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Assess Ghana’s external relations under the Kufuor
administration in the areas of good neighborliness and economic
diplomacy.
Intro


2000 general elections won by NPP brought them into power
Ghana’s fp since indepence has not changed significantly and Kufuor led
admin was to pursue ghana’s fp in the framework of the 1992 constitution
o Protecting interests of Ghanaians abroad
o Relations with other nations bring peace, security and stability to the
country
o Protecting vital interests of Ghana
Good Neighborliness
 in the context of ECOWAS
o FP objective: closest possible cooperation with neighboring countries
with which the people of Ghana share a cultural history, ties of blood
and economics
 Development and prosperity of Ghana intimately tied to that of
her neighbours in the sub-region
 Address common challenges
o Necessary to re-establish ties with some neighbouring countries – state
visit
 Tension with Togo (Olympio friends with Rawlings, using
Ghana as a place to launch an attack at Pres. Enyadema),
Burkina Faso (Rawlings friends with Sankara who was
overthrown/killed by Blaise Campaore)
 Cote d’Ivoire: no direct conflict with Ghana but violence
within Cd’I (played a role in the peace process – mediating
between parties)
 peace is required for development and friendly relations with
Ghana’s neighbors as well as boosting ECOWAS Agenda
 Liberia - hosted Peace Talks in Accra in 2003 for peace
process
o 2003 & 2004- ECOWAS chair
 in the context of the continent (AU)
o leadership role at the AU (AU chairman 2007-8)
o restructuring at Ministry of Foreign Affairs to enable implementation
of NEPAD
o first country to NEPAD’s African Peer Review Mechanism
 international context
o Enhance international image to attract goodwill from development
partners
o UN SC membership
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Economic Diplomacy
 Oil supply from Nigeria (instead of Libya) and funds for West African Gas
Pipeline Project as a result of good relations between Kufuor & Obasanjo
 HIPC Initiative
o Inflation was 40% & depreciation of the cedi by 50% of its value vis a
vis the USD; fiscal deficit 9% of GDP; reserves not sufficient to cover
a month’s imports; difficult in debt servicing
o HIPC Initiative lead to cancellation of Ghana’s external debt
o Targets: Ghana to become a middle-income country with an average
per capita income of $1000USD - attained
 Aim to include Ghana in most favoured nation arrangements – benefited from
AGOA and Millennium Challenge Account ($547million USD), Revised List
of Dutch Aid Recipients
 Objective of FP was to include Ghana in any debt relief package on offer from
creditor countries
o Received close to $4 billion USD in debt relief
 Ensure market access for Ghana’s exports through engagement with WTO and
EU-ACP arrangements
o Economy grew from $5.1 billion to $28.5 billion (2000-2008)
 attracted a lot of investments to Ghana in its quest to achieve equitable and a
just global trading relations
o Japanese gave a grant of US$80million for the reconstruction of the
Mallam Kasoa – Yamoransa road; support for SMEs; cancellation of
debts totaling US$1.01 billion
o Spain yielded US$40million soft loan and a promise of
US$120million provided the first loan was used well. The loan was to
be used for the improvement of the cardiothoracic unit at Korle – Bu
Teaching Hospital, the completion of the maternity block at the
OkomfoAnokye Teaching Hospital in Kumasi
 South-South partnerships
o India assisted with the Ghana – India Kofi Annan centre for
excellence in IT, the presidential complex, rural electrification, three
thousand (3000) tractors and assistance for the security and medical
sectors
o China granted $US15million loan facility by Alcatel – Shanghai bell
to Ghana Telecom and the expression of interest by Sino – Hydro
Corporation in Ghana’s Bui Hydro – electric project. China also
funded the military and police barracks project handed over in
February 2004
o ECOWAS: private sector to the centre; 116 Ghanaian enterprises and
255 products registered under ECOWAS Trade Liberalization scheme
 Debt reduction of 189% of GDP to 29% in 2008
Conclusion
 Success b/c of massive infrastructure it brought to the country
2
Nkrumah’s concept of African unity was “plainly chimerical
(illusion)” (Dennis August), essentially a mirage like “chasing the
whirl wind” (Scott Thompson). Discuss.
