Governance and Political Economy Constraints to World Bank CAS Priorities in Sierra Leone
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Governance and Political Economy Constraints to World Bank CAS Priorities in Sierra Leone James A. Robinsony October 2008 I am greatly indebted to Mohamed Gibril Sesay without whose assistance and wisdom I would never have been able to undertake this research. Most of the ideas I discuss here formed during discussions with him. I am also particularly indebted to Ishac Diwan who suggested and facilitated this research and most important challenged me to make it ambitious. I would also like to thank Doug Addison, Juan Costain, Engilbert Gud- mundsson, and Nicola Smithers for their suggestions and all of the people who gave so generously of their time in Freetown, Bo and Koidu. The views expressed in this paper are my own and not those of the World Bank Group. yHarvard University, Department of Government, IQSS, 1737 Cambridge Street N309, Cambridge, MA 01238; e-mail: [email protected]. Abstract In this paper I discuss the political economy of Sierra Leone and how it should in‡uence the World Bank’sCountry Assistance Strategy (CAS). The main focus of the research is to try to understand the extent to which the perverse political incentives which drove the country into poverty and civil war between 1961 and 1991 have re-asserted themselves since the return of peace in 2002. This question is made particularly compelling by the return to power in 2007 of the All People’sCongress Party, who presided over the decline of the country. My preliminary conclusion is that while there are some obvious changes in the political environment, appeal remains in the political strategies which were so costly to the nation and some new forces which have emerged have potentially perverse consequences. This likely undermines the e¤ectiveness of advice by the World Bank and also seriously reduces the prospects of successful economic development. There are also changes in the economic environment, such as the terms of trade, which may provide the prospect of sustained economic growth, but without political change such growth will likely be oligarchic, lead to large increases in inequality and unlikely to be pro-poor. I suggest that the best option for the World Bank is to attempt to further deepen the reform of political institutions which it has supported since 2002. Though political institutions are not the whole story, they do heavily in‡uence political incentives and the history of Sierra Leone makes clear that they have …rst-order e¤ects. While the Bank has, correctly, fostered decentralization, the reform process needs to be deepened and complemented by the reduction of executive autonomy, the strengthening of Parliament and the introduction of greater democracy into the institution of chieftaincy. 1 Introduction and Argument In 2002 Sierra Leone emerged from a 9 year civil war as possibly the poorest country in the World in terms of per-capita income and ranked last in terms of the United Nation’s Human Development Index. The political and economy history of the country since independence in 1961 can be easily summarized. After the early governments of Sir Milton Margai and his brother Sir Albert Margai, successive leaders of the Sierra Leone People’s Party (SLPP), the country was ruled from 1967 by the All People’sCongress Party (APC) until it was ejected from power by a military coup in 1992. During this period, under the presidencies of Siaka Stevens until 1985 and subsequently Joseph Momoh, the economy declined almost monotonically and state institutions collapsed. The coup, led by a group of young o¢ cers who formed the National Provisional Ruling Council (NPRC), was in response to the widening civil war which began with the …rst incursion across the border from Liberia of the Revolutionary United Front (RUF) in March 1991. The disintegration of state institutions created a vacuum which the RUF easily …lled. Though initially very far from a formidable military machine, they pushed on an open door. There is now an extensive academic literature on the war and its’ causes (Richards, 1996, Abdullah, 2004, Truth and Reconciliation Commission, 2004, Gberie, 2005, Keen, 2005) which links it closely to the collapse of the state. Keen (2005, p. 34) reproduces a quote from Abu Turay which rings very true “by the end of Momoh’srule he had stopped paying civil servants, teachers and even Paramount Chiefs. Central government had collapsed, and then of course we had border incursions, ‘rebels’and all the automatic weapons pouring over the border from Liberia. The NPRC, the ‘rebels’and the ‘sobels’[soldiers-turned rebels] all amount to the chaos one expects when government disappears. None of them are the causes of our problems, but they are symptoms.” Humphreys and Weinstein (2008) conducted a survey of ex-combatants and non-combatants to investigate the motivations of those who fought for the RUF (although it is worth noting 1 that 