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Page 1: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

Democracy and Democracy and DevelopmentDevelopment

Nnadozie, Chapter 11Nnadozie, Chapter 11

Page 2: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

1.Defining Democracy1.Defining Democracy

Process Democracy-Process Democracy-involves the election of leaders in involves the election of leaders in free and fair periodic elections of leaders by citizens.free and fair periodic elections of leaders by citizens.

Principled DemocracyPrincipled Democracy: Individual rights protected with : Individual rights protected with majority rule, independent judiciary, protection of majority rule, independent judiciary, protection of individual and minority rights with political competition, individual and minority rights with political competition, and rule of law..and rule of law..

Joseph Schumpeter,Joseph Schumpeter, “ “Democracy is an institutional Democracy is an institutional arrangement of arriving at political decisions in which arrangement of arriving at political decisions in which individuals acquire the power to decide by means of individuals acquire the power to decide by means of competitive struggle for the people’s votecompetitive struggle for the people’s vote.”.”

Page 3: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

1.Measuring Democracy?1.Measuring Democracy?

The most widely used index of democracy is the The most widely used index of democracy is the Freedom House Index (FHI) Freedom House Index (FHI) that ranges from 1 that ranges from 1 to 7, where FHI=1 (completely Free), and FHI=7 to 7, where FHI=1 (completely Free), and FHI=7 (completely authoritarian)(completely authoritarian)

FHI RangesFHI Ranges: : Free= 1-2.5 ,Free= 1-2.5 ,Partly Free= 3-5.5 Partly Free= 3-5.5 Not Free= 5.5-7.00 Not Free= 5.5-7.00

Page 4: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

2.The Relationship Between Development 2.The Relationship Between Development and Democracy: and Democracy: Theories of DemocracyTheories of Democracy

The Impact of Development on Democracy-4 approachesThe Impact of Development on Democracy-4 approaches

1. 1. Modernization TheoryModernization Theory: prosperity leads to emergence of : prosperity leads to emergence of prerequisites to democracyprerequisites to democracy

2. 2. Neo-modernization:Neo-modernization: Regimes with income below $2000 are Regimes with income below $2000 are likely to collapse under economic downturn.likely to collapse under economic downturn.

3. 3. Civil Society TheoryCivil Society Theory: Societal pre-conditions or requirements for : Societal pre-conditions or requirements for democracy. CS includes: labor unions, student groups, chamber of democracy. CS includes: labor unions, student groups, chamber of commerce, teachers union, women’s group, church groups, etc.commerce, teachers union, women’s group, church groups, etc.

.. 4 4 Structural ExplanationStructural Explanation; Based on business cycles. Bourgeoisie ; Based on business cycles. Bourgeoisie

(class of business people) independent of the state tend to be (class of business people) independent of the state tend to be democratic.democratic.

Page 5: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

3.The Legacy of Democracy in 3.The Legacy of Democracy in AfricaAfrica

Two movements toward “democracy” involvesTwo movements toward “democracy” involves: : the de-colonization period of the 1960s, and the wave of the de-colonization period of the 1960s, and the wave of

democratization that began in 1989-following the democratization that began in 1989-following the collapse of Soviet Union and end of the Cold warcollapse of Soviet Union and end of the Cold war

The colonial origin of non-democratic AfricaThe colonial origin of non-democratic Africa A colonial African state had three features: Europeans A colonial African state had three features: Europeans

holding large industries, Asian in the middle engaged in holding large industries, Asian in the middle engaged in wholesale and retail trading, and Africans engaged in wholesale and retail trading, and Africans engaged in farming, market trading, and rudimentary services.farming, market trading, and rudimentary services.

At Independence there was no business class or At Independence there was no business class or bourgeoisie in most African states.bourgeoisie in most African states.

Page 6: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

4.Democratization and Emergence 4.Democratization and Emergence of Representative Democraciesof Representative Democracies

There was some experimentation with governance which There was some experimentation with governance which involved military coups in the 1970s.involved military coups in the 1970s.

