'Combat poverty and help our ACP partners to expand trade ...

2 the Courier n° 169 - may-june 1998

– There is a very strong con-sensus worldwide between govern-ments and international institutionson what the fundamental objectivesshould be. The major concern is theeradication of extreme poverty:finding a growth path for the devel-oping countries which enables themto find prosperity and to tackle theextreme forms of poverty that are ablight on society throughout theworld. The second most importantthing is to support strategies thatallow these countries to integratefully into the world economy. Thatmeans supporting them in develop-ing competitive advantages in vari-ous sectors and enabling them tofind a trade framework that allowsthem to build on their strengths,whether it is in manufacturing, ser-vices, mining or tourism. Those arethe two main development objec-tives.

the fundamental rights of individu-als and ensuring the rule of law. Youneed a government that offers pro-tection to individuals, gives them op-portunities to develop their capaci-ties and provides a predictableframework for business.

Beyond these political as-pects, we necessarily have to look athow we can provide a trade frame-work for our ACP partners and howwe can best support their develop-ment strategies. The Commission hasoutlined its approach in its proposalsfor the negotiation of a post-Lomépartnership agreement – which setout the kind of policies it thinks ourMember States should put forward.As far as trade is concerned, wehope that over the period 2000-2005, we can provide the basis forfurther regional integration oftrade. The most obvious way to in-crease trade is first, within your own

national borders and then with yourneighbours. Beyond your neigh-bours, the traditional partners arealways there. ACP countries realisethat in a very competitive world,there are advantages in having part-ners in the developed world – in pro-duction but also in marketing anddistribution so that their productscan be more easily marketed in Eu-rope. Beyond regional integration,we believe it should be possible todevelop free trade areas with theEU, and ultimately, therefore, to seethese countries reach a situationwhere they can stand alone in theinternational economy.

As for development strate-gies, support will continue – to en-courage the growth of certain pro-ductive sectors or provide thefundamentals for development inareas such as health, education andinfrastructure. The future emphasisis very much on our partners owningtheir own policies, proposing to uswhat they want to do.

■ You mentioned the possibility offree trade areas developing with theEU. The WTO regime clearly makes itextremely difficult to retain prefer-ential trading arrangements. For theACPs, that seems to leave either theoption of a free trade area with theEU or reverting to GSP status – whichone NGO has described 'as a choicebetween the devil and the deep bluesea'. How would you respond tothat?

Philip Lowe, Director-General for Development at theEuropean Commission

'Combat poverty and help our ACPpartners to expand trade, investmentand employment: these are the 21stcentury challenges'Tackling poverty, integrating the ACPs into the world economy and enabling them to compete in the globaltrading system – these are the key areas where Philip Lowe, the European Commission's new Director-Gen-eral for Development, is determined to achieve progress. He took up his post at the end of 1997 having re-cently served as Head of Cabinet to Neil Kinnock, the Commissioner dealing with transport questions. Hepreviously worked in regional and rural development, in banking and in private industry. With negotiationsdue to begin this year on a successor to Lomé IV, Mr Lowe also sets his sights firmly on making better use oflimited aid resources. We began by asking him what he thought would be the key elements of ACP-EU coop-eration in the new millennium.

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Obviously, below that, de-velopment policy has a number ofunderlying aims. The first is to pro-vide the wider framework in whichproper economic development cantake place. The essential precondi-tion here is to have peace and stabil-ity in the regions and countries con-cerned. That involves us very muchin issues of conflict prevention andresolution, rehabilitation and rede-velopment. It involves us in democ-ratisation, in promoting good gover-nance and in helping to create thestructures of society which help sus-tain democracy. Also, in preserving

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3the Courier n° 169 - may-june 1998

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– I think that this is basedon a misconception that the Com-mission is asking our partners tojump from the warm sand into thecold sea in one fell swoop. We aretalking here about a progression to-wards free trade area status and theproposals we have made are basedon that assumption – taking accountof the need for structural adjust-ment and recognising realisticallythat nothing is possible overnight.So the proposals to be made thisyear involve examining what can bedone between 2000 and 2005. Until2005, we will ask for an overall waiv-er from the WTO. And if it provespossible to arrive at a free trade areaagreement with, say, West, East orSouthern Africa, or the Caribbean,which is compatible with the WTOrules, even that would involve atleast a ten-year transition period.

If you ask our NGO col-leagues if they favour the progres-sive integration of ACP countriesinto the world economy, I think theywould agree that within a 15 to 17-year time horizon, it should be possi-ble to achieve that objective. And ifit turns out not to be possible, thenfor certain countries, as we have in-dicated in the mandate, we mayhave to seek other arrangements. Itis illusory to suggest that maintain-ing the present preferences will helpthese countries very much. There hasalready been a general reduction intariffs throughout the world andthis will be taken further in the nextmultilateral round in two years time.This process is diluting the impor-tance of the ACP preferences.

We must find new ways tohelp our ACP partners developtrade. Free trade area arrangements,based on an initial period of prepa-ration and regional integration fol-lowed by agreements with tradition-al trading partners is, in our view, avery good way to tackle the chal-lenge. I am confident that the Com-mission, and indeed the Council ofMinisters, will argue within the WTOon behalf of its partners if furtherexceptions or derogations are need-ed.

■ So you are confident that theWTO will make concessions. There isa waiver at the moment for theLomé system but there is an impres-sion that the world trade body is lessthan enthusiastic about new excep-tions being created. And, of course,its 'panels' have a quasi-judicial func-tion.

– I am personally confidentthat our proposals are in line withthe WTO philosophy, given that theultimate objective is to adapt tocompetitive world conditions. Buttransition periods are required,recognising the need for structuraladjustment. Clearly, the WTO at pre-sent is finding its feet in terms of itsdecision-making processes. Theyhave to look at individual situationsand decide what view to take. Weare anxious they should recognisethe strong development componentin the situation of a number ofcountries. If we take the example ofthe traditional banana producers,we are concerned that their adjust-ment problems should be acknowl-edged. One has to be realistic – youcan't diversify entire economiesovernight. But everyone agrees thatthe organisation of world trade, po-liced by the WTO, is the best wayforward. If we have a set of rulesthat everyone accepts, and whichcan be reinforced or adjusted overtime to take account of specific situ-ations, that is better than a free-for-all.

■ There are those who argue thatover the past four decades, develop-ment assistance has failed to achievesustainable economic growth andthat this area would be better left tothe market. What is your view?

– If we are talking aboutthe so-called 'level playing field', Idon't think that a country half ofwhose people live in poverty, withfew children getting more than pri-mary schooling and with very pooreducation, transport and health in-frastructures, can be described asplaying on an equal basis. There is ahuge structural gap and it is recog-nised that it is incumbent on the de-veloped world to help developingnations reach the situation wherethey can operate competitively andautonomously in world markets. Theobjective is not in dispute. The ques-tion is how we get there, and

whether the developing countriesare capable of doing it without assis-tance.

A second point relates tohow aid is spent – has it been worth-while or not. It is true that perfor-mances in the developing worldhave been mixed. Some states havemoved out of the 'developing' cate-gory and have been able to build ontheir success. Others have lagged be-hind. Whether, in the absence ofaid, they would have performed aswell or better is very questionable.In many cases, the aid which hasbeen provided has certainly present-ed a further deterioration in the sit-uation.

My third point is the generalrecognition that assistance should bemade more effective. All donor or-ganisations have been asking them-selves how this can be done. Oneclear objective should be to pay at-tention to how the money is actuallyspent and also to recognise thatmoney is scarce as far as develop-ment assistance is concerned.

■ Do you recognise that there is acertain 'donor fatigue'?

– I don't think anyone is fa-tigued by the need to help ACPcountries, particularly in Africa, todevelop faster. But they are frustrat-ed that in certain areas, it has notbeen as speedy as it should havebeen. There is also the fact that innational budgets, and in the EU bud-get, there are many other priorities.We now have quite significant sumsgoing to Central and Eastern Eu-rope, to countries which will join theUnion and those in the former Sovi-et Union who are developing eco-nomic relationships with us. TheMediterranean nations have a rightto some solidarity also from the EU,

Banana farmer in St. Vincent.'We are concerned that the adjustment problems

of traditional banana producers should beacknowledged.'



and there are growing relationshipswith Latin American and Asia

But the major challenge re-mains; how can we help the coun-tries that have benefited least fromthe recent increase in trade andgrowth throughout the world – andthese are mostly in Africa. They havenot seen their exports develop veryfast, even to Europe. Up to 1995,their average growth rate wasaround 1.4%. In the last two years, ithas risen to between 4% and 5%but bearing in mind average popula-tion growth of 2.8%, the net eco-nomic growth is still insufficient tomeet the two key objectives – pover-ty eradication and progressive inte-gration into the world economy. Soit is a real challenge to ensure thatwe spend the money correctly and indue time to make a real difference.

I am concerned that there isnot the right sense of urgency aboutthe way the European DevelopmentFund (EDF) monies are deployed.There is a spirit of open-ended fi-nancial commitment to the authori-ties of the ACP countries, without aparallel commitment, both from theEU and the ACP side, to have thatmoney either spent, or reallocatedto areas where it can be used moreeffectively straightaway. So this yearI shall be piloting regular country re-views looking at all the amounts wespend in each country both from theEDF and the EC budget. This exercisewill be repeated every year. Wewant to see, with our ACP partners,where things are going well andwhere we can put in more to get abetter result more quickly. Wherethings are going slowly, we need toask if there is any point in lookingfor ways to accelerate things orwhether we should divert the fundsto other programmes which can beimplemented more speedily. The re-sult of this more dynamic budgetmanagement should be a closermonitoring of the use of the moneyagainst the results to be obtained –both in terms of amounts spent andin the achievement of the objectives.

■ The Commission is just one EUactor involved in implementing de-velopment policies. How would youdefine its role vis-à-vis the MemberStates who have their own bilateralsystems?

– The Member States wantthe Union to have a developmentpolicy and to channel a certainamount of money through that poli-

cy. About a fifth of all funds are di-rected through the EU and the bene-fits are significant. First, the EU is, ingeneral, present in all ACP countries.It is able to bring together expertisefrom all the Member States. The eco-nomic benefits are open also to theindustries and services of the wholeof the EU. Second, the EU is seen asa neutral source of funds for a num-ber of countries who have come outof traditional colonial relationships.And its presence in so many differ-ent countries allows it to promoteregional initiatives which MemberStates themselves are less able to dobecause they may only be present inone or two of the countries in anyparticular region.

That being said, there isevery interest for the Member Statesand the Commission together to de-velop a complementary Europeanapproach. This doesn't mean theCommission wants more competenceto develop its own programmes. Butin any individual country, it shouldbe possible to decide whether aMember State or EU-sponsored pro-ject or programme is of more inter-est in a particular sector. That is whyI brought together the Directors-General of the national administra-tions on February 3 this year to dis-cuss ways of bringing our effortscloser together. It isn't simply a mat-ter of coordinating or exchanginginformation in the technical sense. Itmeans seeing how far we can identi-fy comparative advantages. For ex-ample, in any particular ACP coun-try, would it be better for the EU tolead in the health sector? Would itbe better for Sweden to lead in thefield of education? Are we morequalified in Mozambique, or shouldwe recognise that the World Bankmay have an advantage there?

■ Isn't this already happening – inMozambique for instance, which youmention?

– Yes. We are going to buildon a number of experiences whichare already under way, both withthe bilateral agencies and the WorldBank, to try and generalise this kindof systematic review. That should im-prove the final outcome and meanwe get a better result for every ECUspent.

■ Prior to becoming Director-Gener-al for Development, you headed theoffice of the Commissioner responsi-ble for EC transport policy. Are thereany lessons that you might be able

to draw from that experience whenlooking at transport issues in ACPcountries?

– I think the title of the EU'sstrategy paper on transport withinthe Union – 'Towards SustainableMobility' – is instructive. The aim isto contribute to the creation oftransport systems that are at the ser-vice of individuals and businessesthroughout the EU. As such, it doesnot focus on individual pieces ofequipment or particular modes oftransport, but on centring transportwhere the demand for mobility ex-ists. At the same time, it recognisesthat this imposes pressures on theenvironment. We have got to findsustainable systems to do what is re-quired in this sector. And althoughthe circumstances differ, the mobili-ty challenge is something that alsofaces most of our ACP partners. Theytoo have to work out what kind oftransport systems they are likely toneed. On average, for every 1%growth in the economy, demandsfor mobility grow by 1.5% So trans-port is, by definition, a growth sec-tor in an expanding economy.

Whichever ACP region welook at, we see there is a majortransport challenge. Economic inte-gration, even at the national level, ishindered not just by poor infrastruc-tures but also by a failure to pro-mote a common market in transportservices. The latter is something thathas been done in most Europeancountries and, rather more slowly, atthe level of the EU. So the EuropeanUnion has a lot to offer in its experi-ence of developing transport sys-tems. It has also drawn up, at bothnational and European level, theregulations needed for an effectivetransport market – in areas such asroad licensing, and aircraft safety.We would hope that a number ofbasic requirements, which we viewas absolutely fundamental in Europe– safety in particular – will increas-ingly become part and parcel of ACPnational transport policies. It is dis-turbing to see, for example, that airsafety in some parts of Africa has de-teriorated. Having said this, themain challenge is still the infrastruc-ture – and it will be for a long timeto come.

■ The Commission departmentsdealing with external relations arebeing radically reorganised. In par-ticular, a new Common Service isbeing set up which will have the taskof executing EC policies and pro-



grammes with all our partner coun-tries (both ACP and non-ACP). Whatis the thinking that lies behind thisapproach?

– The creation of a CommonService for administering and imple-menting all financing decisions inthe development cooperation areashould bring significant economiesand other advantages. Companies inEurope often complain about theplethora of rules and procedures –which differ significantly betweenone area of the world and another.With a Common Service, and har-monised procedures, that complexityshould be removed, making it easierfor companies to participate moreeffectively in development efforts.The new arrangement should alsoensure a better division of tasks al-lowing the policy departments ofthe Commission dealing with exter-nal relations to concentrate on twomajor areas: first, getting the poli-cies right, developing them and ne-gotiating them with individual coun-tries and second, programming theinitiatives they want to be financed,and obtaining approval from theMember States where necessary. TheCommon Service will then have aclear mandate from the policy direc-torates-general to examine individ-ual projects and dossiers, to finalisetheir technical aspects, to put themout to tender in the EU and ACPs,and to build up systems which pro-vide for systematic evaluation of

project implementation. This is a bigtask, not just for the new service –which will be ably headed byPhilippe Soubestre – but also for thedelegations who will have necessari-ly a central role in the implementa-tion phase.

I think we should also recog-nise that the external services of theCommission are really one 'family'grouped around three major policyareas – our political dialogue with allthird countries, our trading relation-ships, and our relations in develop-ment cooperation. It doesn't makemuch sense for DG VIII to developpolicies on education, human rights,or conflict resolution which are to-tally at odds with those applied bythe other departments. So beyondthe establishment of the CommonService, work is under way in thecontext of a more general screeningof the Commission's operations, tosee how we can achieve even betterresults through a more streamlinedorganisation of the external services.As a family, we have to work togeth-er and there must be close relation-ships between all the relevant ser-vices.

to indicate that we are now in a ma-ture dialogue with those countries,where we expect them to take onmore responsibilities for initiatingpolicy at national level, and in imple-menting policies. We are there toprovide support on the basis of acontract between us. The EU – and Iam talking here not just about gov-ernments, but also public opinion –wants us to be seen more visiblyachieving results in the delivery ofaid. They want to see us contribut-ing to peace and stability. And theywant African, Caribbean and Pacificcountries to develop and becomepartners in the full sense of theword. It must not be a relationshipof dependency, but a solid partner-ship based on our close and long-standing historical ties, building abetter future for everyone.■

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Slow river crossing in Africa.'The main challenge is still the infrastructure'.

■ Finally, how would you sum upthe way ahead for ACP-EU coopera-tion?

– The proposal we made onthe mandate for a post-Lomé agree-ment with the ACPs centres verymuch on partnership. This is meant


In 1994, member countriesof the CFAF zone suffered a50% devaluation of theircurrency. Various economicarguments were offered asjustification for this politi-cal decision: competitive-ness would be improvedvis-à-vis external competi-tion; there would be aboost to exports; the priceof imported productswould increase and, there-fore, domestic consumerswould buy more local

goods.

In practice, devaluation didlead to price changes. Import costsincreased hitting the 'inputs' bud-get of those economies that de-pended particularly on goods fromabroad. There were sizeable pricerises (around 30%) in Burkina Fasoin 1994, although the ratedropped back sharply to 5% thefollowing year. Positive effects ofdevaluation included the fact thatimport coverage increased from49% during the 1980s to 60% in1995. Cotton exports rose whilethose of livestock soared and thenation's customs receipts also wentup. But this was not the completepicture. Some industrial units thatrelied heavily on imported goodsfound themselves penalised.

A crucial aspect of devel-oping economies, which should betaken into account, is the informalor 'non-structured' sector. It is esti-mated that this contributes 30% ofBurkina Faso's GDP and providesabout three quarters of urbanjobs. Its importance also derivesfrom the fact that it is a reservoirfor small business creation. Mostinputs used by small 'non-struc-tured' firms are imported by theformal sector. This means that thefate of small-scale businesses de-pends on local importers, as wellas on import tax levels and prevail-

ing costs on the international mar-ket. There is no doubt that, sincedevaluation, company profit mar-gins have dropped, with most busi-nesspeople forced to cut their mar-gins. They have sought to hold onto their customers by raising pricesonly very slightly.

The more that one ac-knowledges the importance of theinformal sector, the more onemust recognise that certain smallbusinesses have been weakened bydevaluation. Higher productioncosts and bigger debts have boost-ed the need for working capital.Given that small businesspeoplefind it difficult to secure normalbank loans, the answer appears tolie in external loans.

The problem of theprivate sector

To face up to its economicproblems, and in the context ofstructural adjustment, BurkinaFaso’s government is trying to givethe private sector new impetus.

The sector's development is subjectto a number of inherent con-straints – in particular the absenceof an overall national strategy,and an uninspiring economic andlegal environment. Another prob-lem is the lack of vocational train-ing. Training structures are inade-quate and many entrepreneurslack management skills. And, asmentioned, it is difficult to gainaccess to bank credit even thoughthe country's banking sector is inexcellent health (the two mainbanks are in a state of permanentexcess liquidity). But these finan-cial institutions pay scant attentionto the small-business sector, forc-ing some small firms to seek loansfrom other bodies or through spe-cific projects that specialise inmicro-finance and training sup-port.

Donors’ interventionstrategies

Promotion of the privatesector is of increasing interest todonors, and nine external agen-cies, both bilateral and multilater-al, are involved (Germany, Austria,Canada, France, Switzerland, theWorld Bank, the EU, UNIDO and

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* Researcher in the field of development.

Manufacturing improved earthenware ovensin Ouagadougou.

Small businessmen find it difficult to securebank credit.


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the UNDP). These donors have sev-eral strategic options available tothem, including the following:

– Support in defining, coordinat-ing and implementing policies todevelop the private sector;

– Institutional reforms or back-up;

– Reform of the financial sectorand the promotion of credit;

– Boosting the country’s capacityto disseminate information andpromote trade and investment;

– Access to and promotion of voca-tional training;

– Support for professional associa-tions and for business-support ser-vices;

GermanySince 1988, the German technical cooperationagency (GTZ) has been involved in a project to de-velop a framework for promoting the non-industri-

al sector and SMEs. The support is channelled throughthe Directorate which is responsible for this area in theMinistry of Industry, Crafts and Commerce. The objectiveis to establish a macro-economic national promotionstrategy. The Craft Workers’ Advice and Support Bureauxof Ouagadougou and Bobo-Dioulasso are also involved,targeting more specific aspects. These include: the manu-facture and marketing of products; professional improve-ments; accessing technical data; obtaining finance; sup-port for female craft workers; and assistingrepresentative bodies in the non-industrial sector, andtrade associations, to organise themselves.

