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UNITED

ECON AND SOCIA

NATIONS

OMIC

L COUNCIL

Distr.

LIMITED

E/GN.I4/SHP/6 ;

16 September 1963J Original: ENGLISH ECONOMIC GOMISSION FOR AP

Meeting for Experts on the

Integration of Social Development Plans with >ver-all Development Planning Addis A"ba"ba, 9-18 October 1963 Agenda item 6

GOVERNMENT EXPENDITURE ON SOCIAL SERVICES IN SELECTED AHilCAK COUNTRIES

(Pi^epared "by the Fiscal and Financial Branch, Department of Economic

and Social Affairs, United Nations, Hew York)

63-29'

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E/CN.14/SDP/6

INTRODUCTION

In formulating- an integrated plan for economic growth, the importance of according righ't. priorities to social services can hardly "be over

emphasized. A literate population may ensure the much needed mass participa tion! in a development programme, :A balanced educational system would

contribute to the supply of technical skills. An effective health service mighft lengthen the life of the working force and contribute towards an

increase in productivity. Unless simultaneous efforts are made to eliminate social obstacles to economic development, the impact of capital and technical knowledge on growth might not be very signifioant^ at least in the early

stages of development.

i

| In under-developed countries, since-the social services are mostly provided by the governments, it is usually they who have to decide on the

scale of these services in their annual or multi-year expenditure programmes.

In. general, it is difficult "to lay down rules for' determining;-what-the'

right priorities are."-^ The problem becomes more complicated in the field of social services because market forces or certain economic tests-'designed to Mshow up lack of balance in a production programme" have- limited value in determining the soale of such services. It might be, however, possible to determine priorities within the framework of existing deficiencies and obstacles to economic development. In this respect past experience can be

a useful guide. -■ - ■ ■ ■ :

i One of the possible approaches-^to the priority question or to the pat-tern of government expenditures lies in undertaking a .comparative

analysis of government social.expenditure programmes in different countries

W,A. Lewis, the Theory of Economic Growth, George Allen and Unwin Ltd.,

P. 394. ' ■ ■■;■

1/

2/ For example,' resource budgeting, input-output analysis, .maximization of marginal returns, balance, of payments'test,'etc. 'On ways' and ■means of testing a plan for its internal consistency, see W.A. Lewis, The Theory of Economic Growth, qp.cit.., p.388 ff« . / ""

3/ I For a brief discussion of -alternative approaches with regard to the^

I criteria for the allocation of funds to social services, see Economic j Bulletin for Africa, Vol. II, ffo.2, June 1962, OTECA, Addis Ababa,

p.85 ff.

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E/CN.14/SDP/6

Page 2

so as to "indicate the points where some of these programmes have teen found to.be weak". The purpose of this paper, therefore, is to analyze social expenditure programmes in selected African, countries,in respect of the actual priorities accorded to social services, in the past, their

growth over the period and their current levels.

Government expenditures^on social services provide a most convenient -

for lack of other data - starting point as well as a useful media for such an analysis since they represent "the Vest sdngle measure of the -,

allocation of national resources "v^ The available data on government

expenditures have some serious limitations in general and particularly, so in the case of a majority of African countries. It is useful to note these limitations so as to appreciate the. restraints which they place on

analysis and on final conclusions. . .

Limitations of statistical data and scope of the study

. The general, limitations of traditional public finance data and of public,social, expenditure statistics for purposes of economic analysis

have been extremely.well documented in. several places.^ It should, therefore,

suffice here to note only some of'the major limitations of data concerning

the countries included in. this study.

l/ Actually total expenditure on social services, i.e., public and private would be the ideal measure but for lack of data on private expenditures,

the analysis is confined to government expenditures.

2/ Report on the World Social Situation, United Nations, New York 1961, p.63.

This report also mentions other important but less useful measures such as' statistics of labour force distribution, energy consumption., industrial

origin of gross domestic product, etc.

3/ To cite a few, Manual for Economic and Functional Classification of- ' Government Transactions, United Nations, Hew Tork 1958; Report on the

World Social Situation, op.cit., Chapter IV; N.T. Wang, Some.Problems of International Comparison, of Public Social Expenditures, Indian.

. Tc-n-mi- P—i— Qivi?, Vni . TT. No-P. 1Q55: Public. Finance in Afri-oan

Countries, Economic Bulle.tin for Africa, June 1961 and Alison."M, Martin

and W.A. Lewis Patterns of Public Revenue and Expenditure, The Manchester

School of Economic and Social Studies, Ho.3, September 1956.

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E/CN.14/SBP/6

Page 3

of -traditional budgetary data poses serious problems,

conceptual and practical, for inter-country .analysis as well as .for.a given country over the years. In the first place, budgetary figures.,do .not

necessarily,reflect true magnitudes of total expenditure or revenue. This is Urgely-due .to the observance of certain oc.^cn practices such as the

appropriations-inlaid system, the establishment of special funds and transfers to.and from .these fimds; and certain accounting entries such as transfers from,.current apcount to development account and.appropriations to the sink ing lunds. The disparity between the budgetary figures of "ordinary"

expenditure and the probably correct magnitude of such expenditures is best

illustrated by the following figurof-Ton Ghana.

GHANA Million.

Total ordinary expenditure as shown in the Government accounts 78.410

Lebs: Transfers to Special tivnaa ; ; {f?ljl1

PlUs:' Expenditure out of Funds ' ' 1-952

i t Capital expenditure, en Defe'nco ' ' ' 0.635 1 . Total estimated ordinary, expenditure . 31*679 I On the conceptual side the most serious difficulty lies in distinguish ing between current and capital expenditures, Although"many governments

practice a doable budget rsyste*, yei. the two .accounts are neither conceptually exclusive nor the oxpendj.ture included in development", .^non-recurrent" or

"oapjital" account is .strictly of a capital nature in an. economic sense. The governmental considerations behind the separation of accounts are largely administrative and Po?itical ^th^r ihan economic. In the present.context -.this! drawback is oonoep-ciu-xly.of Less significance since the distinction

between current-and capital expenditui-e is.of restricted value so. far as thejsocial-services., are concerned. .From a practical point of view, however, sincj:e the govejpaen^s v^j 6,—cit streoa on ths recurrent implications of 1/ :The transfers to ..Special .Funds in. other fiscal, years were not always of

this order. The 1954/55 figure was large because of the high price

! fetched by cocoa in the world market in that yea:1.

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their development expenditures on social services, it is.useful to follow this distinction in the analysis« So.much.for some of the major limitations of the aggregates.