Before 1989, only three countries were free based on Before 1989, only three countries were free based on FHI with 1-2.5, (Botswana, Senegal, Mauritius)FHI with 1-2.5, (Botswana, Senegal, Mauritius)

17 partially free, and 25 countries not free.17 partially free, and 25 countries not free.

After 1989, there was a wave of democratization that led After 1989, there was a wave of democratization that led to 8 countries toto 8 countries to be free (Benin, Botswana, Cape be free (Benin, Botswana, Cape Verde, Mali, Mauritius, Namibia, South Africa, Verde, Mali, Mauritius, Namibia, South Africa, 22 are 22 are partially free, and 18 are not free- according FHI partially free, and 18 are not free- according FHI measuremeasure

Page 7: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

5.What is the future of Democracy in Africa?5.What is the future of Democracy in Africa?

Democracy is difficult to sustain and Democracy is difficult to sustain and consolidate in Africa for various reasonsconsolidate in Africa for various reasons

At least two preconditions may be neededAt least two preconditions may be needed1. Accepting political opposition as legitimate.1. Accepting political opposition as legitimate.

2. Having access to wealth and income outside the 2. Having access to wealth and income outside the government. Natural resource wealth such as Oil government. Natural resource wealth such as Oil and Land is state government controlled and and Land is state government controlled and owned. There must be a some private sector owned. There must be a some private sector independent of the government.independent of the government.

Page 8: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

6.Democracy and Development6.Democracy and Development The impact of Democracy and Development is The impact of Democracy and Development is

mixed. This is a “Chicken and egg problem”.mixed. This is a “Chicken and egg problem”.

Empirical results for in 1980s and later show that Empirical results for in 1980s and later show that multiparty democratic states have better multiparty democratic states have better economic policies than autocratic ones. economic policies than autocratic ones.

Among those countries with more freedom the Among those countries with more freedom the more established one’s with democratic more established one’s with democratic institutions over 10 years are better (see table institutions over 10 years are better (see table 11.1, 11.2)11.1, 11.2)

Page 9: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

7.The Recent Economic Performance of 7.The Recent Economic Performance of Democracies in AfricaDemocracies in Africa

Established democracies have outperformed Established democracies have outperformed new democracies.new democracies.

The effect of democracy in Africa has been the The effect of democracy in Africa has been the those that manage to become democracies those that manage to become democracies outperform authoritarian an statesoutperform authoritarian an states

New democracies seem to do at least as well, if New democracies seem to do at least as well, if not better, than autocratic statesnot better, than autocratic states

Page 10: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

8.Concluding Remarks 8.Concluding Remarks

Whether development leads to Democracy or vice versa Whether development leads to Democracy or vice versa is difficult to answer?is difficult to answer?

But, even if democracy does not lead to economic But, even if democracy does not lead to economic growth, growth, freedom to choose, and freedom to have freedom to choose, and freedom to have basic political and civil rights, and other rights are basic political and civil rights, and other rights are desirable in themselvesdesirable in themselves. So, democracy and freedom . So, democracy and freedom is a basic human goal on its own merit.is a basic human goal on its own merit.

In the long-run democracies can achieve development In the long-run democracies can achieve development than autocratic states.than autocratic states.

