Purpose

1. Sub-Saharan Africa

2. Purpose To provide the class an understanding of the interrelation between the historical, political, and economic issues of Sub-Saharan Africa with emphasis on Nigeria, South Africa, and Ghana. Sub-Saharan Africa

3. Agenda • Sub-Saharan Africa • History • Regions and Regional Powers • The Problem(s) • Definitions • Comparative indices • The Plan • Over the Horizon • Conclusion • Questions Sub-Saharan Africa

4. The Bridge Sub-Saharan Africa

5. References • Ayittey, George Africa in Chaos • Van de Walle, Nicholas African Economies and the Politics of Permanent Crisis • Nafziger, E. Wayne African Capitalism • http://www.africa-union.org • http://www.cen-sad.org • http://www.transparency.org/surveys/index.html • http://www.freedomhouse.org/ Sub-Saharan Africa

6. Sub-Saharan Africa • 48 countries • Four times size of USA • 770 million people • 50 % of world’s gold • 40 % of world’s potential hydro-electric power supply Sub-Saharan Africa

7. Sub-Saharan Africa • 19 countries • Six month military college • Humanitarian projects • Lifelong friends Sub-Saharan Africa

8. Sub-Saharan Africa • Colonial History • Anchor States • South Africa • Nigeria • Kenya • Ethiopia Sub-Saharan Africa

9. Sub-Saharan Africa • Nigeria • 123 million • Africa’s largest domestic market • GDP $36 billion • Exports: oil (98.4%), cocoa, rubber • 250 Ethnic groups Sub-Saharan Africa

10. Sub-Saharan Africa • South Africa • 42 million • GDP $126 billion • Unemployment 23.3% • World’s largest producer of gold and platinum • Agriculture and mining 9.7% of GDP • Africans 78% of population • Whites 10% of population • Apartheid abolished in 1991 Sub-Saharan Africa

11. Sub-Saharan Africa • Ghana • 17 million • GDP $5.2 billion • Inflation 23.6% • Exports cocoa, aluminum, gold • Renewed political stability • Key player in UN military missions Sub-Saharan Africa

12. Sub-Saharan Africa • African Union • Sub-Regional Organizations Sub-Saharan Africa

13. Sub-Saharan Africa • African Union (AU) • 53 members • Accelerating the process of integration in the global economy • Address multifaceted social, economic and political problems • Includes Court of Justice, African Bank, Pan-African Parliament Sub-Saharan Africa

14. Sub-Saharan Africa • Southern African Development Community (SADC) • 14 members Sub-Saharan Africa

15. Sub-Saharan Africa • Economic Community of West African States (ECOWAS) • 16 members • Seeks to eliminate tariffs and other obstructions to trade among member states • Establish a common external tariff • Seeks to create a single monetary zone • Military monitoring group (ECOMOG) Sub-Saharan Africa

16. Sub-Saharan Africa • Community of Sahel-Saharan States (CENSAD) • 18 members • Strengthen peace, security, stability, achieve global economic and social development • Promote free movement of persons, capital and interests to Member states Sub-Saharan Africa

17. Sub-Saharan Africa • Common Market for Eastern and Southern Africa(COMESA) • 21 members • main focus is on the formation of a large economic and trading unit • Established a free trade area , that removes all internal trade tariffs and barriers • Introducing a common external tariff structure to deal with all third party trade Sub-Saharan Africa

18. Sub-Saharan Africa • East African Community (EAC) • 3 members • Emphasizes economic co-operation and development • Regional cooperation and integration envisaged is broad based, covering trade to tourism, and from monetary affairs to infrastructure development • Other areas of cooperation include free movement of trade, political matters including defense, security, foreign affairs, legal and judicial affairs Sub-Saharan Africa

19. Sub-Saharan Africa • Intergovernmental Authority on Development(IGAD) • 7 members • Mainly drought and conflict stricken • Foster regional security and sustain economic development • Restoration of peace in Sudan and Somalia remains the primary goal Sub-Saharan Africa

20. Sub-Saharan Africa • Economic Community of Central African States (ECCAS) • 11 Members • Develop capacities to maintain peace, security and stability • Develop physical, economic and monetary integration • Develop a culture of human integration; and • Establish an autonomous financing mechanism for ECCAS Sub-Saharan Africa

21. The Problem(s) The Problem Solving Process • Step 1: Recognize & define problems • Step 2: Gather facts & assumptions • Step 3 : Develop possible solutions • Step 4: Analyze each solution • Step 5: Compare outcome of each solution • Step 6: Select the best solution • Step 7: Follow-up and evaluate Sub-Saharan Africa

22. The Problem(s) • Three layers • Regional • External • Colonialism • Racism • Lack of Development • Internal • Political Instability • Corruption • Democratization • Economic Development • Environmental • Racism and Tribal differences Sub-Saharan Africa

23. The Problem(s) • Political Instability • 14 countries (of 48) in conflict 1 • No state monopoly on use of force • 64 coups from 1963-1968 • Widening gap between states and societies • Wars are internal 1 Institute of Peace and Conflict Studies Sub-Saharan Africa

24. The Problem(s) CountryCPI • Bangladesh 1.3 (133) • Nigeria 1.4 (132) • Ghana 3.3 (70) • India 2.8 (83) • China 3.4 (66) • Brazil 3.9 (54) • Mexico 3.6 (64) • South Africa 4.4 (48) • Hungary 4.8 (40) • Japan 7.0 (21) • US 7.5 (18) • Finland 9.7 (1) • Corruption • Transparency International Corruption Perception Index • Surveys of business, government, and country specialist Sub-Saharan Africa

25. The Problem(s) Type Free PF NF • 1973 35% 18% 47% • 2003 44% 21% 35% • GDP 89% 5% 6% • SSA (73) 2 9 28 • SSA (03) 11 21 16 • Democratization • 192 countries surveyed by Freedom House • Free, partly free, not free • Road to democracy • Freedom • Rule of law • Incentives • Infrastructure • State apparatus Sub-Saharan Africa

26. The Problem(s) CountryPPP • Sierra Leone $480 • Nigeria $830 • Ghana $1980 • India $2450 • China $4260 • Brazil $7450 • Mexico $8770 • South Africa $9510 • Hungary $12570 • Japan $27430 • US $34870 • Economic Development • 54.8 % PPP $1 per day in 2000 1 • 19 of Bottom 20 “Low Income Economies” are African 2 • Van de Walle notes four options • Leave formal economy • Religion • Conflict • Democratic response • 1 Bhalla (2002), Class handout 07 Apr • 2 Class handout, 02 Apr, based on UNDP and World Bank data Sub-Saharan Africa

27. The Plan • Christianity, Commerce, and Civilization • Development • Environmental • Structural • Error in Diagnosis • Internal • External Sub-Saharan Africa

28. The Plan • Development based on political, institutional, intellectual, and economic freedoms • Seek to end conflicts • Control environment • Correlation between economic development and “good governance” • President Bush African Policy Sub-Saharan Africa

29. The Plan • African Growth and Opportunity Act (AGOA) • New Partnership for Africa’s Development (NEPAD) Sub-Saharan Africa

30. Over the Horizon • MBendi potential • Rivers make Africa cheapest power source in the world • Manufacturing center of world • Tourism trade • Increased agricultural output • Post HIV/AIDS population smaller, richer, and more intelligent • Malaria and TB eliminated Sub-Saharan Africa

31. Conclusion • Key is to develop African solutions to these African problems (Ayittey) • Evolve from crisis management to development Sub-Saharan Africa

32. Questions Sub-Saharan Africa