What remains after these allocations is usually small and inadequate for purposes of education, health, housing, etc

62. the extremely low level of domestic savings has remained one ofthe critical constraints to the country's socio-economic development.

The average

savings

(or

the

period 1979-1987 has been

only

3.2

percent of GDP, which is the lowest in sub-Sahara Africa. Also, Ethiopia has been the lowest recipient of official development

assistance,

with

about US$ 8.6 per

capita

as compared to an

average

of

around US $20 per capita for sub-Sahara Africa. As a result of these situations, investment has been quite low in Ethiopia. Gross investment as a proportion of GDP was on average only 11 percent. Such a low level of investment cannot be expected to solve the country's social, economic and environmental problems, and bring about growth and development.

63. In the face of growing deficit in the trade balance of Ethiopia, the

balance

of

payments has also

deteriorated, In the late 19808, the

value

of total imports was more

than

double that of total exports. The major

cause

for this was the worsening terms of trade

coupled

with a

decline in the

volume

of ^major

export commodities.

64. It is to be surmised from the above that, by and large, the wrong economic policies in force during the 1970s and 1980s have been responsible for the shattered Ethiopian economy, The across-the..

board nationalisation policy adopted wasthe root causeof all socio-economic problems in the country. The privatesector didnot have any influence on the economic development of the country. Private initiative

and

participation was discouraged. All other economic policies, including monetary, trade, investment, fiscal, budgetary, financial, joint ventures, licensing, immigration, credit, etc. were subordinatetothe nationalisation process and were aimed at facilitating and increasing the involvement of the public sector to the detriment of the private sector. Under such conditions, there was no foreign investment in the country, as this was discouraged by the prevailing economic policies. Since joint ventures were allowed to be set up in Ethiopia between foreign companies and Ethiopian public corporations, it was only very- few socialist country corporations (e.g. Libyan companies) that dared to form joint venture firms in partnership with Ethiopian public sector enterprises. Besides being very small in size and number,' these joint ventures did not make any visible impact on the Ethiopian economy. In fact, these Ethic-Libya joint venture companies 'spent most of their time in undertaking studies and exploratory investigations.

65. It must be noted that foreign direct investments together with joint venturesincrease the flow of technology into a country. In the case of Ethiopia, the absence' of foreign direct investments and the grosslyinadequatejoint venturesformedeffectivelyminimised the flow of technology into the country.

66. Although the need for S & T policy

was

felt a long time ago, the ESTC being established in 1975, it

was

only in 1987-1989 that an S & T policy for Ethiopia was first drafted and then discussed in public. Thus, there has been no officiallyapproved S & T policyfor

the country. Whilst a suitable S & T policy could have stemmed the indiscriminate technology choice

and

unsuitable technology transfer arrangements that were being made in Ethiopia during the 19708 and 19808, it is doubtful that it would have made any significant impact in the face of the grossly distorted economic policies that were adopted at the time.

67. In conclusion, the general and specific economic policy constraints discussed above contribute a lot to the ineffectiveness of S

& T policies in socio-economic development. For S& T policies tobe effective, the overall economic policies have to be right and conducive.

Itis not enough to formulate and implement suitable S& T policiesin the presence of distorted economic policies. Equally, it is not sufficient to design and execute right economic policies in the presence of unsuitable S & T policies. Both economic and S& T policies must be supportive of each other and aim at solving the socio-economic problems of a country.

IV. CONCLUSIONS AND RECOMMENDATIONS

68. In Parts II and III of this paper, an attempt has been made at analyzing the linkages that exist between S & T and economic policies, and at showing how distorted, non-market oriented or non-competitive economic pol icies can adversely affect the potential contribution of S

& T to socio-economic development. The relationship between S & T and economic policies is so close and intimate that the absence or the inappropriateness of one of them would impede the other one from playing its envisaged constructive role in socio-economic development.

In the same vein, if both S & T and economic policies are well tuned to each other and properly implemented, the result would be high in

69. The importance of forging strong linkages between economic and S & T policies in Africa is now so well recognised that some concrete steps have already been taken by establishing S & T institu-tions. Despite this, however, the adequacy of such institutions in Africa leaves much to be desired. Government efforts at building up effective machineries and in formulating and implementing S & T policies and plans are constrained, among other things, by lack of adequate manpower, scarcity of resources, weakness in institutional arrangements, and inappropriate economic policies.

