Sub-Saharan Africa

Sub-Saharan Africa

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.

Sub-Saharan Africa

Agenda

• Sub-Saharan Africa• History• Regions and Regional Powers

• The Problem(s)• Definitions• Comparative indices

• The Plan• Over the Horizon• Conclusion• Questions

Sub-Saharan Africa

The Bridge

Sub-Saharan Africa

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.ht

ml• http://www.freedomhouse.org/

Sub-Saharan Africa

Sub-Saharan Africa

• 48 countries• Four times size of

USA• 770 million people• 50 % of world’s gold• 40 % of world’s

potential hydro-electric power supply

Sub-Saharan Africa

Sub-Saharan Africa

• 19 countries• Six month

military college• Humanitarian

projects• Lifelong friends

Sub-Saharan Africa

Sub-Saharan Africa

• Colonial History• Anchor States

• South Africa• Nigeria• Kenya• Ethiopia

Sub-Saharan Africa

Sub-Saharan Africa

• Nigeria• 123 million• Africa’s largest

domestic market• GDP $36 billion• Exports: oil

(98.4%), cocoa, rubber

• 250 Ethnic groups

Sub-Saharan Africa

Sub-Saharan Africa

• South Africa• 42 million• GDP $126 billion• Unemployment 23.3%• World’s 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

Sub-Saharan Africa

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

Sub-Saharan Africa

Sub-Saharan Africa

• African Union• Sub-Regional Organizations

Sub-Saharan Africa

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

Sub-Saharan Africa

Sub-Saharan Africa

• Southern African Development Community (SADC)

• 14 members

Sub-Saharan Africa

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)

Sub-Saharan Africa

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

Sub-Saharan Africa

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

Sub-Saharan Africa

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

Sub-Saharan Africa

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

Sub-Saharan Africa

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

Sub-Saharan Africa

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

Sub-Saharan Africa

The Problem(s)• Three layers• Regional• External

• Colonialism• Racism• Lack of Development

• Internal• Political Instability• Corruption• Democratization• Economic Development• Environmental• Racism and Tribal differences

Sub-Saharan Africa

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 internal1 Institute of Peace

and Conflict Studies

Sub-Saharan Africa

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)

Sub-Saharan Africa

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

Sub-Saharan Africa

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

Sub-Saharan Africa

The Plan• Christianity, Commerce, and Civilization• Development

•Environmental•Structural

• Error in Diagnosis•Internal•External

Sub-Saharan Africa

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

Sub-Saharan Africa

The Plan• African Growth and

Opportunity Act (AGOA)• New Partnership for

Africa’s Development (NEPAD)

Sub-Saharan Africa

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

Sub-Saharan Africa

Conclusion

• Key is to develop African solutions to these African problems (Ayittey)

• Evolve from crisis management to development

Sub-Saharan Africa

Questions