At the functional level, the expenditure shown in the government ' accounts does not necessarily represent the total expenditure on any given function. For example, the Federal Government of Nigeria shows probably only 29 per cent of total export.:.ture on education under the expenditures of the Ministry of Education or under the major head of account "education"

as shown "by the following figures,

NIGERIA - FEDERAL GOVERNMENT

Current expuiidit.ui-e on education - £ million

1957-^8 O.718 1.723 O.285

0.475

0.245

0.681 0.037 2.441

f

29 70

100

.4 .6

.0 Expenditure as shown under "education"

Expenditure shown under other heads of account:

of which: (a) Training of superior posts and scholarships (b) University College, Ibadan

(c) University College of Arts, Science and

Technology

(d) University College, Technical Hospital (e) Other

Total estimated current expenditure on education

It may "be, however, noted that this situation existed in Nigeria

until the fiscal year 1957/5& and in subsequent years the items in the

budget were so regrouped that all the expenditure on education was virtually brought under the control of the Ministry of Education. Similarly until recently in Tanganyika, financing of education was institutionalized by a fund structure. Separate funds existed for "Indian","European" and "Goan"

education and revenue from non-native education taxes was directly credited to these funds. Since a large part of the expenditure was met directly:

from the funds - except on African education - the expenditure on education shown in the budget proper represented simply the difference between total expenditure on education and the expenditure financed from.the funds. And

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if the budget figures were used very widely. This situation has been now corrected by the adoption of an integrated educational' policy by the

Government of Tanganyika. ...

In the case of Cameroim, Ivory Coast and Togo a special difficulty is encountered in obtaining precise estimates of their total current and development expenditures. Prior to'independence by virtue of their financial relationships with France a large part of current and capital expenditure in these territories was financed by the French Treasury. Metropolitan agencies such as FIDES.. FEHDES and CCFOM financed a great deal of develop ment-expenditure. This relationship changed considerably during the post-war period until it was cry.talized in the Lo_i_Cadre of 1956 which established a distinction between S^rvic_e^.^Jtat and Ser_vices^erriloriaux. The 'French

Treasury financed the first category of services which Included" armed forces

and; most of the important public service?, except some social services like education and health end some economic services like agriculture, forestry and^veterinary. The transactions among the French Treasury, metropolitan agencies and territorial budgets are, however, characterized by inters budgetary and inter-acoount transfers and hence it is difficult to estimate the net contribution r.ad3 by France towards the financing of public expenditure

in these territorial This study, therefore, includes, unless otherwise

mentioned, only the expenditure of the territorial budgets of Cameroun, Ivorjy Coast and Togo. Aa a renult of this, the data en total development

expenditures, particularly, represent substantial underestimates.

Lastly, the data or local government transactions are not available in miost of the countries. In a few cases where such information is avail- ableL e.g., -Ghana, Southern Rhodesia arid Tanganyika, lack of data on inter

governmental transfers render an integration of accounts very difficult.

1/ For some general magnitudes, see Public Finance in African Countries Pccnomxc Bulletin for Africa, Vol.1, l^IlT^^^^^^?

-^—~-' rfo™atio

de l'Ouest. Ho,71, Juin I96I.

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E/CN.14/SDP/6

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In this paper an attempt is made to obtain as accurate magnitudes of total ordinary and development expenditures and of expenditures on health and education as possible by making major corrections to the official figures* It has not been possible to separate current and capital expenditures and hence governmental distinction has been followed. The

statistics of development expenditure are not, therefore, strictly comparable and they reflect the national differences in concepts and definitions. For lack of data on local government expenditure, the analysis is confined only to central government transactions except in. the case of Nigeria where expenditures of- regional governments are included. The countries have been so chosen as to provide a fairly representative sample in respect of certain characteristics such as their pre-independence exposure to metropolitan civilizations, structure of economy, approaches to economic development, siae, political organisation of government, etc.

The definition of social services for purposes of this analysis is taken from the United Nations Manual for Economic and Functional Classifica

tion of ■ Government Transactions^ Accordingly social services include

education, health, social security and special welfare services and other social services such as low cost housing? recreation, religion,- etc. Apart from education and health^ the government budget classifications do not' permit any precise estimation of expenditure on other social services. In.

most of the cases, therefore, these data cannot be obtained. The available data of expenditure on other social services that is given in this analysis should be regarded as very incomplete. Considering, however, the stage of development of these countries, the structure of their economies and the relatively small size of their public sector, it may be safely concluded that the expenditure on education and health in these countries probably

accounts for 90/95 Per cent of their total expenditure on all social

services.

1/ New"York, 1958.

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E/CN.14/SDP/6

Page 7

Growth of expenditure

; The period 1950 to I960 is significant for growth analysis. It was around i960 that most of'..the African governments had initiated some kind of

development plans',": These programmes were formulated largely at the instance of i.th.e_JIe.txop_plltan_countries..which desired their aid to African countries

toi-he used systeraati-cally. The- development '"programmes,, therefore, also1.:.. ,

served the purpose of" accountability far. the\external .aid received from mexropolitan countries. These ,early';de.velopment programmes did not ■";... -

constitute "plans" in. the strict sense of the word hut simply represented . . ,

an ^extension of departmental activities.-' The most important aspect, however, ia'that they helped-to provide -some stimulus.to the .economy, marked, for--. ... ..

■the! first time, the-"beginning of a new .era .of -government programming and

eventually paved the .^way for an increasing-recognition, of the 'role .of ..,

The economic distinction "between current and capital expenditure or consumption and investment expenditure has a very restricted value for' growth analysis of expenditure on'social services.' Both of these aspects are: closely intertwined in any expenditure on these services. The construc tion of a school "building is as useful as its maintenance. It is probable that the scale of capital expenditures may be more indicative of qualitative or :structuxal differences in social services such as provision-of education and| health. The,construction of more schools . may reduce overcrowding in-'

olaisses and may* further, improve pupil-teacher ratio. provided, of course,...

thait more trained teachers are recruited. Similarly higher capital

expenditures may be suggestive of more emphasis on technological institutes or institutions of higher learning. The amount of capital required per pupil is much higher for this type of education than for primary education.

Although this study follows the national distinction between current and

development expenditure, yet this separation is not intended to suggest

thajt development expenditure on social services is necessarily more

l/ For a critical account of development plans during this period see Barbu

Niculescu., Colonial Planning, George Allen and Unwin, 1958.

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Page

TABLE I

GROWTH OF TOTAL EXPENDITURE ON SOCIAL SERVICES

.Per cent of

'(total

Expenditures

Per cent of Gross Domestic Product 1956

Increase. in ..

Tbtal Expendi ture - I960

Ratio:1950

For sources and data see country tables in the Annex.

a/ Current, expenditures only.

"b/ For I960 expenditures of local budget only

d/ 1961. , , .

e/ Per cent.of 1954 expenditure to 1956 product, f/ Including" social expenditure financed hj FIDES.

d Bata ^i^St

Increase in Social Service Expenditure -

Ratio: 1950

from £2.4 m in 1954/55 to £3*'6 in southern Kl0desia increased

Cameroun Ghana

Ivory Coast Morocco.

Nigeria ■' •■

Tanganyika

Togo

■■ g/

Southern Rhodesia^

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E/CN,14/SDP/6

Page 9

"productive-'1'than; current'expenditure on these services. The governments.,,

however, seem to follow this .distinction more.seriously in the allocation of their savingsj. loan fundss and external aid.funds for-"development"..

The analytical value of the distinction, therefore,, simply rests in examining the utilization of these, funds,,.

[For purposes ■'&£ comparative analysis, it might have been useful to

express official data on social expenditures into a common currency, e.g., US dollars. Such a course of action is, however, fraught with exchange rate problems and particularly so by the devaluation of the CFA franc during

■the period under review. It is, however, possible to express the expenditure en social services in per cent of total government expenditure and thus

cbtaiji an idea of its relative growth over the period.

