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Economic
Emancipation of
Africa
and the Way
Forward
Speech by Tom K
Alweendo
Ladies and Gentlemen:
Let me first thank
the organizers of this event for inviting me as a
speaker. The organizers requested me to speak on the
topic “Economic Emancipation of Africa and the way
forward.” In itself this topic suggests two things,
namely that the African economy is in bondage and that
it can be freed from its bondage.
Talking about
economic emancipation in Africa is problematic in that
Africa is a diverse continent with economies that are
significantly different and thus would require different
diagnosis. There are therefore no simple solutions to
the question of economic emancipation in Africa. What is
certain is that true economic emancipation in Africa
will be realized only when the continent’s economies are
growing at their full potential, which is not the case
currently.
Today there is a
consensus among Africans and non-Africans alike, that
Africa as a continent is far behind other continents in
terms of economic development. Most of the poorest
nations in the world are on the African continent. For
example, Africa’s
GDP accounts for only 1.2 percent of
the world GDP, even when the continent’s population is
11 percent of world population. Average income per
person in Africa stands at about U$450 in comparison
with U$5,000 for
Malaysia. The proportion of the
population that lives in abject poverty is estimated at
46 percent in Africa, compared to about 20 percent in
Latin America and the Caribbean. We are all aware of the
United Nations Millennium Development Goals [MDGs]. One
of these goals is to halve poverty by 2015. Only a few
countries in Sub-Saharan Africa are likely to meet this
target. It is estimated that the continent would need to
grow consistently by about 7 percent per year to be able
to reduce poverty by half as envisaged in the MDGs.
When comparisons
are made between
Africa and
Southeast Asia, the story
is told that in the 1960s Africa and Southeast Asia
were at the same level of economic development. Today,
however, Southeast Asia is far ahead of Africa. Why did
Africa lag behind so much over the last forty years?
What did we neglect to do? There are probably a number
of factors that has contributed to the slow economic
development on the continent, but I would like to
mention only three.
First is the issue
of leadership. Leadership is so important that no
institution or country can prosper without effective
leadership. Effective leadership requires that leaders
are prepared to serve others as opposed to being served
by others; leaders who put others ahead of their own
agendas; leaders who are not too concerned about
self-promotion; leaders who have the courage to take
unpopular but correct decisions. What Martin Luther King
Jr. said about leadership is revealing. He said “The
ultimate measure of a man is not where he stands in
moments of comfort and convenience, but where he stands
at times of challenge and controversy.”
In my view, the
continent has had a number of leaders who have
mismanaged their economies and therefore contributed to
the African economies to be in bondage we find ourselves
today. We have had leaders who were more interested in
accumulating personal wealth at the expense of their
citizens. We have had leaders who promoted divisive
policies that more often than not led to political
instability and civil wars. Most of our African leaders,
at that time, concentrated more on political leadership
at the expense of economic leadership.
It is gratifying,
however, to note that this is changing. If you follow
the agenda of the
African Union today, the African
leaders are well aware that the promotion of economic
development should be a priority. There are also
encouraging signs that show that things are changing for
the better. For example, over the past three years
Africa’s economic growth has averaged 4.4 percent
compared to 3.5 percent in the 1990s. If the continent
is able to sustain these growth rates at this level, we
might see a difference in the high incidence of poverty
on the continent.
The second factor
that in my view has contributed to the lack of economic
development on the continent is the legacy of
colonialism. Most countries on the continent became
independent in the 1960s and 1970s. The unfortunate
thing is, however, that after the
colonial powers
departed, they continued to dominate the African
economies. What is bad about this is not so much the
fact that the departed colonial powers continued to be
involved in the African economies, but rather the fact
that they did so at the expense of the Africans. The
colonial powers continued to exploit the African raw
materials to build their economies at the expense of the
African economies. What is astonishing, though, is the
fact that we allowed them free passage to do so, and we
still do allow them to do so.
