M&E-POL 441 Development Strategy

1. M&E-POL 441Development Strategy Lloyd G. Adu Amoah, Ph.D Centre for Asian Studies[UG] Dept of Political Science[UG]

2. OUR FRAMING CONCEPT-IDEAS But, soon rather than later, it is ideas, not vested interests, which are dangerous for good or evil John Maynard Keynes (1935)

3. On Strategy • What other countries have taken three hundred years or more to achieve, a once dependent territory must try to accomplish in a generation if it is to survive-Kwame Nkrumah • You have a strategy until you get hit in the mouth-Mike Tyson • It does not matter whether a cat is black or white so long as it catches the mice-Deng Xiaoping

4. On DEVELOPMENT Strategy • Just what is Development?[Enlightenment Thinkery: Condorcet] • development=national economic growth • the state as its primary agent • Development theory in the main concerned with understanding and explain the role of the state in development and the nature of government-market relations. • Critiques

5. On DEVELOPMENT Strategy • Independence/Liberation and the International Political Context • The Western Liberal Order • The Marxian Pull[Turn of the 20th Century the Bolshevik Revolution] • African and Asian Nations drawn into this.[what questions will arise for these new nations?]

6. On Development Strategy-Politics • Two phases: i) 50s-60s ii) 80s-present • Seek ye first the political kingdom and all other things shall be added onto you. • WHY? Discuss with class.

7. On Development Strategy-Politics • Marcus Garvey • Nationhood is the only means by which modern civilization can completely protect itself. Independence of nationality, independence of government, is the means of protecting not only the individual, but the group. Nationhood is the highest ideal of all peoples.

8. On Development Strategy-Politics • Marcus Garvey • Lagging behind in the van of civilization will not prove our higher abilities. Being subservient to the will and caprice of progressive races will not prove anything superior in us………

9. On Development Strategy-Politics • Marcus Garvey • ……………but when of our own initiative we strike out to build industries, governments, and ultimately empires, then and only then will we as a race prove to our Creator and to man in general that we are fit to survive and capable of shaping our own destiny.

10. On Development Strategy-Politics • Nkrumah[1956] • If we can make a success of our independence, we shall have made an incalculable contribution towards freedom and progress throughout Africa.... • Hints at how politics has instrumental value[pursuit of economic goals]

11. On Development Strategy-Politics • Nkrumah[Confab of Independent African States • 1958[only 8 African states independent then; discussed the liberation/independence of other colonies] • On the agenda the economic question.

12. On Development Strategy-Politics • By the mid-60s many African countries had attained independence. • Confronted were major questions of the political kind: • what kind of political institutions should be in place?[political parties; policy formation institutions; political actors][Recall Fanon] • State power employed for most useful pursuit rapid national development.

13. On Development Strategy-Politics • Confronted were major questions of the political kind. • what is the basis of the legitimacy of such institutions? [leadership term limits vrs president for life

14. On Development Strategy-Politics • By the mid-60s many African countries had attained independence. • Lets turn to Nkrumah’s view on this:

15. On Development Strategy-Politics • Once this freedom is gained, a greater task comes into view. All dependent territories are backward in education, in agriculture and in industry. The economic independence that should follow and maintain political independence demands every effort from the people, a total mobilization of brain and manpower resources. What other countries have taken three hundred years or more to achieve, a once dependent territory must try to accomplish in a generation if it is to survive.

16. On Development Strategy-Politics • Danquah: • “ a good government, a government that would give free scope for all legitimate aspirations to raise our benighted country to the same height of civilization as other more favoured nations have attained.” • Casely-Hayford: “the right to self determination….”

17. On Development Strategy-Politics • Impacts in Africa • Responses to these political questions drew from dominant political ideas of the time • The Cold War implicated in these responses • Political Blocs emerged in Africa • Casablanca Group vrs the Monrovia Group • Proxy Wars and Coup d'état

18. On Development Strategy-Politics • Mao: • ‘catch up with Britain in three years and surpass America in ten years.’ • China, politics and the modern world-from Emperor to republicanism.