The growth of government .total expenditures on social services in absolute terms and in relation to total government expenditures"and gross domestic product at market prices is illustrated in Table I for the period1

1950 to i960. Viewed in current prices the period witnessed a very rapid .

growth of total government expenditures which trebled in five out of eight-- countifies .■ 'The absolute increase in expenditures must be, however, considered again$t the background of the behaviour of internal price levels3 The,

following :data on prices, very sketchy as they are, indicate that the growth in real terms although substantial in all countries, yet was ■ .

probably largest in Ghana and Nigeria. . Other indications also point.out,

taat government expenditures increased .relatively more than exports and

gross domestic product.-^

^he growth of expenditure.on social services was even more spectacular

since!their rate■of expansion was larger than that of total government

expenditures except in Ivory Coast and Morocco., .The data on Ivory Coast

are? of course, incomplete and; hence inconclusive,-.but in Morocco, the slower

growtli'of social services is attributable to a relatively reduced proyisicn

made ifi'or them in the .Government expenditure programmes. Between 1956 and -

1./ Seje Public Finance in African'C ountries, Economic Bulletin for' Africa,

ojji.cit. ■ '■ '- " ■ ; ' . ■ . .:

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E/CN.14/SDP/6

Page 10

I960, however, the share of social services in the gross domestic product had increased in Morocco. By i960, therefore, social services claimed larger part of resources in" most of the countries.. In per cent of total expenditures, the average amount of resources expanded on social services increased from 23 per cent in 1950 "to 26~ Per cent in 3-960.

CONSUMER PRICE INDEX NUMBER 1952 - 100

. I960

/

Ghana . 108

Ivory Coast^/ . ' " 1%

Morocco 12^

Nigeria-^

/ /

122

p / G / ~\ *7 T

Southern Rhodesia—' — '.' .

Tanganyika-'

Source: Statistical Yearbook 1961, United Nations.

a/ Europeans only.

b/ Base year 1953. -

c/ Base year 1955»

The growth of total expenditures and of expenditure on social services was not equally accounted "by the growth of current and development expendi

tures . As far as the total expenditures are concerned, their growth is accounted by relatively■larger increases in current expenditures in Morocco, Tanganyika and probably in Ivory Coast. Total development expenditures had increased faster than current expenditures in Ghana, Nigeria, Southern

Rhodesia and pro"bat>ly in Togo.

The growth of expenditure on social services is mostly explained by very large increases in current expenditures. These increased:- considerably -both in absolute terms and in relation to total- current expenditures. In absolute' terms, development expenditures did register, significant increases in Ghana and Nigeria but their■ relative share in total development resources had increased substantially-only in Tanganyika- It may be noted that the growth of development expenditure on social services was not continuous over the entire period. In most.of. these countries, in general, the upward trend continued until 1956-58*'"but thereafter, this type

of expenditure tended to taper off.

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E/CN.14/SDP/6

Page 11 TABLE II

GROWTH OP CURRENT EXPENDITURE ON SOCIAL SERVICES

Per cent Current

1950

28.82

17.58 34.41 39.58

20.21 14.96 40.26 17.50

of Total Expenditures

I960

29.08 28.38

25.78 27.17

32.73 30.42

57.83

24.05

Increase in Total Current Expenditures

I960 1950

4.02 11.04

5.47

5-13 4.31 2.12 2.33

I.64.

Increase in Total Current Expenditures on Social Services -

I960 1950

4.06

8.84 8.27

3.53

6.97

4.31 3.34 2.25 Cameroun

Ghana Ivory Coa:

Morocco Nigeria Tanganyika

Togo j

Southern Rhodesia

TABLE III

GROWTH OF DEVELOPMENT EXPENDITURE OH SOCIAL SERVICES

1

1

1

:

Cameroun Ghana

Ivory Coast Morocco Nigeria Tanganyiica

Togoc/ -. .'.I

, . 1950

_

19.6

-

17-9 . 15.2

9.9

-.-.- ■ ■ ■,

Southern Rhodesia

a/ 1955-- ' '

b/ 1959.

. i

o/ Expenditure financed d/ 1939 '

1952

e/ I960

1952

2.0

. 22.2

45-7'

-.-7.8 . ,19.1 •

by FIDES.

1954

_

23.0

_

19.8

36.6'

'7*5 / 12.7^7

4.5^

1956

_

17.

31.

12.

25.

14.

1.

2

6 2 0

5

6

1958

_

'18,4

■ —

11.7 16.3

12.7

27.5

7#1

I960

_

20.8 10.5 10.9 10.3

18..V

8.0^

3.5

Increase in Total Develop ment Expendi*

tures -

I960

: 1950 .: ■

_

15.8

10.4

■ 1.4 : . ■ 14.6 , .

/ - 1.1, j

V 2.9^/ : . 2.02/

Increase in Development . Expenditures

. on. Social Services

I960 1950

_

16.8

0.9 9.9 2.1 >

1.2-/

1955

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Page' 12

The nearly static or declining levels of development expenditure on social'services'during the latter half of the'period and their diminished;- relative' importance in i960 is explained by several factors. In the early fifties, when the financial situation, was good, most of the development programmes ..Placed.heavy emphasis on transport, communications and social services. It was largely Relieved that .the provision, of socio-economic infrastructure would create conditions, for further growth. Partly the execution of development' projects lagged behind the 'schedule for shortages .of construction material ^and the lack of sufficient executive capacity but

the expeoted amount of private investment did not cdme forward.

"7 In .the meantime the,pattern of expenditure,_ such;as it was, gave rise to a considerable increase in current expenditures and did not generate any significant tax potential. ..The commodity prices were beginning to

-decline....gradually. after 1954- The increasing current expenditures had, .... . ...

reduced Considerably the savings of governments and they were beginning to

draw'on their accumulated reserves.^ The attainment of .political independence

in Ghana and Morocco during the latter half of the period gave rise to

additional -current- expenditures o-a--services- suoh-as defence,, foreign .affairs,..■■

organs of State, eto. For the first time, finance was emerging as an obstacle to further development. It was under the.se circumstances that

most of the governments were"beginning to reformulate their plans around mid- fifties. Their general mood: was one of "mixed feelings of ..preference for- economic expenditure and of reluctant submission to., diversion of resources

to social services.'^ For example:, "if the'. Gold Coast is to emerge from ; ..

its relatively under-developed condition, further capital expenditure on

"~ social and public' services will "have to be restricted "to projects ancillary"

to those yielding a return, in real resources,11 .

1/ For further discussion of this point see Public Finance in. African,

Countries, op.cit.

2/ Economic Survey of Asia and the Far East I960, United Nations, p.78.

Economic Survey 1955, Gold Coast, Ministry of Finance, 195°".

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TilBLE IV

PRIORITY ACCORDED TO SOCIAL SERVICES IN DEVELOPMENT PLANS ., ['Outlays in, mil-lions ...

Country and Plan .. Total- Plan....Qu.tlay..

(1)

CFA Cameroun,

First Plan (11947-53) Second Plan.(1954-59)

Third Plan (1I96I-65)

Ghana. (£)

First Plan (3(951-57)

Consolidated [Development Plan

(1957-58 arid 1958-59)

Second Development Plan

(1959-64). ■:

Morocco (Franc) 1954-57

1958-59 Plan Nigeria (£)

1955-66 Plan'

Federal Government Western Region Eastern Region . .

