Decoupling political independence from economic independence

By Donasius Pathera, PhD:

The process of achieving economic independence often lags behind political independence, particularly in regions like sub-Saharan Africa.

Post-colonial states in Africa frequently find themselves still entangled in a colonial economic system, which is a significant impediment to their economic development. This transition from a colonial economy to a modern global capitalist system necessitates the establishment of domestic institutions that can facilitate growth and sustainability within the state.

Developed western nations have attempted to assist emerging states in this transition by providing foreign aid for various purposes, such as addressing hunger, building infrastructure and supporting nascent democracies. However, this reliance on foreign aid perpetuates dependency and is, in some ways, is akin to the colonial system, as it does not steer developing states toward the establishment of strong institutions and economic self-sufficiency.

Political independence is symbolised by ceremonies and agreements, but its economic counterpart takes much longer to materialise. In the case of sub-Saharan Africa, the transition from a colonial economy to a stable position in the global economy has been slow and often elusive. The colonial economic system, as explained by scholars like Immanuel Wallerstein and Niall Ferguson, was based on dependency and the exploitation of colonial resources, and it did not promote the interests of the colonised states. In contrast, a successful state’s economy should be driven by its own interests and the welfare of its citizens, as advocated by T. E. Gregory.

Foreign aid is often seen as a solution to the economic challenges facing emerging African economies and governments. Figures like Dambisa Moyo, William Easterly and Paul Collier attribute Africa’s poor growth performance over the past six decades to factors like inadequate government institutions, flawed domestic development policies, and an ongoing cycle of violence. They argue that the misunderstanding of the path from colonial to capitalist economies and liberal government systems perpetuates dependency and does not address the root causes of underdevelopment.

The structural issues contributing to Africa’s development challenges have been debated extensively. However, most proposed solutions are often too general and fail to account for the unique circumstances of individual states. Aid and growth plans offered by developed nations typically do not prioritise the growth and sustainability of domestic institutions and economies. To enable sub-Saharan Africa to transition successfully from colonial economies and achieve stability in the global economy, several key elements need to be addressed. These include the need for a self-sustaining agriculture industry capable of feeding the population, the growth of effective government institutions, and improved access to education. Only then can Africa begin the journey from colonial dependency to a more stable global position.

The colonial empires of the 18th and 19th centuries were economic powerhouses focused on resource extraction and wealth accumulation for the imperial centres. Colonies served as resource suppliers and contributed to the economic strength of the empires.

This was largely due to the necessity of funding territorial and dynastic conflicts in Europe, as wars required substantial financial resources.

The economic development of colonies was aimed at enriching the imperial government, often at the expense of the colony itself. The consequences of this colonial economic system can be described by Immanuel Wallerstein as the “world capitalist system”, which benefits a core group of wealthy, industrialised states at the expense of resource-producing states or colonies.

The lack of investment in Africa, especially in British-controlled territories, after the partition of Africa in the late 19th century is another factor that hindered economic development. Despite controlling a significant portion of the continent, British investment in Africa was minimal. This lack of investment in infrastructure and economic development was a problem that would later affect Africa when it gained political independence.

The perpetuation of the colonial economic system in Africa is, to some extent, continued through foreign aid provided by developed nations. Despite achieving political independence, many African states are still reliant on foreign aid. The aid has often been mismanaged or diverted for purposes other than originally intended. Corruption within African governments exacerbates the problem. Developed nations funnel aid into corrupt governments, which have little incentive to improve the economic situation of the state. Instead, they prioritise retaining power and redistributing resources to maintain support, perpetuating a cycle of corruption.

The ongoing provision of aid also contributes to the problem. Aid flows continue without a clear endpoint, which reinforces the status quo and the cycle of dependency. The aid culture in Africa has persisted for decades, unlike successful post-World War II aid programmes like the Marshall Plan, which had specific goals and a defined timeframe.

The lack of institutional development and investment in Africa can be attributed to several factors, including geographic considerations. The presence of institutions and the success of a state are affected by the suitability of the region for settlement and agriculture. Areas conducive to European settlement were more likely to develop institutional structures, while those earmarked for resource extraction remained underdeveloped.