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World Bank Document ReportNo. 8906-ANG Angola An IntroductoryEconomic Review (In Two Volumes) Volun e II: Annexes and Statistical Appendix Public Disclosure Authorized June29, 1990 CountryOperations Division SouthernAfrica Department AfricaRegion FOR OFFICIALUSE ONLY Public Disclosure Authorized Public Disclosure Authorized \ x, NJ - DocumentOf the world Bank Public Disclosure Authorized Thisdocument has a restrictedO1istribution and may beused I~y recipients only in the performanceof theirofficial duties. Its contentsmay not othef.wise be disclosedwithout WmWi Bank authorization. CURRENCYEQUIVALENT Since 1975 US$ 1.00 - Kz 29.92 FISCAL YEAR January 1 - December 31 FOR OMCIALUSE ONLY ANGOLA AN INTRODUCTORYECONOMIC REVIEW TABLE OF CONTENTS Volume II - Annexes and StatisticalAppendix Page No. ANNEX I ECGNOMICDEVELOPMENT DURING THE COLONIALPERIOD 1 A. Introduction. 1 B. A South Atlantic Link. ..... 2 C. Settlementand Contract Labor. 6 D. Soldiers and Industrialization. 13 E. Economy and Society at Independence. 21 Bibliography......... ..... ..... 25 ANNEX II THE ANGOLAN ECONOMY IN CCMPARATiVEPERSPECTIVE 28 ANNEX III GOVERNMENT INSTITUTIONS. .... 30 ANNEX IV THE SYSTE4 OF NATIONALACCOUNTS IN ANGOLA 32 ANNEX V THE LEGJ.'FRAMEWORK OF SEF. 40 ANNEXVI THE TAX SYSTEM .... 47 ANNEX VII AGRICULTURE.. 51 A. AgriculturalPerformance, Policy and Production Response.. ... .... 51 B. Major AgriculturalProducts . ....... 55 C. Rural Structure... .. ....... 63 D. AgriculturalSupport Servicesc. .. *.. 66 E. AgriculturalPolicy Adjustmentand Reform...... 70 ANNEX VIII TRANSPORTATAND COMMUICATION....... 73 A. Sector Overview and Organization. 73 B. Highway System .... 77 C. Rail Transport..... I. .... 82 D. Air Sector e.. 86 E. Maritime and Port Sector. 91 F. Mail and Telecommunica tions 99 G. Availabilityof Modal Spare Parts. 104 H. MINTEC Analysis and Planning. 106 I. Issues, Prospectsand Recommendations 113 This documenthas a restricteddistribution and may be used by recipientsonly in the performance of their officialduties. Its contents may not otherwisebe disclosedwithout World Bank authorization. Page No. ANNEX IX EDUCATION,**,. .** ..... ... ... 118 A. Structureand Organizationof the Education System ................................................. 118 B. Primary Education ....... ...... .... .......... 124 C. Secondary Education ............................. 127 D. Higher Education ................... .... .... 130 S. Recommendations ................................. 133 List of Annex Tables ................................... 136 Statistical Appendix ............................................ 136 Maps .............................................................. 214 Map I Angola 214 Map II Angolas Relief .......... .............. 215 Map III Angolas PopulationDen .....sity# ............ 216 ANNEX TABLES Page Number Annex I: ECONOMICDEVELOPMENT DURING THE COLONIAL PERIOD 1.1 Principal Exports, 1950-73......................... 4*.... 24a 1.2 Major Imports, 1952-73.......... .. 24b 1.3 Output of Major Agricultural Products, 1952-73......... 24c 1.4 Population and GDP, by Type of Activity ................ 24d I.5 Manufacturing Output by Major Industry Group, 1966-70 ...............................o........................ 24e 1.6 Balance of Payments, 1955-73........................ .... 24f 1.7 Monetary Development, 1960-73.......................... 24g 1.8 Gross Domestic Product, 1953-73....................... 24h 1.9 Selected Social Indicators............................. 24i Annex VI: TAX SYSTEM VI.1 Petroleum Taxation, 1980- ...........................87 47 VI.2 Changes in Price and Output of Crude Oil. 1980-86 .. 48 VI.3 Transfers to Government by Selected Public Enter- prises, 1984-86 ...................................................49 Annex VII: AGRICULTURE VII.1 Distribution of Cattle and Goats in Southern Angola ... 63 VI1.2 Losses of State owned Agricultural Enterprises .. 64 Annex VIII: TRANSPORT VIII.1 Output of MINTEC Controlled Transport Services, 1985-87 .................o..................................... 74 VIII.2 Output of Transport and Communications Sector.......... 75 VIII.3 Road Network, by Type and Length, 1986 ................. 77 VIII.4 MINTEC Bus Utilization Data, by Province, 1985......... 79 VIII.5 ETP Urban Bus Performace Indices, 1985-87........... #. 80 VIII.6 Rail Transport, Passengers and Cargo ...... ..... ... 83 VIII.7 Railway Locomotive and Rolling Stock Data, 1985-86..... 84 VIII.8 TAAG Operations, by Market, 1986 ...................... 87 VIII.9 ENAMA Airport Network, 1987................... 89 VIII.10 Size and Output of Maritime Fleets, 1986 and 1987...... 92 VIII.11 ANGONAVE Cargo, by Category, 1986 ...................... 93 VIII.12 SECIL Maritima Fleet, Selected Data, 1986.............. 