Causes and Solutions to Economic Crisis in Sub-Saharan Africa
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University of Central Florida STARS Electronic Theses and Dissertations, 2004-2019 2006 Cures To Stalled Development: Causes And Solutions To Economic Crisis In Sub-saharan Africa Monika Thiboutot University of Central Florida Part of the Political Science Commons Find similar works at: https://stars.library.ucf.edu/etd University of Central Florida Libraries http://library.ucf.edu This Masters Thesis (Open Access) is brought to you for free and open access by STARS. It has been accepted for inclusion in Electronic Theses and Dissertations, 2004-2019 by an authorized administrator of STARS. For more information, please contact [email protected]. STARS Citation Thiboutot, Monika, "Cures To Stalled Development: Causes And Solutions To Economic Crisis In Sub- saharan Africa" (2006). Electronic Theses and Dissertations, 2004-2019. 771. https://stars.library.ucf.edu/etd/771 CURES TO STALLED DEVELOPMENT: CAUSES AND SOLUTIONS TO ECONOMIC CRISIS IN SUB-SAHARAN AFRICA by MONIKA O. THIBOUTOT B.A. University of Central Florida, 2004 A thesis submitted in partial fulfillment of the requirements for the degree of Master of Arts in the Department of Political Science in the College of Sciences at the University of Central Florida Orlando, Florida Fall Term 2006 Major Professor: Bernadette M.E. Jungblut © 2006 Monika O. Thiboutot ii ABSTRACT The purpose of this thesis is to investigate some of the contending issues associated with economic underdevelopment in sub-Saharan African states. Specifically, this thesis focuses on the combined effects of World Bank and International Monetary Fund (IMF) economic austerity programs, the increased spread of the HIV/AIDS pandemic, and the continuous democratic deficit on the sluggish economic performance within four sub-Saharan African countries – Ghana, Kenya, Botswana and the Democratic Republic of Congo. The research questions are: are there any unique political, cultural, and economic issues that underscore and determine the path of sub- Saharan African development? What are the potentials for sub-Saharan Africa going beyond its present state of socioeconomic and political underdevelopment? Can sub- Saharan African nation-states truly claim the 21st century? It is hoped that what is learned from examining the situation in these four countries may be generalizeable to other sub-Saharan African states. This thesis has been written with the conviction that sub-Saharan Africa, although it has missed opportunities over the past thirty years, has not completely closed the door on economic development. Although sub-Saharan African conditions have not favored development and there is no simple solution for sub-Saharan Africa’s economic and social ills, there are a number of ‘common sense’ approaches toward sustainable economic and social development. This thesis examines why sub-Saharan Africa’s economic crisis has persevered for three decades, and why efforts to establish and uphold more effective economic policies and functioning public institutions have been so much more difficult in sub-Saharan Africa than elsewhere. My account concentrates on iii political and institutional factors: I explore how the predicament has progressed over the last thirty years, and the repercussions of the long-term nature of this predicament. The focal purpose is to identify and explain the causes which have kept sub-Saharan Africa for several decades mired in an ostensibly permanent crisis. The general theme of the thesis emphasizes that politics and economics are interconnected in sub-Saharan Africa. Moreover, the thesis focuses on the changing role of politics and markets in the process of economic development since the 1970s – and prospects for the future of this region. iv ACKNOWLEDGMENTS This thesis has been in the works for a long time. It could not have been completed without the help and encouragement of a lot of people, most especially my husband, Scott, who supported me through the long hours and the late nights. This work would not have been possible without the support and encouragement of my advisor and committee chair, Dr. Bernadette M.E. Jungblut, under whose supervision I chose this topic and began the thesis. I also thank the members of my graduate committee, Drs. Trudi Morales and Brent Marshall for their guidance and suggestions. v TABLE OF CONTENTS LIST OF FIGURES .........................................................................................................viii LIST OF TABLES............................................................................................................. ix CHAPTER ONE: OVERVIEW AND LITERATURE REVIEW..................................... 1 Introduction..................................................................................................................... 1 Development Theory and Practice over Time and Space............................................... 2 Modernization Theory and the Impact of Cultural Values ............................................. 4 Critiques of Modernization Theory ................................................................................ 8 Dependency Theory: Theory of Underdevelopment ...................................................... 8 World-Systems Theory ................................................................................................. 14 Globalization and its Impact ......................................................................................... 16 CHAPTER TWO: THE PLIGHT OF SUB-SAHARAN AFRICA................................. 18 Challenges Facing Sub-Saharan Africa in the Twenty-First Century .......................... 18 Democracy and Development in Sub-Saharan Africa.................................................. 26 Political Democracy and Economic Growth: A Theoretical Review ........................... 28 The Interaction between African Democracy and Economic Growth.......................... 35 Data and Methodology / Empirical Findings................................................................ 40 Conclusion .................................................................................................................... 43 A Comparative Synthesis of Four Case Studies ........................................................... 44 Botswana................................................................................................................... 45 Kenya ........................................................................................................................ 49 Democratic Republic of Congo (formerly Zaire) ..................................................... 55 Ghana ........................................................................................................................ 60 CHAPTER THREE: A COMPARISON OF FOUR CASE COUNTRIES..................... 66 The Colonial Legacy..................................................................................................... 66 The Economic Benefits and Costs of Colonialism ....................................................... 68 Differences among Colonial Regimes: A Look at the Case Countries......................... 72 Forty Years of Independence in Africa: ‘The Lost Decades?’ ..................................... 78 The External Debt Burden ............................................................................................ 82 Is SSA’s Debt a Cause or Outcome of its Economic Difficulties?............................... 86 Economic Recovery, Debt and Dependence................................................................. 87 The Impact of Structural Adjustment: Case Countries’ Experiences ........................... 91 Ghana ........................................................................................................................ 92 Kenya ........................................................................................................................ 93 Botswana................................................................................................................... 95 The Democratic Republic of Congo (DRC) ............................................................. 98 CHAPTER FOUR: AIDS – SUB-SAHARAN AFRICA IN PERIL............................. 103 AIDS in Africa: Heartbreak and Hope........................................................................ 103 The Social and Economic Impact of HIV/AIDS ........................................................ 104 SSA at the Crossroads: Battling HIV/AIDS in Case Countries.................................. 110 Lessons Learned About Combating HIV/AIDS ......................................................... 117 CHAPTER FIVE: SOLUTIONS FOR ECONOMIC RECOVERY AND ALTERNATIVE DEVELOPMENT STRATEGIES .................................................. 120 Looking Ahead: Long-Terms Prospects for Sub-Saharan Africa............................... 120 Sub-Saharan Africa: Claiming the 21st Century?........................................................ 127 vi APPENDIX: STATISTICS SUMMARY...................................................................... 133 REFERENCES ............................................................................................................... 138 vii LIST OF FIGURES Figure 1. Map of Colonial Partition of Africa – “The Scramble for Africa”.................... 78 Figure 2. AIDS in Africa ................................................................................................ 119 Figure 3. The Correlation between Freedom and Economic Wealth.............................