Africa: the crisis of development and the challenge of a new economic order

::■i-.p

AFRICA THE CRISIS OF DEVELOPMENT AND THE CHALLENGE OF A NEW ECONOMIC ORDER

it i

■4t-a

Address delivered by Adebayo Adedeji,

'*ExecutiveSecretary,tothefourthmeetingoftheConferenceofMinistersandthirteenthsessionoftheEconomicCommissionforAfrica

(Kinshasa, 28 February

-3

March 1977)

NATIONS ECONOMICCOMMISSIONFORAFRICA

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CONTENTS

«■-i

c-t

I.INTRODUCTION

II.AFRICA'SDEVELOPMENTPERFORMANCESINCE1960------

III.INCREASINGDISPARITYINECONOMICPERFORMANCEAMONGAFRICANCOUNTRIES---

IV.PROSPECTSFORTHENEXTTWODECADES

V.

THE IMPERATIVE OF A NEW ECONOMIC

ORDERATTHENATIONAL,REGIONALANDINTERNATIONALLEVELS--

VI.THEROLEOFECAINBRINGINGABOUTANEWECONOMICORDERINAFRICA

VII.CONCLUDINGREMARKS---- Page

18

1016

30

34

Mr. Chairman,

•-«,,..*■HonourableMinistersandLeadersofDelegations,Excellencies,DistinguishedLadiesandGentlemen,

I.INTRODUCTIONIshouldliketostartbywarmlyassociatingthesecretariatofECAwiththesentimentsexpressedthismorningbythedistinguishedMinistersofZambia,Mali,MoroccoandtheCentralAfricanEmpireintheirvoteofthankstoHisExcellencyPresidentMobutuSeseSeko.WhenIsaythatmycolleaguesandIdrewalotofinspira

tion from the President's statement, this is not

juStapbHtegesture.Indeed,IdohopethatduringthisfourthmeetingoftheECAConferenceofMinisters,adefiniteandpositivestandwillbetakenonHisExcellency'sproposals.AsthisisthefirsttimethattheConferenceofMinistersismeetingsinceIassumedthedutiesofExecutiveSecretaryoftheEconomicCommissionforAfricasome20monthsago,letmestartbyexpressingmymostsincereandver#greatpleasureinmeetingallofyouatthis-Conference,whichisthefourthMinisterialConferenceandthethirteenthsessionoftheCommission.AlthoughIamnostrangertothemeetingsof-'\eCommission,IhaveuntilnowparticipatedastheleaderofthedelegationofoneofthememberStatesand,rememberingwhatahardtimewealluseatogivethesecretariat,youcanunderstandwhyIamparticularlynervousstandingbeforeyoutoday.Inthisconnexion,Iwouldliketoexpressmymostsincereappreciationtomypredecessor,Mr.RobertGardiner,who,asExecutiveSecretaryoftheCommissionfor

several years, saw the organization' afeVelop from

veryhumblebeginnings.HeservedAfricainparticularandtheinternationalcommunityingeneraltothebestofhisability.Ihavenodoubtthatyouwilljoinmeinwishinghimew^rysuccessinhispost-retirementendeavours.

Ihavehadthepleasureandprivilegeofmeetingmany,ifnotmost,ofyouduringoneortheotherofthefivemeetingsoftheExecutiveCommitteewhichhavebeenheldsincethelastmeetingoftheConference,heldinNairobiinFebruary1975orduringmyvisitstosomeoftheStatesmembersoftheCommission.Ihavealsohadthepleasure^andprivilegeofmeetingyourcolleaguesresponsiblefortrade,industry,education,socialaffairsandforeignaffairsattheirrespectiveconferences.SincetheNairobiConference,theCommissionhasgrowninmembership,reflectingtheemergenceofnewlyindependentAfricanStatesandtheiradmis

sion to the United Nations, I have gr§at pleasure in welcoming to the CortiMsSiflfl Guinea-Bissau, Cape

Verde,theComoros,Mozambique,AngolaandSeychelles.

The total membership of the Commission now stands

at48.Nineteenyearsago,whenECAwasestablished,therewereonlyeightAfricanmemberStates.TherapidgrowthinthemembershipoftheCommissionbetweenthenandnowisdemonstrativeofthecon

siderable success which has been achieved in this

continentinthefieldofpoliticalemancipation.Ilookforwardtothecompletepoliticalemancipa

tion of

our

region in the very near future. As

Ministersresponsiblefordevelopmentandcooperation,yourtask,individuallyandjointly*>throughthisCommission,istoensurethatourachievementinthefieldofdevelopmentmatchesourachievementinthepoliticalfield.TheNairobiConferencetookplaceafewmonthsafterthesixthspecialsessionoftheUnitedNationsGeneralAssembly,whichwasconvenedattheinitiativeofPresidentBoumedienne.Theresolu

tions adopted at that Conference naturally reflect

edtheconcernfeltbymemberStatesabouttheurgencyofusheringforthanewinternationaleconomicorder.Sincethen,asyouareallaware,theseventhspecialsessionhastakenplace;thefourth

session of UNCTAD and the HABITAT

conference

have

comeandgone;andtheMexicoConferenceonEconomic Co-operationamongDevelopingCountrieshasbeenheld.Sincethen,therehasalsobeeninauguratedtheConferenceonInternationalEconomic"o-operation,popularlyknownastheNorth/SouthConference,inParis.Unfortunately,forreasonswhicharewellknowntoyouall,noneoftheseconferenceshassucceededincreatingtheconditionsfornegotiatedstructuralchange.However,alltheseconferencesreflectthegrowingconcernoftheinternationalcommunityabouttheexistingpatternandeffectsofinternationaleconomicrelations,andthespiritofconfrontation,whichmarkedthebeginningofthedebateontherestructuringoftheworldeconomicsystem,appearsto

hive yielded te iner@a§ing awareness and under

standingoftheneedforco-operation,inordertoachieveanewinternationaleconomicsystembasedonequalityandfairplay.

Butwhilewemovefromoneconferencetoanother,thesocialandeconomicconditionsofmanyanAfricancountrycontinuetodeterioratefast.Letmeatthisjunctureaskforyourindul-.-,gence,sinceIintendtospeakplainlyanjlatsomelength.1amspeakingatlengthnot"onlybecausethisismyfirstaddresstotheConference,butalsobecausethereissomuchstocktakingwhichneedstobedone,v>muchagonizingreappraisaltobeundertaken,t-urthermore,IamspeakingplainlyandfranklybecauseIoweyouandyourGovernments,aswellasthepeopleofAfrica,thesacreddutyofputtingallthefactsasIseethem,nomatterhowunpalatable,atyourdisposal.

ThereisnogainsayingthefactthatAfricacannotaffordtocontinuetoperfwrp1nthefieldofdevelopmentduringthenextdeca'deortwoatthesamerateasinthelast15yearsorso.Ifitdoes,theAfricaregionwillbeamuchpoorerrelationoftherestoftheworldthanitisnow;thegapbetweenitandtherestoftheworldwillbewider,anditseconomicandtechnological

backwardness will be much more pronounced.