Page 11: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

Political Instability-Chapter 12Political Instability-Chapter 12

I. IntroductionI. Introduction

II. Institutions and Economic DevelopmentII. Institutions and Economic Development

III. Theoretical IssuesIII. Theoretical Issues

IV. Empirical ResultsIV. Empirical Results

V. Summary and Policy ImplicationsV. Summary and Policy Implications

Page 12: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

I. IntroductionI. Introduction

Economists have Neglected Institution’s (rules) Economists have Neglected Institution’s (rules) and politics in the process of developmentand politics in the process of development

Endogenous Theory recognizes economic policy Endogenous Theory recognizes economic policy is an important determinant of long-run is an important determinant of long-run economic growtheconomic growth

Political Instability (PI) affects economic Political Instability (PI) affects economic development,development,

Investment is endogenously determined by PIInvestment is endogenously determined by PI

Page 13: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

Introduction: Political InstabilityIntroduction: Political Instability

Economic Development is multi-dimensional Economic Development is multi-dimensional concept aimed at improving the living standards concept aimed at improving the living standards and range of choices available the majority of and range of choices available the majority of citizens of a country. citizens of a country. It includes freedom to It includes freedom to choose and freedom from servitude or choose and freedom from servitude or misrule.misrule.

Political stability is necessary but not a sufficient Political stability is necessary but not a sufficient condition for economic developmentcondition for economic development

Page 14: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

II.Institutions and Economic II.Institutions and Economic DevelopmentDevelopment

Institutions are social rules, conventions and Institutions are social rules, conventions and other elements of the structural framework of the other elements of the structural framework of the social and economic interactionsocial and economic interaction

Institutions can be formal like laws, constitutions, Institutions can be formal like laws, constitutions, property rights, and contractsproperty rights, and contracts

Institutions can also be informal such as “social Institutions can also be informal such as “social capital”capital”

Page 15: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

II. Institutions and Development contII. Institutions and Development cont..

Political institutions are central to process Political institutions are central to process of economic development..of economic development..

A stable political system with a strong and A stable political system with a strong and efficient judiciary that provides secure efficient judiciary that provides secure property rights, and enforces the rule of property rights, and enforces the rule of law and predictable is key for economic law and predictable is key for economic progress.. progress..

Page 16: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

Institutions and DevelopmentInstitutions and Development

The political system must be predictable The political system must be predictable and stable that respects the rights of the and stable that respects the rights of the majority participation in a periodic free majority participation in a periodic free elections.elections.

Unstable social system is one that Unstable social system is one that changes in unpredictable way.changes in unpredictable way.

Page 17: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

Concepts of Political InstabilityConcepts of Political Instability Political stability occurs when there is a constitutional Political stability occurs when there is a constitutional

mechanism that ensures the peaceful transfer of power mechanism that ensures the peaceful transfer of power of government.of government.

Three types of PI: elite, communal and mass. Elite PI Three types of PI: elite, communal and mass. Elite PI involves coups d’etat, violence removal of government. involves coups d’etat, violence removal of government. Changes by community groups (ethnic, religious, etc), Changes by community groups (ethnic, religious, etc), and Mass PI is an attack on the national political system and Mass PI is an attack on the national political system to over through government .to over through government .

Regime threatening PI: coups, revolutionsRegime threatening PI: coups, revolutions Non-Regime threatening PI: strikes, riots, crises to get Non-Regime threatening PI: strikes, riots, crises to get

concessions from government.concessions from government.

Page 18: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

C. Studies of PI and Economic C. Studies of PI and Economic DevelopmentDevelopment

PI has a negative and significant impact on PI has a negative and significant impact on physical quality of life in Africa (Mbaku)physical quality of life in Africa (Mbaku)

After accounting for export and investment After accounting for export and investment instability, PI has negative effect on economic instability, PI has negative effect on economic growth in African economies ( Alexander and growth in African economies ( Alexander and HansenHansen

PI weakens government to make it difficult to PI weakens government to make it difficult to make necessary reforms (Edwards and make necessary reforms (Edwards and Tapeline)Tapeline)

Page 19: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

Conceptual/Theoretical IssuesConceptual/Theoretical Issues

Political Instability and Economic GrowthPolitical Instability and Economic Growth

PI affects interaction between individuals and PI affects interaction between individuals and organizations negatively. It increases uncertainty organizations negatively. It increases uncertainty and therefore decreases savings and Private and therefore decreases savings and Private investment.investment.

