Capitalist Economies Flashcards
Name two African capitalist economies
Kenya
Cote D’lvoire
Comment on Kenyas economic growth
Consistent growth rate of 2% per annum in the first 25 years after independence
Nairobi - largest city in east Africa - cultural / economic hotbed
Mid 1970s producer prices paid to Kenyan farmers is twice the amount Tanzanian state paid to farmers for produce
How did Cote D’lvoire perform compared to Kenya?
Cote D’lvoire experienced similar rates of development
- however in 1960 economic growth exceeded their Kenyan neighbours, reaching 6.8% per annum
How was Cote dlvoire economy performing in the 80s?
Became the largest Cocoa producer in the world, and the third largest producer of coffee
At what rate did industry grow in Côte d’Ivoire through the 60s and 70s?
15% per annum
This industrial growth, plus the surge in agricultural growth, attracted foreign investment
What were the limitations of economic growth in Côte d’Ivoire?
Highly unequal society - 1/3 of population living in poverty in the early 1980s
Similarly to Kenya, economic growth led to corruption
1980s - all African countries entered recession
What did robin bates’ research suggest regarding African economic development?
Bates wrote that development strategies were driven by political, not economic logic - rather than being distributed in the interest of the people and country, resources were allocated to keep elites in power
Comment on the price paid to farmers for a kilo of coffee in Côte d’Ivoire
Consider what this suggests about the post colonial state
Price paid to coffee farmers in Côte d’Ivoire four times lower than the price in Brazil
Why were structural adjustment policies imposed on all African countries?
Africas increasing indebtedness gave leverage to the IMF and world bank - if Africa was to continue receiving loan payments then conditions would need to be imposed over how economies and political systems are governed
According to collier and Gunning, what were the aims of the Structural adjustment policies?
Aimed at making government more accountable and to secure fair rates to farmers for their produce
- the idea was to democratise government, which would discourage corruptive political behaviour and create a healthier climate which would entice external investment
What were two SAP requirements?
Cut the size of civil service and liberalise the economy
Why did structural adjustment policies (SAP) seem to have failed by 2000?
Africa had fallen even further behind the rest of the world than it already was in 1980
Cut backs in healthcare and education had disastrous implications on the poor
Democratisation had failed, in fact led to more civil wars & retrenchment of civil service sector led to increased unemployment, which was not balanced by any increase in the private sector employment