I

shud

dertothinkoftheimplicationsofthisforsocialandpoliticalstabilityintheregion.

II. AFRICA'S DEVELOPMENT PERFORMANCE SINCE 1960

S

During the past year we have prepared

a

y of c **r ,nri Social Conditions JnAfnca for T9767"ThTs-3uT-vey_ covers a much wider ground than its title in"oTEatis: it also includes the third bi- ennia review' and appraisal of social and economic performance in the Africa region during the Second UniteS Nations Development Decade The review is

notonlyretrospective,butalsofocusesonpros-

Mct« fir the rest of the 1970s as the beginning of fanning for the thirdUnited HaMbUS Dmlafmnt

Decade.Inaddition,theECAsecretariathas■»«re

cently been undertaking

a

PreVirnijiarxassKsmeni

ATHcaThiTTsinresponsetoUnitedNations

glnirli Assembly resolution 3508 (XXX) in wiich the Assembly called on the regional commissions to "prepare studies on the.long-tern trends in and

forecastsoftheeconomicdevelopmentoftheirre

active regions, taking into account the national development programmes of individual countries of the region and the particular characteristics and

prioritiesoftheregions.

Both the Survey and the "Preliminary assessment" show°abundeantT7^early how poor Africa s per onn-

anrphasbeeninthelastdecadeandahalf,ana

how dim the prospects are for the rest of the cen tury assuming the persistence of the present mix of nubile policies in most African countries and SssSming also the continuation of the.present inter national economic system. Even if third world countries succeed in bringing about a fundamental restructuring in the world economic order, unless thfre is a corresponding restructuring of the eco nomic order at the national andregionaI lew Is in Afr ca, the region as a whole will benefit only

marginally,ifatall,fromthechangesintheworldorder.Whatarethefactsasfarasperformancesince1960isconcerned?Beforestatingthefactsasi•seethemintheECAsecretariat,letmeintroduceanoteofcaution.Asyouallknowfullwell,reliableandup-to-datedataoneconomicandsocialconditionsaredifficulttocomebyinmanyAfricancountries.Andinastudythatstretchesoveraslongaspanas15years,thereareconsiderablegapsinthestatisticalseriesandavailabilityofdata.Butinspiteofthis,thepicturewhichIamgoingtopresentisbasicallytrueoftheregion.ThesalientfeaturesoftheAfricaneconorny

during the period 1960-1975 can be summarized as

follows:first,becauseoftheexcessiveexternaldependenceoftheAfricaneconomy,developmenthasbeensubstantiallyaffectedbycyclicalfluctuationsintheeconomiesoftheindustrializedcountries,particularlyOECDmembercountries,whichformthemajorexportmarketsforAfricancountries.ThisdependenceissopervasivethattheupswingsanddownswingsintheindustrializedmarketeconomiesaffectthevaluesofAfricanexports,thetermsoftrade,thecostandvalueofimports,thelevelofinflation,and,ultimatelythetrendsandlevelsofGDP.Indeeditcanbetrutufinlysaidthatbecauseofourexcessiveexter;.■dependence,eachtimetheindustrializedmarketeconomiessneeze,theAfricaneconomiescatchpneumonia!Thesecondfeatureisthatfortheperiodbetween1960and1975,Africaasawholeachievedanaverageannualgrowthrateofonly4.9percentperannum.DuringthefirstUnitedNationsDevelopmentDecade,1960-1970,theaveragewas5percentperannum,butduringthefirsthalfoftheS?'jCADevelopmentDecadetheaveragefellto4.5percent.Athirdfeatureisthatofinflation,whichacceleratedsubstantiallyinthe"iatterpartofthe1960sandthefirsthalfofthe1970s.In

consequenceoftheexcessiveexternaldependenceoftheAfricaneconomy,agoodpartortneinflationwasimported.Coupledwith

the recession,

inflation

led to

asharp

fall

inthevalueafexportcommoditiesandasteep

rise in

tivevalue

of

imports,seriously

af-

fectinqgovernmentrevenuefromexportandimportduties.Partlyinconsequence,wagesandsalariesweresubstantiallyincreasedin

many

countries,andattemptsweremade

to

subsidizeessentialconsumergoodswithattendantlargeincreasesinpublicexpenditure.ManyanAfricanGovernmenthadtoresortto

deficit financing, which inevitably aggravated

theinflationarypressure*

A fourth feature

is

the rapidly growing debt burden of many African States. During the past

15years,moreandmoreAfricanStateshaveun

fortunately had to learn to live with this phenom enon. The

regions

debt burden rose from $US

7

billion in 1965 to more than $US 28 billion in 1974 As a result, outlays for interest and amort ization charges represent

a

rapidly growing percent

ageoftotalexportearnings,amountingtoasmuchas30percentforsomeAfricancountries,incon

trast to the World Bank's 10 per cent ceiling.

Jhissituationisaggravatedbythefactthatforanumberofcountriestheforeigncurrenciesinwhich

some of their debt obligations are denominated have

appreciated,producingbigincreasesinthecostofdebtservicing.Consequently,manyAfricancountrieshavehadnooptionotherthantoborrowonashort-termbasis,orrundowntheirmeagrereserves,

or both. Unfortunately, on this vital issue of the crippling debt burden no meaningful resolution could be adopted at the fourth session of UNCTAD. And what

is

even worse, with respect to other related issues such as the provision of an adequate flow of

developmentfinanceandthereformof^interna

tional monetary system, UNCTAD cou

d

not bring it

selftoadoptanyresolutionatall. Thefifthandperhapsthemostseriousfeatureistheslowgrowthinagriculturalproduction,on

which over four fifths Of our entire population

dependsandwhichformostcountriesisthemamsourceofforeignexchangeearningsandpublicrevenue.Thisdisappointingperformanceintheagriculturalsector,accentuatedbydrought,alsoledtoincreasedfoodimportsathighprices,thusworseningtheprecariousbalance-of-paymentspositionofmostcountries.

