TED Analysis Cases

Southern Africa Development Community Case Study Analysis

DRAFT AUTHOR: Jennifer Erie

RESEARCH PAPER NUMBER: X18

RESEARCH PAPER MNEMNONIC: XSAFR18

RESEARCH PAPER NUMBER: South Africa Food Security

I. Abstract

Regional integration and cooperation are mistakenly accepted as equals, but in fact they are two different goals. Regional integration is the economic convergence of neighboring states working within a framework to promote intra-regional trade of goods and services creating a common market, forming a common currency, and becoming politically unified. Regional cooperation, on the other hand, takes a more developmental and phased approach. It aims to implement strategies that will improve the living conditions of the impoverished; i.e. water schemes, health facilities, food security, etc., among other social welfare issues that are applicable to each individual member and that will benefit all. There are several areas of regional integration and cooperation such as North American Free Trade Agreement (NAFTA), Association of South East Asian Nations (ASEAN) and the European Community (EC). This case analysis looks at the prospects for regional economic integration and cooperation in Southern Africa.

II. Issue Background

Political independence of South Africa two years ago elevated the prospects for regional cooperation and integration in Southern Africa. In 1980, the majority of the Southern Africa region sought cooperation as a route to uplift an economic burden that was intensifying destabilization and dependence. Government leaders held the Southern Africa Development Coordination Conference (SADCC) in Lusaka, Zambia, following the adoption of the Lusaka Declaration. The end results of this assembly was the creation of a strategic plan. It's primary objective was to work towards severing its economic ties with South Africa. It was also drafted to construct links and mobilize resources to encourage regional integration. In 1992, SADCC was replaced by the Southern African Development Community (SADC) by Declaration and Treaty in Windhoek, Namibia.

SADC's goals were borne out of neo-Marxist dependency ideology. The dependency school of thought was born in the 1960's with the decline of the modernization school. It first arose in Ltin America as a response to the bankruptcy of the program of the U.N. Economic Commission for Latin America (ECLA). As one of the "fathers" of the dependency school, Andre Gunder Frank has conceptualized the progression of the development of the underdeveloped countries as reversed due to foreign domination. Under colonialism the major cities of these countries became the satellites of Western metropoles. Dos Santos expounds on this center-periphery relationship and he argues that "relations between dominant and dependent countries are unequal because development of the former takes place at the expense of the latter." In this age of technological-industrial development the least developed countries (LDCs) are caught in a game of "catch up" in the new world order. On an international level, advanced technology is being pushed and traditional agrarian production is being substituted.

The notion that development can be equated to engaging in a capitalist economic system should be dispelled because it is the monopolistic control of these foreign technological markets that prevents the LDCs from attaining an advantageous position in the world economy. Most LDCs adopted dependency theory because they blamed the West for their underdevelopment and some still do. According to Frank, LDCs could never follow the Western path because they have experienced something that Western countries have not; colonialism. Most LDCs are former colonies of Western countries and this experience has totally restructured LDCs and has drastically altered their paths of development. As a result, Frank formulated the concept that the modernization school has manifested "the development of underdevelopment."

A series of structural adjustment programs (SAPs) created in the 1970's by the IMF and World Bank have developed an intractable situation in which LDCs are finding themselves in a position of indebtedness. The stated goals of these programs as working with countries in terms of lending money to be used towards restructuring their present economic systems, through liberalization, for future growth, have been challenged by economic realities. Most developing countries have grown dependent upon foreign aid as a result of this "choke-hold" the IMF has placed on them. They have also been faced with the problem of balance of payments due to economic growth stagnation. The mandatory policy guidelines for SAPs contradicted social welfare goals and retarded development. They call for reduction in government spending, raising taxes, reduction of foreign imports, and increase in exports.

