TOPIC 8 NEO COLONIALISM AND UNDERDEVELOPMENT IN THE THIRD WORLD COUNTRIES | HISTORY 2
NEO COLONIALISM (CONTEMPORARY COLONIALISM)
Is a situation in which a country is independent politically but still dominated by another country (usually strong and imperia list) economically, culturally, socially and even military with aimed at restoration (restoring) and preservation of the imperialist positions in the LDCs.
This started after colonies achieve their independence in 20 th century up to 21 st century.
Neo-colonialism is a direct control of an independent nation by another country which is more powerful economically, socially and military, hence Neo-colonialism is the method that the former colonial masters planned in order to continue exploiting their former colonies after they got their political independence.
Neo-colonialism is a continuation of colonialism in a country which is politically independent under new conditions like to agree conditions of SAP’S such as devaluation of currencies, reduction of workers, cost sharing in social services etc. with all these conditions aims at controlling the former colonies indirectly.
Is the situation whereby a country is politically independent but economically dependent, hence under Neo-colonialism there were no indigenous people have succeeded to liberate themselves from colonial rule but they are still milled economically by imperialist power hence a country with Neo-colonization is a country of flag independence
Neo-colonialism means one country politically independent but still dominated by other countries usually strong economically.
According to Walter Rodney on his book of “How Europe underdeveloped Africa; he argued that under development is not absence of development rather is the process of comparing between one society with another, one country with another and continent by continent.
Hence under development is a relative term which denotes a situation of economic, social or even political backwardness when it cover on the situation of comparison to that in advanced countries; African is underdeveloped when you compare Africa with America or Europe.
CHARACTERISTICS OF NEO –COLONIALISM
A country with neo-colonialism is characterized with economic dependence because; a country with neo-colonialism cannot decide on its own as fallacies as economic is concern, rather they have to depend from capitalist nation for development in those nations.
A country is also characterized by under development because it is exploited by the imperialists through indirectly by using loans and grants which a country is given from IFM, WB and other international cooperation’s hence after the loans and grants; the rich harvest the super profit from LDCs which are taken to develop their countries in Europe and Northern America.
A country by puppet regime which works daily to supervise the operations of Neo-colonialism in their nations for interest of the capitalist in Europe and U.S.A.
A country with no national culture; this is because a nation under neo-colonialism is forced to follow and implement culture like way of dressing, eating for the benefit of imperialist who impose their culture in that nations.
A country has no political will of its own; this is because everything politically is directed from outside countries and the remaining masers have no say (decision) over their political will.
CHARACTERISTICS OF UNDER DEVELOPMENT IN LDC’s
Underdeveloped characterized by economic dependence; this is because the LDCs are poor economically and always rely on the developed countries for economic assistance and Aids e.g. Assistance and AID from IMF, WB, European Union, Paris –club etc. Hence the LDCs tend to depend on the rich countries economically e.g. They depend on clothes, machines, cars, goods and technology from developed countries.
Underdeveloped week technological and industrial base hence the LDCs import technology from developed countries in their attempt to the industries e.g. the LDCs do import technology like redder, laboratory equipment, agricultural equipment and industrial technologies.
Underdevelopment is lack of strong internal linkages of the economy due to weak link between sectors such as agriculture and industry, because of this the LDCs have remained as a producers of agricultural raw materials and the buyers of manufacturing goods from abroad e.g. The LDC s produce cocoa, groundnuts, rubber, wheat, tea, cotton etc. with all these agricultural products are taken to be manufactured as goods in developed countries and later on these goods are imported and later on these goods are imported to the LDCs where they are sold highly.
The LDCs there is political instability because many of the third world countries are victims of civil wars and interstate wars due to availability of guns and interface of internal matters by the super powers with regard to the level of development in the LDCs, destruct peace and security and led to the influx of refugees to neighboring countries e.g. Refugees of Rwanda, Burundi and DRC in Tanzania, Refugees of Ethiopia and Somalia in Kenya, Tunisia, Egypt, Libya in Mali etc.
Underdevelopment is characterized by price fluctuation of raw materials from the LDCs in the world market due to in-ability of the LDC’s to fix prices for both their export and import, hence all the prices of raw materials and manufactured goods are fixed by the imperialist at the world market e.g. In 2000’s the prices of cotton was US – $5 PER Kg while in 2011 the prices of cotton was 3 US dollar per kg and the price keeps on changing each year with affect the LDC s who cannot fix the prices in the world market.
The LDC s are characterized by low per capital income; this is because people in these countries do earn low earnings and majority of them are unemployed and their selling of agricultural raw materials always harvest low profit hence low per capital income for people living in LDCs.
LDCs have low growth national product (G.N.P.). This is because countries found in the LDC s always are exploited by the developed countries e.g. their agricultural raw materials in the world market face the problem of price fluctuation, minerals are exploited for the benefit of the rich countries all these led to low gross national product.
LDCs have mono-cultural economies in which their economies are based on one cash crop or mineral production due to absence of economic diversification hence with price fluctuation in the world market. These countries suffer much economically.
The 3rd countries have low value of their currencies compare to that 7 currencies of the developed countries e.g. the sh. of Kenya, Uganda and Tanzania have low value compare with dollars of US, Dutch mark of Germany, pounds of Britain etc. Likewise there is devaluation of currencies in the 3rd world countries it the common feature.
There is rate of illiteracy, infant mortality rate and low life expectancy compared to that of Europe or U.S.A, in sufficient calorific intake, high rate of diseases like epidemic diseases i.e. HIV, Ebola and TB.
Oil crisis is also problem in the LDCs.
There problems of hunger, famine, floods and drought.
MECHANISMS USED TO PERPETUATE NEO – COLONIALISM IN LDCs
Neo-colonialism operates in different areas/angles in the former colonies like controlling the economies of LDC s, imposing their culture in the 3rd world countries, planting their puppet leaders to control the government in the LDCs, puppet leaders to control the government in the LDCs, training military officers etc. as what the major mechanism as elaborated below.
The former colonial masters impose/provide harsh conditionality for their aid they provide to the LDC s for develop, these conditions are like;
Privatization of economy. Whereby the poor nation are formed to privatize their economy which used to be shared by all indigenous class hence Neo-colonial states cannot manage to exercise unless to privatize their economy.
Welcoming foreign investors to invest in neo-colonies on condition that they repatriate with their profit in foreign exchange.
Giving loans and grants on conditions that the recipient world abandon mono partism and follow/peruse multiparty, devaluate their currencies, adopt cost sharing etc. but also the LDCs have to pay loans with high interest.
Forcing the LDCs to abandon the price commission and later the prices full and revise price fluctuation, according to the law of supply and demand which is purely a capitalist would market in with the capitalist control the world market and fix prices of raw materials from LDCs – hence the government of LDCs should allow trade liberalization to operate in their countries.
Supporting joint ventures organization like NGO’s working jointly with local people in different areas.
The rich countries send military aid like military hardware such as weapons to keep peace and security and bringing unit in the LDCs; but also the rich countries tend to train soldiers of the LDC s in order to have military skills, knowledge and experience in protecting and defending their countries against their enemies.
Sometimes the rich counties tend to come with the troops pretending that they are after peace keeping and defending countries against libels e.g. in the Franco phone countries where the French always used this trek to take the resources of the former colonies e.g. Sierra –Leone, Liberia, Madagascar, Chad, Mali etc. likewise currently the rich countries tend to establish military bases on the soil of the developing countries to defend their harvested interest there e.g. in Mombasa –Kenya, Somalia, Pakistani, Saud Arabia etc.
