ECON 3510 African Economic Development

Democracy and Development Democracy and Development in Africain Africa

A.R.M. Ritter June 17, 2009See text, Chapter 11

Outline:I. IntroductionII. Characteristics of a Well-Functioning

StateIII. Defining DemocracyIV. The Colonial Heritage in GovernanceV. Governance since IndependenceVI. Central Issues re GovernanceVII.Improving Governance

VIII.Democracy and Development

I. Introduction:– Intense interest in African Governance in recent

years• reflecting governance problems, breakdown,

decay etc.

– Examples:

National Governments

African OrganizationsUN ECA;NEPAD

INGOs, such as Transparency International

IFIs: World Bank preoccupation

AfDB.

Donor Countries

II. Some Characteristics of a

Well-Functioning State–Maintenance of Peace. Law and Order;– Acceptance and Success re the

“Responsibility to Protect”– Enhancement of Individual Rights and

Liberties • Fundamental UN Declaration type rights; Political and

civil liberties

– Authentic Representative Government• Checks and Balances on Exercise of Arbitrary

power• Transparency and Accountability• A “legitimate political process

– Effective Functioning of the State• Revenue generation• Provision of public goods (social,

infrastructural,….)• Effective public policy

– Effective Legal System and Independent Judiciary• Independent from Government• Impartial and fair• Dispute resolution;• Enforcement of contracts, rights, etc.

III. Defining Democracy:Multidimensional and complex phenomena• “Process” and “Principle” Democracy

“Process” Democracy: Are leaders selected in free and fair elections”“ Principle” Democracy: Are individual and minority rights respected?

• Majoritarian” and Consensual” “Majoritarian”: does the majority rule?““Consensual”: do all groups have some say and are their rights

protected against the majority?

• Huntingdon’s definition:

“…system is democratic to the extent that the most powerful collective decision-makers are selected through fair, honest and periodic slections in which candidates freely compete for votes and in which virtually all the adult population is eligible to vote.

See the text

IV. The Legacy of Democracy in Africa:

The Colonial Heritage re Governance– Inadequate tutelage re Representative Government under

Colonialism; – Variation among colonies– “Indirect Rule” in some areas– Inadequate education of personnel for the operation of

national states

• Ethiopia: no Colonial heritage (except for Mussolini)• Liberia and Sierra Leone: long history of Independence;• Congo: Almost Zero self-rule tutelage and experience • Adoption of Western-type political systems, but by

“parachute” rather than evolutionary assimilation

Evolution of Governance since Independence

At Independence, early 1960s to early 1970s:

– Western-type political systems, but by “parachute” rather than evolutionary assimilation

– Plus strong nationalist or nation-building ideologies in many cases;

– Highly successful re maintaining law and order, improving human development, economic growth and structural change• A “golden age” for African countries ! ?• Why?

1970s to 1990s: Shift to Autocratic Military Rule and One-Party Authoritarian Systems

Military coups in 60s and 70s (Congo-B., Benin, Togo, Burundi, Ghana, Nigeria, Upper Volta, Mali, Somalia, Ethiopia, Uganda)

By 1990, about 50% of the continent was under military authoritarian rule

Plus Single-Party States and some Single Party Dominant States

A period of worsening economic regression, weakening governments, and social reversals. HDI begins to decline for some countries

What was cause and what was effect re economic regression and worsening governance?

Idi Amin

Some African Dictators

Omar Bongo, The Cameroon

Desmond Tutu

Julius Nyerere

Nelson Mandela

Some African Statesmen

1990s to 2000s:

Political Liberalization and the beginnings of Economic Recovery

Political change occurred in most countries, due usually to popular pressures

By 2000, many African countries had held multi-party elections

Some economic rehabilitation and recovery underway in most countries

Current Regimes in Africa:

– Democratic Pluralism: See Chart

– Structures of Government– Popular Participation

Question: Is our concern with Governance and a focus on Representative Democracy simply “Western Ethnocentricity?”

– Freedom House Map of the World http://www.freedomhouse.org/template.cfm?page=289

The Economist Democracy Index

Methodology and Source:

http://en.wikipedia.org/wiki/Democracy_Index

The Economist Democracy index map for 2008, with lighter colours representing more democratic countries. Countries with DI below 3 (clearly authoritarian) are black.