Thus economic performance in Africa has fallen

substantiallybelowthetargetssetintheStrategyfortheSecondUnitedNationsDevelopmentnec-ade.Youwillrecallthatthetargetannual,

growth in GDP at constant prices laid down in tne

Strategyis6percent;about7percentforimportsandexports;halfapercentagepointriseyearlyintheratioofgrossdomesticsavingstothegrossproduct;4percentforagriculture;and8percentformanufacturing.Africasperformancefellbelowthevarioustargets,exceptinimports,whereitacceleratedto10percentyearlybetween1970and1975from4.4percentperannumduringtheperiod1960-1970,cogipareGwithadecelerationinexportgrowth_to-2.8nercentyearlyduringtheperiod1970-1-975from7.8percentperannumduringthefirstDevelopmentDecade.__'■■•ThustherehasbeennomarkedimprovementinmanyAfricaneconomiessince1960.TheAfricaneconomytodaystillexhibitsallthecharacteristicsofunderdevelopment.AndAfricahasfared:worsethantheotherregionsofthedevelopingworld.TheaverageannualratesofgrowthofGDPweresubstantiallyhigherinLatinAmeria,the

Middle East, East and South-east

Ayj

and the

Pa

cific than they have been in Africa. Only in South Asia (the Indian subcontinent and Burma)

werethegrowthrateslowerthanthoseofAfrica.Similarly,performanceinboththeagriculturalandthemanufacturingsectorswasbetterinthe

otherthirdworldregions,whichhavemanagedtoachievehigherannualratesofgrowthinthemanufacturingindustrythanthetargetrateof8percentoftheSecondDevelopmentDecade.Theratesofincreaseinfoodproductionintheseregionswerealsogenerallyabovetheratesofincreaseintheirpopulation.Africa,morethantheotherthirdworldregions,isthusfacedwithadevelopmentcrisisofgreatportent.Inspiteoftheregion'samplenaturalresourcesandafavourablepopulation-to-natural-resourcesratio,inspiteofthegenerousandevenundiscriminatingincentivesforforeignprivateenterprise,inspiteofourparticipationinnumerousconferences,bothregionalandinterregional,andinspiteofouradherencetoorthodoxtheoriesandprescriptions-inspiteofallthis,neitherhighratesofgrowthnordiversificationnoranincreasingmeasureofself-relianceanddynamismseemtobewithinourreach.AsIshallindicateshortly,itstilllieswithinthepowerofmemberStatestoalleviatethedebtburdenandbuildintothesocio-economicsystemcapabilitiesforescapingfromthisgravesituation.

III.INCREASINGDISPARITYINECONOMICPERFORMANCEAMONGAFRICANCOUNTRIES^

Theover-allpictureoftheeconomicperformanceofAfricaduringthepastdecadeandahalfofcourseconcealslargedifferencesasbetweenthedifferentsubregionsandgroupsofcountries.EvenourusualclassificationbysubregiondoesnotthrowenoughlightontheincreasingeconomicdisparitiesamongAfricancountries.Consequently,inthe"Preliminaryassessment"towhichIreferredearlier,wehaveclassifiedAfricancountriesintofiveeconomicallymor*meaningfulcategories.Thereis,first,thegroupofmajoroilexporters-Algeria,Gabon,theLibyanArabRepublicandNigeria.Thenon-oil-*xportingcountriesareclassifiedintofourcroupsonthe

8 basisofpercapitaincome:$US300-400;SUS200-300;$USTOO-200;andbelow$US100.Ofthe41non-oil-exportingcountriesforwhichdataareavailable,fivecountries-the.Congo,theIvoryCoast,SaoTomeandPrincipe,TunisiaandZambia-belongtothefirstpercapitaincomecategory($US300-400);11countries-CapeVerde,Egypt,EquatorialGuinea,Ghana,Guinea-Bissau,Liberia,Mauritius,Morocco,Mozambique,SenegalandSwaziland-belongtothesecondcategory($US200-300);another11countries-Botswana,theCentralAfricanEmpire,theGambia,Kenya,Madagascar,Mauritania,SierraLeone,theSudan,Togo,UgandaandtheUnitedRepublicofCameroon-belongtothe$US100-20Qin-comrangegroup.Thelastgroup,withpercapitaincomesofbelow$US100,consistsof14countries.TheseareBenin,Burundi,Chad,Ethiopia,Guinea,Lesotho,Malawi,Mali,theNiger,Rwanda,Somalia,theUnitedRepublicofTanzania,theupperVoltaandZaire.Thevaryingperformanceofthesefivegroupsofcountriesismostrevealing(seetable1)Whereasthefourmajoroil-exportingcountriesandthefivecountriesinthe$US300-400groupachievedaveragegrowthratesof6.9and5*8percentperannumrespectivelybetween1960and1975,the14countrieswhosepercapitaincomeisbelow$US100achievedonly2.6percentgrowthperannum.Inotherwords,thislattergrot,".'ofcountriesachievednogrowthatallonapercapitabasisduringthe15yearperiod.Indeed,whendueaccountistakenofpopulationgrowthinthesecountries,itisclearthattheireconomieshavebeendeclining.The22countriesinthepercapitaincomerangesof$US100to$US300achievedaveragegrowthof4.1percentperannum,witha1.4percentperannumincreaseinpercapitaincomp-rjTheimplicationsareclearand,ofcourse,rathersombre.Inonly9Africancountrieshavethegrowth,ratesachievedduringthepast15yearsbeensuchastobringaboutarelativelysubstantialincreaseinrealpercapitaincome.Itisthesecountriesthat

9

Table1:AnnualaveragegrowthinrealGDP

(per centT

1960-1970 1970-1975 1962-1975

Majoroilexporters

Non-oil-exportingcountries(percapita) 6.97.06.9

$US300-400$US200-300>US100-200

Below $US 100

6.53.54.32.5 4.35.03.82,8 5.84.14.12.6Averagefornon-oil-exportingcountries4.93.64.0AveragefordevelopingAfrica5.04.54.9

Source:ECAestimates.

havemoreorlessachievedthetargetrateofgrowthsetundertheSecondUnitedNationsDevelopmentDecade.

IV.PROSPECTSFORTHENEXTTWODECADESInthe"Preliminaryassessment".theECAsecretariathasalsoattemptedanextremelytentativeprojectionofprospectsfortheAfricaneconomy.IfpasttrendspersistandiftherearenofundamentalchangesinthemixofeconomicpoliciesthatAfricanGovernmentshavepursuedduringthepastdecadeandahalf,andifthecurrenteffortstofundamentallychangetheinternationaleconomicsystemfailtoyieldconcretepositiveresults,theAfricaregionasawholewillbeworseoffcomparedwiththerestoftheworldattheendofthiscenturythanitwasin1960.EventheoverallaverageGDPgrowthrateofdevelopingAfrican

10 Table2:ForecastsofgrowthinGDPtotheyear2000andther?1-atlvesharesintotalGDPofdevelopingAfricancountries,classifiedaccordingtodefinedincomegroups'

Countriesgroupedbyincomecategoryat1970prices forecastannualgrowthratea/ Shares1ntotalGOPofdevelopingAfrica(perr.-*-"t)

