p Between 1960 and 1976, the foreign trade turnover of the newly free African countries increased from $11.9 billion to $78.4 billion, or by 550 per cent. [203•1
p African exports grew rapidly (from $5.3 billion in 1960 to $37.5 billion in 1976), as did the continent’s imports (from $6.6 billion to $40.9 billion). In the period from the late 1960s to 1975, independent Africa’s trade balance was, on the whole, active. True, exports exceeded imports chiefly in the countries exporting oil, metals and metallic ores, such as Libya, Nigeria, Algeria, Zambia, Zaire, Mauritania, Gabon, and Liberia. In 1975, only the biggest oil exporters— Libya and Nigeria—had an active trade balance. In all the other African countries imports were still considerably higher than exports.
p The rapid growth of African exports was due to many factors, the most important including: the higher demand for oil and some other raw materials on the part of the industrial countries (raw materials account for over 90 per cent of Africa’s total exports); the considerable rise in the prices of African exports; and the policy of stimulating exportoriented production to increase the African countries’ foreign exchange earnings (see Table 6).
p There was an especially rapid increase in the export of oil, copper, bauxites, aluminium, iron ores, and phosphates. The development of the mining industry and the growth of mineral raw material exports from Africa have resulted in huge profits for the monopolies in the USA, Britain, France, Belgium, and West Germany. The African countries have only received part of these profits, mainly as taxes and deductions.
p
Until recently, African government organisations have
had almost no say in monopoly export policy. Even in
those cases when ownership rights for African mining
enterprises were partially taken over by national govern-
•
204
Table 6
Commodity Structure of Exports from African Countries
I960
1975
Increase
from I960
to 1975
$mln
%
$m]n
%
(%)
Foods tuffs
1,870
35.2
5,061
14.8
170
Agricultural raw materials
1,728
32.6
5,107
14.9
190
Mineral raw materials
(ores, non-metallic
minerals)
482
9.8
2,219
6.5
360
Fuel
245
4.6
20,766
60.7
7,470
Non-ferrous metals
590
11.1
1,422
4.1
140
Manufactures
300
5.7
1,802
5.3
500
Source: ECA Survey a/ Economic Conditions in Africa 1967, New York,
19G9, 17. JV. Monthly Bulletin of Statistics, May 1977.
•
ment agencies, the export of their output for a long time
remained under the control of foreign monopolies (e.g.,
in Zaire, Zambia, and Sierra Leone). This, undoubtedly,
hampers the development of their trade with the USSR.
Yet the growing output and export of minerals have opened
up new opportunities before the independent African
countries, the realisation of these being closely connected with
progress in socio-economic changes. The consolidation of
the African countries’ sovereignty over their natural
resources will facilitate the expansion of their trade with
the socialist states, which can import large quantities
of many minerals, and also materials and articles made
from them.
p The position of African countries on the world farm produce market is less favourable. True, their export of some foodstuffs, such as citrus fruits, cocoa-beans, coffee, and tea, increased in the 1960s, but the export of wine (which is vital for the countries of North Africa) dropped substantially owing to the protectionist policy pursued by Western countries. The export of cotton, sisal, leather, and natural rubber was low for quite a time. This was largely because of the increased competition from synthetics, such as chemical fibres, synthetic rubber, and plastics. World prices for many agricultural raw materials have jumped in recent years, but most of the African countries have 205 only been able to make limited use of this favourable devel opment owing to inadequate export resources. Besides, the developing light industry in some newly liberated African countries (textile and footwear) uses local raw materials, which also limits export possibilities.
p Exports of manufactured goods from independent Africa are still negligible: in 1975 they totalled as little as $1.8 billion, [205•2 or 5.3 per cent of Africa’s total exports. The biggest exporter of manufactures was Egypt which, thanks to its stable economic ties with the socialist world, was able to expand its exports of textiles, yarn, clothing, furniture, footwear, and haberdashery. Other countries, too, such as Algeria, Morocco, Nigeria, Ghana, Kenya, Zambia, and Senegal, export some textile, woodworking, chemical, and metal-working articles. Besides, some African countries export industrially processed foodstuffs.
p African countries are very interested in increasing their exports of manufactures, but encounter many difficulties in this. To begin with, their manufacturing industry is still underdeveloped, meaning that their production base is inadequate. Another difficulty lies in the discriminatory capitalist trade policy of blocking manufactured exports from the developing world. The Soviet Union’s trade policy is diametrically opposite to this: manufactures from the newly free African countries account for an increasing share of Soviet imports from Africa.
In the 1960s African imports grew slower than exports. Some African countries, even if they had the necessary hard currency resources, did not start any radical restructuring of their economies, so they did not speed up their import growth. Other African countries had to curb their imports owing to the foreign exchange shortage, their foreign debts and money owed for services rendered. In recent years the value of African imports has increased substantially because of the higher world prices for many imported goods and the urgent need for foodstuffs. Import opportunities have expanded markedly in the oil-exporting countries, whose foreign currency earnings have grown considerably.
