Major Events in African History A Guide to the Study of the Origins and Development of the Modern African States Fr. Jovitus F. Kamara Mwijage Morogoro 2012 Major Events in African History Published by SALVATORIANUM First Edition 2002 Second Revised & Enlarged Edition 2004 Subsequent Reprint with corrections 2012 ISBN 978-9987-645-12-7 Cover design: Bernard Witek Jordan University College (former Salvatorian Institute of Philosophy & Theology) P.O. Box 1878 Morogoro – Tanzania Tel.: +255 23 2604854 E-mail: jordanunivcollege@yahoo.com Web: www.morogoro.sds.org facebook.com/jordanmorogoro Table of Contents Table of Contents .................................................................................... 3 Forward................................................................................................... 7 Preface..................................................................................................... 8 Acknowledgements ................................................................................. 9 THE ORIGINS AND DEVELOPMENT OF THE MODERN AFRICAN STATES .............................................................................. 11 CHAPTER I: Modes of Production and Social Production ................. 11 Modes of Production............................................................................ 11 Primitive Communalism ...................................................................... 11 Transition from Communalism to Feudalism in Pre-Capitalist African Societies .............................................................................................. 13 Slavery ................................................................................................ 14 Feudalism ............................................................................................ 16 Capitalism ........................................................................................... 18 Socialism ............................................................................................. 20 Features of Pre-Colonial African Societies ........................................... 21 Social-Political Organizations .............................................................. 24 CHAPTER II: State Organization in Pre-Colonial Societies in Africa 27 Introduction ......................................................................................... 27 The Nature of Centralised Societies (Kingdoms and Empires) .............. 27 The Nature of Decentralised Societies .................................................. 28 Centralised States ................................................................................ 30 Centralized Kingdoms – West Africa ................................................... 44 Decentralized States............................................................................. 49 CHAPTER III: Education and Culture ............................................... 53 Culture ................................................................................................ 53 Education ............................................................................................ 53 Literacy in Africa Before 1500............................................................. 55 The General Aim of Education ............................................................. 56 CHAPTER IV: Contact with the Outside World ................................. 59 African Contact with Asia .................................................................... 59 4 Major Events in African History African Contact with Europe ................................................................ 60 Contact after the Sixteenth Century: The Dominance of the Oman Arabs in East Africa ............................................................................. 63 CHAPTER V: The Long Distance Trade in East Africa ...................... 67 The Participants in This Trade .............................................................. 67 The Main Commodities Included in This Trade .................................... 67 Reasons for the Involvement of Many People of Pre-Colonial Societies in the L.T.D. .......................................................................... 67 Features of the L.T.D. .......................................................................... 69 The Impact of the L.D.T. ...................................................................... 71 The Role of the Nyamwezi and the Yao in the L.D.T. ........................... 74 CHAPTER VI: Trans-Saharan Trade .................................................. 75 The Meaning of the Trans-Saharan Trade ............................................. 75 Participants in the Trans-Saharan Trade ................................................ 75 The Major Trans-Saharan Trade Routes ................................................ 75 Reasons for the Growth of the Trans-Saharan Trade.............................. 76 Reasons for the Collapse of the Trans-Saharan Trade ............................ 77 Effects of Trans- Saharan Trade............................................................ 79 CHAPTER VII: Mercantilism .............................................................. 83 Characteristics of Mercantilism ............................................................ 83 Triangular Slave Trade ......................................................................... 84 Organization of the Slave Trade............................................................ 86 Impact of the Slave Trade in West Africa.............................................. 87 How European Influence Led to the Underdevelopment of Africa ......... 88 How Africa Contributed to the Development of Capitalism in Europe ... 91 The Abolition of the Slave Trade .......................................................... 93 Why the Abolition of the Slave Trade Was Protracted........................... 