Northern Region

Northern-Region (Revised)

1955-62 Plan-

Federal Government 1958-62 Plan

Easte.rn'Region ;. ..,.;■ :

Eastern Region (Revised),

Pl-an-

..Planned. Outlay, on Per cent Outlay on Social Services , Social Services.

(2) - (3) ;: ■■

40,680 54,790 47,500

84.04

18,60

243.17

128,200 89,500

58.27

24.33 4.40 79.13

83.59

78.15

12.74 15.96

5,230 8,280

8,550

17.96

5-51 46.67

40,900 12,400

5.81 10,12 1.50 33..97 ,26.68

7.23

We s tern.Region 68.32

1.37 1.70

8.70

i5.ll 18.00

21.37 29-62 19.19

31.90

13.85

29.489.97

34.09

42.93

31.92

9.25

10.75

10.65

12.73.

l-i

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Page 14

TABLE IV (Cont'd)

Country and Plan Total Plan-Outlay::; -Planned Outlay on Per cent Outlay on Social Services Social Services

(i) :■- ■ (2) (3)

National Development 1962-68 :- '

Federal Government Northern Region Eastern Region Western Region.

Tanganyika (S.)

Ten Year Development Plan.

Revised Plan 1950-56 Development Plan 1955-60

412.50 98.80

■■•■ 75.20 90.30

■ " 10.65

24.45 25.85

Development Plan 1961-62 -

1963-64

Tcgo, Franc3 CFA First Plan. ' / :

1 July 1953 - 30 June 1955 1 July 1955 - 30 June 1959

23.93

2,343 561

1,877

42.15 22.27 11.16 16.00

1.58 2.93s

5.19 4.22

528

78

141

10.22 22.54

14.84

17-72

14.84 11.98

20.08

17.63

22.54 13.90

7.51

a/ Capital outlay only, . . ; - ■ ;

Notesj_ ' " ' ■ ■ ■ '■

Ca.r:ier£un: Source: Plan de d^veloppement Gconomique et social (SOGEP), avril I960.

Ghon.i: Sources: The Consolidation-Development Plan, -Part I, the Government Printer,. - Accra. Second Development Plan, 1959-64, Government Printer, Accra. Total o.utlay

shown in Table IV above against Second Plan excludes a plan provision of-£6.83- ■

million for contingencies.' ' ■■ '

Morocco:Source: Tableaux economiques du Maroc, 1915-59? Service Central des Statistigues.

^^^^ Federal outlay only on government account. Excludes loan outlay ■ and margin, for incurred cost. Similarly for 1955-62 Plan.

Sources: The gecnomic Programme of the Government of the Federation of Nigeria, I955-6O, Federal Government Printer, Lagos. Development of the Western Region of Nigeria, 1955-60, the-Government Printer*, Western Region, Nigeria. Outline of~Sevelopment Plan, 1955-60, the Government Printer, Eastern Region, Nigeria.

A Statement of Policy on the Development Finance Programme, 1955-60, Northern Region of"Nigeria, Government Printer, Kaduna. Fourth Progress Report on the Economic Programme, 1955-62, Federal Government Printer, Lagos. Development Programmes 1958-62, the Government Printer, Eastern Region, Enugu. Revised

Dev_elo_p_ment Programme, 1958-62, the Government Printer, Eastern Region, Enugu.

Western Region Development Plan, 196O-65, the Government Printer, Western Nigeria, Ibadano National Development Plan, 1962-68, the Nigerian National Press Ltd.,

Apapa <•

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Page 15

TABLE V GROWTH OF SCHOOL

Per cent -r£ to til population.)

1950 I960

iCameroun. 5-2—' 8.3

jGhana 5-9 13-5"7 0/

ilvory Coast 1.3^ 6.5

Morocco 2,2 7-6

ilJigeria 4-1^ 8.5^

^Southern Rhodesia 10-3

a/

16,1

Tanganyika 2.9 5-1

Togo 3.8 6.2

Sourcess UH Statistical Yearbooks and US Monthly Bulletins of Statistics

! Annuaire Statistique de I1Union Franoaise, 1949-55•

a/ 1951-

"b/ With estimated population.,

c/ 1959.

I^Fqtes to TA^LE IV (cont'd)

Tanganyika; Sources: A Ten-Year Developmsnt and Welfare Plan for Tanganyika Territory, the Government Printer, Dar-es-Salaam, 1946.

Revised Development and Welfare Plan for Tanganyika, 1950-195°s the Government Printer. Dar-es-Salaam, 1951* Development Plan, I955-196O-, Capital Works Programme, the Government Printer,

Dar-es-Salaam, 1955* Development Plan for Tanganyika, 1961/62-

1963/64 3 the Government Printer, Dar-es-Salaam, 1961.

Tojgo 1 Expenditure financed "by the Fonds d'Investissement pour le developpe-

ment ^oonomique et social ()

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Page 16

The gradual diversion cf resources a*ay from social services may "be observed in Table IV.. Certain caution should be exercised in interpreting the data. Any two consecutive pl-r.s are not necessarily exclusive. In Ghana, Nigeria and Tanganyika plans uere revised very often and the revised plan frequently carried over the uncompleted schemes from the

previous plan. In the Consolidated Plan (1957/58 - 1958/59) of Ghana the uncompleted scheme carried ever from the First Plan accounted for 28 per cent of total outlay. It may he pointed out here that the process of diversion of resources was accompanied hy structural changes in expenditure on social services. In current plans, i.e., formulated around I960, the structure of social services expe^ituxe is very much different compared

to their structure in early fifties.

The growth in financial outlay was accompanied hy the expansion of education and health facilities.. The rate of school enrolment -was faster than that of population growth and was particularly spectacular in Ghana, Morocco and probably in Ivory Coast (Table V). The increase in school

enrolment was largely due to the growth in primary school places. A

majority of governments were persuing a policy of providing universal free primary education and western Nigeria, in particular, had all the popula

tion between the ages 5-14 enrolled in primary schools by 1958, Although the secondary school capacity had to be increased because of the expansion in primary school enrolment, yet the added capacity was far from adequate to absorb all the primary school graduates. The secondary school enrolment as a percentage of primary school enrolment around 1959 was only aboTit 3 per cent in Cameroon, Southern Rhodesia and Togo; and between 5 and 8

per cent in Nigeria, Tanganyika and Ivory CoastM The growth of eeoondary

education was most significant in Ghana where around 1959 secondary school enrolment was about 37 per cent of the enrolment in primary schools. Although considerable resources were devoted to teacher training, yet the supply of trained teachers did not keep pace with the expansion of primary school place:

1/ The Educa

Table 2, MESCO/SDaP/s/4? 1951

(18)

E/CN.14/SDP/6 Page 17

TABLE VI GROWTH OF MEDICAL

Number of Medical Personnel

I960 Caraeroun

Ghajna

Ivojry Coast

Morjocco

Nigjeria

Southern Rhodesia Tanganyika

Togp

1,636 2,490 1,252

527

2,076 7,228 2,218 818 59

Inhabitants per' Medical person

1951 I960

18,425

6,448^/

5,566 10,040 1,861 14,861

16,783

13,78

5>392

15,13?