Unfortunately, the domestic elites and ruling class personally benefit from this debtor-creditor relationship and and in turn manifest obstacles to economic, political and social development for the populace at large. Hence, corruption in these LDCs is not fueled through external agents alone, e.g., President Mobutu and his regime in Zaire. At the same time export-led industrialization is leading LDCs "to dependent industrialization instead of self- expanding development." Coming from this perspective, one can begin to understand the reason why a severance of the ties with first world nations and South Africa was adamantly proposed by SADCC. Instead of following a route of regional integration, SADCC's ultimate objective was to achieve regional cooperation through collective self-reliance.

SADC's headquarters is in Gaborone, Botswana and all 11 member states have sectoral responsibilities, which are described in more detail at the following URLs. 

_____________________________________________________________  Angola Energy

 Botswana Agricultural
research, Livestock production & Animal disease control

 Lesotho Tourism and
Environment & Land management 

 Malawi Inland fisheries and
Forestry & wildlife

 Mozambique Culture &
information, Transport & Communications 
 Namibia Marine fisheries &
Resources

 South Africa Finance &
Investment 

 Swaziland  Human
resources development

 Tanzania Industry & Trade

 Zambia Mining and
Employment & Labor

 Zimbabwe Food, Agriculture
& Natural resources
___________________________________________________________

It is always helpful to remember that the independent countries of Africa are very young. They inherited the skeletons of colonies with budding populations, few skilled administrators, and deep ethnic loyalties that defy national allegiance. For example, some countries had to fight protracted armed struggles (Angola and Mozambique) to win independence while others had smoother transitions (Botswana and Malawi). Unfortunately, political instability will continue until leaders can maintain their legitimacy by satisfying the economic needs of their people as opposed to those of foreign investors. It is understood that in this day and time foreign investment is critical to growth and if integrated regionally, southern Africa could attract outside interest in a three-way connection of outside investors, South Africa and its neighbors. Also, more than 100 million people reside in the SADC region, including South Africa. The World Bank's categorization of nations according to per capita income supports the generalization that this is sub-Saharan Africa's most economically productive region.

Economic instability also plagues the region and is attributed to occasional natural disasters such as drought, but there are many other issues at hand. Regional cooperation would work ideally in a homogeneous society, but this is not the case in Southern Africa. The are only a few similarities across the board in Southern Africa including geographical position on the continent and a history of colonization. Other than that all of the countries are very diverse in historical and ecological foundations. As the following case studies outline, SADC has to be diligent and flexible enough to handle various and unrelated issues at one time that are priorities for each individual member.

Below are case studies highlighted from the Trade and Environment Database pertaining to various issues in the Community.

III. Relevant TED Cases

  1. Angola Fish and Trade

    Angola is emerging from three decades of war and as the government starts to implement new policies that will bring the economy in line with what western institutions deem appropriate the government is being forced to make some drastic decisions with regard to its natural resources. The coastal waters off Angola have traditionally been considered plentiful, but over fishing by international trawlers has left a question mark over the countries fish stocks. As the government attempts to sell it countries various sectors to foreign investors, in an attempt to pull itself from its financial nightmare, it is over selling the potential of its fishing sector to the detriment of its subsistence fishermen and its marine environment.

  2. Botswana Cattle Ranching Problem

    The grasslands of Botswana contain more than twice as many cattle as people. Botswana's national cattle herd has grown from a few hundred thousand cattle in 1950 to close to three million today. Due to European import restrictions on meat, the cattle must be kept inside fences to avoid disease. Cattle raising, and the accompanying fences, have drastically reduced the once plentiful wildlife of the country's plains and disrupted migratory patterns. Environmentalists are now fighting to preserve one of the continent's last great wild areas from cattle ranchers, whose fences are denying buffalo, zebra, and wildebeest (protected under CITES) access to migration routes, and local Bushmen access to their traditional lands.

