Hostname: page-component-586b7cd67f-rcrh6 Total loading time: 0 Render date: 2024-11-24T02:42:19.807Z Has data issue: false hasContentIssue false

Private sector development as poverty and strategic discourse: PSD in the political economy of EU–Africa trade relations*

Published online by Cambridge University Press:  11 February 2011

Mark Langan*
Affiliation:
Department of Politics, University of Stirling, Stirling FK9 4LA, United Kingdom

Abstract

Private sector development (PSD) has emerged as a core component of donor strategies aimed at making free markets work for ‘the poor’ through assistance to business sector capacity in low-income states. PSD initiatives cannot be understood, however, as technical exercises aimed solely at promoting development through business competitiveness. Instead they serve as normative concessions through which developmentally questionable market-opening has been rationalised by donors in pursuit of lucrative commercial opportunities in emerging economies. Examining the European Union's (EU) PSD framework in bilateral relations with the African, Caribbean and Pacific (ACP) states, the article examines the utilisation of PSD discourse in the ‘development branding’ of Economic Partnership Agreements (EPAs). PSD discourse is seen to facilitate a ‘double-veiling’ of asymmetric ACP–EU trade ties via legitimising images of equitable market-opening and the trickle-down of business wealth to ‘the poor’. Nevertheless, the reality of reciprocal trade structures combined with Europe's anaemic PSD resources bears little resemblance to the strategic illusions of PSD. In particular, the interventions of Europe's Centre for the Development of Enterprise (CDE) in cotton and textiles sectors in East Africa are seen to have dubious outcomes for ‘development’ in ACP former colonies.

Type
Research Article
Copyright
Copyright © Cambridge University Press 2011

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

*

Many thanks to Rorden Wilkinson, Sarah Bracking, James Scott and Vijay Simha Pandrapragada for their insights on the issues and their encouragement. Sincere thanks also to the anonymous reviewers for their comments and suggestions. Any errors or flaws in the article remain entirely my own.