5,600

4,745 1,384 .11,293 24,407

.0/

Sources: UN Statistical Yearbooks and UN Monthly Bulletins of Statistics.

a/ ,1950.

y 1959.

c/ 1958. -..-...

1/ ^Includes all types, e.g., physicians, dentists, midwives, etc.

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E/CN.14/SDP/6

Page-18 i ■

The supply was helped to some extent by the presence of expatriate teachers but in Ghana and Nigeria particularly the growth of primary school enrol ment was largely fed with retrained teachers. In Ghana, for example, out

°f _15)°44..primar^ .)e^ers 1^-195.9,. 8,088--were untrained or so-called

"pupil teachers"*^ In Nigeria, " "Most "of the 80,000 teachers in primary

schools are.pitifully unprepared for their task, fearly three-quarters - -of-them" are-uhoertifioated}1 and among those who are certificated, tw.o-thirds

have had no nrore than a primary school education themselves. In brie.f, .Jiine-tentfts- of the teachers in primary schools are not properly trained

■ fot. the job". A steady supply of trained teachers was also hindered by the migration^* trained teachers to administrative jobs and commercial

occupations .■=*'

The expansion in health services is partly indicated by the growth of medical personnel (Table VI), Here again the rate of increase outstripped

the population growth but it was very modest. Since the curative health services are more costly, and probably due to shortage of trained medical , .personnels most of ■-the--cvunxvt-ew were ■'concentrating "their resources on

preventive health servicesn ?or iack of comparative data it is difficult to indicate the actual results accomplished in this field,

Structure of exp_e_nditi:-,;g_

Of the total expenditure on social services nearly 95 per cent is spent on-education and health except in Ghana and Southern Rhodesia (Table VII). The general pattern ±z distinctly in favour of more expenditure on education although in 1950 Caraeroun, Ivory Coast and Togo had decidedly placed more emphasis on health. This pattern, however, changed gradually but identically and by I960 these countries were in line with others. The identical character of their evolution is explained by the direct and

definite impact of Prance and the contribution of French funds to development

1/ Ghana, E^o_ajUo^^taJjisticB, 1959, Series I, ¥0.6, December 1959, Table 29 2/ Inve^m^n^n_Sducation_:_ The .Report of the Commission on Post-School

Certificate and Higher Education in Nigeria; I960, p.4o

i/ Investment in Education^ Report of the Commission, Federal Ministry of

Education, Nigeria, I960, Pfl17, and Survey of High Level Manpower of

Ghana i960, p,l6. *" "" ~~" '

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Page 19

TABLE VII

STRUCTURE OF EXPENDITURE' ON SOCIAL SERVICES

(in per cent of Total)

-

Camerbun

.1950 / . .

.\ i-1954? ■

i960 Ghana

1950 1956I960

Ivory Coast 1950

3,954

I960 Morocco

1950

-1956 =

1959 . . , .

Nigeria 1950

1956

I960

Southern Rhodesia—'

1955

1957 1959

Tanganyika 1950

1956

I960

Togo 1950 /

1956^

I960

a/ Including t/ Current e

incurred Rhodesia.

Education

■ 45

46

54

62"

57* ■

47

5f

■--■67

74 68 ; . .

56- ■"■

70 68

(E)35 (A (E)37 (A (E)37 (A

60

63

70

41

53 43

Health Other Social Services

52 -. 50 ■ ■ _ 44

_

40 26 20 - ■

52

: - i' 49

a

26

-■ ■ ■ -32 -■

. ;- 30, . ■ :;-

42 29 31

17 (T

18 T

20 (T

52 31

55 31

57 30

40 37 30

57

44 34

3 4

• • •...

6 12

23" ■■ ■ ,

1' 3

• • ■

1 2

■ ■ i

2 1 1

17

14 13

2 3 23

expenditure "by FIDES.

xpenditure only. Total expenditure on social services includes expenditures

"by the Federal Government on health and non-African education in Southern

As regards education (E): Non-Afrioan; (a)S African* and (T)s Total.

(21)

Page 20

TA3LE VII A

STRUCTURE OF RECURRENT EXPENDITURE ON EDUCATION

;(Per cent distribution)

Administration

Third /-\

Pre-School Secondary Level Other Other

and Primary Education n. .OT, types of Recurrin

or Jiign.er EduCation Expendit' Eduoation

Cameroun, 1959

Ghana, 1957/58'

Morocco, 1957

Nigeria, 1956

Southern Rhodesia, around 1961

Tanganyika, 1958

Togo, 1957 ..

Sources: The Educati Meeting of

2,2 2.6 2.7 8.1

4.0

6.9

1-9 .

.onal Situation

58.8 34-4 51.2

64.4

81.5

44.0

50.9

1 in Africa Today*

23 18 21 23

10 43 12

1961, .2 .0 .1 .0

•3

.6 .4

11.6

33.1 0

11,5 ■ 6

1-5 2

5-6

0

UFESCO/EDAF/s/4 and

Ministers of Education of African Countries, UHESCO/ED/19I

.1 .6 .2./ ■

.4

Final

4.2 ■ 11.8

6.9

■ 0.8

4.2

-—

-34.4-

Report,

(22)

B/CN.14/S.DP/6

Page 21

in these countries. It is interesting to observe that the territories forimerly administered by UK do not show such a close similarity in the evolution of their patterns. Unlike Prance, the British approach to-- development in her former colonies was mainly advisory. These differences majf "be; partly due to an earlier initiation of political processes , leading

towards independence, e.g., self government or the early attainment, of independence itself in former UK territories.

! As regards the expenditure on educations the countries fall' into two

distinct groups. In I960, five-^countries spent around 5? per cent of. the

expenditure on 'social services on education and 'Morocco,, Nigeria and Tanganyika spent around 68 per cent. ■■ ■

Over the period there is a steady growth in the relative allocation of resources to education except in Morocco. On an average, these countries

had allocated 8 per cent more resources to education by i960. The large increase in Nigeria was due to the adoption around 1955 of a polioy of providing free universal primary education. The structure'of current expenditure on education (Table VII A) towards the end of the period was

suph that primary education absorbed the largest single part of the resources

.earmarked for education. It was not unusual that central governments depended

on!local authorities and private schools for the expansion of primary

.education. Of the total expenditure on education in Nigeria a significantly

large part constituted transfer expenditure in the form of grants-in-aid ,

to I private schools and local authorities. Grants for primary school education

were the largest. In Southern Rhodesia also, where a large part of th.e

African population attends missionary schools, nearly three-q_uarters of

i ' ■ 21

educational funds are transferred as grants-in-aid to missionary schools.^

:The proportion of resources allocated to health had diminished in all

countries except in Morocco. The largest decline was probably in Togo and Ghana. The countries of French expression still spent more on health than otters. The reduced allocation of resources to health may be partly

explained by the fact that in. some.countries, particularly in Ghana andT l/ Including Togo, for explanation see below.

2/ The Central African Examiner, Vol.5* No.8, January 1962, p.9.