  3. Zimbabwe Tobacco Export and US

    Zimbabwe has become the world's biggest tobacco exporter, and tobacco is the country's biggest foreign-currency earner, bringing in some $430 million in 1994. However, farmers are worried about the anti-smoking trend in America and Western Europe because most southern African economies are still dependent on a narrow range of exports that make them extremely vulnerable to market forces. Therefore anti-smoking trend has negatively affected Zimbabwe's economy. Moreover, the United States decided to impose tariffs on imported tobacco. As a result, Zimbabwe is now suffering from a loss of international trade. In addition, after U.S. tobacco industries lost market in their country they started to seek new markets especially in developing countries. Developing countries have few regulations concerning tobacco imports. As a result the number of smokers have gradually increased in the world. This is the case in Africa. The anti-smoking trend is also becoming an issue related to health in Africa. Furthermore, the condition of Zimbabwe's economy is getting worse.

  4. Lesotho Water Exports

    Water is the only natural resource in relative abundance in Lesotho. The Republic of South Africa (RSA) showed long standing interest in utilizing water from the Lesotho Highlands to meet a growing demand of water by industry. A $5 billion joint venture between Lesotho and RSA will build a network of dams and channels in the remote mountains of Lesotho to funnel rainwater to the industrial heartlands of South Africa. The dams will trap water which normally runs into the Orange river and out west into the Atlantic Ocean, and instead turn it north towards Johannesburg. The prime objective is to turn Lesotho's only abundant natural resource -water- into export revenues. In addition, on the way down, it will generate enough hydro-electricity to supply all Lesotho's power needs and reduce its dependency. However, the project is likely to cause environmental damage in terms of population dislocation, grazing land flooding, and degradation of the site by workers and tourists.

  5. African Dog Disease

    Burgeoning human population growth around the Western edges of the park poses a great threat to big cats and other predators that roam the Serengeti plains in Tanzania. Many of the villagers living outside the park own dogs, and these dogs oftentimes are not vaccinated against such common diseases as rabies or CDV. When these dogs intermingle with Serengeti predators at kill or scavenge sites, viruses such as CDV that can be spread through mucus secretions have a means by which to jump from domestic to wild animal populations. In the case of the CDV outbreak of big cats in the Serengeti in 1994, it is thought that hyenas intermixing with domestic dogs at one of these sites contracted the virus and then spread it to other predators at different kill sites throughout the park. How the fatal virus was able to make the leap from afflicting domestic dogs to threatening to wipe out a sizable lion population was a question scientists did not have any answer to. And if the virus could do so much damage this time around, what, if anything, could be done to protect the lion population from future outbreaks?

  6. Zambia Wildlife Trade

    The rise in elephant and rhino poaching in Zambia has more to do with the dynamics of the global economy than any single factor within the country. The fall of global copper prices in the mid-1970s - copper being Zambia's primary foreign exchange earner - forced many Zambians to locate new sources of income. Many Zambians began to hunt and kill rhinos (especially black rhinos) and elephants for their ivory horns and tusks, which were sold on the domestic and international markets. In the 1970s, Zambia had an elephant population of about 35,000, yet by the early 1990s only about 6,000 elephants remained (Kelso, 1993:69). In the east, central, and southern areas of Africa where the black rhino was dominant, less than 4,000 remain from a population of 65,000 in 1970 (Vollers, 1987:62). Many of these remaining rhinos are located in Zimbabwe because the black rhino has been poached to extinction in Zambia. Faced with the extinction of the black rhino and the decimation of the elephant, the Zambian government initiated several wildlife conservation policies, including cross-border agreements with Zimbabwe and other countries where rhino and elephant poaching is common, aimed at reducing the amount of rhino and elephant poaching. But these conservation efforts have had little long term impacts as many Zambian poachers have crossed the border to neighboring Zimbabwe to continue poaching. Many poachers are now concentrating on the elephant as the few rhinos that remain come under increasing protection (Poachers slaughter..., 1995). Other problems - such as a continued weak economy, limited resources for wildlife preservation, competition with local farmers for land, the politics of wildlife legislation, and a still very lucrative global market in ivory - have made it very difficult for the Zambian government to protect its rhino and elephant populations. The end result is that, today, "rhinos [and elephants] are still being killed faster than they can reproduce" (Knox, 1989:60).

