State Failure as the Primary Reason for Economic Failure in Sub-Saharan Africa - Coursework Example

Economic Development failure, not geographical disadvantage, is the primary reason for economic failure in sub-Saharan Africa &apos. Comparative Growth Asia and Africa Economic Development Economic failure of African states manifest in the regions continued struggle in the climate of extreme poverty is characterized by the high unemployment rate, poor infrastructure development, and high level of illiteracy, below average or poor nutrition, substandard healthcare system, and high infant mortality rate among other indicators. The region is large and diverse. There are number of countries in Africa is approximated to be roughly forty seven or slightly more as there are some territories that have been disputed. One of the main similarities across the continent is that they were colonized by Europeans. The main colonial powers were Britain, Portuguese, France, Spain, and Belgium (Hydén, 2013). The second similarity was that during 1960to 1980 the African states had embraced importation of substitution of industrialization which consequently resulted into the various states into debt crisis as well as the western countries intervention with the aim of readjusting and structuring the debts through the IMF programs (Ndulu & Chakraborti, 2007). Political contribution to economic failure Despite the great differences between the countries throughout the African continent, there is perceived economic failure of the African continent. The origin of the failed African states is associated with the existence of oppressive regimes, influence of the colonial systems of state governance, and the alliances of the elites during the fight for independence who knew little about modern sovereignty of states. The above can only be analyzed through the description of the origin and evolution of these states, the nature of alliances that aggravated for the independence of these states, the type of strategies the African leaders had adapted and the development of these African states after independence (Lemma, 2001). Few years after African independence, several leaders such as Kwame Nkrumah spread the ideologies of African socialism which were perceived to be the architect of modernization through which new states were expected to emerge. Several decades later, these states have not only been unable to inculcate trust in their citizens but also provide them with the basic services. For instant, during the 1994 genocide in Rwanda the existing political leadership structures were used to perpetuate heinous acts against citizens yet they were supposed to be protected by the government. The other example is that of the Kenyan situation during the year 2008 where the government was perceived to have participated in the extra judicial killings in an attempt to consolidate power for the incumbent leadership (Hydén, 2013). The colonial state also contributed significantly to the failure of the African states. They were autocratic in most states and used both the military and administrative units with the aim of extracting resources for the development of their states with little consideration on the development of the colonized states. They had little concern for the improvement of the living conditions for the lives of the native citizens that they governed. In fact, they practiced racial segregation where the essential amenities were preserved for the colonials. This created mistrust and misgivings between the governors and the governed (Lemma, 2001). For example, the British in most cases employed the indirect rule system where the locals had limitations in dealing with the states. The system was characterized by the autocratic political structures where corruption, violence, and patronage were the ammunitions for maintaining control over the locals. Besides the indirect rule, the colonials mastered the practice of divide and rule method. This is a tactic that the post independent African leadership inherited. The colonial states had exclusively focused on extraction of resources to an extent that little emphasis were laid on infrastructural development such as the healthcare, education and basic social amenities. Belgian Congo, currently known as the Democratic Republic of Congo was one of the culprits. When the Africa states gain the independence they had craved for, they inherited these systems (Ndulu & Chakraborti, 2007). There were African elites who spearheaded the calls for independence. They had been barred by the colonial system to get good jobs and powerful positions in the government. Majority of the locals were not educated and their economic means of livelihood depended entirely on subsistence farming. Occasionally, the elite educated individuals would marshal and mobilize them in aggravation for independence. These elites were nurtured by the political culture of the colonials thus, interestingly; they viewed the governing or political power as an avenue for the access to financial resources and favors. When the elite took over power from the colonial states, they diverted the narratives of their thinking and acquired the act that it was their time to eat. This was done so outrageously that the successive regimes perpetrated the practice of isolation of other groups in the provision and division of national resources. In turn this created divisions among the African communities and each community started the calls for their various leaders to assume leadership of the various nations. The perceptions created were that if a leader from your society acquired power, then that particular community or group had greater percentage of benefiting. The spirit of nationalism at the time of independence subsided into the spirit of individualism (Walton & Seddon, 2011). Most of the African states had not developed a middle class society that would hold the powerful elites accountable. Moreover, creation of accountability bodies proved futile since most of these countries lack not only experts that would keep the government in check but also had little knowledge of administration. Thus towards the end of the colonial domination, there were challenges of unaccountability by the elites. They lacked legitimacy but their strength relied on their status as the only African individuals with administrative skills. Apparently, the various elites that were spearheading the calls for independence were not ready or lack the requisite requirement to scale the continent to higher economic