. In this purview, economic development well understood from the African phenomenology of community and ownership is the quality of being in relationship, rather than the accumulation of capital in terms of inanimate GDP.

Resources are bridges rather than ends in themselves. The Alur people of Uganda have a saying: "kech mi uwuru ceri nindo" (that is, "your bother's hunger makes you sleepless"). To be sure the truly honorable person works hard, yields plenty of food, raises many cattle to share with others who have not. Hunger is not new to Africa, but it bites harder today, because we have gradually drifted away from our phenomenology of life, work and community. Economic and nation-building strategies are more than likely than not to forestall, if they do not attend to values germane to African people.

         

From Structural Adjustment Policies to Economic Partnerships with Africa: the Indispensable Role of Solidarity

 

"International solidarity is not an act of charity. It is an act of unity between allies fighting on different terrains towards the same objectives. The foremost of these objectives is to aid the development of humanity to the highest level possible"  (Samora Machel+: 1933- 1986).

 

Our analysis of the socio-economic experience of Africa and the role of multinational/global emphasizes the need for a new mode of thinking about wealth creation as well as more humane economic strategies. The good news is that, the international community is gradually, albeit painstakingly, realising that relationship with Africa, political as well as economic, need to be redefined. The old policy options, or rather, the canons girding these policies, are far from effective. Susan E. Rice, the Assistant Secretary General for African Affairs' remark is note worthy:

 

Democratic governance and respect for human rights are also crucial to the goal of integrating Africa into the global economy. Recent history has taught us that governments which safeguard human rights as well as political and economic freedoms can more effectively establish conditions for sustainable economic growth (Rice, October 29,1998).

 

More pertinent however, is her statement that sustained growth should be patterned on a policy of APartnership for Economic Growth and Opportunity in Africa@. Unquestionably, relationship based on partnership presents, in my estimation, a far more open and respectful agenda for development in Africa. It also offers more meaningful guideline for cooperation between donor agencies and African governments. Unless these agencies consider themselves partners in transforming the society, rather than drivers of wealth creation, their impact on the local community will forever remain suspect.

 

Is the Susan Rice sort of partnership one that will carry the day for meaning social transformation? Not quite, in my estimation. As long as the US trade relations focuses only on opportunity windows for US companies as the program APartnership for Economic Growth and Opportunity in Africa@ insinuates, relations between African nations and foreign donor agencies will remain anything but Anew wine in old wine skin@, which, as Jesus of Nazareth once said, will burst. 

 

The path to the sort of partnership that I believe, will sustain the relation between the West and Africa is one that has been charted by the APartnership Africa@ forum in Stockholm where, in an open forum, the two parties (Africa and Sweden) challenged in a spirit of respect their mutual assumptions about progress, development and cooperation. Sweden, with its economic power realized that its paternalistic attitude towards Africa, based on the belief that she must set the terms and conditions of their relations was disrespectful of their partner, Africa, and did little to foster the sort of mutual trust that is the morum basis of any relationship, let alone commercial relationship. The host nation realised that economic policies glutted on Africa did little to ignite the creativity and vigour that the continent=s leadership needed to become agents of their development but led to a general feeling of infantilism. Moreover, Sweden deprived herself of the opportunity to enrich itself in ways other than economic, from the rich and virgin cultural resources, including caring, community and solidarity.

To sum it up, the partnership that development agencies need in Africa must be based on the following factors:

  1. Subject to subject attitude: There is need for a real change of attitude. No partnership can thrive without respect for the humanity of the other. African nations should not acquiesce in the monetary benefits they receive from donor agencies.
  2.  Being explicit and respecting each other=s values: As partners in development the donor nations have their own sets of expectations which must be explicit, but they need to recognise and respect the values of the nations they deal with.  The Aexpert@ syndrome needs to give way to the spirit of collaboration and solidarity. However, as Samora Machel cautions, international solidarity is not to be perceived of an act of charity. "It is an act of unity between allies fighting on different terrains towards the same objectives. The foremost of these objectives is to aid the development of humanity to the highest level possible".
  3. Transparency of Interest: Even if interests diverge, as they always will, common ground can be found. This requires, openness, something that WTO and some MNCs are not terrible virtuous about.
  4. Clear contractual standards: New contractual relationships should focus on the critical factors of success and mutual benefits and avoid paternalistic conditionalities that bedevils cooperation towards achieving social transformation.

