Transcript Slide 1
Findings from two European-led research programmes Part 1: Getting the policies right for economic transformation in Africa David Henley Tracking Development / Leiden University Johns Hopkins – SAIS, Washington DC, 12 March 2012 www.institutions-africa.org 0 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Southeast Asia and Sub-Saharan Africa: GDP per capita (constant 2000 US$), 1960-2009 1400 Southeast Asia 1200 Sub-Saharan Africa 2 1800 Overview 1600 1000 800 600 400 200 www.institutions-africa.org 3 Mass poverty reduction in Southeast Asia, 1963-2008 proportion of population falling under national poverty lines Thailand 1963: 57 per cent 1981: 24 per cent Malaysia 1970: 49 per cent 1984: 18 per cent Indonesia 1970: 60 per cent 1984: 22 per cent Vietnam 1993: 58 per cent 2008: 14 per cent Sources: Jonathan Rigg, Southeast Asia: the human landscape of modernization and development (London: Routledge, 2003), p. 99; Harold Crouch, Government and society in Malaysia (Ithaca: Cornell University Press, 1996), p. 189; BPS-Statistics Indonesia, Bappenas, and UNDP, National human development report 2004: the economics of democracy (Jakarta, 2004), p. 13; www.worldbank.org.vn www.institutions-africa.org Southeast Asia and Sub-Saharan Africa before 1960: colonial rule; agrarian economies with primary product exports since 1960: corruption and weak institutions 4 The challenge of economic transformation Nigeria and Indonesia oil giants Uganda and Cambodia post-conflict countries Tanzania and Vietnam post-socialist countries Kenya and Malaysia politically stable open economies www.institutions-africa.org Indonesia and Nigeria: GDP per capita (constant 2000 USD), 1960-2006 5 1200 Indonesia 1000 Nigeria 800 600 400 Nigeria: no sustained growth 200 Indonesia: sustained growth begins 1967 0 www.institutions-africa.org Three preconditions for sustained growth with mass poverty reduction 6 in Malaysia since 1958, Indonesia since 1967, Vietnam since 1986, and Cambodia since 1999 (?) 1) Macroeconomic stability low inflation, little currency overvaluation 2) Economic freedom for farmers and entrepreneurs 3) Pro-poor public spending on agriculture, public services, and rural infrastructure www.institutions-africa.org 7 Peninsular Malaysia: rice production (thousand tonnes unhusked), 1950-1990 2,000 1,800 1,600 total 1,400 off season (irrigated) 1,200 1,000 800 600 400 200 0 1950* 1955* 1960* 1965* * single agricultural year 1970* 1975** 1980** 1985** 1990* ** five-year moving average Source: P.P. Courtenay, The rice sector of peninsular Malaysia; A rural paradox (Sydney: Allen and Unwin, 1995), p. 154 www.institutions-africa.org Vietnam: rice production (thousand tonnes unhusked), 1975-2000 8 35000 30000 25000 rainy season spring summer total 20000 15000 10000 5000 0 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Sources: General Statistical Office, 2000, Statistical data of Vietnam; Agriculture, forestry and fishery 1975-2000 ([Hanoi:] Statistical Publishing House), p. 190; Kenneth B. Young, Eric J. Wailes, Gail L. Cramer, and Nguyen Tri Khiem, 2002, Vietnam's rice economy: developments and prospects (Fayetteville: Arkansas Agricultural Experiment Station [Research Report 968]), p.9 www.institutions-africa.org 9 Indonesia 'The agricultural sector [...] is the central arena in which all efforts are concentrated and results expected. [...] Agricultural development increases the earnings of the majority of the Indonesian people and thus increases national income. [...] The development of the agricultural sector is expected to open up growth possibilities in other sectors so that an opportunity will be created to combat the backwardness of the Indonesian economy on many fronts.' First Five-Year Development Plan, 1969-74 www.institutions-africa.org 10 The Alliance Government [has] decided to give top priority to the task of improving the lot of the rural inhabitants. [...] The aim [...] will be to provide a sound economic foundation for peasant agriculture, to ensure that the man on the land receives the full reward for his work [...]