1975198019902000

MajoroilexportersNon-on-export1ngcountries(percapita): 7.534.537.945.052.2

|US300-400i\i%208-300$US100-200BelowJUS100

Totalnon-o1l-export1ngcountriesTotaldevelopingAfrica

Source:ECAestimates. 6.0S.O4.02.54.45.5 8.630.213.613.165.5100.0 8.829.412.611.362.1^100.0 9,027.210.68.255.0100.0

a/Estimatesbasedontrendsandpolicies 8.824.58.75.847.8100.Ghistorical

n

countrieswillstillfallbelowthetargetratesetundertheSecondDevelopmentDecade.Onthebasisoftheaboveassumptions,weestimatetheaverageannualgrowthratetobe5.5percentfortherestofthecentury(seetable2).And,withinAfrica,ourestimatesrevealprospectsofevengreaterdisparitiesinincomesandlevelsofdevelopmentamongthecountries.ForecastsofGDPshowthattherecouldbeanacceleratedgrowthrateof7.5percentyearlyforthemajoroil-exportingcountriesduringthenextfewyearsorso,withfurtheraccelerationlaterinthe1980s.Amongthenon-oil-exportingcountries,thosewithparcapitaineomesofover$US300at1970pricesarelikelytoexperienceanacceleratedgrowthrateof6percentyearlyto1980andduringthefollowingdecade.Similarly,thereislikelytobeanaccelerationto5percentyearlyinthosecountrieswithpercapitaincomesofbetween$US200and$US300.However,thegroupofcountrieswithpercapitaincomesofbetween$US100and$US200willbeabletorecordagrowthrateofonly4percentyearly,andforthosecountrieswithpercapitaincomesat1970pricesofbelow$US100,theprospectisforcontinuedstagnationorevenadecelerationintheirgrowthratetobelowthegrowthrate,ofpopulation.IcouldgoonsomemorewiththissombrepicturebutIdonotwishtogiveyoutheimpressionofinevitabledoom.Thehazardsofprojectionsofthiskindindevelopedcountriesarewellknown;indevelopingcountriestheyareevenlessreliable.Themultipliereffectsofasinglemultipurposedaminadevelopingcountryareonething,andinahighlydevelopedcountry,another.Ifeltitnecessarytofollowthroughwiththesefiguresinordertoheightenoursenseoftheurgencyandtheextentofsocialandeconomicengineeringthatliesinfront.ofus.Leavingtheseasideforthemoment,itismyconvictionthatifmemberStatesareresoluteenoughto takefirmstepstoinstitutecontrolsoverimportedtechnology,andifindoingsotheytakefulladvantageofknowledgeandexperiencenowavailable,inthisfield,therewill,withinashortperiod,beconsiderablesavingsinforeignexchangeexpenditure.Similarly,ifmemberStatesreallybuckledowntothetaskofpromotingandusingnationalandmultinationalconsultancyservices,considerableadditionalsavingsinforeignexchangeexpenditurecanbeeffected.Atpresent,memberStatesspendlargeandincreasingsumsonforeignconsultancyservices,inadditiontosumsspentontheirbehalfbyUNDP,theWorldBankandthebilateralsinthepurchaseoftheseservi..«».Wecangofurther.Lastyearweestimatedthatlessthan5percentofAfrica'ssea-bornecargowasbeingcarriedbyAfrican-ownedshippinglines.WebelievethattheefficientdevelopmentofAfrican-ownedandAfrican-managedshippinglines,-including,wherenecessary,multinationalcooperationintraining,intheprovisionandoperationofsupportservices,inprogrammingtheoptimumuseofcargocapacity,inthechoiceofsu.t-ablevesselsandsoon,-wouldalso,considerablyreducethepresentlevelofforeignexchangeexpenditureandcommitments.Indeed,inrespectofshippurchase,webelieveco-operationcaneffecteconomiesintheterms-ofacquis1'ionwhicharebetterthanthoseopentoindividualcountries.

Again,thereisconsiderableelbow-roomforimprovingthetermsunderwhichlicencesaregrantedtoprivatesectorcompanies-whetherforeignorindigenous-fortheexploitationofnaturalresourcesforexport.Minerals,petroleum,uranium,forestproductsandfisheryresourcesar?allbeingextractedonanincreaci-OOtalewithlittletoshowinthewayofself-sustainingdevelopment.Evenwithoutproducers1associations,thereisstillroomforsecuringbetteryieldsinrealandfinancialtermsfromwhatseemtobe<?•haustibleandrapidlydisappearingresources.■

12 13

shallrefertothissubjectlater.Fornow,itissufficientmerelytonotethatbetterlegislation,improvednegotiatingcapabilitiesandfeweronesidedagreementsca,nstillcontributetothenetresourcespicture.4Wecouldaddtothislistnotonlycivilaviationandinsurance,butalsootherareasinwhichconsideredandresoluteactioncouldsubstantiallyrelievethebalance-of-paymentsproblem,and,evenifmerelyoncurrentaccount,halttheaccumulationofexternaldebt.Ifwethenincludeinthislistimaginativeandvigorousstepstoimprovefoodproductionandreducefoodwastage,wemightwellbegintobreathemoreeasily,Idonotforamoment

support the view that African farmer* are, 1ti §@fl-

eral,reluctanttoacceptandapplyinnovations.Duringthepost-warperiodtheyhaveacceptednewcrops,newproductionmethodsandinputs,newprocessesofcroppingandstorageandnewmarketingsystems.ThiscaninnowaybematchedbyurbandwellersinAfrica.ForalloftheseproposalsthereareactionprojectsprovidedintheCommission'sworkprogramme,whichhasjustbeenexamined,amendedandapprovedbytheTechnicalCommitteeofExperts.ButareGovernmentsreallyreadytocommitthemselvesto^

action?

I

ask this question because the most

fun-*"damentalmeasureisnotreallysomuchcuttingdownforeignexchangecommitmentsorsecuringlargernetinflows,asensuringthechannellingofresourcestoproductivesectorsandtothepromotionofstructuralchange.Thisistheheartofthestrategypropositionsputforwardinthe"RevisedframeworkofprinciplesfortheimplementationofthenewinternationaleconomicorderinAfrica,1976-1981-1986"(E/CN.14/ECO/90/Rev.3);inthe"Medium-termplanfor1976-1981"(E/CN.14/TECO/31/Rev.2);inthe"Programmeofworkandprioritiesfor1976and1977"(E/CN.14/TEC0/34/Rev.l);andinthe"Programmeofworkandprioritiesfor1978and1979"(E/CN.14/TECO/35/Rev.T).Allthesearenow.beforethisConference..

