Prepare and distribute a summary handout of
What are the similarities and differences between environmentally sustainable development features and EPZ policies with respect to
i. economic and social development
ii industrial relations and human resource/labour development
iii. living, working and community environments.
The African continent is not poor. It is in fact the most richly endowed of all in terms of natural resources such as land, rivers, wildlife, minerals, lakes and fish forests. In terms of human resources it has labour and make use of its people's capacities, commitment, experience and skills. Africa has a large population but not too large (as compared to Asia, for example).
The prime economic development sources in Africa are agriculture, natural resources and human resources. These sectors are interdependent on each other because natural resources and human resources feed into the primary agriculture sector. This is the pattern in the great majority of African countries, although there are some different balances in terms of percentage GDP and percentage population in agriculture. Other basic economic sectors are industry and mining. In some African countries such as Namibia and Zambia the mining sector is slightly bigger relative to the agricultural sector. In Zimbabwe there is more of a balance between the agricultural and industrial sectors.
There should be sectoral interaction between industry and agriculture for the development of the agricultural sector. Industry itself is built on local raw materials. To add value to agricultural produce, raw materials need processing by industry. Conversely, input from industry (equipment such as hoes, buckets, piping, seeds, chemicals, fertiliser and even or eventually ploughs and other machinery) upgrade and develop the agricultural process and production.
If the agricultural sector is developed, this could lead to diversification in other sectors. With more efficient productive agriculture, less labour is needed and more rural resources are created such as for children to go to school, others to become rural extension officers, environmental officers, natural resources managers and others to devote time to culture and craft. The development of such services or tertiary sector, is a very important expression and agency of higher levels of skills and resources development and of general national development. Services such as tourism are very important for employment creation.
The development of the services sector creates further stimulus to the secondary industrial sector. The development of the manufacturing industry is greatly stimulated by the growth of the tertiary sector because it provides all sorts of equipment and materials for use in other sectors (such as food processing, clothing, construction etc.) The transport sector supports all sectors including industry and absorbs a great deal of labour.
Most of the requirements in this development come from within and the main outside inputs (imports) should be limited to essential imports into the industrial, mining, transport sectors, education and health sectors. The kind of high technology equipment that has to be imported for industry, mining, transport and medical service's (and possibly tourism) can be kept to a minimum using appropriate technology as far as possible. Such imports will be reduced as domestic supplies improve. They can probably never be excluded entirely but limited to essentials.
Where Do EPZs fit into this kind of integrated development dynamic?
Do they draw on or feed into agriculture?
Do they draw on or feed into local industries?
Do they draw on human resources?
Do they develop human resources?
Do they Provide input/supplies into other sectors?
Do they provide goods needed by people and other sectors?
Do they create a dynamic backward inter-linkages with industry?
EPZs may not reflect or feed into the actual or potential strengths of the host economies in industry, mining, agriculture, transport, tourism, health and education. EPZs are essentially only physically located upon or grafted onto host economies. They do not develop organically out of the resources and needs of such economies.
"EPZs are the first step towards a much broader liberalisation of trade that will integrate countries into the global economy."
What is meant by the above quote?
Globalisation is not some neutral or spontaneous process. Globalisation is driven by transnational corporations (TNCs) aiming to carry out their international production and investment operations under optimal conditions to maximise their profitability, competitiveness, and power. TNC movement demands the increasingly free movement of investment capital, capital equipment and goods, technology, communication and other services and the removal of health and safety standards, labour and environmental conditions. This globalisation integrates of economic processes sectors while liberalisation makes it possible.
| The other face of globalisation of the world economy is the marginalisation of weak economies, particularly in Africa. |
Thus while a new 'international' economy is being built, globalisation is more about powerful TNCs interacting and moving than real economic relations between nations.
For weaker countries, liberalisation reduces national economic sovereignty and their ability to formulate appropriate and different national economic policies and enter into truly inter-national relations. The other face of globalisation is thus marginalisation of weak economies, particularly in Africa.
Africa receives a minute 1.4% of direct international investment (FDI) - and most of the US$ 3.1.billion in FDI that flowed into Africa in 1994 went to half a dozen (mainly oil producing) countries. Of the total world FDI flows of US$224 billion in 1994, only US$ 1.8 billion came to sub-Saharan Africa. Africa's share in international trade has been steadily declining from about 3% in the early 1970s to a mere 1% of world trade in the early 1990s. It is anticipated that the new post-Uruguay trade regime will cause Africa to lose a further US$ 2.6 billion in trade by the end of the century. Africa is not being integrated into but simply opening itself up to international trade and investment. |
Marginalisation is not the result of 'deficiencies' within African countries and cultures, or the 'fault' of African governments themselves. Marginalisation is the more extreme form of the polarisation in current policies of the weaker companies, individuals, social groups or countries.
Trade in goods through GATT is designed to ensure that all countries abide by the same rules and regulations and compete on level playing fields. However, the global economy of gigantesque and powerful TNCs and poverty-stricken dependent Third World countries - is not a 'level playing field'. In such a grossly imbalanced world, this new international system reflects and reinforces the interests of the rich and powerful countries and companies.
These new globalisation-liberalisation programmes limit the possibilities for governments to create and shape their own economic policies in terms of their particular needs and the balance of interests within their societies. It also poses new challenges to social movements in influencing (and pushing) their governments to adopt appropriate policies. Governments also need to strengthen their bargaining base in this difficult international environment. As members of an integrated regional economy the countries of Southern /Africa could be much more effective players in this new global economy.