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E/CN.14/SBP/6

Page 22 '.■

Nigeria,, there was a gradual shift in emphasis from curative to preventive health,services, such as eradication of leprosy, tuberculosis, yellow fever, etc. Comparatively, the unit cost of preventive health services is lower

and they are also less capital intensive compared to curative services.

The countries- are.conspicuous for the lack of expenditure on other social services. The seeming importance of these services in Ghana, Southern Rhodesia and in Togo is probably misleading. In Ghana these items include expenditure on housing which is not altogether undertaken for low income groups or rehabilitation purposes nor does it contain large element of subsidy otherwise. In Southern Rhodesia a large part of this expenditure represents transfers to households and this is believed to be mostly in the form of scholarships and other aid for education. In Togo also it includes transfers to individuals and non-profit making organisa tions for purposes of education. It is therefore, claimed above that expenditure on education in Togo is probably more than 50 per cent of the

total expenditure on social services,

TABLE VIII

DISTRIBUTION OF SOCIAL EXPENDITURE IF NIGERIA

(in per cent of Total)

Federal Government Western Region Eastern Northern Region Region.

1956

Education Health

Other Social

17 (60) 27 (39) 30 ( 1)

Total 20

40 (82) 20 (17) 26 ( 1)

34 '

21(69) 22(29) 34( 2)

22 I960

Education Health

Other Social Total

19 (54) 35 (45) 8 f 1)

24

36 75) 23 (22) 89 ( 3)

32

27.(79) 16 21)

3( -)

23

22

31 10 24

18 26

21

62) 37) 1)

59) 41)

Figures in brackets indicate ..the- pattern of expenditure of respective governments

a/ A large part of this expenditure was on the construction of a sports stadium-

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E/CN.14/SDP/6,

Page 23

1 The data on Nigeria in Table VII conceal the variations...in the regional utilization of funds spent on social services as. w.e.ll, as

variations in the regional patterns of expenditure. Almost one-third of

the total expenditure takes place in the Western Region ('Table VIII). The

low'share of the Federal Government in the total is explained by the constitutional distribution of functionsi Provision of education-and health services is primarily a responsibility of the Regional Governments.

The Federal Government is responsible for providing these'services in Lagos but it also plays a major role in providing higher education, a function which is included in the concurrent legislative list of the■ "

Federation. The Increase in the' Federal Government's share of the total between'1956 and i960 (via 20Jper cent to 24 per cent) reflects the role

played by it. in recent years in .the expansion of university and higher

education. . . ■

! The differences in the regional shares of the total expenditure- ■

reflect largely their varying "economic capacity" and general revenue position. The variations in the patterns; of expenditure, however, suggest differences in policy and iack of:co-ordination in formulating an integrated

national policy. This, as will be explained later, resulted in an unbalanced growth of social .services -in the Regions;

In the Federation of Rhodesia and Nyasaland, the territorial govern ments are constitutionally responsible only for African education except higher education. The responsibility for non-African education and all

1

types of higher education rests with the I Federal Government. The subject of health is on the concurrent legislative list of the Federation but since 1 July 1954 the Federal Government has taken, over complete responsibility in -;his field. In Table VII all current expenditure on social services,

incilirred both by Southern Rhodesia and tiie Federal. Government, in Southern

Rhodesia, has been brought-together and.-it..will be seen that:largest single amoiuht of resources are devoted to the education of minority viz the non- African..population. In.I960, the per pupil expenditure on African" education was;only £9 as compared with.the per pupil expenditure:of £103 incurred by the■Federal Government on non-African education. Relatively higher expenditure

(25)

E/CN,14/SDP/6

Page 24 ■

on non-African education reflects better and more abundant facilities

provided to them; particularly to the European school going population. ..

Financing of social services

As a general rule expenditure on social services is financed from tax revenues of a government. Unlike in developed countries, social

security taxes are practically non-existant in.most of the under-developed countries. There are often some receipts derived from education fees, sale of text books, and charges levied in respect of some health services, etc.. Such receipts are usually very nominal and bear no relationship either to the amount or cost of services provided. Apart from general revenues, internal and external grants also constitute a source of finance.

Social security contributions are collected in Southern Rhodesia but their yield increased only from £0.5 million in 1955 to &>.7 million in 1961,... .This helped to finance 17 per cent of total expenditure on social

services in 1955 and 9 .per cent in 196I. .In Tanganyika special taxes were

levied to finance non-native, education. These yields, were substantial and

nearly met all the expenditures, on such education. .

TANGANYIKA

Receipts from ,non-native education taxes ■

£'000

Fiscal year Yield

. . 1952 _ ... 133

1954/55. . . . 16°

1957/58 .289.

■ 1959/60 291

1960/61

a/ Approved estimates. ■ ■

Source: Tanganyika, Statistical Abstract, 1961.

l/ For an account of the racial bias in education, see Government Expenditure

■ and Racial Discrimination, E/CN.I4/I89.

(26)

E/CN.14/SDP/6

Page 25

TABLE IX

' FfiENCH AID TO TOGO, CAMSROUN AHD IVORY COAST (Credits de paiement)

Billion Metropolitan Francs

■■ .'■■-!

Togo,. Total- Education . Health

Cameroun, Total .Education ..Health

Ivory Coast--/

So,cial Services

Sources: 0utre4Mer

...l.:July

CCFOM

.5.54

34.8

5.05 4-.09

. 1958; p

1946 - 30 June FIDE General . Section

0.15

5.21 .

0-224 0,161

.585, 586, and

1-9 "5S-"'■".-■

S

Overseas Section.

8.79.

65.5

17-45

2.79

p. 600*

Total

■-14

105.

22, ' 7.

•5

•5

.72 .04

FlU US Overseas Section

First-^ Second

Plan.

4-69 . 0.24 0,81 36.48 0.97 1.02

Plan

4.

0 0, 28, 1;

1,

= 10 .18 .22

•45

.83

.81

1955/56 1956/57

1 0

■ 0,

■ 7-

0,

■ ■ o, .23 .07 .02 -19 .46

■50

0.50 0.01

^ - - _;

■ 5.03 •- 0.50 0.50

195

1.

0.

n .

7.

0.

0.

'7/

21 06

nA

42 43 3?

a:^? 1957, p.357.

.?._! The period is 1953-57 (Second Plan)'

0/ The First Hlan commenced"from 1 July 1947 and ended 30 June 1955V The Second Plan

covered the; period from 1 July 1953 to 30 June 1958.' The period 1 July 1953 to 30

June 1955 Was common to ."both the Plans, . _ . .: , ■

(27)

/Cl\M4/SDP/6

26

TABLE IX A

COLONIAL DEVELOPMENT AMD WELFARE SCHEMES (EXCLUDING RESEARCH) Total Issues for period 1 April 1946 to 31 March 1958

£ Thousand

Ghana Nigeria:

Pre-Federation' Federation Northern Region Western Region Eastern Region Tanganyika Total above

Countries Grand Total all

Colonies

Per cent of total Allocation to Above Countries

Total Issues

- 3,992^ (1)/

28,289

16,302

4,090^/

5,512

1,273 '

1,112

7,963 '

40,244

142,163

28,31

E D Primary &

Secondary

(2)

748..

2,723

1,671

309

345

306 92

369

3,840

12,947

29.66

U C A T I Technical Vocational

(3)

-

2,211 ■ 1,638

59 259

183

72 359

2,570

5,543 .