PI is likely to lead to corruption, proliferation of PI is likely to lead to corruption, proliferation of rules, and regulations, confusion, misallocation rules, and regulations, confusion, misallocation of public resources and bureaucratic inefficiency of public resources and bureaucratic inefficiency

Page 20: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

Policy ImplicationsPolicy Implications

PI affects economic growth directly and indirectly via PI affects economic growth directly and indirectly via reduced investment…reduced investment…

Example, structural adjustment programs of the IMF and Example, structural adjustment programs of the IMF and the World Bank may create short-term hardship that may the World Bank may create short-term hardship that may cause PI and ultimately on negative economic impact on cause PI and ultimately on negative economic impact on economic growth in the short-runeconomic growth in the short-run

On the other failure to carry out the necessary reforms On the other failure to carry out the necessary reforms may create economic stagnation and worsen or prolong may create economic stagnation and worsen or prolong PI.PI.

Page 21: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

Conclusion and Policy Implications contd.Conclusion and Policy Implications contd.

All governments (democratic or autocratic) All governments (democratic or autocratic) should promote economic growth and should promote economic growth and development as a way of securing PIdevelopment as a way of securing PI

Economic stagnation leads to PI which further Economic stagnation leads to PI which further leads to further stagnation and decline.leads to further stagnation and decline.

The growth effect of elite driven PI is likely to be The growth effect of elite driven PI is likely to be narrow and short lived compared to the effects narrow and short lived compared to the effects of a broad measure of PIof a broad measure of PI

Page 22: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

Chapter 13: Inequality and ConflictChapter 13: Inequality and ConflictArticle by Professor Wayne Nafziger of KSUArticle by Professor Wayne Nafziger of KSU

I. Introduction: I. Introduction:

II. The Impact of Stagnation and income declineII. The Impact of Stagnation and income decline

III. Failure of Adjustments to Chronic DeficitsIII. Failure of Adjustments to Chronic Deficits

IV. Failure of Agricultural and Rural DevelopmentIV. Failure of Agricultural and Rural Development

V. Income Inequality- Cases of Nigeria and South AfricaV. Income Inequality- Cases of Nigeria and South Africa

V. Military Centrality and Conflict TraditionV. Military Centrality and Conflict Tradition

VI. Conflict & Competition For Mineral ResourcesVI. Conflict & Competition For Mineral Resources

VII. Conclusion and Policy ImplicationsVII. Conclusion and Policy Implications

Page 23: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

The Political Economy of Inequality and ConflictThe Political Economy of Inequality and Conflictin Africain Africa

20% of African live in countries that suffer from 20% of African live in countries that suffer from state and rebel violence driven conflicts.state and rebel violence driven conflicts.

The World Bank estimates civil war in Africa The World Bank estimates civil war in Africa lowers GDP per capita by 2.2% annuallylowers GDP per capita by 2.2% annually

Political Economy approachPolitical Economy approach takes into takes into account of economics and politics or politicians account of economics and politics or politicians who make decisions as well as interest groups who make decisions as well as interest groups and people who are affected.and people who are affected.

Page 24: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

I. INTRODUCTION cont.I. INTRODUCTION cont.

Nafziger and his co-author have analyzed the Nafziger and his co-author have analyzed the relationship between humanitarian emergencies relationship between humanitarian emergencies and their sources based on annual data from and their sources based on annual data from 1980-1995 for Africa and other LDCs.1980-1995 for Africa and other LDCs.

These analysis shows stagnation and decline in These analysis shows stagnation and decline in GNP, high military expenditure ratio to GNP, a GNP, high military expenditure ratio to GNP, a culture of violent conflict, and slow growth in culture of violent conflict, and slow growth in food production are the primary sources of food production are the primary sources of humanitarian emergencies.humanitarian emergencies.