The government in neo-colonies are controlled by the rich nations by supporting and financing puppet leaders to take power and control the government in the LDCs hence puppet leaders are forced to implement the interest of the imperialist such as exploiting the resources of their country for the benefit and interest of imperialist e.g. the late Seseseko Mobutu in Zaire (D.R.C.) and late Laurent Kabila in (D.R.C.) Charles Taylor in Liberia, The Late Fodey Senko in Sierra – Leone. Likewise Neo-colonialism operate through organizations led by their former colonial masters e.g. for the common wealth (for ex-British colonies) and Franco Phone (for ex-French Colonies).
Neo-Colonialism operate through different ways such as introducing western culture in which people of the LDC s are forced to follow western culture like dressing style, eating style etc. but also people of LDC s have forced to follow education system of the west by abandoning different and important things in education system practiced in the LDC s by adopting the western education system.
Neo-colonialism operate through introduction of western dancer, films and cinema, phonographs and many others evil with affect people in 3 rd world countries culturally with all those affect e.g. people of LDC s are now abandon their traditional dances (drams) songs, music due to operation of Neo-colonialism.
IMPACT/EFFECTS OF NEO-COLONIALISM
It led to political instability in many countries of LDC s due to civil wars and interstate wars, e.g. Angola, Burundi, DRC and Somalia etc.
It led to perpetuation of economic exploitation of the LDCs by big powers that usually tend to exploit resources for their benefit by using the back door, hence LDC s tend to stagnate economically.
It led to economic dependence and problem due to export and import economy, harsh economic conditions, part by developed countries to the LDC s and control of the world market in which the prices of agricultural raw materials from LDCs keeps on changing due to price fluctuation.
Led to total underdeveloped due to economic, political and cultural evils imposed in the LDC s by the rich nations like; devaluation of currencies, cost sharing in social services, paying high interest rate from the loans offered in the LDC s and exploitation of the resources of the LDC s done by Neo –colonialism dairy in the LDCs.
It Led to low level of science and technology due to importation of ready manufacture goods in the LDC s hence people of the LDC s tend to consume goods which have already made; this stagnate the knowledge, skills and experience of the people in the LDC s to develop their science and technology.
It perpetuate cultural imperialism/impose western culture in LDCs; where by people of the LDCs tend to adopt, follow, respect and obey the cultural of Europeans such as dressing style, marriage, eating style and neglecting their own culture.
It led to acute poverty in the LDC s due to control of the world market and fixing the prices of agricultural raw materials from the LDCs, much exploitation of resources of the LDCs, heavy conditions imposed by colonialist in the LDCs e.g. accepting loans with high interest all these lead to acute poverty among the people in the LDC s.
It leads to continuation of the domination of the world market by imperialist powers. This is because the imperialist powers tend to dominate and control the world market for their own interest e.g. Rich nations tend to fix prices of the agricultural raw materials from LDC for their advantage while the products/manufactured goods from the rich nations are fixed in prizes in such a way that the LDC must be in disadvantage for them to benefit.
It Leads to heavy indebtedness i.e. (leads to too much debts) in the LDC s due to continuous borrowing from imperialist nations usually from rich and developed counties hence the LDC face the debt crisis daily and which have caused these developing countries to run bankrupt and fail to run their daily activities more smoothly.
It Leads to un balanced and unimplemented budget in the LDC s due to over reliance i.e. too much depending from foreign aids, grants and loans; this has caused a lot of projects and dip plans such as constructing welling, and dawn/provision of good social services, construction of infrastructure methods, improvement of agricultural prod not implemented by the government of LDC s.
It leads to death due to cooperation’s of Neo-colonialism in the LDC s like importing expired drugs, civil wars, etc. where the developed countries sell weapons to the fighting nation of same nation.
It has caused LDCs not to have say on their own internal matters because of the continuous controlling of the internal affairs by the foreign powers through neo-colonialism and its organizations e.g. Nigeria was suspended from its common wealth membership after it killed the Ogoni environmental activities and the written Keny Saro Wiwa in 1996, Zimbabwe after Mugabe annexed the Land from European settlers and announcement of the national election.
SOLUTIONS/SUGGESTED METHODS OF CONTAINING/PREVENTING/AVOID/COMBATING NEO–COLONIALISM AND UNDER DEVELOPMENT
The following are the suggested methods and solution to prevent the problems of neo-colonialism and under development in LDCs.
1.Practicing the policy of self reliance by mobilizing our own natural and human resource, technology and industry so as we can avoid depending on abroad.
2.Establishing and strengthening economic integrations among countries in the LDCs with the aim of having opportunities for industrialization, creating the wider market and having the big sell in the big trade and monetary system.
3.Through the UN meetings and regular summits the LDCs must seriously attack and condemn Neo – colonialism with its operation in LDC s.
4.Establishing integrated self sustaining national economies for the aim of this LDC s must be self sustained economically and reduce to much depending on the developed countries e.g. the bilateral agreement as Uganda and Libya stated.
5.Establishing local industries and developing those which have attend established and appropriate local technology in order to avoid total reliance of developed industrial goods and technology.
6.To establish our own multinational cooperation’s so that these multinational cooperation’s would be the solutions for the problems facing the LDC s economically like inter regional and international trade, market problems, provisional of aid, financial problem and grant problem.
7. Establishing strong internal linkages in economies among different economic sectors in the LDCs in order for what may be produced in one sector must be manufactured in another sector for the drop of LDC s e.g. between agriculture and industrial sector.
8. By getting control of our own economy through putting emphasis on the use of our own natural and human resources adopting appropriate technology in order to build up self internal economy in steady of depending from outside.
9.All LDCs should reject a western standard of consumption and living for both individual and all society because; the western standard of living and consumption are basing on exploitation of LDC s and their own poor people therefore any attempt of the LDC s to introduce western consumption and standard of living will led to creation of small classes of a very few people (the rich) to exploited the large class (poor).
10.By farming alliance of the poor nations in dealing with the developed nations. This will be the only solution to overcome the problem of dependence which face the LDC s e.g. the alliance of the poor nations will be in term of international trade, market, organizing labor etc.
11.By forming consolidating the regional and inter regional economic groups like COMESA, SADDEC, EAC, ECOWAS, the Arab league etc. in which these regional groupings should help to widen market, providing social and political development among the poor nations themselves without depending from the rich nations who use neo-colonialism to exploit the LDC s.
12.There should be development plans which will help the LDC s to develop without depending from the rich nations e.g. income policy, control major investment, import –export development project, privatization policy etc.
13.The LDC s should reject loans, grants and Aids from the developed countries which had been the source of underdevelopment in the LDC s.
STEP THAT HAVE BEEN TAKEN TO OVERCOME NEO-COLONIALISM
1. Through UN the LDC s have verbally attacked and condemned Neo-colonialism e.g. through the new-international economic order (N.I.E.O) of 1970’s.
2.Formation of the formal O.A.U. in 1963 the current African Union, All these are the steps towards fighting neo-colonialism and under development because African nations have joined together by using the organization to condemn the operations of neo-colonialism in LDC s.
3. Formation of NAM 1961 in Yugoslavia which aimed to make a neutral cooperation between the capitalist camp and the socialist camp in solving the problem of neo-colonialism and under development but still the problem.