88% of the ex-RUF combatants reported having been forcibly recruited). Grievances also seem to have been important in creating the circumstances that led to the war. These stemmed from the exclusion inherent in the patrimonial style of politics which characterized the country prior to 1991, and also from more deep seated animosities due to elements of the local traditional political and economic structures of the society, such as the dominance of Chiefs over local resources and assets. In support of some of these ideas Humphreys and Weinstein (2008) …nd that proxies for poverty and lack of access to education predict voluntarily joining both the RUF and the civil defense groups that fought against the RUF. Most scholars also emphasize the lure of diamond wealth and loot as sustaining the war, though most reject this as an important source of the war. Since 2002 the country, with the help of the international community, has been rebuilding itself. A democratic election in May 2002 reappointed Ahmad Tejan Kabbah as president with 70% of the vote (he had previously been elected in 1996) and gave his Sierra Leone People’s Party (SLPP), which had been ousted from power by the APC in 1967, a big majority in Parliament. Voting patterns in many ways mirrored those from the 1960s where the SLPP had attracted most of its support from the South and East of the country, particularly Mendeland. The performance of the SLPP government after 2002 seems to have been mixed to say the least, and it was freely replaced by the Sierra Leonean people by the APC in the elections in August 2007. The APC’s presidential candidate, Ernest Bai Koroma, won 44% of the votes in the …rst round of the presidential election (55% in the run-o¤) and the APC took 59 of the 112 seats in Parliament. In this paper I discuss the political economy of Sierra Leone and how it should in‡uence the World Bank’s Country Assistance Strategy (CAS). The main focus of the research is to try to understand the extent to which the political incentives which drove the country into poverty and civil war between 1961 and 1991 have re-asserted themselves since the return of peace in 2002 and what the future will hold. The question seems to be particularly poignant given the return to power of the APC in 2007 since the APC was in power during the long decline of the country. 2 To address this question it is useful to distinguish between political and economic incentives and how these are generated by institutions and the political and economic environment. With respect to the political environment, my preliminary conclusion is that while there are some obvious changes, much appeal probably remains in the political strategies which immizerized the nation. I also note that while we should de…nitely celebrate the deepening of the process of democratization, there are signs that it may generate a new type of urban bias, exactly the sort of thing that many other institutional reforms, such as decentralization, were designed to …ght against. These factors potentially undermine the e¤ectiveness of long-term advice by the World Bank and seriously reduces the prospects of successful economic development and pro-poor growth. I also argue however that there are also changes in the economic environment, such as the terms of trade, which if they are going to be sustained, may provide the prospect of enduring economic growth, but without political change such growth will likely be oligarchic and lead to large increases in inequality. I suggest that the best option for the World Bank and the international community more generally is to attempt to further deepen the reform of political institutions which it has supported since 2002. Though political institutions are not the whole story, they do heavily in‡uence political incentives and the history of Sierra Leone makes clear that they have …rst- order e¤ects. While the Bank has, correctly, supported decentralization, the reform process needs to be deepened and complemented by reducing the power of the executive, strengthening Parliament and introducing greater democracy into the institution of chieftaincy The paper proceeds as follows. In the next section I give a quick analysis of the political economy of economic decline and state collapse in Africa as applied to Sierra Leone. I argue that Sierra Leone …ts very well both within the more specialized literature on the political economy of Africa and also the broader work on the impact of institutions on comparative development. In section 3 I articulate two questions which frame the rest of the discussion. First, what features of the society or polity led to such a terrible outcome, second, has governance changed in Sierra Leone since 2002 in such a way as to put the polity and economy onto a di¤erent and 3 better development path? Section 4 addresses the …rst question taking advantage of the wider social science literature on the origins of patrimonialism, but also focusing on idiosyncrasies of the Sierra Leonean case.