TED Case Studies

SADC's Food Security or Scarcity? Case Issue

Case Number= 372

Case
Mnemonic= SAFRFOOD

Case Name= SADC Food Security

• IDENTIFICATION
• LEGAL CLUSTERS
• GEOGRAPHIC CLUSTERS
• TRADE CLUSTERS
• ENVIRONMENT CLUSTERS
• OTHER FACTORS

I. Identification

1. The Issue

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.

2. Description

SADC consists of 11 member states: Angola, Botswana, Lesotho, Malawi, Mozambique, Namibia, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe.

It is always helpful to remember that the independent countries of Africa are very young. They inherited the skeletons of colonies with growing populations, few skilled administrators, and deep ethnic loyalties that defy national allegiance. 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.

More than 100 million people reside in the SADC region, including South Africa (see Table 1.1 below). 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. Six of these countries (South Africa, Zimbabwe, Swaziland, Botswana, Angola, and Namibia) are among sub-Saharan Africa's strongest economies. Although a common currency does not exist, in practical terms the freely convertible South African rand serves a similar purpose in most of these countries. With several excellent deep water ports, redeemable rail systems capable of further integration, and major air links to European capitals, southern Africa has the makings of substantial integrated transportation and telecommunications network necessary for the new world order.

SADC's Mission

Upon analyzing some of the economic indicators of the 1980's in Southern Africa it is questionable whether SADC has followed its plan of action accordingly. At its inception, the members of SADCC established four universal goals:

• the reduction of economic dependence, particularly (but not only), on the Republic of South Africa;
• the forging of links to create a genuine and equitable regional integration;
• the mobilization of resources to promote the implementation of national, interstate, and regional policies; and
• concerted action to secure international cooperation within the framework of a strategy for economic liberation.

These goals derived from neo-Marxist dependency ideology. The present crisis most of these countries are undergoing is a direct result of the debt trap instigated by the IMF and World Bank through a series of structural adjustment programs (SAPs) created in the 1970's. The stated goals of these programs have been challenged by economic realities. Most developing countries have grown dependent upon foreign aid as a result of these programs. They have also been faced with balance of payments deficits 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.

The domestic elites and ruling class, unfortunately, personally benefit from this debtor-creditor relationship 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. One example of gross corruption is that of President Mobutu 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. The profound nature of SADCC's declared ambition of dependence' reduction was underlined by the slogan which it adopted to characterize collective self-reliance: Let production push trade, rather than trade push production'. Their aim was to produce more intra-trade in order to reduce transactions with non-member states. Also, instead of the market controlling what should be produced, the consumption needs of the indigenous people should be followed because the former can be externally influenced.

Major decisions of this kind can only be achieved with state intervention and centralized policies. The member states need to figure out ways to minimize any distributional inequalities in and between SADC countries. There is also a tremendous and unnecessary overlap with countries who are members in both the Preferential Trade Area (PTA) and SADC (except for Botswana). The PTA was set up by the European Union and promotes trade among 16 Eastern and Southern African states by lowering tariffs for selected goods on a common list. This dual membership is ineffective and ultimately constrains one organization while the other benefits. This overlap may also effect aid from donors who may become concerned with the situation. In southern Africa, SADC is the best route because of its phased steps and project-oriented approach. Most of the time these projects eliminate any conflict caused over fear of loss of sovereignty which the area is still very protective of due to their limited post-independence existence. Some members such as Zimbabwe and Malawi have conflicting economic and political interests because of differences in their strategic and ideological orientations. For example, this was reflected in their economic links with South Africa during the apartheid era even though they were unified in their political opposition to that minority rule. Another end of SADC members' lack of commitment to some policies is seen through their inability to centralize issues across the board. They have yet been able to collectively allocate resources or supervise sectoral responsibilities.

The agrarian crisis in Southern Africa is in no way different from the crisis in the rest of the continent. Some of the major trade products in the region are coffee, tobacco, cashews, sugar, cloves, tea, and fertilizer. Declining agricultural output is part of a wider pattern whereby governments have continuously failed to recognize the role of small farmers in increasing agricultural production. In Southern Africa, over 80% of the population is engaged in subsistence farming. Yet the thrust of governments and donors to improve agricultural output has largely been toward the more powerful and politically organized modern commercial farming sector. SADC's food security program falls into two parts: the regional and institutional and the series of projects which are basically national in character but nevertheless make a contribution towards the achievement of the overall food security objective. Along with the drought related projects and research and training agendas, one of SADC's major projects is an early warning system of impending food crisis in the region. The idea is that ultimately a regional early warning system unit will collate standardized information received from national early warning units established for the monitoring of weather patterns and their impact on crop development and any other threats to crops through natural hazards.

