Home HISTORY CHANGES IN ECONOMIC DEVELOPMENT POLICIES AND STRATEGIES

CHANGES IN ECONOMIC DEVELOPMENT POLICIES AND STRATEGIES

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CHANGES IN ECONOMIC DEVELOPMENT POLICIES AND STRATEGIES IN AFRICA AFTER INDEPENDENCE

These were economic reforms policies and strategies adopted in order to transform their economy from being focused at serving European capitalists objectives to the serving African people.

These were economic and development strategies adopted by the newly independent countries colonialist aimed at maximizing profits and minimizing costs as a result they applied different policies that left African states with economic problem hence the changes in political, social and economic sector was inevitable

FACTORS THAT LED TO CHANGES OF ECONOMIC POLICIES AND STRATEGIES

Ending foreign domination of the agriculture sector. Most sectors of the economy were dominated by the foreign capitalism from Europe and Asia. Large scale agricultural production remained in the hands of the whites. For instance, while settlers owned and farmed on the Kikuyu highland of Kenya where Africans only served as labours. They produced tae, sisal and coffee, tea and sisal along the slopes of mount Meru, Kilimanjaro and Usambara. They controlled large farms in West Kilimanjaro and Rungwe.

To improve the level of industrial development and their ownership. There was low level of development in the industrial sector in the independent states. Industrial sector in the independent states. Industries which existed were under foreign ownership where Africans sold their labour power, most of these industries produced consumable goods and others processed raw materials before being exported to Europe.

Limit foreign domination of the trade sector. The trade sector patterns were inherited from the colonial period. Africans in the free countries did not have ownership or control of commercial activities. Chief processing and trading companies’ were still owned by foreigners or foreign firms some of which dealt with export of raw materials while others imported manufactured goods. For example, Ralli Brothers (Kenya) Ltd.

Restore economic resources to the service of many. Independent African government had, among other objectives, the will to rectify the imbalance of distribution of resources so that they moved from serving a few people to serving more Africans.

Rectify the unfair and exploitative nature of colonial economy. Independent African government had to transform their economic policies in order to eliminate unfair exploitation of the nation’s resources in favour of a few capitalist companies in Europe as well as change the unfair terms of trade which benefited European companies at the expense of African people so that African can benefit from their resources.

Absence of African ownership in financial institutions Africans had ownership of financial institutions such as bank and insurance companies. All the financial institutions were foreign in nature. The banks in Tanzania, Kenya and Uganda were Barclays Bank, Standard Bank as well as National and Grid lays Bank.

Economic disparities within independent states. Different regions of the same country in the new independent states were not at equal levels of economic development. This was because, during colonial rule, areas which were rich in cash crops, minerals or trade opportunity were developed more that those without. For example: in Uganda all southern areas including Buganda and Ankole had more developed road networks, hospitals, electricity and schools while the northern regions remained with little such facilities. In Kenya, the Kikuyu highlands had more social facilities since they produced coffee and were home to many white settlers.

ECONOMIC AND DEVELOPMENT POLICIES AND STRATEGIES ADOPTED IN AFRICA AFTER INDEPENDENCE

AGRICULTURAL DEVELOPMENT POLICIES AND STRATEGIES

These refer to the agricultural strategies and policies adopted by the newly African states in order to transform the Colonial based agriculture to African based. For example Tanzania introduced villagisation in which African peasants were required to shift from scattered areas to form larger socialist villages.

In Ghana Kwame Nkrumah introduced state farms in the production of cocoa for export. While in Kenya the government took the white farmers land and distributed it to Kenyans in order to produce food and cash crops

STRENGTHS OF AGRICULTURAL DEVELOPMENT POLICIES AND STRATEGIES

They aimed at improving production of food and cash crops in independent countries.

They aimed at introducing modern technology in farming. They emphasized and facilitated the use of tractors good seeds and fertilizers in farming in order to boost output.

In some countries like Tanzania; they introduced collective farming whereby the villagers could work together on their farms for large scale production.

The policies wanted to grant land ownership to the African peasant through nationalization of formal colonial plantations.

WEAKNESSES OF AGRICULTURAL DEVELOPMENT POLICIES AND STRATEGIES

Poor production of food; they did not achieve production of adequate food crops in most parts of independent states. The emergence of hunger became a problem for many years.

Low level of technology; due to dependence on the hand hoe and human labour in executing farm activities, the agricultural sector has continued to perform poorly in terms of quantity and quality of production.