98 The Protraction of the Abolition of the Slave Trade in East Africa....... 100 CHAPTER VIII: Agents of Colonialism in Africa.............................. 103 Reasons Why European Penetration into the Interior Was Protracted... 103 The Role of Explorers ........................................................................ 105 Christian Missionaries ........................................................................ 107 The Establishment of the So-Called “Legitimate Trade” in Africa ....... 120 Chartered Companies ......................................................................... 122 CHAPTER IX: The Scramble for and Partition of Africa ................. 129 Background of the Scramble for and Partition of Africa ...................... 129 Reasons behind the Scramble for and the Partition of Africa ............... 132 The Terms of the Agreement of the Berlin Conference (1884-1885).... 143 Major Events in African History 5 The Significance of the Berlin Conference in Regards to the Partition of Africa ............................................................................................ 143 The Partition Processes in East Africa ................................................ 145 Stages in the Partition of East Africa .................................................. 146 CHAPTER X: Establishment of Colonial Rule in Africa................... 149 Methods Used to Impose Colonial Rule.............................................. 149 African Reaction to the Imposition of Colonial Rule........................... 153 Why Did the Africans Collaborate? .................................................... 154 Reasons for Africans to Stage Resistance ........................................... 157 Why Did African Resistance Fail? ..................................................... 160 Mass Resistance in East Africa........................................................... 164 CHAPTER XI: The Colonial Situation .............................................. 197 The Colonial Administration .............................................................. 197 CHAPTER XII: South Africa............................................................. 249 South Africa at the Epoch of the Minerals Revolution ........................ 249 Impact of the Discovery of Diamonds in South Africa ........................ 250 Apartheid Policy in South Africa........................................................ 259 CHAPTER XIII: Pan-Africanism ...................................................... 263 Definitions of Pan-Africanism............................................................ 263 Development of Pan-Africanism ........................................................ 264 Pan-Africanism in Africa ................................................................... 267 Nationalism ....................................................................................... 268 Unitary Body of Africa ...................................................................... 269 The Importance of Pan-Africanism..................................................... 270 Achievements of Pan-Africanism ....................................................... 270 CHAPTER XIV: Nationalism............................................................. 275 What is African Nationalism? ............................................................ 275 The Process of Decolonisation ........................................................... 275 Nationalism in Tanzania .................................................................... 289 Ghana Nationalism ............................................................................ 301 Nationalism in South Africa ............................................................... 306 Namibia............................................................................................. 313 Mozambique...................................................................................... 316 Zimbabwe ......................................................................................... 318 CHAPTER XV: African Countries after the Independence .............. 323 Problems Facing African States since Independence ........................... 323 CHAPTER XVI: International Organs .............................................. 337 6 Major Events in African History The Organization of African Unity ..................................................... 337 The East African Community ............................................................. 342 The New East African Cooperation .................................................... 346 European Union (EU)......................................................................... 351 CHAPTER XVII: Neo-Colonialism .................................................... 361 International Trade ............................................................................. 361 Foreign Aid........................................................................................ 362 CHAPTER XVIII: Causes of Political Crisis...................................... 369 Uganda .............................................................................................. 369 Civil Crises in Nigeria ........................................................................ 373 The Civil War in Zaire ....................................................................... 377 References............................................................................................ 