References

REFERENCES

ACP–EU Cotonou Partnership Agreement [CPA] [2000] 2006. Partnership Agreement ACP–EC: signed in Cotonou on 23 June 2000, revised in Luxembourg on 25 June 2005. Brussels: EC, available at: http://ec.europa.eu/development/icenter/repository/Cotonou_EN2006_en.pdf, accessed 25.3.2010.Google Scholar
ADE. 2005. Evaluation of European Community Support to Private Sector Development: final report. Vol. II, December 2005. Available at: http://ec.europa.eu/europeaid/how/evaluation/evaluation_reports/reports/2005/951656_vol2_en.pdf, accessed 25.3.2010.Google Scholar
Africa.no. 2005. Kenya: president moves to protect 40,000 EPZ jobs over threat from China. Oslo: Norwegian Council for Africa, available at: http://www.afrika.no/Detailed/9870.html, accessed 25.3.2010.Google Scholar
AGOA.info. 2010. Country Information – Madagascar. Stellenbosch: TRALAC, available at: http://www.agoa.info/?view=country_info&country=mg, accessed 25.3.2010.Google Scholar
ANSA. 2007. Alternatives to Neoliberalism in Southern Africa: towards a people-driven development agenda. Harare: ANSA Secretariat.Google Scholar
Bayart, J. F. 2000. ‘Africa in the world: a history of extraversion’, African Affairs 99, 395: 217–67.CrossRefGoogle Scholar
Bernal, V. 1997. ‘Colonial moral economy and the discipline of development: the Gezira Scheme and “modern” Sudan’, Cultural Anthropology 12, 4: 447–79, available at: http://www.anthro.uci.edu/faculty_bios/bernal/Bernal-CA2.pdf, accessed 25.3.2010.CrossRefGoogle Scholar
Bertelsmann-Scott, T. 2007. ‘The impact of economic partnership agreement negotiations on Southern Africa’, in Bilal, S. & Grynberg, R., eds. Navigating New Waters: a reader on ACP–EU trade relations. London: Commonwealth Secretariat. Vol. II, 179–94.Google Scholar
Bilal, S. & Rampa, F.. 2006. Alternative (to) EPAs: possible scenarios for the future of ACP trade relations. Maastricht: European Centre for Development Policy & Management.Google Scholar
Bilaterals.org. 2005. ‘EPAs – endless poverty in Africa’, 6.1.2005, available at: http://www.bilaterals.org/article.php3?id_article=1143, accessed 25.3.2010.Google Scholar
Borrmann, A., Grossmann, H. & Koopmann, G.. 2006. ‘The WTO compatibility of the Economic Partnership Agreements between the EU and the ACP countries’, Intereconomics 41, 2: 115–20.CrossRefGoogle Scholar
Bracking, S. 2009. Money and Power: great predators in the political economy of development. London: Pluto Press.Google Scholar
Brewster, H. & Njinkeu, D.. 2008. ‘Aid for trade and private sector development’, in Njinkeu, D. & Cameron, H., eds. Aid for Trade and Development. Cambridge University Press, 369–92.Google Scholar
Brown, W. 2002. The European Union and Africa: the restructuring of North–South relations. London: I.B. Tauris.CrossRefGoogle Scholar
Business Action for Africa (BAA). 2008. ‘MDGs at the midpoint: accelerating business-led growth and collective action’, available at: http://www.businessactionforafrica.org/documents/AAMDGsreportWEB.pdf, accessed 25.3.2010.Google Scholar
Butler, J. 1997. Excitable Speech: the politics of the performative. London: Routledge.Google Scholar
Centre for the Development of Enterprise (CDE). 2004. Leather Programme for Eastern and Southern Africa. Available at: http://www.germax.com/content/services/cde-cuir-mep-final-sceen2.pdf, accessed 25.3.2010.Google Scholar
CDE. 2005a. Instruments for the ACP Private Sector – Annual Report, 2005. Available at: http://www.cde.int/documents/180298CDE-Annual_Report_EN-2005.pdf, accessed 25.3.2010.Google Scholar
CDE. 2005b. Partnership: information bulletin of the Centre for the Development of Enterprise 79, July/August 2005. Available at: http://www.cde.int/documents/180688partenariat-79-EN.pdf, accessed 26.10.10.Google Scholar
CDE. 2008a. ‘The annual meeting of the CDE's European Institutional Networkputs the spotlight on innovative thinking in development cooperation’, Partnership 95, available at: http://www.cde.int/documents/20081027C03ZHCYXCY.htm, accessed 25.3.2010.Google Scholar
CDE. 2008b. In Support of the ACP Private Sector. Available at: http://www.cde.int/documents/2008414HCTJMPNK59.pdf, accessed 25.3.2010.Google Scholar
CDE. 2008c. Summary of Activities 2008 – Annual Report. Available at: http://www.cde.int/documents/200972Z1UZP8QDOY.pdf, accessed 25.3.2010.Google Scholar