Page 25: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

II. II. STAGNATION & DECLINE INCOMESSTAGNATION & DECLINE INCOMES

Policies of Governing elites are the root causes of deadly Policies of Governing elites are the root causes of deadly political violence, including genocide and structural political violence, including genocide and structural violence-examples- Sudan, Rwanda, Sierra Leone, etc.violence-examples- Sudan, Rwanda, Sierra Leone, etc.

The increase in interstate and intrastate conflict and The increase in interstate and intrastate conflict and violence and humanitarian emergencies in the last two violence and humanitarian emergencies in the last two decades of the 20decades of the 20thth century are linked to negative century are linked to negative economic growth in the 1970s,1980s and stagnation in economic growth in the 1970s,1980s and stagnation in the 1990s.the 1990s.

Africa GDP Per capita was lower in the late 1990s or Africa GDP Per capita was lower in the late 1990s or today, than at the end of 1960s. today, than at the end of 1960s.

Page 26: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

II. II. STAGNATION & DECLINE INCOMESSTAGNATION & DECLINE INCOMES

In African states such as Nigeria, Sierra Leone, Zaire, In African states such as Nigeria, Sierra Leone, Zaire, and Liberia, etc..economic decline led to Ethnic conflicts and Liberia, etc..economic decline led to Ethnic conflicts and a rise in rebellion in response to predatory rule.and a rise in rebellion in response to predatory rule.

Predatory rulePredatory rule involves regimes that govern through involves regimes that govern through coercion, personality politics, that tend to degrade the coercion, personality politics, that tend to degrade the institutional foundation of the state..They lack democratic institutional foundation of the state..They lack democratic institutions.institutions.

In some predatory states, the ruling elite and their clients In some predatory states, the ruling elite and their clients use their positions and access to plunder the national use their positions and access to plunder the national economy through graft, corruption, and extortion, and economy through graft, corruption, and extortion, and unethical private business practices.unethical private business practices.

Page 27: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

II.Stagnation and Decline incomeII.Stagnation and Decline income

Political Economist Claude Ake of Nigereia writes” Political Economist Claude Ake of Nigereia writes” Instead of being a force for public good, the state in Instead of being a force for public good, the state in Africa tend to be privatized by dominant elite faction..Africa tend to be privatized by dominant elite faction..

The state engages in The state engages in ‘rent-seeking‘rent-seeking’: a behavior to ’: a behavior to obtain private benefit from public action and resourcesobtain private benefit from public action and resources

Stagnation and Negative growth interacted with State Stagnation and Negative growth interacted with State predation in leading to downwards spiral in states such predation in leading to downwards spiral in states such as Angola, Ethiopia, Sudan, Somalia, Liberia, and Zaireas Angola, Ethiopia, Sudan, Somalia, Liberia, and Zaire

Page 28: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

II. Economic Stagnation and decline: II. Economic Stagnation and decline: External FactorsExternal Factors

Worsening international conditions such as long Worsening international conditions such as long term decline in commodity terms of trade, rising trade term decline in commodity terms of trade, rising trade protection, exclusion from global capital flows and flows protection, exclusion from global capital flows and flows of foreign investment, and capital flight has contributed of foreign investment, and capital flight has contributed

to Africa’s poor economic performanceto Africa’s poor economic performance..

The terms of trade for AfricaThe terms of trade for Africa fell by 52% from 1970-92, fell by 52% from 1970-92, 38% from 1980-92, and 38% from 1980-92, and export purchasing powerexport purchasing power fell fell by 4% and 29% in 1970-92 and 1980-92, respectively,by 4% and 29% in 1970-92 and 1980-92, respectively,

Page 29: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

III. Failure of Adjustment To III. Failure of Adjustment To Chronic External DeficitsChronic External Deficits

International economic institutions compel local International economic institutions compel local elites to promote structural adjustments elites to promote structural adjustments programs (SAPS) threatening the positions and programs (SAPS) threatening the positions and contributing increased opportunistic rent seeking contributing increased opportunistic rent seeking and overt repression. and overt repression.