CanadaThe Ouagadougou Small-Business Support Cell is a pro-ject financed by the Canadian International DevelopmentAgency and implemented by Desjardins International De-velopment. Its aim is to provide assistance in developingmodern SMEs and SMIs. The sectors which benefit areagricultural production and food-processing, textiles andready-to-wear clothing, carpentry, industrial mainte-nance, the environment/clean-up projects, tourism andleisure. Businesses wishing to work with the Cell mustemploy between five and 50 people, be registered withthe National Social Security Fund, have a turnover of be-tween CFAF 5m and CFAF 200m, possess a basic account-ing structure, and already have infrastructures in place.The Cell seeks to provide technical training for staff, setup a modern management system, support the establish-ment of financial dossiers, provide ad hoc monitoring andadvice, and facilitate access to bank credit (through aguarantee fund covering 50% of initial risks).

The European UnionThe Small and Medium-Sized Business Support Projectaims principally to support the emergence and/or devel-opment of viable SMEs and SMIs with a view to creatingjobs. The project is implemented under the auspices ofthe Industry Ministry. It is involved mainly in agrifood-stuffs, the export of finished or semi-finished goods (in-cluding artistic or utilitarian non-industrial goods), min-

ing and industrial production. Any Burkina Faso national,whether individual or company, can submit an applica-tion for aid. The project helps businesspeople to draw upfinance application dossiers, provides them with appro-priate funding, and offers preliminary training, regularmonitoring and support/advice.

UNIDOIn collaboration with the Agency for Cultural and Techni-cal Cooperation, the United Nations Industrial Develop-ment Organisation has set up a project to assist small andmedium-sized businesses and industries. It covers bothnew investment projects and modernising or overhaulingof existing businesses. Through the project, UNIDO un-dertakes project reformulation, helps promoters in theirfinance applications, supports partnerships and facilitatesacquisition of suitable technologies. Its work also involvesmobilising guarantee funds and training executives intechniques designed to promote the private sector and tocreate suitable partnerships.

SwitzerlandSwitzerland is involved in private sector support throughthe Burkina Faso Craft-Sector Promotion Programme. Thisprogramme is financed by the Swiss Development andCooperation Directorate, working in collaboration withthe National Office for the Promotion of Employment inBurkina Faso and with craft-sector organisations. In theshort term, the PAB aims to help people become finan-cially and technically independent. More broadly, it facili-tates the emergence of autonomous craft or business as-sociations. The objectives are: to help the utilitarian craftsector organise itself through the development of associ-ations, to enable craft workers to control their own eco-nomic and administrative environment, and to encouragethe emergence of small businesses. To this end, the Con-sultancy Bureau is involved in actions in the economicand financial fields, offering ongoing support and adviceon workshop management. The Bureau also facilitatescontact with financial institutions. In the technical field, itprovides training in production techniques and newproducts, and promotes research into new markets.Under the programme’s influence, a number of people inthe craft sector have been able to form associations witha view to setting up their own self-managed savingsfund.

Two favoured options: vocational training and the financial sector

– Development of micro-businessesand small and medium-sized firms;

– Sector-based initiatives.

Five donors are involved inactivities relating specifically to thefinancial sector and vocationaltraining (see box) while the restare helping private sector develop-ment in other areas mentionedabove. This is proof, if any wereneeded, of the high priority nowbeing given to private sector de-velopment. However, it would ap-pear that each donor has its ownvision of development. Conse-quently, there is a degree of con-fusion, and the small-business op-erator in Burkina Faso may beunsure which programme suits him

best. What is needed is greaterconsultation among the donorswith a view to establishing a prop-er balance. This would help indefining a coherent conceptualframework of intervention for thepromotion of the privatesector.■ T.D.C


Encompassing a wide varietyof ecosystems from rainforests to deserts, SouthernAfrica is particularly rich inbiological diversity. In fact,the density of different plantspecies in just Lesotho,Swaziland and South Africais twice that of Brazil, fourtimes higher than the USAand six times that of Sudan.One of the reasons SouthernAfrica is so rich in species isthat it has a variety of land-

scapes and environmental condi-tions. These differences are largelybased on varying rainfall intensityand distribution, as well as the un-derlying soils and geology of eachregion. The ecosystems found inSouthern Africa include forests, sa-vannahs, wetlands, grasslands, man-grove swamps and marine environ-ments.

The region has developedpolicies to combine nature conserva-tion with sustainable human devel-opment in rural areas, closely involv-ing the people who live there.Assisted by regional and internation-al NGOs, a number of community-based conservation and develop-ment programmes, includingCampfire in Zimbabwe, LIFE inNamibia, ADMADE in Zambia andChobe Enclave in Botswana, havebeen developed over the lastdecade. With these successfulschemes, based on communitywildlife management, game ranch-ing, and sport hunting, the biologi-cal diversity of the region, and inparticular its wildlife, has become aproductive asset.

From these encouraging ex-periences, NGOs and community-based organisations (CBOs) are try-ing to extend the scope ofprogrammes to include the market-ing of natural products from the re-gion's sparsely-wooded grasslands(known as the veld), and communityeco-tourism. Both sectors have verysignificant market potential for ruralcommunities in the region.

The veld has more than 100indigenous plants as well as otherresources that may be marketable.The marula fruit, for example, whichis a member of the mango family,contains four times more vitamin Cthan orange juice, and can be madeinto a liqueur, a fruit drink, beer orjam. If this and other products suchas those listed in the box can gainaccess to regional and internationalmarkets, prices will be boosted tothe benefit of the communities thatharvest them.

Eco-tourism is the other areathat offers important economic po-

tential for local people. Internation-al tourism trends suggest thattoday's traveller is looking beyondthe conventional 'sun and sea' vaca-tion and seeking a more enrichingexperience. Southern Africa is well-placed to take advantage of thiswith its wild resources, attractivelandscapes and distinctive culturalheritage. The approach includes anincreasing emphasis on recognisingpeople's resource rights and devel-oping enterprise opportunities.

Genuine eco-tourism thushas the potential to be a powerfultool for rural development in South-ern Africa. Indeed, it is the fastest-expanding tourism sub-sector – withan estimated growth rate of 10-15%a year. When it is well-managed,eco-tourism creates jobs, stimulateslocal economic activity and promotesconservation as well environmentalawareness.■ A.R.T.

Marketing veld products andeco-tourismNew opportunities for the rural economyin Southern Africaby the Africa Resources Trust*

Ecotourism in the Okavango Delta, Botswana.A potentially powerful tool for rural

development.

* NGO based in Harare, Zimbabwe, whoseobjective is rural development through the sus-tainable use of natural resources.

Products with potential•Marula fruit•Grapple plant – used in herbalremedies•Cochineal – a red dye used infoods and fibres•Ostrich eggshells

•Indigenous woods – for craft products•Natural gums•Spring water – for bottling•Morame nuts•The mopane worm – high in proteinand traditionally important in South-ern African diets

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An eclipse of the sun, like the oneseen across the Caribbean duringour recent visit to the region, is self-evidently a passing phenomenon.Arguably, the economy of Trinidadand Tobago is now emerging fromits own, somewhat lengthier,eclipse. On the back of the 1970s oilboom, the country raced ahead eco-nomically. Then collapsing oil pricescast a pall of gloom which was tolast several years. Today, theprospects look a lot brighter eventhough petroleum remains themainstay of the economy and oilprices are still low. There are variousreasons for the optimism – an im-pressive growth rate, a new entre-preneurial spirit and good prospectsfor developing gas production,tourism, agri-processing, and lightmanufacturing.

One of the most advancedACP states in GDP per capita terms,Trinidad and Tobago nonethelessvalues its EDF grants and tradepreferences. At the same time, itssights are set on regional markets;Caricom, Mercosur and the widerAssociation of Caribbean States. Inthe driving seat is Prime Minister

Basdeo Panday, who faces somecriticism from the oppositionabout alleged favours for his ownsupporters. It seems that the racialdivision of the country betweenthe East Indian and Afro-Caribbean communities remains apolitical issue, despite the fact thatthe two groups appear to live har-moniously together.

Whilst the oil boombrought a standard of living abovethat of many other Caribbeanstates in the 1970s, the well knowncalypsonian, Mighty Sparrow,drew attention to its downside inhis song ‘Capitalism gone mad’.

‘It’s outrageous and insane

The crazy prices here in Port ofSpain...

Where you ever hear a televisioncost seven thousand dollars

Eighty to ninety dollars for motorcars

At last here in Trinidad we see cap-italism gone mad.’

While there is a generalupbeat feel to the economy, withnew areas being developed, some-thing of what Mighty Sparrow hadto say still strikes a cord. Unem-ployment has dropped, but re-mains high, at around 16%. Aclimb up the hills surrounding Portof Spain to Laventille is instructive.Here the corrugated iron outerwalls of the buildings, and wornroads, provide a stark contrast tothe well-to-do residential areasfurther down the hill.

In 1992, according toDaphne Phillips, Minister for Com-munity Development andWomen’s Affairs, 35% of the coun-try's inhabitants were found to beliving below the poverty line ofTT$625 a month. She spoke to usabout the many problems linkedto the rate of economic develop-ment. 40% of families are singleparent units and many womenfind it difficult to find time forboth training and looking after afamily. She was, therefore, particu-larly pleased with a recent EUgrant to help women train to setup small businesses, adding thatshe would welcome further sup-port for homework centres forchildren of working women. Fur-ther worrying societal problemsare drug use, rising crime and a re-cent spate of suicides, she told us.And there are a growing numberof elderly people to be cared for.According to Finance Minister,Brian Kuei Tung, the governmentis now acting on the pensionsfront, aiming to establish a statepension of TT$525 per month bythe end of next year – putting italmost on a par with the 1992poverty threshold!

The EU is also trying tohelp some of the less developedregions of the country with ruralelectrification projects in areaswhere the state electricity compa-ny, T. & TEC, would not otherwiseconsider it viable to connect con-sumers. The second phase of thisproject (run with T. & TEC) is dueto be completed in 1998 and willbenefit some 664 households. Buteven in the poorer areas, there aresome surprising features. BrassoSeco for example, a remote villagein the far north of the country –which benefited from Phase Oneof the EDF electrification project –

Trinidad and Tobago

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Twin-towers in Independence Square, housing keygovernment departments and financial

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boasts its own public telephoneboxes.

The country also has thehighest car ownership in theCaribbean – and one of the tenhighest in the world – according tothe government-sponsored Envi-ronmental Management Authority(EMA). The downside of this isharmful vehicle emissions – blacksmoke, carbon monoxide, lead andparticulates – which need to betackled. EMA is leading a cam-paign to switch to unleaded fueland is organising spot checks oncars in a campaign to reduce pollu-tion.

Despite the traffic conges-tion, Port of Spain is a pleasant, vi-brant city. This is one of the mainselling points in the drive to at-tract overseas investors. The im-mense Savannah Park, dubbed the‘biggest roundabout in the world’(the one-way system round thepark is over five kilometres), is anenormous green space used foreverything from Carnival to crick-et. The Edwardian buildings nowhousing government departments,schools and the Archbishop’shouse, are known locally as ‘themagnificent seven’. And there areplans to make the city more attrac-tive according to Planning Minister

Trevor Sudama, who spoke to usabout a project to redevelop thecapital's waterfront. This is expect-ed to include the Headquarters ofthe Association of CaribbeanStates (ACS), as well as conferenceand hotel facilities.

Political frictionOn the political front, the

party in government, the UnitedNational Congress (UNC), seems tohave consolidated its position sincethe 1995 election. This is mainlydue to two defections from theopposition’s People’s NationalMovement (PNM) which tied 17/17with Basdeo Panday’s UNC at thelast election. After declaring them-selves independents in February1997, the defectors were appoint-ed by Mr Panday as ‘ministerswithout portfolio.’

There has also been someturmoil in the ranks of the Nation-al Alliance for Reconstruction(NAR), whose two parliamentari-ans from Tobago went into coali-tion with the UNC after the 1995poll. The nomination of one of thetwo, former Prime Minister andpolitical veteran A.N.R. Robinson,to the country's Presidency,prompted a by-election in his To-bago seat. A new NAR memberwas duly elected but caused wavesin his party by accepting the postof minister for Tobago withoutany consultation with NAR offi-cials. The party's other M.P. has

also distanced herself from theNAR organisation.

These events have led toaccusations from both the PNMand NAR that the administration istoo fond of using ‘political patron-age’ (see interview with PatrickManning). The NAR Secretary Gen-eral, Nizam Mohammed, furtherclaims that issues of ethnicity andrace involving the East Indian andAfro-Caribbean communities havebecome more accentuated sincethe new government came topower. He said his task was to re-vive the NAR, with the aim of mak-ing it a ‘truly national party’.

The government's politicaladversaries claim that there is fi-nancial mismanagement andnepotism in government when itcomes to awarding public con-tracts. The press has publishedmany column inches on this sub-ject in its editorial pages (thenewspapers with the largest circu-lation are the Trinidad Express andTrinidad Guardian). This is despitea question mark over press free-dom. In 1996, 13 editors and jour-nalists on The Guardian lost theirjobs following the publication of anumber of ‘controversial’ articles.

Woodford Square

Trinidad and Tobago has,nonetheless, a long history of


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Power to the people?EDF-supported electricity distribution.

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Traffic on the one-way system aroundSavannah Park.


open public debate. One of themost famous landmarks is Wood-ford Square in the centre of Portof Spain. This is effectively the'birthplace' of the PNM. EricWilliams, who founded the party –and dominated the country’s poli-tics for many years – held many ofhis rallies at this spot. The ‘Univer-sity of Woodford Square’ is still aplace where people gather to dis-cuss anything under the sun – bothliterally and figuratively! The focalpoint is a blackboard upon which athought for the day is chalked.When we visited, the topic was theeclipse of the sun mentioned earli-er (sadly obscured by cloud inTrinidad). The following day, par-ticipants were due to be broughtdown to earth – with a discussionon death! We suggested to Riccar-do Welch alias 'Dr Carlos', whoseems to preside over the dailymeetings, that the future ACP-EUpartnership might merit a place ontheir 'agenda'.

Despite Trinidad and Toba-go's higher per capita income com-pared with other ACP states, manypoliticians here value the grantsmade available under the EDF forareas such as the aforementionedrural electrification, structural ad-justment, the fight against drugsand AIDS prevention. Not every-one is enthusiastic though. GeraldPemberton, Chief Executive Officerof Development Finance Limited,felt that a system geared towardsgrants did not encourage a cultureof self-help. His company, whichprovides corporate services, riskcapital and financial advice, has at-tracted European Investment Bankloans.

The EU has tried to supportthe country’s regional focus withproject aid. For example, a granthas been given for the construc-tion of facilities at Trinidad andTobago’s Augustine Campus of theUniversity of the West Indies. Pro-Vice Chancellor, Compton Browne,said that a new building housingrecreational and study facilities atthe campus, would improve thetime spent in Trinidad and Tobagoby students from elsewhere in theCaribbean including the other UWIcampuses in Barbados and Ja-maica. He added: ‘We would alsolike the EU to participate in a facil-

ity for video conferences for dis-tance education.' Likewise, Roder-ick Sanatan of the CaribbeanTelecommunications Union saidthat the EU had provided moneyto enable regulations to be drawnup for his organisation, which issupporting the growth of telecom-munications Caribbean-wide. Theindustry’s value-added and dataprocessing services had a particu-larly good future, he said, andwould be attractive for Europeaninvestors.

Regional ambitionsIt was the Energy Minister,

Finbar Gangar, who first drew ourattention to the country’s interestin the Latin American market.‘That’s where we have our eye on,’he said, glancing across at a hugemap of the region pinned on onewall of his office. Foreign MinisterRalph Maraj, confirmed this grow-ing interest in developing econom-ic links with Latin America moregenerally and the MERCOSUR re-gion (South America) in particular.‘What we are doing bilaterally,and multilaterally through Cari-com, is to enter into tradearrangements to maintain marketaccess for Trinidad and Tobago.We feel this is critical to augment-ing the attractiveness of our coun-try as a location for investment.’He continued: ‘One of the factorsthat mitigates against developingtrade ties with some of the othercountries in the region is the lackof transport infrastructure. As partof the English-speaking Caribbean,Trinidad and Tobago has tradition-ally focused on the North Ameri-can market. We have been livingside by side with our Latin Ameri-can neighbours without develop-ing strong ties.’

Prime Minister Panday re-cently visited Mexico to strengthenbilateral links, although talksabout a wider NAFTA free trade,which originally attracted Trinidadand Tobago’s attention, haveslowed down. Looking furtherafield, President Masire ofBotswana was recently in thecountry to explore bilateral links.To this end, Mr Maraj spoke of thepossibility of a stopover in Trinidadand Tobago for a Johannesburg-Miami flight which currently pass-es directly over the Caribbean. We

also spoke to Felipe Noguera ofthe Trinidad-based Caribbean As-sociation of Industry and Com-merce, a lobby for the region’s pri-vate sector, which has recentlyhelped to arrange a Cariforumtrade mission to South Africa. Hefeels that Trinidad and Tobagocould use its position as a wealthystate to stimulate regional growth– stressing that this process shouldinclude Cuba.

As for the partnership withthe EU, Mr Maraj felt that with theexception of sugar, the range ofLomé trade preferences had notbeen fully exploited. He stressedthat it was important to attract Eu-ropean investment to Trinidad andTobago and to increase trade withthe 'old continent' which is cur-rently at a fairly low level. He hasrecently set up a special Europeunit inside the Foreign Ministry forthis purpose.

He also gave unqualifiedsupport to other Caricom stateswho are battling to defend theirLomé benefits. Whilst Trinidad andTobago was in the ‘fortunate posi-tion of having fantastic gas re-serves’, he made a plea on behalfof his Caricom partners, and no-tably the banana-producing coun-tries. ‘The notion of a level playingfield is a myth and a dangerousway to go,' he insisted. 'In ourview the World Trade Organisa-tion needs to become more sensi-tive to the smaller economies. Itcannot operate on the basis thatall countries' economies are on anequal footing. There has to be arealistic understanding of the dif-ferences that exist if the strong arenot to get stronger and the weak,weaker.’ He argued, in particular,for a 'special track' for states thatare heavily dependent on singlecrops or industries.

Mr Maraj was also un-equivocal in his support for keep-ing the ACP group intact. ‘It is avery good example of coopera-tion', he stressed. 'There are noother economic arrangements inwhich North-South dialogue isstructured in this way. He conclud-ed: 'With regionalisation leadingto differentiation, you may end updestroying the excellent founda-tions already in place – instead ofbuilding on them'.■ D.P.



Basdeo Panday is Trinidadand Tobago's first leader ofIndian descent. A lawyer andtrade unionist, he has beeninvolved in politics for manyyears. Formerly deputy PrimeMinister in the 1986 govern-ment of the National Allian-ce for Reconstruction, in1989, Mr Panday led a splin-ter group of NAR membersto form the United NationalCongress. In the 1991 elec-

tion, won by Patrick Manning’sPNM, his new grouping captured 13seats. This figure rose to 17 in thesnap election called by Mr Manningin 1995. Although the UNC actuallypolled fewer votes than their PNMrivals, Mr Panday was able to takeover the reins of government thanksto the support of the two NAR re-presentatives from Tobago. In ourinterview , he outlines an ambitiouseconomic and social programme ap-plying the economic theory of TotalQuality Management (TQM) to therunning of the country.