SADC's agenda is still not clear. The emphasis on food security, as opposed to food production for local consumption, will have serious implications on institutional development. By focusing on the supply side of agriculture, the Community has evaded the integral elements of veritable development: participation, empowerment and social justice. With the population projected to double by the year 2010, the income side of development is not emphasized enough to meet the growing demand for food. SADC also has yet to deal with land tenure issues and appropriate farming systems and technology to fit the regions predominant subsistence farming. On a more positive note, the Community has been able to raise more external resources than any other similar organization on the continent. Even though major strides have been made in rehabilitating the transport sector, the same cannot be said about its agricultural policy. Members have increasingly grown concerned with the preoccupation of donors with so much research and not enough action.

Some critics have doubted SADC's effectiveness because it is externally funded. It is being supported mainly by the Nordic states, European Community and Canada. Funding was also provided more vigorously during the 1980's as anti-apartheid sentiments grew in the international community. The period of sanctions against South Africa directly affected its neighboring states due to their dependence on its imports. They were forced to find a balance between the political pressures and the economic realities which they faced. SADC's lack of political convergence and the unwillingness of individual members to disengage their economies from South Africa has stunted its potential in many areas, but there have been several cases where progress was made.

SADC has recently professed to be more development-oriented, but it is still very much focused on trade. Whereas intra-regional trade for both the PTA and SADC accounts for only 4-5% of total trade among members. They have been trying to measure up to established trade blocs such as the East Asian newly industrialized countries (NICs). SADC has failed to realize that in most cases conditions necessary for economic integration are homogenous industrial and economic levels. Consequently, southern Africa has the most diverse levels of industrial and economic systems. Some members are LDCs and their capacity to contribute to this integration is minimal; thus limiting opportunities. Economic development has also been held back by decades of civil war in Angola and Mozambique and adjustment programs in Tanzania and Zambia.

The initial fear of many that South Africa would dominate SADC stemmed from the fact that South Africa's GDP accounts for 79% of southern Africa's total economic output. It is also the only country with significant industrial capacity, advanced technology, and infrastructure with Zimbabwe trailing behind. On the other hand, with the wake of South African independence, the threat of South Africa controlling the region is no longer at hand because domestic agitation will deter such a path. South Africa will have enough problems of its own to deal including redistribution of land and restructuring of its economy that their relations with SADC will be overshadowed for a while. The balance of trade in the region is emphasized because South Africa's exports far more exceed that of its imports across the continent. South African authorities have stated that they would like to work towards the development of the capacity of their neighbors to export manufactured goods through industrial development with sub-sectors. This would be promoted through mutually beneficial projects. They also have proposed to reform the South African Customs Union (SACU) to promote equity in the region. This would be done in such a way to interact effectively with international financial and trade institutions. This reformation could be a boost to SADC's goals of becoming an economic union.

In 1980, food security was a priority because African agriculture was in an abysmal state after decades of underdevelopment. Production of grains repeatedly fell short of domestic needs, with any adverse weather conditions bringing not just hardship but starvation. Problems and mistakes in agriculture by member states fell into three interrelated areas: technology, finance and distribution. At present, agriculture contributes about one-third of the region's GNP, employs up to 80% of the total labor force and accounts for about 20% of total foreign exchange earnings. In those states that are not dominated by mining, agriculture contributes about 60% of total foreign exchange earnings. Increasing the productivity of agriculture and the sustainable utilization of natural resources are essential for both meeting the increased demand for food and for raising the standard of living of the people in the region.