4. The LDC s have formed regional and inter regional groups like Arab league, COMESA ECOWAS, EAC etc. for the aim of strengthening and widening their market, organizing labor within their nations and cooperating in different economic activity.
5. Promotion of Cooperation
THE NUCLEAR ARMS RACE AND THE CUBAN MISSILE CRISIS (1962)
Peace is the state of harmony that exist between/among societies, individuals or even worldwide. Or Peace is the opposite of chaos, disharmony and conflicts.
Is the process of equipping for war/process of preparing for war with initials manufacturing of weapons for use in case of war.
Is the completion among nations in the process of equipping themselves for war.
Is the process of reducing, limiting, controlling or eliminating nations’ army forces and this can be done by international agreements like the strategic arms limitation treaties (SALT).
FACTORS FOR THE ARM RACE
1. Existence of the cold war between U.S.A and USSR with their respective camps which was western block under U.S.A and the eastern bloc under USSR; this caused the arm race because each camp was trying to manufacture more weapons hopping that one day the capitalist and the communist will fight.
2. The need to maintain the balance of power among nations of the world; so that no one nation should military be a threat to others so the super power learnt the situation which was caused by Britain and France when Britain was the master of military in the sea, and the France the master of military on land. Therefore in the 20 th century nations wanted to avoid unequal balance of power which existed in Europe between France and Britain hence they involved arm race.
3. Due to self defense; the super powers of those days argued that the increase of arm race was due to protecting and defending themselves against their enemies and conflicts brought by the existence of cold war and formation of military alliances like NATO and war saw Pact for the eastern block.
4. Arm race was due to aggressive purposes. This true when we consider the threat from the western block led by USA under the umbrella of NATO in the weak nation e.g. USA military has been used to invade other countries like Libya in 1988 and 2011, Iraq several times, Pakistan, Somalia, panama and Afghanistan.
5. Arm race is due to make other countries fear the super powers; because of their military and economically strong tend to threatened the weak nation especially the LDC in order to agree with their interest like imposition of their rule, culture etc. which operate through neo colonialism e.g. countries fear U.S.A due to her strong military and economic which make U.S.A to use it as a symbol of power and supremacy in the world
6. Arm race was caused by the developed countries like U.S.A, Britain, USSR, Germany and France in looking for more influence and control in the LDC. E.g. according to those big powers saw the armament/arm race as the only way of increasing that capacity of influence and control the third world countries.
7. Arm race was also seen as an important strategy towards the third world crisis situation because the arm race could be used as the means to solve the problems in the LDC especially in occurrence of war in the world e.g. the nuclear weapons like atomic bombs could be used as a means of preventing the crisis.
The invasion of nuclear or atomic bombs was said to be a spark off (increase more) of the arm race because after USA tested her nuclear bombs in Mexico in 1945 which was made in 1942, USSR explored hers in 1949 and Britain did the same in 1952.
The impacts of arm race to the world
It reduced the level of resources that could have been utilized in provisional of social and economic welfare of the people in the super powers and in the third world countries.
Many people had lost their lives/Occurrence of death due to use of nuclear chemical weapons and nuclear accidents such as in Nagasaki and Hiroshima atomic bombs dropped by U.S.A during WWII 1945, the Chernobyl disaster in soviet union (USSR) which caused untold biological bad consequences to life, the nuclear accident in Japan early to 2011 after the earth quack destroyed the manufacturing factory of nuclear weapons.
Led to environmental destruction following testing, giving disposal of nuclear arm race or toxic on the environment.
The arm race has turned the LDC as to market for dangerous weapon made super powers which led political instability in the LDC such as the outbreak of civil wars and interstate wars like in Burundi, Rwanda, Libya, Angola, Tunisia, DRC etc. but also the interstate wars like Iran vs. Iraq, north Korea vs. south Korea etc. but also the LDC had been a testing ground of nuclear weapons which led the destruction of environment and conflicts in the LDC.
The arm race has been prevented the outbreak of the wars among the super powers because the super powers know the consequences of it and therefore they tend to remain only with cold war politics.
The arm race has caused the problem of refugees; due to war emanated/fueled by the super powers in the process of arm race the problem of refugees tend to face the LDC which have turned to be the moments of the arms from the super powers e.g. refugees of Angola, Rwanda, Burundi, Liberia, DRC, Somalia, Libya, Tunisia, Egypt, Syria etc.
The arm races have led to the increase of budget/ money/ fund in buying of guns in the LDC, but it has also increased budget in the super powers in the process of arm races hence it is costly and consume a lot of money that the developed nation could have channeled to the LDC for more development instead of using money for arm race.
Attempts made towards disarmament
Through agreements. E.g. through strategic arms limitation treaties (SALT) e.g. SALT ONE and SALT TWO, these were talks aimed at strategic arm limitation which involved in U.S.A and USSR, their talks started from November 1969 to may 1972 with the signing of SALT ONE by president Nixon of USA and president Brezhnev of USSR which was signed in Moscow.
Through using UN general assembly in 1982 during the UN special disarmament session which called for elaboration and gradual implementation of nuclear disarmament program.
Contents of SALT ONE
It agreed on limitation of defensive ballistic missile systems.
Involve the code of conduct for dealing with the crisis situation in the third world countries.
Importance of SALT ONE
Helps the two powers to improve their relations.
The two powers reached agreements on the nuclear weapons especially putting or observing on reduction nuclear weapons for nations intending to manufacture more nuclear weapons.
The big powers played more active role in the LDC on the problem facing them due to arms.
This began in 1974 conducted by President Jimmy Carter of USA and Brezhnev of USSR; however the USA senator refused to ratify because the agreement aimed at putting more efforts on a number of missile launched/established and bombers possessed by the two powers.
The Washington treaty of 1972
This aimed at putting limitation of naval armament by determine the ration for allocation of ships among the major naval powers of U.S.A, Britain, Japan, France, Italy and USSR.
THE TEST BAN TREATY BETWEEN U.S.A AND USSR
This was resulted after the Cuban missilecrisis whereby U.S.A and USSR had a direct confrontation on the missile put in Cuba by Russia.
Impact of collapse of USSR with the socialist block and the arm race
The USSR with eastern bloc which climaxed in early 1990s had a lot of impact on arm race as elaborated below;
It led to end up of cold war which was a chief source of arm race between USSR and U.S.A.
The war saw Pact became incapable of making weapons and continue with race in making weapons. This led to the end of the war saw pact and USSR after its collapse which led to remain Russia also join NATO which was pure a military alliance of the west.
The socialist blocks after the collapse of USSR remained free from the competition of arm race and started to criticize and fight for disarmament.
The U.S.A is now the dominant super power in the world; which has increased her military capacity to highest level hence U.S.A has remained as UNIPOLAR calling herself as the policy of the world e.g. U.S.A has different military bases in almost corner of the world trying to defend and protect her interest which manifested itself in neo – colonialism in the LDCs.
The problem of controlling the arm race
Absence of mutual trust; the major powers have failed to trust each other as regarded to armament inspections and control hence most disarmament negotiation have failed.
Different propaganda between the east and the west on respecting treaties on disarmament and appealing to the international community; this havebeen a cheating program/ bogus agreement or cheating program in such as at camps try to use so as they can increase arms for their interest hence control problem or fail to control arm races.
The collapse of USSR; this has caused a problem on controlling arm race because U.S.A and her allies are now monopolizing the nuclear weapons e.g. USA forced other countries to with draw from manufacturing of dangerous weapons e.g. Iraq, Iran, Syria, north Korea etc. this has been taken as unfair as USA does not respect the disarmament treaties anywhere instead USA and her allies are increasing nuclear weapons each year hence difficult to control the arm race.
