IAI Research Papers Promoting Stability and Development in Africa: How to Foster Cooperation between Public and Private Sectors Edited by Marta Martinelli and Nicoletta Pirozzi in cooperation with with the support of the Italian Ministry of Foreign Affairs and International Cooperation Edizioni Nuova Cultura Series Editor Natalino Ronzitti FEPS is the European progressive political foundation. As the only progressive think tank at European level, FEPS establishes an intellectual crossroad between social democracy and the European project, putting fresh thinking at the core of its action. As a platform for ideas, FEPS works in close collaboration with social democratic organisations, and in particular national foundations and thinktanks across Europe, to tackle the challenges that Europe and the world face today. Close to the Party of European Socialists (PES) but nevertheless independent, FEPS embodies a new way of thinking on the social democratic, socialist and labour scene in Europe and across the world. _________________________ First published 2015 by Edizioni Nuova Cultura For Istituto Affari Internazionali (IAI) Via Angelo Brunetti 9 - I-00186 Roma www.iai.it Copyright © 2015 Edizioni Nuova Cultura - Roma ISBN: 9788868125950 Cover: by Luca Mozzicarelli Graphic Composition: by Luca Mozzicarelli The unauthorized reproduction of this book, even partial, carried out by any means, including photocopying, even for internal or didactic use, is prohibited by copyright. Table of Contents List of Contributors ........................................................................................................................ 9 List of Abbreviations ................................................................................................................... 11 Preface, by Massimo D’Alema ................................................................................................. 17 Introduction, by Marta Martinelli and Nicoletta Pirozzi ............................................. 25 1. A Case Study of Ethiopia, by Mehari Taddele Maru and Abel Abate Demise ........................................................................................................................................ 29 1.1 Economic Development: Combating Poverty ................................................. 30 1.1.1 The Political Economy of Ethiopia: The 1970s Student Movement and its Dominant Political Framework ........................... 33 1.1.2 Developmental Political Party: Towards a UNDP-like State? .......... 34 1.1.3 Public-Private Partnership in Ethiopia: PPP in a Developmental State .................................................................... 36 1.1.4 The Ethiopian Public-Private Consultative Forum ........................... 37 1.2 Governance and Democratisation: a Mixed Performance Record ............ 38 1.2.1 Federal Policy: Addressing National Civil War and Localised Conflicts ............................................................................................ 38 1.2.2 Ethiopia According to International Indicators .................................... 40 1.2.3 Elections in Ethiopia: The Democracy Deficit ..................................... 43 1.3 Peace and Security: Main Factors for Insecurity and Instability ............ 46 1.3.1 External Threats ................................................................................................ 46 1.3.2 Internal Threats ................................................................................................. 48 1.4 Ethiopia’s Regional Diplomatic and Integrative Role: Stability, Peace and Development ........................................................................................... 49 1.4.1 Leadership in Multilateral Diplomacy ..................................................... 51 1.4.2 Bilateral Relations: Ethiopia and Its Neighbours ................................. 53 1.4.3 The Integrative Role of Ethiopia ................................................................ 54 1.5 Trends: Reform Outpacing Crisis? Or Crisis Outpacing Reform? ........... 55 1.5.1 The Security Nexus: Climate Change, Water, Food and Energy Security ................................................................................................. 59 Conclusions .............................................................................................................................. 60 Recommendations ................................................................................................................. 63 5 TABLE OF CONTENTS 2. A Case Study of Mozambique, by Paulo Mateus Wache ........................................ 67 2.1 Historical Overview: From Socialism to Capitalism ..................................... 68 2.2 Public-Private Sector Relations ............................................................................ 70 2.2.1 Prevalence of Public Sector over Private Sector (1975-1990) .................................................................................................................. 71 2.2.2 Transition Period (1990-2000) ................................................................. 75 2.2.3 Consolidation of Private Sector (2000-2014) ..................................... 76 2.3 Socio-Economic Development ............................................................................... 81 2.4 Private Sector and Democratic Governance .................................................... 85 2.5 Private Sector and Stability .................................................................................... 88 Conclusions .............................................................................................................................. 90 Recommendations ................................................................................................................. 91 3. A Case Study of Nigeria, by J. Shola Omotola ............................................................. 93 3.1 The Private Sector and Socio-Economic Development .............................. 95 3.1.1 National Policy Initiatives/Interventions for Socio-Economic Development .................................................................... 96 3.1.2 Policy Impact on Private Sector and Socio-Economic Development ....................................................................................................... 99 3.1.3 Despite Growth, Key Concerns and Challenges Abound .............. 101 3.2 The Private Sector and Governance and Democracy ............................... 103 3.2.1 Selected CSOs and the Promotion of Governance and Democracy ....................................................................................................... 105 3.2.2 Despite CSO Mobilisation, Key Concerns about Governance and Democracy Remain ..................................................... 109 3.3 The Private Sector and Peace and Security .................................................. 110 3.3.1 Public and Private Sector Responses to the Challenge of Peace and Security ........................................................................................ 112 Conclusions and Recommendations .......................................................................... 114 4. A Case Study of South Africa, by Catherine Grant Makokera .............................. 117 4.1 Cooperation between the Public and Private Sectors in South Africa .............................................................................................................................. 119 4.1.1 Overview of State-Business Relations in South Africa ................. 119 4.1.2 South Africa’s Economic Diplomacy ..................................................... 125 4.2 The Private Sector and Socio-Economic Development ........................... 128 4.2.1 Overview of South African Economic Policy ..................................... 128 4.2.2 Key Sectors for Development and Structural Transformation ............................................................................................... 131 4.2.3 Regional Economic Development and South Africa ...................... 132 4.3 The Private Sector and Governance and Democracy ............................... 135 4.3.1 Overview of Governance and Democracy Indicators in Southern Africa .............................................................................................. 135 4.3.2 Challenges to Combating Corruption ................................................... 135 6 TABLE OF CONTENTS 4.4 The Private Sector and Peace and Security .................................................. 137 4.4.1 Crime and Security in South Africa ....................................................... 137 4.4.2 South Africa as a Regional Peacemaker .............................................. 138 Recommendations .............................................................................................................. 140 5. Promoting Stability and Development in Africa: How to Foster Cooperation between Public and Private Sectors, by Giorgio Garbasso, Marta Martinelli and Nicoletta Pirozzi ................................ 147 5.1 Implementing Economic Policies and Structural Reforms for Sustainable Development: Fostering PPPs in the Energy, Infrastructure and Agricultural Sectors ......................................................... 148 5.1.1 State-Business Relations in Domestic and Foreign Economic Policies ......................................................................................... 150 5.1.2 PPPs in Three Key