70. Shortage of scientific and technical manpower in Africa is a major constraint to the development of S & T. For the economic exploitation and management of resources, the development and maintenance of infrastructure, and the improvement and sustenance of social welfare,it is necessary to create and develop endogenous S & T capability. However, this has not been easy or possible for many African countries, because it is expensive and risky. It requires, among other things, the training of scientists and technologists at all levels of education, involving huge government expenditures whose returns are neither immediate nor certain. If anything, the benefits may be reaped only in the far future in the form of enhanced S & T capability as input into the development process. In the African context, since it is not always certain that the capability thus developed, over manyyearsand at high cost, will be usefully and gainfully employed, braindrain may easily occur, forcing African governments to recruit foreign experts.

In addition, there is a dangerous tendency inmanyAfrican countries to employ foreign experts while there are equally qualified and ex-perienced indigenous experts who can do the job. Also, in the event indigenous experts are recruited, they are usually put under the supervision of expatiates, are paid verylow, andtheir contribution not appreciated.

71. It

is

imperative upon

African

governments to allocate greater amounts of budgetary resources for expanding the educational system, for improving its quality and quantity with the objective of increasing scientific manpower which constitutes an important input for scientific

and

"technological progress.

Also.

African governments should create conducive atmosphere and gainful employment for indigenous scientists and technologists in order to develop suitable S& T policies and thereby contribute to socio-economic development.

72.

The

scarcity of resources (including finance, material, etc.) is reflected

in

the

very

low

expenditure

on S &. T

activities.

particularly on R&D. In view of the very severe crisis in which Africa finds itself today, it is unlikely that the situation will improve and investment

in

S & T

activities

is expected

to

remain low. This situation naturally translates itself into progressively slower growth in the future, thereby perpetuating poverty and misery in the long-run. For Africa to develop, the vicious circle has to be broken through the funding of S

&T.

73. To curbsuch anundesirable situation a number of measures can be proposed. First, an attempt should be made to increase the volume of resources allocated to R&D from government budget. Second, available scarce R&D resources (domestic and external) within each African country should be utilised more optimally by sufficiently streamlining and consolidating the existing network of R&D institutions

with

a

view

to increasing their efficiency. Third, more external aid should be sought for R&D. Fourth, steps must be taken at bringing the private sector into the system so as to reduce financial burden on governments, by institutionalising, for example, contributions of up to 10 percent of the

after-tax

profit of private and public

enterprises

for R&D, and at the same time exempting from taxes all

expenditures made on

R&D

made

by

these enterprises.

Fifth, at the

be pooled to finance S& T programmes which are beyond the financial ability of individual countries. Finally, at the international level

potential

sources of financial resources should be tapped.

74. To implement the above measures, greater efforts need to

be-made

by African

countries and

international

agencies.

In

particular,

African countries should make an effective use of existing regional institutions such as the African Regional Centre for Technology, and strengthen

technical

and

economic

cooperation

amongst

themselves and with other developing countries within the framework of Technical

Cooperation

among Developing Countries.

75. In order to overcome problems of coordination and linkages between S& T and

socio-economic

activities, measures would have to

be taken

for developing

systematic

intra-and inter-sectoral linkages and vital inter connections between S & T activities at all levels. These

measures must

be

designed

in

the

light

of the

particular conditions and requirements of each country. The problem of coordination and linkages also extendsto the area of technology transfer,

because

ofthe absence of S & T policies and effective institutional machineries relating to the regulation of technology transfer. This is also an area where national institutional capability should

be

strengthened.

76. It may also be proposed that, for a

more

effective coordination, supervision, monitoring and control, as well as for the formulation

and

implementation of policies and plans,

the

location of policy-making bodies for S& T shouldbesuch that they should have direct

access

to

the

head of

state

and

governmental

decision-making

machineries.

The' S & T policy-making body itself should function independently and with full autonomy. This would have the advantage of preventing

frequent changes in leadership and

personnel which is inimical to the

continuity

and

smooth

implementation of S & T policies and plans.

77. At this point, it may further be suggested that the activities of the S & T policy-making and planning body should be highly coor-dinated and synchronized with those of the overall planning organiza-tion and sectoral ministries. In particular, the overall planning body should also have similar set-ups and arrangements to those proposed for the S & T policy-making body. Otherwise, if either one or both of them do not have direct access to 'the top decision-making machineries in government, the result would be less than satisfactory.