  7. SADC Food Security Program

    Political independence of South Africa two years ago elevated the prospects for regional cooperation and integration in Southern Africa. In 1980, the majority of the Southern Africa region sought cooperation as a route to uplift an economic burden that was intensifying destabilization and dependence. Government leaders held the Southern Africa Development Coordination Conference (SADCC) in Lusaka, Zambia, following the adoption of the Lusaka Declaration. The end results of this assembly was the creation of a strategic plan. It's primary objective was to work towards severing its economic ties with South Africa. It was also drafted to construct links and mobilize resources to encourage regional integration. In 1992, SADCC was replaced by the Southern African Development Community (SADC) by Declaration and Treaty in Windhoek, Namibia. SADC's headquarters is in Gaborone, Botswana and all member states have sectoral responsibilities. The Food Security Program, headed by Zimbabwe, is by far one of SADC's most important projects. Along with mismanagement, the region is occasionally afflicted by natural disasters such as droughts. As a result, Southern Africa is still dependent on food aid to supplement local production. This case study looks at SADC in the context of whether its Food Security Program is living up to its goals or if food scarcity is still widespread in the region.

    B. Comparison and Contrast

    These cases have similar underlying themes such as culture and external influences:

    Case Country Discourse & Status Environmental Problem Exporters & Importers Culture
    Angola Disagree & In Progress Species Loss Sea Angola & Many Yes
    Botswana Disagreement & Allegation Habitat Loss Botswana & Many No
    Zimbabwe Disagreement & Allegation Habitat Loss Zimbabwe & USA No
    Lesotho Agreement & Complete Water Lesotho & South Africa No
    Tanzania Agreement & In Progress Infestation Tanzania & Many Yes
    Zambia Agreement & Completed Species Loss Land SADC members & Middle East, East Asia Yes

    The above cases only provide a minuscule synopsis of the diversity at hand within SADC. Even though each of these cases are different in nature there are some noteworthy similarities. First of all, they all effect their domestic populations in one way or another. As already noted, Zimbabwean tobacco producers bring in the most foreign exchange, but they are increasingly finding themselves in difficult positions. While this form of agricultural export is the livelihood of its farmers and a significant portion of the national economy, Western anti-smoking campaigns has caused a dramatic drop in exports. Furthermore, the US has imposed tariffs forcing Zimbabweans to sell their products to alternative markets such as those in other developing countries. Since then Zimbabwean government has undertaken the World Bank/IMF prescriptions of structural adjustment programs (SAPs) in the late 1990s reinforcing export-led growth and trade liberalization. SAPs are not unique to Zimbabwe as most developing in need of foreign assistance must take this rite of passage. The Bank has recently been highly criticized on the failure of most SAPs, but Zimbabwe has been able to adjust accordingly without too much strife as compared to others.

    Along these same lines, Angola is currently embarking on its new road to development through SAPs. Angola is still war torn, but has been able to keep its head above water due to the fact that it possesses a good portion of the most valuable resources in the world including oil and diamonds. It is in fact the second largest producer of oil in sub-Saharan Africa and provides 7% of US oil imports. The civil war has done little more than breakdown the healthy economic stability once in place. With assistance from the Bank, Angola has set forth many new policy agendas and one that hasn't been taken serious enough is the fish industry. Since so many of the SADC countries are landlocked, coastal countries such as Angola are pivotal players for coordinated trade and transportation efforts as well as offshore fishing. During the war the government was preoccupied and did not keep control of its waters allowing for foreign trawlers such as Russia and Spain to take advantage. Their destructive techniques ruined fish habitats on the seabed and led to a significant decrease in the number of fish available to the indigenous who rely on fishing for their survival. Most Angolans are subsistence fishermen and consider fish a staple food. Even though fishing isn't as significant to the economy as tobacco is to Zimbabwe, domestic consumption is adversely affected.

