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Published online by Cambridge University Press: 11 November 2008
Two conflicting views have been presented in this Journal recently concerning the necessity for African countries to restructure their economies and reduce their dependence on exports in order to attain development.1 Rather than attempt to enter into the controversy in detail, I propose to describe the dominant characteristics of the world markets for the major exports of sub-Saharan African countries, which render export expansion by itself unlikely to contribute to higher standards of living for the broad masses of the population.
Page 409 note 1 See Rweyemamu, J. F., ‘International Trade and the Developing Countries,’, in The Journal of Modern African Studies (Cambridge), VII, 2, 06 1969Google Scholar; and Leslie Stein, ‘Developing Countries and International Trade: an alternative view,’, ibid. VIII, 4, Desember 1970. See also Rweyemamu's reply, ‘The Causes of Poverty in the Periphery,’, pp. 453–5, below.
Page 409 note 2 Cf. Gardiner, R. K. A., ‘Development and Trade in Africa,’, in African Affairs (London), 65, 01 1966.Google Scholar
Page 409 note 3 Ibid. and Green, R. H. and Seidman, A., Unity or Poverty? the economics of pan-Africanism (London, 1968), pt. I.Google Scholar
Page 410 note 1 Source: U.N.C.T.A.D. Document T.D./34, App. A (New York, 1968).
Page 412 note 1 Source: F.A.O. Production Tearbook, 1969 (Rome, 1969).Google Scholar
Page 413 note 1 Source: ibid.
Page 414 note 1 For the above data, see Organisation for Economic Co-operation and Development, The Main Products of the Overseas Territories–Oilseeds (Paris, 1957).Google Scholar
Page 415 note 1 Robson, R., The Cotton Industry in Britain (London, 1957),Google Scholar which gives a useful background.
Page 415 note 2 Source: F.A.O. Production Yearbook, 1969. By design, this table starts with a year of relatively high prices to indicate the extent of world market fluctuations for these major subSaharan export crops.
Page 416 note 1 For post-war trends in European cotton consumption, see O.E.C.D., Textile Industry in O.E.C.D. Countries, 1967–1968 (Paris, 1969).Google Scholar
Page 416 note 2 U.N. Yearbook of International Trade Statistics, 1967 (New York, 1969), pp. 284 and 310.Google Scholar
Page 416 note 3 For the following information relating to these companies and their relations with others, see Moody's, Industrial Manual (New York), 1970.Google Scholar
Page 416 note 4 Source: Moody's Industrial Manual, 1970. Net income is usually calculated after costs, depreciation, and taxes. Because each company uses its own accounting methods, the data cannot be considered strictly comparable. They are only indicative of trends. This table does not include Nestlé, which, as a Swiss holding company, reports only limited information in Moody's; its 1969 net profit was 146 million Swiss francs.
Page 417 note 1 Republic of Uganda, Background to the Budget, 1970–1971 (Entebbe, 1970), ch. IX.Google Scholar
Page 417 note 2 Bauer, P. T., West African Trade: a study of competition, oligopoly and monopoly in a changing economy (London, revised edn 1963), especially pp. 68–75.Google Scholar See also Moody's Industrial Manual, 1970, p. 3,037.
Page 417 note 3 U.N. rearbook of International Trade Statistics, 1967.
Page 418 note 1 Robson, op. cit. p. 260.
Page 419 note 1 ‘Brooke Bond – Leibig: no stir in the tea leaves,’, in The Economist (London), 22 11 1969.Google Scholar
Page 419 note 2 In Uganda's case, in 1969–70, non-quota sales were almost 40 per cent of the quota; Background to the Budget, 1970–1971, p. 12.
Page 419 note 3 ‘Foreign Aid Provided through the Operations of the United States Sugar Act and the International Coffee Agreement – Report to the Congress by the Comptroller-General of the United States,’, in Inter-American Economic Affairs (Washington), XXIII, Winter 1969, pp. 82–96.Google Scholar
Page 420 note 1 The Economist, 3 February 1967 and 24 February 1968.
Page 420 note 2 ibid. 18 November and 23 Desember 1967.
Page 421 note 1 While it is true that Ghana might not have been able to build the Volta Dam project if Valco had not built the smelter, it may be questioned whether, given its high costs and relatively low returns to Ghana, this vast capital-intensive project constituted the best possible allocation of scarce resources immediately after independence. See my Ghana's Development Experience, 1951–64 (Nairobi, forthcoming).
Page 422 note 1 For a discussion of the historical development of the industry, see Herfindahl, O. C., Copper Costs and Prices: 1870–1957 (Baltimore, 1958).Google Scholar
Page 422 note 2 Source: U.N. Statistical Yearbook, 1969, p. 172.
Page 422 note 3 For information relating to their holdings and income status, see Moody's Industrial Manual, 1970.
Page 423 note 1 For current data re Anglo-American, which is a holding company, see Moody's Bank and Financial Manual (New York), 1970.Google Scholar For background information, see Nkrumah, Kwame, Neo-Colonialism: the last stage of imperialim (London, 1965), especially ch. 9.Google Scholar
Page 423 note 2 For detailed current information, see Amax, , 1969 Annual Report (New York, 1969)Google Scholar; Roan Selection Trust, Ltd, Annual Report, 1969 (Lusaka, 1969)Google Scholar; Roan Selection Trust, Ltd. Explanatory Statement for Meetings of Shareholders to be Held on 6th August, 1970 (Lusaka, 1969)Google Scholar and its separate Appendices.
Page 424 note 1 Herfindahl, op. cit. especially p. 195.
Page 424 note 2 The agricultural affiliates of Société générale produce perhaps 35–40% of Congo's export crops; together with a Unilever subsidiary, Huileries de Congo Belge, it dominates the entire produce trade of the country.
Page 424 note 3 Herfindahl, op. cit. p. 195.
Page 425 note 1 The Economist, 8 May 1965.
Page 425 note 2 Source and footnote as for Table 5. Net income may be arbitrarily influenced by company decisions as to allocation of funds between costs, as well as among branches and affiliates. Three Anglo-American affiliates, for example, reported net income totalling $53.1 million, considerably more than that of the holding company itself. More important than the actual amounts would appear to be the trends, which suggest that from 1963 to 1969 some copper companies almost doubled or trebled their net profits.
Page 426 note 1 The Economist, 25 October 1969.
Page 426 note 2 ibid. 25 Ocutuber 1969.
Page 426 note 3 ibid. 22 November 1969. See also Faber, M. L. O. and Potter, J. C., Towards Economic Independence: papers on the nationalization of the copper industry in Zambia (Cambridge, 1971).Google Scholar
Page 428 note 1 This possibility is discussed at length in R. H. Green and A. Seidman, Unity or Poverty? – see also A. Seidman, Comparative Development Strategies in East Africa, especially chs. VI and X.