Unemployment fell from17.2% in the 1st quarter to 14.5%in the 2nd quarter of 1997. This isthe lowest rate for 13 years. It isthe result of effective and sustainedgovernment policy. The construc-tion industry had the greatest im-pact on the total number of jobscreated, while the services sectorcontinued to do well. Growth inagriculture has also been signifi-cant: last year, farm exports contri-buted some $823 million to theeconomy. Meanwhile, food im-ports fell by more than 3% in thefirst quarter of 1997 compared tothe figures for the same period in1996. In addition, 1997 was charac-terised by people returning toagriculture – we were able to at-tract some 3,000 people back intothis sector last year.

Legislatively, work hasbeen going on to provide an en-abling environment. Examples in-clude the Land Surveyors Act andthe Fisheries (Conservation of Ma-rine Turtles) Regulation whichhave been amended. In addition,we have strengthened intellectualproperty rights. This is a prerequsi-te to entry into the North Ameri-can Free Trade Area (NAFTA).

We have recognised thattechnology is one of the drivingforces behind trade, to increase in-ternational competitiveness andboost national income. We alsohave a skilled, technology-awarepopulation. And there have beenincentives to employers to createnew jobs. In 1997, a bilateral in-vestment treaty was signed withthe US which should trigger invest-ment flows of more than US$1 bil-lion a year to Trinidad and Toba-go. Similar treaties were signedwith Canada, the United Kingdomand France, providing investorswith additional security for themoney they put into our economy.

The Government has devi-sed a strategy to make Trinidadand Tobago the most competitivedestination for investment fundsfrom around the world. Amongthe critical elements of the strate-gy are a reduction in customs du-ties, liberalisation of the foreignexchange regime, removal of non-tariff barriers and privatisation ofstate enterprises. Other aspects in-clude; the revision of investmentlegislation, the provision of fiscalincentives for investors and localexporters and reduced direct taxa-tion. Trinidad and Tobago’sunique location between the Ame-ricas makes it attractive as a busi-ness centre. At present, there are150 multinational corporationshere of which 50 are US compa-nies.

As part of the reform pac-kage, legislation was introduced toensure that the financial and in-vestment sectors are more compe-titive, better capitalised and pro-perly regulated. For example,legislative amendments to facilita-te foreign investments have beenmade to the Foreign InvestmentAct, Securities Industry Act, Finan-ce Act and Intellectual PropertyAct.

In Trinidad and Tobago,we have a highly-literate and wellqualified workforce, a moderncommunications network, sea-

The target – a 'totalquality nation'

Interview with Prime Minister,Basdeo Panday

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■ Trinidad and Tobago has somegood economic indicators withpredicted growth of almost 5% in1998. This contrasts with the nega-tive figures recorded at the begin-ning of the 1990s. To what can thisbe attributed?

– Our country continues tobenefit from an investment-led ex-pansion taking place in our gasand petrochemical industries. In1996, Trinidad and Tobago attrac-ted US$4 billion in foreign invest-ment commitments. And at theend of 1996, a growth rate of3.1% was recorded in the non-oilsector. The success here was mainlyin the services and manufacturingsub-sectors where some 12,000jobs were created. There was alsoa 1.7% increase in petroleum pro-duction. Inflation in this periodwas kept down to 3.6%.



ports, airports and infrastructure,and specially designed Free Zones.Taken together, these represent astrong foundation for sustainedeconomic growth.

■ Arriving in Port-of Spain, youhave the impression that this coun-try is doing very well. Yet there areclearly pockets of poverty. What isthe government doing to preventthe poor from being excludedfrom economic growth?

Investment gains are nottrickling down to the large sec-tions of the population that arepoor. In order to induce this trick-le-down effect, several steps havebeen taken, for example, a mini-mum wage of TT$7. We have alsoallocated $20 million to help singleparent households. Other socialdevelopment projects are directedtowards improving adult literacy,and providing loans for self-helpprojects and community agricultu-ral schemes.

In the Ministry of SocialDevelopment, there is a unit calledthe 'Change Management Unit forthe Eradication of Poverty and

Equity Building'. This was set up toassist the rural and urban poor insustaining themselves. In addition,my Government is stressing that, inorder for us to move forward as anation, our people must be givenan education. Many adult educa-tion programmes have been set upthroughout the country.

■ Given all the activity in the oiland gas industry, there are thosewho would argue that the coun-try's economy should be doingeven better than it is.

– Although we are expe-riencing an investment-led expan-sion, the structural elements nee-ded to sustain levels of highgrowth in the wider economy, andadd new economic value to therest of our productive system, arestill being shaped. A particular de-velopment challenge for us is toenhance our capacity at the 'micro'level.

■ Voting along ethnic lines stillcharacterises politics in Trinidadand Tobago. Does this hamper thecountry’s economic and social de-velopment in any way?

– As a plural society, raceplays a significant role in votingpatterns. But I do not believe thatvoting along ethnic lines will ham-per the social and economic deve-lopment of the country. My go-vernment is one of national unity.There is a place for every creedand race. There are many raceshere. We form a large callaloo1 ormelting pot. On March 13 thisyear, the Equal Opportunity Billwas tabled in Parliament. The jour-ney has been a long one. I workedfor that day for over twenty years.In fact, the journey effectivelybegan on August 31, 1962 whenwe achieved our independence.Trinidad and Tobago's most fer-vent hope – and its most vital im-perative – is expressed in our na-tional anthem which says: ‘Hereevery creed and race, find an equalplace’. At the time that was writ-ten, it wasn't a statement of factbut an expression of intent – an as-piration.

That prayer and pledgewill always be foremost amongour national objectives. There hasnever been a period in my lifewhen I was not, in some manner,in some sense, engaged in thestruggle for equity, social justiceand the economic enfranchise-ment of the poor in our society. Itshould be be noted that the title –and thrust – of the Finance Minis-ter's 1998 budget statement was‘an opportunity for all.’ Althoughit has been the tradition to votealong ethnic lines, the race of theparty in power – at least of thisparty in power – will not be a fac-tor influencing the developmentof the nation and of the people.

■ Are you satisfied that thegovernment’s slim majority willhold until the next election in2001?

– My government hasbeen in office for a little over twoyears. So far, we have been able toattract a considerable amount ofdirect foreign investment – in factthe largest injection of DFI in theLatin America area. We have beenable to put into place a law enfor-cement action plan to combat therising levels of crime – burglaries,thefts, drug trafficking and otherdrug-related crimes. And my focuscontinues to be on education andhealth care. I have struggled for al-most 30 years for the poor and willcontinue to do so. We have notachieved all that we want, but ittakes time to put things in place.The target is to lay the founda-tions for a 'Total Quality Nation' inTrinidad and Tobago by 2001.Then it will be up to the people tochoose.

■ What are the key policies thegovernment would like to imple-ment between now and then?

– As I said, there is still somuch that must be done. Howe-ver, there are three issues whichare of immediate concern to me,which I would reiterate. I haveadopted, and have encouragedthe people to adopt, an attitudeof zero tolerance against drugtrafficking and drug-relatedcrimes. Recruiting more people tothe police won't be enough on itsown if we do not stand firm as asociety against such practices. Se-

The flag of Trinidad and Tobago flies outside theMinistry of Finance.

'There is a place for every creed and race'.

1 Callaloo is a dark green soup which is oneof Trinidad's culinary specialities. It has a varie-ty of ingredients, hence the use of the word todescribe the country's rich ethnic mix. Everyhousehold has its own special recipe.Th

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cond, the concept I have just men-tioned of a 'Total Quality Nation'is very dear to my heart. I believethat to achieve this, we must firsthave 'total quality' people. I wouldlike to eradicate poverty, and theonly solution here is to provide ourpeople with permanent, well-paidjobs. To reach this goal, they mustfirst have a chance of education atall levels – and they should be ableto do so at any time. The thirdarea of primary concern is the na-tion's health. In the past, peopleoften suffered because they couldnot afford medical care. I intend tomake it more readily available tothe people.

■ What areas of the economy doyou think could be better develo-ped? I have been told there areplans to turn the country into abanking and financial centre, andthere is a lot of talk about boos-ting tourism.

– The Government is wor-king to make Trinidad and Tobagoa global centre for excellence, andto instil in the population a pas-sion for quality in all that we do.We are implementing plans to di-versify the economy and reduce itsreliance on the energy sector, andthis is already proving successful.The country's GDP is going up des-pite a steady fall in crude oilprices. This is a sign that depen-dence on the energy sector is de-creasing.

We are also in the processof drafting an entirely new Forei-gn Investment Promotion Bill – alaw that will further liberalise thecountry’s already liberal rules forthe participation of overseas inves-tors in the economy.

In March, I will be atten-ding the Hotel and Tourism Invest-ment Conference in Ocho Rios, Ja-maica. We are making a seriouseffort to develop our tourism po-tential. Already the Tobago Hiltonis on its way and the Marriot andFour Seasons hotel groups will becoming soon. We don't just wantto sell the sun, sand and sea of To-bago, but also business tourism. InTrinidad, for example, there is thePoint Lisas industrial area housingthe ammonia, iron and steel, urea,methanol and petrochemicalplants.

We are also preparing forthe Free Trade Area of the Ameri-cas (FTAA) which is scheduled totake effect in 2005. Our approachto these negotiations has been toposition Trinidad and Tobago asan equal partner in the hemisphe-re, based on policies of social andeconomic competitiveness. Inves-tors will be able to take advantageof downstream industries. Thereare also opportunities in areas

such as agricultural processing,software development, engineer-ing, data-entry, boat building andrepair, yacht-related facilities, ma-rinas, tourism and entertainment.

■ Given your trade union back-ground, do you feel that global li-beralisation could have adverseconsequences for jobs in Trinidadand Tobago, and more generally,in the Caribbean's small islandstates?

– The government's policyhas been to support the ideal andprinciples of free trade as an ob-jective consistent with our mem-bership of the World Trade Orga-nisation. And as I said, we areparticipating actively in the pro-cess leading to the formation ofthe FTAA. The FTAA will be thelargest free trade area in theworld stretching from Canada inthe North to Tierra del Fuego inthe South, with a market of morethan 450 million people. We arealso seeking an associationthrough MERCOSUR with Brazil,Argentina, Uruguay and Paraguay.

We are mindful, however,of the developmental challengesconfronting small economies likeours that are especially vulnerableto international economic cur-rents. The other Caribbean smallisland states are in a similar posi-tion, though it should be notedthat they have different economicstructures. It is even more necessa-ry for them to diversify if they areto survive in a global environment.

I think it is important notmerely to promote free trade, butalso to foster trade that is fair. It is,therefore, imperative that a reaso-nable time be allowed for us tocomplete the economic reformsneeded for us to participate fullyin liberalised trade.

The FTAA will offer the pos-sibility of enhanced market accessfor Trinidad and Tobago's exports,and create the potential for higherlevels of inward investment. Ourlocal manufacturers and exportersare rising to the challenge of globalcompetitiveness. Meanwhile, wenow have a minimum wage of TT$7a day which should safeguard ourlabouring class.■ Interview by D.P.

Young Trinidadian entrepreneurs running arefreshment kiosk in Port of Spain.

'A particular development challenge for us is toenhance our capacity at the 'micro' level.'

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The energy sector(oil and gas) accounts for26% of GDP and 65% offoreign exchange earnings,according to Energy Minis-ter, Finbar Gangar. Theeconomy suffered a setback

in the early 1980s when interna-tional oil prices fell sharply. Al-though there has been a progres-sive decline in output over theyears from 235,000 barrels a day to125,000 barrels (the figure in the1998 budget), Mr. Gangar spoke ofturning things around. ‘Since thegovernment came to power in1995, we have embarked on a veryaggressive exploration programmeto find more oil and gas,‘ he toldThe Courier at his office in Port ofSpain. Oil reserves currently standat around 10 years and those ofgas at 30 years. Mr. Gangar said hehoped these figures would doublein the next five years.

In the oil sector, 13 produc-tion-sharing contracts have beenawarded over the past two years,including some off the East coastin very deep water of over 1000metres. Shell has been allocatedone of these blocks in a venturewith Agip which has a 40% stake.A seismic survey is underway to as-sess the reserves with the aim ofstarting up drilling activities nextyear. According to Luuk Karsten,Managing Director of ShellTrinidad, under the production-sharing arrangement, ‘the compa-ny runs all the risks, with no guar-antee of finding oil at the end ofthe day’. The contract also pro-vides for up to seven scholarshipsof US$20,000 to be awarded toTrinidad and Tobago nationals forstudies in the petroleum sector.

Shell was present in thecountry in the 1960s, leaving in1974 when the Government tookover its oil production. During the1990s, however, it has progressive-ly extended its business in Trinidadand Tobago and now it wants toget more involved on the gas side– like many other overseas compa-nies who started out in oil. Themarket leader is the American oilgiant, Amoco, which has been inthe country for the past 26 years. Ittoo is keen to increase its gas busi-ness, now that its oil productionhas fallen. In the last four or fiveyears the company has been ex-tracting between 55,000 and65,000 barrels a day – less thanhalf the amount it produced at itspeak.

‘Since 1978, we have beenfinding less oil and more gas,’ MrGangar told us. ‘This sector is look-ing increasingly promising and hasnow surpassed oil with growth ofbetween 15% and 20% per year.Initially, in the late 1970s, weflared the gas. It is much more dif-ficult to commercialise in devel-oped markets. Oil can be loadedinto a tanker and sold anywhere inthe world; you cannot do the samewith natural gas. It has becomepopular though, for a number ofreasons. The main one is that it is aclean-burning fuel which is envi-ronmentally friendly. The chal-lenge our country faces – whichwe are managing very well – ishow to monetise our hydrocarbonresources. The solution has been tobranch into petrochemicals, am-monia, methanol and liquefiednatural gas (LNG) in which there iscurrently a lot of investment. Thisincludes since 1996, the biggest

construction project underwayanywhere the Caribbean to devel-op LNG at Point Fortin. By the firstquarter of 1999, the country isaiming to export LNG to PuertoRico, Spain and the USA.' Mr. Gan-gar believes that: ‘With the currentrate of construction, we could be-come the world’s largest exporterof methanol and ammonia by theyear 2000.’

One gas company lookingto increase its already sizeable in-terests in Trinidad and Tobago isBritish Gas. It first acquiredacreage back in 1990. ’We believethere is real potential to expandgas in Trinidad. ‘said the compa-ny’s local manager, Simon Bonini.‘It has a good reserve base and ex-cellent potential for export ofchemicals, methanol, urea and am-monia to North America’. BritishGas invested in the Dolphin plat-form off the East coast in 1996 andit has a stake in the LNG construc-tion plants in Point Fortin. It is alsoinvolved in exploration off thenorth coast, in a consortium withItaly’s Agip and the German firmDeminex.

Mr. Gangar also pointed tothe potential for ‘downstream ac-tivity’ in the shape of a metals in-dustry, with the gas being used forsmelting. There is serious talk ofbuilding an aluminium smelter.Transhipment also has potential.All in all, investments in the ener-

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The flurry in construction of plush modern buildings and shoppingmalls in Port of Spain is perhaps one of most visual signs of the 5%GDP growth posted for this year. It follows several difficult years ofplunging oil prices at the end of the 1980s and early 1990s. The ener-gy sector remains the engine of economic growth, but it is no longersolely petroleum. Gas is now poised to overtake oil in firing theeconomy. In parallel with energy, the government wants to developthe country’s as yet untapped potential in areas such as light manu-facturing, tourism and data processing. At the same time, a structur-al adjustment programme, including divestment of some state-owned enterprises, is being implemented.

Growing economy.This is a new housing development on the

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gy sector – both 'upstream' and'downstream' have amounted toUS$3bn over the last two years, wewere told by the Energy Minister,and the figure is expected to reachUS$5bn by the end of the century.

Structural adjustmentWhat Finance Minister,

Brian Kuei Tung has dubbed a‘painful structural adjustmentprocess’ has also helped the climbback to positive growth. Assistancehas come here from InternationalMonetary Fund and EuropeanUnion funding of General ImportProgrammes.

The structural weakeningof the economy began with the oilprice drop in the 1980s. ’But in re-cent times', said the Finance Minis-ter, 'because of the painstakingapproach we have taken to re-building, we are beginning to seethe fruits of our efforts’.

He continued: ‘One prob-lem is that we tried to go for a softlanding and used a great deal ofour reserves to cushion the blow.Going into the 1990s, this meantthat we effectively had to rebuildour economy from scratch. Itmeant adjustments to labour costswhich went out of control duringthe boom years. We used our for-eign reserves to maintain the stan-dard of living. In the past, we alsospent a lot on financing the lossesof state companies, because wefelt that jobs were important. Weare now embarked on a new ap-proach. We have adopted a policythat unless something is strategi-cally vital to our economy, we donot think it is critical for the gov-ernment to remain involved. Wehave divested some of the enter-

prises that were not essential tohelping us rebuild the economy.’

Mr Kuei Tung said that anumber of state enterprises re-mained as candidates for divest-ment. He mentioned, in particular,the state's 51% share in the flourmills and the publicly-owned sugarcompany, Caroni (see box). At thesame time, he noted, 'we still owna lot of development companiesthat are strategic to us and per-haps we may have to retain these.’

Diversification

Mr. Kuei Tung is particular-ly pleased with growth outside theenergy sector, notably in the agro-processing industries, telecommuni-cations and tourism. He recognises,nonetheless, the country’s continu-ing vulnerability to oil prices. Thisyear, it had been necessary todraw on reserves because the bud-get had been based on an oil priceof US$19 per barrel. The currentprice is $15 or less.

Outside the energy sector,it is the Industrial and Tourism De-velopment Agency (TIDCO) whichis in the driving seat, when itcomes to economic development.Set up in 1994, it brought togetherthree agencies with responsibilitiesin this field – the industrial devel-opment corporation, the tourismdevelopment authority and the ex-port development agency. Presentin five locations throughout thecountry, its brief, explained theAgency's Chief Executive OfficerVishnu Ramlogan, is to ‘createjobs, earn foreign exchange andattract investment.’ Talking about

its achievements, Mr Ramlogansaid that the agency had workedto relax import controls such as du-ties and surcharges. It was also in-volved in processing requests forimport and export licenses, as wellas seeking investment in some ofthe more promising 'new' areas ofthe economy – light manufactur-ing, agro-processing, marine ser-vices, entertainment, informationprocessing, telecoms and tourism.

In the tourism sector, morehotel rooms are needed. DuringCarnival in particular, it is quitedifficult to find accommodation.But Trinidad and Tobago is also anattractive all year round destina-tion. Twisting roads take one up tothe Northern range which has awell endowed tropical forest andpretty villages. Other attractionsinclude the Asa Wright Nature Re-serve, a haven for bird watchersand, on the North coast, a longstretch of sand at Maracas Bay.

Another expanding area ofthe economy is the marine indus-try. The boom in yachting inTrinidad can be seen by taking justa short ride outside the capitalwhere yacht masts dominate thecoastline. Linked to this develop-ment are services such as repairwork and supplies. The country’sstrongest selling points, said theTIDCO head, are ‘a transparentfriendly environment, good accessto international markets and thefact that it is easy to do business.'He also mentioned the advantageof government incentives such astax breaks.