383 Forward The purpose of this book is to provide a basic history of Africa. The author begins by exploring the themes of production, including feudalism, capitalism, and socialism. He then specifically examines colonial rule and administration in African states. The formation of political parties, which provided the impetus for liberation, included the phenomenon of neo-colonialism. The author concludes with the political crisis in African countries to date. This book can be used by students of both O and A levels, as well as by those in the first year of their university work. It is a useful reference guide for anyone interested in African history. S. K. Mugisha REO Preface “Unless the Lord builds the house, its builders labour in vain.” Psalm 127:1 The main intention of identifying and compiling this educational material is to meet the needs of history students in O level, advanced level, and college. Major Events in African History covers most of the topics treated in paper one of Advanced Level History as given in the current syllabus issued by the Ministry of Education and Culture. It is my conviction that the information provided in this book will satisfy the examination requirements, for it has been developed for this purpose by an experienced educator who has identified the problems facing Advanced Level History students. It is my expectation that this textbook will be handy and worthwhile for teachers and students of history, both countrywide and beyond. I hope too that this book will bridge the gap created by the lack of suitable and relevant up-to-date textbooks in history. A hardworking student who masters these notes and supplements them with other readings shall succeed in presenting the enclosed material in a logical manner, which will award him flying colours. My dear reader, preparing this cake is first of all risky, tiresome and challenging. However, I am aware that well-wishers and devout academicians, especially historians, may provide valuable feedback. I am open to critique and constructive opinions for the second edition. Welcome! I wish you the best in academic success. Remember: A toad does not jump in a broad daylight unless something is behind it. (Chinua Achebe, Things Fall Apart, p. 20.) Fr. Jovitus F. Kamara Mwijage Acknowledgements Lord God, paving the way for me and granting me everything necessary, You have made possible the birth of this book, adding it to the tremendous drops in the academic ocean. Hallowed be Thy Name. Secondly, in a very special way, I extend my sincere and heartfelt gratitude to my Bishop, Nestor Timanywa, of the Catholic Diocese of Bukoba, who supported me both materially and morally, particularly with his incessant efforts to obtain for me the funds for this project. Exceptional and esteemed appreciation goes also to Bishop Desiderius Rwoma of the Catholic Diocese of Singida for his immense support and encouragement. It was he who told me that becoming an author of a book is possible, provided that one maintains indefatigable determination. Special regards I extend also to the Vicar General of the Bukoba Catholic Diocese, the Very Reverend Fr. Almachius Rweyongeza, whose indelible encouragement inspired me profoundly to this height. I am equally indebted to OPAM (Opera di Promzione Dellalfabetizzazione nel Mondo) of Rome, Italy, whose financial grant has spearheaded this work into such a great success. Without it the whole work would be a fiasco. Distinguished thanks also extend to the Regional Educational Officer of Kagera Region, Mr. Salvatory Mugisha, and to his academic officers, who pleasurably recommended the project to OPAM. Perpetually unique appreciation go to the Rector and his ViceRector, Fr. Medard Weyemere and Fr. Fulgence Rutatekururwa, respectively, together with the 1998-2000 teaching staff of Rubya Seminary, whose multiple support fuelled this work. I would be failing if I forgot my former teachers of history, namely: Fr. Simon Rutatekururwa (my First Rector at Rubya Junior Seminary), Dr. Fr. Pius Rutechura, Fr. Benedict Bigirwamungu, Fr. Potentine Mutalemwa, Fr. Hubert Rwebangira, and Mr. James Kayamba, who opened my eyes into the wonders of history. It was they who taught me to swim in this academic ocean. Profound appreciation is extended to Fr. Julius Mulokozi, my coteacher in the History Department, whose advice, readiness and promptness to proofread this work have given it syntactic flavour. 10 Major Events in African History I must also admit that I am intensely indebted to all who advised and assisted me in this work: Dr. Fr. Melchior Kato, Fr. Marcel Kaberwa, Fr. J.C. Rweyemamu, Fr. P. Mutungi, Fr. David Kamugisha, Fr. Leonard Rutaihwa, Fr. Solomon Bandiho, Fr. Longinus Rutagwelera, Fr. Felix Kamugisha, Fr. Maximillian Mutasingwa, Fr. Edmund Mutalemwa, Fr. Jasson Kaiza, Fr. Marianus Rutagwelera, Ildephonce Katundu, Fr. Eladius Mutunzi, Fr. Patrick Tibangayuka, Fr. Respicius Rwelamira, Frt.Justus Kahwa Mr. Julius Ndyanabo ( Advocate in Dar es salaam), Mr. Cyriacus Binamungu (Advocate and senior Lecturer at Mzumbe University), Mr. Andrew Tham, and many others who do not appear in this list, for it would not be possible. I say thank you all. Again, kind mention must be given to Frt. Simon Madata, Frt. Vincent Mpwaji, Frt. Cosmas Temba, Frt. Fabian Chona, and Frt. Achilles Machumilane of Ntungamo Major Seminary (2001), who did the initial proofreading of this work. I owe much thanks to the authors of different books whose materials and maps provided me with great assistance (they are mentioned in the Bibliography); and the other history teachers of Rugambwa and Ihungo secondary schools. Their support is fantastically appreciated. Numerous thanks extend also to Sokwala Printers, who laboriously but expertly and patiently moulded and put the work into the initial form. Lastly, remarkable thanks are due to my form six students 2000, especially Gotfridus Mulisa and Justus Muchwampaka, who sacrificed their time to make the original material legible and others whose zeal in history increased my confidence and determination. Fr. Jovitus F. Kamara Mwajiage THE ORIGINS AND DEVELOPMENT OF THE MODERN AFRICAN STATES CHAPTER I: Modes of Production and Social Production In this chapter, our main focus will be on the modes