Africa in The Twentieth Century
Economic

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Most African countries expected prosperity after independence, especially in the per capita growth rate. Per capita refers to the amount produced per person in the country per year. In order for the per capita growth rate to increase, the amount produced in the country needs to increase faster than population growth. This is not the case and much of Africa continues to face numerous economic problems.

To begin with, the economies of Africa were not market orientated. Most of Africa was still rural and survived through subsistence farming. Those countries that did produce products for the market usually focused on only one or two products for export. Their economy was therefore heavily reliant on the market price of those products, and was not very stable. Lack of expertise and capital made it difficult to expand the range of products. Another problem in developing a market-orientated economy was that large parts of Africa were unsuitable for production. Extreme weather conditions made the situation more difficult and added to this the lack of natural harbours, navigable rivers and education in economic development, also retarded the progress.

Subsistence farming
(Source:http://www.colin.gray3.btinternet.co.uk/ww.jpg)

Secondly, immediately after independence most African countries were faced with political problems, which had an impact on their economic growth. Many African countries turned to a version of communism or socialism, without having the necessary knowledge of the systems. This situation was made worse by the Cold War, with the USSR and USA each triying to enforce their economic system without the necessary guidelines for development.

The USA and USSR soon stepped in to try and help the economic situation. They did this through buying up the surplus products and controlling prices of import and export. These attempts were fairly successful in some countries, and during the 1960s a state of relative economic growth and stability was reached. However, increased government control and reliance on the farming industry, led to some farmers reverting back to subsistence farming or reducing production. Some countries were no longer even able to provide enough to feed their population. The situation was made worse by droughts experienced in the 1970s and by wars that pulled people out of production.

A further economic problem was experienced as a result of the percentage of the African population that became government employees after decolonisation without the necessary experience in economics and budgeting. This means that the weight of production fell on a small section of the population. It was also the educated people that went into government employment, leaving those without any business knowledge to take the lead in economic development. Corruption made the problem even more intense. Added to this there was a population explosion in the 1970s. This influenced mass urbanisation with the urban population doubling in the 1960s and 1970s.

Increased urbanisation was however not accompanied by increased industrialisation. Rather, many countries experienced industrial breakdown, made worse by the civil wars. African populations were not at the economic level to support mass production. Industrialisation was further hampered by the 1973 increase in the price of oil and the oil crisis. Most African countries had no other cheap source of energy, and as emerging countries they could not afford the sharp increase in price.

Child soldier involved in a civil war
(Source:http://news.bbc.co.uk/olmedia/1380000/images/_1383998_leone150.jpg)

Impact of civil war (refugees)
(Source:http://news.bbc.co.uk/olmedia/690000/images/_693359_rebels150.jpg)

High inflation followed, made more difficult by the problems experienced in the first world countries (developed countries with established economies) spurred by the increasing price of energy. The first world countries could no longer offer the same support to Africa through trade, and the prices of commodities produced in Africa dropped. A solution was sought in the 1980s in the form of foreign loans and aid and control of these by the International Monetary Fund (IMF). The IMF gave guidelines on how development should take place, and placed huge restrictions on what the country needed to do before money would be loaned. This led to external control of the African economy through principles that were not always understood or appropriate for Africa. The situation deteriorated further as loans could not be repaid, funds were misappropriated and aid was wasted through corruption, poor allocation and inefficient management.

Africa still faces economic problems today. It is accepted that the IMF principles were not appropriate, but there is no new solution for African problems. Economic colonisation continues with prices being determined externally in an increasingly global economy. Famine and poverty continue across the continent, and ways of dealing with recurring floods and droughts have not been found. The economy also continues to be influenced by corrupt politicians, and the wars that ravage the continent. The countries with the most stable economies are those with mineral resources e.g. gold, diamonds and oil etc, but in many countries the money earned with these resources is used to fund wars or goes to politicians and is not fed through to the people. Mining practices are also environmentally destructive and usually unsustainable.

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Learning outcome: Learners will be expected to demonstrate an ability to work independently, formulating enquiry questions and gathering, analysing, interpreting and evaluating relevant evidence to answer questions.

Activity 5

 

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