To date we still
continue to behave as if we cannot manage our own
economic affairs without the departed colonial powers’
assistance. It is astonishing to know that many an
African country will still prefer a European consultant
to advise on economic matters. This is in spite of the
fact that over the years, Africa has spent enormous
amounts of financial resources on education and
training. Unfortunately, we are still reluctant to
practically demonstrate our skills. We still want to
think that we are less experienced to be experts in
economic matters. As a result, we continually believe
that we need to build new capacities or we need
assistance from the departed colonial powers. What we
forget is that expertise comes with practice and if we
fail to practice what we have learned, we will never
become experts at anything.
I am not advocating
a position where Africa should not have any economic
ties with other continents. On the contrary, what I am
advocating is economic ties with other continents that
are mutually beneficial. For too long Africans have been
hoodwinked by non-Africans where, in our desperation to
gain their acceptance, we agreed to non-beneficial
economic deals. The lesson we must have learned from
these experiences should be that, as a general rule, no
nation helps another nation unless it is in its self
interest. It is therefore time that as Africans we must
start believing that we have the capabilities and the
expertise to run our economic affairs to our benefit.
The third factor I
would like to mention briefly is that of culture and
tradition. While I firmly believe that a nation without
culture and tradition will be a lost nation, we should
also recognize the fact that all cultures do evolve. A
particular culture or tradition that was cultivated at a
particular period of time may hinder our economic
development if we were to continue to practice such a
tradition without any adaptation. For example, I am told
of an African tradition where when a man dies, all his
cattle are slaughtered at the time of his burial. In
most African countries, we still continue to practice
communal land tenure system. These are some of the
practices that have the potential to hold us back to
achieve our full economic potential.
What is then the
way forward to emancipate Africa economically? It can be
done and all what we need to do is to re-focus our mind
on what is important for our economic development and
less on what is convenient. I believe that we can create
the necessary momentum for our economic emancipation if
we continue to address those issues that are important
to Africa’s economic development. Following are some of
the issues that we need to continue to address.
Political stability
is a must. No economic development can take place in an
environment of civil wars and political unrest. When you
have social unrests, scarce resources that are necessary
for economic development are diverted to unproductive
war expenditures. We therefore need to continue to
promote policies that will prevent political
instability. It is heartening to note that political
stability is improving in Africa. Although there are
still a few countries that are facing civil wars, the
situation has significantly improved compared to the
1970s and 1980s.
Macroeconomic
stability is equally important. During the 1980s, Africa
lost a decade in terms of economic growth partly due to
the absence of prudent
macroeconomic policies. High and
volatile inflation rates, unsustainable budget deficits
and balance of payments crises characterized many
countries on our continent during this period.
Therefore, maintaining and further consolidating both
political and economic stability would be an important
ingredient in enhancing economic growth.
Today education is
widely recognized as an important contributor to
economic growth because it leads to the creation of new
knowledge and innovation. Not only is education
important for economic growth, it is probably the most
basic necessity after those that are vital to life
itself, such as food, clothing, and shelter. It is
education that lifts people out of the state of poverty.
The huge gaps in economic opportunities that we witness
on the continent, is mainly as a result of lack of
skills and knowledge. What we must, however, remember is
that it is no longer enough to provide education as a
social service. In today’s world where international
borders are fast crumbling, it is education that will
distinguish winners from losers. As African countries,
we have now to compete in the world market where
competition is so fierce and only the fittest will
survive. It is therefore critical that the education
must be relevant and of high quality.
Not only should the
education be of high quality, but it must also be
practical. The education must lead to a situation where
we are able and ready to use the knowledge we have
acquired and find ingenious ways of addressing the
economic problems facing Africa. This means Africa must
continue to invest in its human capital, while at the
same time creating incentives to keep them on the
continent.
Another important
issue that needs our focus is the quality of our public
institutions. Our public institutions must be
strengthened with the necessary capacity to carry out
their mandates effectively. We must therefore ensure
that we appoint only people with the required
capabilities and willingness to lead our public
institutions. To do otherwise will be wasting our scarce
resources and the continuation of economic bondage. We
should also guard against a situation where a number of
what looks like good policies are developed, except that
no one cares to ensure that such policies are
implemented.