46.36

0 N

& Higher Education

■ (4) "

482^/

- 2,317

36* -■

2,281^

-

-

-

_

2,799

.10,400

26.91

Health

(5) "

212 4,986 3,572 52 579 368

415 737

5,935

15,461

38,39

Other Social Services

(6)

-

-

-

-

-

-

-

18

18

1,874

0.96

Total Social Services

(7)

1,442 12,237

6,917

2,701 I,l8j

857

579

1,483

15,162

46,225-

32.80

(1)

as <fo of (1) (8)

40.14 43.26 42.43

66.04

,21.46 ,67.32 52.07 18.62

37.68

32.52

Sources Colonial Developmept and Welfare Acts, Cmmd. 672, February 1959.

a.J Includes £400,000 of issues made directly to University of Ghana.,;

~d/ Includes £1,717 thousand and £564 thousand of issues made directly to the University

College, Ibadan and Nigerian College of Arts, Science and Technology respectively.

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E/CN.14/SDP/6 \

Page 27

The internal grants were probably less significant although .it is .

probable that in some of the West African countries marketing boards might have: played an important'' role. In Ghana and Nigeria, marketi-ng boards, did

provide substantial resources for development-'but it is difficult to-

identify the.proportion of these funds expended on social services. In Eastern Nigeria, the Eastern Regional Marketing Board undertook to provide a ■■stiin--of- £5.0 million in ten annual .installments for the University of

-. . ^— -.-,..•— — . . .. _.._.__ ■ _

Nigeria".^ The.contributions .started in 1955 and hy the end. of I960, the

Boajfd had provided £3.0. million,

': ' Comprehensive data on total external aid as well as on aid reoeived

for financing social services "'are not available. A special difficulty, is

encountered in' the case of former French territories in Africa' to; .which aid

was given .not only by :th.e. French Treasury but.also through a. .variety of

institutions established by France. The transactions of -all .these agencies and those of territorial administrations were. s.o..closely woven together that froqi.the available data it is difficult to eliminate inter-account transfers

andiestimate net flow of French public funds into her former territories.^

■In. Table IX, therefore, aid given by only FIDES'and CCFOM is shown. Similarly

the .aid .extended by the United Kingdom to he.r former African -territories

through Colonial Development and Welfare Schemes is shown in Table IX A,

1 In former. French West Africa.); the French aid. accounted for 70 per

cent of total public investment between 1947 and 1956* .Jt is, further, estjLma.ted. that, in former French Tropical Africa and Madagascar, French public

fun<tLs; .provided 74 per cent_ of total public resources available for investment

l/ , Between. 1947/4,8 and 19.56/57 the Cocoa Marketing Board" in Ghana contributed '' 17 per cent 'of its profits in the form of loans for. development .and in

! addition.spent. £24.2 million on various cocoa-farming schemes. In

! Nigeria, the marketing boards contributed £24-3 m towards financing of

■ development until the end of 1957- ■■• : ■' ■ ■ ' ■■ - ' • ■.

2/ See Eastern Nigeria Development Plan 1958-62, -' ■ •■ ■ .1 •■-:■.:' .

3/ i" See also pp'. 4'and 5 above. : ."-■■. ■

4/ ! AOF, 1957, P.337-

(29)

E/CN.14/SDP/6 Page 28 : -.

during 1952-57 and,total French funds, private and public, financed 88

per cent of total investment.^ In the former UK territories, the CD and W

funds financed about-17 per cent of total plan outlay around 1955- ^ actual:figures for Ghana, Nigeria and Tanganyika are as follows:

■ ■■'*■■ FINANCING OF DEVELOPMENT -PLANS (AROUND 1955)

£ Thousand

Total Plan Outlay CD and W Funds' Loan Funds Local Besouroe;

Gold Coast (Ghana) ' 81,400 (100) 3,000 ( 4) 23,000 (28) 55,400 (68) Nigeria 48,911 (lOO) -23,739 (48) 15*267 (32) 9,905 (20) Tanganyika ■ .. 24,450 (.100.) . 3,349 (22) 10,000 (4l) 9,101 (37)

■ ^Colonies .■ 526,595'"(100).. 88,038(17) 153,415(44)206,793(39)

Source: Colonial Development and Welfare Acts, January 1955, Cmd. 9375>

- P.24. ■ .

Note: Figures in bracket indicate percentages.

The contribution of CD and W funds to the development effort of

individual British territories varied greatly. Some of the territories relied exclusively on CD and W funds for financing their development plans, while

^ in some cases these funds made only a marginal contribution. The significant impact of these funds in Nigeria is also illustrated in Table IX A where it may be seen that Nigeria was the' largest single beneficiary of these funds up to I958 <■

In the first Ten Year Plan (1947-56) formulated by France for her overseas territories, social services' expenditure (including probably rural ....works and housing) accounted for 27 per cent of total outlay. -Actual .

expenditure on social services, however, during the period 1946-53 was. 15 per cent of the total plan expenditure. In the^Second Plan (1954-58), 20 per cent of the outlay was'earmarked/for social services. .Of the total expenditure incurred by. .FIDES during .1946-53, 21.per.cent was on social services.^ In the case"of" United Kingdoms/of the total CD and W fund" issues 1/ Economic Survey of Africa since 1950, United Nations, 1959TP-216.

2/ Barbu Niculeseu: Colonial Planning, op.cit. pp. 145-148-

(30)

■E/CN.14/SJDP/6

Page- 29

madie td the territories during 1946-58, about 35 per icent were earmarked

for social services.^ This rather high percentage isi not necessarily

indicative of the UK policy towards the determination, of priorities in the development of her former territories. Thje CD arid. W fund policy put the- emphasis mainly on the financing of economic services but -some

i . " !

countries preferred to use their own resources' for.:economic services and

utilized the CD and W funds for social services.-' !Both Ghana and Nigeria

appear!to have used CD and W funds mostly; for

social services (Table IX A).

structure of social service

Although thjere are structural similarities "between the pattern of

external aid..andi the social service expenditure in, the countries under

review: ('Table VII), it is somewhat, difficult to Establish the cause-and-

effect; relationship between the two. However] considering the advisory

appjroach. of UK aid policy, it may be said that t£e; decisions with respect

to priorities were taken largely by the territories themselves. Development planning in former French territories was an integral part of the French

foreign aid policy^ a fact, probably, arising -oja.t pf! the limited local resources available for financing development in these territories. The pattern of

external aid, therefore, determined largely the

expenditure in these countries, ;

Levfels of social services ' ' i ;

■ The point of exercise in this section is; to examine the level of

social services-attained by the 'countries under -review towards the end of

the last decade. The relevant available data for purposes of this analysis are: given in Table X and the1 .countries in this -table are arranged in order of ibheir average per capita gross domestic prjodu&t over the period 1957~59 • Thejpertinent.questions to be investigated are the Amount of resources devoted to social services, the content of 1 social services programmes, the intorj-relationehip between these two factors and .their relation to the economic capacity of these countries as indicated by their respective per capita gross domestic products. ' ■ .

1/ I Colonial Development and Welfare Acts, Cmnd. 672♦

2/ ; See Cmnd. 9375? op.cit.;- ' .'

