D E V E L O P M E N T C E N T R E S T U D I E S CONFLICT AND GROWTH IN AFRICA Vol. 3: Southern Africa BY ANDREW GOUDIE AND BILIN NEYAPTI OECD, 1999. Software: 1987-1996, Acrobat is a trademark of ADOBE. All rights reserved. OECD grants you the right to use one copy of this Program for your personal use only. Unauthorised reproduction, lending, hiring, transmission or distribution of any data or software is prohibited. You must treat the Program and associated materials and any elements thereof like any other copyrighted material. All requests should be made to: Head of Publications Service, OECD Publications Service, 2, rue Andre´-Pascal, 75775 Paris Cedex 16, France. DEVELOPMENT CENTRE STUDIES CONFLICT AND GROWTH IN AFRICA Vol. 3: Southern Africa By Andrew Goudie and Bilin Neyapti DEVELOPMENT CENTRE OF THE ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT Pursuant to Article 1 of the Convention signed in Paris on 14th December 1960, and which came into force on 30th September 1961, the Organisation for Economic Co-operation and Development (OECD) shall promote policies designed: – to achieve the highest sustainable economic growth and employment and a rising standard of living in Member countries, while maintaining financial stability, and thus to contribute to the development of the world economy; – to contribute to sound economic expansion in Member as well as non-member countries in the process of economic development; and – to contribute to the expansion of world trade on a multilateral, non-discriminatory basis in accordance with international obligations. The original Member countries of the OECD are Austria, Belgium, Canada, Denmark, France, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States. The following countries became Members subsequently through accession at the dates indicated hereafter: Japan (28th April 1964), Finland (28th January 1969), Australia (7th June 1971), New Zealand (29th May 1973), Mexico (18th May 1994), the Czech Republic (21st December 1995), Hungary (7th May 1996), Poland (22nd November 1996) and Korea (12th December 1996). The Commission of the European Communities takes part in the work of the OECD (Article 13 of the OECD Convention). The Development Centre of the Organisation for Economic Co-operation and Development was established by decision of the OECD Council on 23rd October 1962 and comprises twenty-three Member countries of the OECD: Austria, Belgium, Canada, the Czech Republic, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, Norway, Poland, Portugal, Spain, Sweden and Switzerland, as well as Argentina and Brazil from March 1994, and Chile since November 1998. The Commission of the European Commu- nities also takes part in the Centre’s Advisory Board. The purpose of the Centre is to bring together the knowledge and experience available in Member countries of both economic development and the formulation and execution of general economic policies; to adapt such knowledge and experience to the actual needs of countries or regions in the process of development and to put the results at the disposal of the countries by appropriate means. The Centre has a special and autonomous position within the OECD which enables it to enjoy scientific independence in the execution of its task. Nevertheless, the Centre can draw upon the experience and knowledge available in the OECD in the development field. Publie´ en franc¸ais sous le titre : CONFLITS ET CROISSANCE EN AFRIQUE Vol. 3 : Afrique australe THE OPINIONS EXPRESSED AND ARGUMENTS EMPLOYED IN THIS PUBLICATION ARE THE SOLE RESPONSIBILITY OF THE AUTHORS AND DO NOT NECESSARILY REFLECT THOSE OF THE OECD OR OF THE GOVERNMENTS OF ITS MEMBER COUNTRIES. * * * OECD 1999 Permission to reproduce a portion of this work for non-commercial purposes or classroom use should be obtained through the Centre franc¸ais d’exploitation du droit de copie (CFC), 20, rue des Grands-Augustins, 75006 Paris, France, Tel. (33-1) 44 07 47 70, Fax (33-1) 46 34 67 19, for every country except the United States. In the United States permission should be obtained through the Copyright Clearance Center, Customer Service, (508)750-8400, 222 Rosewood Drive, Danvers, MA 01923 USA, or CCC Online: http://www.copyright.com/. All other applications for permission to reproduce or translate all or part of this book should be made to OECD Publications, 2, rue Andre´-Pascal, 75775 Paris Cedex 16, France. Foreword This publication is produced in the context of the Development Centre’s work on seeking ways to integrate poorer countries into the world economy. It results specifically from the programme entitled “Political Economy and Development in Africa”. Two other volumes complete the series. 3 SouthernAfrica–Mozambique,Malawi,Zambia,ZimbabweandBotswana TANZANIA CONGO D.R. Maulungu Kasama Soiwezi Pemba Kitwe ZAMBIA Chipata Lilongwe MOZAMBIQUE Mongu Lusaka SongMoALAWI Nampula ANGOLA Kariba Pebane Harare Quelimane Livingstone ZIMBABWE Beira NAMIBIA Maun BulawMaaysovingo Ghanzi Francistown Beitbridge Nova Mambene BOTSWANA Serowe Vilancuios Molepolole Gaborone Inhambane Xai-Xai Kanye Tshabeng Maputo SWAZILAND SOUTH AFRICA Atlantic LESOTHO Indian Ocean Ocean Scale 0 100km 0 100ml K. Smith The boundaries and names shown on this map do not imply official endorsement or acceptance by the OECD. 4 Table of Contents Acknowledgements............................................................................................................ 