    The Botswana case is one that also reflects an issue that isn't a major exporting factor in the economy, but affects the indigenous people and environment in more ways than one. The cattle fences have not only been disrupting migratory patterns of other wild animals but has increased land degradation of grazing areas since all activity is being concentrated in a confined area. These disrupted migratory patterns have also forced animals to cross Botswana's borders into neighboring SADC countries such as Namibia. As with the Zimbabwe case, external pressures are the motivating forces behind the construction of these fences. In order to keep up their cattle exports to Europe, measures such as this were suggested as a way to prevent disease amongst the animals.

    Tanzania has not had to go as far as building fences, but the threat to their big cats by domestic dogs has been fatal. Population growth of already situated groups combined with migratory groups surrounding the Serengeti National Park are imposing health threats to the wild animals and environment at large. People move into this area in search of employment opportunities and bring along domestic dogs who unintentionally infect the big cats, most significantly the lions, with viruses(CDV). In the beginning, local veterinarians have tried to provide vaccinations to as many dogs as possible and have made significant progress. Although they have eradicated the disease thus far a significant amount of lions have dies and it is not certain if a new mutation will not reappear. Since then speculation has taken place surrounding the idea of developing this site in to an attractive tourist site. The government has so far been reluctant to this and has kept travel in this area to a minimum. They fear that tourist-type traffic and construction would cause too much damage to the natural habitats. On the other hand, while Tanzania is experiencing economic difficulties as it is now some feel that this would increase revenues and boost the economy. The situation can be considered a gamble because this venture would be dependent upon the disease not recurring which cannot be taken as a matter of fact.

    The big game animals in Zambia may also have significant health problems, but this case study shows how they suffer a great deal under the hands of human contact. Due to poaching the rhinoceros have become extinct in Zambia and the stealing of ivory from elephants has not ceased. A combination of desperation and mismanagement has led to the conservation crisis faced in Zambia today. Zambia was once considered one of the most economically viable countries in the SADC region when its copper was in abundance and in high demand on the world market. Since the crash of global copper prices in the 1970s the Zambian economy has been devastated. Cuts in jobs and services in the rural areas as a result led to the increase in poaching for the trading of meat and ivory. The indigenous people had to find a way to survive and so they have illegally. Some local farmers don't feel that conservation is to their benefit especially since a lot of times elephants trample their crops. In this day and age of economic strife the government doesn't have the resources, economic or human, to implement effective conservation programs even though tourism revenues would increase as a result. Zambia is in the process of collaborating with other SADC members to punish cross- border poachers, but obstacles to putting their plans into action are rooted in petty political conflicts.

    Lastly, the issue in Lesotho is unique in that a lot of people amy not think of water as an export, but this something that Lesotho has in abundance as opposed to most of its neighbors. South Africa's urban population is steadily growing at alarming rates and the pressure put on its water supply is becoming critical. South Africa has been purchasing this water from Lesotho, but have recently tried to reach agreements on a reciprocal trade partnership. Lesotho is a very small country and is dependent on South Africa for not only electricity but food imports as well. Recognizing that they both need something from each other, the Lesotho Water Highlands Project (LWHP) was established to build a dam to provide water to South Africa and hydro-electricity to Lesotho. Lesotho has concerns about LWHP that have put a hold on its implementation. The loss of arable and grazing lands would increase their dependence on food imports even more, population resettlement around the construction site would damage the environment, and damage to historical and cultural resources would be detrimental to the people in the area. This is a case with great significance to both the economy and the welfare of the local population.

    IV. Policy Implications

    The effectiveness of policies set forth by SADC are difficult to implement, but the commitment of all the major stakeholders in the process in essential if integration is to occur. Just as each country is assigned a task they should have the authority to handle a situation without coming up against issues of sovereignty. Most of the above cases involve trans-border issues and therefore need to be addressed by a regional committee. One of the reasons why SADC hasn't moved much closer to its full potential is ideological differences. If SADC ever comes close to reaching its stated goals and can work effectively through coordinated efforts than the region would become a major force to reckon with in the new world order.