Introduction
 Context
o Explain quotations/concept
o Emergence of Nkrumah in Ghana and in Africa
o International Environment
 Newly independent African states
 Cold War period
Nkrumah’s Concept of African Unity
 Political Union of African Countries
o One African parliament, pan-African Assembly
 Joint Military High Command
o Deployed to protect any part of Africa
 Economic Union With A Common Market
o Joint economy would allow to compete with Europe
 Borderless Africa
o Borders created during ‘Scramble for Africa’ to be eliminated
Why was his idea of African unity a mirage/impossible (critique of his concept)
 At the time he was coming up with these ideas, most other African states were
just gaining independence – just beginning to ‘taste’ sovereignty and didn’t
want to relinquish what they had just gained
o Those still under colonialism were trying to break free from colonial
masters; not keen to be grouped under another umbrella
 Overly ambitious, Africa as the bigger picture – Nyerere became suspicious
that Nkrumah wanted to become the ruler of Africa
o Lack of trust and confidence among peers
 Difference in appreciation of the sense of urgency
o Gradualist Approach (Nyerere) vs. Radical/Militant Approach –
Nkrumah had wanted independence ‘now’ and this translated into
‘unity now’
 Nkrumah: Time as the crucial factor - forces that endanger
Africa do not stand still
 Unitary government not feasible because of diversity of African countries
o Political union less desirable
o Economic integration a better option to deal with socio-economic
challenges
o Language barriers between countries
o Diverse ethnic groups
 Wanted a borderless Africa but was still requiring other Africans to attain
visas to enter Ghana
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Peace non-existent in some countries – hard to create unity from instability
Why he failed in his African Unity policy
 Antagonized neighbours
o OAU policy of ‘good neighbourliness” ignored
o Couldn’t maintain positive diplomacy in W/Africa and therefore
couldn’t gain support across Africa for unity
 Adopted elitist approach
o Ignored seasoned diplomats and only listened to a few close advisors
 Resentment & rejection of Monrovia group
o Treated other leaders as if they had less role/significance in their own
countries  in turn the rejected Nkrumah
Conclusion
 Formation of the OAU confirms that Nkrumah’s concept were not feasible
o Principles of OAU contradicted Nkrumah’s ideas
1. equality of states
2. non-interference in internal affairs
3. respect for sovereignty
 Some positive contributions
o Inspired/aided independence in Africa
o OAU, although not how he wanted it, is an attempt at unity
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5
Discuss the objectives and achievements of Nkrumah’s foreign
policy
Success of FP depends on effects domestically
TENSETS of CCIAS
Objectives
 Total liberation of colonialism & racism
o Instrumental in UN for spearheading adoption of several measures
against colonialism & racism
 GA Res 1514: granting of independence to colonial territories
 GA Res 1716: diplomatic and economic sanctions against
S.Africa
 Economic independence of Ghana
o Satisfy expectations of Ghanaians
o Modernize Ghana as a showpiece of African achievement
o Importance of Volta River Project – determined relations with UN,
West…
 Non-alignment & positive neutrality
o Used as a means for Ghana to act the way it saw it best
o Retain substantial freedom of policy and action by not associating with
any one side (ie: NATO or Warsaw Pact)
 Avoidance of “big power” politics
 Support for the UN
o UN as a means for small countries to exert some influence in the realm
of p&s
o Medium for social and economic development
 Elimination of neo-colonialism
o Ghana’s independence meaningless without total liberation of the
continent
o 1st Conference of Independent African States & All-African Peoples’
Conference: agree on future action; expression of Ghana’s
commitment to freedom struggles
o seek ye first the political kingdom as a means of obtaining other
objectives
 The attainment of political unity & African personality
o Decolonization to prelude political unity of Africa
o Common foreign policy, common domestic & economic policy
 Support for Commonwealth
o Commonwealth as:
 a demonstration of the sort of international relations Ghana
wished to see
 an example of North-South cooperation
 platform for projecting African personality in world affairs
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Achievements
1. economic diplomacy
 yielded high dividends