14 Withregardtothedeploymentanduseofresources,wemaynoteanationaldimensionaswellasaregionaldimension.Atthenationallevelwehave,inthe"Revisedframeworkofprinciples",drawnattentiontosuchunfamiliarissuesascompanypoliciesrelatingtodistributedprofits,allocationtoreservesandreinvestmentofdepreciationfunds.Wecouldaddseveralothers,includingthelargeexpenditureonthecreationandmaintenanceofwelfareservicesinafewurbancentresattheexpenseoftherestofthecountry.Wehave,intheworkprogrammes,suggestedtheneedforre-examinationofthewaydevelopmentbanksareorganizedandthewayinwhichtheyfunctionInrelationtenationalprioritiesandtargets.Wehavealsosuggestedthatthetimehascometoconsiderhownon-bankingfinancialinstitutions,commercialbanks,insurancefunds,etc.,cancontributetothefinancingofnationalpriorityprojects.Attheregionallevel,wehavedrawnattentiontonewpossibilities.Apartfromconventionalarrangementsforclearinghouses,wesuggesttheneedtoconsidersubregionalco-operation*inthemanagementofmonetaryreservesandothershort-terminternationalassets;thesettingupofanintra-AfricanDevelopmentAidSystemforthepurposeofconcentrating-scarcesk..»sandresources>theestablishmentofmultinationalminingandindustrialdevelopmentbankstoorganizethesophisticatedpackagesoffinanceforminingandmultinationalindustriesonthemassivescalesthatare,inmanycases,unavoidabletoday.Nationalandsubregionaldevelopmentbanks,centralbanks,insurancecompaniesandthelikecouldcontributetotheresourcesofthesespeciality*,banks.

Thisproposalis,incidentally,matchedbyanother:thecreationofAfricanmultinationalcorporationsintheminingandindustrialfieldsBabletonegotiatejointventureswithforeigncompanies;tonegotiatetechnologyagreements;to

15 t!

organizesubcontractingarrangementswithnationalcompaniesforthesupplyofcomponentsformultinationalenterprises;andtoencouragetechnologicalresearchandinnovation,«|anizeconsultancy

services and promote standardlption and quality

controlwithinthesectorsinwhichtheyoperate.

V.THEIMPERATIVEOFANEWECONOMICORDERATTHENATIONAL,REGIONALANDINTERNATIONALLEVELSItwillnowhavebecomecrystalclearthat,ifwearettfreversethepastandpresenttrendsoflowdevelopmentandacceleratetheratesofsocio-economicadvancement,wewillneedtoinstall,first,atthenationallevel,aneweconomicorder

based on the principles ef self-reliance and self*

sustainment.Thiswillrequireconfidence1nourcapabilitiestofreeournationaleconomiesfromtheshacklesofexcessiveexternaldependence,andtheinstitutionofanewsocio-economicorderwithinourcountrieswhichmaximizesnotonlytherateofdevelopment,butalsosocialjusticeandequity.

Regionally,thereisanurgentneedforconcentratingonachievinganincreasingmeasureofcollectiveself-relianceamongAfricanStates.Imakenoapologiesforreiteratingmynowwell-knownviewthat,inspiteofthedifficultieswhichhave^beenandarebeingencounteredindifferentparts^ofAfricaandindifferenteconomicco-operationarrangements,thereisnoviablealternativetointra-Africanco-operation.Indeed,economicco-operationamongAfricanStatesisasinequanonfortheachievementofnationalsocio-economicgoals,andnotan"extra"tobegiventhoughttoaftertheprocessofdevelopmentiswelladvanced.AfricanStateshavealsotolearnverysoonhowtoinsulateeconomicco-operationinstitutionsandarrangementsfromthevagariesofpoliticaldifferences.Ishallhavealottosayaboutthisandtherelatedissueofaneweconomicorderatthenationalandregionallevelslater.Meanwhile,Iwouldlike toturnattentiontothedemandsbythedevelopingcountriesforanewinternationaleconomicorder.SomuchhasbeenwrittenonthissubjectthatIfeelobligedtooutlineourinterpretationofitsmajorpropositions,inordertoavoidconfusionandfuzzinessinourdeliberations.UntiltheMexicoConferenceonEconomiccooperationamongDevelopingCountries,theinternationaleconomicorderseemstohavebeendominatedbybilateraleconomicrelationsbetweentheadvancedIndustrialmarketeconomiesandthirdworldcountries.Directeconomicrelationsamongthirdworldcountries,andbetweenthemandsocialistcountries,haveeitherbeenabsentormarginal*The

deveiopent and economic growth of third world coun

trieswassupposedtobedeterminedsolelybytheneteffectsoftradebetweenthemandtheindustrializedcountries.Itwasnotclearlyperceivedthatthiswasinsufficienttobringaboutdomesticsocio-economictransformation,withoutwhichthirdworldcountrieswouldcontinuetobeappendagesofindividualadvancedcountries.Aswenowknowwithhindsight,suchdependencereducesthefreedomofactionofthirdworldcountriesintheirendeavourstorestructuretheireconomies.

Forover15yearsithasbeenarguedandgenerallybelievedthatthecontinuino,healthandincreasingprosperityo?theadvancedcountries,andinparticulartheirsuccessinovercominginflationandbalance-of-paymentsproblems,werenecessaryandsufficientconditionsforthedevelopmentandeconomicgrowthofAfricancountries.However5theadvancedcountrieshavebeenunabletosolvetheproblemsofinflationandbalanceofpayments.WhatinfacthashappenedisthattheeconomicillsofthedevelopedworldhaveueentOfjftittedtoAfricancountries.Ourcountrieshavebeenseverelyhitbypooreconomicmanagementinmanydevelopedcountries,whichbyrapidlyincreasingthepric:softheirexportedmanufacturedgoods,havesuccessfullytransferredtheirinflationaryproblems.

16 \7

Itis

therefore imperative that African States

shouldreformulatetheirpolicies•ndeconomic

strategies and instruments with a view to promot ing national and collective self-reliance. This

smoreurgentnowthanwasforeseenfouryears

agoTwhen the OAU Assembly of Heads of State and Government adopted the African Declaration on Co- o?era?ion. Development and Economic Independence.

I

intend to illustrate below some of the meas ures which need to be taken at the national, mufti national and interregional levels for the

achievementoftheseobjectives.

As regards the bilateral structure of interna tional iconomic relations, to ^SM.M^ILh. earlier, there is tisarly «8 fusibility Of avoid ing changes which will facilitate the broadening of such delations to include other developing re gions and the socialist countries.

In

operation-

aitermsthiswillaffectexistingproduction,

d station anWd financial as well as banking arrangements and the pattern and management of international maritime transport, civil aviation,

communications,andbankingandinsurance.

It is not yet clear - in spite of Manila. Colombo, Mexico, the fourth session of UNCTAD. the North-South dialogue and the emergence of the Middle East as a world financial centre art a market of enormous, promise fo;.||^"« dvaS«d

developingcountriesalike-thattheadvanced

countries are anywhere near the recognition of the need for a fundamental restructuring of,int,er" national economic relations and of the ^vantages of

a

positive and energetic approach

towardswhat

has been called negotiated structural change. Nor

is

it clear that the countries which, by effective and close control

over

external economic relations, have

succeeded

in achieving

momentum

in

thearowthanddiversificationoftheireconomies,arewUling

to assist this process of structural change in international economic relations in more than a

highlyselectiveortokensense.-

.18 Therestructuringofint..iiu-lui.dUtionsisfrequentlydescribedintermsoftvre-

soSrce flowri.e.of correcting the largely unan- cial terms in which the comparative advantages of the third world, particularly in raw materials and potential markers, are traded for the comparative

advantagesoftheadvancedworld.Animportant

difficulty

in

discussing this issue in relation

toself-sustainmentandself-rel.ianceinsocio-economicchangeisthattheaggregativeapproachtonetresourceflowsignoresproblemsoftheselection,sup

ply and organization of the real factor inputs which

canmakesuchself-sustainmentandself-reliance

possible.