and social prospects (Don, 2010). There were winners and losers at independence. The urban elites were the winners since they had access to both economic wealth and political power. For instant, in Mali, an alliance of the western bourgeois seized power and eliminated their rival elites (traditional landowners) by incorporation of socialist policies. This must have been the origin of the creation of the gap between the rich and the poor as the rate of inequality stated manifesting. Moreover, the taxes imposed on the African locals (mainly subsistence farmers) by the elites were so high. Tanzania as an example imposed a tax of 84% to the farmers’ revenue. The post colonial governments also thwarted the growth of the private economic enterprises or initiatives. The emergence of private entrepreneurs was countered by government elites who were driven by the desire to maintain personal monopoly of the state economy. The only private economic ventures that thrived were those who had allegiances to the elite individuals in the government. The few individual groups who were at the forefront in the fight against the colonial government used their acquired political power positions to enrich themselves and elevate their social status in the society. This in turn became disastrous to the development of the African states (Aryeetey, 2012). In order to consolidate power, the leaders devised some tactics. One of the tactics involved the centralization of the administrative system of governance which proved to be very bureaucratic. They thwarted political competition by the institution of one party political system where the distribution of the resources was channeled through these bureaucratic systems. Throughout Africa, the post colonial government created institutions such as ministries, police force, and government boards among others through patronage (Don, 2010). The other tactic was the use of crude politics where the president and the elites around the presidency did not adhere to the bureaucratic channels created by the government. In fact, they presided over as the heads of the private network or channels of patronage. These practices were characterized by the glaring head of corruption and deterioration of the public institutions. The ideal illustration of such a practice was that of Mobutu where 20% of the fiscal yearly state budget was channeled for his personal use (Rotberg, 2004). In most of the African states, the political power was centralized in the presidency. It was personalized through the elimination of checks and balances hence the various heads of states had the leverage of manipulating the constitution to soot their personal gains (Mbaku, 2007). Agricultural contribution to economic failure The failure of the agricultural production has played a significant role in the economic progress of various African states. Agriculture is one of the most important sectors in the majority of the African states toward the GDP. The African culture has greatly contributed towards the failure of the agricultural sector to elevate their economies. Their methods of farming have left more questions than answers. Majority of their farming techniques are not modernized and are provided in small scale (Kirsten, 2009). Its contribution to the GDP, income and employment are crucial in the economic development of these states. Moreover, the demand for the arable pieces of land within the African continent has been high hence the scenario has led to the displacement of peasant farmers by the few elites in the society. These peasants not only become homeless but also lose their source of income thus increasing the level of abject poverty. This has been aggravated further due to of stringent and obedience to the rule of law (Mbaku, 2007). The dependency theory Scholars developed the dependency theory in an attempt to illuminate some of the factors that have hampered the development of African states. After frustration by the rate at which Africans states were developing especially in the seventies, most African states resorted to seeking financial solutions from the developed countries (their colonial states). The theory accrues underdevelopment to external phenomena. Foreign development bodies have used several channels in attempts to elevate their continents living standards but little success has been realized. Besides, African governments have become complacent in the provision of solutions to challenging economic problems due to overdependence of foreign aid to spruce up economic development (Walton & Seddon, 2011). The impact of diseases on economy Due to poor health care systems in most African countries, diseases such as malaria, HIV and AIDS have grossly affected the economic performance of the continent. HIV and AIDS have affected the economy in various ways such as: the disease (especially in the eighties to the early millennium) the productive individuals in the economy are rendered obsolete in the workforce. The malady has also lead to the increase in the number of orphan children who depend entirely on the individuals in the economic workforce. In addition, the elderly are normally compelled to take care of the orphaned children yet they also are also dependant on the stretched workforce (Humphries, Macartan & Robert, 2005). Comparative economic Growth of Asia and Africa The countries in Asia and Africa are at two vastly different economic stages of development yet at independence these countries were relatively at per. At independence, these countries indicated comparable levels of living standards. Interestingly, in the subsequent decades, the Asian countries have experienced rapid economic growth. Between the early seventies to nineties, the Asian economic growth perplexed the word. There influence in the world trade or global market sky rocketed. While the Asian economy continues to make strides at the international level, the African abject poverty continues to feature and consume the world economy (Khuong & Edward Elgar Publishing, 2013). The diagram below indicates the economic disparities between Europe, Asia and Africa. Figure1. Economic Growth by Region, 1820-1992 Percent (Annual rates) Period Western Europe Western Offshoots Asia Africa World Total 1820-1869 1.o 1.4 0.1 .01 0.9 1870-1912 1.3 1.8 0.6 0.4 1.3 1913-1949 0.9 1.6 0.1 1.0 0.9 1950-1972 3.9 2.4 3.8 2.1 2.9 1973-1992 1.8 1.4 3.2 -0.1 1.2 Source: Maddison (1995, table 3-1): https://repository.library.georgetown.edu/bitstream/handle/10822/555859/etd_jam222.pdf?sequence=4&isAllowed=y