 positive neutrality
 mechanization of agriculture
 creation of Tema Motorway, Takoradi Harbour
2. Image of Ghana
 goodwill of Ghana
 respected in terms of FP
 speaking for Africa
3. One of 4 founders of NAM
4. Regional integration
5. Formation of the OAU
6. Decolonization of the continent
 material support
 inspiration/motivation – Ideological Institute at Winneba; scholarships
7. African self identity (self consciousness aroused)
8. Still reaping benefits even though he is no longer around
Why he was effective
 Charisma & communication skills
o Able to win admiration
o Helped his ability to communicate his vision
o Spoke to issues which masses could relate to
 Clarity of vision
o “independence of Ghana meaningless unless linked with total
liberation…”
o a leader can accomplish much if s/he has a clear vision
 International system
o responded well to his decolonization idea
o could go to both E&W for help – “not looking East or West, looking
forward”
 Absence of viable opposition
o Held major political roles (PM, SG & Chairman of CPP)
o Preventative Detention Act (1959) – culture of silence, Bills easily
passed
 Strength of Ghana’s economy
o Inherited reserves of £250 million upon independence
o FP only okay if your economy is okay
o Able to give money to other independence movements (main tenant of
FP)
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Weaknesses
 Impatient of others with dissimilar views regarding unity
o Resentment and rejection of Monrovia Group (treated other leaders as
if they had less role/significance in their own countries)
 Balancing African policy with need to maintain efficiency in Ghana
o Adopted elitist approach – only listened to a few close adivsors
Had gained independence but economy was linked to the West and relied
on one crop
Examine the factors that lead to Nkrumah’s effective FP
formulation and implementation
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Strength of economy he inherited
o Enabled him to financially support independence movements of Mali
& Guinea
o Eventual creation of Ghana-Guinea-Mali Union
Clarity of vision
o Academic background gave him the clarity to determine what he
wanted for Africa and Ghana
o Manifested in his independence speech
 Independence of Ghana meaningless unless….
Charisma & communication
o Admired for his charisma; more approachable, likeable, etc
o Spoke to issues which masses could relate to
International system
o responded well to his decolonization idea
o could go to both E&W for help – “not looking East or West, looking
forward”
Absence of viable opposition
o Held major political roles (PM, SG & Chairman of CPP)
o Preventative Detention Act (1959) – culture of silence, Bills easily
passed
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Repudiate = deny the validity
Will you say that with hindsight Acheampong’s yentua (debt
repudiation – we won’t pay) policy was short sighted and ill
advised?
Yentua Policy
 Categorized debt into 3:
o Long term debt
o Supplier’s credit (long term & short term)
o Short term loans
 most of the debts were secured corruptly or with little or no investigation
o would not pay supplier credits amounting to £21 million because they
were ‘fraudulent’
o agreed to pay loans if it could be shown the loans were acquired
legitimately
 willing to go to int’l arbitration
 creditors had burden of proof to show legitimacy of loans
acquired
o not willing to negotiation with IFIs
o payment for debts accrued after 1966 would be made as and when
conditions allowed
Why He Took This Policy
 Constraints debt servicing would bring to the economy
o Debt servicing to GDP ratio too high – can’t pay for other things
 Ghana’s ability to survive without loans - policy of economic self reliance
o Price of cocoa increased from £ 260/tonne (1972) to £ 970/tonne
(1973)
Results
 Relations with the West remained cool – victims of yentua were largely
Westerners
 Ghana increasingly turned to the East & Arab countries
o Cut diplomatic relations with Israel in 1973
o Relations established with People’s Republic of China
o Soviet Embassy regained influence it had lost in previous regimes
 Between 1970 and 1975 Western countries prospecting for oil & natural gas
were replaced by E.European geologists (1975 Western entrepreneurs were
given sole right to search for oil)
Criticisms
 Spot cash payments – repudiation of debts led western partners to demand
cash payments for imports (Ghana did not have)
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Benefits
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