94 VIII.13 Main Port Freight Throughput, 1985-1987................ 97 VIII.14 Cabotage Traffic, 1985................................. 98 VIII.15 Throughput of Angolan Mail Office, 1986................. 101 VIII.16 Inter-urban Telephone Network, 1975 and 1980 ............ 102 VIII.17 ENATEL and EPTEL, Selected Data, 1985 and 1986......... 103 VIII.18 MINTEC Short Term Strategy, 1987 ...................... 109 VIII.19 Projected Freight and Passenger Movements.............. 112 VIII.20 HINTEC Proposed Program, 1987.......................... 112 Page No. Annex UXt EDUCATION IX.1 Government Budget for Education, 1980-87............... 123 IX.2 Government Expenditure on Education, 1980-82........... 123 IX.3 Primary Education - Number of Teachers, Classrooms and Schools, 1981183.............................. 125 IX.4 Primary Education Enrollment Ratios..................... 125 TX.s Primary Education Net Enrollment Ratios for four Provinces ............#.*... ...................*....... 126 IX.6 Primary Education - Average Promotion, Repeat and Dropout Rates, 1980-84.... ... .. .......... 127 IX.7 Enrollment in Higher Education ........................ 131 ANNEX2 Page 1 of 24 ECONOMICDEVELOPMENT DURING THE COLONIALPERIOD A. Introduction 1. Unlike the majority of former European colonies in sub-Saharan Africa, which became independentin the late 1950's and early 1960's, Angola has been an independentnation only since 1975. The length of the Portuguesecolonial presence in Angola (over 500 years) and its particular characteristicsleft a colonial legacy which continuesto constrainAngolan economic development. The unique nature of the Portuguesecolonial system is that it was based on an indigenouslabor system that was never free." Domestic slaverywas legal until 1870 when it was replacedby a brutal system of forced labor (euphemisticallycalled contract labor") until 1961 when it was abolished in the wake of the nationalistuprisings. Moreover, since the 1920s, Angolan developmentpolicy focusedprimarily on raising the number and prosperityof the white settlersand increasingthe coffers in Portugal at the expense of the indigenousAngolan peoples. Angola's best agriculturallands were seized by Portuguesesettlers. Angola became the dumping ground not only for hundreds of thousandsof largely illiterate Portuguesebut also became the repositoryfor Portugal'skey exports such as alcoholicbeverages, in particularin the twentiethcentury. Prior to the outbreak of the armed struggle in 1961, Portugueseeconomic interests enjoyed a virtual monopoly over investmentsin the colony and, given Portugal'sown economic under-development,this caused unique distortions in the Angolan economy not found in parts of Africa colonizedby the British, French, or even the Belgians. Finally, the fact that over half of the 325,000white settlershad never gone to school and the vast majority of the rest had less than four years of education,resulted in the Portugueseoccupying almost every position in the modern economic sector from engineersand doctors to waiters and taxi drivers. Thus, shockingly few Angolans were trained in any skilledprofession. The singularityof Portugueseoverseas policy makes it particularlyimportant to analyze the pattern of colonial developmentin Angola in order to understandthe opportunitiesand constraintsof the People'sRepublic of Angola fourteen years later. 2. Angola's colonial economy can be characterizedthrough various stages or cycles of development. These cycles can even be named after the major export and its directionsslaves to Brazil, coffee to Portugal and oil to the United States, each cycle defining a period during which the external se:tor of the economy is dominatedby a particularproduct, by a particularmarket or both. The analysis of Angola's developmentcannot neglect the interactionbetween economicdependence and colonial rule. For purposes of exposition,the colonial economichistory of Angola can be divided into three broad periods. The first period includes the early alliance between the Portugueseand Congolesecrowns, as well as the slave trade directed mostly to Brazil, (sometimesreferred to as a South Atlantic link). The second period begins with the hundred years of transitionfrom slaves to coffee, during which territorialoccupation and settlementtook place, and includes the emergenceof a coffee export economybased on -2- AM=X I Page 2 of 24 quasi-forced labor. In the forties, the Angolan economy Initiated a growth process that involvedconsiderable immigration from Portugal, in response to the coffee boon. The white settlerpopulation increased from 44,000 in 1940 to about 325,000by 1974. Generallyfavorable prospects for external trade were decisive in the evolutionof internal conditions,reflected by changes in industrialregulation,
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