State trading and regional economic integration: the East African experience

The paper examines the impact of state trading on the operation of the East African Common Market. The first part of the paper develops a general framework for the analysis of this question. After setting out the alternative concepts of integration corresponding to the principles of integration in market economies and centrally planned economies and the role of state trading therein, the paper contrasts them with the situation in integration attempts among developing countries with different economic systems. This is followed by a discussion of the definition, functions, structure and operation of state trading enterprises. An attempt is then made to explore the impact of state trading systems on intra-regional trade in the light of various obstacles to the expansion of such trade. The second part of the paper traces the evolution and structure of state trading enterprises in the East African countries. The characteristics of state trading enterprises are then related to their impact on the growth of East African trade in recent years. Consideration is also given to other developments such as the increasing foreign exchange difficulties being experienced by the Partner States, especially Uganda and Tanzania, and the growth of the system of foreign trade planning in Tanzania. The implications of these developments for the East African Common Market are spelled out. In conclusion, the paper considers various recommendations to overcome obstacles to trade expansion posed by state trading enterprises, increasing foreign exchange difficulties and foreign trade planning

Population growth, labour absorption and income distribution

The purpose of this paper is to explore the main qualitative relationships between population growth, employment expansion and changes in income distribution. These relationships are extremely complex with an intricate pattern of links and feedbacks not only among these variables, but between them and a host of other economic, sociological, political and institutional variables. The first part of the paper reviews the findings of the quantitative economic-demographic models with respect to the impact of differential rates of population increase on the rate and structure of economic growth. Most of these models ignore the employment and income distribution effects of differential rates of population growth. An attempt is then made to specify the ways in which variations in population growth affect the supply and demand for labour and hence net labour absorption. The usual conclusion that a faster rate of population growth exacerbates the employment problem on the supply side is qualified by considerations of participation rates and quality of labour force under different rates of population increase. On the demand side, the impact of variations in population growth is assessed on capital accumulation, composition of output , pattern of growth and changes in productivity induced by such factors as technical change, nutrition, education and training. The impact on income distribution is evaluated by assessing the effects of differential rates of population growth on the main determinants of income distribution by size. Among the factors considered are: ratio of labour to reproducible capital, distribution of assets, change in the structure of the economy, technical change and the skill composition of labour force. A theme running through the paper is that reduced fertility can create the potential for greater net labour absorption and more favourable income distribution. But this potential can only be realized by the pursuit of an appropriate strategy of development to further these objectives. In its absence, it is not at all clear that reduced fertility will make a decisive difference to income distribution and labour absorption

Some aspects of social and economic progress and policies in East Africa: 1961-71

The purpose of this paper is to sketch in with a broad sweep the leading features of social and economic progress and policies in East Africa in the last decade. The paper begins with an analysis of the socio-economic structure of East African countries during the colonial period, stressing the structure of the economies, the racial stratification of the economy and the society, the main features of development policies, and regional economic cooperation. Major changes in the post-independence period are discusscd against the background of colonial heritage. The discussion focusses on the various efforts made to accelerate Africanisation in both the public and private sectors of the East African economies. This is followed by an analysis of economic growth in the post-independence period, including a discussion of economic change and diversification, both internally and with respect to foreign trade, aid and investment. There is then a discussion of the changing strategies and development policies in the three countries in the first decade of independence. After a description of the evolution of East African economic unity, the concluding section of the paper takes a look at the priorities for the seventies; the need for rapid economic growth accompanied by an equitable distribution of the fruits of growth. The outlines of a strategy designed to achieve these objectives are spelled out

Perspectives of future economic prospects and problems in Africa

The purpose of this paper is to sketch out with a broad sweep the likely economic developments and problems in Africa over the next two to three decades. By way of introduction to this theme, the paper surveys the special features of the African situation which distinguish it from other parts of the Third Worlds the relative economic backwardness, the recent origin and devastating impact of colonialism, rapid decolonisation and continued existence of oolonial and racist regimes in Southern Africa. As a prelude to the contemporary and future economic problems, the colonial roots of the pattern and growth of African economies are analyzed, together with an assessment of economic growth and change in the first decade of independence, including an appraisal of slow growth during this period. A sketch of economic goals for the African continent over the next three decades is presented, setting out macro-economic and sectoral growth rates, as well as socio-economic objectives. The second half of the paper identifies the favourable factors as well as the potential obstacles to accelerated and equitable development in the future, isolating for more detailed treatment questions of economic cooperation among African countries, unemployment and income distribution, and the strategy for international development. The paper concludes by a speculative section on the impact on the societies ard economies of independent African countries of the unfolding of events in Southern Africa