Stevens, Christopher

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Universidade Técnica de Lisboa

Europe and Africa to 1990 : the evidence of Lomé III

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Estudos de Economia, vol. v1, n. • 3, Abr.-Jun., 1986 EUROPE AND AFRICA TO 1990: THE EVIDENCE OF LOME Ill Christopher Stevens(*) When the first Lome Convention was signed in 1975 it was welcomed as tangible evidence of Europe's special relationship with Africa and of its desire to build a partnership of equals on the foundations of that relationship. When lome Ill was signed in 1984 it had become clear that the special relationship was by no means as dynamic as had been hoped, and was quite insufficient to help Africa cope with its economic problems. Africa's problems The severity of Africa's economic crisis in 1980 is summed up in the 1985 OAU Declaration which expresses concern at the domestic and international factors that «have brought most of our countries near to economic col-lapse» (1). During the first half of the 1980s African per capita incomes fell each year. The approximate causes were, in most cases, the combined effects of prolonged drought and of the most severe fall in world commodity prices for thirty years. But these two proximate causes only gave an added twist to an underlying, fundamental economic crisis deriving from economic stagnation. Afri-can states have neglected their agricultural base but have failed to develop non-agricultural sectors sufficiently to compensate. This, in turn, is a result both of domestic inadequacies and of the harsh international environment which has made it difficult for African states to develop non-traditional exports. In his opening address to the first ministerial session negotiating Lome Ill, the ACP spokesman. Mr. A. Mogwe, complained that no member of the Afri-can, Caribbean and Pacific (ACP) group had become a newly industrialised coun-try in the period since the first Convention was agreed. Although this complaint was largely rhetoric, it illustrates the criticism that the Lome Convention has not altered in any fundamental respect the relationship of economic dependency of Africa on Europe. Such criticism was given added thrust during the Lome Ill (*) Christopher Stevens holds research appointments at the Centre for European Policy Studies, Brussels; the Institute of Development Studies, Sussex and the Overseas Development Institute, London. He specialises in analysing the impact of EEC policies on the Third World, and Africa in particular, and he edits the annual series EEC and the Third World: A Survey. (1) OAU (1985}, «Declaration of 21st Assembly of Heads of State and Government on the Economic Situation in Africa», Addis Abeda, July 1985. 315 negotiations as it became clear that the EEC wanted to reinforce a traditional aid donor-recipient relationship rather than to push further towards the horizon of a partnership of equals. The Lome Ill negotiations Between the Lome I and Lome Ill talks the negotiating lines turned 180 degrees. The Lome negotiations had been characterised by a relatively united and assertive ACP and a disorganised EC willing to make concessions. By the time of the Lome II negotiations, the coherence of the ACP attack had been weakened, while the EC had become more defensive. The pendulum swung further, with the EC (or, rather, the Commission) seeking fundamental changes, and the ACP disorganised in the face of this challenge. When outlining its development policy in the 1982 Pisani Memorandum (2), the Commission saw the negotiations as an oportunity to shift the relationship between the EC and the ACP onto a new plane by reshaping the Lome con-vention instruments. It aimed to make them more effective in promoting what it called «self-reliant and sustainable development». This was to be achieved through a «political dialogue» between the EC as an aid donor and local deci-sion makers. The Commission's hopes foundered on two rocks: ACP suspicion and EC member state reservations. The ACP saw the Commission's plans as a back--door attempt to exert leverage on them to alter economic policies of which the EC disapproved. At the same time, the Commission found its own capacity to enter such a «political dialogue» tightly constrained by the ten EEC member states. The Ten's position was determined by a combination of indifference to the «new approach» and of concern lest it result in increased expenditure, trade competition, or Commission independence. The content of Lome Ill Despite its failure to achieve much of what it wanted, the Commission's stance permeated the whole Convention. Hence, the Third Convention consoli-dates Lome's character as primarily a traditional framework for aid donor-recipient relations. Within these limitations Africa has done reasonably well out of the new Convention. The Lome Ill aid budget is roughly the same size in real terms as its predecessor, although this calculation suffers from methodological flaws. Poten-(2) EEC (1982), «Memorandum on the Community's Development Policy», Com (82) 640, Brus· sels, 5 October 1982. 