of production and how they developed in Africa. A key person in the analysis of these modes is Karl Marx. He believed that society was in conflict concerning production and the equal distribution of goods. For him, where there is no equality in ownership, either of the means of production or productive forces or of the surplus production (or both), a change is brought about by disagreement between the two classes. Marx maintained that any quantitative change in the mode of production has a necessary effect on the social relationship between those who appropriate the major means of production and those who produce; from this, the Marxist-Leninist theory states “history must change according to the forces of production.” In production, conflicts called class struggles develop which he identified as “dialectical materialism.” For instance, in capitalism, the petty capitalist and proletariat collide, with the proletariat forming the anti-thesis and the petty capitalists forming the thesis. The result of the collision is called the synthesis. For him, the ideal synthesis was socialism, where there was no inequality or social injustices. Hence, in this “classless” society, there could be harmonious life. Modes of Production In order for a man to survive, he must constantly satisfy his basic needs: food, shelter and clothing. Fulfilment of these needs requires forces of production such as human labour, instruments of production, economic activity, labour productivity, objects of labour, surplus production, and population. Marx analysed three pre-colonial modes of production in Africa: primitive communalism, slavery, and feudalism. Primitive Communalism Primitive communalism came into existence about two million years ago and was the first socio-economic mode of production in which evolution of the society started. It covered the period of Stone, Bronze, and Iron ages. In the beginning, people were powerless before their environment. They collected whatever nature gave them for food (e.g. 12 Major Events in African History fruits, grains, roots and insects). The instruments of labour were stones and sticks. Later stone axe, bow and arrows supplemented the former. The invention of fire was played a vital role in man’s development; it helped man to cook food and protected him from cold. With the invention of bows and arrows, hunting and defence were facilitated. Characteristics of Primitive Communalism Low level of production: With crude tools and little knowledge, man hardly mastered his surroundings. Hence, through production, man satisfied his basic needs of food, clothing, and shelter. In a word human existence was generally under the mercy of the environment. Equality to all members: Communal societies were not stratified (haves and have-nots). All the able-bodied people worked and produced, all commodities produced were at the disposal of the community and were shared equally, for nobody went hungry or lacked other basic necessities for one’s material existence. Due to food deficiency, population explosion was limited. The youths too participated in production, learning at the same time skills from their elders of the society. Collective ownership: The members of the community jointly owned the major means of production, including land, implements, dwellings, tools and animals. A clan head or leader on behalf of all the kin headed them. This system promoted good relationship among the members of the family or community. Subsistent economy: Due to the low level of development in science and technology, people produced enough food for their upkeep in dayto-day life. Surplus of produce or food reserves were nowhere in communal society. People were always vulnerable to natural calamities, such as hunger and drought. Absence of specialization: People were obliged to do all the jobs, including making tools, hunting, looking for food, preparing shelters and clothes. The division of labour was based on age and sex, men hunted and collected food while women were responsible to take care of the young, old men and women, and sick persons at home. It is in historical record that African communal societies evolved politically, economically and socially. For instance, in economic field, gathering and hunting resulted into arable farming and animal husbandry respectively. In African societies, the first social unit was a family and when several families joined, they formed a clan and more two clans constituted a tribe. Chapter I 13 Transition from Communalism to Feudalism in PreCapitalist African Societies The African societies were not static. They underwent a transformation, which was categorically propelled by the influence of the following factors: the environment, climate and soil fertility, the growth of population, and the increase of productive forces. By these factors, some societies experienced quantum changes in the transition from primitive communalism to feudalism. Thus, by the nineteenth century, some societies had already embraced feudalism. However, some societies, including the Khoisan of Kalahari and the Tindinga of the central Tanzania mainland, retained iron as their chief metal and maintained their communal mode of production. Certain tribes were especially favoured by climate and soil fertility. In West Africa, they included the Mandika and the Yoruba in the forest and savannah regions; in East Africa, the Bunyoro, Buganda, Ankore, Toro, Tutsi, Haya, Hutu, and Waha in the interlacustrine regions and Northeast Tanzania; and in South Africa, the Zulu and Ngoni in the Drakensberg mountains. The reliable rainfall and fertile soils allowed the expansion of agriculture, especially the cultivation of permanent crops (e.g. bananas in Buganda, which needed continuous attention). The cultivation of permanent crops led to the growth of permanent settlements; these were required in order to ensure maximum production, to