78. S & T policies must be so formulated as to be effective and purposeful in supporting national socio-economic plans and strategies.

The integration of S & T policies in the national socio-economic plans of many African countries poses a great problem for policy-makers, planners, scientists and technologists. Whilst important lessons can be learnt from the experiences of developed countries and the newly developing countries (NICs) in their adoption and integration of S & T policies and plans within their development programmes, replication is not warranted due to diversity in economic conditions as well as in social and cultural environments. Relevant alternative S & T policies require to be identified and carefully studied, and subsequently the most suitable S & T policy selected for each African country. Thistask has to be undertaken by African scientists and, no doubt, presents a serious challenge to the scientific community in Africa.

79. In asmuch as economic policies require suitable S& T policies,

so

do S & T policies require appropriate economic policies. It is always within the framework of right economic policies and strategies that S & T policies and plans can play their constructive role in development. It is, therefore, important that economic policies for Africa should be formulated having full regard to the concrete conditions obtaining in each country. In view of the current socio--economic crises facing Africa, it is understandable that the countries are

However, the policies and programmes adopted

under

such 'fir-cumstanceshave been exclusivelyaimed at recovery without taking full .account of the structural -deficiencies from which most African countries

suffer.

It is to be noted that the

structure

of

the

African economy defines the essential features of Africa's central problem of underdevelopment. Itis within this context that measures shouldbe fonnuJated to change the underlying structural deficiencies in Africa.

80. Deliberate action is, therefore, neededto redress the

structural

bottlenecks and imbalances in the long-run as well as to tackle immediate problems. In this respect, long..termplanning, which many African countries seem to have abandoned in favour of short...term policies and programmes, is essential and mustbe restored as soon as possible. Within the long-term planning framework, whilst the structural problemswill be addressedthrough appropriatemeasures, the short-and medium-term issues will be tackled, as

necessary

and appropriate. It is

believed

that it is within this approach that economic - and S & T ·policies should be integrated.

81. Itis not the intention of this paper to analyze and recommend economic policies that would be suitable for Africa. While each country deserves a separate treatment in "this respect, the aim of the paper is to suggest, among other things, mechanisms to strengthen the links between economic and S & T policies for effective impact on socio..economicdevelopment. Some general principles could,

however,

beproposed that would facilitate the formulation of suitable economic policies within which appropriate S & T policies can be integrated. It is generally believed now

that

within the framework of a free-market economy, suitable economic and S & T policies would

have

a

better

chance

of success than within the context of non-market

oriented

economy. As exemplified

by

the Ethiopian experience in the 19708

and 19808,

non-market oriented or non-competitive

economic policies,

among other things, not only crippled the economy of

the

country,

but

also obviated the formulation of S & T policies, let· alone their implementation.

82. Privatization,price, foreign investment and joint venture policies among others, could have direct impact on the role that S& T policies would play in overall development. It is within these economic policies that the flow of foreign technology into Africa could be enhanced, and

that

with

appropriate

S

&

T policies, proper

technology"

selection, adaptation and development could be made. Such economic policies coupled with suitable trade, monetary, credit, financial budgetary, and manpower policies can go a long way towards

increasing

the contribution of S & T policies in socio...

economic

development.

83. It should be interesting to learn from the experiences of the NICs

that

have successfully forged strong links between economic

and

S & T policies. These countries have shown remarkable

economic

growth and development by adopting and pursuing

the system

of free-market! competitive

economy.

In this respect,

Ethiopia

has since 1992 changed gears .by adopting new economic policies within the framework of a free-market/competitive economy. Also, a new S

&

T policy has beendrafted by the country, and is now awaiting govern..

ment approval. It is,

however.

too early toevaluate the impact of these policies

on

socio..economic deve!opment.

84.

Finally,

the proposals

made

above in connection

with

mechanisms required to strengthen the links between economic and S

& T policies for effective impact on socio-economic development

should be

taken as a

package. They

are

expected

to reinforce each other. Otherwise, the

i.mpact would not be effective.

^It

has ^invariably

been the case that proposals like these taken separately,

and

not as a

package,

have failed to show

any improvements,

thus leading

many

peopleto conclude that such

proposals

are useless.

Dans le document The influence of economic and development policies on science and technology in Africa (Page 135-144)