Recognized as being one of the richest areas on the continent, the region's minerals, oil, and agricultural potential has barely been tapped. Approximately 60% of the world's gold reserves, 75% of its rare earths, 75% of its manganese, 65% of its phosphate, 55% of its cobalt, 90% of its chromium, and 60% of its diamonds are located in Africa, mostly in southern Africa. For example, although virtually the sole source of Angola's current income is the approximately 500,000 barrels per day of oil produced in Cabinda, known reserves are at least 2 billion barrels. Before decades of anticolonial and subsequent civil war took their toll, Angola was the world's third largest producer of coffee and a net exporter of agricultural products. Other resources include diamond reserves, timber areas, iron ore, coastal fishing areas, and hydroelectric power. Mozambique presents significant opportunities as well. Only some 5% of the country's arable land is currently cultivated. In preindependence days this land produced a range of exportable cash crops including cashew nuts, sugarcane, cotton, tea, and sisal.

As Table 1.2 shows, by the time the southern African states attained independence, their economies were geared toward production of crude materials for uncertain markets. Their continued economic well-being depended on their ability to export enough of their crops and minerals for abundantly high prices to industrialized nations. Colonial rule prevented development of local production competency and the accent on mining and commercial farming for export purposes caused an economic imbalance. The contrast between the rural and the industrial sector resulted in a growing number of migrants to urban areas. Migration in southern Africa is primarily of the South-South variety with two kinds of populations; the brain drain migrants and the unskilled/illegal migrants.

Also, according to the table below, South Africa and Mozambique have had significant numbers of internally displaced citizens associated with intra-state population movement along with Sudan representing countries in sub-Saharan Africa.

Top Five List of Internally Displaced Citizens, 1991 Country Population

_____________________________________________________________

Sudan 4,500,000

South Africa 4,100,000

Mozambique 2,000,000

Afghanistan 2,000,000

Sri Lanka 1,000,000

_____________________________________________________________

Unfortunately, only five of the eleven countries in the region are in contact with the sea. The rest are landlocked. Among these landlocked states are Zimbabwe, Zambia, and Botswana, which produce significant quantities of strategically important minerals. The economies of these countries are fragile, often supported by a single commodity. Moreover, drought and unsuccessful agricultural policies have forced the countries to import food. Thus, the continuation of their economic development and political stability depends on the transport infrastructure of neighboring states, primarily that of South Africa because Angola and Mozambique are still recovering from civil wars. The terms of trade for the export crops and minerals on which all their economies still depended worsened as monetary crises and recession spread throughout the world. The World Bank has continuously documented that there was little or negative economic growth per capita in the continent's 20 years of independence.

The recent history of droughts in eastern, western, and southern Africa would tend to give the impression that fluctuations in food production are uniform across countries in each region, or even over the whole country. A casual examination of the data proves otherwise. Data for the crop years 1985-1986 and 1967-1987 shows that Southern Africa as a whole needed food imports of 1.7 million tons and 1.6 million tons respectively. Yet there were country differences, e.g., Zimbabwe had surpluses in their maize and sorghum stocks. These surpluses would cover the deficits in Mozambique and Zambia under status quo nutritional levels. This aggregate picture also masked differences in food requirements by commodity. Thus, Zimbabwe had maize surpluses but a wheat deficit in both periods.

Surplus and Deficit in Staple Foods Between Bordering Countries in the SADCC Region

1979-1981 Country Staple Surplus Border Staple Deficit

_______________________________________________________________________

Angola Cassava,

Zambia Wheat, Rice, Millet, Sorghum

Malawi Rice, Maize,

Mozambique Wheat, Rice, Maize, Sorghum

Tanzania Wheat, Cassava

Zambia Wheat, Rice, Millet, Sorgum

Swaziland Wheat, Rice,

Mozambique Wheat, Rice, Maize, Sorgum

Tanzania Rice, Maize, Millet,

Malawi Wheat, Sorghum

Zambia Wheat, Rice, Millet, Cassava, Sorghum

Mozambique Wheat, Rice, Maize, Millet, Sorghum, and Cassava

Zambia Cassava and Maize

Angola Wheat, Rice, Maize

Botswana Wheat, Rice, Maize, Millet, Sorghum, and Cassava

Malawi Wheat

Mozambique Wheat, Rice, Maize

Tanzania Wheat

Zimbabwe Rice, Millet, Sorghum, Cassava

Zimbabwe Wheat, Maize

Botswana Wheat, Rice, Maize, Millet, Sorghum, Cassava

______________________________________________________________________________

The intercountry differences point to the regional trade possibilities. The surplus countries have to compete with the prices offered by other exporters because the deficit countries will not subsidize high-cost producers just because they are neighbors. Even though Zimbabwe and Malawi have continued to accumulate surpluses since 1984, other countries such as Zambia and Botswana continued to have deficits. The most obvious reason for this lack of trade is scarcity of foreign exchange with which to facilitate intraregional commercial transactions. Another is that even if barter trade were an option between Zimbabwe and Mozambique the former does not produce the maize to trade for the latter's wheat. There are differences in consumption patterns and preferences, but these are not matched by a development of specialization in the production of commodities.

