Economic change, governance and natural resource wealth : the political economy of change in southern Africa

This volume analyzes the ways in which natural resource wealth has shaped authoritarian political regimes and statist economic systems in the countries of southern Africa in the post-colonial period. It consists of five essays. The first sets out the historical framework and emergence of natural resources as the crucial driver of economies in sub-Saharan Africa. Three essays, drawing on in-country research, focus on Tanzania, Zambia and Zimbabwe. They show how this explains the economic evolution of those countries - in particular, the impacts of economic and institutional changes on the bulk of the population, the rural poor. The final essay explores the nature of the changes and their neoliberal economic context, and the ways in which their harmful consequences might be relieved. This volume analyzes the ways in which natural resource wealth has shaped authoritarian political regimes and statist economic systems in the countries of southern Africa in the post-colonial period. It consists of five essays. The first sets out the his Cover 1 Half Title 2 Title Page 4 Copyright Page 5 Table of Contents 6 List of Maps 10 Foreword 11 Preface 14 Acknowledgements 19 Acronyms and Abbreviations 22 Introduction 26 Origins 28 From Analysis to Advocacy 30 A Broadened Perspective 32 The Analytical Approach 34 Limitations 35 Chapter 1: The Political Economy of Natural Resource Wealth 36 Natural Resource Wealth 38 The Scramble for Africa 38 Initial Returns 40 The World Wars and Between 42 Towards Decolonization 44 Economic Foundations of Authoritarianism 45 Rent-Seeking State Capitalism 46 Monopoly Production 46 Smallholder Commodity Production 47 Large-scale Commercial Agriculture 47 Authoritarian Regimes in Southern Mrica 48 (Un)intended Political Impacts of Structural Adjustment 51 Resistance 53 Enter the Technocrats 54 Good Governance 55 Natural Resource Wealth: Old Challenges in the New Millennium 57 Continued Dependence on Natural Resource Wealth 58 Terms of Trade and Market Fluctuations 59 Natural Resource Wealth and Rent Seeking 61 Challenges for Civil Society 63 Chapter 2: Tanzania 66 The Imperatives of Change 68 Agrarian Socialism and Authoritarianism 68 Structural Change and Natural Resource Sectors 72 Overcoming Resistance 72 Restructuring the Agricultural Sector 74 Opening the Mining Sector 76 Expanding Tourism 80 The Economic Impact of the Structural Reforms on Mining and Tourism 83 The Promise of Continuing Change 86 Benefits and Beneficiaries 86 Costs and Their Distribution 88 The Political Realm 89 A Tentative Balance Sheet 91 Chapter 3: Zambia 94 Constructing the Authoritarian Regime 96 Economic and Resource Policy Under Kaunda and UNIP 96 The Imperative to Adjust 99 Collapse of the Copper Economy 99 The Reform Package 102 Institutional Reforms for Rural Communities 104 Structural Dualism 104 UNIP's Institutional Grip 106 The MMD's Turn 108 Impact of Reforms on Deep Rural Areas 109 Opportunities and Growing Conflicts 113 Dismantling Dualism: to Whose Benefit? 115 Towards a New Authoritarianism? 117 A Tentative Balance Sheet 118 Chapter 4: Zimbabwe 122 The Foundations of Conflict 124 Settler Colonialism 124 Unilateral Declaration Oflndependence (UDI) 127 Independence 128 Economic Reforms 131 The Need to Reform 131 Impact of Structural Reforms on Tourism 134 Three Local Experiences 135 Under Adjustment's Shadow 138 Political Manipulation of the Land Question 141 Towards Resolution or Protracted Conflict? 143 Chapter 5: Natural Resource Wealth in the Construction of Neoliberal Economies in Southern Africa 148 What Groups or Economic Agents Have Gained or Lost Control over Natural Resources in the Context of Economic Reforms? 151 From the State to Private Economic Agents 151 Transfer of Traditionally Managed Resources to Private Control 152 Transfer Among Private Owners 153 Through What Processes, Policies and Relations Have These Groups Acquired or Lost Control over Natural Resources? 153 Establishing the Neoliberal Policy Context 153 Providing Guarantees and Incentives 154 Institutional Reforms 155 Corruption and Collusion 157 Coercion 158 Will Those Changes Promote Sustainable Development Paths by Promoting Environmental Sustainability, Enhancing Social Equity and Increasing Governments' Public Accountability? 159 Environmental Sustainability 159 Enhancing Social Equity 161 Political Accountability and Transparency 162 Pursuing Reforms Without a National Consensus 163 Misplaced Policies 163 Misplaced Priorities 164 Missing Factor in the Development Equation 166 By Way of Recommendations 168 The Bretton Woods Institutions 168 Strengthening the Role of Civil Society 170 Guiding Principles: Natural Resource Wealth and the Rural Poor 171 Notes and References 176 Index 186 Political Economy,Natural Resource Wealth,Monopoly production,Good governance This book confronts the stark realities of how the economic and political reforms imposed in southern Africa have affected sectors based on agriculture, mining, tourism and forestry and what they have meant for the poor and the environment. It asks why the reforms evolved as they did, who has gained and who has lost. It shows that, with very few exceptions, the changes have benefited foreign companies and domestic elites, fostering corruption and monopolies and undermining civil society and political life.From this it explains what will have to be done by the international development and business communities to reverse these trends and stimulate the development of effective institutions for long-term, sustainable prosperity and social vitality.

The analysis presented in this book should be necessary reading for all those concerned with southern Africa and, beyond that, relevant for professionals in development, policy-makers and economists, as well as for academics interested in natural resource management elsewhere in the developing world.

These five essays analyze the ways in which natural resource wealth has shaped authoritarian political regimes and statist economic systems in the countries of southern Africa in the post-colonial period. The work reveals how the economics has warped politics and produced authoritarian regimes