Deterioration of agriculture involvement; since the majority of Africans continue to practice peasant production using hand hoes and other labour intensive implements, agriculture has continued to be viewed as a tedious work and has discourage youths and other people from practicing in favour of employment and industrial works.

Quality of produce; due to technology, inadequate technical support and scarcity of quality seeds, the quality of both food and cash crops has remained low.

CONTRIBUTION OF AGRICULTURAL DEVELOPMENT POLICIES AND STRATEGIES

They have led to establishment of crop research institutes such as Tanzania Coffee Research Institute (TACRI) which undertake research on better seeds.

They have improved availability of good seeds and technology support for farmers through seed research centre in various places in the country.

Ownership of land has gone to Africans through their government. In Tanzania for example, all land belong to the president who leases it to citizens and foreigners are not allowed to own land. The implication of this is that the president has the power to take land that is not appropriately utilized and allocate it for better use.

They have led to establishment of crop boards which regulate price of cash crops and market cash crops in the world market. Such boards include the cotton board and the Tanzania coffee board.

Agricultural development policies through boards have fought for better prices and terms in the world market. They have also defended the interests of the farmer by eliminating policies which suppress the farmers.

INTRODUCTION OF INDUSTRIAL SECTOR DEVELOPMENT POLICIES AND STRATEGIES

These were the policies and strategies which aimed at government control of the existing industries for the benefit of their people. For example, In Tanzania the government nationalized food processing industries such as: Tanzania Millers, Chande Industries, and Pure Food Products Ltd and Associated and Associated Traders Ltd (Kwanza).

The government also became the shareholders in some industries like Kilimanjaro Brewery Limited, Tanzania Breweries limited, British American Tobacco Company, Bata Shoe Company and Tanganyika Metal Box Company.

STRENGTHS OF INDUSTRIAL SECTOR DEVELOPMENT POLICIES AND STRATEGIES

Nationalization of industries eliminated or reduced foreign ownership of the industries in Africa after independence.

More industries were built in the newly independent states under partnership with other nations outside Africa. For instance, Urafiki Textile Mill was constructed by Tanzanian government in collaboration with China.

They increased production of consumable goods in the newly independent states.

They gave employment to Tanzanians.

They reduced the level of dependence of importation for all machines and tools.

WEAKNESSES OF INDUSTRIAL SECTOR DEVELOPMENT POLICIES AND STRATEGIES

Most of the industries remained consumer goods producers. There was no construction of large industries which produced producer goods.

Many industries in the ex – colonies were mis – allocated in Africa. Some clothing industries for example were located in areas where there was no production of cotton. Urafiki textile in Dar es Salaam would have been constructed in Mwanza because cotton produced in Mwanza and Shinyanga rather than being located in Dar es Salaam.

Industries heavily depended on technology from western capitalist nations and other parts of the world. Africans failed to create custom machines using their own technology.

Fund mismanagement led to the collapse of many industries as funds, were misappropriated to activities which did not improve production or development of the industries.

Lack of sustainability; most industries eventually failed to operate sustainably due to lack of strategies and appropriate management experience. As a result the cost of maintaining the industries kept being burdensome to the government.

Lack of skills was another weakness in the industrial sector: post African states lacked enough experts like technicians, engineers and other personnel to work in the established industries.

Inadequate fund: African governments lacked enough funds to establish and maintain industries to sustainability.

CONTRIBUTION OF INDUSTRIAL SECTOR DEVELOPMENT POLICIES AND STRATEGIES

The policies and strategies increased industrialization after independence. Many new industries were constructed by the independent governments.

Foreign dominations of the industrial sector was reduced through nationalization of previously, foreign owned industries.

Policies and strategies in the industrial sector promoted economic independence of Africa and helped to boost some economic development in post African states.

TRADE SECTOR DEVELOPMENT POLICIES AND STRATEGIES

These were the policies which were introduced took over import and export business from foreign private companies to state owned companies in several countries. In Tanzania, all companies like Smith Mackenzie, International Trading and Credit Company of Tanganyika were nationalized.

They were put under State Trading Corporation (STC) after Arusha Declaration on 1967. In Kenya the government took private businesses from the Asians and gave them to private Africans. In Uganda Idd  Amin’s government ordered the Asian traders to move out of the country and their businesses were given to senior soldiers in Idd Amin’s government.

STRENGTHS OF TRADE SECTOR DEVELOPMENT POLICIES AND STRATEGIES

They removed foreign domination of the trade sector after independence.

The state owned commercial companies helped in the distribution of consumer goods in the rural and urban areas.