 

  1. Equality of Capacity: Commercial contracts between MNC and Africa, like loans for development, should be based on equality with the latter being availed of all the necessary information pertaining to the contract and implications of the operations. Many African governments feel duped by the donor agencies.

 

In practice, I see the following changes to be made to partnership modalities:

 

  1. Outreach and respect for democratic and human rights processes. If there is to be genuine partnership the donor agencies need to suspend their functionalistic conditionalities to embrace the cause of the poor and disenfranchised people in African countries.
  2. Transparency of Principles: Principles guiding partnerships should be meaningful and clear, and not clouted with legal jargons and obscurities.
  3. Coherence: Lip-service is often paid at high political profile meetings between host representatives and top donor representatives, but often little is done in practice

 

This sort of partnership sits comfortably with a more dynamic understanding of economic relations and echoes well what T.S. Eliots alluded to in The Chorus from the Rock:

 

What life have you if you have not life together?

There is no life that is not in community,

And no community that is not lived in the praise of God

When the stranger says: AWhat is the meaning of this city?

Do you huddle together because you love each other?@

What will you answer? AWe dwell together

To make money from each other@ or AThis is a community@?

           

The time is right for architects of development in Africa to follow the path of love and justice. Christians in particular, can not ignore the prophetic call by Isaiah: "to break unjust fetters, to undo the throngs of the yoke, to let the oppressed go free", share food with the hungry, shelter the homeless poor and clothe the naked (Isaiah 58:6-7).

            At this point, I wish to underline that in my estimation, one group that deserves preferential attention are women. Despite the fact that women have generally occupied a humble position in the African social structure, they have always shown unfailing care for the family. Most Africans, men and women, cherish the role played by their mothers in providing for their education, often at a very high cost to them. It is known in our society that when you give a woman one dollar, you have fed the entire family. Give the man a dollar, you have boozed one mouth for a couple of hours. Educating women, empowering them and providing them with start-up capitals ensures effective development. The remarkable success of the Grameen Bank in Bangladesh is a challenging example. This visionary micro-credit movement, led by a humane economist Yunus, has shown that what the disadvantaged need to take charge of their economic needs are equal opportunities to capital. Economics is not the preserve of men. 

 

The Task Ahead for Christian Churches in Africa

 

The position of the Christian churches in Africa on economic development and nation building sits comfortably with the vision of the gospel, to wit: commitment to the cause of the poor, oppressed and downtrodden. The All Africa Council of Churches, spelled out, in a report published as far back as 1958 emphasized:

 

The church has a duty to bear witness, in humility, to its understanding of the will of God for man in organized society. For that reason, it dare not assume passive, indifferent or neutral attitude towards the crucial political and social issues of the times. It must uphold righteousness, champion the oppressed, and declare the sovereignty of the institution of man.[9]  

 

This declaration not only underscores the position of the Christian churches in Africa. It challenges the faith communities "to champion the oppressed and declare the sovereignty of the institution of man". What does this mean for development? It not only means "a fundamental change of moral attitudes and mental structures of the population, as a whole," as the theologian Laurenti Magesa notes.[10] It challenges the churches to engage themselves through concrete activities in nation building (development) agenda. The various Christian churches have, since pre-independence set, precedence in providing quality education at primary, secondary and tertiary levels in Africa. This needs to be strengthened and re-focused. While education in theology, philosophy and anthropology are significant, they should not be given more than their due. One might argue that it is perfectly congruent with the mission of the church that it refocuses its commitment to education by targeting those disciplines, which obfuscate human longing for justice and equity. Economics, business, politics should not be perceived any more as 'secular' or positive discipline to be handled by experts in civil/national universities. The mystification of these disciples by 'experts' is just as false as is their secularization by Christian institutions of higher lining.