CDE. 2010. Caribbean Regional Field Office – Proposed Priority Areas. Available at: http://www.carib-export.com/.../CDE%20Programme%20Presentation%20-car%20rfo%20Feb%2017%202009.ppt, accessed 25.3.2010.Google Scholar
Chang, H.-J. 2003. Kicking Away the Ladder: development strategy in historical perspective. London: Anthem Press.Google Scholar
Chang, H.-J. 2007. Bad Samaritans: rich nations, poor policies, and the threat to the developing world. London: Random House.Google Scholar
Chang, H.-J. & Grabel, I. 2004. Reclaiming Development: an alternative economic policy manual. London: Zed Books.Google Scholar
Clarke, A. 2006. ‘An analysis of EU–ACP aid flows through the EDF from Lomé I to the Cotonou Agreement and proposals for the 10th and 11th EDFs’, in Grynberg, R. & Clarke, A., eds. The European Development Fund and Economic Partnership Agreements. London: Commonwealth Secretariat, 129–42.Google Scholar
Clement, C. 2003. ‘Organic intellectuals and the discourse on democracy: academia, foreign policy, and third world intervention’, New Political Economy 25, 3: 351–64.Google Scholar
Commonwealth Secretariat. 2004. The Cotonou Agreement: a user's guide. London: Commonwealth Secretariat.Google Scholar
Counter-Balance. 2008. Citizens' Guide to the European Investment Bank. Available at: http://www.counterbalance-eib.org/component/option,com_datsogallery/Itemid,98/func,detail/id,48/, accessed 25.3.2010.Google Scholar
The Courier. 2008. ‘EPAs put ACP between a rock and a hard place says ACP head’, The Courier 5.9.2008, available at: http://www.acpeucourier.info/Newsview.79.0.html?&tx_ttnews[pointer]=4&tx_ttnews[tt_news]=619&tx_ttnews[backPid]=6&cHash=4b7537ffe0, accessed 25.3.2010.Google Scholar
Cox, R. 1981. ‘Social forces, states, and world orders: beyond international relations theory’, Millennium 10, 2: 126–55.CrossRefGoogle Scholar
Deacon, B. 2001. The Social Dimension of Regionalism: a constructive alternative to neoliberal globalisation? Helsinki: GASSP.Google Scholar
Department for International Development (DfID). 2008. Private Sector Development Strategy – Prosperity for All: making markets work. London: DfID.Google Scholar
Edigheji, O. 2005. ‘A democratic developmental state in Africa? A concept paper’, Johannesburg: Centre for Policy Studies.Google Scholar
Escobar, A. 1988. ‘Power and visibility: development and the invention and management of the Third World’, Cultural Anthropology 3, 4: 428–43.CrossRefGoogle Scholar
EUROPEAID. 2006. ‘Preparation of an Action Plan for the promotion of clustering, by selected sectors, among Mauritian enterprises as well as with other enterprises from the region, with a particular emphasis on SMEs’, EC Multiple Framework Contract Beneficiaries Programme, September 2006, available at: http://www.gov.mu/portal/sites/ncb/dcp/reports/Clustering.pdf, accessed 25.3.2010.Google Scholar
European Commission (EC). 1996. Green Paper on the Relations between the European Union and the ACP Countries on the Eve of the 21st Century. Available at: http://www.euforic.org/greenpap/intro.htm, accessed 25.3.2010.Google Scholar
EC. 1998. A European Strategy for Private Sector Development in ACP Countries: communication from the Commission to the Council and the European Parliament, COM(1998)667 final. Brussels: EC.Google Scholar
EC. 2003. European Community Co-Operation with Third Countries: the Commission's approach to future support for the development of the business sector. Brussels: EC.Google Scholar
EC. 2010. Export Help Desk: preferential duty regime for African, Caribbean, and Pacific states (ACP). Available at: http://exporthelp.europa.eu/display.cfm?page=cd/cd_InterimEconomicPartnershipAgreements.html&docType=main&languageId=EN&status=null, accessed 9.7.2010.Google Scholar
Faber, G. & Orbie, J.. 2008. ‘The new trade and development agenda of the European Union’, Perspectives on European Politics and Society 9, 2: 192207.CrossRefGoogle Scholar
Fairclough, N. 2005. ‘Critical discourse analysis’, Marges Linguistiques 9: 7694, available at: http://www.ling.lancs.ac.uk/profiles/263/, accessed 25.3.2010.Google Scholar
Fontagne, L. et al. 2008. ‘An impact study of the EU–ACP Economic Partnership Agreements (EPAs) in the six ACP regions’, CEPII working paper 2008–04, available at: http://www.iadb.org/intal/intalcdi/PE/2009/02670.pdf, accessed 25.3.2010.Google Scholar