In

our reviews of the process of develop

mentandeconomicgrowthinotherdevelopingcoun

tries and regions* we have come to doubt the conten*

t1onimplicitintheworkofinternationalconferencesthatitispossibletoconceivethenewinter

national economic order as merely

amatterof

in creased Inflows of real resources or the mechanical

juxtapositionofthefactorsofproductionwithoutregardtothenatureandcompositionofthenational

product or its distribution effect. We have come to

theconclusionthatthepurposestowhichtheyareappliedareasimportant,ifnotmoreimportant,thantheirquantum.Webelievethatrecentdiscussionsoftechnologytransferandadaptationandoftheroleoftransnationalcorporationssupportthisview.

Furthermore, we believe that there is a hidden

psychologicalfactor:there-acquisitionofconfidenceinidentifying,definingandsolvingsocio:economicproblems;insocialandmaterialinventionandinnovationandtheirdiffusion.Itmaythusuethatamajorbutasyetunder-recognizedinputforth°establishmentofanewinternationaleconomicorderistherecoveryofself-confijencebythiraworld,andparticularlyAfricancountries,therefore,asubjectofhighpriorityforstudybydevelopingcountriesinAfricamaywellbetnemeansbywhichsuchself-confidencecanbespeedilyrecovered.19

Accordingly, the secretariat's approach to the

for the new international economic order. Indeed,

SrtnStion.1deve^htP1.nsinAfr,«imgicit

evenout-of-date);andfor

SVS tSi tn.tr own). In o;d,r tj bring „ .bout.,Ig.HW «»" »f self-suit.i nn SSi daw and > rwcuH. '•!"•''

sssfoir srsra nroposlto you for special consideration. These

mainlyconcernhumanresources,naturalresources,

technology, finance, capital goods and services and

markets.

We begin with the most fundamental of all re

sourceinputs-manpower.•■

20

One qualitative factor may be noted.

I

should

liketoasktobeforgivenforquotingfromthe

"Revised framework of principles'. "The first aspect

is

that the socio-economic changes

implied

in strategies of accelerated

growthanddiversificationwhenassociatedwith

measures for increasing self-reliance imply wide

spreadandcontinuousinnovation.Whenecono

mists speak of "linkages",

"spreadeffects,"balancedandunbalancedgrowth",theyrefertodifferentwaysoflookingattheprocessofinnovation.Unlessinclinationstowardsinnovativethinkingandactionarebuiltintoeducationalsystems(whetherformalornon-formal)it

1s unlikely that the acceleration and diversifi

cationsoughtaftercantakeplace.Itisevenmoreunlikelythatanymeaningfuldegreeofself-reliancecanbeachieved,"Inadditiontothisdeficiencywenotesomeremarkablegapsinthesubjectstructureofhigher

education. Until these are repaired it is

difficulttoseewherewecansecureasupplyofmetallurgicalengineers,specialistsinthescience^ndtechnologyofmaterials,designengineers*,ribretechnologists,chemicalengineers,pulpandpaper

technologists,

food

technologists, foundry technol

ogists,productionengineers,specialistsinbusinessfinance,inindustrialman;/-mentandmarketing,inqualitycontrolengineering,inbankingandinsurance,inshippingmanagementandeconomics,tonameonlyaveryfew-Wherearethetechnicianspecialists,capableofreadingandinterpretingblueprints,ofsettingupandmaintainingplants,ofde-buggingnewplantorequipment,tocomefrom?Whenwespeakofacceleratedindustrialdevelopmentandoftheroleofthemetalandengineeringin:;s-tries,weneedtotakethetrouble€ofamiliars-ourselveswiththerangeandnumberoftechnicssandcraftsmenwithoutwhomthedevelopmentof:.ametal-workingindustryisimpracticable.

■y.

ir

Similarly, little attention seems to be paid to the exient to which the student is enabled to nrnfit from learning opportunities

available

in ^fcUunn;eorutsi9de ? e walls oi-the insi: tut on.

I

want to stress very strongly that this orienta tion is a necessary condition for the widespread ■

adaptationanddevelopmentoftechnology.

Our work programmes deal not only with these is

sues,butalsowithsuchotherpertinentissuesas

the ntroduction of skill-related technological subjects into secondary education, "f l^1™^! erv and policies for training and non-formal educa tion We have gone further, to include concrete nroiects relating to institutions and facilities PfK her and SWt-iivil technical tn Ining for business management and finance, transport, partic

ularlyshipping,telecommunications,international

business and finance, technology and more. I partic

ularlywanttomentionourproposedprogrammeonmanpowerdevelopmentforthestrategicindustries.

In the field of natural resources, we have to con ider this week proposals for taking advantage of advanced technology in natural resources exp oration. I would not be honest with you if I did.notJ"^ that the full value of this technology is, however, dependent on adequate complementary institutions and labilities over the whole spectrum in which consW erab dvances are being made, e.g.,

PhotogrMetry.

In particular increases in the national density of accurately located and permanently marked secondary and tertiary points to which photo control po nts are tied' the steady and widespread assimilation of improved'methods of field surveys; the adoption of advanced methods of rapid and "curate imp compjla-

ar^le^ training, methods and qualifications at all levels and branches of cartography; the calibrat on ™*

maintenanceofanincreasingrangeofdelicate,con,plexandexpensiveinstruments.ThisIsnotan.

22 Wehavealsotoconsidertherequirementsforestablishingrealandpermanentsovereigntyoverournaturalresources.Forthis,effortsoftwokindsarerequired:thepromotionofwidespreadfamiliaritywithpolicies,strategies,legislationandInstitutionsrelevanttotheestablishmentofsovereignty;andthedevelopmentofcapabilitiesfornegotiatingagreementswiththeprivatesectorfortheexploration,processingandexportofnatural

resources.OurworkprogrammesinnaturalresourcesaccordinglyprovideforadvisoryservicestoGovernmentsgnthetechnical,economicandlegalaspectsofmineralexploration,extractionandexploitation.Inthisconnexion,wehaveprovidedforareviewofpolicies,legislation,machineryandtheeffectsofexistingconcessionagreementsonforestresources.Wehavealsoprovidedforcontinuingeffortsintheestablishmentofmultinationalmineralresourcesdevelopmentcentres;asurveyofexistingnationalinstitutionsdealingwithmineralresourcesandmeasuresforstrengtheningthem;asurvey"ofmininglegislation;andsupportservicesterGovernmentsinthetechnical,economicandlegalaspectsofmineralpoliciesandagreements.WemustexpresshereourgratitudetotheGovernmentofCanadaforthesubstantialfinancialhe7'andtechnicalsupportitisgivingtoECAinamajorsurveyofthestatusofmappingintheregion.Asregardstechnology,wearenowpreparingforaConferenceofPlenipotentiariesontheestablishmentofaregionalcentreforthetransfer,adaptationanddevelopmentoftechnologyinAfricaasanimportantcomponentinstrengtheningthetechnologicalcapabilitiesofmemberSta*ps.*/IheregulationofimportsoftechnologyhashistoricallyhadtheImmediateeffectofreducingpaymentsabroadandsubstantiallyincreasingnetforeignexchangereserves.