. In order that the aim may be achieved in the shortest possible time, it is the intention of the Government to marshall all available resources, and to deploy them with such determination and energy as were used to free the country from the menace of Communist terrorism. Tun Abdul Razak, 1959 www.institutions-africa.org 11 Communism as a stimulus for developmentalism • Malayan Emergency 1948-1960 • Indonesian Communist Party contends strongly for power by (mostly) nonviolent means, 1955-1965 • Thailand: armed communist insurgency, 1959-1983 • Vietnam: Doi Moi (renovation) heralds market reforms, 1986 policy Two types of successful developmental state 1. the counter-revolutionary state 2. the liberalizing post-revolutionary state www.institutions-africa.org My life among the farmers of Kemusuk during the difficult times of the nineteen-twenties had aroused in me a distinct feeling of 12 sympathy for them. This feeling was nourished not only by my constant contacts with the farmers, but also by the knowledge and experience that I'd gained from the guidance of Pak Prawirowiharjo, the agricultural officer. I often went with my uncle on his inspection rounds and learned from him not only about the theory of agriculture but also about the practical aspects of farming. Suharto (1921-2008), president of Indonesia 1967-1998 Soeharto, My thoughts, words and deeds: an autobiography as told to G. Dwipayana and Ramadhan K.H. (1991), p. 10 As the stocky Olusegun grew up, his parents became increasingly concerned about his future. His father wanted his children to escape the drudgery that was peasant farming in Africa. Many Egbas had long realized the increasing relevance of Western education [...]. With it, the toil was less, the financial rewards were more, and opportunities were at the beck and call [...] On their way home from the farm one day, Obasanjo said to his son: "Olu, is it this toilsome farming you would want to continue with in life?" [...] "Would you like to learn a trade?" [...] "Yes." "What trade?" "Motor mechanic." [...] "You would not want to go to school?," his father asked. Olusegun Obasanjo (1937-), president of Nigeria 1976-1979 and 19992007 Onukaba Adinoyi Ojo, In the eyes of time: a biography of Olusegun Obasanjo (1997), pp. 35-36 www.institutions-africa.org 13 www.institutions-africa.org 14 Contrasting concepts of development Southeast Asia Sub-Saharan Africa incremental (but potentially rapid) transformative poor people become richer poor countries acquire things rich ones have (technologies, industries, goods, rights, institutions) growth modernization productivity education inclusive elitist oriented toward undesired starting point of development: mass poverty oriented toward desired end point of development: industrial or postindustrial modernity concerned with establishing immediate priorities concerned with making comprehensive plans www.institutions-africa.org 15 Nairobi in 1963 HISTORICAL ORIGINS OF IDEOLOGICAL DIVERGENCE? Dualistic development in Africa • sharp urban-rural antithesis • colonial experience involves sharp break with the past • experience of economic modernity tied up with European domination and cultural transformation (education, religion, language) • elites alienated from masses Nairobi in 1900 www.institutions-africa.org 16 What is to be done? 1. Draw the attention of African decision-makers to the real reasons for Asian developmental success 2. Recognize and support developmentalist tendencies and potentials in Africa according to developing country models, not developed country models www.institutions-africa.org 17 Corruption perceptions index, Southeast Asian and other countries, 2010 and 1980-1985 Denmark New Zealand Singapore Finland Sweden Canada Netherlands Australia Switzerland Norway Ireland Austria Germany Japan United Kingdom Chile Belgium United States France Israel Spain Portugal Taiwan Brunei South Korea Poland Hungary Jordan Czech Republic South Africa 2010 9,3 9,3 9,3 9,2 9,2 8,9 8,8 8,7 8,7 8,6 8 7,9 7,9 7,8 7,6 7,2 7,1 7,1 6,8 6,1 6,1 6 5,8 5,5 5,4 5,3 4,7 4,7 4,6 4,5 1980-1985 8 8,4 8,4 8,1 8 8,4 8,4 8,4 8,4 8,4 8,3 7,4 8,1 7,8 8 6,5 8,3 8,4 8,4 7,3 6,8 4,5 6 3,9 3,6 1,6 5,3 5,1 7,4 Malaysia Turkey Italy Brazil China Colombia Greece Thailand India Egypt Mexico Argentina Bolivia Indonesia Vietnam Ecuador Timor-Leste Uganda Bangladesh Nigeria Philippines Pakistan Cameroon Kenya Cambodia Laos Russia Venezuela Myanmar 2010 4,4 4,4 3,9 3,7 3,5 3,5 3,5 3,5 3,3 3,1 3,1 2,9 2,8 2,8 2,7 2,5 2,5 2,5 2,4 2,4 2,4 2,3 2,2 2,1 2,1 2,1 2,1 2 1,4 1980-1985 6,3 4,1 4,9 4,7 5,1 3,3 4,2 2,4 3,7 1,1 1,9 4,9 0,7 0,2 4,5 0,7 0,8 1 1 1,5 4,6 3,3 5,1 3,2 Sources - 2010: Transparency International Corruption Perceptions Index 2010; 1980-85: Internet Center for Corruption Research (University of Passau), based on surveys by Business International (1980) and the Political Risk Service, East Syracuse, NY (1982, 1984, 1985), adjusted for comparability with the Transparency International CPI www.institutions-africa.org Africa power and politics Developmental regimes in Africa brings together Tracking Development, led by the ASC & KITLV interinstitutes of Leiden University, Netherlands and Africa Power and Politics, led by the Overseas Development Institute, London. The project is supported by the Netherlands Ministry of Foreign Affairs www.institutions-africa.org