(31)

E/CN.14/SDP/6

Page30TABLEX

LEVELOFSOCIAL

(Datarefertotheyears SERVICES

"between 1958 and i960)

■ExpenditureonSocialServices.<?0ofGDP Primary.ExpenditureSchoolEn-onEducationrolment<&of-GDP.Ratio SecondLevelEnrolmentRatio- HigherEducationHo.per100,000Population Pupil-ExpenditureTeacheronHealthRatio1oofGDP HumherofInhabitantsperMed.

>erson TaxReve

nueas

SouthernRhodesia

Ghana

IvoryCoast

Kcrocco

Togo

Cameroun

Nigeria

Tanganyika

xotes, E/CE.H/MiAB/ll...:.

Expenditure data are for 1958 and .have .een expressed in per cent of average

period1957-59.Data-forCameroun'andIvoryCoastare-torxy^-ou. drasticproductforthe

a/Africaneducationonly

(32)

E/CN.14/SDP/6

Page 31

lirthe first place to gain: the correct-prospective it may "be noted that the'per capita gross domestic product in Southern Rhodesia is: , ; roughly five times that in Tanganyika. Of the eight countries:,,: seven . spejnd "between- 2.68 and 4 -75 per cent of their gross domestic product ,on

social 'services.1" Alternatively' speaking, six countries spend "between 3 and 4.J5 per cent. The inter-country differences in Jthe amount of resources

al3|bcated' to social services are, therefore* not ver# •significant/. The

mosit notable' exception is Southern Rhodesia which has the highest (within the? group) per capita product. Southern Rhodesia's low figure cannot- be

merely explained by the absence of expenditure on health and on non-African

education. Even if it is assumed that her entire expenditure,.viz. 1.61 per cent of gross domestic product, is on education, still she may be said

to!spend least on education compared to others. The expenditure- on-African education in Southern Rhodesia is largely a matter of policy and is far lesjfs on a per Capita basis than the expenditure on non-African education.

Within the group, therefore, there does not seem to be any firm relation ship between per capita incomes and the amount of resources devoted to social services. Lest it-should be argued that the range of per capita incomes'within the group is not very significant, the African experience may be compared with situations in other countries as illustrated by the following figures. For purposes of comparison only expenditure on health and education in non-African countries is included.

1 ' EXPENDITURE ON EDUCATION AiCD: HEALTH-:IN SELECTED'-NON-AFRICAN COUNTRIES

■ (Per cent of Gross Domestic Product at Market Prices) .

■-■ ■ - ■ 1958

Sweden ... ■ . 3*55

1

United Kingdom : ■ - * ?.l8 '■' ■

Mexico^ ■ ' ■ : - -■' - 1-57 -

Brazil ' ■ ■ ■ ' 2,85 ■

■ Ihdia^/ ' ■ ■ - 2.12

Pakistan^ 1.04.. .

■S'e-urae-s■:■ -UK- Statistical Yearbook 1962,' and■ UN Yearbook of -National ff, 1961. l ■ ■ ■ '■...;..:'■ L.-v". .. .:-...

a/ Gross National Product. .' " " -

b/ Net Domestic Product at factor cost.

(33)

E/CH.14/SDP/6

Page 32

Pour African countries spend relatively more than Sweden and six of them spend more than Brazil, India, Mexico and Pakistan. Tanganyika

although poorer than India, spends more on education and health. UK alone spends significantly more than African countries "but the difference in this

case is largely accounted "by the expenditure on health (3.18 per cent) in UK. The level of expenditure on education in United Kingdom (4-0 per cent)

is quite close to that of Morocco, In 1925? when her per 'capita income was 275 US dollars, UK spent only 3«5 Per cent of her gross national product on education and health.—' In 195^, Ghana, Ivory Coast, Morocco and even Tanganyika, with lower per capita incomes, spent more than UK did in 1925*

The conclusion is obvious. The levels of- expenditures on social services bear little relationship to per capita' income levels. The lack' of.such relationship in under-developed countries is partly explained by the fact that whereas in UK the advancement' in social services followed economic growth, in under-developed countries the growth of these services has■either preceded or accompanied simultaneously economic advance. This has been due to the cultural and social impact of developed countries on under-developed countries and the consequent growth of ideas of equity., social justice and social consciousness in the latter countries. In the African countries, therefore, the level of expenditure on social services has been largely a matter of policy. The only relevant consideration seems to be that of revenue position. The level of expenditure is;seen to increase with higher

tax efforts. ! ■ ' ■

The level of expenditure alone is not a sufficient indicator of the level of social services unless unit costs are taken into account. It has been pointed out that the ratio of teachers' salaries to per capita national income is 4 to 7 i-n Africa compared to 1,5 to 2.5 in Western Europe or

North America.—'2/ The median public expenditure on education per person in Africa is about 2 US dollars compared to £1.40 in selected countries of South East Asia and yet the school enrolment ratios, both at primary and second level, are higher in the latter group of countries,—' Secondary

l/ A.T. Peacock and J. Wiseman: The Growth of Public Expenditure in the

. United Kingdom, Princeton University Press, 19j5l-

2/ Final Report of the Conference of African States 'on the Development of Education in Africa, May 1961, UHESC.O/ED/18I, p.12. . .

3/ Average primary and secondary level enrolment ratios in Africa are 40 and

3 whereas in South East Asia they are 75 and 12. See Tables 1 and 6 in

The Educational Situation in Africa Today, op.cit.

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E/GN.14/SDP/6

Page 33\ '

and .higher.education are particularly very expensive in African countries.

Indifa spends only 1.47 per cent of hex national income on education but

stiil has a larger population of university graduates than most of the

African countries. The high cost of providing social services in African countries'is largely due to the employment of expatriate officials, whose salaries naturally tend to he high, and to the high cost of building and equipment where., import content,is .very, large.. _ The unit cost differentials are also-noticeable among the countries shown in Table X. For example, Togo reaches relatively smaller population, .although she spends relatively as much on education as. Cameroun does. The unit costs are probably still higher in Tanganyika than in Togo. Similary, Ghana reaches a relatively larger population with her expenditure on education than Nigeria and Morocco.

The data,-further suggest that, in general, units costs in countries of French expression are higher than those in countries of English expression.

It Is, of course., plausible that higher unit costs might reflect qualitative differences but. the evidence on pupil-teacher ratio, at least, does not

materially alter the above observations. . .

' : Without exception the countries under review spent relatively more on education than on health. Although remarkable progress was made in the fielld of education, the educational systems, except in Ghana, suffered from a structural imbalance since a large part of resources were spent on. the expansion of primary education. In Nigeria, another deficiency, of.the

educational system was the lack of balance in its geographical'distribution.

While Western Region of Nigeria enrolled 100 per cent of the population in

the in

age group 5-14 in primary schools, the enrolment ratio was only 7-4

1958 in Northern Region of Nigeria.

i The level of secondary education.was extremely low in all countries excjept in Ghana. The establishment of universities and of other institutions of ihigher learning received more emphasis during the latter part of the

dedade and this type of education appears to be.relatively more important in iGhana, Morocco and somewhat in Nigeria.. It gave, however, too little weight to studies based on natural sciences, as is illustrated by the

following figures. .... . .

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