Research report no. 75 M.R. Bhagavan Angola's Politt al Economy 1975-1985 Scandinavian Institute of African Studies, Uppsala RESEARCH REPORTS B€low you will find a lJst of Research Reports pu­ 21. Ndongko, WIlfred A., RegIOnal Economlc Plan­ bltshed by the institute. Some of the reports are nmg m Cameroon. 21 pp. Uppsala 1974. Skr. 15:-. unfortunately out of prmt. Xero-c0ples of these ISBN 91-7106-073-1. reports can be obtained at a cost of Skr. 0:50 per page. 22. Plppmg-van Hulten, Ida, An EpIsode of Colom­ al History: The German Press In Tanzania 1901­ l. Meyer-Helselberg, R., Notes from LIberated 1914. 47 pp. Uppsala 1974. Skr. 15:-. ISBN 91­ Afncan Department In the Archlves at Fourah 7106-077-4. Bay College, Freetown, Sierra Leone. 61 pp. Upp­ sala 1967. (OUT-OF-PRINT) 23. Magnusson, Ake, Swe<hsh Investments m South Africa. 57 pp. Uppsala 1974. Skr. 15:-. ISBN 91­ 2. Not pubhshed. 7106-078-2. 3. Carlsson, Gunnar, Benthomc Fauna in Afncan 24. Nellls, John R., The Ethmc CompoSltlOn of Watercourses with Special Reference to Black Fly Leading Kenyan Government POSitIons. 26 pp. Upp­ Populallons. \3 pp. Uppsala 1968. (OUT-OF­ sala 1974.Skr. 15:-. ISBN 91-7106-079-0. PRINT) 25. Francke, Amta, KIbaha Farmers' Trammg Cent­ 4. Eldblom, Lars, Land Tenure - SoCial Organisa­ re. lmpact Study 1965-1968. 106 pp. Uppsala 1974. tIOn and Structure. 18 pp. Uppsala 1969. (OUT-OF­ Skr. 15:-. ISBN 91-7106-081-2. PRINT) 26. Aasland, Tertlt, On the Move-to-the-Left In 5. BJeren, GUnilla, MakelIe Elementary School Uganda 1969-1971. 71 pp. Uppsala 1974. Skr. 15:-. Drop-out 1967. 80 pp. Uppsala 1969. (OUT-OF­ ISBN 91-7106-083-9. PRINT) 27. Kirk-Greene, A.H.M., The GeneSIS of the NIge­ 6. Moberg, Jens, Peter, Report Concernmg the rian ClVlI War and the Theory of Fear. 32 pp. Soil Profile InvestlgatlOn and CollectIOn of Soil Uppsala 1975. Skr. 15:-. ISBN 91-7106-085-5. Samples in the West Lake RegIOn of Tanza-nla. 44 pp. Uppsala 1970. (OUT-OF- PRINT) 28. Okereke, O1<oro, Agranan Development Pro­ grammes of Afrlcan Countnes. 20 pp. Uppsala 7. Sal mus, Ruth, The TradItIOnai Foods of the 1975. Skr. 15:-. ISBN 91-7106-086-3. Central Ethloplan Highlands. 34 pp. 1971. (OUT­ OF-PRINT) 29. KJekshus, Helge, The Elected Ellte. A SoCIO­ Economlc Prof11e of Candldates In Tanzamals Par­ 8. Hagg, Ingemund, Some State-controlled IndustrI­ Ilamentary ElecHon, 1970. 40 pp. Uppsala 1975. ai Compames In Tanzania. A case study. 18 pp. Skr. 15:-. ISBN 91-7106-087-1. Uppsala 1971. Skr. 10:-. 30. Frantz, Charles, Pastoral Socletles, StratJflca­ 9. B}eren, GUnIlla, Same Theoretlcal and Metho­ tlOn and NatIOnal IntegratIOn In AfrIca. 34 pp. dologlcal Aspects of the Study of Afrtcan UrbanI­ Uppsala 1975. ISBN 91-7I06-088-X. (OUT-OF­ zatlOn. 38 pp. Uppsala 1971. (OUT-OF-PRINT) PRINT) 10. LInne, Olga, An EvaluatlOn of Kenya Science 31. Esh, Tina & Rosenblum, 1I1lth, Tounsm In De­ Teacher's College. 67 pp. Uppsala 1971. Skr. 10:-. velopIng C'ountnes - Trick or Treat? AReport from the GarnbIa. 80 pp. Uppsala 1975. ISBN 91­ IL Nelhs, John R., Who Pays Tax m Kenya? 