Methodology: ttp://www.freedomhouse.org/template.cfm?page=351&ana_page=341&year=2008

Freedom House’s Freedom Index

Electoral Democracies, according to Freedom House

State Variation regarding Capabilities1.Failed States; Cases of Total Breakdown: • at this time, perhaps only Somalia

2.Violent Conflict or Civil War:• Protracted Civil Wars in some cases • At present: Chad, Sudan, Nigeria plus Ethiopia

with Eritrea? • Spill-overs to other states

Note: In 1999:• 20% of Africa’s people lived in countries with war or

civil conflict; • 90% of casualties were civilians• 20 million land mines were laid, 9 million in Angola

alone

Source: The Economist Jan 29th 2009

Failed or Critically Weak States according to the Economist

3. Decayed States facing near or severe crisis“worsening institutional capacities cause and also

caused by economic stagnation and retrogression]

Malawi, Zimbabwe, Zambia

– Other countries trying to escape this situation: Ghana, Nigeria

4. States with Reasonable to Good Capabilities:Some Highly Effective:

Mauritius, R. South Africa, Botswana

Others reasonably effective:

Ghana, Tanzania, Uganda and others

IV. Explaining Africa’s Difficulties re Governance

A number of possible factors:1. Colonial Legacy?

2. Pre-Colonial Legacy?

3. Ethnic Diversity?

4. Inexperience of new regimes and people

5. Quality of Leadership?

V. Improving Governance

1. Strengthening the integrity and legitimacy of the electoral process and acceptance of the rules of the game– Concept and practice of a “loyal

opposition”– Opposition parties

– Political parties and their financing– Access to the media– Credibility and transparence of the

electoral process– Electoral commissions

2. Social inclusiveness: regional, ethnic, racial, religious and gender balance in • Government or parliament • Civil service• Distribution of public goods and social

services

3. Strengthening “Public Voice” • “Freedom of Speech” & Independent Media;

– Free press and independent critical journalism in all the media

• Strengthening independence of civil organs of society.

4. Enhancing support for Human Rights and the Rule of LawWidespread popular perceptions of violations

by governments, law enforcement agencies

Ensure:

Equal access to justice and the legal system

Ender equality and women’s rights

Cultural and social rights e.g. for indigenous peoples.

VI. Democracy and DevelopmentQuestion: What is the relationship between

Democracy and Development? – Does democracy promote development? – Does development promote democracy?

Central conclusion: Strong correlation; circular causation or mutual reinforcement– Generally, the more democratic the country, the better

the policies and the better the economic performance in terms of growth and incomes

– But what is cause and what is effect?

The Impacts of Democracy on Development

What is development? Growth, + equity + sustainability

What is democracy? (again)• “Process democracy”: are leaders elected in free and fair elections?• “Principles democracy”: are individual rights respected?• “Majoritarian” does the majority rule?• “Consensual” do all groups have some say and are their rights

protected against the majority?

– Huntingdon: the most powerful decision-makers are selected through fair honest and periodic elections in which candidates compete for votes and all the adult population has a right to vote.

How does development affect democracy?1. “Modernization Approach”:

Development generates democracy.Higher GDPpc better education, more urban, more

organized with independent civil organs of society, better communications … stronger demands for political inclusion and eventually democracy

OR, as authoritarian regimes prosper, they produce the conditions for democratization

But, on the other hand, as development occurs, older political systems may become unstable, so that political breakdown or emergence of authoritarian regimes may occur. Sometime afterwards, democracy may emerge, but with difficulty.

– Maintaining stability is vital

2. “Neo-modernization Approach”: Relationship between development and democracy is

more complex. Levels of development may not predict well the type of

regime that will emerge after the decay or collapse of an old regime.

3. Civil Society Approach:Countries where civil society is well established may be

better placed to be more democratic. What is civil society?

4. Structural explanation:class analysis: the stronger specific classes – capitalist or

workers – the greater the role they will play; development generates classes which then may promote democracy

Does Authentic Democracy Promote Development?

How might democracy promote development?1. Notethat Democracies are vital for their own

sake.2. Genuine Democracy may ensure that policies

promote the common well being more so than authoritarianism

3. Democracies are accountable.

4. Peaceful regime change is possible when governments mess-up, or when times and conditions change. Citizens can “throw the rascals out” when performance is weak. Policy adjustment , improvement and evolution can occur

5. In democracies, individual economic rights are protected better than in authoritarian regimes where the rule of law is dubious.

6. But may special interests dominate and pervert policies towards their own interests?

How often is democracy genuine and effective?

What has been the effect of democracy on development in Africa?

Note: the text presents some empirical materials exploring this issue.

Main conclusions?Established democracies seemed to perform better in

terms of growth, savings levels, human development indicators, …

Newly established democracies also performed well, but with some higher inflation, lower savings, higher debt….

The evidence supports both propositions: Development Democracy , andDemocracy Development