While the USA's presence isvery obvious, there is an eagernessto increase the investment fromthe EU. Foreign Minister RalphMaraj also highlighted the coun-try’s selling points to us, referringto political stability, high literacylevels, a good infrastructure andcheap energy sources. And whilethere is money coming in formegaprojects like the LNG facili-ties, Mr Kuei Tung recognises theneed for smaller investments: ‘Weneed to sell ourselves better, bygetting our name and reputationmore widely known throughoutthe European Union.’■ D.P.



Potential for transhipment.A bauxite terminal near Port of Spain.

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Two of the country’s traditional industries, sugarand rum, both face a rather shaky future. The mainconcern is what will happen to the trading arrange-

ments with the European Union once Lomé IV expires.More global competition could be just around the corner.

Trinidad and Tobago’s sugar has traditionally enjoyed pref-erential access to the EU. Under Protocol 8 of the LoméConvention, the prices paid for its fixed quota are alignedto those set under the Union’s own internal price systemfor sugar – which are traditionally higher than the worldprice. The importance of this concession to the industry wasstressed to us by Herman Pulwarty, Acting General Manag-er of the state sugar company, Caroni. The EU is theirbiggest overseas market. ‘We get a much better price forsugar in the EU thananywhere else', said Mr.Pulwarty.

In 1998, the company isdue to export 61,100tonnes of raw sugar.53,500 tonnes will go tothe EU (46,000 underthe protocol, and 7,500at a reduced duty underan additional specialpreference arrange-ment). The remaining7,600 tonnes will be ex-ported to the USA. In1998, the sale of proto-col sugar to the EU isexpected to bring inTT$168m (about TT$3650a tonne). Special prefer-ence sugar to the EUand sales to the USAshould fetch TT$20.7mand TT$21.3m respec-tively – an average price of about TT$2800 a tonne. Caronialso produces sugar and molasses for the local market.

The company has short-term fears about the future of itsspecial preferential sugar quota for the EU, and longerterm worries about the survival of the Lomé protocol itself.It may not be long, some believe, before it has to competehead-to-head with the low-cost producers of Guyana,Brazil and Guatemala – all countries where labour costs aremuch lower. With this scenario very much in mind, Caroni isseeking to upgrade its production and restructure opera-tions, to cut costs and improve quality. The Caroni estate,located at Brechin Castle, currently has 9500 employees andtakes a significant proportion of its harvested cane fromplantations on its own land. By 2001, 75% of the sugar willcome from outside farms, although Mr Pulwarty insists thatthere will be no ‘forced retrenchment.’ Caroni is also diver-sifying into dairy products, sheep, beef, rice and citrus, andit has built a distillery to supply affordable rum for thelocal market.

While the Lomé sugar protocol has undoubtedly been fi-nancially beneficial, there are those who believe that the

rum protocol has, to some extent, inhibited trade with theEU. This is the view of the Trinidad-based Angostura Limit-ed, the top rum producer in Trinidad and Tobago. Al-though quotas imposed on light rum under the protocolhave recently been relaxed, they are still in place on darkrum. ‘We have been fighting for years for improved access’,said Keith McLachlan, Angostura's Chief Executive Officer.He suggested that the restrictions imposed on West Indianproducers were designed to benefit competing rum manu-facturers in France’s Overseas Departments – Guadeloupe,Martinique and Reunion.

Mr. McLachlan spoke about the new 'threat' posed by theso-called ‘zero-for-zero’ agreement – reached by the EUand the USA as an afterthought to the GATT Uruguay

Round. Under this accord,the EU will phase out all re-strictions on US-producedwhite spirits (rum, gin andvodka) by 2003. This couldmean that firms like Bacar-di, which purchase bulklight rum in the West In-dies, will choose to pur-chase their raw materialfrom Puerto Rico and theUS Virgin islands in the fu-ture.

Mr. McLachlan drew a par-allel with the problemfaced by West Indian ba-nana producers, claimingthat it was yet another ex-ample of the ‘big boys club’dominating world trade, tothe detriment of the smallisland states. And he seesother threats on the hori-zon, in the shape of possi-

ble competition from low-cost producers in the Philippinesand Brazil.

Although West Indian rum producers are lobbying in Brus-sels to have the remaining quotas removed, they are find-ing it difficult to develop a wider market for the qualitydark West Indian rum, in the absence of a foolproof 'defin-ition'. Mr. McLachlan explained that there are a greatmany ‘false’ rums available in the EU, citing as an example,the Austrian brand ‘Rumverschnitt’ – which can be labelledas rum in retail outlets.

With the end of Lomé IV in sight, the West Indian produc-ers would be happy to see some transitional measures al-lowing them to develop their markets. They would also likeassistance from the EU in brand development, and in estab-lishing an authentic definition of West Indian Caribbeanrum – to see off the pretenders! But given the rather un-certain outlook for West Indian rum, Angostura is also di-versifying in Trinidad, moving into more thriving areas ofthe economy such as construction, the media and insur-ance.

Fear of sugar and rum shake-up

Sugar is not only threatened by fire.

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– The PNM wasformed out of the decoloni-sation movement that sweptthe world after the SecondWorld War. Eric Williams at-tended the 1955 gathering

of representatives from the develop-ing world in Bandung (Indonesia).On his return, he formed the PNMwhich was committed to transform-ing the country economically, social-ly and politically. It is the oldest po-litical party in the country. We areproud of having seen the nation toindependence, of the move to a Re-public and of the considerable eco-nomic improvement over which wehave presided. In the last 42 years,there have only been two periodswhen the PNM has been out ofpower – between 1986 and 1991,and now for the last two years.What has been made of Trinidadand Tobago is largely the work ofthe PNM.

■ So how do you account for thefact that Mr Panday is now in gov-ernment?

– The last election was adraw. The PNM and UNC each won17 seats with two going to the Na-tional Alliance for Reconstruction.We believe the opposition playedthe race card in 1995 more subtlythan they have ever done before.We think this is why we are in oppo-sition today. I should point out thatwe got more votes in every con-stituency in 1995 than we did in1991.

■ Do you think that the govern-ment's slim majority will hold?

– I have doubts about this.It is not just the coalition, but alsothe internal situation within the rul-ing party. I am not sure that thatcould hold together in a crisis. Irather suspect it would be very

touch and go, but it is somethingthat hasn't yet been tested.

■ How would you describe your re-lations with the government. Arethey rancorous?

– The politics of this countryare more sophisticated than they ap-pear. Politicians are cordial whenthey meet each other but politically,there is a very bitter feud. We arevirtually at opposite ends of the pole– not so much in policy – but in im-plementation.

In fact, the UNC came inwith no policy. While in governmentbetween 1991 and 1995, we stream-lined policy and announced newmeasures in a number of areas, aspart of our preparation for the sus-tained economic and social develop-ment of our people. The administra-tion has adopted all these policies astheir own. So as far as policy goes,there is very little difference. Butthere are major implementation dif-ferences. The UNC is not as all-em-bracing as the PNM. People talkabout voting on ethnic lines inTrinidad and Tobago. To some ex-tent this is true, but I should say thatwhile the PNM has a strong Afro-Trindadian base, it has always won

elections on the basis of broad sup-port. That is what distinguishes ourparty from the others. The PNM istruly multi-racial, multi-religious andmulti-cultural.

■ The economic situation is lookingquite good, with 5% growth fore-cast for 1998. Exactly what are yourcomplaints about the way the gov-ernment is implementing economicpolicy?

– Take for example PiarcoInternational Airport. The govern-ment is doubling its size and, of theTT$100 millon dollars in expenditurelast year, TT$43 million went on con-sultancy fees – and who knowswhat else? There is now a high levelof corruption in the conduct of pub-lic affairs, which was absent whenwe were in government. We arguethat too much of what governmentdoes is dictated by its determinationto enrich friends and family.

There are two big scandalswhere things have gone sour. Oneinvolves rice, and the other, the up-grading of the sugar refinery atSaint Madeleine. Last week, theChairman of the National FlourBoard (NFB) advised shareholders atan extraordinary general meetingthat the NFM stands to lose someTT$20m on a rice deal. There issomething far wrong with that. Andthe sugar refinery, set up at a cost ofTT$20m, has never functioned. As aresult, there are now major prob-lems in the farming community withonly one factory available. We haveeven begun to import sugar. Thingshave gone seriously wrong withboth deals and we have ample rea-son to believe that there are impro-prieties in almost every contractbeing drawn up at the moment.There's too much favouritism andproper bids are not taking place. I

Interview with Opposition Leader, Patrick Manning

'Integrity – or rather the lack of it – isan issue'Prime Minister from 1991-1995, Patrick Manning returned to head the opposition after his People's NationalMovement (PNM) tied with Basdeo Panday's United National Congress (UNC) in the 1995 election. The UNCsubsequently formed a coalition with the two members of the Tobago-based National Alliance for Recon-struction (NAR) and went on to consolidate their position when two PNM members leant their support to thegovernment side. All this seems to suggest an uphill task for the opposition leader, who also faces criticismfrom within his own ranks. But Mr Manning has shown a determination to be vocal in opposition, criticisingwhat he sees as the government's reliance on 'political patronage' and 'family and friends' in running thecountry. He claims his party is the country's only truly 'national' political group even though most of its sup-port has traditionally come from the Afro-Caribbean community. We began by enquiring about the PNM'sroots.

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fear that the good name we havebuilt up internationally over theyears is about to be tarnished.

■ Have you any other criticisms?

– The govenment doesn’tactually realise what it's doing in anumber of areas. Take the petrole-um sector. If you read the newspa-pers, you might be impressed, butthe way options are dealt with is notthe way we would do it. They havejust allocated a lot of acreage offTrinidad's East coast. If we were inpower, we would not give awaydeep water areas until the shallowwaters had been fully explored. Ifdiscoveries are made in the shallowareas, that increases the attractive-ness of the deeper water, whichboosts the price of concession li-cences and benefits the state muchmore.

■ Is there much poverty in Trinidadand Tobago?

– Well there is no compari-son with sub-Saharan Africa, for in-stance. Over the years, we have de-veloped business so the generalstandard of living in this country isconsiderably higher. But the numberof people who are below the pover-ty line is increasing. It is now morethan 30% and this is a source of con-cern. While you won't see the abjectpoverty of Africa or Latin America,there are people in Trinidad and To-bago who have great difficulty mak-ing ends meet and who do not enjoya good standard of living.

■ Are you critical of the govern-ment’s social policy?

– It is more a question ofwhat is their social policy? I’m afraidI cannot say. When I was in govern-ment, this was one area where wehad not fully completed our policydevelopment. So the social policy ofTrinidad and Tobago is not veryclearly defined.

■ Why has the PNM very little fol-lowing in Tobago, which has a large-ly Afro-Caribbean population?

– The PNM won the firstelection in Tobago in 1961. We lostthe general election there in 1976and have never been able to regainthe level of support we had before.The House of Assembly came intobeing in 1980 and we have nevercontrolled it even though we set itup. It's a particular feature of thepolitics of our country. A.R Robinsonwas a very dominant political figurein Tobago who was originally in thePNM but who split from us. Havingsaid this, we are present in Tobagowhich is not really the case for theUNC. We are a national party – theonly one in the country.

■ On which issues will you cam-paign between now and the year2001?

– Integrity – or rather thelack of it – is an issue. I am talkinghere about financial and public ac-countability. Even in Parliament,ministers are not telling us the fullstory. There is a general lack of un-derstanding of governance. This so-ciety is multi-racial and multi-reli-gious, and whoever administers itmust understand that the mainte-nance of social peace is dictated, toa large extent, by the way the coun-try is governed. This is somethingwhich the PNM understands, butabout which the UNC is not yetclear.

■ What about the question markover your own leadership of thePNM?

– The position of leader isalways questioned. In 1996, theparty held a leadership conventionand I was re-elected, by a handsomemargin. It's the first time that wehave had such a contest and I imag-ine there is some residual feelingamong those who would have pre-ferred a different result. But we livein a democracy which means accept-ing the will of the majority. Thereare some people who find it difficult

to accept that, and you hear the oddcomment here and there, but I'mnot too worried about this.

■ Do you have a view about theway relations with the EU shouldlook as we move into the next mil-lennium?

– We are members of Cari-com, and we and our partners allhad a close relationship with theUnited Kingdom. At independence,the UK agreed to support a certainstandard of living for the inhabitantsof the smaller territories – which in-cluded, among other things, prefer-ential access to the British market.This is now being questioned by theEU and there is a risk that theeconomies of some of the states inthe region could be destroyed. Idon't think this is fully understood inEurope. If it were, I believe the EUapproach would be different.Trinidad and Tobago is taking stepsto diversify as much as possible, butfor some of the smaller territories,bananas are absolutely essential.Any move by the EU towards com-plete free trade could lead to eco-nomic devastation and, regrettably,open the door for development of adrugs culture – which would affectEurope of course.

■ But what if the liberalisation isphased in over a long period – say10 to 15 years?

– Yes, that would make adifference, but even while thesetimescales are being suggested, neg-ative developments are taking placeright now. The WTO is already estab-lished and is conducting its businessin a way that seriously affects theCaribbean countries. On a more pos-itive note, the EU must give greatersupport to some of the smaller terri-tories in the region so that they canhave better access to the availablefunding. We had that problem in1992. We weren't able to spendmuch of the money allocatedto us. We made special arrange-ments and suddenly, we found thatour implementation rate wentup.■ Interview by D.P.

The Red House, seat of the nation's Parliament.

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Carnival, which took placethis year on February 22-24,is not just an excuse for thenation to throw a big party.It is the window for a grow-ing entertainment industryand as an event in itself,promises to bring in more

tourist dollars. At this special time, amirror can be held up to the nation.There is a lot of talk about how Car-nival reflects the developing confi-dence and unity of the country. Wespoke with a musician, an authorand an artist about what it person-ally means to them.

It would be a mistake toconsider Carnival as just a big bash‘chippin away behind de truck’ (inother words, moving forward with ashuffle, hips gently swaying as onefollows a band on a lorry playing ca-lypsos) and clutching a bottle of thelocal brew. From the opening night,J’ouvert, when revellers sling mudand smear paint on passers-by,through the colourful extravaganzaof the Mas Bands in their elaboratecostumes, to sunset on Shrove Tues-day, the country pulsates withsinging and dancing. Below the sur-face of this striking two-day specta-cle, artists reflect on how Carnivalmarks the emancipation of the indi-vidual and the self-confidence ofTrinidadian society. For them, in eco-nomic and political terms, the eventmanifests freedom of expression, na-tional unity and growing prosperity.

by the bands wins the coveted prize.Wayne Rodriguez took this year’saward for his catchy number, Foot-steps.

‘Every step you take,Yuh make de dance hall shake,Causing Earthquake,For goodness sake,I wanna stamp with you.'

Some Socas stay closer to thesocial commentary of calypso tradi-tion. One example was the offeringby David Rudder – whom The Couri-er met – which took third place inthe competition. He explained to usthat his uplifting tune, ‘High Mas’,was ‘a dig at religion’ encouragingpeople simply to express themselvesand to rejoice in 'being'. Some com-mentators thought it ‘sacrilegious’:

‘Oh merciful father in this bacchanalseason.Where some men will lose their rea-son.But most of us just want to wine andgrind and have a good time.Because we feeling fine, Lord,amen.’’(Taken from the album ‘ Beloved')

A household name in theCaribbean, and of worldwiderenown, David Rudder successfullycombines melody and rhythm. Heexplained to us that Carnival is still a‘people leveller’ despite changesover the years. A person spendsmonths preparing the costume andthen: ‘For two days he becomes thedragon, the King of the road, theman. He feels big.’ One change isthat the sweet sound of the steel‘pans’ is heard less, with the en-croachment of booming sound sys-tems. Another, according to DavidRudder, is the ‘very large middleclass’ involvement in ‘playing mas’.For about TT$800 (US$130), a cos-tume can be bought to ‘play’ with

one of the popular bigger bands.This year the ‘in’ band was Poison,where a masquerader could literallyrub shoulders with government min-isters and celebrities like West Indiescricket captain, Brian Lara. But Rud-der stresses that the event remains avibrant celebration of personal self-confidence and the country’s creativ-ity. ‘The steel bands are still thepride and joy of the poorer commu-nities,’ he said, expressing pleasurethat so many youngsters had beeninvolved this year playing the pans.

Speaking about his ownmusic, David Rudder said he aims to‘make people see the Caribbean in adifferent light' and more aware ofthe region's music. Calypso is tradi-tionally used to comment on con-temporary political and social issues.‘In 20 calypsos, you have 20 opin-ions,’ explained Rudder. He hasthrown his own hat into the ring inthe tussle between the Caribbeanand ‘dollar’ banana producers. HisBanana Death Song makes somebarbed comments about the allegedclose links between the US adminis-tration and the Chiquita bananacompany, suggesting that the latterhas been allowed to 'call all theshots'.

‘Well the church had a EuropeanbenefactorSo he decide to come to the aid ofthe chapterBut Uncle Sammy said, ‘No, I wantthem to sufferThey never do me wrong, but I lovemy Chiquita’

Carnival – the nation’s barometer

Soca star, David Rudder.'Trinidad and Tobago has a way of changing you.’

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Soca starEvery sense is assaulted as a

mass of artistic talent pours onto thestreets. The pure enjoyment of Car-nival, with its encouragement to letloose and throw away your cares, isevoked in the prized Soca competi-tion (the soul calypso road march).The march most frequently played

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t r i n i d a d a n d

The 'church' here isthe West Indian banana in-dustry while the 'benefac-tor' is clearly the EuropeanUnion.

David Rudder re-flected: ‘Everyone shouldpass through here. Trinidadhas a funny way of makingpeople see parts of them-selves they have never seen before.The twists and turns in this societyare so amazing, you get dizzy justtrying to keep up with them.’ Healso spoke of the remarkable creativ-ity of a nation of only 1.3 million. Al-though his profession takes himoverseas a lot, David Rudder returnsas often as possible: ‘We all com-plain that we have to get away, butin the end we all come back. It's asociety that challenges people.‘

On Mas Tuesday, the show-case for the top costume designers,David Rudder joined the band ofPeter Minshall – whose work fea-tured in the opening ceremony atthe 1992 Barcelona Olympics. Thisyear, his ‘theme’ was ‘Red’, involvingextravagant futuristic costumes in asingle block of colour. In a broad-cast, the designer explained that itwas up to the individual to interpretthe colour. For him, however: ‘Redreflects what is happening inTrinidad and Tobago at the dawn ofthe new millennium. Red is a chal-lenging colour like the blood thatflows through the veins of life.There is the red of anger and rage,and the red of love and understand-ing.' He also revealed a deep com-mitment to the 'family of Trinidadand Tobago'. 'We have to care foreach other and respect each other',he urged. 'This is the New World andit is our responsibility to lead, not tofollow.’

Prize-winning novelistAuthor Earl Lovelace high-

lights the significance of Carnival inmuch of his work, including his lat-est novel Salt, which recently wonthe Commonwealth prize for bestfiction (published by Faber andFaber in 1996). Lovelace told TheCourier that he noted a sense ofunity in this year’s event, with the‘energy of youth displaying itself’.Salt tackles the question of howTrinidad and Tobago should dealwith its diversity (two main ethnicgroups of African and Indian originrespectively) and the legacy of itscolonial past. The novelist still be-

lieves that ‘reparation’ should besought as an 'apology for colonisa-tion‘ though he stresses looking tothe future. 'We must go forward,but not forget the past, and in doingso create a self-confident, competi-tive people’. Lovelace continued:‘People generally want visibility.They want to feel that their own au-thenticity is assured; that they arenot at the periphery, but at theheart of society, without shackles ontheir freedom.' His prize-winningnovel, he told us, 'addresses what itis to be human and how we defineourselves. It is a celebration of free-dom.'