    The region's richness lies within its diversity. SADC leaders have to stop being so top-heavy as experience has proven within most of African development schemes, trickle-down theory does not fair well in practice. SADC leaders have to realize that the wealth they posses in the hands of its very own citizens and allow for greater participation in its policy-making and implementation. SADC would have a greater chance of letting production push trade' instead of trade pushing production' as one of their popular slogans expresses. This cannot be realized if countries are continuously forced to adopt rigid World Bank prescriptions as outlined in SAP's. International agencies have to take individual economic and social realities into account when dealing with developing countries. International agencies such as the World Bank and IMF are currently reevaluating their approaches towards development in LDCs and establishing a free trade area or export processing zones might be something to research. Some may assume that since the independence of South Africa the region would be immediately revitalized, but that is not the case. South Africa may be politically free, but the economy is still controlled by a majority and the benefits are still reaped by the elites.

    Throughout all of the above-referenced case studies an exhaustive list can be drafted on the many issues that need to be addressed such as land reform, training, foreign intervention, gender, distribution, access, equality and equity. SADC is still young compared to other regional entities such as the EC and maybe with time greater successes will be realized, especially with the "changing of the guard" when younger generations start taking over the political realm.

    Further Information

    A. Bibliography

    Coetzee, Stef. "Southern Africa After April 1994: A Time for Thinking Anew." 1994. Africa Insight. Africa Institute for South Africa. Pp.3

    Landsberg, Martin. "Export-led Industrialization in the Third World: Manufacturing Imperialism." Review of Political Economies 11. 1979. Pp. 50-63

    Blumenfeld, Jesmond. Economic Interdependence in Southern Africa. 1991. The Royal Institute of International Affairs.

    Maasdorp, Gavin. "The Future Structure of Regional Trade Integration and Development Cooperation in Southern Africa." Africa Insight. 1994. Africa Institute of South Africa. Pp.6

    Chidzero, Bernard T.G. "Challenges to Development in Southern Africa." Poverty, Policy and Food Security in Southern Africa. Coralie Bryant (ed.). 1988. Lynne Reinner Publishers, Inc. Pp.127.

    African National Congress. The Reconstruction and Development Programme. 1994. Umanyano Publications, South Africa. Pp. 116-119

    Davies, Rob. "Approaches to Regional Integration in the Southern African Context." 1994. Africa Insight. Africa Institute of South Africa. Pp. 12

    World Bank. Sub-Saharan Africa: From Crisis to Sustainable Growth. 1989. Pp. 148-162

    Hanlon, Joseph. South Africa: the Sanctions Report; Documents and Statistics. 1990. London: Commonwealth Secretariat in association with James Currey. Pp. 85-86

    Green, R.H. & Seidman, A. Unity or Poverty? The Economics of PanAfricanism. 1968. Harmondsworth: African Penguin Library

    Manley, Andrew; Quattek, Kristina; Kronston, Gregory, Angola Country Report: The Economist Intelligence Unit, 3rd quarter 1995, The Economist Intelligence Unit, London

    McCormick, Shawn H., The Angolan Economy: Prospects for Growth in a Postwar Environment, 1994, Center for Strategic and International Studies, Washington, D.C.

    Spikes, Daniel, Angola and the Politics of Intervention: From Local Bush War to Chronic Crisis In Southern Africa, 1993, McFarland and Co., Jefferson, N.C.

    Embassy of Angola (USA) Angolan American Economic Partnership: Trade and Investment Reference Guide 1995, September 1995, Washington, D.C.

    Embassy of Angola (USA) Presentation at CSIS by the Angolan Minister of Finance: Augusto Da Silva Tomas, July 1995, Washington, D.C.

    Government of Angola, First Round Table Conference of Donors: Programme of Community Rehabilitation and National Reconciliation, September 1995, Brussels, Belgium.

    Frank, Andre Gunder. Capitalism and Underdevelopment in Latin America. 1967. Monthly Review Press

    Dos Santos, Theotonio. "The Structures of Dependency." Readings in US Imperialism. K.T. Kan & Donald C. Hodges (eds.). 1971. Extended Horizons. Pp. 225-236

    B. Websites

      Zamnet

      Zimweb

      Mbendi

      African Access

      Angola

      South Africa

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