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Economic Development and Income Distribution in Eastern Africa

Published online by Cambridge University Press:  11 November 2008

Extract

Changes in Africa rarely go by halves – some developments have been spectacularly successful, such as education, but the failures have also been notable, particularly the lack of expansion in employment. In the words of a recent survey: ‘The most disturbing feature of the employment situation in Africa in recent years has been that the absolute level of wage employment has changed so little, despite high capital investment and the rapid growth of the public sector.’1 Table I shows an accurate and general picture of the problem as it confronts Kenya, Uganda, Tanzania, and Zambia; this article is concerned to examine some of the dimensions, both economic and political, of its solution.

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Articles
Copyright
Copyright © Cambridge University Press 1971

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References

Page 531 note 1 Robson, P. and Lury, D., The Economies of Africa (London, 1969), p. 60.Google Scholar

Page 531 note 2 Cf. Government of India, Planning Commission, The First Five-Year Plan (New Delhi, 1952), p. 4Google Scholar: ‘The problem then is to determine the proportion of the additional national output which can, so to say, be “ploughed back” into investment…the rate of saving as a proportion of total national income will have to go up from 5% in 1950–1 to 20% by 1967–68.’

Page 531 note 3 The wage bill, W, is the product of the average wage rate, w, and the numbers employed, L. The increment to the wage bill, ΔW, is the sum of the increment to the wage rate, Δw, times the (initial) numbers employed, plus the increment to employment, ΔL, times the (initial) wage rate plus the increment to the wage rate times the increment to employment, which last term we shall overlook as being relatively small. (doubt) W = wL; ΛW = (Λw) L+ (ΛL) w+ ΛL) (Λw). The incremental wage-rate/wage-bill ratio is defined as (doubt) The incremental employment/wage-bill ratio is defined as (doubt) The incremental employment/wage-bill ratio is defined as (doubt)

Page 532 note 1 Source: O.E.C.D., National Accounts of Less-Developed Countries, 19591968 (Paris, 1970), p. 24.Google Scholar

Page 532 note 2 Calculated from Kenya, , Statistical Abstract, 1968 (Nairobi), p. 163Google Scholar; I.L.O. Year-Book of Labour Statistics, 1970 (Geneva), pp. 336 and 554Google Scholar; Uganda, , Statistical Abstract, 1961 (Entebbe), p. 108Google Scholar; and ibid.1968, p. 99. Kenya and Uganda data refer to Africans only.

Page 532 note 3 Source: I.L.O. Year-Book, 1970, p. 690.

Page 533 note 1 E.g. see Scott, Roger, The Development of Trade Unions in Uganda (Nairobi, 1966), ch. 13.Google Scholar

Page 533 note 2 Source: I.L.O. Year-Book, 1964 and 1969. Tanzania achieved independence in December 1961, Uganda in October 1962, Kenya in December 1963, and Zambia in October 1964.

Page 533 note 3 1966–1967 only.

Page 533 note 4 Mboya, Tom, Freedom and After (London, 1963), p. 192.Google Scholar

Page 534 note 1 A problem not confined to East Africa; cf. the following comment: ‘The atmosphere of the [Indian Planning] Commission is at present hostile to the clear confrontation of ideas, particularly when they have political implications. The frequently employed formula, “Although we must concentrate on this, on the other hand we must not neglect that”, ensures that unanimity prevails – or at least appears to do so. This being the case, why bother to rack one's brain with hard thinking about fundamentals?’ Hanson, A. H., The Process of Planning: a study of India's Five-Year Plans, 1950–64 (London, 1966), p. 264.Google Scholar

Page 534 note 2 Republic of Kenya, Development Plan, 1966–70 (Nairobi, 1966), pp. 28 and 77.Google Scholar

Page 534 note 3 Government of Uganda, Work for Progress, Uganda's Second Five-Year Plan, 1966–1971 (Entebbe, 1966), p. 148.Google Scholar

Page 534 note 4 Republic of Zambia, First National Development Plan, 1966–1970 (Lusaka, 1966), p. 12.Google Scholar

Page 535 note 1 United Republic of Tanzania, , Second Five-Year Plan, 1969–1974 (Dar es Salaam 1969), p. 205.Google Scholar

Page 535 note 2 Uganda: Trades Disputes (Arbitration and Settlement) Act, 1964; Kenya: Trades Disputes Act, 1964, amended 1965; Tanzania: Permanent Labour Tribunal Act, 1967.