The resulting SAP cuts in spending reduce funds The resulting SAP cuts in spending reduce funds to distribute to clients and requires greater to distribute to clients and requires greater military and police support to remain in power.military and police support to remain in power.

Page 30: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

IV. The Failure of Agricultural and IV. The Failure of Agricultural and Rural DevelopmentRural Development

About 70% of Africans make their make their About 70% of Africans make their make their living from agriculture and related activities …living from agriculture and related activities …

Agriculture contributes to the rest of the Agriculture contributes to the rest of the economy in providing food, foreign exchange, economy in providing food, foreign exchange, labor supply, capital transfer and markets ,labor supply, capital transfer and markets ,

Declining productivity in agriculture is a primary Declining productivity in agriculture is a primary driving force for the general economic decline, driving force for the general economic decline, poverty and food insecurity in many Africa.poverty and food insecurity in many Africa.

Page 31: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

IV. Agriculture and Rural IV. Agriculture and Rural DevelopmentDevelopment

From 1962-89, food output per capita grew From 1962-89, food output per capita grew at the annual rate of 0.5% in developing at the annual rate of 0.5% in developing countries, 0.3% in developing countries, countries, 0.3% in developing countries, and 0.4% overall, and 0.4% overall, but declined by 0.8% but declined by 0.8% in Africa . in Africa .

In other words food production per capita In other words food production per capita increased in all regions of the world except increased in all regions of the world except in Africa as shown in figure 13.1in Africa as shown in figure 13.1

Page 32: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

IV.Agriculture & Rural Stagnation and declineIV.Agriculture & Rural Stagnation and decline

India and Africa both produced 50 million tons of India and Africa both produced 50 million tons of food grains in 1960, in 1988 India produced 150 food grains in 1960, in 1988 India produced 150 million tons (after green revolution technological million tons (after green revolution technological improvements) and Africa produced about 50 improvements) and Africa produced about 50 million or about 1/3 of India in 1988.million or about 1/3 of India in 1988.

India yield per hectare increased by 2.4% per India yield per hectare increased by 2.4% per year, while Africa grew at the rate of 0.1%year, while Africa grew at the rate of 0.1%

Page 33: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

V. Income InequalityV. Income Inequality Policies that lead to high income inequality in Africa are: Policies that lead to high income inequality in Africa are:

Historical legacies of discrimination such as colonialism, Historical legacies of discrimination such as colonialism, apartheid and policy failures.apartheid and policy failures.

Government policies of in land and natural resource use, Government policies of in land and natural resource use, including lack of land reform.including lack of land reform.

Differential access to resources and wealth based on Differential access to resources and wealth based on regional and ethnic bias.regional and ethnic bias.

Growing regional inequality and limited regional Growing regional inequality and limited regional integration integration

Page 34: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

V. V. Income Inequality-Example- NigeriaIncome Inequality-Example- Nigeria

In Nigeria, rising Inequality during oil boom In Nigeria, rising Inequality during oil boom contributed to conflict that led to civil war contributed to conflict that led to civil war or the Biafran War in 1967-70,or the Biafran War in 1967-70,

Nigeria’s oil fueled growth after the war Nigeria’s oil fueled growth after the war rose to 8% per year (1970-79), and the rose to 8% per year (1970-79), and the revenues were stolen by various corrupt revenues were stolen by various corrupt military regimes. military regimes.

Page 35: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

V.Income Inequality: V.Income Inequality: Example-South AfricaExample-South Africa

About 3750 people were killed in internal repression and resistance About 3750 people were killed in internal repression and resistance against Apartheid toward its demise in 1993.against Apartheid toward its demise in 1993.

South Africa’s Gini Coefficient is 0.65 with the top 10% of the South Africa’s Gini Coefficient is 0.65 with the top 10% of the population receiving 30% of national incomepopulation receiving 30% of national income

Life expectancy was 52 for blacks, 62 for Asians and mixed races Life expectancy was 52 for blacks, 62 for Asians and mixed races (“colored people”) and 74 for whites , compared to 54 for Africa as a (“colored people”) and 74 for whites , compared to 54 for Africa as a whole.whole.