Salt recounts the life of Al-ford George, a schoolteacher who,for 19 years, taught pupils so thatthey could 'escape' overseas. Turnedpolitician, he reflects on how hemight capture for the nation theemancipation embodied in Carnival‘.George, the author explained,'wants to make the steel bands thecentral symbol of the nation, an iconencapsulating our struggle for free-dom to express ourselves in our ownidiom. He wants the slums of Laven-tille transformed into a shrine to thesteel band with art galleries, restau-rants and a theatre. And he wantsthe Carnival arts placed at the centreof the education system. A keytheme is that 'there is no profit inimitation. What we have to do is seeourselves with new eyes, see a landwhere it is possible to create a newpeople and a culture of prosperity,dignity and freedom.’

Preservation by art

The pannists, whose puremusical sounds leave a trail aroundstreet corners during Carnival, areoften featured in the paintings ofAnthony Timothy, a rising water-colour artist. Recent works include acollection entitled 'the Preservationof the Port of Spain’ which featuressome of the very attractive edificesin and around the capital. It is thebuildings that are highlighted, butthe faint figures of the steel bandplayers add a sense of movement.

Timothy believes thatwater colours are best-suit-ed to transpose the inten-sity of the Caribbean light.The artist is currently look-ing for a purchaser for acollection of 19 paintingsfeaturing the 1990 coupd’etat – which capture thesmoke that billowed from

many of the capital's buildings dur-ing that traumatic period. He says hehad a premonition that trouble wasbrewing. In the early hours of thefateful day (July 27), he found him-self frantically drawing the face ofthe then Prime Minister, A R Robin-son. A few hours later the coup tookplace!

The government realisesthere are bright economic opportu-nities in selling Carnival and the artsit inspires. According to TourismMinister, Daphne Phillips, the eventbrought in TT$200m in 1995(US$33m). She aims to enhance thedevelopment of the artistic side. ‘Wehave planned the creation of a Car-nival Institute’, she explained. Thiswill be an archive to document theCarnival and provide training andscholarships for pannists who tradi-tionally play their music 'by ear’. TheEU has already funded a pan theatreto help develop music in the nationwhich is home to the steel bands.Mrs Phillips explained that a newcopyright bill had been drawn up, toestablish the artists’ rights to theirwork. Vishnu Ramlogan of TIDCO(the tourism and industrial develop-ment agency), added that receiptsfrom the broadly defined ‘entertain-ment industry’ are expanding at20% a year and that tourist incomeis growing at about the same rate.The EU has also offered assistancehere. Pamphlets will be printed inthe Union’s less widely-spoken lan-guages to help promote the twin-island state in new markets.

It is not so easy, of course, toportray the mind, body and soul ex-perience of Carnival using just thewritten word. What you really needis to hear the melody and feel therhythm.■ D.P.

The energy of the Trinidad and Tobago captured in an AnthonyTimothy watercolour of a wonan dancing.

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Profile

General informationArea: 5128 km2

Population: 1.3 million (ofwhich 55,000 in Tobago)

Population density: 254 in-habitants per km2

Capital: Port of Spain

Official language: English.Hindi is also widely spoken.

PoliticsPresident: A.N.R Robinson.

Prime Minister: Basdeo Pan-day (United National Con-gress).

System of government. Parliamen-tary. The President's functions aremainly ceremonial and the PrimeMinister heads the executive.There is a bicameral legislatureconsisting of a House of Represen-tatives and a Senate.

The House of Representatives has36 directly elected members in-cluding two from constituencies inTobago. There are 31 Senators ap-pointed by the President - 16 onthe advice of the Prime Minister,six on the advice of the OppositionLeader, and nine at his own discre-tion.

Tobago has a 12-member electedHouse of Assembly with limitedpowers. (see separate article)

Party representation in the Houseof Representatives. At the lastelection on November 6, 1995: theUnited National Congress (UNC)and People's National Movement(PNM) both won 17 seats while theNational Alliance for Reconstruc-tion (NAR) won the two Tobagoconstituencies. The UNC formed acoalition government with theNAR. Two PNM members havesince become independents.

GNP per capita: ECU 3,740 (approx)

Annual growth rate: 2.8% in 1996(5% target for 1998)

Inflation: 3.3% (1996)

Main exports: Petroleum, chemi-cals; manufactured goods, agricul-tural products.

Main imports: Raw materials andconstruction materials, food,equipment, cars.

Main destination of exports: USA(44%), Caricom (24%), Puerto Ricoand the US Virgin Islands (5%)Central and South America (8%)UK (2%), other EU (4%).

Main origin of imports: USA (38%),Central and South America (25%),Caricom (4%), UK (6%), other EU(10%).

Visible trade balance: Exports(1996) TT$ 14,355m, Imports TT$12,867m. Surplus TT$ 1,488m.

Social indicatorsLife expectancy: 75.4 years(women), 70.8 years (men)

Adult literacy: 97.9%

Population with access to cleanwater: 97%

Population growth rate: 1.01%(1995)

Unemployment rate: 15.9% (thirdquarter of 1997)

Enrolment in education (all levelsages 6-23): 67%

Infant mortality: 15/1000 births

Human Development Index rating:0.841 (40th out of 175)

Sources: Economic Intelligence Unit, UNDPHuman Development Report (1997), CentralBank of Trinidad and Tobago - 1996 AnnualEconomic Survey, EU-ACP Cooperation in 1996(European Commission DG VIII), Ministry of Fi-nance, Trinidad and Tobago.

EconomyCurrency: TT dollar (1 ECU = TT$6.82)

Public sector external debt:US$1.6billion (1998). or 11.0% ofGDP.

TOBAGO

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23the Courier n° 169 – may-june 1998

Tobago is an island of gracefullycurved coconut trees shaped by theprevailing wind, their heavy fruitbegging to be picked. As fishermenleisurely repair their nets, the set-ting sun tints the sky with a peachyorange afterglow. A remark by onewell-informed local resident, MrBoxer, springs to mind. 'We can seethem over there, you know, withtheir bright lights.’ He is referring tothe gas and oil extraction off theWest and South East coasts of Toba-go. It is doubtful whether his state-ment is accurate – a glance at a mapshows that the drilling activity isnearer Trinidad’s coast – but fact orfiction, what he says is evidence of awidely-held belief in Tobago’s owneconomic potential, and a pride inbeing Tobagonian.

Later the same day, theview that Tobago should be get-ting a better deal out of the 1888Union with Trinidad was articulat-ed to us by Hochoy Charles, ChiefExecutive of the elected 12-mem-ber House of Assembly. This wasestablished in 1980 to provide fora degree of autonomy. Talking tous about his long-term ambition –‘self-government for Tobago in aunitarian state’, Mr Charles ex-pressed his immediate concernthat Tobago should get a bigger

share of the nation’s developmentfunds – and should have a freerrein to spend it. An Act passed byParliament in 1996, which MrCharles is seeking to implement,already allows this to an extent.

Several features set Toba-go apart from its sister island ofTrinidad, situated some 22 miles tothe south west. Over 90% of the55,000-strong population are ofAfro-Caribbean descent. It is politi-cally special too. Its two seats inthe nation's House of Assembly areheld by the National Alliance forReconstruction (NAR), the opposi-tion party which went into coali-tion with the UNC after the lastelection, enabling Basdeo Pandayto form a government. The NARhas no seats in Trinidad. Accordingto Hochoy Charles: ’We decided tolend our weight to the UNC be-cause the PNM had neglected To-bago for years. One element weagreed with the new adminstra-tion was internal self-governmentfor Tobago.’ But in the absence ofthe necessary backing from thePNM, the 1996 legislation couldnot be as radical as had beenplanned. As Mr Charles explained,the UNC/NAR coalition did nothave the majority it needed toamend the Constitution in such a

fundamental way – so they wentas far as they could.’ Although heis still battling for more legislativepowers, his current emphasis is ontranslating the terms of the 1996legislation into reality.

Under the 1996 Act, ex-plained the Chief Executive, billsproposed by the Tobago House ofAssembly have to be sent to theCabinet in Port of Spain which caneither accept or reject them. IfCabinet approval is forthcoming,the matter then goes before thenational Parliament. At the time ofour meeting, Mr Charles was onthe point of dispatching a letter tothe administration in Port of Spainconcerning the 1998 financial allo-cation. He described the budgetprocedure for us. ‘We can prepareour own budget estimate, but itgoes through a similar process aslegislation. It is submitted to theCabinet for approval, and then in-corporated into the national bud-get for Trinidad and Tobago.' Asignificant aspect of the 1996 legis-lation is the provision that obligesthe Cabinet to give due considera-tion to the financial and develop-mental needs of Tobago, and toallocate the financial resources ofthe country as ‘fairly as is practica-ble.’

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Tobago

Bright lights on the horizon?

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If there is disagreementbetween Tobago and the centralauthorities, the matter can be re-ferred to a dispute-resolution com-mission and there is also the possi-bility of having a motion debatedin Parliament. ’The whole country,'continued Mr Charles, ‘can thenfocus on whether Tobago wastreated fairly or unfairly.’

Raw deal?This year's dissatisfaction in

Tobago about their share of theresources is nothing new. Accord-ing to our interviewee, 'Tobagohas been getting less than its duefor many years.’ Certainly, thestriking difference between themodern tall buildings of the multi-national companies in Port ofSpain, and the rather run-downappearance of parts of Scarbor-ough (Tobago's 'capital'), suggeststhat the latter is considerably lesswell off. According to a frustratedMr Charles, ‘between 1991 and1998, capital allocations for thewhole of Trinidad and Tobagoamounted to TT$10.3 billion. Outof this sum, we got just over half abillion. For 1998, we have been al-located TT$80m out of total ofTT$1.6bn.'

The country’s Finance Min-ister, Brian Kuei Tung, counteredwith the argument that allocationsto Tobago rose fourfold in 1997(TT$185m) and that this year's fig-ure still compares favourably withthe TT$45m provided for 1996. Heinsisted: 'We are trying to do asmuch as we can to developTrinidad and Tobago as a whole.

Mr Charles' share has been at theexpense of other parts of thecountry.’ In response to our ques-tion, Mr Kuei Tung acknowledgedthat there was no formula for cal-culating Tobago’s share. 'It is doneon a basis that allows us to openup the country. Some of our infra-structure has been allowed to de-teriorate over the years and wehave to refurbish or renew it. Wehave not allowed Tobago’s needsto suffer, but resources are allocat-ed on the basis of a needs assess-ment, not on the basis of whomakes the most noise.’

Mr Charles put forwardseveral arguments in his claim formore funding. He stressed that To-bago had a lot of ground to coverif it is to catch up with its biggersister. The island, for example, isnot self-sufficient in drinkingwater, and despite all the plans for

hotel development, there is nocentral sewage treatment plant.He also complained about the ab-sence of technical schools, andabout all the roads in need of re-pair. The Chief Executive believesthat Trinidad benefits greatly fromTobago but says he is stymied by alack of information. ‘Nobody cantell you how much Tobago con-tributes to the national treasury.All the goods that come in –whether from South America, Eu-rope or the USA – go throughTrinidad. Customs duties are paidat Piarco airport or, if the goodscome in by ship, at Point Lisas (onTrinidad’s West Coast) or Port ofSpain. If you have to buy a newcar, all the dealers who import ve-hicles are in Trinidad, so the vehi-cle taxes are paid there.'

He has high hopes thatthings will change with the imple-mentation of the 1996 Act. ‘Be-cause of this legislation, we are,for the first time, putting a struc-ture in place to identify the contri-bution we’re making. The new leg-islation also takes account ofelements that must be consideredin budget calculations, includingTobago’s isolation from the princi-pal national growth centres.’

Multiplier effectPutting further weight be-

hind his argument for a greatershare of treasury funds, Mr Charlesdraws attention to the impact onTrinidad of economic activity inTobago. ‘When there is expendi-ture in Tobago', he said, 'the mul-tiplier effect is felt mainly inTrinidad’. He went on to explainhow materials for home and officeconstruction, roads and ports onhis home island all came from itslarger neighbour. 'And all the in-surance companies are basedthere. Because of demand in Toba-go, you are constantly increasingthe tax base in Trinidad. We needto take all of this into considera-tion.’

He hopes to exploit aclause in the new legislation whichrequires firms to pay taxes arisingfrom their operations in Tobago tothe local administration (there areambitions to develop the island asan offshore finance centre). MrCharles said it was simply a matter

24 the Courier n° 169 – may-june 1998


Hochoy Charles, Chief Executive of Tobago’sHouse of Assembly.

Hitting the jackpot?Under the new law, local business taxation should

be a direct source of revenue for Tobago.

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25the Courier n° 169 – may-june 1998

of putting the right implementingmechanism in place. The problem,he said, is that the House of As-sembly needs to be properlystaffed, 'which is not the case atthe moment.' Another source offrustration is that the Assemblyhas no system of travel allowances.Hochoy Charles would also like tobe able to make direct contactwith public donor agencies –something, he believes, whichshould be possible under the 1996Act.

The Chief Executive, how-ever, is realistic about the prospectfor greater legislative powers. To-bago would probably have to waituntil after the next election, he ac-knowledged, before this appearedon the agenda.

Whatever the current diffi-culties of getting more cash out ofthe Port of Spain authorities, pri-vate entrepreneurs appear to be

queuing up to exploit develop op-portunities in Tobago. Tourismand human resource developmentfeature prominently and the islandwould certainly appear to havebright prospects. It is a beautifulplace, with long stretches of sandy,palm-fringed beaches runningfrom the popular Pigeon Point inthe South West, to Man O’ WarBay at the opposite end of the is-land. And there is an extensivewooded area inland, offering birdwatching and nature trails. The Eu-ropean Union is examining thepossibility of helping to upgrade asection of road between Char-lottesville on the East Coast andL’Anse Fourmi in the North West.This will give local residents im-proved access to the north. It willalso enable tourists to do a com-plete coastal circuit of the island,with a bird’s eye view of manybeautiful bays. In the South, aHilton hotel complex is currentlybeing constructed near the airportin a joint venture involving the'Angostura’ company (famous forits ‘bitters’). The firm is currentlyseeking to diversify its business in-terests in the country. And forthose who fear that all this activitymight spoil the environment, Vish-nu Ramlogan of the Tourism andIndustrial Development Agencystresses that precautions are beingtaken. He estimates the maximumroom capacity of the island at 3000and says that no hotel should betaller than a coconut tree.

Mr Charles has some rathermore original tourism projects inmind for Tobago. He spoke ofplans to visit Texas to examine atourist site there involving asunken ship that had been refloat-ed. ‘You know that Tobago haschanged hands 32 times. Thatmeans we have a rich culture, butwe also have Dutch and Frenchvessels that were sunk in the har-bour. We could do the samething‘.

Puerto Rico. Meanwhile BritishAirways was planning to introducea scheduled service at the end ofMarch. The 20-minute hop be-tween Crown Point in Tobago andPiarco, Port of Spain is operated byAir Caribbean. Mr Charles also in-dicated that a European operatorhad shown interest in running anew ferry link between the two is-lands. The current night crossingtakes five hours.

AgricultureWhilst the country's Plan-

ning Minister, Trevor Sudama, ad-mits that industrial developmentopportunities are limited in Toba-go, he sees scope for agriculturaland fisheries development. Cocoa,coconuts and citrus fruit seem togrow particularly well and there issome local processing of cocoa. To-bagonian hot chocolate 'cubes',containing fragrant spices’, are onsale in local shops.

Hochoy Charles acknowl-edged that many of his complaintsare similar to those heard in otherCaribbean twin- and multi-islandstates. He mentioned the exampleof Anguilla which broke awayfrom St. Kitts and Nevis, with Nevisitself apparently contemplating asimilar step. 'We feel we should beable to come up with somethingthat satisfies the demand, short ofoutright secession. Tobagoniansdon't want to break up the Union,especially given that the globaltrend is very much in the other di-rection. Europe, after all, is tryingto get together with one currency.All we are saying is that we needto be treated with respect andequality. The people (of Trinidad)don't understand how much theyare benefiting because of us.’

This brought us full circleto Mr Boxer’s 'observation' of off-shore drilling. Mr Charles showedus a piece of government legisla-tion on deep water oil concessions,citing some of the detailed loca-tions off Tobago that were beingoffered to companies. If oil can beextracted from these areas, thenthe light on Tobago's horizon willindeed shine brightly.■ D.P.


Cocoa is one of a limited range of products whichoffers scope for development.

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Hand in hand with suchtourist development, the island’spast difficulties of accessibilityseem to be resolving themselves.European charter airlines such asthe UK-based Air Caledonian andCondor of Germany, already fly di-rect to Tobago. So too does Ameri-can Eagle which has a service from


TradeThe composition of

Trinidad and Tobago’s in-ternational trade flows re-

flects both the sectoral breakdownof domestic production and thecountry’s geographical location. In1995, some 40% of exports wentto the USA and about 20% to Cari-com countries. Central and SouthAmerica came next (8.5%) whileEurope was the market for only6.7% of the total. By contrast, Eu-rope is the second most importantsource of Trinidad and Tobago’simports providing 17.8% of thetotal figure in 1995 compared tothe USA’s 49.9%. In 1996, Trinidadand Tobago’s imports from Europetotalled some ECU 297m whilst ex-ports to the EU amounted to ECU207m. The principal exports to Eu-rope for that year were ethyl alco-hol and acyclic alcohols accountingfor 53% of the total, followed bysugar representing 14%. The mainproduct exported by the EU wasaircraft.

Trinidad and Tobago is oneof 13 countries that benefit frompreferential access to the EU mar-ket for sugar. Under the LoméSugar Protocol, the country can ex-port up to 69,000 tonnes of whitesugar to the EU at a guaranteedprice agreed on an annual basis. Inaddition, there is a ‘special prefer-ential raw cane sugar’ arrange-ment that allows exports of rawsugar at guaranteed prices whenEU refineries face shortages. Forthe 1996-97 exporting year,

Trinidad and Tobago sold 45,000tonnes of sugar to the EU underthe Sugar Protocol and 10,500tonnes of raw cane sugar underthe special preferential arrange-ment. Revenue from these exportsis estimated at ECU 30m, of whichthe subsidy element is approxi-mately ECU 15m. Trinidad and To-bago also benefits from the LoméRum Protocol.

Regional cooperation

Trinidad and Tobago hasbenefited from EU regional coop-eration programmes to the tune ofabout ECU 150m under the firstthree Lomé Conventions. Thefunds have been used, among

Trinidad and Tobago – EU cooperation

From rural development andinfrastructure to social developmentand economic diversificationby Peter Versteeg*

Trinidad and Tobago was one of the original Lomé Convention signatories in 1975. The twin-island state hasratified all subsequent Conventions. The current revised Lomé IV was signed on 4 November 1995 in Mauri-tius. Under successive Conventions, Trinidad and Tobago has benefited from preferential trade access to Eu-rope, grant and loan funding under the National and Regional Indicative Programmes, structural adjustmentmonies and European Investment Bank (EIB) lending across all sectors of the economy. With Lomé IV drawingto a close, the country’s challenge lies in consolidating its standing on the regional and international stagesfor the post-Lomé era.

New facilities at the UWI's Augustine campus,financed from the EDF.

* Economic adviser, European CommissionDelegation, Port of Spain.

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other things, to improve facilitiesfor the University of the West In-dies (UWI), to boost regional tradepromotion, for the CaribbeanAgricultural Research and Devel-opment Institute (CARDI) and forregional hotel training.

