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13 May 2021 | Story Dr Bright Nkrumah | Photo Supplied
Dr Bright Nkrumah, Free State Centre for Human Rights, University of the Free State (UFS)

The year 2021 marks the 58th anniversary of the establishment of the Organisation of African Union (OAU) on 25 May 1963. The month of May is therefore celebrated annually as Africa Month. This piece, in essence, is a craving to respond to an often-articulated question: is Africa Month a moment of celebration or introspection? The former would have been preferred had the various freedoms offered by the organisation been more realistic and dealt with the concrete challenges bedevilling the continent’s population. 

At the onset, it ought to be acknowledged that the organisation was not forged with the intent of improving the living conditions of its population but to safeguard the recently won independence and sovereignty of its member states. Against this backdrop, the notion of non-interference in the domestic affairs (Uti Possidetis Juris) of states became its guiding principle, thereby fostering a culture of silence on abuses perpetuate by African rulers against their citizens.  Having said that there were notable illustrations of leaders such as Julius Nyerere, Kenneth Kaunda, and Samora Machel, who individually and collectively ‘invoked the notion of humanitarian intervention’ and waged crusades to relieve Ugandans from the jaws of Idi Amin. 

Indeed, one of the significant achievements of the OAU during this era was the adoption of the African Charter on Human and Peoples’ Rights (Charter) in 1981. The instrument may be seen as a trumpeting of freedom, as it considers the rights and wellbeing of Africans sacrosanct and uncompromising. It is important and perhaps enthralling that all African states are parties to the Charter. While the large-scale ratification could enhance its moral force, it could also be used as a red herring to cover up various atrocities in hostile countries.

Where are we?

In 2002, African rulers meeting in Durban, South Africa, adopted the Constitutive Act, transforming the OAU into the African Union (AU). The new Act perhaps seems to be breathing fresh air into Africa’s rights struggle. In stark contrast to its forerunner, the Constitutive Act authorises the AU to intervene in a situation where citizens are threatened by grave danger perpetrated by their governments or external forces. Remarkably, article 3(k) calls for raising the ‘living standards of African people’. Going by these aspirations, one might speculate that Africans are in for a cheery and jolly ride.

Remarkably, while the Act addresses several aspects of the continent’s socioeconomic issues its operationalisation remains the captive of competing for national interests of AU states. Four key setbacks merit consideration here.

Instability: The landscape of Africa is punctuated by rulers’ embezzlement of public funds, ethnic privilege, and siphoning resources to one’s home village to the detriment of others. This bias tends to incite discontent and hostilities, even as one of the popular rhetoric of the infamous Boko Haram is to addressing Nigeria’s North-South resource disparity. By the same reckoning, hundreds of women and children have been displaced or killed from avoidable hostilities in geographical enclaves such as Cameroon, DR Congo, Mozambique, and Sudan.

Injustice: State security agencies and specifically the police force have evolved to be intimidators rather than the protective machinery they ought to be. More disturbingly, access to justice seems to be a pipe dream, as legal fees and prolonged trials make it burdensome for victims to seek remedies. As a common practice, many judicial systems across Anglophone, Francophone, and Lusophone countries are still modelled on ancient colonial systems, with lawyers and judges using convoluted legal jargon which frustrates rather than assists victims of abuse. 

Poverty: 40% of the continent’s population lives in extreme poverty or on <$1 (approx. R14) per day. Indeed, this figure is sobering. A reader might agree that the New Partnership for Africa’s Development (Nepad) may be seen as the primary document for reversing this trend. The document has, however, been criticised as given superficial treatment to the basic entitlement of vulnerable groups, and without feasible strategies on issues of underdevelopment.  It speaks to enhancing greater access to services, but segregates this aspiration from how the impoverished could access these essentials. Without a commitment to enforceable socioeconomic goods, such as health care, education, food, social security, the document may be seen as placing a stamp on the skewed access to resources already pervasive in local communities.

Covid-19: The onset of the pandemic calls for total marshalling of the continent’s fiscal and human resources. Sadly, the virus has claimed the lives of eminent cadres, teachers, and trade unionists who could have played a key role in this regard. South Africa alone has recorded more than 54,620 deaths, leaving behind hundreds of orphans.   Still, the ramifications are likely to be more significant, altering the structures of society and putting a strain on the financial resources of weak states. 

What ought to be done?