Adult Literacy was 67% for non whites, & 85% for whitesAdult Literacy was 67% for non whites, & 85% for whites

Apartheid ended in 1994 with leadership of Mandela & ANC and a Apartheid ended in 1994 with leadership of Mandela & ANC and a pressure by the global anti-apartheid movement. Still the economic pressure by the global anti-apartheid movement. Still the economic inequality persists.inequality persists.

Page 36: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

VI. Military Centrality and ConflictVI. Military Centrality and Conflict

Military was used to create wars and conflicts Military was used to create wars and conflicts under autocratic rulers. Massive wealth and under autocratic rulers. Massive wealth and money was diverted to military, that is often used money was diverted to military, that is often used to violently remove elected governments..to violently remove elected governments..

A culture of violent political culture in states like A culture of violent political culture in states like Rwanda, Burundi, and Congo has resulted in Rwanda, Burundi, and Congo has resulted in massive displacement of population and massive displacement of population and humanitarian emergencies. States such as humanitarian emergencies. States such as Somalia have collapsed due to conflict by war-Somalia have collapsed due to conflict by war-lords following dictatorial rule.lords following dictatorial rule.

Page 37: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

VII. VII. Competition & Conflict Over Minerals and Competition & Conflict Over Minerals and other Natural Resourcesother Natural Resources

The struggle to control mineral and other natural The struggle to control mineral and other natural resources is an important source of conflict in Africa. resources is an important source of conflict in Africa. Examples include Angola, Sierra Leone, Liberia, Congo.Examples include Angola, Sierra Leone, Liberia, Congo.

Here, autocratic rulers and warlords use exclusive Here, autocratic rulers and warlords use exclusive contracts with foreign firms for diamonds, and other contracts with foreign firms for diamonds, and other minerals to extract revenues and collect taxes.minerals to extract revenues and collect taxes.

Examples: Charles Taylor of Liberia in late 1990s, Examples: Charles Taylor of Liberia in late 1990s, Mobutu Seko of Zaire/Congo 1965-97. Mobuto fell to Mobutu Seko of Zaire/Congo 1965-97. Mobuto fell to rebel forces of Laurent Kabila until Kabila was rebel forces of Laurent Kabila until Kabila was assassinated and replaced by his son Joseph in 2001assassinated and replaced by his son Joseph in 2001

Page 38: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

VIII. Conclusion and Policy ImplicationsVIII. Conclusion and Policy Implications

Humanitarian emergencies are associated with high inequality, Humanitarian emergencies are associated with high inequality, conflict, and conflict, and military centralitymilitary centrality (high military exp./GNP), (high military exp./GNP), abundance of mineral resources, and inversely related to GDP per abundance of mineral resources, and inversely related to GDP per capital growth and food output, and external adjustments.capital growth and food output, and external adjustments.

The major changes Africa needs to make are The major changes Africa needs to make are institutional changesinstitutional changes including democratization, legal system reform, effective financial including democratization, legal system reform, effective financial institutions, greater investments on institutions, greater investments on quality educationquality education and and establishment of functioning democratic institutions. These take establishment of functioning democratic institutions. These take time. time.

There is a substantial scope for international and national There is a substantial scope for international and national governments and NGO actors to coordinate long term sustainable governments and NGO actors to coordinate long term sustainable policies to reduce Africa’s vulnerability to conflict and policy driven policies to reduce Africa’s vulnerability to conflict and policy driven humanitarian emergencies…humanitarian emergencies…

Page 39: Democracy and Development Nnadozie, Chapter 11. 1.Defining Democracy  Process Democracy-involves the election of leaders in free and fair periodic elections

Next LecturesNext Lectures

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