The International Politics of Structural Adjustment in Sub- Saharan Africa 1983-1990

510 Pages·2014·11.04 MB·English

The International Politics of Structural Adjustment in Sub-
Saharan Africa 1983-1990; With Special Reference to Ghana and
Nigeria.
By
Istifanus Sonsare Zabadi
Thesis Submitted to the University of London in fulfilment of
the requirements for the degree of Doctor of Philosophy in the
Faculty of Economics.
October 1991
(London School of Economics and Political Science)
UMI Number: U062760
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ABSTRACT
Sub-Saharan Africa entered the 1980s faced with a crisis of
unprecendented proportions. The economies of the region which
were already in decline by the late 1970s, were in danger of
collapse. The severity of the crisis was also reflected in
rising indebtedness, social decay and political instability. To
tackle it, African leaders met at an extraordinary economic
summit in Lagos in 1980 and adopted a common strategy which
became known as. the Lagos Plan of Action. The crisis in Sub-
Saharan Africa/part of a general world-wide economic recession
stemming from a period of economic decline in the leading
industrial economies. As a result, the leading industrialised
countries and international institutions designed strategies to
tackle the crisis both at the global level and in the
developing countries such as those in Sub-Saharan Africa. For
Africa, the strategy adopted by the World Bank and the IMF was
that of structural adjustment.
The orthodox approach of the World Bank generated controversy
as to its suitability to the African situation. This
disagreement was a reflection of conflicting political
interests as well as power relations both internationally, and
within African states. This thesis analyses the impact of the
politics of structural adjustment programmes in Africa, with
special reference to Ghana and Nigeria between 1983-1990. The
arguement is that orthodox structural adjustment has failed to
reverse the decline in Africa largely because of continuing
disagreement between African governments and international
institutions over the content and direction of adjustment.
The study is presented over eight chapters. The introductory
chapter sets the agenda. Chapter one covers the international
dimension of the African crisis, while chapter two looks at the
internal dimension. Chapter three contains a detailed analysis
of the international politics of structural adjustment.
Chapters four and five discuss the adjustment programme in
Ghana and its impact on the country’s political economy. The
Nigerian experience is similarly examined in chapters six and
seven. The conclusion, chapter eight, addresses the issues
behind the failure of orthodox adjustment in Africa and makes
recommendations•
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ACKNOWLEDGEMENTS
I wish to express my profound gratitude to my supervisor,
Professor James Mayall, for his encouragement and support
throughout while this thesis was being written. His comments on
the drafts were very valuable and helpful in getting the thesis
completed in time. Iam also grateful to members of the Africa
Seminar group at the London School of Economics, for their
input. My gratitude must also go to the Director and staff of
the Institute For African Alternatives, and the Librarian and
staff of the Commonwealth Secretariat, for allowing me to use
their libraries.
Many people have helped me in one way or another during the
research for this thesis. However, I would like to thank, for
their support and encouragement: Bill and Magaret Stedeford,
Sue Sobczak, Naomi and Stephen Emmerson, Sule and Mercy Bassi,
Rhoda B. Nyaku, Leah Kla, Stephen A. Sati, Patrick and Rosalind
Ataman, John and Sarah Nengel, and the Yapp family.
Finally, I thank my daughters Kaahassa and Teyang, and my son
Sonsare for bearing with the difficult circumstances imposed on
them during this study. Special thanks and my love to my wife
Mairo for her love, support, loyalty and dedication to the
family which was exceptional. Iam greatly indebted to her.
This study was made possible by a Commonwealth Scholarship, and
Iam grateful to the Commission. However, Iam solely responsible
for the views expressed in this work. To God be the glory!
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DEDICATION
To the memory of my mother, Bamsah Victoria Zabadi
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TABLE OF CONTENTS
Page
Abstract --------1------------------------------------- 2
Acknowledgements ------------------------------------ 3
Dedication ------------------------------------------- 4
9
List of Tables ---------------------------------------
List of Abbreviations ------------------------------- 13
Introduction ----------------------------------------- 16
Chapter 1. THE AFRICAN CRISIS, THE INTERNATIONAL
ECONOMY AND STRUCTURAL ADJUSTMENT IN THE 1980s 34
1. The Scale of the African Crisis in the 1980s 38
2. The International Economy and the African Crisis 56
3. Structural Adjustment and the International
Division of Labour ------------------------------- 60
Chapter 2. A PROFILE OF THE AFRICAN CRISIS.......... 73
1, The External Factors in the African Crisis ------
2, Multinational Corporations and the African Crisis 97
3, The State and the Internal Dimansion of the
African Crisis ------------------------------------ 105
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4. The African Debt Crisis and Structural Adjustment 120
Chapter 3. THE INTERNATIONAL POLITICS OF ADJUSTMENT
136
IN AFRICA -------------------------------------------
139
1. The African Response to the Economic Crisis ------
2. The Western Response to the African Crisis ....... 143
3. The Bretton Woods Institutions and Structural
155
Adjustment in Africa ------------------------------
161
4. A Review of the Structural Adjustment Debate
182
5. Conclusion -----------------------------------
Chapter 4. ECONOMIC CRISIS AND STRUCTURAL ADJUSTMENT
192
IN GHANA ----------------------------------------------
1. Dependent Development, Economic Crisis and
195
Stabilisation -------------------------------------
2, The PNDC and the Politics of Economic Recovery --- 223
3, The Economic Recovery Programme I, 1983-1985 ----- 236
4, The Economic Recovery Programme II, 1986-1988 ---- 243
Chapter 5, THE POLITICAL ECONOMY OF STRUCTURAL
254
ADJUSTMENT IN GHANA ---------------------------
258
1. The Gains of Economic Recovery Programme —
264
2. The ERP and the Cost of Success -----------
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3, The Social Impact of the ERP --------------------- 283
4. Workers and the ERP -------------------------------
294
5, The Peasants and the ERP -------------------------
i
. 297
6 The Political impact of the ERP ------------------
Chapter 6. ECONOMIC CRISIS, STABILISATION AND STRUCTURAL
315
ADJUSTMENT IN NIGERIA: 1982-1989 -----------------------
319
1. Background to the Economic Crisis, 1970-1979 --------
2. Economic Crisis and the Crisis of Stabilisation
337
1980-1985 ---------------------------------------------
353
3. Structural Adjustment in Nigeria, 1986-1989 ---------
Chapter 7. THE POLITICAL ECONOMY OF STRUCTURAL ADJUSTMENT
375
IN NIGERIA ------------------------------------------------
1. The Economic Impact of the Structural Adjustment
376
Programme ----------------------------------------------
2. The Social Impact of SAP ------------------------------
422
3, The Political Impact of SAP
431
4, Conclusion ----------------
Chapter 8. BEYOND THE POLITICS OF ADJUSTMENT: THE
FUTURE OF AFRICAN RECOVERY AND DEVELOPMENT -------------- 438
1. The African Experience with Structural Adjustment ---- 440
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2. Prospects for Africa’s Recovery and Development ------- 4^8
3, Towards African Recovery and Development --------------- 466
BIBLIOGRAPHY ---------------------------------------------- 486
APPENDICES ----------------------------------------------- 500