One golden thread running through these challenges is the weakness of the AU to forge effective institutions to restrain the excesses of states, monitor the government’s compliance with human rights obligations, and accountability. If the organisation seeks to improve human rights in Africa, it ought to revive debates towards Pan-Africanism and regional integration. At present, artificial borders erected by colonisers have created states which are simply not viable economic and political units. To this end, continental integration is the effective means of accelerating economic growth, uplifting the least developed countries, and domestically-based transformative development.

Opinion article by Dr Bright Nkrumah, Free State Centre for Human Rights, Faculty of Law, University of the Free State.

 


News Archive

Inaugural lecture: Prof. Phillipe Burger
2007-11-26

 

Attending the lecture were, from the left: Prof. Tienie Crous (Dean of the Faculty of Economic and Management Sciences at the UFS), Prof. Phillipe Burger (Departmental Chairperson of the Department of Economics at the UFS), and Prof. Frederick Fourie (Rector and Vice-Chancellor of the UFS).
Photo: Stephen Collet

 
A summary of an inaugural lecture presented by Prof. Phillipe Burger on the topic: “The ups and downs of the South African Economy: Rough seas or smooth sailing?”

South African business cycle shows reduction in volatility

Better monetary policy and improvements in the financial sector that place less liquidity constraints on individuals is one of the main reasons for the reduction in the volatility of the South African economy. The improvement in access to the financial sector also enables individuals to manage their debt better.

These are some of the findings in an analysis on the volatility of the South African business cycle done by Prof. Philippe Burger, Departmental Chairperson of the University of the Free State’s (UFS) Department of Economics.

Prof. Burger delivered his inaugural lecture last night (22 November 2007) on the Main Campus in Bloemfontein on the topic “The ups and downs of the South African Economy: Rough seas or smooth sailing?”

In his lecture, Prof. Burger emphasised a few key aspects of the South African business cycle and indicated how it changed during the periods 1960-1976, 1976-1994 en 1994-2006.

With the Gross Domestic Product (GDP) as an indicator of the business cycle, the analysis identified the variables that showed the highest correlation with the GDP. During the periods 1976-1994 and 1994-2006, these included durable consumption, manufacturing investment, private sector investment, as well as investment in machinery and non-residential buildings. Other variables that also show a high correlation with the GDP are imports, non-durable consumption, investment in the financial services sector, investment by general government, as well as investment in residential buildings.

Prof. Burger’s analysis also shows that changes in durable consumption, investment in the manufacturing sector, investment in the private sector, as well as investment in non-residential buildings preceded changes in the GDP. If changes in a variable such as durable consumption precede changes in the GDP, it is an indication that durable consumption is one of the drivers of the business cycle. The up or down swing of durable consumption may, in other words, just as well contribute to an up or down swing in the business cycle.

A surprising finding of the analysis is the particularly strong role durable consumption has played in the business cycle since 1994. This finding is especially surprising due to the fact that durable consumption only constitutes about 12% of the total household consumption.

A further surprising finding is the particularly small role exports have been playing since 1960 as a driver of the business cycle. In South Africa it is still generally accepted that exports are one of the most important drivers of the business cycle. It is generally accepted that, should the business cycles of South Africa’s most important trade partners show an upward phase; these partners will purchase more from South Africa. This increase in exports will contribute to the South African economy moving upward. Prof. Burger’s analyses shows, however, that exports have generally never fulfil this role.

Over and above the identification of the drivers of the South African business cycle, Prof. Burger’s analysis also investigated the volatility of the business cycle.

When the periods 1976-1994 and 1994-2006 are compared, the analysis shows that the volatility of the business cycle has reduced since 1994 with more than half. The reduction in volatility can be traced to the reduction in the volatility of household consumption (especially durables and services), as well as a reduction in the volatility of investment in machinery, non-residential buildings and transport equipment. The last three coincide with the general reduction in the volatility of investment in the manufacturing sector. Investment in sectors such as electricity and transport (not to be confused with investment in transport equipment by various sectors) which are strongly dominated by the government, did not contribute to the decrease in volatility.

In his analysis, Prof. Burger supplies reasons for the reduction in volatility. One of the explanations is the reduction in the shocks affecting the economy – especially in the South African context. Another explanation is the application of an improved monetary policy by the South African Reserve Bank since the mid 1990’s. A third explanation is the better access to liquidity and credit since the mid 1990’s, which enables the better management of household finance and the absorption of financial shocks.

A further reason which contributed to the reduction in volatility in countries such as the United States of America’s business cycle is better inventory management. While the volatility of inventory in South Africa has also reduced there is, according to Prof. Burger, little proof that better inventory management contributed to the reduction in volatility of the GDP.

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