6 Preface ....................................................................................................................... 7 Executive Summary ........................................................................................................... 9 Chapter 1 An Approach to the Analysis of Conflict...................................................... 15 Annex The Analysis of Public Expenditures............................................................ 35 Chapter 2 Post–Independence Instability in Mozambique............................................ 41 Chapter 3 Political Instability in Post–Independence Zimbabwe ................................. 73 Chapter 4 Political Instability in Zambia: 1964–96...................................................... 95 Chapter 5 Determinants of Political Stability in Botswana: 1966–96 .......................... 125 Chapter 6 Determinants of Political Stability in Malawi: 1964–96.............................. 151 Annex 1Real Rates of Growth and Inflation.............................................................. 174 Annex 2Macroeconomic Indicators............................................................................ 175 Chapter 7 Concluding Remarks..................................................................................... 179 Bibliography....................................................................................................................... 185 5 Acknowledgements The Development Centre would like to express its gratitude to the Government of Switzerland for the financial support given to the project on “Emerging Africa” in the context of which this study was carried out. 6 Preface The seminar organised by the Development Centre in 1994 on growth prospects and the causes of economic stagnation in sub–Saharan Africa underlined the disastrous effects of the conflicts that have occurred in the region since the 1960s. Many economic failures in the region have been due to unrest and civil war. These conclusions led the Centre to undertake a project on the relationship between conflict and growth. This type of analysis is problematic as it calls upon disciplines far removed from economics; the ethnic, religious, linguistic, social and economic factors of conflict are so entangled that it is difficult to obtain a clear idea of the role of economic factors in order to suggest new economic policies liable to enhance the prevention of conflicts. This book is an ambitious and courageous analysis, which examines five different countries, from war–torn Mozambique to peaceful and stable Botswana, over three decades. In the case of Mozambique, the authors show how internal factors of conflict mingled with those from outside, since RENAMO was supported, successively, by Rhodesia and South Africa. They also point out how the FRELIMO government also bears part of the responsibility through misguided socialist policies, the effects of which were compounded by RENAMO operations designed to ruin the economy. The human cost of this conflict was considerable as it resulted in the loss of hundreds of thousands of lives and provoked the displacement of millions of small farmers. At the other end of the scale, Botswana has been able to draw the maximum amount of benefit from its diamond mines by reconciling growth with equity, attaining exceptional economic performance from which the entire population has been able to profit. Political stability in the country resulted from the absence of friction between ethnic or interest groups and from respect for the democratic process. Between these two extremes, Zimbabwe and Zambia (and Malawi to a lesser degree) represent cases of serious tensions and political instability due to ethnic conflict and interest–group rivalry. Minorities have used political power to misappropriate rents, rather than equitably distributing public expenditure. 7 From each country’s history, the reader can begin to understand how political instability establishes itself within a country and interferes with sustained growth. This book describes all the factors in play: armed struggle (with conflict between movements as well as against non–democratic governments); dual socio–economic structures perpetuated after independence; inequality in asset distribution (land, fixed or human capital); injustice in the distribution of public services such as education and health; and the role of foreign actors, as in the case of Mozambique. The authors’ conclusions are of strong interest because they are based on a strict economic analysis of the causes of conflict. The authors find that respect for the democratic process, concern for equality and allowing a free market to develop represent the best means of ensuring the political stability needed so badly in these African societies. Ulrich Hiemenz Director OECD Development Centre September 1999 8
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