The control problem; there has been a control problem on the matters relating with disarmament because the super power especially U.S.A is the leading on arm race e.g. 1946 the UN atomic energy commission declared a nuclear disarmament because U.S.A had monopoly over atomic powers but UN was unable.
Why disarmament/ why fighting for disarmament?
The struggle for disarmament through different methods like treaties, destruction of weapon or consultation, conventions etc. was due to the following;
(i) Fear of spread of dangerous weapons to the third world; where these dangerous weapons were in danger with the global peace and security.
(ii) Fear of possible nuclear accidents that may happen due to mishandling of weapons as what has been happened in other places of the world e.g. in January 1968 B52 bomber crushed in green land and nuclear weapons in it (B52) fell into sea, the weapons released dangerous
radioactive materials in water around green land in 1979, there was nuclear accident in island nearby New – York in 2011 in Japan.
(iii) Fear of ending up with survival in case of the outbreak of the nuclear war, it destroys the whole world.
(iv) Fear to reduce the level of resources that could have been utilized in provision of social and economic welfare of the people in the super powers and in the LDCs.
(v) Fear of environmental degradation following testing, firing or disposal of nuclear arms/toxins.
(vi) Fear of turning the LDCs as a market for the super powers in the term of buying nuclear weapons.
(vii)Fear of the outbreak of interstate war which would result the refugees problem especial in the LDCs.
(viii) Fear of the increase of enmity and conflicts among different nations of the world.
(ix)Fear of losing more money in different parts of the world whether in the super powers or LDCs because a lot of money could be used to manufacture these weapons in the super powers but also the LDCs may use their money to buy their weapons.
(x) Fear of revenge; if countries may involve in arm race therefore a situation of revenge may occur because of confidence among nations possessing nuclear weapons.
TYPES OF DISARMAMENT
- General disarmament.
This involved the efforts of all nations in disarmament program.
- Local disarmament.
This involves the limited number of countries in disarmament program.
- Quantitative disarmament.
This refers to reduction of all types of weapons.
- Qualitative disarmament.
This concentrate on specific category of weapons
MANIFESTATION OF THE ARM RACE
In the formation of military alliance in the world e.g. war saw Pact Vs NATO, SEATO, CENTO, ANZUS, OAS etc. all these enmity/hostility military alliances show the presence of arm races.
Formation of military bases especially in LDC by the big powers e.g. US – military bases in east Africa, Mogadishu, Saudi Arabia etc. and USSR in Cuba for her ballistic missiles.
Through the Cuban missile crisis in 1962 when USA were about to fight with USSR over Cuba, this happened when USA was forcing USSR to withdraw her missilein the communist Cuba so as defend Cuba from American threat this was due to the fact that USA has been threatening to overthrow Cuba since 1959, Cuban revolution led by Fidel Castro who made Cuba a communist state and nationalized all American investments in Cuba hence Cuba created a strong relationship with Russia.
The Taiwan crisis; in which Taiwan was protected and defended by U.S.A through her army e.g. all the elections in Taiwan was conducted under the supervision of US military because china wanted to interfere the election in Taiwan but through military threat of USA which warned china not to interfere china surrendered or gave up.
THE CUBAN MISSILE CRISIS IN OCTOBER 1962
The Cuban missile crisis was a major direct confrontation between the USA and USSR that occurred on October 1962 over the issues of the soviet which had supplied missile in installation in Cuba. Sometimes this is referred as a Caribbean crisis or October crisis and the Cuban missiles crisis is regarded by many countries of the world as a closest approach to nuclear war.
The Cuban crisis began when the U.S.A discovered that Cuba had secretly installed soviet missiles which was able to carry nuclear weapons and these nuclear weapons to hit targets across most of the U.S.A hence the discovery led to spark off/ increase the enmity between U.S.A and USSR whereby U.S.A imposed a naval blockage of Cuba and demanded that the USSR must remove her missiles.
THE GENESIS/ORIGIN OF THE CUBAN MISSILE CRISIS
In 1960 a tension began between Cuba and U.S.A; this led to the soviet President Nikita Khrushev began planning to supply secretly missiles in Cuba which could produce/deliver nuclear weapons, assuming that U.S.A would not take any action.
By 1962 the missile crisis was spread in U.S.A because of reports that USSR was channeling weapons to Cuba and in September 1962 US president John F Kennedy warned the soviets that “the greatest issue would arise” due to press of dangerous weapons in Cuba.
In October 14, 1962 the US planners flying over in Cuba investigated on the ballistic missiles and on October 16, 1962 the US intelligence officers presented President Kennedy with photograph showing nuclear missile bases under construction in Cuba. The photo suggested for the preparation of two which were the medium range ballistic missile which was able to travel about 1100 neutral miles. Intermediate range ballistic missiles which was able to reach targets at distance of about 2200Nm (4100 Km) this missiles placed most major US – cities such as Los Angles, Chicago and new York city within a range of nuclear attack.
Kennedy saw the evidence of nuclear capable bombers; hence Kennedy faced a situation with potentially grave consequences. However he had no clear choice on the action to take against Russia though he knew that an attack on soviet is like to attack the global nuclear war that would result in loss of millions of life of the people.
U.S.A promised to defend the city of Berlin in Germany which was under the pressure following the threats from the communist. East Germany in which Khrushev had threatened to take over the west Berlin and told Kennedy that he was willing to bring the matter to the point of war e.g. president khrushev set a deadline of 13 days for the resolutions of the matter.
Before the Cuban missile crisis began Kennedy and his advisors believed that US nuclear superiority would prevent any aggressive soviet moves; but when the photographs of missiles arrived Kennedy and his experts agreed that the weapons might have placed in Cuba to keep USA from going to war over West Berlin. However Kennedy continued in believing in his nuclear superiority for him “doing nothing about the missiles would only increase the danger in another war threatening crisis later in the year this time over Berlin”.
The Cuban missile crisis lasted only 30 days but it had very important psychological and historical significances.
REASONS FOR THE USSR LAUNCHING OF NUCLEAR MISSILE IN CUBA
- To stop USA attempt to over throw communist government of Cuba under Fidel Castro. USA attempted to overthrow Fidel catro in two movements.
a) The bag if pigs invasion
-It was an unsuccessfully action by a CIA trained force of Cuban exilar to invade southern Cuba; it was an attempt to overthrow Fidel Castro in April 1962. But the movement proved failure after being defeated by Cuban trained soldiers.
b) Operation Mangoose (The Cuban Project)
-This project was also known as special group Augmented
– It was a program of central intelligent Agency (CIA) Convert operations develop during the early years of president of U.S.A John F. Kennedy. On November 30, 1961 the aggressive convert operation was launched against the communist government of Fidel Castrol.
– There fore even that movement failed again USSR launched the Nuclear Missile in Cuba so as to threaded US interference on Cuba internal affairs.
- It was also a reaction toward western European and US a moment process.
USSR was threatened by the military advancement of Western Europe and the USA. Far instance in 1958 United Kingdom deployed. Thor IRBM (International Range Ballistic Missiles)
Also Jupiter IRBM in Italy an Turkey in 1961.
Also USA built 100 missiles having capacity to strila Moscow with Nuclear war heads.
- Military strategic reason to USSR. Cuba is very near to USA; therefore, nuclear missile in Cuba was a serious threat to the USA.