22 7106-094-4. (OUT-OF-PRINT) pp. Uppsala 1972. Skr. 10:-. 32. (,Iayton, Anthony, The 1948 ZanzIbar General 12. Bondestam, Lars, PopulatIOn Growth Contral Stnke. 66 pp. Uppsala 1976. Skr. 15:-. ISBN 91­ m Kenya. 59 pp. Uppsala 1972. Skr. 10:-. 7106-094-4. \3. Hall, Budd L., WakaH Wa Furaha. An EvaIua­ 33. PIPPlOg, Krut, Land HoldlOg m the Usangu Hon of a RadIO Study Group Campalgn. 47 pp. Plam. A survey of two vIllages In the Southern Uppsala 1973. Skr. 10:-. HIghlands of Tanzama. 122 pp. Uppsala 1976. Skr. 15:-. ISBN 91-7106-097-9. 14. Ståhl, MIchael, ContradlctlOns 10 Agncultural Development. A Study of Three MInimUm Package 34. Lundstrom, Karl Johan, North-eastern EthlOpl­ ProJects m Southern EthlOpla. 65 pp. Uppsala a: SOCiety In Famme. A study of three socIal 10­ 1973. Skr. 10:-. stItutlOns In a penod of severe stram. 80 pp. Upp­ sala 1976. ISBN 91-7106-098-7. (OUT-OF-PRIN1) 15. Linne, Olga, An EvaluatlOn oi Kenya Science Teachers College. Phase Il 1970-11. 91 pp. Upp>a­ 35. Magmlc;c;ofl J The VOJce of South la 1973. :'kr. 15:-. 55 DP. Uppsala ISBN 91-1106-106-1. OF-PRINT) 16. Lodhl, !'\bdulazlz Y., The InstitutIOn of Slavery m Zanzlbar and Pemba. 40 pp. Uppsala !973. 36. Chal, Yash Reflectlon on Law and ECOTloiTI- ISBN 91-1106-066-9. (OUT-OF-PRINT) IC IntegratlOn In Afnca. 41 pp. Uppsala 1976. J:,BN 91-7106 105-3. (OUT-OF-PRINT) i7. LundqVist, Jan, rhe ECOnOlTI1C Structure of MO­ rogoro Town. 70 pp. Uppsala 1973. ISBN 91-1106­ m 068-5. (OUT-OF-PRINT) m pp. Upp- 18. Bondestam, Lars, $orne Notes on AfrIcan 5ta­ tlstlCS. CoJlectlOn, relIablllty and interpretatIOn. 59 pp. Uppsala 1973. ISBN 91-7106-069-4. (OUT­ 38. c'reen, Reginald H., Ioward ~cla!lsm and Self OF-PRINT) RelIance. Tanzania's for Sustamed Transl­ tlOn ProIeeted. 51 !977. I,)BN 91-7106- 19. Jensen, Petf>r Foge, Sovlet Research on Afri­ 108-8. (OU r-ClF-I'RINT! ca. With special reference to mternatlOnat rela­ tJOns. 68 pp. Uppsala 1973. ISBN 91-7106-070-7. ~;,~~~r~~~a,y~::~:'~~~h:X:hoOls (OUT-OF-PRINT) : Dlmts Ethlopld. 130 pp. Uppsala 20. Slostrom, Rolf &: YDLC A LItera- 91··7106-10'1-6. (OUT-OF-PRINT) cy Campalgn In EthlOpIa. pp. Uppsala 1973. ISBN 91-7106-071-5. (OUT-OF-PRINT) M.chdel, New :>eeds m Old )011. A land reform process In Western WoHe­ 1975-16. 90 pp. Uppsala 1977. Skr. 91-7106-112-6. Research Report No. 75 M.R. Bhagavan ANGOLA'S POLITICAL ECONOMY 1975-1985 The Scandinavian Institute of African Studies Uppsala 1986 This research report is published with support from SIDA (Swedish International Development Authority). ISSN 0080-6714 ISBN 91-7106-248-3 © M.R. Bhagavan Printed in Sweden by Motala Grafiska Motala 1986 For Anoo and Annika "We say, and it is easy to say, that we want to build socialism. We say so at every step. But what does socialism mean for each person? For each person? \{hat degree of happiness can socialism give to each one of us? We shall have socialism when everyone can say: I have my house; I have my small belongings; I have my cooperative; I have the pos­ sibility, in the area where I live, of