Lomé IV programmes to-talling some ECU 105m are beingimplemented under the auspicesof the Forum of Caribbean States(CARIFORUM), located in the Cari-com Secretariat in Georgetown,Guyana. The sectoral focuses hereare agriculture and rural develop-ment, human resource develop-ment, trade, tourism, and the envi-ronment. Trinidad and Tobagoplays a leading role in the Region-al Agriculture and Fisheries Pro-gramme and is a principal partici-pant in the University LevelProgramme and the Cultural Cen-tres Programme. A further ECU90m is programmed under the Sec-ond Financing Protocol of Lomé IV(EDF 8) for regional integration,human development and capacitybuilding. In addition, ECU 14m hasbeen earmarked for the fundingof the Barbados Action Plan forDrugs Control in the Caribbean.

National IndicativeProgrammes

Some ECU 20.8m was allo-cated to Trinidad and Tobagounder Lomé I and II, the focal sec-tors being infrastructure develop-ment, human resources and voca-tional training. Notable activitieshave included the St. Patrick watersupply project in south-westTrinidad (ECU 6.5m) and the Lam-beau Hill water supply project inTobago (ECU 0.5m). Other pro-grammes have encompassed train-ing (ECU 7.5m), microprojects (ECU0.6m), export and tourism devel-opment and a number of rural de-velopment initiatives (rice, horti-culture, forestry, goat breeding).

Funding under Lomé IIIand IV, totalling ECU 35m hasbeen fully committed. Major pro-grammes include:

– Rehabilitation of the SolomonHochoy Highway (ECU 17.5m)– Structural Adjustment Pro-gramme (ECU 7.8m)– Youth Agricultural Training andCredit Programme (ECU 5m)

– Rural Electrification Programme(ECU 2m)

– Small Business Development Pro-gramme (ECU 2m)

The Structural AdjustmentProgramme, which focuses mainlyon primary and secondary schoolrehabilitation, also benefited fromECU 6.2m under the Lomé IV Struc-tural Adjustment Facility. Othernotable interventions include sup-port to the Tourism DevelopmentProgramme, to the National Alco-hol and Drug Demand ReductionProgramme, and to CaribbeanBusiness Services Ltd.

The Eighth EDF Preparations are now

under way for a new cooperationprogramme to be funded underLomé IV’s Second Financial Proto-col. The framework for this wassigned in March 1997 with an in-dicative amount of ECU 21m.There are two main areas of con-centration: economic diversifica-tion/employment creation, andpoverty alleviation. In the firstarea, attracting 50% of funding,the focus will be on supporting theGovernment’s efforts to encourageprivate sector development. 35%of available funds have been ear-marked for investments in socialinfrastructure and measures topromote employment, especially insmall and micro-enterprises. Theremaining funds will be allocatedto actions for local community ini-tiatives, environmental protectionand the sustainable use of naturalresources.

EIB lendingSince Lomé I, the EIB has

approved loans of some ECU 150mfor the country. The focus underthe first three Conventions was onsmall enterprise development withlending channelled through Devel-opment Finance Limited and thenational development bank. UnderLomé IV, loans of ECU 38m andECU 45m were granted to Trinidadand Tobago for the TRINTOC oilrefinery and the NGC pipeline re-spectively.

The EIB has already indicat-ed that it could provide up to ECU30m in loans on preferential termsunder Lomé IV’s Second Financial

Protocol to assist small and medi-um scale enterprises development,for productive infrastructure (suchas energy, water, sewerage,telecommunications and trans-port), and to develop operations inthe industrial and service sectors.

Other cooperationBeside the national and re-

gional indicative programmes, theEU has granted other budgetaryresources to reduce drugs and al-cohol abuse, prevent the spread ofHIV/AIDS, build capacity in tradeunions and local government, andsupport NGOs in the fields ofwomen’s development, health andpopulation issues.

Trinidad and Tobago-EUcooperation has covered a broadspectrum of activities starting withinfrastructural development, ruraldevelopment and training andbranching out into economic di-versification and social sector de-velopment. This progression re-sponds to the changing sectoralfocus of Trinidad and Tobago’sPublic Sector Investment Pro-gramme, to which EIB lending andEU grant resources are expected tocontribute some 2% and 4.7% re-spectively for 1998.

The country’s future lies inensuring that the gains derivedfrom its bountiful natural re-sources and dynamic private sectorare equitably shared and in simul-taneously incorporating civil soci-ety and the private sector as fullpartners in the developmentprocess. Harnessing these re-sources will enable Trinidad andTobago to build on the founda-tions of its cooperation with theEU over the past two decades, andto enhance its own role as a dri-ving force for closer regional coop-eration in the Caribbean and thewider hemisphere.■ P.V.


TransportTen years on from the 'Decade of Transportand Communications for Africa' decreed bythe UN General Assembly, transport condi-tions in Africa and in the ACP countriesmore generally are far from encouraging.Despite the amount of money that has beeninvested in the sector, particularly in roadtransport and, more recently, in sea and airlinks, communications remain poor in manyareas. This hampers efforts to open up re-mote regions, exploit their economic poten-tial and facilitate their integration into theglobal economy. So are we to conclude thatthe 'transport decade' was a total failure? Itwould be a mistake to make too hasty ajudgment without further examination ofthe problem. Africa is clearly a difficult con-tinent as far as communications are con-cerned. Physical characteristics aside, the va-

garies of history have had a number ofconsequences: for example, the fact that there areso many landlocked countries on the continent.

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lt is almost certainly impossible to deal withall the intricacies of the transport sector in the 71ACP countries in a single feature. Transport is ahuge subject with a great many sub-sectors. Butwider lessons can be drawn from looking at specificsituations – as can be seen from the texts of thosewho have contributed to this dossier. These au-thors are mainly specialists in urban or rural roads,air transport or maritime questions – all sub-sectorsthat are currently being re-assessed by the interna-tional community and national governments.

There is no doubt that a great deal has stillto be accomplished. Sub-Saharan Africa has about700,000 kilometres of trunk roads that need to bemaintained (out of a total network of more than1.2 million km). Both national authorities anddonor agencies devote considerable attention toinfrastructures though the resources at their dis-posal may be meagre. Transport is a key compo-nent in many structural adjustment programmes inACP countries. The result is that in certain states atleast, it is possible to travel comfortably and speed-ily on modern paved roads, between major centres.Similarly, transporting goods from seaports to theremote hinterland areas is becoming progressivelyeasier.

A great many criteria need to be taken intoaccount in planning transport infrastructure anddeciding where to invest. Variables include thetopographic features of the area to be served (is itmountainous or a desert region?), technical consid-erations (what is needed to maintain links in an


tures – including venture capital made available bythe European Investment Bank (EIB) and WorldBank funding. These are 'investment loans', whichincorporate significant reform measures aimed atdeveloping private sector operations. The stategenerally remains the owner of the infrastructurehaving ceded the operation and management tothe entrepreneurs.

Already, about 1200 schemes for private-sector involvement in managing transport-infra-structure have been identified in some 80 countriesworldwide (including 28 in Africa). Over the lastseven years, 32 ACP countries have employed vari-ous types of licencing, joint-management and leas-ing contracts. The continent's first railway conces-sion, covering the link between Côte d’Ivoire andBurkina Faso (Sitarail), is featured in the dossier. Sotoo is the work of ASECNA in the aeronautical sec-tor. This agency is responsible for managing theairspace of eight West-African states. As for roads,one of sub-Saharan Africa's first toll routes linksHillacondji with Cotonou (going from the Togoleseborder towards Lagos, the former Nigerian capital).This 'Transcoastal Route', that crosses Benin, ismanaged by a private company. We also featurethe innovative approach to road management inZambia.

There is a pressing and obvious need forbetter transport infrastructure in sub-SaharanAfrica and in the ACP countries in general. Thestructural transformation of a subsistence economyinto a market one depends crucially on this sector.The potential economic gains, in terms of produc-tion and revenue, will remain just that – potential –if the networks are not adequate, and to reach thisposition, substantial resources are needed. Thereneeds to be proper planning – at both financialand institutional levels – if the networks are to beproperly maintained and expanded. In short, thetransport sector must be an integral part of ACPcountries' global development strategies. Roads,ports and other transport facilities are essential de-velopment tools, and without the right tools, youcannot do the job.■ M.F.

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area subject to frequent and heavy rainfall?), polit-ical aspects (balancing the interests of differentpopulation groups), social concerns (access to hos-pitals and schools) and economic questions. Thelast of these is obviously crucial given the impor-tance of good transport facilities in facilitatingtrade – particularly in the new context of globalliberalisation.

During the 1980s, ECU 12 billion was invest-ed in the transport sector in sub-Saharan Africawith about a fifth of this total coming from the EUthrough the European Development Fund. A quar-ter of programmable aid has been allocated to thesector under the 7th EDF alone, and a look at themost recent ACP National Indicative Programmes(NIPs) for the Eighth EDF suggests that the trend iscontinuing. However, the scale of the challengeshould not be underestimated. The 1997 WorldBank report stated that sub-Saharan countrieswould have to allocate somewhere between$200bn and $250bn over the next decade for trans-port investment.

Private-sector involvementPrivate enterprise is increasingly becoming

involved in the management of transport infra-structure in the new free market era. This involve-ment can take various forms – for example leasingof facilities, joint management arrangements or li-censing contracts. Thus, airports, seaports, railwaysand even roads are becoming 'privatisable' sectors,at least up to a point. Maritime freight in WestAfrica, which has been opened up to heavy compe-tition since the sector was deregulated in 1992, is agood example. National shipping companies in anumber of countries have managed to exploit thenew environment, increasing their combined sharein the continent's maritime transport sector from10% to 20%. To safeguard their achievementssince 1993, shipping concerns have been demand-ing strict application of UNCTAD's '40/40/20' rule.This advocates an equitable share-out of maritimefreight between shippers from the developedcountries (40%), Africa (40%) and third states (upto 20%). This arrangement makes it possible to re-duce transport costs and improve maintenance ofnetworks, by making tariff-fixing more difficultand easing transport conditions.

The progressive transfer of the manage-ment, operation and maintenance of transport net-works to the private sector has a number of advan-tages which may not be entirely obvious at firstsight. For instance, it tends to result in higher pro-ductivity and improved service quality, leading tolower user costs and reduced public deficits. Specialcredit lines have been set up to encourage the pri-vate sector management of transport infrastruc-


Appropriatetransport

Decision-makerstoday are more conscious

of the need to match transport ca-pacity to the demands of the econ-omy and society. Transport mustalso be coherent with regional de-velopment strategies, regionaltransit agreements and in the caseof some modes, obligations underinternational agreements. Thismeans that investment decisionsare based on a more consistentand realistic needs-assessment ofeconomic and social sectors, andother development policies.

The days of supply-ledstrategies, when roads were up-graded to unnecessarily high stan-dards and railways expanded –often without regard to commer-cial demand – are almost past. Thesame is true of port modernisa-tions carried out in anticipation ofunrealistic trade growth, and over-sized international airports built tosatisfy a national ‘gateway’ image.These supply-led strategies had theeffect of paralysing transport net-works. Roads deteriorated rapidly,rail freight movements fell sharply,ports became congested and manyairports and airlines were broughtto the verge of bankruptcy. Trans-port agencies are, therefore, in-creasingly pursuing demand-drivenstrategies.

Another aspect gaining in-creasing recognition is the need to

involve all the stakeholders – whoinclude transport operators andunions, private sector users, localcommunities, farmers’ associations,and key government departments.Confidence and trust is builtthrough a continuous dialogue be-tween these actors and transportsector institutions, leading to bet-ter identification of what is appro-priate transport and a broadersense of ‘ownership’ in any re-forms that are adopted.

Extending such dialogue toneighbouring countries, in turn,fosters respect for regional and in-ternational transport agreements.This is particularly important forlandlocked states that depend onthe transport policies and proce-dures of the transit countries.Smaller islands are similarly depen-dent on the policies of larger is-land groups or nearby continentalcountries. Through regular consul-tation, issues such as the simplifica-tion of rules governing transit traf-fic and customs, health andimmigration procedures at bor-ders, are being tackled, thereby fa-cilitating regional integration.

It is essential that rural andurban communities define their

own transport needs. Widely dis-persed rural populations are gen-erally served by a large number ofroads and tracks – often five toseven times more extensive thanthe core road network. Meetingthe needs of the people who liveand work in these communities de-pends more on local consultationthan on the standard method forforecasting transport flows. More-over, non-motorised transportdominates in rural areas and thevolume of motorised traffic is gen-erally low. Design standardsshould reflect the requirements ofthese principal users rather thanthose of the occasional motor ve-hicle. Rural communities, often faraway from effective governmentsupport, play a greater role in theoperation of rural transport sys-tems, particularly maintenance.Consequently, governments shouldconcentrate on helping rural com-munities to keep their roads andtracks open to all traffic (particu-larly non-motorised) by giving pri-ority to bridge and culvert mainte-nance, as well as localised roadimprovements.

Providing transport inurban areas is more complex. Keyaspects here include a high popu-lation density, inefficient public

Adapting transport services to meet the needs of achanging worldThe key to a flourishing economyand societyby Bruce Thompson*

Farmers, industry, commerce, tourism and their workers, as well as people in rural and urban areas, want ap-propriate, affordable transport. Roads, railways, ports and airports are vital for a flourishing economy, andfor ensuring education and health services are available to all. At regional level, transport facilitates the flowof goods and people along import-export corridors, while bringing the people of neighbouring countriescloser together. But simply building transport systems is not enough. People rightly expect transport to re-main in a serviceable condition. It is, therefore, essential to build systems that are economically, financially,and institutionally sustainable, as well as environmentally sound and socially acceptable.

* Principal administrator dealing with trans-port policy in the Development Directorate-General of the European Commission (DG VIII).

Involving users through Roads BoardsGovernments clearly accept the rationale of involving users and beneficia-ries in carrying out reforms and improving management of road networks.Several African countries, for example, Benin, Zambia and Ethiopia, have es-tablished or re-instituted Roads Boards. This enables users, who pay for roadmaintenance, to influence policy. They can become involved in strategiesdesigned to ensure that road networks respond to demands, that action istaken according to agreed plans and that there is proper monitoring. Gov-ernments are also finding user involvement especially helpful when it comes

to increasing user charges or other fees. Bringing together representatives of in-dustry, farmers, construction organisations, transport service operators andhauliers alongside the road agencies, creates confidence and makes stakeholderstake their individual and corporate responsibilities seriously.

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transport, insufficient provision fornon-motorised traffic and pedes-trians, and a greater concern forpersonal safety. Also, in urbanareas, the differing transportneeds of men and women tend tobe accentuated. To respond towomen's needs, there is certainly arequirement for better and moreefficient public transport, particu-larly outside peak hours. The poor,meanwhile, can rarely afford pub-lic transport and are more likely towalk or cycle on inadequate andinsecure footpaths and tracks. Thisnon-motorised traffic accounts for80% of journeys in urban areas.Cities must, therefore, give higherpriority to providing an inexpen-sive and safe infrastructure forthese non-motorised ways of get-ting around. When this happens,the mobility of the poor will begreatly improved.

Affordable transport

Governments in both in-dustrialised and developing na-tions are striving to achieve theright fiscal balance in the face ofcompeting economic and socialsectors. Achieving this depends ona country’s overall financial re-sources and trade-offs betweensectors. It is necessary to take ac-count of the long-term viability ofthe macro-economic framework,and to arrive at an appropriate dis-tribution between recurrent andcapital expenditure. Specifically inthe transport field, the recurrentcost implications of capital expen-diture must drive the decision-making process if investment in in-dividual transport modes is to beoptimised.

Worldwide experienceshows that maintenance comesfirst. It must take precedence overinvestment in upgrading or newinfrastructure and equipment. Thebasic rule is to build infrastructureto appropriate standards that canbe affordably maintained. Thismeans using the minimum realisticstandards to satisfy demand whilegiving priority to maintenance. Insome cases, this may involve reduc-ing the service level of some partsof the network, or even reducingits size to a maintainable core.Putting maintenance first helpsidentify an affordable network

that satisfies the country’s econo-my and facilitates delivery of es-sential services to the rural andurban population.

Building and maintainingtransport infrastructure, especiallysecondary and rural roads, canoften be satisfactorily carried outby labour-based methods. Theseare no longer seen as purely man-ual activities. With simple equip-ment, these approaches can com-pete with plant-intensive methodsand create long-term employment.When correctly applied, they canalso lower costs.

SustainabilitySustainable transport is es-

sential for delivering continuousbenefits to stakeholders. Withouttransport sustainability, economicgrowth will falter and people’s ac-cess to education and health willdecline, leading to the poor be-coming poorer.

Economic sustainability

This means ensuring thatthe sector’s financial needs are re-flected in the national budget, ona long-term basis. In this respect,the transport sector is learningfrom the structural adjustmentprocess. By participating actively inpublic expenditure reviews, trans-port decision-makers are able totake account of the overall fiscalconstraints and influence intersec-toral trade-offs, allowing them todefine a medium-term strategy forfinancing transport.

With increasing competi-tion between transport modes,governments and private opera-tors are increasingly aware of theimportance of having competitionon a 'level playing field'. Getting

prices right is vital in rationalisingtransport demand, particularly be-tween railways and roads. Under-pricing roads at the point of usedistorts demand, while unrealisticcharges may accelerate the declineof the railways. It is essential,therefore, for governments andthe private sector to review tariffsand fares regularly, to promoteequitable competition.

Governments are oftenfaced with the thorny issue of sub-sidies. Long distance passengertrains, for example, may be com-mercially unviable if passengerscannot afford to pay the fares re-quired to achieve full cost-recov-ery. At the same time, discontinu-ing the service may be sociallyunacceptable. In such circum-stances, railways or governmentsmay choose to provide financialsupport. Whatever the source,however, subsidies should alwaysbe targeted at particular groupsand should not undermine com-mercial operations.

Financial sustainability

This depends on having se-cure and sufficient finance, and onusing the funds efficiently. Com-mercialisation and privatisationenable transport networks to beoperated more efficiently, con-tribute to better maintenance anddeliver ongoing benefits to stake-holders.

If railways, ports and air-ports are to survive in the longerterm, they must move into conces-sioning, involving the private sec-tor. Railway companies are alreadydivesting their non-railway opera-tions and contracting more ser-vices out to private enterprise

Railway companies are increasingly contractingservices out to private enterprise.


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(such as ballast supply, catering,track repair and maintenance).Maintenance contracts for rollingstock are also becoming more pop-ular with effective schemes inKenya, Mali and Senegal. The nextstage, which some railways areembarking on, entails moving tolong-term concession agreementscovering core rail services as wellas rolling stock and infrastructuremaintenance.

Maritime and inland portspresent a similar picture, with theintroduction of concessionarrangements for cargo handling(especially containers) and theleasing of berths. Airports toohave a growing number of priva-tised services covering areas suchas baggage handling, catering andmaintenance, and some are offer-ing short-term management con-tracts. There is, however, consider-able potential for extending theprivatisation of airport services (in-frastructures, operations andmaintenance), particularly inFrench-speaking Africa.

Roads offer more of a chal-lenge. Concessionaire arrange-ments are only available in a fewdeveloping countries, where trafficvolumes are high enough to makethem viable. It is, therefore, diffi-cult to bring charging for road usedirectly into the commercial sector.However, in most developingcountries, budgeted funds seldomcover more than half the mainte-nance requirements, and in thesecircumstances, road agencies haveturned to raising revenue fromusers on a 'fee for service basis.'This income is channelled to a ded-

icated road fund, governed by amanagement board that includessignificant private sector represen-tation.