cater for the needs of the members of society, and to generate a surplus. The advancement of science and technology led through a process of trial and error to the discovery of iron. This was the turning point that gave new colour to agricultural production. The tools produced were sharper and stronger than the older ones. They facilitated agricultural activities, increasing production. The improvement of tools led to the expansion of economic activities above and beyond hunting and gathering. This led to the further growth of surplus production. The population growth was a condition sine qua non in this transformation due to the increase of food and standard of living. The population explosion precipitated a land shortage as people became increasingly overcrowded in small areas. As the result of this, the value of the land escalated, for it was not sufficient to check the rapidly growing population. The shortage of land and its increase in value also contributed to the development of productive forces, since they were conditioned to produce everything in a small area. The shortage of land, coupled with 14 Major Events in African History its increased value of productive forces, threatened the communal mode of production and ultimately led to feudalism. This transformation was facilitated by many factors. The transferral of land from communal to private ownership led to the creation of the classes of land controllers and the landless within the same community. The organization of labour was then reorganized in favour of the controllers of land at the expense of the landless. The landless families worked for the controllers of land in exchange for a plot of the land to either pay in kind an agreed amount of produce or to pay by their labour to the land controllers. The landless were rewarded with protection from the master of the land. In the same way, the distribution of the products was not equal. The land controllers appropriated the lion’s share of the products of the nonowners of land. Over a period of time, this fully eroded communal ownership and led to the creation of classes. The life of the society, together with the new classes, could not withstand the vibrations of change, so the rhythm of communalism underwent a full transformation to a feudal mode of production. Due to the increasing inequality, some societies became more powerful and conquered others. The result was prisoners and wars. These required items, including firm tools for exchange, were produced in order to negotiate with opponents. Commodity production and the exchange of goods (barter trade) became the major indicators of the onset of new modes of production. The rich used their power to rule others. Armies in courts were set up to suppress the poor and the have-nots. Thus the division of labour, inequality, and the expansion of innovated changes led to the collapse of communalism. Slavery Slavery was the first class of antagonism in human history, which was manifested in notorious form of exploitation, suppression and humiliation. This economic system created the possibilities of some people live on the sweat of others. The government, individuals, and, indeed, many administrative powers owned slaves. In most cases, a few lords or masters became masters others and their labour. Slaves were coerced to work for their masters; slave owners had a complete grip over both the means of production and the slaves. Slaves were disowned their rights as were bought and sold like cattle or killed freely. Slave-owners forced their slaves to work hard but in turn were provided with the minimal means of subsistence, just enough to keep them in working routine, thus they were regarded as mechanical executors of someone Chapter I 15 else’s will. Besides slave masters never gave any personal material incentives for his labour. In some parts of the world they were debarred from marrying. The masters categorised the instruments of labour into two subdivisions: the living (slaves, horses, and cattle) and the lifeless (tools, such as hoes and ploughs). The surplus product of the slaves was distributed in the following ways: a part of it went to the slave-holding state in the form of taxes for the support of the interest of the ruling class and the other was presented to the owner of the capital. Slaves in Africa Slave labour was employed to build cities and large structures, such as the Egyptian pyramids. The other work done was to construct dams and irrigation schemes in Egypt. Slaves mined silver, gold and iron, and they were used as domestic servants in different ancient states. Slavery in Africa never existed as an institution, except in Egypt, Muslim communities, and on the coast of East Africa. Disintegration of Slavery The inherent and irreconcilable contradictions within the slave set in its demise. The class struggle between the toilers and the exploiters precipitated the crisis and dwarfed its development. It gave birth to frequent hostilities against slave owners. Then the outcome of this was the destruction of property and stagnation. As the masters and free masses did not participate in production and depended on the surplus produced by slaves, this increased the conflicts between slaves and their masters, which finally resulted into famine and other social evils. The slave resistances crippled the economic and military muscles of the masters. As their military power was weakened, colonial subjugation and plunder were hampered as major sources of state wealth and slavery. Finally slavery lost its importance. In Rome, for example, slave masters allowed slaves to pay money in order to be liberated The growth of productive forces and the emergence of more advanced instruments of labour necessitated the change in the mode of production. For these new implements needed more devoted workmen rather than slaves who were tired of this system and demanded