getting what I need in the way of food, medical treatment, for getting from one place to an­ other, that is, having transport facilities; having organised tra­ de; being able to sell produce; and, lastly, being able to exchange goods within the country or even with other countries, so that our work really represents an advantage for everyone. We shall be able to say we have socialism when there are no clas- ses exploit each other; Iyhen l-le no longer have a group or va- rious groups of people in the country who vant to have greater ad­ vantages than the rest. This mean" that Ive must ('reate conditions. \{hat are those condi­ tions?" President Agost nho N2tO Flon, the speech delivC'rcd t Calandula, 1n e province, on 18Augus 1979. CONTENTS THE STATE OF THE POLITICAL ECONGtfY ON THE EVE OF INDEPENDENCE Introduction 7 The Condition of the People la Agriculturai Production 12 Industrial Production 14 Integration into the world market and the role of foreign capital 15 THE PRESENT CRISIS IN THE ECONOMY South Africa's Undeclared War agatnst Angola 18 Shortages of Essentiai Commodities and the Role of the "Parailei Economy" 18 Imports: The Lifeline of the Urban Population 24 The Collapse of Industrial Production 25 State and Urban Dependence on Oil and Diamond Revenues 27 CriS1S measures announced 31 ESTABLISHING THE CONDITIONS FOR SOCIALISH Revolutionary change ln the political institutions and struclures 34 Changes in the relations of productlon 38 Stagnation and retrogression ln the productive forces 38 lihat is to be done? 41 vfuat kind of class struggle lS gOIng on? 44 NaTES AND REFERENCES 46 Tables 1-25 50 APPENDIX War Damages 76 POST SCRIPT, December 1985 The War Situation 78 The Continuation of UNITA attacks 81 The Internai Situatlon in South Afrlca and its lmpact on Angola 83 The Economy in 1984 85 The Economy ln 1985 86 7 THE STATE OF THE POLITICAL ECONOMY ON THE EVE OF INDEPENDENCE Introduction The People's Republic of Angola (PRA) was proclaimed by the MPLA (People's Movement for the Liberation of Angola) on the 11th No­ vember 1975. By April 1976, with the help of the Cuban troops, FAPLA, (the People's Armed Forces for the Liberation of Angola, the military arm of MPLA) had driven out the invading South Afri­ can and Zairean troops. This defeat had immediate repercussions on their Angolan proteges, the FNLA (National Front for the Libe­ ration of Angola) and UNITA (National Union for the Total Indepen­ dence of Angola). (1) Any presence that the FNLA previously had in the country was wiped out. Although UNITA could not so easily be eradicated, its armed attacks were greatly reduced and its influ­ ence was restricted to certain pockets in the southern provinces. The retreating troops from South Africa, Zaire, the FNLAand UNITA plundered consumer durables, vehicles, machinery and equipment, and destroyed what they could not take with them, blowing up brid­ ges and installations, and burning down villages and food stores. By 1975, the number of Portuguese settlers in Angola was about 340,000.