23 ■i

s sfonle to what signals? How does I

crrnSioirr^ro^^^ procurement and supply policies and arrangeme through the adoption of conmon design standards,

throughmulticountryco-operation?tisforthesereasonsthatourworkprogrammes

nentofnationaldevelopmentplans,studieso

n™blems affecting technological innovation and dif* fusion facilitiei for the development of manpower

backtogether.Asregardsmarkets,Iamreluctanttotryyour

^econo^coiope^o^ln aVgWen of so many small States with very Urn ted

aticnai meaning, scope and

24 ofeconomic

co-operation. The second

is

that there

is

not like

lytobe,intheworldthatistakingshape,aviablealternativetoco-operation,evenforcountries

which, within the region, may believe they are lares

enoughandstroagenoughnottoneedco-operation

and may be tempted to go it alone.

I

myself believe that the degree of similarity in the

problemsof

socio-economic change in Africa exceeds

thedegree

of difference; that,

in

spite of differences

in

ide

ology,thereisboundtobesomeconvergenceTJ5-icies,strategiesandinstrumentsandthatthisshouldconstitutethebasisofco-operation.

The third is that the addition of even a large*

numberofsmallandfragmentedmarketsisunlikelytoprovidethemarketbasisfordynamicgrowthanddiversificationofoutput.Newpoliciesandinstitutionsarerequiredtotransformthedomesticmarkets,monitorchangesinitsstructureandcharacteristicsandsignaltheneedforcorrectivemeasures.Thisisaprerequisiteofmeaningfulmarketenlargementthrougheconomicco-operation.Theadoptionandapplicationofcommondesignstandi-rdsinordertopreventormodifythetechnicalfragmentationofnationalandmultinationalmarkets

would have the effect of enlarging such markets for

individualproductsandmakeintra-Africanmanufacturingmoreattracts.Where.Yocurementandsupplyarrangementsarecombinedwithstandardizationonamultinationalbasisandsomemeasureofcontroloverforeigntrade,bargainingpowerisraisedconsiderably.However,Ifeelobligedtocomplainthat,inrespectofsomeoftheseprerequisitesofthegrowthofintra-Africantrade,someGovernmentsdisplaylessenthusiasminactionthaninp'jb"V/>declaration.ThisisparticularlysointhecaseoftheTrans-AfricanHighwayNetworkand,tosomeextent,railways.Forexample,ithasbeensixyearssincetheMombasa-LagosTrans-AfricanHighwayprojectwaslaunched,andyettodayitisratherfarfromcompletion.Wecannotcontinuetopayonlylip-service

25

to

the development of the physical means of doing business within Africa and at the same time expect

intra-Africantradetogrow.

As regards extra-African trade, we believe that African countries have to build up special compe

tenceindeterminingthepackageofcomponentsinmajorplanprojects,includingprojectdesign,analysis,planningandprogramming,inacquiringfamiliaritywithalternativesourcesofsupply,and

in negotiating the best terms of purchase or supply.

Thesetermsshouldextendwellbeyondtheconventionalconcernwithfinancetoincludethebuyersorsuppliers1readinesstotrainlocalmanpower,ac

cording to

a

predetermined prograime, to consider the choice and costs of tethfidW to negotiate

theestablishment,withinanagreedperiod,ofmanufacturingfacilities,topursuereasonablepoli

cies regarding local purchases, reinvestment

ofprofitsanddepreciationfunds,andsoon.Atpres

ent, little attention

is

paid to the acquisition of

realadvantagesandmuchismadeofso-calledfinancialadvantages.

These considerations underlie part of our work progranme

in

intra-African and extra-African trade,

in

transport and communications, in markets, market-

nganddistribution.Theyalsorelatetoourpro-

iects for the establishment of agricultural commod-

^

ity and metal exchange markets and our studies, in

collaborationwithotherregionalcommissions,ontradeandeconomicrelationswiththeirregions.

Trade with the socialist countries is provided for

separately.

As regards the mobilization and redeployment of financial resources at the national, multinational

andregionallevels,Idrewattentionearliertoourproposalsforsurveyingexistingfinancialin

stitutions and their relevance to the challenges of the near future, and

I

have drawn attention to new institutional devices that we believe will contrib

utenotonlytotheefficientmobilizationof

26 resources,butalsototheirapplicationtohrjn-priorityareas.ItmaybepertinentatthispointtorefertoinadequaciesinthepresentapproachofmemberStatestoforeignprivateinvestment,whichisofparticularimportanceintheirrelationswithtransnationalcorporations.ThenotionthattransnationalcorporationsaresopowerfulthattheycannotbebroughttothenegotiatingtablehasnobasisInfact.Thenotionthatalltransnationalspursuethesamestrategiesandadoptthesametacticshasnobasisinfact.Thenotionthatalltransnation-alsofferidenticaladvantageswhichcanbeexploitedbythirdworldhostcountrieshasnobasisinfact.WearethereforeIsftwiththeproblemofdevelopingcapabilitiesforunderstandingthestrategiesandtacticsofdifferenttransnationals,andofappraisingtheparticularadvantagesthateachofferswhichcanbeexploitedbymutualagreementforpurposesofnationalandmultinationalsocio-economicdevelopment,andfornegotiatingsuchagreements.Oneoftheaspectsofthewholeprocessofpinningandmanagingsocio-economicchangeis£herole,structureandfunctionsofGovernments-.inviewofchangingneedsandchallenges.WedofeelstronglythatimaginativeandboldpolicieswillberequiredonthepartofourGovernmentstf-meetthe^challenges;forexample,insuchareasaseconomiccooperation,technology,trade,integratedruraldevelopment,naturalresources,manpowerdevelopment,humansettlementsandtheenvironment.Oneortwoillustrationsmaybehelpful.Sinceplanningisnotindependentofimplementation,andsinceimplementationdependstoaconsiderableextentonagentsnotinther^vjoymentoftheState,itfollowsthatsomemeans'mustbedevisedbywhichtheplaniscommunicatedtobusinessmen,farmers,industrialists,financiersandthelabourforce(whoare,afterall,expectedtoimplementmostofit),bearinginniinJthevrabilityto

understand its parts concretely, the part they^ expected to play in its achievement, and the

spe

cial policies and instruments Governments intend to orovide for underpinning their efforts to play this part. An indicative plan must genuinely indi

catesomethingtosomeone.