206 T a b 1 c Conii/wdil!/ Structure of African Im/torts* 1001) 11)75 1 nerrasc from 11171) to 1 ’,) 7 5 Smln % $inln % (%) Machines, pqiiipnifnl and transport, facil- 1,732 27.1 14,476 38.5 730 ities 1.140 17.8 5,502 14.6 380 Foodstuffs 265 4.1 1,500 4.0 460 Raw materials 510 8.0 3,347 8.9 550 Fuel 440 6.9 2,833 7.5 540 Chemical products Manufactures (except machinery) 2,150 33.6 9,904 26.3 350 * Excluding the import of ships to Liberia (from Japan), which arc purchased by US and West European companies and sail under the “ convenient” Liberian flay. Source: EGA Survey of Economic Conditions in Africa 1967, New York, 1069; U.N. Monthly Bulletin of Statistics, May 1977.p Almost all African governments are cutting down consumer imports and encouraging the purchase of capital goods, yet the share of imported foodstuffs and consumer goods in Africa’s imports remains high. The rapid urbanisation and lagging agriculture compel some African countries to spend their meagre foreign exchange resources on consumer imports. At the same time, the import of machinery and equipment grew considerably during the 1960s and continued to do so in the early 1970s. This is indicative of the modernisation of the African economy, a process that continues despite many obstacles.
p After consolidating their political independence, the African countries began to enjoy a greater freedom of manoeuvre and can now choose their foreign trade partners. They can take advantage of the contradictions between the imperialist powers and expand their economic ties with other developing nations and witli the socialist countries which do everything to assist them in their struggle for economic independence.
p The African countries that have chosen a socialist orientation have markedly changed their foreign trade policies. Specifically, the share of the member-countries of the Council for Mutual Economic Assistance (CMEA) has notably 207 increased in the foreign trade of Algeria and Guinea in the 1970s.
p In most other African countries, there have so far been no major changes in their foreign trade. The industrially developed capitalist states still account for some 80 per cent of Africa’s foreign trade turnover.
p A convention regulating the trade, economic and financial relations between 46 African, Caribbean, and Pacific countries and the EEC was signed in Lome (Togo) in February 1975. Heeding the demand of the developing countries, the new Convention does not use the term “association”. On the other hand, it offers West European monopolies new opportunities for neocolonialist penetration into Africa. [207•3
p Inter-African trade accounts for only 4 per cent of the continent’s total foreign trade turnover. Africa’s regional organisations, such as the East-African Community and the Central African Customs and Economic Union, have so far had no significant effect on the expansion of inter- African trade. This is because of the similar economic structures of most African countries, inadequate transport communication, and the differences between members of regional” organisations.
p Yet there is a growing tendency towards expanding economic cooperation between African countries, as well as between these" and developing countries in other parts of the world. The Arab countries of North Africa have broadened their economic relations with the Arab countries of Southwest Asia and some countries of Tropical Africa. In 1975 the Economic Community of West-African States was reestablished and expanded to include the French-speaking and English-speaking countries of the region. New forms of bilateral and multilateral cooperation are developing between African countries. Zambia and Tanzania, for instance, are increasingly coordinating the development of their transport systems. An agreement on the creation of a freetrade zone has been reached between Liberia and Sierra Leone. The African Development Bank has greatly stepped up its activities.
p African trade with the CMEA member-countries has developed faster than that with other groups of countries: 208 between i960 and 1976 it grew from &0.6 billion to j>4.5 billion, or by 65U per cent. Tbe socialist countries’ trade and economic relations with some African states have become stable arid mutually advantageous.
p The period from 1973 to 1976, when a number of radical changes occurred on the international scene and the world market, became an important landmark in the development of Africa’s economic ties. The policy of detente ,pursued by the Soviet Union and the other socialist countries has been conducive to the expansion of trade links between countries with different socio-political systems. At the same time, the confrontation has increased between the developing countries seeking to do away with all the vestiges of colonialism in the international division of labour, and the industrial capitalist countries seeking to retain their privileged position in trade.
p The period 1973-76 was marked by the following major changes in Africa:
p —fluctuations in the prices of African exports increased considerably. In 1973 and the iirst half of 1974 world prices jumped for oil and the majority of raw materials, resulting in bigger hard currency earnings for a number of countries. Starting from the second half of 1974 and throughout 1975, however, prices remained high only for oil, phosphates, and coffee, while those for other African exports dropped. In 1976 prices for raw materials went up again:
p —the nationalisation of foreign monopolies, especially in the mining industry, gained momentum and scope;
p —the activities of associations producing various raw materials and involving African countries expanded;
p —the prices for many African imports rose;
p —the food problem became worse in some African countries, thus compelling them to speed up the development of agriculture and increase food imports;
p —the economic differences between the African countries became more manifest in general: some countries that have developed oil or other raw material resources improved their economic situation, while those that have no such resources found themselves in an even worse situation;
—the influence of the oil-exporting countries on Africa’s foreign economic ties increased.