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o From 1976 onwards, there were chronic shortages of imported goods
 Drugs in hospitals
 Soap, sugar, salt, etc
 Smuggling & hoarding became common
Antagonized development partners
o Increased relations with the East
o Refusal to pay back loans to Western creditors
Briefing space – political capacity
Economic development – self reliance because of poor relations with creditors
o Operation Feed Yourself – agricultural self sufficiency; all to engage
in farming activities (small scale gardening)
o Operation Feed Your Industries – large scale farming for raw materials
to feed various industries
Favourable Negotiated Debt Payment Terms
o 5 years grace period for short term loans
o 15 years grace period for long term loans
o 28 years for outstanding debt
*** Having obtained flexible repayment terms, he had the luxury of
concentrating funds in infrastructural development
o Housing Scheme
 Built for workers by Ghanaian companies
 One of the largest housing schemes in W/Africa
o Massive Infrastructure
 Kaneshie Market
Conclusion

 Europe and Ghana came to be closely intertwined parts of a diplomatic and
economic system whose fundamental dynamics largely constrain the
functioning of the Ghanaian politico-economic system
o Ghana’s dependence (and vulnerability) is real


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Oil shortage in 1973: had to use cash to pay for oil imports to feed industries
Getting to the end of his tenure, cocoa prices went down
Western creditors who he snobbed were the ones setting cocoa prices
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Examine Busia’s pro-dialogue with South Africa policy in light of
the events leading to the fall of apartheid n 1994. In hindsight,
was it right?
Dialogue in addition to whatever weapons they had tried so far
Boigny & Banda relentless dialoguists
Malawi and Lesotho advocating dialogue – economic dependence on SA and proximity
Existence of Liberation Committee of OAU was a testimony to the commitment to
liberate colonial Africa my means of supporting guerilla warfare
Lusaka Manifesto: prefer to achieve liberation without physical violence; prefer to
negotiate rather than destroy
By mid-1971 nearly half of the 40 independent African states supported dialogue
 If they could be split in half as such, SA could have relations w/ nearly half of
Africa
 OAU’s liberation struggles would be undermined with only half the countries
Arguments against dialogue
 Moral principle: freedom of human beings was not a negotiable commodity to
be bargained with in a dialogue
 If Pretoria was really serious about dialogue it should begin this internally
with its own people before approaching independent African states
 Dialogue presupposes compatibility between aims of parties involved or a
willingness of conflicting parties to compromise
o To African states apartheid is an anathema
o To Pretoria, end of apartheid is political suicide for whites
 African National Congress had tried unsuccessfully for 50 years to engage SA
in dialogue, but in the end resorted to violence
Reasons for dialogue over military intervention
 Sovereignty of states
 Military supremacy of South Africa
o Military strength of apartheid regime could not be impacted by other
African states except Nigeria who was unwilling despite supporting
guerilla warfare
 Military, economic and political support from the West
 Potential negative effects on black population (targets/collateral damage of
guerilla warfare)
 Economic self-sufficiency of South Africa
o Sanctions would not greatly impact
o Stockpiles of strategic commodities making SA impregnable as far as
economic sanctions are concerned
o High per capita income as compared to rest of African states ($897 v.
$260)
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Dialogue less costly than arms struggles
Busia’s personality
Conclusion
De Klerk negotiates for Mandela’s release with Archbishop Desmond Tutu; platform for
dialogue to transition to majority rule
If dialogue occurs, SA cannot maintain an incompatible duality of relations – a relation of
equality with the diplomats of black Africa and separation/subordination of blacks in SA
Dialogue approach was right in all senses – guerilla discussions dominated OAU b/c of
militant nature in which African states gained independence
Fight to end apartheid was misconstrued as another fight for colonial liberation of SA;
liberation committee failed to recognize that the white minority were also Africans
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