HOW THE CONFRONTATION ENDED
The confrontation ended on October 28, 1962 when President John F. Kennedy of USA and secret agreement with Khrushcher (Nikita) of USSR.
Publicity they agreed that societ Union would dismantle their offensive weapons in Cuba and return them to societ Union, subject to UN verification in exchange for a USA public declaration and agreement to never invade Cuba.
-Secretly the US agreed that it would dismantle all us built the and Jupiter IRBMS, developed in Europe and Turkey.
THE CREATION OF THE STATE OF ISRAEL (1948) AND THE PALESTINIAN
UNO’S motives to divide Palestine (1947) Impact of the declaration of the independence of new state of Israel. Causes and outcomes of the Arab-Jenish wars. Camp David and the Egyptian-Israel Peace (1978 -1979) between Israel and PLO.
HISTORICAL BACKGROUND OF PALESTINIAN
The origin of the problem went back almost 2,000 years when most of the Jewish were driven out of Palestine which was their honeland by Romans.
In fact, small communities of Jews stayed in Palestine and over the following 1700 years there was a gradual trickleof Jews returning from exile. The movement of Jecus to return to their land of Palestine is known as Zionism. There fare Zionism represents itself as a political movement concerned principally with the establishment of Jewish state in Palestine.
British Foreign Minister Arthur Balfour in 1917 promised to create a none for the Jew in “Balfour Declaration” Palestine became a British mandate to replace ottoman Empire which was suppressed during the first world war. Therefore large numbers of Jecus began to arrive in Palestine and Arabs protests greatly the exhodus of Jenish settlement.
UNO’S MOTIVES TO DEVIDE PALESTINE (1947)
UNO implemented the partition plan of Palestine in 1947 in order to createthe state of Israel The key objective of UNO to divide Palestine to reconcile peace among the Palestine Arabs an the Jewish Further more UN also was sympathized by the mass genocide of Jews by Adolf Hitler in Germany therefore creation of the Jewish state was an attempt to resque the Jews from mistreatment.
IMPACTS OF DECLARATION OF NEW STATEOF ISRAEL (1948)
It led to the growth of conflict between Palestinians Arabs and the Jewish due to the land question.
Emergence of suicide bombing attacks to the Jewish by the Palestinian Arabs.
3. Interference of USA and the western country to the Middle East politics and diplomacy. Mostly they intend to mediate/are conciliate are bring peace but internally to defend the Jews.
Formation of ant-Jews organization and military wings. These were formed by the Palestinians to foster liberation movement e.g.: P.L.O. 5. Officially it ended the British man dale over Palestine.
ARAB –JEWISH WARS (1956 -1973)
These wars were the manifestation of inherent conflict between the Arabs nations and the Jewish due to the question of land on Palestine. On the other land the Jewish were on the defense motive to restore their land which they grabbed from the Palestinians.
CAUSES OF ARABS – JEWISH WARS.
Proclamation of Israel state (1947) (1948) implemented. The united nation resolved the decision to divide Palestine and declared the independent stateof Israel. There fare the Arab would denied the existence of Israel state on Arab land hence the act break of the wars.
Jewish expansion on Arab land. The influx of Jewish settlers began during the rule of British on Palestine therefore before British withdraw all from Palestine, Jewish invaded Tiberias (April 19, 1948), Haifa (April Jaffa (April 28), The Arab quarters in Jerusalem (April 30), Beisan (May 3) Safad (May 10) and Acre (May 14)
External force, Arab –Jewish war was influenced by external forced. These forces involved the big nation fore example USSR and (Czechoslovakia provided weapons to Arab countries while USA Britain and France provided weapons to Jewish.
Religious factor, most of the Arabs are Muslims while the Jewish. Are Christians. The Arabs believe in Jihad, the holy war to defend Muslims and Island and the Jewish believe in crusade war. There fore conflict was inevitable.
Racism, Jews believe that they are superior race chosen by God and have the rights to dominate all interior race hence conflict. And on the other hand the Arabs land is an insult to their race hence they declared to defend the Palestinian Arabs.
IMPACTS OF ARAB-JEWISH WARS.
Death. Many people in the Middle East died due to several attacks from both sides, many Jews and Arabs died.
The grab of Arab wealth by the Jews. Jews took an advantage of the war to grab Arab wealth during the war, these included livestock’s and minerals.
Displacement of Arab settlement. Most of the Palestinian Arabs lost their land in the hand of Jews Eg: West bank Gaza
Increase of number of refugees, there was increasing number of refugees because most of the Palestinian. Arabs left their lands to the neighboring countries. (About 711,000 refugees). Eg: In Jordan
Disintegration of United Arab front opposition to Israel. After the war many Arab nations started to disintegrate to oppose Israel. For example Egypt signed a peace treaty with Israel (Camp David).
Destruction of Arab economy, buildings and infrastructures were totally destroyed.
CAMP DAVID AND EGYPTIAN ISRAEL PEACE TREAT (1978 -79)
Through the 1970’s Arab –Israel negotiations continued to dominate the agenda of Middle East International Politics. The United States, seeing the effects that Arabs Israel conflict could have on world economy pressed for solution to the conflict.
The camp David refers to the reconcile on the issue of middle east crisis Factor which led to the peace agreement were the frequent wars between the Jews and the Arabs.
During the camp David many Arabs nations refused to attend the agreements at camp David, but support of the agreements The support of Egypt led to the 1978 peace treaty between Israel and Arabs.
AGREEMENTS OF EGYPTIAN –JEWS PEACE TREATY.
Israel agreed to return Sinai to Egypt, during the war Jewish conquer the land in Egypt as the result Egypt wanted back her land and was affected in 1982 when the land was returned to Egypt.
Also they had to negotiate Palestinian autonomy measures in the Israel occupied west Bank and Gaza strip.
They had to reconcile Egyptian Israel diplomatic relations. They agreed to establish diplomatic relationship among them
IMPACT OF THE CAMP DAVID AGREEMENTS
If led to the division of Arab statee.g. Jordan, Saudi Arabia and Egypt become close to Western countries and USA
Camp David did not become the basis for comprehensive settlement of Arab Israel conflict.
It led to the reduction of conflict among Arabic and Jewish. That means the consequence was to radically alter the strategic balance in Arab –Israel conflict.
Increase of confidence to Israel. Started to gain confidence due to the decrease of Arab opposition.
Camp David cemented the US-Egyptian relationship and isolated Soviet Union in the Middle East.
The LDC s have formed regional and inter regional groups like Arab league, COMESA ECOWAS, EAC etc. for the aim of strengthening and widening their market, organizing labor within their nations and cooperating in different economic activity.
Promotion of Cooperation ventures in cultural and sport fields such as African cap of Nation (LAF) all African games and the confederation of Africa football.
Creation of different financial institutions to assist the LDC s in financial problems like creation of the bank of Africa and other endogenous banks in order to reduce reliance on foreign financial institution.
They have established integrated self sustaining national economy like what Uganda and Libya have done.
They adopted African maximum, Leninism and socialism in steady of capitalism as what some African leaders argued that the aim of African Socialism was to create socialism of Africa which could reflect African way of life during communalism and use the resource available in Africa for the development of African countries.
Some countries in the LDC s have developed their own military technology in order to reduce dependence from the developed world military e.g. North Korea, Pakistan, India and Iran are suspected to have nuclear weapon plants.