Page 535 note 3 Subramanian, K., Labour Management Relations in India (New Delhi, 1967), chs. VI and VII.Google Scholar

Page 535 note 4 Uganda, , Second Five-Year Plan, p. 148.Google Scholar

Page 535 note 5 Government of Tanzania, , Wages, Incomes, Rural Development, Investment, and Price Policy (Dar es Salaam, 1967), p. 4.Google Scholar

Page 536 note 1 I.L.O. Report to the Government of Zambia on Incomes, Wages and Prices in Zambia: policy and machinery (Geneva, 1969).Google Scholar The statistical appendix to this document is misprinted, and a corrected version may be obtained from the author.

Page 536 note 2 Zambia, , Towards Complete Independence, Address by His Excellency the President, DrKaunda, K. to the U.N.I.P. National Council, 11 08 1969 (Lusaka, 1969)Google Scholar: ‘I find it imperative in the interests of the nation as a whole to announce a wages freeze until further notice…As a corollary I also want to put an embargo on strikes, whether official or unofficial, as instruments of bargaining for higher wages.’

Page 536 note 3 Sources: I.L.O. Bulletin of Labour Statistics (Geneva), 3rd/4th quarter 1970, pp. 61 and 66Google Scholar; and Supplement to the Bulletin, 12 1970, p. 8.Google Scholar

Page 537 note 1 Davies, I., African Trade Unions (London, 1966), p. 40.Google Scholar

Page 537 note 2 Ibid. p. 99.

Page 537 note 3 See Friedland, William H., Vuta Kamba: the development of trade unions in Tanganyika (Stanford, 1969), ch. 10.Google Scholar

Page 538 note 1 Millen, B., The Political Role of Labor in Developing Countries (New York, 1963), p. 42.Google Scholar

Page 538 note 2 Hodgkin, T. L., African Political Parties (London, 1961), p. 199.Google Scholar

Page 538 note 3 Leys, Colin, ‘Political Perspectives’, in Seers, Dudley and Joy, Leonard (eds.), Development in a Divided World (London, 1971), p. 109.Google Scholar The volume edited by Leys, , Politics and Change in Developing Countries (London, 1969), is also very relevant.Google Scholar

Page 538 note 4 Cf. Weber, Max, The Theory of Social and Economic Organization (New York, 1947), p. 328Google Scholar: ‘There are three pure types of legitimate authority. The validity of their claims to legitimacy may be based on: ‘1. Rational grounds – resting on a belief in the “legality” of patterns of normative rules and the right of those elevated to authority under such rules to issue commands (legal authority). ‘2. Traditional grounds – resting on an established belief in the sanctity of immemorial traditions and the legitimacy of the status of those exercising authority under them (traditional authority); or finally, ‘3. Charismatic grounds – resting on devotion to the specific and exceptional sanctity, heroism or exemplary character of an individual person, and of the normative patterns or order revealed or ordained by him (charismatic authority).’

Page 539 note 1 I.L.O. Report to the Government of the United Republic of Tanzania on Wages, Incomes and Prices Policy (Dar es Salaam, 1967), para. 3.Google Scholar

Page 539 note 2 Ibid. paras. 12 and 14.

Page 539 note 3 Smelser, N., Sociology: an introduction (New York, 1967), p. 443.Google Scholar

Page 539 note 4 As Weber states, op. cit. p. 390: ‘So far as [the charismatic leader] makes use of the formalisation and legalisation of law he may contribute greatly to the formal rationalisation of economic activity.’

Page 539 note 5 I.L.0. Report to the Government of… Tanzania, para. 86.

Page 540 note 1 Ibid. para. 88.

Page 540 note 2 ‘The Arusha Declaration: socialism and self-reliance’, reprinted in Nyerere, Julius, Freedom and Socialism/ Uhuru na Ujamaa (Nairobi, 1968), p. 233.Google Scholar

Page 540 note 3 For a further consideration of this problem, see Arrighi, G. and Saul, J., ‘Socialism and Economic Development in Africa’, in The Journal of Modern African Studies (Cambridge), VI, 2, 08 1968.Google Scholar

Page 540 note 4 Government of Tanzania, , Wages, Incomes, Rural Development, Investment and Price Policy (Dar es Salaam, 1967), paras. 2, 10, 19, and 27.Google Scholar

Page 541 note 1 Boulding, Kenneth, Conflict and Defense: a general theory (New York, 1963), ch. 15.Google Scholar Another relevant study is Coser, Lewis, Continuities in the Study of Social Conflict (New York, 1970 edn.), especially chs. 1 and 9.Google Scholar

Page 541 note 2 Bienen, H., Tanzania: party transformation and economic development (Princeton, 1970 edn.), p. 380.Google Scholar Politics of reconciliation obviously require ‘hard thinking about fundamentals’.

Page 541 note 3 Cf. Cliffe, Lionel (ed.), One-Party Democracy (Nairobi, 1967).Google Scholar

Page 542 note 1 Interviews in Dar es Salaam, September 1969.