19. On Development Strategy-Politics • Invasion: The West, Japan, Russia • Assault of the West-Opium War(Treaty of Nanjing(August 29, 1842) • Treaty of Tianjin(1858) • Allowed Britain to establish an Embassy in Beijing • British Envoy sought to ratify treaty; Chinese attacked; Western forces moved on Beijing • 1860 troubles which Russia sought to mediate through its devious but brilliant envoy Nikolai Ignatief.

20. Treaty of Nanjing(SIGNING)

21. On Development Strategy-Politics • The Self Strengthening Movement • Emerged after second defeat in war and occupation by French and British of Beijing(1860) • Mastery of Western technology • Ignored but cognizant of Western ideas of government and economic organization • Japan defeat of China in 1895 showed weakness of movement • Hundred Day Reform of 1898

22. On Development Strategy-Politics • Enter Dr. Sun Yat-sen • Rebellion: Boxer Rebellion(1900) • The Founding of the Chinese Republic in 1912 (Sun Yat-sen’s National Party) • Hu-Shih and the May Fourth Movement(1919) • Chinese Communist Party Formed-1921 • Nationalists vrs Communists-Supreme State Power

23. On Development Strategy-Politics • Sun Yat-sen dies • Chiang Kai-shek emerges as military strongman of nationalists(sets up government in Nanking) • Civil War: Communist Party of China and Kuomintang(1945-49) • People’s Republic of China-1949 • Singapore, Korea, Japan, Indonesia, India

24. The African Response-80s onwards • Explaining the Contemporary African response • The Era of the Men on Horseback • The Commodity Booms and Bust • The Petroleum Crises and Petro-Dollars • The Lost Decade(1970-1980)

25. The African Response-80s onwards • Changing Global Context • Reagan Admin.(1980) and Thatcher Government(1979) • The Collapse of the Soviet Union • Fall of the Berlin Wall(1989) • Fukuyama: The End of History • Globalization • Retreat of the State • Liberal Democracy

26. The African Response-80s Onwards • Political Conditionalities-Imposed by Africa’s bilateral and multilateral partners • Neo-liberalism’s Entanglement: Towards the Neo-Liberal State

27. The African Response-80s Onwards • Explaining the current African Response- • Government as the problem: The Neo-Liberal State • Marketization • Individualization • Liberalization

28. The Asian Response-80s Onwards • Government as the solution-neo-liberal state solution not accepted • Escaped the impositions-Bilateral/Multilateral • Intelligent response to the following: • Marketization • Individualization • Liberalization

29. On Development Strategy-Politics • Tieing it all TOGETHER • Africa- • Choice of politics closely scrutinized by dominant global powers[50s and 60s]. • Africa-less creative and assertive in responses to the political question in 80s till date.

30. On Development Strategy-Politics • Tieing it all TOGETHER • Asia- • Choice of politics closely scrutinized by dominant global powers[50s and 60s]. • Asia-more creative and assertive in responses to the political question in 80s till date.

31. On Development Strategy-The Economics • Two phases: i) 50s-60s ii) 80s-present

32. On Africa’s Dev. Strategy-The Economics[50s-60s] • Kwame Nkrumah(Autobiography): The economic independence that should follow and maintain political independence demands every effort from the people, a total mobilization of brain and manpower resources. What other countries have taken three hundred years or more to achieve, a once dependent territory must try to accomplish in a generation if it is to survive.

33. On Africa’s Dev. Strategy-The Economics[50s-60s] • Key Question-How to attain this “economic independence.” • Theory and praxis • The national and international context • The dominant economic ideas of the time • Liberal economic ideas-the market • Marxist economic ideas-the state

34. On Africa’s Dev. Strategy-The Economics[50s-60s] • Key Question-How to attain this “economic independence.” • National context • Nkrumah again: • “Capitalism is too complicated for a newly independent nation. Hence the need for a socialistic society[Nkrumah, 1956:vii].”

35. On Africa’s Dev. Strategy-The Economics[50s-60s] • Key Question-How to attain this “economic independence.” • On Theory • Nkrumah again: • “I read Hegel, Karl Marx, Engels, Lenin and Mazzini. The writings of these men did much to influence me in my revolutionary ideas and activities[Nkrumah,1956:37].”

