'Third World' types of economies (9) Flashcards
What caused economic challenges among the newly independent African countries?
The newly independent African nations also faced challenges caused by their economic situation.
Under colonial rule, what had their economies been structures to serve?
Under colonial rule, their economies had been structured to serve the needs of the colonial powers.
What did the newly independent African countries export?
They exported unprocessed minerals and cash crops cheaply, and imported expensive manufactured goods because the local secondary industry was not encouraged by the colonial powers.
What happened after political independence?
After political independence, this economic dependence continued in a way which was typical of ‘third world countries in Africa and Latin America.
What made these countries economically dependent?
Prices for raw materials were determined on the world markets, making these countries economically dependent on the developed ‘first’ (Western) or ‘second’ (Soviet dominated socialist states) worlds.
Several countries depended on a ______ crop or mineral which made their economies very _________ when world prices ___. For example, __% of Zambia’s export earnings came from _______ and ___% of Ghana’s from cocoa.
single vulnerable fell 90 copper 74
What is sometimes described as ‘neo-colonialism’?
Most African states could not grow enough food to feed their populations. Subsistence farmers had been driven off the land so that plantations for cash crops could be established. This is sometimes described as neo-colonialism, as it was a continued economic dependence on outside economic forces similar to the period of colonialism.
What did neo-colonialism do in Tanzania?
It artificially held back the economic development of these countries, and so is also called underdevelopment. This happened in Tanzania.
What did the Tanzanian colony produced?
The colony produced sisal, which is used for making rope and twine for foreign markets. However the price of sisal collapsed in the 1930s, making it an unprofitable crop to grow.
What did the British colonial government encourage?
After the Second World War, the British colonial government encouraged the growth of groundnuts as a cash crop. However the scheme failed because of unsuitable soils and farmers could not produce enough to make any profits.
What happened as a result from the switch to groundnut production?
As a result of the switch to groundnut production, less food was grown and there were shortages of food.
At the time of independence the economy of __________ (as it was called before independence) was one of the _____ developed in British colonial Africa with an average annual income of only £ __ (a quarter of that of _______ ). There was very little __________ industry.
Tanganyika least 21 Ghana manufacturing
How did Nyerere attempt to improve this situation?
Nyerere attempted to improve this situation by encouraging rural production through ‘ujamaa’ collective villages, by establishing small - scale industries in the towns under the control of the state, and by nationalising foreign businesses.
What severely affected the Tanzanian economy?
However, Tanzania was still very dependent on world markets. In the 1970s the world wide increase in oil prices and the fall of prices for cash crops severely affected the Tanzanian economy, and Tanzania was increasingly dependent on foreign financial aid.
Which country was a classic example of third world economy?
Clearly political independence had not brought economic independence. The Congo at the time of independence was a classic example of a third world economy.
What was the prosperity of the Belgian colony based on?
The prosperity of the Belgian colony was largely based on the exploitation of cotton and rubber plantations and mines by colonial companies which extracted all of the profits for themselves and sold the produce in foreign markets.
What was particularly profitable after the Second World War and what were the profits based on?
After the Second World War, the copper, tin and diamond mines were particularly profitable. However, their profits were based on the labor of highly exploited Congolese workers who earned very little.
What did local industries supply colonies with?
Some local industries were established in the 1940s and 1950s to supply the colony with consumer goods, and a small African middle class developed who benefited from this.
What was the Congo considered to be?
At the time of independence, the Congo was considered by many to be one of the most prosperous African colonies. However, white settlers and foreigners owned most of the economic wealth while most Africans were very poor.
What did this cause and what was the most immediate sign of this?
This caused major divisions and conflict at the time of independence. The most immediate sign of this was the breakaway of Katanga and Kasai provinces. These were the regions where the prosperous copper, tin, uranium and diamond mines were situated.
What did the leader of the separatist government in Katanga hope?
The leader of the separatist government in Katanga, Moise Tshombe, hoped that the wealth of copper mines would enable it to maintain its independence.
What happened after the secession ended?
After the secession was ended in 1963, the Katanga mines were taken over by the state.
_______ formed around __% of the _______’s export earnings throughout the 1970s, but in the 1980s world demand fell as ________ and ______ fibers replaced copper in the industry. The result was a major loss of ______ for the country.
Copper 40% Congo's plastics glass income