freedom. Nevertheless, the setting free of slaves did not guarantee them of returning them land; instead it created another social problem of jobless people seeking for employment to sustain their lives. Such opportunity was found in plantation agriculture whereby one was able to rent a piece of land to cultivate and pay tribute to the landholder. One could also get employment in return for low payment. Thus, slavery paved way to 16 Major Events in African History another means of exploitative production, which was known as feudalism. Feudalism Feudalism was the second mode of production principled on the exploitation of man by his fellow man. It was based on property and land. The feudal lords controlled the land, which was the principal source of production. The vassals tilled the land, paid taxes, sometimes owned their own labour. The feudal lords drew their vassals and serfs from the peasants and ex-slaves. There merged three systems of feudal rents: Labour Rent Labour rent was also termed as land rent, and had two dimensions, firstly the peasant worked on his plot to get the necessary product for his livelihood and then secondly peasant was obliged to work for three days a week to create surplus for the landlord. To make peasants dutiful in their masters’ estates the use of coercive measures were employed and this minimised the peasant hostility. Rent in Kind This kind of rent required the peasant to work on his plot only, producing a substantial part of the product to the landlord for the use of land. This embraced grain, cattle, poultry, or any other form of produce. Money Rent This was the last form of feudal rent that grew in popularity after money became a major medium of exchange. The peasant paid to the landlords the surplus product in the form of money or cash. This form of rent appeared in the period of feudalism’s disintegration and signaled the gradual development of capitalism. Features of Feudalism This system was based on inequality, in which the feudal lords exploited the peasants through the payment of rents, and other feudal structures such as handcraft production and commercial dealings. Apart from, those sources mentioned above, both in Europe and Asia, land predominated other structures and was owned privately by the feudal lords. In African kingdoms, such as Uganda kingdom and in some forest states of West Africa, the major means of production centred on either land or livestock, especially cattle or crops. Peasants could use the land freely, but they were required to pay rent. The peasants were joined to Chapter I 17 the feudal lords by laws. That is why the peasant hardly deserted his plot freely, but could only do so with the consent of the feudal lord. Feudalism grew in practice with the onset of new developments, including the iron plough and other tools, the stabilization of agriculture and market gardening, and later the agrarian revolution. Feudal Mode of Production among African Societies The feudal mode of production in African societies existed in different forms; its nature depended on the place in which it was exercised. In the Interlacustrine area, the power of the ruler depended on the ownership and the control of land. This system was called Nyarubanja in Karagwe and Buhaya. In Buganda, it was known as Nvunjo and Busulo. Obugabire developed between the Tutsi and Hutu in Rwanda, Burundi, and Buha. The feudal relationship in these regions revolved around cattle ownership. The Tutsi could transfer some of their cattle to Hutu. The donor thus became the virtually the master (SEBUJA) of the recipients (BAGABIRE). The Omugabile and his family were obliged to perform duties for the master, like cultivating and governing the property of the master. UMWINYI was another type of feudalism along the coast of East Africa. In this case, the Wamwinyi, who controlled land, tenants and serfs, monopolized political and economic power. The tenants and serfs lived on the land of the feudal lords in return for labour, services, and tribute. The Wamwinyi were political and religious leaders. In Zanzibar, the relationship of Umwinyi was spurred on by racism and religion. The society was divided into Arab, Shiraz, and Africans, in decreasing order of autonomy. The religion of Islam divided people into different categories: heathen (Washenzi) and civilized Waungwana, Arab, Shiraz, and Muslim Africans. The Wanyamwezi and Wasukuma formed another form of feudalism. The power of the leader was based on the control of the producers themselves. The ability to control and mobilize labour was ideologically based: the Mtemi led the people to new land (Kutema), wherever it was available. In Ethiopia, tenants rented houses and were subject to their landlords. Others became labourers in the construction of magnificent palaces and public works. Among the Zulu, feudalism depended on agriculture and pastoralism. People acquired land and cattle in exchange for the agreement that they would remain loyal to the king and work for him. 18 Major Events in African History In Egypt, feudalism developed in conjunction with the building of the pyramids and in the serving of the Pharaoh, while in West Africa feudalism was associated with trade and mining activities. Capitalism Capitalism (or free enterprise or modified free enterprise) is defined as a political and socio-economic system based on private property and private profit. In this system, individuals and companies own and direct most of the resources used to produce goods and services. Such resources include land and other natural resources, labour, and capital. This capital can include factories, equipment, and money used in business activities. Capitalism divides a society into two main groups: the capitalists and the proletariat. The former own the means of production and the latter are the waged earners and toilers. They are deprived of their means of