WEAKNESSES OF THE TRADE DEVELOPMENT POLICIES AND STRATEGIES

Some policies and strategies for the trade in several countries favored the allies of the leaders. The companies which were nationalized later were given to those who protected the interests of the leaders.

There was inadequate distribution of consumer goods in the rural areas. Sugar, salt, soaps, cooking oil and kerosene were inadequately supplied to the people living in the rural areas.

They did not provide assistant programmers to the Africans to acquire the financial capital to establish trading activities with collaboration from their government.

CONTRIBUTION OF TRADE SECTOR DEVELOPMENT POLICIES AND STRATEGIES

They provide opportunities for African ownership of the trade sector through nationalization.

The policies helped in the acquisition of imported goods that were needed for national development.

They helped the new government to get income from the state owned companies to finance development infrastructure like constructions of schools and hospitals.

TRANSPORT AND COMMUNICATION POLICIES AND STRATEGIES

The newly independent states took efforts to build physical infrastructures like roads, railways in order to facilitate easy transportation and communications. They nationalized former foreign transport and communication companies. For example, in Tanzania the railway lines formed the Tanzania Railways Corporation that offer transport services from the interior to the coast.

STRENGTHS OF TRANSPORT AND COMMUNICATION DEVELOPMENT POLICIES AND STRATEGIES

They constructed new transport network and telecommunication in areas which did not have goods road, railways and telephones.

They contributed to facilitating the movement of farmers and traders to the markets.

They helped the government to nationalize the foreign transport and communication companies.

WEAKNESSES OF TRANSPORT AND COMMUNICATION DEVELOPMENT POLICIES AND STRATEGIES

They helped in the import of foreign goods from and Europe and eventually those goods which were imported destroyed the markets of the African goods.

Most of the transport and communication networks in the rural areas were not developed by the policies and strategies.

Transport and communication patterns ran from the coast to the interior like in the period of colonial rule. For example, the railways stretched from the coast to the interior reflecting the colonial transport and communication system. The policies and strategies failed to construct new railway line to join areas after independence.

 CONTRIBUTION OF TRANSPORT AND COMMUNICATION IN THE NEWLY INDEPENDENT STATES

Transport and communication policies and strategies facilitated movement and communication among the people of the independent states. For instance, the roads and railways helped to move towards the industries and farms to seek labour. Telephones lines exchanged information between the people of rural and urban areas.

Transport and communication policies and strategies helped to connect the interior and the coastal areas along the oceans.

They contributed to the growth of the trade sector, industries, mining and agriculture. These sectors depended on the transport system to transport system to labour and the products to the consumers.

MINERAL SECTOR DEVELOPMENT AND STRATEGIES

The independent states nationalized the minerals sector and introduced state owned companies in the sectors. Example, The State Mining Corporation (STAMICO), In Nigeria also formed the Nigerian National Petroleum Corporation (NNPC) after her independence. They took oil share from the British Petroleum up to 55 percent by 1974.

STRENGTHS OF THE MINERAL SECTOR DEVELOPMENT POLICIES AND STRATEGIES

They provided opportunities to the government to own the mining sector on behalf of the people. Foreign domination of the mining sector ended with the introduction of the policies and strategies in the sector.

The government accumulated revenue from the implementation of the mineral sector development policies and strategies. The government spent the revenue from minerals to provide social services to the people.

WEAKNESSES OF THE MINERAL DEVELOPMENT POLICIES AND STRATEGIES

The policies and strategies failed to carry out effective extraction of the mineral reserves in the independent states

They did not innovate Africans technology that would have helped in the extraction of different types of mineral. In most cases the mining depended on imported of foreign technology

The policies and strategies did not invest income in the development of skills among majority of the indigenous people. Skilled labour was monopolized by the foreigners from Europe.

There was comprise in the nationalization of mining companies in the mineral sector consequently, the mining activities such as gold, diamond and copper extractions were dominated by the foreign companies.

CONTRIBUTION OF THE MINERAL SECTOR DEVELOPMENT POLICIES AND STRATEGIES

They increased sources of the government revenue in the independence period.

The policies and strategies contributed to the reduction of unemployment among the people of the independent states. Many Africans were employed in the state mining people of the independent states. Many Africans were employed in the state mining companies which controlled all the activities in the extraction of gold, diamond, oil and gas.

They led to the establishment and provision of goods services to the specific areas. For example, South Africa has better railways, roads and hospitals in Kimberley and Witwatersrand.

The sector led to heavy investment in financial institutions such as banked and insurance companies in South Africa and many parts of Africa.

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