Recently the economic hopes of Africa have fallen victim to corruption, poor management, external debt and the residual effects of world economic recessions. Governments that in better economic times could be counted on for foreign aid grants, and not just loans, such as the former Soviet Union have been required by domestic fiscal austerity measures to reduce their grants to African states. Thus, at a time when Africa is in need of financial support the most, the sources of "free" funding have diminished. The region is trapped in a "Catch-22." This is why initiatives such as SADC are of vital importance to the region's growth. If SADC really wants to keep up with the new world order and reduce its dependence then it must realize that its "model for regional economic cooperation imposes considerable limitations on efforts to affect resource allocation other than via the aid coordination function."

There must be a shift in policies at work in order to move with the times; especially when democratic measures are being fostered. African development has to come from a "bottom-up" approach promoting self-reliance, participation and mobilization of the masses, and the transformation of structures. Although there are no documented examples to date on macro-level successes of this kind, many local/communities have opted out of the national economy in all of these countries and survived better on their own, through parallel markets. Recognizing that the people must take part in decision-making, SADC has undertaken new initiatives to collaborate with NGOs, farming groups, and other grassroots organizations to ensure that the needs of the people are better addressed whilst the successes and failures of SADC projects in member states are appreciated and acted upon.

Fifteen years later, food security is still a priority second only to the coordination of infrastructural development including transport and communications which has experienced notable success. In line with the revised Food, Agriculture and Natural Resources (FANR) strategy, the regional food security project portfolio has now been amended into four related groups:

• the generation and exchange of information
• food policy analysis and research
• promotion of improved availability and
• promotion of improved food access following the review of the program.

Agricultural research and training has also played a key role in food production. Seed varieties conducive to Southern Africa's ecological conditions have greatly contributed to food security in the region. Thus a coherent regional strategy which aims to expand food production and increase regional and national grain storage has been adopted with key elements such as bringing more land under cultivation, introduction of new technology, capital investments in appropriate irrigation schemes, and improved marketing, credit and extension services.

3. Related Cases

• Botswana Cattle Farm

• Zambia Poaching

• Lesotho H20 Export

• Zimbabwe Tobacco

• African Dog Disease

• Angola Fishing

• Angola Diamonds

• Landmines in Angola

Keywords

1. Trade Product = cereals

2. Bio-Geography = plateau

3. Environmental Problem = Species Loss Land [SPLL]

4. Draft Author: Jennifer Erie, December 19, 1996

II. Legal Clusters

5. Discourse and Status: Agreement and In progress

6. Forum and Scope: Southern Africa and Regional

7. Decision Breath: SADC, United Sates(US), European Community(EC), Canada, Japan, Nordic States

8. Legal Standing: Treaty

III. Geographic Clusters

9. Geographic Locations

a. Geographic Domain: Africa

b. Geographic Site: Southern Africa

c. Geographic Impact: SADC

10. Sub-National Factors: Yes

11. Type of Habitat: Temperate

The southern African region is a tilted plateau with its highest edge towards the east and shelving towards the west. The wind system is such that the bulk of the rainfall comes from the Indian Ocean on the east and is caught by the escarpment, where the interior plateau stops to descend to coastal plains. The forests and grasslands are therefore all situated towards this area of higher rainfall in the east, with more arid conditions and vegetation towards the west. Only towards the extreme south and the north do exceptions occur; in the southern tip there is a small area of Mediterranean-type rainfall and in the north the beginning of the tropical rain belt gives rise to a wetter regime, a denser vegetation and larger rivers. In general, the river pattern confirms the rainfall pattern; water and productive soils lie towards the east. There is a band of fertile grasslands towards the east, on the higher levels of the plateau, that provides a base for forestry and arable farming in the east, decreasing gradually to extensive ranching in the west. Moreover, the topography of this central plateau is relatively flat and is not intersected by many deep river systems that are difficult to cross.

