Political Economy of Africa Course

Session 1

St. Xavier’s College, Mumbai

January, 2014

Kabira Namit (kabira.namit@gmail.com)

Africa (1900)

Scramble for Africa•At the end of the nineteenth century, European powers staked claims to virtually the entire continent

•Meetings were held in Berlin, Paris and London by European statesmen and diplomats bargaining over the separate spheres of interests they intended to establish there

•Minor hindrance to the negotiation

Terra Incognita•Knowledge of Africa was confined to the coast (notable exceptions)•Maps used to carve up the continent were mostly inaccurate – large areas were described as terra incognita•Boundaries were drawn using straight lines, lines of latitude and longitude or arcs of circle (for nearly half the new frontiers)•Pitfall of such a strategy

Multiple ‘Partitions’ •No consideration was given to the myriad monarchies, chiefdoms and other existing political institutions in Africa

•In some cases, African societies were rent apart: Bakongo were partitioned between French Congo, Belgian Congo and Portuguese Angola; Somaliland was carved up between Britain, Italy and France

•Boundaries cut through 150 groups

Forced Mergers•New colonial territories enclosed hundreds of diverse and independent groups with no common history, culture, language or religion•Nigeria, for example, contained as many as 250 ethnolinguistic groups.•6000 chiefdoms in Belgian Congo•Buganda and Bunyoro, traditional enemies were merged together in Uganda

Pieces on a Chessboard•‘We have been giving away mountains and rivers and lakes to each other, only hindered by the small impediment that we never knew exactly where they were’ Lord, Salisbury, Britain’s Prime Minister

•Heligoland traded by Britain with the Germans for Zanzibar and parts of Northern Nigeria for fishing rights with France

Continued•France exchanged parts of Cameroon with Germany in return for German recognition of the French protectorate over Morocco •At the culmination of the Scramble for Africa, 10,000 African polities had been amalgamated into 40 European colonies and protectorates•Impact on the African growth story•Step into the colonial shoes – next steps

The Enforcers•Enforcement achieved through two ways: Treaty and Conquest•From the coast, officials moved ever deeper in the interior to proclaim the changes agreed in the chancelleries and country mansions of Europe•French claims – 3.75 million square miles•British claims – 2 million square miles

Continued•Resistance was futile•Scores of African rulers who resisted colonial rule died in battle or were executed or sent into exile•Scorched – earth tactics were frequently applied leading to the destruction of thousands of farmsteads, slaughtering of livestock on a massive scale and destroying agrarian economies across Africa

Reshuffle•Legitimacy had been achieved but a reshuffle of territory was required due to ….? •Step into colonial shoes again

German colonies up for grabs•Britain, France, Belgium and the Union of South Africa (a British dominion founded in 1910) shared the spoils of war•Tanganyika – British (the retake of Kili) •South West Africa – South Africa•Rwanda – Burundi – Belgium•Togoland and Cameroon – Britain and France•Jubaland - Italy

A Cursory Glance at the Economic Impact•Initial destruction of arable land•Subsequent political stability with a simple mandate – territories must be financially self – supporting•Administration was kept to a minimum•Education was placed in the hands of Christian missionaries•Economic activity was left to commercial companies

Continued•Main functions of government were limited to maintaining law and order, raising taxation and providing an infrastructure of roads and railways

•No need was felt for more rapid economic development – colonial rule was expected to last for hundreds of years.

The thin white line of control•Colonial imprint was barely noticeable

•In Northern Nigeria, 10 million were ruled by a staff of (?) European administrators and a regiment of the West African Frontier Force consisting of 3,000 African troops under the command of European officers

•By the late 1930s, 20 million people were administered by 400 bureaucrats

Continued•French West Africa comprising of eight territories with a population of 15 million was served by only 385 administrators•British tropical Africa – 43 million people governed by 1,200 administrators•Obvious pitfall of early African colonial model

Rois de la brousse•Lone Administrators became virtually absolute rulers of their domain, functioning as police chief, judge, tax collector and head of labour recruitment•Indirect rule was favoured with African authorities keeping order, collecting tax and supplying labour•Emergence of a new class of intermediaries paid to transmit government orders

New patterns of economic activity•Vast European landholdings established large – scale commercial agriculture•In South Africa, 87 percent of total area was declared white land. In Southern Rhodesia, it was capped at 50 percent•African nations became significant exporters of minerals and agricultural commodities such as groundnuts, palm oil, cotton, coffee, cocoa and sisal

Education and the African elite•Christian missionaries introduced literacy and primary education throughout Africa•A handful of secondary schools were established, becoming the nurseries of a new African elites•The new elites competed for favour from their colonial masters and few (if any) espoused nationalist ambitions (Why?)