316 tially more important are changes in the policy and instruments of aid which may increase both its economic and its financial value to the ACP. The most important chan9e _puts the main focus on sectors (particularly the food sector) rather than individual capital projects. The potential of this shift derives from the greater legitimacy it gives to financing a range of different types of activities. Aid can be used not just for new investment, for example, but also to finance production inputs, maintenance, export credits, and insur-ance. There have also been procedural changes that may accelerate aid dis-bursement and, hence, increase its financial value. There have been no major improvements to the trade regime. The sensi-tivity of the EC member states is illustrated by the force with which some of them opposed changes to allow the Commission even to entertain (not neces-sarily to grant) further concessions on some ACP agricultural exports during the Convention. Nonetheless, some small changes have been made which are of value to some ACP states. The provisions for rice and rum have been improved, and the status quo reaffirmed for beef and bananas. The main innovation of Lome Ill is an emphasis on what is known in Eurospeak as «thematic actions». These are long-term campaigns to counter major climatic, environmental, or health problems, often at a regional rather than a national level. The fight against drought and desertification are the highest priorities. For the first time there is a chapter on «Cultural and social cooperation» designed to orientate development cooperation towards improving the human resources and creative capacities of ACP states. Although many of the initial aims have failed to survive the negotiating mill intact, Lome Ill contains some measures to improve the integration of aid into the recipient's cultural environ-ment. Also for the first time, there is a chapter on investment within the body of the Convention. This includes a joint statement of willingness (albeit ambig-uous) to negotiate investment protection agreements that could be generalised to all EC states. The chapter reflects a greater perception by many ACP states of the need to attract foreing private investment; it also reflects a willingness by the larger EC states to make some concessions towards the smaller mem-ber states' desire for Community-wide investment agreements. Conclusion A verdict on Lome Ill must be based on three points of comparison. The first is the relationship with its predecessors. Overall, the new Convention main-tains the preferences accorded by Lome I and II and adds a few vignettes. The principal innovations are a sectoral approach to aid (especially for agriculture), thematic actions, and the central role of human resources in development. The references to them in the new Convention are to be interpreted as an expres-317 sian of an altered philosophy, not as a list of actions. Hence, they do not com-mit either side to very much. They simply enlarge the range of actions which may be possible under Lome Ill. The second point of comparison for Lome Ill is with what is happening elsewhere. The general picture is a decline in the interest of the OECD coun-tries with the problems of the poorest third world countries. Bilateral and mul-tilateral aid programmes are under pressure. Protectionism is a potent threat. By maintaining the status quo in Lome Ill, the EC has accorded the ACP better treatment than is being meted out elsewhere. In itself, this must be a cause for approving the new Convention. But the worry is that the ACP's gains will simply accelerate the deterioration in treatment of other LDCS. The third point of comparison is with the needs of Africa and the senti-ments accompanying Lome I. On this criterion, Lome Ill must be judged a con-siderable disappointment. It reinforces the unwillingness of Europe to move beyond a traditional aid relationship with Africa. But traditional development poli-cies are insufficient to deal with the African crisis. Even in terms of quantity (let alone of quality) the orders of magnitude involved are completely different; the Lome Ill aid budget of$ 6 bn (over five years) compares with a debt service burden for sub-Saharan Africa of some $ 11.6 bn per year over 1985-1987 (3). If a solution is to be found for the crisis it must involve an increase in exports. In this respect, the EEC's complete failure to agree any substantial improvements for the Lome trade regime is particularly unfortunate. The out-look for Euro-African relations to 1990, therefore, is for a continuation of the post-colonial links of economic dependence. A corollary of this is that Africa is unlikely to see a substantial improvement in its economic situation, and is likely to become relatively less important for the European economy. (3) World Bank (1984), «Towards Sustained Development in sub-Saharan Africa», Washing-ton, August 1984. 318 STEVENS, Christopher- Europa e Africa ate 1990: a evidencia de Lome Ill A primeira Convencao de Lome oferecia a promessa de um novo relacionamento entre a Europa e a Africa. Desde a altura em que foi assinada, a situacao econ6mica em Africa deteriorou-se drasticamente. A necessidade de um novo relacionamento e agora ainda maior que antes. Apesar disso, Lome Ill representa um grande passo no conceito de «novo relacionamento» e uma enfase na tradicional relacao de ajuda de dador-receptor. Lome Ill deve ser apreciada segundo tres crite· rios. Dentro dos parametres estreitos da tradicional relacao de ajuda, representa muito para a Africa. Comparativamente com o que esta a acontecer noutras zonas, e ainda mais satisfat6ria. Mas e um desapontamento em relacao ao conceito original e as necessidades da Africa ate 1990. STEVENS, Christopher- Europe and Africa to 1990: the evidence of Lome Ill The first Lome Convention offered the promise of a new relationship between Europe and Africa. In the period since it was signed, the economic situation of Africa has deteriorated drasti· cally. The need for a new relationship is now greater than before. Yet, Lome Ill represents a fur-ther watering down of the «new relationship» concept and an emphasis on the traditional aid donor-recipient relationship. Lome Ill must be judged against three criteria. Within the narrow parameters of a traditional aid relationship, it represents a reasonable deal for Africa. By comparison with what is happening in other arenas, it is even more satisfactory. But it is a disappointment in relation to the original concept and to the needs of Africa to 1990. 319 

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Europe and Africa to 1990 : the evidence of Lomé III

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