Institutional sustainability

In order to ensure this,transport needs to be managed asa business, not as a bureaucracy.As a general principle, policy andregulation should remain in thegovernment domain. This providesan opportunity for more privatesector involvement in any residualmanagement carried out by gov-ernment on a commercial footing.

Reform must start in thepublic sector and this first stage in-volves clarifying the responsibili-ties and tasks of different andoften overlapping agencies in-volved in transport. Where possi-ble, responsibility for various oper-ations should be transferred toautonomous agencies or the pri-vate sector. This will help close thegap in remuneration between theprivate and public sectors whichhas widened over the last 20 years.Such reforms would motivate staffand raise professional standards.

Governments, however,will need to retain authority to ap-prove operating contracts, monitorperformance, and where neces-sary, fund obligatory services. Thisrequires a suitable mix of skills tocarry out planning, contract man-agement, monitoring, supervisionand regulation. Working in thisnew public-private environmentmeans, moreover, that govern-ments must adopt more commer-cial management attitudes.

Railways, ports and air-ports should be managed commer-cially. Railways corporations, inparticular, face increasing competi-tion from roads. The operators re-alise that if customers' needs arenot met, their share of traffic willdecline leaving them with no op-tion but to close. Marketing im-provements must, therefore, leadto better quality services, withflexible tariffs for small and largecontracts that suit customer re-quirements. Concessionairearrangements are proving to be aviable option.

Ports and airports authori-ties need full autonomy to survivein an increasingly competitive en-vironment. Technology advancesin ship and aircraft construction,and in cargo handling facilities,are leading to an increase in com-petition between large and smallports, which means that opera-

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Technology advances in cargo handling facilities,are leading to an increase in competition between

large and small ports.

Road funds: managing finance for maintenanceRoad funds receive revenues from road user charges, which include mainte-nance levies on fuel, bridge and ferry tolls, vehicle licence charges and inter-national transit fees. The fuel levy generally contributes about 80% of therevenue. An empirical figure of US$ 0.10 per litre is set as a target to ensureoperation and maintenance of the core road network. African countries ap-proaching this target include the Central African Republic, Mozambique,Sierra Leone and Tanzania.

Road funds must have a management board with a clear mandate relating to oper-ations and the delegation of the road fund administration. This makes it easier tocounter wider government interference. Together with substantial user representa-tion on the board, the effect is to reduce the risk of road funds being misused. Userrepresentation also makes it easier to conduct regular reviews of user charges andthe funds’ revenue base.Collection, allocation and disbursement of funds must be kept simple. Ideally, therevenue should pass from collection points direct to the fund's own separate bankaccount. Allocations for main, rural and urban roads are best agreed at a centrallevel and disbursed to the road agencies directly responsible for the road fund. En-suring the smooth working of these mechanisms requires regular financial and tech-nical audits.


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tions need to be made more effi-cient. Authorities, therefore, mustbe cut loose from the multitude ofgovernment agencies, and begiven the power to control chargesand tariffs, labour levels and thecontracting out of operations tothe private sector. Commercial suc-cess also requires a managementboard whose members have exten-sive business experience and whocan adapt to privatisation.

Road management andmaintenance improves when theprivate sector is involved. Contract-ing out services and works to pri-vate concerns is becoming morecommon and, in nearly all cases, isproving more cost-effective. It alsoproduces better quality resultsthan when government-employedand supervised labour is used. Thecontracting out of design and su-pervision services is standard inmost countries, giving road agen-cies the flexibility to call on exper-tise which is too costly to maintainat public expense. There is an addi-tional gain from contracting out ofbuilding capacity in the local con-sulting and contracting industry,which is a prerequisite for institu-tional sustainability.

Environmentally sound transport

Transport brings enormousbenefits to society, but inappropri-ate systems can damage the envi-ronment in which people live andwork. Air pollution from vehicleexhausts, and noise pollutionaround airports and from road andrail traffic is steadily increasing.Towns and cities face greater con-gestion on already crowdedstreets. Ports threaten the marineenvironment. Whether transportcan be environmentally sustain-able is a moot point, but transportprovision must be environmentallysound to avoid long-term damage.

Steady progress is beingmade in reducing vehicle emissionsthrough improved engine designand the introduction of lead-freepetrol. These direct measures needto be backed up by regular vehiclemaintenance, and a willingness onthe part of governments to set andenforce minimum standards. Al-though environmental norms andregulations are being updated, theenforcement record is not encour-aging. Furthermore, the ecologicalconsequences of urban transportmust be built into urban policy, sothat both motorised and non-mo-torised transport modes are opti-mally used in reducing pollution.

Measures to reduce traveland ease congestion start with in-tegrating transport planning intourban land-use, not only for rea-sons of economy, but also to con-serve the environment. Traffic

flow can be improved in somecities by street-widening andbuilding more roads. In others it isa question of getting the existinginfrastructure to carry more traffic.Capacity can be increased throughbetter traffic management involv-ing bus and cycle lanes, one-waystreets and synchronised trafficlights. Urban authorities, however,have to deliver a multitude of ser-vices, of which transport is justone, and their capacity for operat-ing and maintaining such systemsis limited.

With insufficient resourcesto tackle congestion and an inabil-ity to prevent rules being circum-vented, many municipalities areopting for demand managementmeasures. These include parkingrestrictions in certain areas, effortsto limit private car circulation, andcurtailing the access of goods vehi-cles to congested areas duringpeak periods. Many of these mea-sures have only limited success be-cause of inadequate enforcementand because they are not accom-panied by effective improvementsto public transport. And while de-mand management may bringshort-term benefits, more funda-mental measures are needed tolimit energy consumption, andthus pollution.

A generally accepted prin-ciple nowadays is that the pollutershould pay. To date, few countrieshave introduced emission charges,preferring to use fuel taxation as asurrogate. But more sophisticatedapproaches are now being dis-cussed. Singapore, for example,has demonstrated the technicalfeasibility of electronic pricing andsimilar pricing controls have beenintroduced in Stockholm. Howev-er, it would be premature to repli-cate these in many cities of the de-veloping world. Given that thecost of fuel in developing coun-tries is, on average, half that ofthe industrialised nations, themost practical option is still tocharge private motorists throughhigher fuel prices.

Socially acceptable transport

Society has not always ben-efited sufficiently from transportinvestment – with the poor bene-fiting least of all. Improvements

Private sectortakes over railwaysoperationsA private company has beengiven responsibility for railwayoperations in Côte d’Ivoire andBurkina Faso under a franchis-

ing agreement. With mostly privateshare capital, the firm has been fran-chised to operate and maintain therailway for 15 years. The railway prop-erty, infrastructure and rolling stockare owned by two parastatal compa-nies.

Awarded by competitive tender, theagreement settled the crucial issues ofinvestment, the franchise fee andstaffing levels. The franchise feestrikes a balance between providingan adequate income to the two coun-tries and being affordable to the fran-chisee. Commercialisation has led to adrastic cut in staffing levels. Redun-dant workers are being assisted bydonors who are also financing railwayrehabilitation.

Reforming the railways is a formidabletask. This example of public-privateparticipation pioneers a reversal ofthe economic decline of the railwaysand may well be a model for rail sys-tems elsewhere.

Roads also need to bemanaged as a business, somethingwhich entails radical reforms. Ingeneral, there are too many bod-ies responsible for roads (as manyas 650 in Nigeria, for example).The first step is to clarify 'whodoes what.' This means giving thedistricts the task of looking afterrural roads, with main routes gen-erally remaining under a centralagency. Urban roads are dealt withby local authorities. Responsibilitymust then be matched with re-sources and authority, otherwisemanagers will not be able to per-form. Whether managed by thepublic sector or autonomous agen-cies, the responsible agency mustadopt commercial attitudes andsystems in respect of areas such asmanagement, accounting and au-diting.


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aimed at reducing travel costs andincreasing access to employment,health and education services havenot always made travel safer, norcreated sufficient long-term jobs.Ways need to be found to maketransport more socially acceptableand to spread the benefitsthroughout society.

Road accidents are a seri-ous problem which should not beunderestimated. In addition to thehuman suffering they cause, theyimpose a financial burden in manydeveloping countries which can beas high as 1% of GDP per year. Ex-cessive speed, poor driving stan-dards, vehicles overloaded withpeople or goods, and inadequatemaintenance add up to a fatalcombination. And poor people arethree times more likely to die in aroad accident than those in themiddle-income group. Understand-ably, most accidents occur in urbanareas, with pedestrians and cyclistsparticularly vulnerable.

Government road safetyunits must support measures to im-prove vehicle maintenance stan-dards and driving behaviour. Thiscan be achieved by updating regu-lations to reflect the vehicles in useand through the uniform enforce-ment of the rules. To improve dri-ver behaviour and pedestrianawareness, there is a need forhigher standards in drivingschools, public safety campaignsand more safety education inschools. Many developing coun-tries have introduced seat belt reg-ulations but have not yet tackledthe serious problem of 'drinkingand driving'. Improvements in allthese areas will not only reducecosts, but relieve the extra familyhardships that accidents cause, es-pecially for the poor.

While rail, sea and air acci-dents are less common, the conse-quences of a single incident arelikely to be more disastrous thanany one road accident. Railwaycrashes are caused by overloading,excessive speed and inadequatemaintenance. Rail companies mustbe vigilant when loading wagonsto ensure axle loads and loadinggauges are respected. Thereshould also be regular track in-spection and maintenance, partic-ularly to prevent accidents involv-ing passenger trains.

The risk of accident incoastal waters and port approach-es is growing because of a short-age of operational aids to naviga-tion and the unreliability ofexisting navigation aids. Ports au-thorities need to live up to thestandards set by the InternationalMaritime Organisation. Similarly,public confidence in air travel re-lies on good safety records. Adher-ence to international standards,ranging from air traffic control toairport navigational aids, laiddown by the International CivilAviation Organisation, is vital.

As private sector involve-ment in transport increases, em-ployment opportunities in thepublic sector are diminishing. Toreduce social hardship, jobs mustbe created in the private sector forboth men and women. Jobs are re-quired at all levels, but the great-est need is found among the semi-skilled and unskilled labour force.Small and medium sized contrac-tors, therefore, need to to be sup-ported, and offered training in theuse of labour-based methods.Many countries have successfullycontracted work to entities rang-

ing from single-person contractorsto medium-sized firms, thus creat-ing long-term employment for thepoor.

Growth in EC support fortransport initiatives

Transport is receiving morefinancial support from the LoméConvention in the period 1995-2000. An examination of the pro-gramming that has taken placeunder the 8th European Develop-ment Fund (EDF) reveals thatabout a third of national and re-gional indicative programmes havebeen allocated to transport (ap-proximately ECU 2.5bn). This is al-most as much as was spent be-tween 1975 and 1990 under thefirst three Lomé accords.

Since the 1980s, donorshave invested some ECU 12bn insub-Saharan Africa’s transport net-work, mostly on rehabilitatingroads. About 20% of this invest-ment has come from the EuropeanUnion via the EDF. This makes theCommission one of the leadingdonors in this region of the world.

The Commission, alongsidethe EU's Member States and otherdonors (principally, the WorldBank) has worked with ACP statesto develop a sectoral approachwhich is demand-driven and strivesfor sustainability. Many countriesare following this approach al-though at different speeds andwith varying degrees of success.Experience shows that it will taketime to achieve sustainable trans-port, and there is still much to do.But there is no doubt that thosestates making genuine efforts toreform, and progress towardssustainability, are proving moresuccessful in attracting donorfinance. This is bringing real bene-fits to their economies andsocieties.■ J.B.H.T.

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In developing countries, the financial burden ofroad accidents can be as high of 1% of GDP.


The effective and efficient provision of infra-structure underlines all attempts to reducepoverty. Trade is the engine of economic growthand reliable and efficient transport is a requiredingredient for it to be successful. It is needed tofacilitate production and exchanges; to enablefarmers to produce and bring their products tomarkets; and to provide the underpinning forprivate investment. The poor state of transportinfrastructure is a key obstacle to Africa’s devel-opment and a major constraint to poverty reduc-tion.

The visionA basic cause of poor past performance in

transport has been inadequate institutional incentivesfor improving the provision of infrastructure and ser-vices. To promote more efficient and responsive ser-vice delivery, incentives need to be changed throughcommercial management, competition, and user in-volvement. Establishing a new culture in developingAfrica’s transport infrastructure will therefore be at apremium. This would involve a learning process thatwill lead to a paradigm shift in governments' under-standing of the role they should play in transport pro-vision. Global experience has proven that adequateinfrastructure is a prerequisite for the massive privateinvestment that is badly needed in Africa. Thus, evenif the public sector could manage transport infrastruc-ture effectively, there will be a need to turn increas-ingly to the private sector to finance it. The vision ofchanging the culture of transport infrastructure provi-sion will eventually lead to an increasing role for theprivate sector.

Shifting the responsibility in this way will re-quire a rethinking of the nature of public-privatepartnerships and of central-local government partner-ships. These could be built out of multilevel ties con-sisting of entrepreneurs and financial and public insti-tutions, all of which should include local and foreignexpertise and participants. While the most visiblepartnerships will continue to feature central govern-ments and large foreign partners, it is essential to de-velop ways of involving small and medium-sized localentrepreneurs in the process of transport infrastruc-ture provision – to give local economic actors a stake.In many cases, this will involve finding different waysof dealing with rural transport infrastructure provi-sion and of involving local governments in the man-agement and financing of infrastructure. The build-upof mutual trust among the public and the private sec-

tors – foreign and national, central and local, largeand small – is essential for fruitful cooperation lead-ing to a substantial improvement of the products andservices provided.

Introducing the private sector into manage-ment and financing of transport infrastructure inAfrica cannot be approached as a classical private sec-tor development case. It requires special attention inaddressing issues associated with the public-privatepartnerships existing in the region. Transport infra-structure investments in Africa are sometimes vulnera-ble to political risks including governments' renegingon their regulatory commitments. Establishing an ad-equate legal and regulatory framework will helpbuild trust with the business community and specifyclear rules and procedures to be applied. This frame-work would ease the constraints on mobilising localfinance by introducing risk reducing mechanisms.

Rethinking public/private partnershipsAs countries around the world attract an ever-

increasing amount of foreign private investment in in-frastructure, Africa lags behind. Since infrastructureprivatisation there is in its initial stages, an under-standing of the region’s private participation in itsprovision needs to be enhanced, and the demand andpotential for successful private/public partnershipsidentified. The importance of this issue is reflected inthe World Bank’s dialogue with the governments, es-pecially regarding the fiscal constraints most of themface. Global experience shows that capital tends to beextremely selective in choosing its markets and needspreliminary conditions which, in most cases, do notexist today in Africa.

Most African markets are not big enough toattract private investment. This lack of interest islargely attributed to low per capita income – com-bined with low growth rates which means it is unlike-ly there will be a substantial increase in purchasingpower in the near future. On top of this, the region’sintegration is in its infancy. Experience, mainly in Asiaand Latin America, has proved the importance inte-gration plays in extending the possibilities of attract-ing investment. Transport infrastructure could have asubstantial impact on regional trade, economicgrowth and poverty reduction.

Eliminating the pervasive restrictions on pri-vate sector participation in transport infrastructurewould improve legal and regulatory frameworks,which are inhibiting the liberalisation and privatisa-tion of Africa’s infrastructure. There is a generalawareness of the urgent need to establish supportive

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A view from the World Bank on developingAfrica’s transport

by Véronique Jacobs*

* World Bank Group

transport infrastructure, since local financing sourcesare unlikely to be adequate to meet the needs.

As local governments are permitted to raiserevenues through taxes and borrowing, an appropri-ate system should be put in place to incorporate effi-ciency and equity goals. Such a system can operate ef-ficiently by emphasising such crucial points as:transparency to make transfers clear and visible, pre-dictability to permit strategic planning, and autono-my to ensure independence and flexibility of sub-na-tional governments in setting their priorities andtherefore establishing the demand.

The evolving role of the World BankGroup

At the country level, World Bank assistance totransport mostly takes the form of IDA lending for

the sustainable develop-ment of physical infra-structure (mainly roads,but also railways andports). This support is in-creasingly formulated incooperation with otherdonors in the form ofpluriannual sector invest-ment programmes (SIPs).Bank assistance to trans-port is, nevertheless,framed into comprehen-sive Country AssistanceStrategies (CAS) formulat-ed with stakeholders andemphasising corporate re-structuring, private partici-pation and regulatory re-form. At the regionallevel, the Sub-SaharanAfrica Transport Policy

Programme (SSATP), an initiative in which the WorldBank is a main partner, assists in improving transportsector performance by promoting policy reforms andinstitutional changes. The programme is now widelyrecognised as a cooperative process to foster policydevelopment and knowledge exchange, as well as acatalyst for capacity-building efforts.

The World Bank Group is evolving with itsclient countries. Their needs and emphases changeand the Bank strives to provide the tools to meet theirdemand. The Group and its constituent agencies – in-cluding IBRD, IDA, IFC and MIGA – use a variety of in-struments to support promising transport projects andprogrammes, such as economic and sector work, pub-lic expenditure reviews, technical assistance, adjust-ment operations, guarantees for mitigation of non-commercial risks, equity participation, andpromotional activities.

In the end, however, the tools are only themeans to reach an end – which is to improve signifi-cantly peoples’ well being.■ V.J.

public institutions and create a sound regulatoryframework to ensure the effective operation of publicenterprises. Increasing attention is given to the crucialrole these institutions play in a commercial and mar-ket-oriented environment and the need to strengthentheir regulatory capacity.

At a time when resources devoted to foreignaid worldwide are stagnating, the significance of cofi-nancing increases. The World Bank’s role of assisting arecipient country in developing a viable financingplan which identifies potential cofinanciers is grow-ing. The role of project finance in development hasbeen expanding rapidly in some regions, although ithas not yet been rooted in Africa on a large scale. Forgovernments in the region to attract more project fi-nance, it might be necessary for them to make com-mitments, in the form of concessions, guaranteemechanisms, and a busi-ness-oriented environmentthat will reassure the pri-vate sector of their realcommitment to changes inthe initial period. In orderto improve its service, theBank is searching for bet-ter ways of learning about,providing, and managingnon-lending services whichwould help our clients toidentify and negotiate co-financing projects with pri-vate financial institutions.

Revisitingdecentralisation

Evidence is mount-ing that government pro-grammes work betterwhen they seek the partici-pation of potential users, and when they tap the com-munity’s reservoir of social capital rather than work-ing against it. The benefits show up in smootherimplementation, greater sustainability, and betterfeedback to government agencies.

Decentralisation is a multi-dimensional processthat proceeds with success and setbacks. Initiatives todecentralise the process of decision-making in Africahave evolved around three main dimensions – politi-cal, fiscal and institutional. The importance of thesecomponents is widely recognised. But their structureand internal relationship are seen as complex andtherefore, they require thorough analysis. The decen-tralised institutions will need to build up municipaland financial competences – or find ways to contractthem out – to cover the costs of providing rural publicgoods and services. There are three main sources ofrevenue: locally-generated resources, transfers fromhigher-level institutions such as intergovernmental fis-cal transfers, and external resources (such as grantsand loans). In the highways sector, the Bank estimatesthe road maintenance requirements and ensures thatthey are included in national budgets and financed. Asimilar approach is needed for municipal and village


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Excerpt from an address to the UN Economic Commission for Africa by JamesWolfensohn, World Bank President (AddisAbaba, January 27, 1998)

But what do we see when we look at Africa? Wesee that (it) is missing out. Of $300 billion in totalforeign private capital flows, sub-Saharan Africa

received about $12 billion. And of that, only $2.6 billionwas in direct investments - a trivial (amount) in relationto the size and potential of this continent. But we alsohave to face facts. It is not just because the privatesector is myopic that less than 1% of direct investmentcomes to Africa. Africa needs to set itself up to attractprivate investment and that means a clean regulatoryenvironment; it means a judicial system that works; itmeans property rights, corporate law, predictability intaxes... In relation to governments, it means capacity-building, health care and the infrastructure necessary togo along with it. And it means corruption must bestamped out. Without these, private investors simplywill not invest.