INTERNAL AND EXTERNAL CAUSES OF UNDERDEVELOPMENT
Effects of colonial legacy; Where by colonialist left to LDC s a lot of negative effects which led to underdevelopment of the third world like poor industrial technological base, poor infrastructure networks, low agricultural production, poor administration, poor social service etc.
Poverty. Many LDCs are poor economically which led people in these nations to live under poor acute poverty therefore these LDCs cannot afford to develop themselves either in economics, technological and social science due to its poverty.
Political instability. Many LDC s are victims of civil wars which destruct peace, harmony security and resulted to refugees in different LDCs hence people in these countries can not settle together and have enough time to involve in development.
Corruption and embezzlement of public fund. Corruption is more common in most countries of the third world such as grant corruption and petty corruption which tend to cause underdevelopment of the poor nations because instead of using the resources and money for development project leaders tend to use the resources and money for their benefit. Likewise embezzlement of public funds is also common in the most country of the LCDs which cause misallocation and mismanagement of the resources available in the poor nations all leads to the underdevelopment of the LDCs.
Problem of hunger and famine; Where by many LDC s faced with this problem due to drought which faces these countries hence many people of these counties are dying due to famine and hunger hence depopulation due to the death of the skilled person who could develop the nations.
High illiteracy rate. This is a problem to many countries in LDC s which cause these countries to lack experts like scientist, engineers, bankers, annuitant and technicians etc. who could use their knowledge, skills and experience to develop these LDC s technologically, economically socially and politically.
Price fluctuation in the world market which faces the LDC s is another problem for underdevelopment therefore these countries lose a lot of money while selling their agricultural raw materials and cause them to fail to purchase other necessities like technology and other manufactured goods which could help these countries to development.
High mortality rate (Death). Is a common problem to many LDC s due to availability of epidemic diseases such as cholera, typhoid, Ebola etc. These returned/stagnate the economic development of these countries due to the fact that young man who are energetic, skilled, knowledgeable and experienced are dying and leave to vacuum of having experts to develop these LDC s.
Oil crisis; whereby majority of the LDC s especially in Africa spend a lot of money to purchase oil in order to facilitate public sectors like transport and communication therefore they cause destruction of budget because the money which could be used in other sectors of the economy are to be used for buying oil.
Low life expectancy, drought and floods.
Mercantilism and its effects on Africa.
Colonialism and its effects e.g. legitimate trade.
NATURE AND CHARACTERISTICS OF NEO COLONIALISM POWER (IMPERIALIST)
The nature and characteristics of the imperialist can be seen through implementation of neo – colonialism in the LDC s and this is viewed in economic, political, social and military as follow below;
ECONOMIC NATURE OR NEO-COLONIZING POWERS
1.This is due to the fact that the imperialist always exploit the resources of LDC s for their benefit like minerals, human labor etc.
2.Destruction of science and technology of LDC s through technological transfer. The process of transferring technology from rich nations to the LDC s results to destruction of science and technology of the LDC s because always the technology transferred is either outdated or expired and which cannot develop the LDCs in term of science and technology.
3.Loans, grants and aids provided to the LDCs aimed at providing high interest to the developed nations due to the fact that the LDCs because of their poverty tend to look for loans, grants and aid which enable the developed nations to harvest the super profit for a given period of time.
4.Control the world market for their interest. The rich nations always control the world market by fixing the prices of both agricultural raw materials from the LDC s and manufactured goods from the rich nation. This goes hand in hand with price fluctuation especial for agricultural produce from the LDC s hence the Neo –colonizing power tend to benefit while the Neo –colonies tend not to benefit.
5.Control the world economy by forcing the LDCs to privatize their economy for the foreign investors which aimed to exploit the resources of the LDC s and benefiting the imperialist nation.
6.They provide harsh conditionality in nature like, devaluation of currencies, cost sharing in social services, redundancy etc. in order the LDC s to be assisted in getting loans, grants and aid which also have to be paid for the imperialist for the high interest rate in a given period of time.
7.The influx of Europeans through different NGO’s and multinational cooperation’s like IMF, WB, world trading centre (coca cola) etc. These also aimed to benefit the imperialist after exploiting the resources of the LDC s and under developing the LDCs.
POLITICAL NATURE OF NEO-COLONIZING POWERS
1.Democratic in nature whereby the Neo-colonizing powers tend to force the LDC s to adopt liberal democracy like multiparty for their own interest.
2.Impose/planting the puppet leaders in LDCs to implement the interest of imperialist like exploiting the resource of the LDCs for the imperialist benefit allowing foreign investors to allow linearization in the LDCs etc. all these are implemented by puppet leaders who are planted by Neo-colonizing powers.
3.Controlling elections of the LDCs. The Neo – colonialist powers tend to control election in LDCs simply because these neo-colonizing powers are after putting puppet leaders in power that can collaborate with them to achieve their objective in the LDCs.
4.Expansionism policy in nature. These neo-colonizing powers tend to expand their rule in order to control the third world countries in all aspect of life for their benefit.
5.Interference of internal matters of the LDCs for their benefit. The imperialist always tend to interfere the internal matters of the LDCs like supervision of election, controlling the economy of the LDCs, culture implementation etc. for their gains.
SOCIAL AND CULTURAL NATURE OF NEO –COLONIZING POWERS
Humanities, oppressive, segregate in nature; this is because always the imperialist tend to achieve the ambition of superiority complex over the LDC s in order to make the LDC s to feel as inferior over the imperialist hence the neo –colonizing powers always use the superiority complex over the LDC s to humiliate, oppress and segregate LDCs in international affairs and within the internal matters e.g. in the UN meetings international trade etc.
Imposing western culture in the LDCs. This is due to the fact that the imperialist always force people of the LDCs to abandon their culture and adopt the western culture in the ways of life such as eating, marriage and wearing/ dressing.
Introducing western cultural ways of life which also have lead people of the LDCs to abandon their cultural practices e.g. introduction of video, cinema, phonograph, songs etc. have caused people in the LDCs to abandon their traditional cultural practices like dram, carvings, traditional songs.
MILITARY NATURE OF NEO –COLONIZING POWER
Introduction of military technology, skills and knowledge in the LDCs. E.g. the imperialist have pretended to train army officers in the LDCs and some time have come to pretend tin keeping peace in the LDCs.
Building their military bases in the soils of the LDC s in order to protect their vested interest I the LDCs.
THE BRANDT REPORT (1980) LDCs POVERTY QUESTION AND ITS OUTCOME
THE BRANDT REPORT
Was a recommendation of the commission to address the LDCs this report was written by independent commission in 1980 chaired by Willy Brandt the former chancellor of Western Germany, the report was international report with aimed to analyze the solution for the problems facing LCDs 1980 – 1987. The report was up dated in 2001 by James Ovilligan who was a director of the Brandt commission report in 2001.
It comprised 36 members from different countries as follows.
Will Brandt (chairman from W. Germany)
Abdala Hatit A. Hammad (from Colombia)
Rodmingo Botara Montry (from Chile)
Edwardo Frei Mauntalia (Chile)
Catherine Gruhman (from USA)
Edward health (from UK)
Amir Jamal (from Tanzania)
Khadija Ahmed (from Malaysia)
THE RECOMMENDATIONS OF THE REPORT
The world economic trend need to be revived whereby the solutions and strategies need to be urgently (important) implemented in order to reduce the growing gap between North (rich) and south (poor).
Cooperation’s between countries should be of mutual interest and there should be a tool to create a change and facilitate worldwide growth.