What sort of strategy would make marginal countries stronger in dealing with their economic weakness?
In the pack is a game that people can play as "countries " in Southern Africa. It involves. decisions on investment and trade and the consequences. Let the game proceed for some time. Then stop it and find out how people are doing.
Who won the game?
How did the EPZ countries do? Why?
How could the EPZ countries have improved their position?
Use the game to draw conclusions with the group on national vs regional strategies towards integration in the global economy.
Creation of EPZs in Southern Africa could foster narrow approaches and competitive relations between members of SADC. By the late 1980s, it had become apparent in Southern Africa that the countries in the region needed to build an international economic and political community. In August 1989, Heads of State in Southern Africa met in Windhoek, Namibia, and signed a Declaration and Treaty establishing the Southern African Development Community (SADC). The primary role of SADC is to define regional priorities, facilitate integration, assist in mobilising resources and to maximise the regional impact of projects.
On the basis that underdevelopment, exploitation, deprivation and backwardness in Southern Africa will only be overcome by integration in Southern Africa, SADC is viewed as a path to a common prosperity, peace and unity. The SADC treaty thus establishes a framework for countries of the region to co-ordinate, harmonise and rationalise their policies and strategies for sustainable development.
The development of closer cooperation between Southern African countries recognises their inter-dependence and the existing integration of their economies, the need to act on the inequalities between them for balanced development across the region, and probably the only basis for the countries of Southern Africa, including even South Africa to respond to the challenges of the new global economic order.
The promotion of trade stimulates production and opens up new possibilities for higher levels of economic development and diversification, if it is beneficial to the trading partners. Expanding trade between countries of Southern Africa would reinforce their economic links and take advantage of their, close proximity to each others markets. However this should be done in a way that takes account of the economic and social development concerns of the region, and that protects and promotes certain economic regions, economic or social sectors, or even specific industries. SADC has already agreed on a Protocol on Trade Co-operation in Southern Africa that will create an intra-regional free trade area. This will support other important aspects of regional economic cooperation and development such as the integration of the financial markets of Southern Africa and the development of key areas of production, transport and infrastructure.
Similarly in 1983 a sub-regional trade union organisation was formed to coordinate the operation of the National Trade Union Centres of Southern Africa, the Southern Africa Trade Union Coordination Council (SATUCC).
The objectives of SATUCC are:
SATUCC is compromised of union centres from Angola, Botswana, Mozambique, Namibia, South Africa, Malawi, Zambia, Zimbabwe, Tanzania and Mauritius. SATUCC.is also supported by Southern Africa industry specific union organisations (eg Southern African Miners Federation). More than 85% of SATUCC's total membership is concentrated in South Africa, Tanzania, Zambia and Zimbabwe. .
Since its establishment, SATUCC has played a major role in the liberation of Namibia and South Africa through solidarity action with trade unions in those countries. After South Africa's independence, SATUCC has become much more involved with workers' interests in SADC and the regional economic integration.
Put on cards the features you note of:
REGIONAL INTEGRATION |
EPZs |
| e.g. Common tariffs between countries | No tariffs for EPZ investors |
| Common labour standards | Special labour standards in EPZs and so on... |
Ask participants to look at the differences between the EK and regional integration measures.
The creation of EPZs could foster narrow approaches and competitive relations between members of SADC that could harm or even pre-empt, the longer-term more fundamental regional development processes. EPZs could pre-empt and will certainly complicate multilateral intra-regional trade integration. EPZs could create possibilities for breaches of the trade and tariff regimes of both the host country as well as other members of a joint trade area. Many foreign companies will use EPZs in Southern Africa as platforms from which to export not only into international markets but also into the common regional market undermining trade from domestic producers.
EPZ concessions and preoccupations with attracting foreign investment detracts attention from mobilising internal investment resources, and undermines local enterprise by offering preferential conditions and a host of subsidies to (otherwise less profitable or even non-viable) foreign companies that are normally denied to (non-viable) local companies. EPZs may create a downward pressure on investment and other conditions as countries underbid each other to attract foreign companies.
EPZ production may be low technology, low value-added industries in industrial monoculture enclaves that undermine diversification and skills and technology transfer. Hence EPZs do not feed into the strengths or development needs of the host economies. It should not be the aims and interests of foreign investors that decide on the basis of their own profit (and sometimes other) considerations, which (or in which directions) specific enterprises, industries and even entire countries will develop (or not).
Relatively weak as they are, EPZs are part of such broader strategies to liberalise all national economies into the 'global' economy. All such programmes undermine the possibilities for the countries of Southern Africa to unite in order to be able to deal more effectively with what is a hostile global environment.
Encourage plenary discussion on what position Southern African unions should take on EPZs
Provide copies of the SATUCC policy on EPZs (Insert B) and discuss it. Write the key policy issues of the unions on a flip chart.
Put four flip charts next to the union chart and write headings
Take 5 key aspects of EPZs
For each issue ask a small group to write on one of the 4 flip charts each what position the group they have been given would take on it.
Discuss in plenary how the different view s relate to union views and where the common and different interests are. How much conflict/common interest is there likely to be and with whom?
So what should unions do to ensure that their policies are implemented?
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