 

The case of Uganda Martyrs University  

 

These veils are falling. It is worth noting that academic institutions in Africa are beginning to rise to these challenges. Uganda Martyrs University, which is the first private university in Africa, has set precedence in this regard, by establishing the first full-fledged degree course in development studies and ethics—well ahead of the national university. It has also established a Business and Management program, targeting health professionals, bankers, insurers, tax and revenue officials. In a bid to achieve its mission of serving the needs of the rural community, it has set up schools of Agriculture and Building Technology, which run rural pilot projects. Our programs, whatever, their nature, embrace Christian, non-partisan moral values. Ethics is not an option/elective but a major course. Conscious of the political and moral dimensions of development, the University has set up, in partnership with the government, a Center for the Eradication, Detection and Education and Study of Fraud. This seeks to support and strengthen the efforts of   the ministry of Ethics and Integrity, Uganda Debt Network and Transparency International to find solutions to the problems of fraud, which arrest development in Africa.

 

The importance of 'fundamental option for the poor'

 

            Education is key to development, to be sure. Admit, we must, that it is not a panacea for all problems of development. The church cannot congratulate itself for providing education and wash its hands clean. She must also challenge the structural forces, which oppress the people, including those manned by political powerhouses, whatever the cost. She must also stay dry shod, by refusing 'false praises', which may be showered on her to domesticate her. While whimsical confrontation is not useful, complicity by church leadership to any form of oppression is a betrayal of her "christic" mission. It is against this that Archbishop Oscar Romero's dictum against the oppressive Nicaraguan regime can be understood: "When I give food to the hungry, they call me a saint. If I ask why they are poor they call me a communist". Thus, the church must unpretentiously but courageously, integrate her salvific and prophetic missions, in her bid to spearhead development and nation building.

 

Conclusion:

 

            The challenge of attaining sustained economic development in Africa includes both the removal of constraints and the setting of people sensitive policies. Developing and strengthening a democratic system is an essential component of the process of development. It calls for partnership and collaboration between donor agencies, national governments, church institutions and local communities. Above all, African development must be built on values, which are at once social, economic, moral and religious. True development must promote capabilities to achieve the desired functionings, as Sen underscores.                            



[1]SEN, Amartya, Development as Freedom, (New York: Alfred A. Knopf, 2000), p.xi

[2] See, for example, Harry G. Johnson, AThe efficiency and Welfare Implications of the International Corporation@, in Charles P. Kindleberger, ed., The International Corporations: A Symposium, (Cambridge: MIT Press, 1970); United Nations Conference on Trade and Development, The Role of Private Enterprise in Investment and Promotion of Exports in Developing Countries, (New York: United Nations); Raphael Kaplinsky, Readings on Multinational Corporations in Kenya, (New York: Oxford University Press, 1978); Herbert K., May, The Effects of United States and Other Foreign Investments in Latin America (New York: Council for Latin America, 1970).

 

[3]See, for example, Harry G. Johnson, AThe efficiency and Welfare Implications of the International Corporation@, in Charles P. Kindleberger, ed., The International Corporations: A Symposium, (Cambridge: MIT Press, 1970); United Nations Conference on Trade and Development, The Role of Private Enterprise in Investment and Promotion of Exports in Developing Countries, (New York: United Nations); Raphael Kaplinsky, Readings on Multinational Corporations in Kenya, (New York: Oxford University Press, 1978); Herbert K., May, The Effects of United States and Other Foreign Investments in Latin America (New York: Council for Latin America, 1970).

[4] Charles Handy, The Hungry Spirit: Beyond Capitalism. A Quest for Purpose in the Modern World, (London: Arrow Books, 1998), p.40.

 

[5] Will Hutton, The State We Are In, (London: Vintage, 1995), p.176.

[6] Charles Handy, The Empty Raincoat: Making Sense of the Future, (London: Hutchinson, 1995), p.4; The Hungry Spirit, p.60.

 

[7]Sen Amartya, Development as Freedom, 36-37.

[8] Pope Paul VI, Octogessima Adveniens, 1971, 46

[9] Quoted by Henry Okullu, Church and State in Nation Building and Human Development, (Nairobi: EAP, 1984), p.71

[10]Laurenti Magesa, "The Theology of Integral Development in Africa", in Agbasiere, J.T & Zabajungu (eds), Church Contribution to Integral Development, (Eldoret: Amecea Gaba Publications Spearhead, 1989), p.119.