One of the fathers
of modern economics,
Adam Smith, in his seminal
publication, the
Wealth of Nations, observed
already in 1776 that “Africa had been poor from time
immemorial because it lacked the navigable rivers and
natural inlets that afford the benefits of low cost
sea-based trade.” This suggests that a great deal of the
continent’s lack of economic development can be
attributed to a lack of basic infrastructure. This is
especially so in rural Africa where the majority of the
population lives. Lack of basic
infrastructure such as
roads, electricity, and telecommunication are prevailing
conditions in most rural Africa.
History has shown
that in most regions of the world where a take-off in
economic growth and development occurred, the “green
revolution” preceded such a takeoff. This is true of
China, India, and even the USA. I therefore believe that
the African economic take-off will be accelerated by an
expansion of agricultural output. In fact, the
agricultural sector is where Africa’s comparative
advantage lies, provided that the
WTO negotiations
regarding the elimination of farm subsidy by advanced
countries are successfully concluded. Africa will then
need to scale up its investment in the agriculture
sector. For example, African farmers need training; they
need fertilizers at reasonable prices; and they need
market outlets. All these require significant
investment. A related problem is the lack of tradable
land rights in most African countries, especially for
the rural communities. Without ownership of the land,
rural farmers would find it difficult to obtain funding
from financial institutions to improve their production.
I have attempted to
point out what needs to happen for Africa to be
economically independent. Among other things, there is a
need for Africa to continue to invest in its human
capital, physical infrastructure, and institutional
development. The road ahead is not easy, but the
challenges are not without a solution. However, the
situation demands of us a strong vision and effective
leadership. I am convinced that Africa’s economic
problems can only be solved by Africans ourselves, and
for us to succeed we need to focus our attention to what
is important and necessary as opposed to what is
currently convenient. I thank you
22 May 2007
Mr Tom K Alweendo, Governor
of the Bank of Namibia, at the Annual Dr. Sam Nujoma
Public Lecture Series, Windhoek,
Source:
Bis
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Economic
emancipation Africa's new battle-cry
By Southern Times Writer
Windhoek - Economic
emancipation and unity of African countries became the
rallying-cry of African voices as the continent
celebrated Africa Day, a day set aside to commemorate
the independence of the continent from colonial bondage.
Voices from across the continent were unanimous in
calling for increased integration of African countries
and that Africans should benefit from the natural
resources of the continent.
Democratic Republic of Congo (DRC) ambassador to
Namibia, Anastas Kaboba Wa-Kimba, who is also the dean
of African diplomats in Namibia, told The Southern Times
that economic emancipation of the African citizens
should be at the centre of African government's policy
making.
But more importantly, African countries should cherish
the peace existing on the continent and should pursue
policies which enhance integration, Kaboba Wa-Kimba
said.
In a message of hope for the continent, which has over
the past decades been torn by civil strife and
widespread poverty, Kaboba Wa-Kimba said that Africa
should move forward as one adding that there is strength
in numbers.
African governments can take a leaf from the political
and economic gains being enjoyed by such blocs as
European Union (EU). “Africa is being enslaved because of lack of unity, if
we are united, we are much stronger. We need to go
forward; no country can go it alone. This is the time
for solidarity, the time for consolidation of our
unity,” Kaboba Wa-Kimba said.
African government's immediate pre-occupation should be
to ensure that they transform political independence
into economic independence for their citizens.
“The end of political colonisation is one thing, we need
economic independence. That is the new battlefront and
that's where we need to fight as one. Our resources are
not profiting our people. We can produce our minerals
but have we got capacity to transform it into wealth for
our citizens,” Kaboba-Wa-Kimba said.
Most African countries, notably South Africa, Zimbabwe,
Zambia, Namibia among others have come up or are in the
processing or crafting legislation meant to promote
locals' participation in sectors of the economy such as
mining, banking, and finance among others.
Despite being richly endowed in mineral resources,
African economies have little influence on the global
markets. Kaboba Wa-Kimba said African countries could
influence prices of minerals they produce on the global
markets, if they so wish.
Africa has become the last frontier for resource-hungry
investors from across the globe. Despite the continent's
wealth, African governments are found lacking in
assertive approaches to translate the continent's
resources into social benefits for their citizens.
There have been increasing calls to spread economic
benefits beyond elite circles.
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“Africa is potentially
rich but still not rich. We are losing out
on our mineral resources,' Kaboba-Wa-Kimba
said. Zambia's High Commissioner to Namibia
Mavis Muyunda said the onus is on Africans
to develop their own continent and not wait
for outsiders to dictate to them how to run
their affairs.