Source: https://www.google.com/search?q=Graph+comparing+ASia+and+Africa+economic+growth+%28GDP%29&tbm=isch&imgil=YdXViUSIhdt0DM%253A%253BjxPYxAYKRxgXxM%253Bhttp%25253A%25252F%25252Fen.wikipedia.org%25252Fwiki%25252FEconomic_history_of_India&source=iu&pf=m&fir=YdXViUSIhdt0DM%253A%252CjxPYxAYKRxgXxM%252C_&usg=__-nqnj9e2S-Dfptvafus-P8Vc0D8%3D&biw=1280&bih=636 The figures illuminated in the table above reveal that between 1950 and 1972 when majority of countries in Asia and Africa gained their independence, their GDP were relatively within an equivalent level. However, from 1973 the Africa economy dwindled to the negative as the figures above reveal a great divergence between these two regions. Currently the difference between two regions has widened exponentially in terms of the living standards as they are in different stages of development (United Nations University, 2015). Several studies reveal that the difference in economic growth may have been due to the following factors: technological progress, wealth accumulation, policies related to trade and industry, governance as illuminated in the preamble of the African case, savings, and culture. Despite all these factors contributing in shaping the differences in the economies of Asia and Africa, apparently governance has been the sole driver to the dwindling economic prosperity between the regions (Berendsen, 2013). The ratio between those who were working in Asia to the whole population was very high. In addition, between fifties and sixties, the Asian countries witnessed a drop in the mortality rate. In response, the families in these countries resorted to having less number of children. Perhaps the drop in mortality rate indicated that there were higher chances of survival for children. Consequently, the fertility rate dropped and the quantity of the working age surged. In turn the dependency ratio dropped as thus the productivity of these Asian communities increased (Publishing & Centre, 2013). The other factor to the displayed disparity is the receptiveness towards trade irrespective of the geographical locations. Most Asian countries were open to economic trade which has a considerable influence in the economic performance. As mentioned earlier, the role of government institutions is crucial in the development of the economy. Countries with political stable systems and structure are likely to experience economic growth compared to those that are unstable. Stability of a country is a luring or rather bait that lures investors into the ecological niche of business investments. Political stability provides a serene environment for economic trade. Unlike the African states which were characterized by political coups after independence, most Asian countries were relatively stable politically. Moreover, there were financial aid and development assistance that the developing countries accorded the Asian and African countries. These aids and assistance have had little impact in most African countries due to high levels of corruption, lack of or leniency in the rule of law, and fiscal policies that are unsustainable (Publishing & Centre, 2013). The geographical factors Economies in Africa face some challenges that are unique and specific to the geographical location. The African nations solely rely on agriculture as their main source of livelihood. However, the existence of unfavorable climate has thwarted the agricultural prospects of the continent. Large section of the northern part of Africa is within the tropical deserts. Desert conditions do not favor agricultural growth thus resulting in food insecurity (Chan, 2007). Institutional Development The European colonials in Asia developed created and strengthened institutions (societal) in Asia in comparison to Africa when they were at the helm of leadership. The number of rural locals that were engaged in various administrative and leadership position were less when compared to those in countries such as Singapore at the era of colonial administration. It is for this reason that when the Africans regained their freedom, they inherited systems that were weak coupled with the inadequacy of the experienced civil bureaucrats. On the other hand, most Asian nations did not experience such difficulty (Khuong & Edward Elgar Publishing, 2013). Reference List: Top of Form Bottom of Form Aryeetey, E. (2012). The Oxford companion to the economics of Africa. Oxford: Oxford University Press. Berendsen, B. (2013). Asian tigers, African lions: Comparing the development performance of Southeast Asia and Africa. Boston : Brill Chan, S. (2007). Grasping Africa: A tale of tragedy and achievement. London: I.B. Tauris. Don, N. D. (2010). African foreign policy and diplomacy from antiquity to the 21st century. Santa Barbara, Calif: Praeger Security International. Humphries, Macartan & Robert Bates (2005). Political Institutions and Economic Policies: Lessons from Africa. Cambridge University Press. Hydén, G. (2013). African politics in comparative perspective. New York : Cambridge University Press Khuong, V. M., & Edward Elgar Publishing. (2013). The dynamics of economic growth: Policy insights from comparative analyses in Asia. Cheltenham: Edward Elgar Pub. Ltd. Kirsten, J. (2009). Institutional economics perspectives on African agricultural development. Washington, D.C: International Food Policy Research Institute Lemma W. S., (2001). Global Financial Crisis: Implications for Africa. Journal of African Economies, AERC Supplement 10: 104–40. Mbaku, J. M. (2007). Corruption in Africa: Causes, consequences, and cleanups. Lanham, MD: Lexington Books. McMahon, G., Esfahani, H. S., Squire, L., & Global Development Network. (2009). Diversity in economic growth: Global insights and explanations. Cheltenham, UK: Edward Elgar. Ndulu, B. J., & Chakraborti, L. (2007). Challenges of African growth: Opportunities, constraints, and strategic directions. Washington D.C: World Bank. Publishing, O. E. C. D., & Centre, O. E. C. D. D. (2013). African Economic Outlook 2013: Structural Transformation and Natural Resources. Paris: OECD Publishing. Rotberg, R. I. (2004). When states fail: Causes and consequences. Princeton, N.J: Princeton University Press. United Nations University (2015). Strengthening Africas Participation in the Global Economy. Retrieved on 11th March 2015 from: http://archive.unu.edu/africa/ticad/strengtheningAfricasParticipation.html Walton, J. K., & Seddon, D. (2011). Free Markets and Food Riots: The Politics of Global Adjustment. Hoboken: John Wiley & Sons Read More