IV. Trade Clusters

12. Type of Measure: Regulatory Standard [REGSTD]

13. Direct vs. Indirect Impacts: Direct

14. Relation of Measure to Environmental Impact

a. Directly Related: Yes Cereals

b. Indirectly Related: No

c. Not Related: No

d. Process Related: Yes Habitat Loss

Growing pressure on land resources in many parts of southern Africa has extended crop farming into areas which for reasons of limited rainfall, climate, topography or soil quality are inappropriate for agriculture. Among the major problems associated with the extension of farming into marginal areas are the depletion of plant cover, wind and water erosion, loss of soil fertility and deforestation.

15. Trade Product Identification: Cereals

16. Economic Data: See Tables in Description above

17. Impact of Measure on Trade Competitiveness: Low

18. Industry Sector: Food

19. Exporters and Importers: US, EU, Canada, Japan, and Nordic States and SADC members (11)

V. Environment Clusters

20. Environmental Problem Type: SPLL

21. Name, Type, and Diversity of Species

Name: Cereal

Type: Maize/Sorghum/Wheat

Diversity: N/A

22. Impact and Effect: Medium and Structure

23. Urgency and Lifetime: High and hundreds of years

24. Substitutes: Like Products

VI. Other Factors

25. Culture: Yes

Decades of colonial rule have left their mark on southern Africa. Over the years, the colonial governments erected institutional structures which impoverished the people and still today render the independent states critically dependent on South Africa. Even the boundaries of the southern African nations bear witness to the colonial legacy. In their 19th century scramble for Africa, the colonial powers initially carved out countries without regard to economic, ethnic, or geographic realities. This has created destabilizing situations as evidenced in Somalia, Burundi and Rwanda today. The basic problem today facing all these countries is the poverty of the majority of the population, reflected in part by the relatively low per capita incomes. This pervasive poverty has been caused largely by inherited colonial institutions which denied the majority of the African population control over the rich resources of the region.

26. Trans-Border: Yes

27. Rights: Yes

Equal access to land is one of the most fundamental rights that the indigenous population have been denied, e.g. large, white commercial farmers own more than half of the arable land in Zimbabwe. Overpopulated areas, primitive production techniques, infertile soil, deforestation, lack of hybrid seeds for traditional crops, and no irrigation are directly the result of colonial exploitation for 90 years in Southern Rhodesia (now Zimbabwe). This underdevelopment was in strict contrast to the white commercial farm sector which benefitted for decades from the availability of fertile land stolen from the Africans beginning in the 1930s for hybrid crops, and from subsidized prices for crops and controlled cheap labor. As in South Africa, the rich capitalist production in Southern Rhodesia was dependent upon the destitution of African land and labor. Since independence land distribution patterns in southern Africa has been a very slow and painful process in most states.

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28. Relevant Literature

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.

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

Amelung, Torsten. "Regionalization of Trade in the Asia- Pacific." 1990. ASEAN Economic Bulletin Vol.9, No.2. Pp. 133-148

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

Cheru, Fantu. "Food Security and Institutional Development in SADCC." Poverty, Policy, and Food Security in Southern Africa. Edited by Coralie Bryant. 1988. Lynne Reinner Publishers, Inc. Pp. 267.

World Bank. "Environment Matters at the World Bank; Annual Review." Aidan Davy. Fall 1996.

National Academy of Sciences. Lost Crops of Africa; Volume 1 - Grains. National Academy Press. 1996

Kisanga, Eliawony J. Industrial and Trade Cooperation in Southern Africa. Athenaeum Press LTD. Great Britain. 1991

Thompson, Carol B. Harvests Under Fire: Regional Cooperation for Food Security in Southern Africa. Zed Books LTD. London. 1991

SADC. "Official Summit Brochure." Southern Africa Marketing Co., LTD. Botswana. 1995

Brown, Lester. Tough Choices; Facing the Challenge of Food Security. World Watch Institute. W.W. Norton & Co., LTD. New York. 1996

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Mail to Jennifer Erie