Foucault, M. [1969] 2009. The Archaeology of Knowledge. London: Routledge.Google Scholar
Gerard, N. & Rampa, F.. 2007. ‘Negotiating an EU-Central Africa EPA: a brief overview’, in Bilal, S. & Grynberg, R., eds. Navigating New Waters: a reader on ACP–EU trade relations. London: Commonwealth Secretariat. Vol. II, 224–30.Google Scholar
Goodison, P. 2006. ‘EU assistance to ACP countries since 1975’, in Grynberg, R. & Clarke, A., eds. The European Development Fund and Economic Partnership Agreements. London: Commonwealth Secretariat, 4376.Google Scholar
Hinkle, L., Hoppe, M. & Newfarmer, R.. 2003. ‘Beyond Cotonou: economic partnership agreements in Africa’, in Newfarmer, R., ed. Trade, Doha, & Development: window into the issues. Washington, DC: World Bank, 267–80, available at: http://siteresources.worldbank.org/INTRANETTRADE/Resources/239054-1126812419270/22.BeyondCotonou.pdf, accessed 25.3.2010.Google Scholar
HTSPE. 2003. Assessment of the International Competitiveness and Value Adding Opportunities of the Kenyan Cotton Industry – Project No. Quince/14/2003/KE – Final Report. London: HTSPE.Google Scholar
International Confederation of Free Trade Unions (ICFTU). 2004. Behind the Brand Names: working conditions and labour rights in export processing zones. Brussels: ICFTU, available at: http://www.icftu.org/www/PDF/EPZreportE.pdf, accessed 25.3.2010.Google Scholar
Inter Press Service (IPS). 2005. ‘In a situation like this, who cares about human rights?’, 5.10.2005, available at: http://www.globalpolicy.org/social-and-economic-policy/labor-rights-and-labor-movements/43449.html, accessed 8.10.2009.Google Scholar
IPS. 2009. ‘EPAs will prevent African states from achieving MDGs’, 11.4.2009, available at: http://ipsnews.net/news.asp?idnews=46464, accessed 25.3.2010.Google Scholar
The Jamaica Gleaner. 2010. ‘Jagdeo still wary of EU deal’, 08.07.2010, available at: http://www.jamaica-gleaner.com/gleaner/20100708/news/news5.html, accessed 9.7.2010.Google Scholar
Karingi, S. et al. 2005. Economic and Welfare Impacts of the EU–Africa Economic Partnership Agreements. New York: United Nations Commission for Africa, available at: http://www.gtap.agecon.purdue.edu/resources/download/2152.pdf, accessed 25.3.2010.Google Scholar
Kothari, U. 2001. ‘Power, knowledge and social control in participatory development’, in Cooke, B. & Kothari, U., eds. Participation: the new tyranny? London: Zed Books, 139–52.Google Scholar
Kurokawa, K., Tambo, F. & te Velde, D. W.. 2008. ‘Donor support to private sector development in sub-Saharan Africa: understanding the Japanese OVOP programme’, ODI working paper 290, London: ODI, available at: http://www.odi.org.uk/resources/download/1116.pdf, accessed 25.3.2010.Google Scholar
Langan, M. 2009. ‘ACP–EU normative concessions from Stabex to private sector development: why the European Union's moralised pursuit of a “deep” trade agenda is nothing “new” in ACP–EU relations’, Perspectives on European Politics and Society 10, 3: 416–40.CrossRefGoogle Scholar
de Text'île Mada, Le Site. 2010. Members. Available at: http://www.textilemada.mg/index.php?page=viewarticle&article_id=13&rubrique=entreprisesmembres, accessed 25.3.2010.Google Scholar
Mailafia, O. 1997. Europe and Economic Reform in Africa: structural adjustment and economic diplomacy. London: Routledge.Google Scholar
Manners, I. 2002. ‘Normative power Europe: a contradiction in terms?’, Journal of Common Market Studies 40, 2: 235–58.CrossRefGoogle Scholar
Milner, C. 2006. ‘An assessment of the overall implementation and adjustment costs for the ACP countries of Economic Partnership Agreements with the EU’, in Grynberg, R. & Clarke, A., eds. The European Development Fund and Economic Partnership Agreements. London: Commonwealth Secretariat, 77–128.Google Scholar
Mkandawire, T. 2001. ‘Thinking about developmental states in Africa’, Cambridge Journal of Economics 25: 289313.CrossRefGoogle Scholar
Morrissey, O., Milner, C. & McKay, A.. 2007. ‘A critical assessment of proposed EU–ACP Economic Partnership Agreements’, in Mold, A., ed. EU Development Policy in a Changing World: challenges for the 21st Century. Amsterdam: Amsterdam University Press, 199215.CrossRefGoogle Scholar
Muhammad, A. 2009. ‘Would African countries benefit from the termination of Kenya's Economic Partnership Agreement (EPA) with the EU? An analysis of EU demand for imported roses’, Journal of Agricultural Economics 60, 1: 220–38.CrossRefGoogle Scholar
