Arlnex
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a) Page 25. There will be a general prespntation and discussion session, when the Syndicates will,pres~nt their reports; The Chairmen will
introduce Yheir syndicate reports within the limit of time to be speoified during the session. Chairmen will be expected tosummarfze the reports ,in the introductory remarks, highlighting the fIDportant points in the reports, ,they will not be allowed to read the report.
Other members of the Syndicate should be e'ncouraged to'participate in the disc";ssions that fellow the presentation by the Chairmen.
6. Since the ,various Syndicate repl'rts will be preserited'at a joint session, each syndicate will have an opportunity to appraise its own 'views and ,opinion in the light of the reports of the other syndicates.
Syndicates.lnay select a few questions of importance found necessary through reading. other reports, and ask these fer general discussion by the, "Course.11
7. .Each SyndicateIa planning, discussion and writing of the report will be the work of the Syndicate itself, and the report is expected to rep!esent the initiative and originality of each Syndicate. Out-side help is not to be sought other than by way of reference to publi-cations if ,necessary and 'possible.
Course Principal:
9th October, 1970.
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E/CN/14/AMA/2
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Annex XII(b) FIRST SYNDICATE BRIEF
Sessions of the Course have been devoted to the organization and functions of financial institutions and arrangements for the mobilization of savings that are termed "money and capital markets"., Nearly every African country represented at this Course has one form or
other of these institutions at some stage of development. International institutions concerned with economic development, as well as development assistance giving countries of the "Western World" have time and again stressed the importance of under-developed countries developing these institutions as a means of mobilizing and chanelling savings for deve-lopment. Our own countries are also concerned with th~se issues in their development policies.
Each Syndicate is asked to examine in depth the advantages or otherwise to the African economies .of developing these oomplex arrange-ments in the pursuit of rapid economic development. The Syndicates should consider whether the development process of these institutions should follow the historical pattern which characterized them in Europe and America. What innovations, if any, may be desi~able in the present context of development through economic planning.
Each Syndicate is to prepare a report of not more than 2,500 words setting out its views on the principles .which should guide African governments in the formulation of policies on money and capitalmrkets.
The Syndicates should take into consideration ·theparticular circumstances, b~th economic and otherwise, of each African country or
group~ of African countries and state appropriate policies. It is also important for Syndicates to be clear on the types of institutional arrangements that may be most appropriate in African conditions at different stages of their development. Is a departure from historical patterns that characterized countries outside Africa possible?
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ElcN .14/AMA/29 AnnexXII(c) SECOND SY1~DICATE BRIEF
The Prcblem
1. Orenia i'l an unde r-edeveLoped oountry whioh depends on the eJ(:porta-ti",n of iron or<j" cop.pe r , cc coa , groundnuts, palm pr-oduce and timberfcr
for~ig~e;change,<jarnings. In the aggregate, these exports fetohthe <
countJ1Y about $.380 million annuaHy. Ninety per cent of the exports is hauled by~ail to the ports. The main road system was planned as feeder
to the raihmy. In the past t,hree years, however, surveys have been ,~
undertaken for the purpose~of constructing all-season roads from the
~xp~rtproducingareas to the ports. Plans for these are far advanced, and construction should begin any time • .
2. JJ?;1969, the rail traffic broke down as a result of poo,r,railand , equ Lpmerrt maillltenance, and the exodus of foreign ,railway• " , ' OJ engineer'l~and meehanio'l soon afte~ Orenia gained independence early ,that year. The Pr-ob Lem was ,not .onLy of the sparci ty of' trained pers.onnel.Ey 1969, the ra~lway.admdntetrati.on which was made up mainly of foreign personnel, had become severely demoralized asa result of the
gathering momemtum towards the country's independenoe. The servicing of engines and rolling stocks ,was neglected, and scores of engines had been in shope for months awaiting repairs. Although export traffio continued,' the eva~\iation capacity o'f the railway f'e Ll, drastioaIly.
Export commoditi~s piled up in' the hinterland. The stocks, of
perishable exports deteriorated and were' destroyed. Foreign exchange reoeipts foll, andeJ[ternal reserves of Orenia, which stood at eighteen months ,of iml)Orts at the end of, 1968,fe11 to about ten months .of
import ,value at the end of July 197.0. In the early period of the rai!1y,seasoj1 of 1970"s01l)e: twelve, miles of ;the North-western route of, therail1:'ay :s;ystem; wa,,1;ashell,aut~,and,trafficby this. r-oute ceased.
The only remain:pJg route, the North-east-SoUthern, was moz-s intensely utilized, and soon began to show :signs of overuse. Orenia is faced with serious economic problems. Its imports, which average $26 million monthly, have not declined with eJ(:ports.
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E/CN.14/AMA/29 Annex XII(c) Page 2
3. The Railway Department, which is self-accounting, does not have adequat e reserve of funds to mset the oontingencies 1;hat has arisen.
The Department has the.sta tutory powers tl' borrow publicly to finanoe its operations. However, for reasons that are difficult to explain, its .financial position has so deteriorated that its credit standing
in the financial markets has been impaired. It cannot attract conventiornl loans.
4.
The Reserve Bank of Orenia is the country's Central Bank, and ,is the custodian of Orenia'sforeign exchange reserves, which are cEntraliz~d in the Bank. The Bank also has the r-espons i.bi'Li,ty to manage theexternal reserves so as to maintain the international value of Sitim the oountry's cur-rency , whose parity is defined as
3.148975
gms of fine gold. The Bank is also chief economic adviser to the Government.The provisions of the laws under which it operates permit wide scope of intervention in the economy for purposes of maintaining stable oondi.tions.
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The Task
A. Each Syndicate is to constitute itself into the policy advisory board of the Reserve Bank of Orenia, and in 2,000 words draw LJp its policy recommendations to the Government for dealing with the
economic situation in the country.
B. Firstly, the Syndicate is to analyse the economic situation fully, and all the possible repercussions of the breakdown of .ratL traffic, in Orenia. Secondly,it shOuld decide whether the problem confronting
the country is the type which the Central Bank should concern itself.
It should justify its decision. Thirdly,· i t should state the directions of policy whether monetary or otherwise which the situation demands.
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E/CN. H/AlllA/29
Annex Xln