POLITICAL ECONOMY OF AFRICA CHAPTER 3 Ake

A Political Economy of Africa: Key Insights and Concepts

Colonial Economic Framework

• Colonization and Capitalism: The relationship between colonialism and capitalist penetration in Africa highlights how colonialism often facilitated the extraction of resources rather than fostering genuine economic development. This created a foundation for understanding why Africa faces ongoing underdevelopment today.

• Disarticulation of the Economy: Colonial economies were marked by disarticulation—parts of the economy did not complement each other. An economy is coherent when there exists a reciprocity of exchanges between regions (agriculture and manufacturing); however, colonial economies typically lacked these positive linkages.

Elements of Disarticulation

1. Incomplete Development and Investment

• The colonial powers invested only minimally in sectors that would promote local development—focusing instead on regions where commodities could be easily extracted for export, such as ports and resource-rich areas. Key cities (Lagos, Mombasa, Nairobi) reflected European standards of living, while surrounding areas remained neglected.

2. Transport System

• Railways and transport infrastructure were primarily built for the export of raw materials rather than fostering integrated national transport systems. Individual railway lines, such as the Kano-Apapa railway, were constructed specifically to facilitate commodity transport, highlighting a lack of coherent planning and development.

Imperial Structures and Economic Monopolies

• Market Imperfections: The colonial economy was characterized by monopolistic tendencies, which restricted competition and created market imperfections detrimental to local economies. This situation was fueled by the interplay of European powers and their quest for raw materials and markets, leading to monopolization of trade in Africa by few powerful firms.

• Role of Trading Companies: Entities like the Royal Niger Company exercised vast political and economic power as they were empowered to govern through charters. Their monopolies facilitated significant exploitation and dislocation of local economies, demonstrating the nexus between trading companies and imperial power.

Economic Dependencies and Exploitation

1. Monetary and Financial Dependence

• Colonial monetary systems were extensions of those in the metropole, inherently limiting indigenous economic growth and access to capital for local populations. Control over reserves and currency ensured economic exploitation rather than development.

2. Technological Dependence

• African colonies were heavily reliant on Western technology, which further entrenched economic dependence and limited local capabilities for innovation and production. The manipulation of labor and production methods often left local producers vulnerable to exploitation.

Colonial Agricultural Policies and Peasant Integration

• Colonial policies often disrupted traditional agricultural practices, leading to a focus on export commodities over local food security. For example, cocoa production soared in Ghana at the expense of traditional food crops, which marked a significant shift in agricultural focus toward cash crops dictated by colonial interests.

• Paddy management of peasant production involved imposing regulations intended to increase efficiency but ultimately served capitalist interests, leading to the exploitation of local producers while ensuring higher profits for colonial powers.

Conclusion: Understanding the Colonial Economy's Legacy

• The analysis of colonial economic structures serves as a critical lens through which to understand the persistent challenges of underdevelopment across Africa. The disarticulated nature of these economies, characterized by monopoly, dependence, and exploitation, continues to influence contemporary economic dynamics and relations within African states and between African nations and the global economy.