Nicita, A. 2006. ‘Export-led growth, pro-poor or not? Evidence from Madagascar's textile and apparel industry’, World Bank Policy Research Briefing Paper 3841, February 2006, available at: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=922967, accessed 25.3.2010.Google Scholar
Nunn, S. & Price, A.. 2004. ‘Managing development: EU and African relations through the evolution of the Lomé and Cotonou Agreements’, Historical Materialism 12, 4: 203–30.CrossRefGoogle Scholar
OECD. 2007. Business for Development: fostering the private sector – a development centre perspective. Paris: OECD.Google Scholar
Ogodo, . 2005. ‘European Union censured over EPA negotiations’, The Standard (Nairobi), 22.1.2005, available at: http://www.bilaterals.org/article.phd3?id_article=1220, accessed 25.3.2010.Google Scholar
Perez, R. 2006. ‘Are the Economic Partnership Agreements a first-best optimum for the African, Caribbean, and Pacific countries?’, Journal of World Trade 40, 6: 999–1019.CrossRefGoogle Scholar
Republic of Kenya [RoK]. 2006. Private Sector Development Strategy. Nairobi: RoK.Google Scholar
Reuters. 2005. ‘Agreement with EU could hurt Kenya’, The Standard (Nairobi) 28.9.2005, available at: http://www.bilaterals.org/article.php3?id_article_2811, accessed 25.3.2010.Google Scholar
Schulpen, L. & Gibbon, P.. 2002. ‘Private sector development: policies, practices and problems’, World Development 30, 1: 115.CrossRefGoogle Scholar
Scott, J. 2007. ‘How the poor pay for the US trade deficit and why it matters for the Doha Development Agenda’, in Lee, E. & Wilkinson, R., eds. The WTO after Hong Kong. London: Routledge, 97–118.Google Scholar
Silva, S. & Grynberg, R.. 2006. ‘Overview: European aid, the European Development Fund and adjusting to economic partnership agreements’, in Grynberg, R. & Clarke, A., eds. The European Development Fund and Economic Partnership Agreements. London: Commonwealth Secretariat, 142.Google Scholar
Stevens, C. & Kennan, J.. 2005. EU–ACP Economic Partnership Agreements: the impact of reciprocity. Brighton: Institute for Development Studies, available at: http://www.sarpn.org.za/documents/d0001254/EPA_reciprocity_BP2.pdf, accessed 25.3.2010.Google Scholar
Stiglitz, J. 2004. The Post-Washington Consensus Consensus. New York: Columbia University Initiative for Policy Dialogue, available at: http://www0.gsb.columbia.edu/ipd/pub/Stiglitz_PWCC_English1.pdf, accessed 25.3.2010.Google Scholar
Stiglitz, J. & Charlton, A.. 2006. Aid for Trade: a report for the Commonwealth Secretariat. London: Commonwealth Secretariat.Google Scholar
Storey, A. 2006. ‘Normative power Europe? Economic partnership agreements and Africa’, Journal of Contemporary African Studies 24, 3: 331–4.CrossRefGoogle Scholar
Sunassee Lam, A. 2008. ‘Aid for Trade and the European Development Fund’, in Njinkeu, D. & Cameron, H., eds. Aid for Trade and Development. Cambridge University Press, 273292.Google Scholar
te Velde, D. W. 2006. ‘Aid for private sector development’, in Page, S., ed. Trade and Aid: partners or rivals in development policy? London: Cameron May, 117–40.Google Scholar
Traidcraft. 2004. EPAs – the Hidden Dangers. Available at: http://www.traidcraft.co.uk/temp/radA276C.pdf, accessed 25.3.2010.Google Scholar
Traub-Merz, R. 2006. ‘The African textile and clothing industry: from import substitution industrialisation to export orientation’, in Jauch, H. & Traub-Merz, R., eds. The Future of the Textile and Clothing Industry in Sub-Saharan Africa. Bonn: Freidrich-Ebert Stiftung, available at: http://library.fes.de/pdf-files/iez/03796/02article.pdf, accessed 25.3.2010.Google Scholar
USAID. 2008. Securing the Future: a strategy for economic growth. Washington, DC: USAID.Google Scholar
Van Djik, T. A. 1993. ‘Principles of critical discourse analysis’, Discourse & Society 4, 2: 249–83.CrossRefGoogle Scholar
Wilkinson, R. 2009. ‘Language, power and multilateral trade negotiation’, Review of International Political Economy 16, 4: 597619.CrossRefGoogle Scholar
World Trade Organisation (WTO). 2006. ‘Humanising globalisation’, speech given by Pascal Lamy at Santiago de Chile, 30 January 2006. Geneva: WTO, available at: http://www.wto.org/english/news_e/sppl_e/sppl16_e.htm, accessed 25.3.2010.Google Scholar