Another area of weakness is the planning and

managementoftheindustrialsector.Itsimpor

tance warrants, I believe, rather broad treatment As

is

well known, the industrial sector, and espec ially the engineering industries, occupy ? crucial position in accelerated growth and ^versification,

theynotonlyprovidethemeansoftheirownexpan

sion, but »l«e promete the expansion ef ether see- tors. They contribute more than any other sector to the development of managerial and

technical

skills, and constitute perhaps the most sign ficant medium for the transfer, adaptation and development

oftechnology.Itisthusadishearteningexper-

ence to discover how inadequate is the industrial base in much of the region and how ^Jf^*™ the policies, strategies and instruments for its de

velopment.

A few illustrations would help. The region is estimated today to account for only 0.6 per cent of word manufacturing output. This output is eavil*, concentrated in the area of light industry, and especially in the food and beverages and textiles subsector! which together are believed to account for more ihan 60 per cent of *fJ1c»'s ^""^VSo9 production- In the 15 years between 1955 and 1970, Africa's share

in

world output of metals and engi

neeringproductsremainedunchangedat0.2percent,

and its share of world production of heavy manufac

turing(chemicals,petrochemicals,non-metallicminerals,basicmineralsandfabricatedmineral

products) amounted to just over one quarter of one per cent! It seems astonishing that so few coun

triesevenhavepoliciesandinstrumentsforthe

deliberate fostering of the local manufacture of spare parts, components and accessories which, after

28 all,constitutethepointofdepartureforthe3o-velopmentoftheengineeringindustries.Inonlyrelativelyfewcountriesisthoreasystematicefforttoforgelinksbetweentheindustrialandothersectors,partlybecausetheformersectorconsistsofamiscellaneouscollectionofindustrialproductsunrelatedtoanypolicyforstructuralchangeoftheeconomicsystemasawhole.

Iftheseproblemsaretobeovercome,Africancountriesmustbegintoadoptaprogrammeapproachwherebyengineeringindustrygearedtothereductionofexternaldependenceisdevelopednotonthebasisofisolatedprojects,butthroughprojectswhichf§edbackon@achotherthroughsubcontract*1fl§addIfitefplantsalesandpurchasesofinputsSuchprojectsneednotbeimplementedsimultaneously,buttheirorganiclinkagesshouldbefullyanticipated.Thesignificanceofthisapproachmaybeillustratedbythefactthatitrequiresasurprisingnumberoflargeandsmallindustrialfactoriestoproduceacar.Moreover,aswaspointedoutearlier,fewGovernmentsappeartofullyrecognizetheimportanceofencouragingthelocalmanufactureofspareparts,componentsandaccessories,andofdevelopingspecialpoliciesandmachineryfordoingso.Amachine,howeverlarge,isintheendmainlyaunitorganizedfrompartsandcomponents.Wehave,therefore,providedinot'workprogrammesforthedevelopmentofthemetalsandengineeringindustries;forworkonindustrialplanningandprogrammingproblems;onspareparts,componentsandaccessories;ontheindustriescloselyassociatedwiththelatter,i.e.,foundryandforging;fortelecommunicationsandtransportequipment,forwhichwebelievethereisalargeandrapidlyexpandingmarketintheregion;andfowf^griculturalmachineryimplementsandtools,as'weliasforchemicals,buildingmaterials,foodprocessingandforest-basedindustries.

29

VI.

THE ROLE OF ECA

IN

BRINGING ABOUT A NEW ECONOMIC ORDER

IN

AFRICA It should by now have become clear beyond any doubt that the task of bringing about a new socio- ewnomic order at the national and regional levels Is very daunting. And added to this is the Hercu- ea task of achieving, in collaboration with the rest of the international community,

andPartic

Early the other third world regions, fundamental structural changes in international econcmnrela tions. I hope I have in my analysis showed, I trust clearly, the interconnexions among what, for wlnt of a better name, I would call the Three New *&nm should be searching vigorously for in Africa - a new national economic order, a «

which is not based on the achievement of « j

innmeasureofnational,aswellascollective,

self-re ilnce and self-sustained growth and develop ment in Africa will not provide African countries wft£ maximum benefits. Conversely, the restructur ing of the international economy is a criticaI fac tor in the realization of national and collective

self-relianceinAfrica.

Naturally, in taking concrete steps.towardsthe,, achievement of our three new orders, the

burden

must fall on the shoulders of African Governments. That is their primary responsibility. Indeed we made this clear in the "Revised framework ofprin- cinles" However, there is no gainsaying the fact

ofthesethreeneworders.thequestionoftheroleof

Ttol up the poft of Executive Secretary, the sec- retariat'has been restructured so .as.to develop its

30 capabilityforoperationalactivitiesandthusenhanceitsabilitytoengaqeinconcretefieldworkonanappreciablescale.Inthatcontext,itisproposed*toconverttheUNDATsintooperationalarmsoftheCommissioninthesubre-gions.AndthereareproposalsforimprovingthefunctioningofthesubsidiaryorgansoftheCommissionand,wherenecessary,creatingnewones.TherestructuringandimprovementofthesecretariatandtheCommissionis,Iconsider,amostessentialpreparationfordealingwiththosechallengesfacingtheregionwithwhichtheCommissionisbestfittedtocope.Thisisnotmereindul-wncflinatasteforrationalizationorperfectionism.TheproposalsareconceivedasanecessarymoansofdirectlyanddeeplyinvolvingtheCommissionpositivelyinthechallengesahead.Theproposedrestructuringoftheinstitutionsfordevelopmentandco-operationinAfricaisdesignedtofacilitateco-operationamongalltheinternationalandAfricanregionalorganizationsintheorganizationofconferencesandtoenhancefurthertheco-operationbetweenOAUandECA.Iamincreasinglyconcernedatthegrowingnumberofconferencesbeingheldintheregioneveryyear.Theseconferencesduplicateoneanother,andhavebecomeaconsiderableburH->-onthemeagreresources-financial,foreignexchangeandmanpower-ofmemberStates.SmallwonderthatthereisgrowingcynicismthatconferencesintheAfricanregionaregenerallyanendinthemselves-forumswherewordsaremistakenforwisdom,resolutionsforresolve,activityforaction,promiseforperformanceandaspirationsforcommitment.Whenconferencesceasetobemeansandbecomeendsatheyarecounterproductive,awasteofscarceres^drtes.WeneedinAfricatodevelopourcapacityforfollow-up,andperiodicallyundertakecriticalcost-benefitanalysesofconferenceswhichnowtakeplaceinourregion-notonthebasisofthenumberofresolutionsadopted,butontheirquality,realismand

31