Muyunda made a clarion call for Africans to
take up the cudgels of working for the
interests of their countries and the
continent in general. “We should get on with
the programme of emancipation of Africans,
consolidate our unity through strengthening
the regional blocs. But more importantly
it's Africans who will develop the
continent,” Muyunda said. She added that
Africa will find its own solutions to its
problems and should be able to use its
current pedestal and transform itself into
an economic giant. “We should not fall
prey to divide and rule tactics of western countries
whose interests have never been to develop this
continent. Our leaders should be able to resist pressure
and act on what is best for African people,” Muyunda
said. |
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28
May 2010
Source:
SouthernTimesAfrica
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Local Content
Policy The path to our Economic Emancipation—by Frank
Agyemang—22 January 2010—In Ghana, we have a number
of entrepreneurs who have proven their worth and
demonstrated that given the opportunity, they can
perform satisfactorily. All that they need is an action
plan of the government to actively engage them. Already
we as a country have missed the opportunity of adopting
a local content policy in the telecommunication and the
mining sectors. The telecommunication sector is fully
taken over by foreigners though we have equally capable
Ghanaians who could have ventured into that field and
raised capital from within to manage similar entities
given the opportunity. Can you imagine the amount of
money that is taken out of this country by the telecom
operators? Unfortunately, we do not seem to trust
ourselves as Ghanaians and we seem to always be
suspicious of our own people.
For now,
Local
Content Policy initiative should be a major priority for
the government looking at the overall economic
implications. Thankfully, the policy initiative is not
only being directed towards the Oil and Gas industry
alone but to other areas of the economy such as the
Power Sector. With respect to the Gas and Oil Sector,
the final draft of the policy was issued in November
last year and all interested parties are waiting for its
completion and legal backings for its implementation
schedules.—GhanaWeb
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The Price of Emancipation
Slave-Ownership, Compensation and British Society at the End
of Slavery
By Nicholas Draper
When colonial slavery
was abolished in 1833 the British government paid £20
million to slave-owners as compensation: the enslaved
received nothing. Drawing on the records of the
Commissioners of Slave Compensation, which represent a
complete census of slave-ownership, this book for the first
time provides a comprehensive analysis of the extent and
importance of absentee slave-ownership and its impact on
British society. Moving away from the historiographical
tradition of isolated case studies, it reveals the extent of
slave-ownership among metropolitan elites, and identifies
concentrations of both rentier and mercantile slave-holders,
tracing their influence in local and national politics, in
business and in institutions such as the Church. In
analysing this permeation of British society by slave-owners
and their success in securing compensation from the state,
the book challenges conventional narratives of abolitionist
Britain and provides a fresh perspective of British society
and politics on the eve of the Victorian era. .—Cambridge
University Press |
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The Race between Education and Technology
by Claudia Goldin and
Lawrence F. Katz
During the 20th century
both technology and education raced forward in the US,
generating massive economic expansion and rising standards
of living. Throughout the century, technological changes
increased the relative demand for skilled labor, while the
rapid expansion of first high schools and then higher
education simultaneously increased the relative supply of
skilled labor. Goldin and Katz carefully examine the
historical and economic forces behind this expansion in
education, extracting crucial evidence from the remarkable
Iowa State Census of 1915, and they argue very plausibly
that the relative demand for skilled labor grew at a fairly
constant rate over the century. They conclude that
"education ran faster" than technology "during the first
half of the century," causing a considerable drop in
economic inequality, but that "technology sprinted ahead of
limping education in the last 30 years," leading to the
recent upsurge in inequality. The rate of return on
educational investments has become, once again, very high.
Why have education levels increased so sluggishly in the
face of these massive rewards? The answers are not entirely
clear, nor are the optimal public policies, but the authors
offer much food for thought. A must read.—R.
M. Whaples (Choice ) |
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Capitalism and the Ideal State
(Marcus Garvey)/ Negroes and the Crisis of Capitalism
(Du Bois)
Slavery and Its Legacies at Emory University: Reflections on History and
Accountability
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posted 3 February 2011
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