Bound together by pretty much nothing, really•‘Since 1914, the British government has been trying to make Nigeria into one country, but the Nigerian people themselves are historically different in their backgrounds, in their religious beliefs and customs and do not show themselves any signs of willingness to unite…Nigerian unity is only a British invention.’ - Abubakar Balewa, first federal PM, Nigeria

‘Nationhood’•We had no nations. We lived in mere geographical expressions. Being Nigerian, for example, was merely a distinctive appellation to distinguish those who lived within the boundaries of Nigeria and those who did not.’-Obafemi Awolowo

-Game Changer and why

The Game Changer•The Second World War brought profound change to Africa. •Showing a purpose and vigour never seen on the continent before, colonial governments built airports, expanded harbours, constructed roads and supply depots•Ever greater production of copper, tin, groundnuts were demanded – any commodity that was useful in the war

WW II•Freetown, Takoradi, Mombasa and Accra became a vital part of the Allied network•Thousands of African troops were recruited for war•From British territories alone, 374,000 Africans served in the British army•Italians were defeated in Ethiopia and Selassie was returned to his throne •African units fought with distinction in India

Continued•In India and Burma, African soldiers learned how nationalist movements there had forced promises of self – government from the British regime even though the population was mainly poor and illiterate•French African troops shipped to France saw the spectacle of a defeated and divided nation

Shift in Geo political power•As European influence declined, the United States and the Soviet Union, competed for ascendancy. Both were anti – colonial powers•FDR insisted that the Atlantic Charter (anyone?) included self – determination for all colonial people.

Post War Restlessness•The aftermath of the war brought frustration and restlessness, in Africa as much as in other parts of the world. •Atlantic Charter was taken as encouragement to demand political rights•Ex- servicemen believed that they had earned the right to demand some share in the government of their own countries but they found few openings.

Continued•Rising discontent over unemployment, high prices, poor housing, low wages and consumer shortages.•Independence was still not even contemplated •‘To give the African colonies their independence would be like giving a child a latch – key, a bank account and a shot – gun.’ – Herbert Morrison, Labour politician

Concessions•Britain decided to introduce new constituencies, providing for elections for a handful of members of legislative councils – expected to satisfy aspirations for a decade•More concerned about white settler demands •France regarded their colonies not as separate territories but as part of ‘la plus grande France’

Continued•Political advancement thus meant giving Africans a higher number of representatives in the French parliament•Belgium regarded Congo as a valuable real estate property and no Congolese had a vote•Portugal dealt with any dissidents by sending them to a penal colony or into exile or jail

Cold War in Tropical Africa•Anxiety over communist plots to achieve a stronghold in Africa led the British government to increase the pace of political reform – legislative and executive power was suddenly possible•The political reform process was later described as ‘laying down a track in front of an oncoming express’

The Gold Coast Experiment•In 1951, Britain was ready to offer Gold Coast a general election for the first time in the country’s history. Also on offer was a national assembly with an African majority and a new executive council who would run internal affairs•Yet, Kwame Nkrumah (Marxian Socialist) wanted ‘Self government now’ ‘We prefer self – government with danger to servitude in tranquility’

Kwame Nkrumah

Special case•Advantages of wealth and attainment unrivalled in tropical Africa•Leading producer of world’s cocoa•Comparatively advanced education system•Largest reservoir of trained personnel•Relatively homogenous•Free of ethnic and religious tension

Nkrumah’s first crisis •To protect cocoa farmers from world market price fluctuations, the British authorities had established a Cocoa Marketing Board which fixed a guaranteed price for famers each year (monopoly)•Once in power, Nkrumah decided to keep the price as low as possible to raise funds for development projects

Genesis of a cliché •The Cocoa Marketing Board soon became notorious for corruption – it was regularly exploited to distribute credit, contracts, commissions, licenses and jobs to Nkrumah’s party supporters•Nkrumah fixed the price for four years (instead of annually) at 33% of world market prices leading to a surge of protests from farmers and a degree of wariness as Ghana marched towards independence

March 6, 1957•Ghana embarked on independence as one of the richest tropical countries in the world with an efficient civil service, an impartial judiciary and a relatively prosperous middle class•Huge foreign currency reserves built up during the 1950s cocoa boom and it also possessed gold, timber and bauxite

Meanwhile, in Egypt•Egypt’s army launched a coup against the ruling monarchy •For the first time since the Persian conquest, 2500 years ago, Egypt was ruled by native Egyptians•Initially promised parliamentary elections but slowly consolidated power•Nasser got 99.8 percent of the vote in a referendum (Why?)

And French Africa in the 50s•The Land of the Setting Sun (Algeria) had descended into an inferno of violence and an endless cycle of repression•As the French government prioritized their claim of Algeria, Tunisia and Morocco were deemed dispensable and achieved independence •The other fourteen territories remained loyal to France

Continued•Political aspirations of the

l’Afrique Noir elite centred on securing for the African population the same rights and privileges enjoyed by metropolitan Frenchmen•No one campaigned for independence•Political debate tended to reflect metropolitan tastes

Thomas Hodgkin, 1954•‘In British West Africa, everyone who is politically conscious is a nationalist of some kind. In French West Africa, there are Catholics and anti- clericals, Communists and Gaullists, Socialists, Syndicalists and Existentialists.’