36. On Africa’s Dev. Strategy-The Economics[50s-60s] • Key Question-How to attain this “economic independence.” • On theory/ideas • Nkrumah again: • “……and Karl Marx and Lenin particularly impressed me as I felt sure that their philosophy was capable of solving these problems[Nkrumah,1956:37].”

37. On Africa’s Dev. Strategy-The Economics[50s-60s] • Key Question-How to attain this “economic independence.” • On the national/international Context • “The history of colonialism shows throughout that they[colonies] have been mere pawns in the hands of imperialist powers…..in the race for untapped resources. This has reduced the native population to economic slavery and degradation from which it must free itself.”

38. On Africa’s Dev. Strategy-The Economics[50s-60s] • Key Question-How to attain this “economic independence.” • On theory- • Leading role of the state[institutions and capital] • Advisors-Albert Otto Hirschman, Dudley Seers, Nicholas Kaldor and Joszef Bognar

39. On Africa’s Dev. Strategy-The Economics[50s-60s] • Key Question-How to attain this “economic independence.” • On praxis- • Ghana’s economic sector split into four parts[Nkrumah, 1960: Speech to Parliament] • State Sector, State and Private Sector, Co-operative Sector, Private Enterprise Sector

40. On Africa’s Dev. Strategy-The Economics[50s-60s] • Key Question-How to attain this “economic independence.” • On praxis- • “….in future, the government intends to place far more emphasis on the development of the Ghanaian Co-operatives rather than encourage Ghanaians to start private business enterprises.”-Nkrumah, 1960.

41. On Africa’s Dev. Strategy-The Economics[50s-60s] • Key Question-How to attain this “economic independence.” • On praxis- • Prime Minister Busia Years. • Harvard Development Advisory Services[DAS]

42. On Africa’s Dev. Strategy-The Economics[50s-60s] • Prime Minister Busia Years. • J. H. Frimpong-Ansah, A. E. K. Ashiabor, Dr. Amon-Nikoi, Dr. A. 0. Adu, S. K. Botchway, Dr. Jones Ofori-Atta. Most of them had either worked in the WB/IMF • Tony Killick, Joseph Stern, Michael Roemer, Sieb Miedem, John Odling-Smee, Babu Nicu- lescu [DAS team]

43. On Africa’s Dev. Strategy-The Economics[50s-60s] • Prime Minister Busia Years. • John Odling-Smee’s work • "Healthy Private Sector, Rule of Law, Accountability are Key in Transition to Market Economy,“-September, 11, 2000

44. On Asia’s Dev. Strategy-The Economics[50s-60s] • The Soviet Example • On the eve of 1949: “Follow the path of the Russians-that was their[progressives in China] conclusion.” • 1949-1952-Era of planning towards a centrally planned Chinese economy • “Preparation for Three years and Construction for ten years”(三年准别，十年间使）

45. On Asia’s Dev. Strategy-The Economics[50s-60s] • The Developmental States • Japan • Asian Tigers-Korea, Taiwan, Singapore, Hong Kong • State and Market-Industrialize and build globally competitive firms. • India

46. On Africa’s Dev. Strategy-The Economics[1980s-] • WB/IMF • Washington Consensus • Economic Conditionalities.

47. On Africa’s Dev. Strategy-The Economics[1980s-] • From Economic Recovery Programmes(ERPs)/ Structural Adjustment Programmes(SAPs) to Country Assistance Strategy(CAS) and Growth and Poverty Reduction Papers. • Ghana: From SAP to Shared Growth and Development Agenda

48. On Asia’s Dev. Strategy-The Economics[1980s-] • China’s Economic Experience • Chinese scholar Justin Lin Yifu provides key explanations • Comparative advantage following • The advantage of backwardness

49. On Asia’s Dev. Strategy-The Economics[1980s-] • China’s Economic Experience • Chinese scholar Justin Lin Yifu provides key explanations • Comparative advantage following • Endowment Structure • The advantage of backwardness • The state and transaction costs[information assymetries and technology] • *Information on product markets, industries and technology

50. On Development Strategy-Economics • Tieing it all TOGETHER • Africa-Disillusionment with Washington Consensus • Search for new paradigms • Asia-Justin Yifu Lin’s New Structural Economics