African Economics 50% Africans live in extreme poverty Only 15% in “sustainable environment for economic growth” GDP growth: –1970’s 14%/year: resource exploitation –1980’s –5% year: global recession/debt –1990’s 3%/year:collapse of USSR/cold war conflicts subside Some fast growers, 1999-2003 –Mozambique, Uganda, Angola, Congo-Brazzaville
Human Development Index (HDI) Longevity is measured by life expectancy at birth; Knowledge is measured by a combination of the adult literacy rate and the combined primary, secondary, and tertiary gross enrolment ratio; and Standard of living is measured by GDP per capita (PPP US$).
African Debt $300 Billion Payments are $15 Billion annually –(v. $10 Billion which would go far to solve AIDs epidemic) Origins of debt: –Petrodollars, 1970’s –Structural Adjustment Loans made to dictators not elected by people S. Africa $18 billion used to support apartheid Mobutu in Congo: more aid from US than the rest of Africa— diverted to his Swiss bank accounts Loans have grown: Nigeria’s original $5 Billion now $32 Billion, already paid back $16 Billion HIPC: only a small dent in the numbers
Background to today’s war “Congo Free State” –personal property of King Leopold –Extremely cruel and rapacious –“Heart of Darkness” Belgian colony 1908 until 1960 –Belgians decide to leave along with the rest of the colonial powers –Democratic elections: Patrice Lamumba Uprising in south appealed to USSR for help –US CIA sponsors coup d’etat and installs Joseph Mobutu/supports assassination of Lamumba (“Poisonwood Bible”)
Background to today’s war 1965-1997: Joseph Mobutu Mobutu Sese Seko –Despotic ruler:“Kleptocracy” Built palaces and took wealth while country plunged deeper and deeper into poverty 1997: Laurent Kabila, a rebel fighter, installed by Ugandan and Rwandan troops No better than Mobutu in leadership Among others, Hutus fighting for him, killing ethnic Tutsis civil war –About face: UG and RW try to dislodge him together –But start to back different rebel groups start fighting with each other –Angola, Zimbabwe and Namibia send troops to defend Kabila
Background to today’s war Two issues: –Control of Diamond mines at Mbuji- Mayai –Rwandans want the Hutus back to retaliate Economy tanks, ignored peace agreement (Lusaka accords), Kabila assassinated Son: Joseph Kabila succeeds father –Develops relations with west/US, gets aid, talks about human rights, but opponents fear a repeat of historic US support for Mobutu
Background to today’s war 2002: Peace agreement in Pretoria, SA sort of sticks –Rwanda pulls out 20,000 troops in Oct. 2002 –Seeming peace, then May 2003: trouble flares up in Bunia, eastern Congo –Vacuum of power –Mineral rich: gold, diamonds and coltan –Lendu and Hema French, then UN peacekeeping forces: –Bangladesh, India, Nepal, Pakistan and Uruguay
AIDs and Economic Development for Africa? Africa within global economy: history of external intervention- –Most recent: External Debt and SAPs have: devastated health care gains made during the 1960’s/1970’s -- Reduction in public health care and forced privatization benefiting elites; privatization of water – Debt reductions?
Economic Development for Africa? US Africa Policy: AGOA (Africa Growth and Opportunity Act): US Vision not Africa’s –Imposed “Free Trade” Agenda Open African markets/Minor access to US market US and other rich countries subsidize farmers $1 Billion/day! –Prioritizes oil (Nigeria) and resource extraction –ignores human rights abuses v. healthy open free trading initiatives WTO rules protect pharmaceutical corps, not people- AIDs, GMOs (Genetically Modified Organisms)
African Initiatives NEPAD (New Partnership for African Development): encourage external investment on equal terms –Problems with this, but seems to be addressing some of them “African Model Law for the Protection of the Rights of Local Communities, Farmers and Breeders, and for the Regulation of Access to Biological Resources." African Union?