production and subsistence. Hence, they sell their labour as waged workers. In capitalism, private ownership is highly respected and sacrosanct. Labour, the products of labour and land become commodities. (A commodity is anything produced for market exchange.) The worker sells his labour to capitalists; the latter pays the workers a wage. With the wage, the worker buys her/his means of subsistence: therefore, the relation of production between the workers and the capitalists is commodity based. Capitalism stresses private economic choices. People are free to decide how they will earn and spend their income. Companies may choose which goods and services to produce and how much to charge for them. They also compete with one another to sell products. Major economies that are based on capitalism include The United Kingdom, The United States of America, Germany, and Japan. How Capitalism Works Five factors comprise the major economic influences in a capitalistic society. These include individuals, businessmen, and the law of supply and demand, trade unions, and the government. Individuals influence the economy as consumers, workers, and investors. For instance, if the consumers show by their purchases that they prefer small cars to large cars, dealers will order more small cars and fewer large ones Businessmen decide what to produce and where to conduct their activities. To succeed, of business must sell enough of its products at a Chapter I 19 price high enough to yield a profit and enable the business to survive. Hence, business plays a large role in determining how fast a capitalist economy grows. The market forces prices to fall when supply exceeds demand and rise when demands exceed supply. Income in a capitalist economy depends chiefly on supply and demand for the skills that the society values most. People who have valuable skills that are in scarce supply can attract high income. Trade unions also influence wages in many capitalist countries. Trade unions bargain with employers to establish wages scales and working conditions acceptable to their members. Some governments have established minimum wages for workers. Government agencies also enforce safety standards. Governments in capitalist nations allow individuals to use property and companies to set wages, issue money, supervise public utilities, and enforce business contracts. Governments also pass laws to protect competition and forbid unfair business. Problems of Capitalism Economic instability. Capitalist economies experience ups and downs. Economic expansion leads to prosperity, but inflation causes money to lose its value. Due to inflation, capitalist nations often suffer business slumps accompanied by joblessness. Inequalities in the distribution of wealth. Some people in capitalist countries can afford many luxuries. Others, however, lack adequate food, housing, and other necessities. This unequal distribution of wealth results largely from capitalism’s emphasis on individual economic freedom. Neglect of public interest: Most companies in capitalist countries try to earn as much profit as they can. Sometimes, however, government actions are necessary to ensure that the profit motive work in the public interest (e.g. the creation of low-cost housing and community health facilities). Without government regulations, many industries might suffer bankruptcy. Factors Influencing the Rise of Capitalism Crude and merciless exploitation of proletariats by capitalists as they controlled the means of production and money. Masses of people were deprived of the means of production that was their subsistence. Though they were apparently free as members of the 20 Major Events in African History proletariat, they were required to sell their labour to the masters owning the means of production. Capitalism passed through two stages: (A) pre- monopoly capitalism; and (B) monopoly capitalism or imperialism. (Both have the same economic basis: i.e. private ownership of the means of production and the exploitation of waged labour.) (A) Pre-monopoly capitalism The development of primitive and industrial resulted into the premonopoly capitalism. Primitive accumulation of capital, both within Europe and abroad promoted primitive accumulation, which in turn led to the growth of mercantilism. Industrial capitalism evolved from the womb of mercantilism. The former gave rise of manufacturing of goods in industries. The capitalist exploited the workers in various ways including low wages, long workdays, and child and female labour. Such tactics helped the capitalists to accumulate a lot of wealth. (B) Monopoly capitalism Monopoly capitalism is comprised of an association of capitalists. They control the production and sales of most of the particular goods. There may be different forms of monopoly capitalism (such as cartel), but the main interest is maximization of profit. Features of Capitalism The monopolies controlled the economies, political life, and governments of their countries. Larger monopolies divided the remaining part of the world and exerted their sphere of influence. The larger monopolies usually derived power from their home governments in their endeavor to seize foreign lands. (This led to the growth of monopoly imperialism.) For the development of capitalism, see the section pertaining to the partition of Africa. Socialism Socialism aims at setting up a society, which is classless. In this system, the peasants and workers (working class) possess the means of production. Socialism is attained by proletarian revolution. Once achieved, everybody is obliged to contribute and work for the good of the society. Hence, in this society there is elimination of national oppression, no exploitation of man by man and defence of the gains of socialism against encroachments by external and internal enemies. On the other hand socialism seeks to raise the working people’s living