•Why?

‘Frenchification’•‘With docility we accepted the values of the West; its discursive reason and its techniques. Our ambition was to become photographic negatives of the colonizers or black –skinned Frenchmen. It went even further, for we would have blushed if we could have about our black skin, our frizzled hair, our flat noses, and above all for the values of our traditional civilization. Our people secretly caused us shame’

•Senghor, Senegal

Continued•‘What I fear is that, in the future, under the fatal pressure of African liberation, we might be induced to leave the French orbit. We must stay not only in the French Union but in the French Republic.’

•Instead of independence, political federation between France and Africa was advocated

Pseudo Independence•Independence for small entities like Cote d’Ivoire or Senegal would mean weak economies and few resources•The future lay in large groupings of states working in cooperation with European powers•Mobilization of European resources to help Africa combat poverty, disease and ignorance was the future

Continued•Post WW II, the French Government paid a substantial part of the administrative costs and provided subsidies for export crops•Between 1946 and 1958, more than 70 % of public investment and 30% of annual running costs were financed by France•Vast sums were spent on infrastructure and independence was shunned by l’Afrique noir for ‘lack of positive content’

New Draft Constitution of the Fifth Republic•Houphouet was the principal architect•No mention of any territory’s right to independence•No scope for a looser confederation of states or for an inter – African federation within the community•Referendum held on 28 September 1958•Secession meant the loss of all French assistance, effectively consigning countries to economic ruin and administrative chaos

Guinea stands alone•‘We prefer poverty in freedom to riches in slavery’•- Toure

•All territories voted overwhelmingly for a Franco – African Community except Guinea with a 95 % vote for independence

The Reprisal•All French aid was terminated•All French civil servants were withdrawn•Doctors and nurses were withdrawn•3,000 administrators, teachers, engineers, technicians and businessmen left the country•All property that could be carried was taken away, the rest of it was destroyed

Continued•Government files and records were burned•Offices were stripped of furniture, electric bulbs and telephones•All medical supplies were taken away•Windows of all government offices were smashed

De Gaulle in trouble•The Franco – African community did not last long•African leaders demanded greater control•France eventually decided that independence was only ‘a sort of elementary psychological disposion’•In 1960, all French territories (except?) were launched as independent states while delegates hopped from one country to the other attending the independence ceremonies

Winds of Change•Anti colonial violence in Kenya (Mau Mau rebellion), Nyasaland, Nigeria and other countries led Britain to jettison all long – term plans for independence and accelerate the whole process in their colonies•Tea tent negotiations (Northern Rhodesia)•Meeting a constitution deadline (Uganda)•Independent Africa had arrived

Yes We Can•Expectations were high – a sense of euphoria had been raised to ever greater heights by lavish promises of nationalist politicians pledging to provide education, medical care, employment and land for all •Once freed from colonial rule, Africa was destined for an era of unprecedented progress•Leaders spoke of offering the world at large an inspiration

1950s world economy•In the postwar era, world prices for African commodities – cash crops like cocoa and coffee and mineral products like copper soared to new levels•Between 1945 and 1960, the economies of colonial Africa expanded by between 4 and 6 percent per annum•Groundnut production doubled and cotton production trebled

Trade •Oil at the time cost less than $ 2 per barrel•Public debt was low•Foreign currency reserves in many cases were relatively high•Western governments stood ready to provide substantial amounts of aid and cheap loans (pledges of more than $ 1 billion)•With vast mineral reserves, the prospects for growth seemed enormous

World Bank predictions•“For most of Africa, the economic future before the end of the century can be bright.” - Andrew Kamarck, The Economics of African Development

Rainfall pattern•Good rains fell throughout the 1950s boosting agricultural production•In 1961, Lake Chad and Lake Victoria reached their highest levels in the twentieth century

Blueprints for the future•Generally accepted belief that development and modernization depended on strong government control and direction of the economy, a strategy inherited from the colonial era and encouraged by an influential school of Western development economists•Private sector was considered too weak to make much difference

Continued•“Throughout most of Africa today, you can count the number of effective African businessmen on two hands,” – Barbara Ward, 1962•Only state power and planning could produce the degree of rapid change required to deliver the promises that African leaders had made before independence

Continued•A ‘big push’ was needed to break the mould of poverty and to move Africa towards sustained growth•The imperative of development thus justified greater government control and intervention, an outcome that African leaders actively sought for their own purposes•The answer lied in rapid industrialization

The promise of industrialization•Industrialization, it was thought, would enable African states to break out of their colonial trading patterns, ending their dependence on a narrow range of commodity exports and manufactured imports•Higher productivity, modernizing externalities, urban employment and a rapid engine of economic growth

Import substitution•The need for imported goods would decline•Improve the balance of payments position•Saving foreign exchange•Shift from low productivity agriculture to high productivity manufacturing•‘The circle of poverty can only be broken by a massively planned industrial undertaking’