Emphasis on mutual interest between developed and developing nation to deal with very important issues with threatening human kind must be carried out by the international community.
Reject the view on the role of developed countries to supply to the LDCs for their benefit instead the rich countries must participate themselves to being economic growth of the LDCs.
Emphasis should be on fair ground between the poor and the rich. This should be accompanied by granting the South political and economic independence and discourage protectionism with the rich (Northern) use to restrict the South to access the world market this will enable the South (poor) to developed and have the final say in the world market.
Establish society based on international justice which would promote world peace, security and disarmament especially in developing countries so as the world should be a place to live without fear of weapons.
To ensure good environment for political and economic growth in both north and south.
Undertaking actions programs which would include short and long term program for dealing with poverty in Africa, Asia and Latin America.
To end mass hunger, famine and maturation by improving agricultural sector through undertaking agrarizin reforms in order to ensure food security and food should be increased.
To control population growth by controlling birthrate especially in LDCs but also refugee’s problem in the LDCs should be also controlled.
Insist on industrialization in order to boost economic development and the development of science and technology especially I the LDCs.
Therefore, following those recommendations the Brandt report was received and accepted as a solutions to deal with the LDCs problems, however the gap s till growing and strategies are less adopted due to different reasons in the LDC s like low political will, scarcity of experts, lack of accountability, good governance it’s also the brain drain where LDCs experts are running to look for good pastures in rich nations and fail to development their own nation and it was during the existence of cold war politics.
THE FUNDAMENTAL ISSUES DISCUSSED IN THE BRANDT REPORT COMMISSION –1980
- Poverty problem (Issue).
This being a crucial issue in the world was still discussed whereby the World Bank estimated that 800 millions of people in the LDCs live under acute poverty, and 40% of the South population are not able to secure basic needs while the economies of the poor nation religion agriculture which also face unfavorable environment and scarcity of market.
- Health issues.
This also were discussed in Brandt health commission and it was observed that majority of people LDCs are faced with the problem of low life expectancy, poor medical facilities and majority of the people lack safe and clean water.
- Housing/Settlement issues.
Was also discussed in the Brandt and observed that; there was a great movement of people from rural to urban areas, wide spread of unemployment and â…” of all families in the LDCs are not able to build new houses even cheapest and high birth rate is also common in the LDCs which accelerate to many families to have many people without good housing/settlement.
- Education issues.
Majority of the people in the LDCs are illiterate which are approximated to be 50% of the population of the LDCs. Although some progresses have been taken by the government of the third world countries to build more schools but the number of attending to schools especial for girls is still low.
- Women Issues.
Women in LDCs are marginalized in development due to existence of patria system in many countries of the LDCs. This has caused massive gender inequalities in developing countries like in politics, production and in economics e.g. women are not allowed to own property, land in some societies of the LDCs also the provision of health care familiar is biased and the encouragement of education in some societies is based on boys/male while female are discouraged to accesses education rather than women are encouraged in fulfilling domestic activities e.g. looking fetching H 2 0, and collecting fire wood.
THE SOUTH –SOUTH DIALOGUE
This was a dialogue between the poor nation themselves to discuss the problems related to their poverty and how to work jointly by cooperating together in various fields e.g. in economic; trade, industrial fields, agricultural sector etc.
This South – South dialogue was formed in 1978 under the UN Development program (UNDP) the aim was to promote South – South trade, economic and collaboration with UN agencies like UNDP, W.T.O, WB, IMF etc. hence officially the South – South dialogue started influencing economic development in the South – South nations after the formation of South –South commission under the chairmanship of the Late J.K. Nyerere held in Zimbabwe in 1986, the South –South dialogue aimed at organizing by doming bilateral agreements, regional sub regional, and inter regional groups.
AREAS OF CO-OPERATIONS
Economic, trade, finance and investment.
Education, provision of scholarship and research findings.
Science and technological cooperation.
Public sectors and health management.
OBJECTIVES OF THE SOUTH –SOUTH DIALOGUE
Aimed at forming cooperation between countries and regional grouping so as to find the solution of the global plans which could help the LDC s to development like to find the solution of the financial crisis, economic recession (depression), climatic change, energy security etc.
Aimed to bring a new world economic order in order to balance trade and exchange between member states and between North and South (poor) and (rich) has over the South.
Aimed to form strong partnership among the LDCs so as to against the imperialist domination in terms of trade partnership.
Mobilization of the 3 rd world energy and other resources so as to solve the problem of underdevelopment and boost the economic growth of the South countries.
Aimed to remove the concept of co-operation as purely as assisting dependent countries which aimed at addressing this concept of cooperation between the North and South with equal benefit bases which the South countries want to benefit in their cooperation with the rich.
Aimed to ensure effective use of available technical experts in order to boost economic growth especially in industrial and agricultural sectors.
CHALLENGES OF THE SOUTH –SOUTH DIALOGUE
Lack of capital. This forced the LDCs to look for loans, grants and aids from developed countries as the only alternative way to development thus why they always looking for grants, loans and aids from WB and IMF.
Undermine the poor member state by fellow rich states. This is because rich members tend to undermine the poor member state found in LDCs this has been acting as the obstacle for the South – South dialogue to reach their objectives.
Protectionism This was a policy carried out by the North countries (rich) to restrict the South to access the world market hence the South Counties always face the problem of price fluctuation in the world market.
Interference of economic and financial plans policies by unity national cooperation’s or transnational institutions. These cooperation act as the obstacle for the South countries to achieve their intended objectives e.g. the IMF, WB, W.T.D, European union, Paris club etc. always tend to interfere the international matters of the South.
Lack of heavy industrial base. These policy always makes the South countries to depend from the North as far as science and technologies is concerned hence South country have been made as dumping areas for the North to dump their outdated science and technology.
Political instability. This is a common problem in many LDCs due to civil wars which tend to affect the LDC s peace, security, harmony and hinders economic, social and political development.
Existence of multiple – economic integrations which are not committed to fulfill their activities and their intended activities e.g. members of SADEC are also members of EAC or ECOWAS etc.
Existence of Neo – colonialism in LDCs; whereby the North tend to exploit the resource of the South by back doors hence the South fail to development.
Famine and hunger.
Competition of production of the same raw materials among the member states e.g. member state are producing the same Cocoa, tea, sisal, cotton etc.
Frequent economic crisis.
THE NORTH –SOUTH DIALOGUE
This was the dialogue between the rich (developed) and poor developing nations) with came out of the recognition of the fact that poverty being a global issue must be solved together between the rich and poor nations.
Therefore in the North south dialogue the poor countries demanded the following.
1. They demanded the existing international trade to change so that the poor countries who are the producers of raw materials only can also be able to develop their heavy products in order to get out their dependency.
2. They wanted the price of agricultural raw materials at the world market to be reasonable, good and permanent or fixed because the existing prices are low and are frequently changing which is of a great disadvantages for the development of the poor nations.
3.They demanded transfer of technology from Europe and America to Africa, Latin America and Asia free of charge; where they argue that technology is a right of every man kind therefore the developing nation has a right to get it without any conditions from the developed countries.
4. They demanded that the developing nations are poor but this poverty has been caused by the developed nations; therefore in the new international economic order the rich countries are obliged to help the LDCs by giving loans, aid and grants together with cancelling their external debts.
5. The developing nations appeal to have a voice in the international financial organizations (organs) like WB, IMF because the poor nations use the money from those financial institutions however they have no say especially when to get and when to pay back the loans.
6. The LDCs wants also to ratify the international trade maritime in which the overseas transport should not only be monopolized by the developed nation rather benefiting all nations in the world.
7. The LDCs want disarmament and investment in armament programmers so as to preserve tranquility and mention the world peace and security.
THE INTERNATIONAL MONETARY FUND AND THE WORLD BANK TOWARDS THE SAP’S
The IMF and WB are two most important institution set up by the UN monetary and financial conference popularly known as the BRETON WOOD conference held in New York in July 1944 however these two institutions come into effect/existence in 1945.
INTERNATIONAL MONETARY FUND ITS OBJECTIVES
To promote international co-operation on international monetary affairs by being a machinery for consultation and collaboration about money.
To facilitate international trade by adjusting differences between the values of currencies of different countries of the world.
To facilitate exchange stability and ordering exchange arrangements including transfer of fund among nations.
To eliminate foreign exchange restrictions which prevent the growth of world trade.
To shorten duration and magnitude of payment of imbalances (debts) between nations.
FUNCTIONS OF IMF
To administer exchange rate policies and restrictions on payment for the current account transactions.
To provide members with funds in order to enable them collect or pay for their debts.
To provide forum or room for members to consult each other and work together on international monetary matter
PRINCIPLES OF IMF
The IMF provides loans to all needy members on condition that they must pay bank soon after solving their debts so that other needy members can be borrowed.
A recipient member should first show how she intends to solve debts and how she will pay bank the debt with interest which always takers 3 to 5 years.
WORLD BANK (WB)
This was established on July 18, 1944 and started her activities in 1945, hence WB was known as international bank for reconstruction and Dev elopement (IBRD) and its head quarter is in Washington DC U.S.A.
To work on reconstruction and development of its members in which most of the members were affected by the WW II.
To provide foreign private investment to its member state especially private capitals.
To promote long term balanced international trade by enabling members to balance their payments with money from the bank.
PRINCIPLES OF THE WORLD BANK
It provides money for productive purposes e.g. money in agricultural/sector, rural development, construction of infrastructures and energy.
Loans may be used to purchase goods from any country in the world without restrictions.
Loans can be given to either country or political sub-division or to private enterprise in a given territory.
Technical assistance and other services are provided to member state.
Bank decision to provide money must be based only on economic consideration.
The loans must be guaranteed by the government concern and for specific project.
CONDITIONALS OF IMF AND WB
The IMF and WB introduced the following conditionality’s aimed at changing the economies of LDCs to be a capitalist economy.
1.To allow trade liberalization and foreign exchange; whereby the government of the LDCs is forced not to control the prices and abolish the price commission so that the prices should adjust themselves in the world market basing on the law of supply and demand.
2.To devalue the currencies so as to attract more investors in countries and more buyers of goods from countries concern, but also devalue of currency aimed to make the currency of the LDC s at least to match with the capitalist economy.
3. To control government budget deficit by reducing government expenditures like provision of social services, buying of expensive cars of leaders etc.
4.The government of LDCs should increase taxes by charging public goods and services highly.
5.The government of the LDCs must reduce their expenditures on provision of social services like in education, water supply, and electricity by introducing cost sharing between the government and people with general public concern with social services.
6. To allow and introduce western democracy or liberal democracy led to existence of multiparty and its features.
7. To allow redundancy of works. This is done by the IMF and WB to force the government of LDCs to privatize government parastatals and reduce workers from civil servants in order to control the budget of the country, reducing budget deficient and controlling over expenditures.
8.To allow privatization policy; hence the government of LDCs are forced to privatize their economy in the countries for the foreign investors such as agriculture, mining sectors all these is done by welcoming foreign investors to invest tin different economies sectors.
This refers to the policies introduced by IMF and WB in order to control the state budget and official policies in the LDCs; therefore the IMF and WB aimed at creating changes of the government budget so as to bring development in the LDCs.
BACKGROUND OF SAP’S
Due to worsening economic conditions the LDCs especial in Africa in the mid of 1980’s; approached the IMF and WB for Loans hence the IMF and WB suggested for SAP’s to be in traduced in the LDCs as a solutions for their economic development.
REASON FOR ADOPTION OF SAP’S IN LDCs
To solve external debts crisis in the LDCs especially in African States.
To promote rural development projects in order to improve the living standard of the rural people.
To improve the rapid decline of per capital income in order to make sure that people in the LDCs should have high per capital income.
To improve the rapid decline of G.N.P (Gross National Profit) in order to make sure that nations found in the LDCs should improve their national domestic product and avoid dependency from the developed countries.
To improve the decline of health services in order to make sure that government of the LDCs particularly in Africa should improve better social services to their people like hospitals educational facilities, clean water supply etc. e.g. availability of drugs in hospitals, dispensary or health centers, availability of equipment in hospitals and educational facilities i.e. books laboratory equipment etc.
To improve transport and communication networks in the LDCs in order to make sure that transport and communication networks is well available in the LDCs for development e.g. road ports, airports, railways etc
To improve science and technology in the LDCs so as to remove the problem of weak science and technological base found in LDCs particularly in Africa and which has been acting as an obstacle for the development of LDCs. 8. To help the LDCs to get out of the poverty this is common problem in LDCs.
OBJECTIVES OF SAP’S
Aimed to reform and elimination of restriction of trade between North –South.
Aimed to privatize all public sectors so as to improve the G.N.P. of the country concern, provide employment and improve the growth of per capital income of each individual found in LDCs.
Aimed to reform agricultural sector by mobilizing the resource of the LDCs for improvement of agricultural sector.
Aimed to remove and reduce poverty by improving the living standard of the people found in LDCs, improving G.N.P. of countries, improving science and technology of the third world and improvement of economic growth.
Aimed at improving public investments programmed by welcoming investors both from within LDCs and outside of the LDCs.
Aimed of improvement and clear linkage of different sectors of the economy found in the LDCs for domestic development and restoration of economic growth of the LDC.
PRINCIPLES/CONDITIONS/FEATURES OF SAP’S
To remove subside in agricultural sector whereby IMF and WB force the LDCs to remove subsides on agricultural sector.
To introduce cost sharing in social services; whereby governments of LDCs are forced to withdraw from providing free social services like free-education, health care, electricity, water supply etc.
Devaluation of currencies. The LDCs is forced to devalue their currencies in order to accept by the capitalist in their trade transactions in the world market.
Privatization of economic sectors; are reforms programs in the LDCs are forced to privatize their financial sector, industry, mining trade and reforming other sectors like public sector management, trade sector etc.
Unemployment/redundancy of workers; majority of the civil servant face with the problem of unemployment after public sector privatized to the foreign investors
Elimination of trade barriers, tariffs and custom duties. The LDCs are forced by IMF and WB to eliminate trade barriers in order to premiere private sectors and foreign investors who come to invest in LDCs.
Elimination of price commissions in order the prices in the market to be determined by the law of supply and demand.
Removing restrictions on collective reform and wage selling practices so as to attain better life in LDCs, this is achieved by introducing collective bargaining between employers and employees.
Introduction of western democracy based on liberal democracy which insists under multiparty and introduction of puppet leaders.
Introduction of trade liberalization. This is done by forcing the governments of the LDC s to remove the price commission of raw materials and manufactured goods in market to be determined by the law of supply and demand.
Destruction of culture in the LDCs by forcing LDCs to practice their foreign culture which always destroy the culture of the people found in the LDCs.