The importance of transportto development is unques-tionable. The massive in-vestment in roads and mo-torised vehicles in deve-loping countries in recentdecades is clear evidence ofthis belief. However, inmany developing nations, acombination of deteriorat-ing economic conditionsand a crippling scarcity offoreign exchange meansthat governments are in-creasingly unable to deal

with transport problems in ruralareas. One consequence has beenthat development planners – look-ing to rationalise transport-relatedinvestments and promote employ-ment – increasingly emphasise theuse of locally-available resourcesfor improving and maintaining theinfrastructure. At the same time,decentralised and participatory ap-proaches to transport and infra-structure improvements are beingencouraged.

Since the mid-1970s, the In-ternational Labour Office (ILO) hasbeen in the forefront of efforts topromote the effective use of localresources for rural road improve-ment and maintenance, helping toreorient technical ministries to-wards the efficient use of labour-intensive methods. This work, car-ried out in more than 30developing countries, has clearlydemonstrated the technical andeconomic competitiveness of suchmethods for most major construc-tion activities (clearing, excavation,etc.). Provided that the projects arewell-managed and that wage levelsfor unskilled workers do not exceedUS$4 a day, it is an effective strate-gy in terms of cost, quality andspeed. This article looks at the ap-proach that the ILO has developed,involving both the public and pri-vate sectors, in improving rural

transport infrastructure using localresources.

Not just roads

It is also increasingly clear,however, that roads by themselvescannot solve the transport needs ofrural populations. Surveys on trans-port demand in rural areas showthat most travelling occurs off theroads – on paths and tracks withinthe locality, and on foot. They alsoreveal that the bulk of transportmovements are related to domesticactivities and involve women. With-in the framework of its Employ-ment-Intensive Programme (EIP),the ILO therefore began supportingprojects that respond to the actualtransport needs in rural areas.These entail the introduction of ac-cessibility planning tools and an ap-proach to implementation whichencompasses a wider range oftransport interventions. The latterinclude improvements to paths andtracks, the provision of intermedi-ate means of transport, and thebetter location of essential ruralservices and facilities, to comple-ment conventional interventions in-volving roads and motorised vehi-cles.

Initially, ILO work on theuse of labour-based methods forroad improvement and mainte-nance emphasised the establish-ment of systems and procedures,and the training of staff to allowefficient implementation by the rel-evant government agencies. Duringthe last decade, the developmentof a local contracting industry, ca-pable of mobilising and utilisingthese local human and material re-sources, has become an importantway of promoting employment andimproving efficiency. Developmentprojects using labour-based roadcontractors illustrate that localbusinesses can make an importantcontribution to job creation, skillsdevelopment and economicgrowth. At the same time, progress

can be made in the areas of workerprotection and conditions of workfor temporary employees.

Labour-based road projectsin dispersed rural areas can providean excellent opportunity for localcontractors to progress from small-scale building works into road re-habilitation and maintenance. Theinitial capital investment requiredfor this kind of work is significantlysmaller than for equipment-basedapproaches. Relatively simple froma technical standpoint, labour-based methods are particularly suit-able for small local firms. The latterhave limited mobilisation costs,know the prevailing conditions andtraditions, and are consequentlywell-placed to make good use oflocally available human and materi-al resources. Small firms are alsomore likely to generate local em-ployment, utilise materials avail-able in the vicinity, and provide acontinuing resource for building,maintenance and gradual upgrad-ing.

Work carried out by the ILOand the World Bank has shownthat constraints on the use oflabour-based techniques by the pri-vate sector have more to do withthe general problems faced bysmall-scale contractors than withany basic difficulty with the tech-niques themselves. Contractors facea variety of problems related to ob-taining credit, keeping an ade-quate cash flow, being paid ontime and operating within very de-manding contractual regulations.These problems exist whatever thetechnology employed. Any agencyaiming to develop the capacity ofsmall-scale contractors must, there-fore, help them overcome such dif-ficulties. Accordingly, contractordevelopment projects in this fieldshould involve and train the busi-ness community and the responsi-ble government agency in the jointimplementation of labour-basedroadworks, while developing a sup-portive policy environment and in-troducing simple and effective ad-ministrative and contractualprocedures. The keystones of such astrategy are institution develop-ment, business management andtechnical training, demonstrationand the introduction of transparentand streamlined procedures (such

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meet the needs of ruralareasby Jan de Veen*

* Development Policies Department ILO,Geneva.

as for payment, certification andcontract awards).

If programmes of this na-ture are to be successful and sus-tainable, it is vital to establish a rel-evant training programme for bothpublic and private sector trainees.Management and technical train-ing for higher and medium level su-pervisory staff (or, in the case ofsmall contractors, the contractorhimself or his site agent) is ab-solutely indispensable. The pro-gramme will also need to train highlevel staff in the supervising agencyto prepare for and manage the bid-ding process, review bids, negotiatecontracts, and supervise work inprogress. Furthermore, in the pilotstage, tools and light equipment ofappropriate type and qualityshould be procured, with mecha-nisms established to make theseitems available to the contractors.Productivity and cost data need tobe collected in order to set accept-able unit rates. Finally, steps shouldbe taken to ensure adequate localand external funding to replicatethe pilot operation on a largerscale.

Working conditionsThere are risks in using em-

ployment-intensive methods. Sim-ply to introduce them without con-sidering labour issues, may lead toabuse and exploitation, thus jeop-ardising the wider-scale applicationof such programmes in the longterm. In this context, the gradualintroduction into contract docu-mentation of a number of the ILO'sfundamental standards – dealing,for example, with minimum work-ing age, minimum wages, insur-ance, and equal treatment of fe-male and male workers – will be ofthe highest priority. When the pri-vate sector is involved, particularefforts should be made to safe-guard basic labour standards.Strategic use of the tendering andcontract system will enable the pro-motion of improved working condi-tions for the large numbers of un-skilled, temporary staff employedin these programmes by smallfirms.

Labour-based road projectsimplemented through the privatesector should aim to develop andintroduce simple contract docu-

mentation with appropriate clauseson the treatment of workers, andshould encourage the formation ofcontractors’ and workers’ associa-tions. ILO-supported contractortraining programmes have alreadyresulted in the creation of labour-based road contractor associationsin Ghana, Lesotho and SierraLeone.

In order effectively to ad-dress the most common accessneeds of rural people (to water,firewood, farms, markets, healthfacilities, grinding mills, schools) awider scale of transport interven-tion is usually necessary. Decisionsabout such interventions shouldnot come from the top-down, butrather with the active participationof the rural people involved, andafter access needs have been iden-tified through household surveys.The resulting investment decisionscould include funding work ontracks/footpaths, intermediatetransport and services, to comple-ment transport by motorised vehi-cles and investments in rural roadconstruction. Through field pro-jects, an Integrated Rural Accessibil-ity Planning (IRAP) methodologyhas been developed and tested forthis purpose. Based on an assess-ment of access problems faced byrural households, IRAP is a tool forlocal-level planning of infrastruc-ture investment and the productionof development plans.

In general it is found thataccess problems can be approachedin two complementary ways: by in-creasing mobility through an im-proved transport system; or by lo-cating facilities and services closer

to the people. Both can result inimportant savings for the beneficia-ries. Projects in Malawi, Tanzania,Laos and the Philippines have nowintroduced the IRAP methodology.The operational system to translatethe plans into action should includethe signing of participatory andcontractual agreements with com-munity-based organisations, eco-nomic interest groups, small con-tractors and village developmentcommittees. All these local stake-holders have their economic andsocial interests and should there-fore play an important role in thedesign, programming, implementa-tion and maintenance of the worksto be undertaken. This is all themore important because the invest-ment funds available for rural in-frastructure at local level are usual-ly extremely limited. A much betteroperation and maintenance of localinfrastructure can be ensured whenthe stakeholders have been in-volved from the beginning.

Huge potentialThe project experience

shows that the potential forlabour-based technologies is huge,particularly in rehabilitating coun-try roads and for all types of main-tenance in urban and rural situa-tions. The changing socio-economicenvironment in many developingcountries in the 1990s strongly un-derlines the need to create produc-tive employment and to give priori-ty to programmes that utilise localresources for infrastructure con-struction and maintenance.


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Labour-based strategies can be effective in termsof cost, quality and speed.


A number of factors influ-ence the choice of technology forany given construction project: thedesign; the site conditions; theavailability and motivation of theworkers; the quality standards tobe applied; the required speed ofconstruction; and, finally, the costsof the various approaches. The de-cision in principle as to whethermanual workers or heavy equip-ment should be employed in exca-vating and shaping the road can betaken following a broad analysis ofthese factors. It should be recog-nised that labour-based methodscan achieve high quality and highproductivity when the labour forceis complemented with carefully se-lected light equipment for opera-tions that are difficult for manualworkers to carry out unaided (suchas rock excavation, compaction andhauling of materials over mediumor long distances). The technicalperformance of labour-based meth-ods can be boosted substantially ifthis is done, at only modest extracost.

A labour-based road pro-ject carried out using the privatesector, in a country where no do-mestic capacity exists in this area, iscomplex. Because of this, three tofive years should be allowed for itto be developed into a large scaleprogramme. A relatively long sup-port period is also needed becauseof the financial exposure of thesmall contractor. While investing

capital in light equipment to com-plement labour-based operations,such operators are highly vulnera-ble to abrupt fluctuations in work-load. The projects must thereforeincorporate certain safeguards toguarantee an essential minimum ofwork for a specified period to firmsthat are performing to expectation.Contractors should be encouragedto diversify their activities as muchas possible. Buildings, small damconstruction and agricultural sec-tors could offer a varied and flexi-ble workload for efficient labour-based contractors.

Capacity buildingessential

Worldwide experience alsoindicates a growing need for insti-tution and capacity-building in thisfield. Both international and localconsultants, and contractors, willneed to know how to design andimplement different technologyoptions. Government agencies mustbe able to monitor and control dif-ferent technological approaches.An analysis of the lessons learnedfrom implementing the differentprojects and programmes shouldallow one to develop various mod-els for labour-based road contract-ing for countries with varying levelsof experience in private sectorworks. One must recognise that ifinstitution and capacity-buildingare neglected, and the working en-vironment is not modified to allow

the effective use of the new meth-ods, the results will inevitably be in-ferior, leading to failure in thelonger term. Policies on technologychoice and on creating an enablingenvironment for labour-based roadcontractors to compete effectivelyin an open market economy willneed to be developed and imple-mented. At the same time, initia-tives are required to expand knowl-edge of alternative technologicalapproaches within universities andlearning institutions.

As mentioned earlier, thegrowing involvement of the privatesector in this work increases the riskof worker exploitation, unless rele-vant labour regulations are devel-oped and applied. It is also neces-sary to improve the relevance ofnational labour laws to the type ofemployment provided in this field– involving large numbers of ruralpeople, many of whom have notbeen formally employed before.Worker and employer associationsand organisations will have an im-portant role to play here. A soon-to-be published ILO guide (seebox), sets out the current experi-ence of how labour issues are beingdealt with in employment-intensiveinfrastructure programmes, andgives guidance on how progress onstandards and working conditionscan be made with the involvementof the social partners.

Despite growing recogni-tion of the access problems facedby rural people in developing coun-tries, rural transport interventionsare still heavily focused on roadsand motorised vehicles. There isclearly a need to raise awareness ofother initiatives that could betaken to provide people with bet-ter access to essential facilities andservices. Improvements in the loca-tion of such basics as water sup-plies, schools and health services,combined with the upgrading offootpaths and the local manufac-ture of simple means of transport,will go a long way to address thereal transport needs of rural people– and usually at substantially lowercost than the construction of evenlimited stretches of rural road.Finally, increased participation bystakeholders at all stages of theprocess is the key to sustaina-bility.■ J.d.V.

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Selected bibliography

World Bank Transportation Staff and Consultants; B. Coukis. 1983.Labour-based construction programs: A practical guide for planning andmanagement. Oxford University Press.

G.A. Edmonds and J. de Veen, 1992. A labour-based approach to roadsand rural transport in developing countries. Geneva, ILO; InternationalLabour Review Volume 131 Number 1.

I. Barwell and J. Dawson, 1993. Roads are not enough: New perspectives on ruraltransport planning in developing countries. London, IT Publ.

M. van Imschoot and P. Garnier. 1993. The administration of labour-intensiveworks by contract: A practical guide. Geneva, ILO.

I. Barwell. 1996. Transport and the Village: Findings from African village-leveltravel and transport surveys and related studies. World Bank Technical Paper no.344. Washington D.C., World Bank.

E. Stock and J. de Veen. 1996. Expanding Labor-based Methods for Road Worksin Africa. World Bank Technical Paper No 347. Washington D.C., World Bank.

G.A. Edmonds. 1997. Accessibility planning: state of the art. Paper produced inworkshop report of IRAP Expert Group’s Meeting, Dhaka, Bangladesh, October1997. London, IFRTD.

D. Taijgman and J. de Veen (Due in 1998). Employment-Intensive InfrastructureProgrammes: Labour policies and practices. Geneva, ILO.


The rapid growth in roadconstruction that took placein many developing coun-tries between 1960 and 1970brought about considerableexpansion of road infrastruc-ture which subsequently,from the 1980s onwards, fellinto disrepair through lack ofmaintenance. The damage isoften so severe that ordinarymaintenance will no longersuffice and if roads are to befully restored, rehabilitationor even reconstruction workis necessary, at a cost three

to five times higher than that ofpreventive maintenance.

The consequences of thispoor state of the roads are bornedirectly by the road user and theconsumer. In Africa, each dollarsaved in the road maintenancebudget represents an additionalexpense of two to three dollars onvehicle operating costs. The in-crease in transport costs can alsohave a considerable impact on theprice of some consumer products.Road infrastructure deteriorationis a constraint upon economic de-velopment and actually makescountries more impoverished.

It is not always easy to un-derstand how such a situation cancome about, but one or two expla-nations can be advanced. Roadnetworks have been extended im-moderately without any real un-derstanding of the subsequentmaintenance requirements andthe corresponding funding. Anddespite the sharp increase in trafficin most countries, road mainte-nance has remained low down onthe list of priorities for budget al-locations. Lastly, the urgency ofthe situation has not always beenfully realised, whether by local de-

cision-makers or by the donorcommunity. Institutional weak-nesses together with a lack of pub-lic awareness have been factors inthe delay in implementingdurable, in-depth reforms.

This has also had an effecton donor policies. Thus, most ofthe road projects launched duringthe past 20 years (mainly capitalworks) have had very few long-term effects and the sums investedhave often been eroded. Studiesconducted in 85 countries by theWorld Bank have shown that aquarter of the roads situated out-side urban areas, and a third ofgravel roads, will have to be re-built. Once it became clear todonors that their plans had failed,they decided to make their aidconditional upon reliable roadmaintenance systems.

Rehabilitating andprotecting existinginfrastructure

The aim must be to reha-bilitate badly damaged roads andprotect more recent roads from asimilar fate. This requires furthermoves to be made on severalfronts:

– Defining priorities. Fewcountries are able to muster theresources to cope with road main-tenance requirements. They haveto make choices, which usuallymeans cutting down heavily on

capital works in favour of roadmaintenance. Furthermore, as ex-ternal financing is limited, theyhave to catalyse more funds atlocal level.

– Clarifying responsibili-ties. Road services, which are oftenpublic monopolies, are overloadedwith responsibilities and have todo planning, control and perfor-mance of work all at the sametime. The services must thereforebe reformed in depth and every-one's role must be more clearly de-fined. In many countries, the re-forms have particularly aimed toseparate the performance of workfrom the other functions, by mak-ing greater use of the private sec-tor. This new role-sharing shouldenable the road services to devel-op their capacities to plan andmanage the road network, definemaintenance strategies, and con-strain levels of service to what isaffordable.

– Improving managementof human resources. This includesmore extensive training and en-hanced career development toprovide better incentives to em-ployees.

The African exampleIn Africa, as in many coun-

tries in other continents, roadtransport grew rapidly after the

Meeting the road maintenancechallengeby Jean-Philippe Lanet*

* Article reproduced with the kind permis-sion of the Institut des sciences et des tech-niques de l'équipements et de l'environnementpour le développement (ISTED), La GrandeArche, Paroi Sud, 92055 Paris La Défense. Cedex04 - France. Tel. (33 1) 44 18 63 93, Fax (33 1) 4555 72 82. This article was first published in theAugust 1996 edition of the ISTED newsletter(No. 3).

In most countries, road maintenance hasremained low down on the list of priorities.

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Second World War, and today itcarries nearly 90% of travellersand freight. Roads tend to be theonly form of access to most ruralareas. Deteriorating carriagewaysare consequently a cause of greatconcern on this continent, requir-ing in-depth reform of the institu-tions in collaboration with donors.There has been a considerableamount of thinking, particularly inconnection with the Road Mainte-nance Initiative (see box), whichhas led to the road commercialisa-tion concept – in other words,considering roads as goods subjectto market mechanisms and puttingthem on a fee-for-service basis.The efforts of the past 15 yearshave enabled considerable head-way to be made in many areas. Forinstance, road funds have been setup to finance maintenance, basedon the three principles of roadcommercialisation, joint manage-ment and careful, transparent fi-nancial management.

Once the idea of financingroad maintenance by the users wasadopted, management structurescomprising representatives of theauthorities and of road users wereset up in several countries. This en-

ables users to be involved in main-tenance management and ensuresthat funds are properly used.

The importance ofinternational cooperation

In view of the road mainte-nance crisis in the developingcountries, the international com-munity must coordinate its actionbetter and focus its efforts on spe-cific objectives: adapting road pro-grammes to each country's needs;facilitating road research; develop-ing the interchange of scientificand technical data particularlythrough the Internet, bringing de-cision-makers, engineers and tech-nicians from various countries incontact with one another. The roleof international organisations such

as the World Road Association(PIARC) or the International RoadFederation (IRF) must be devel-oped to address the needs of de-veloping countries better. This isone of the main aims of the PIARCC3 Committee, which has drawnup an action plan along theselines.

Will the road maintenancechallenge be met? There is no mira-cle solution. Each country must bedetermined to set up the necessaryreforms to remove one of the mainstrangleholds on its economic de-velopment. They must take action,launch projects, and not be daunt-ed by the scale of such reforms.Donors, for their part, have provedin recent years that they could begenerous in their support for thosecountries that resolutely undertooksustainable road maintenance re-forms. Naturally, it is a slow processbecause they are often very large-scale reforms but that is the pricethat must be paid if they are to besustainable. In the end, meetingthe road maintenance challengemeans winning the wager laid ondevelopment.■ J.-P.L.

'First rebuild your policies before you rebuild theroad' – this is the philosophy behind the RoadMaintenance Initiative. The aim is not to financeroadworks but to help set up efficient, reliable,sustainable institutions.

Launching the RMI

The initiative is a key component in the transport policyimprovement programme in Sub-Saharan Africa (SSATP).The aim is to facilitate cooperation between the Africancountries and donors with a view to sustainably improvingroad maintenance in Africa. The RMI is based on twoassumptions:

– The main problem in road maintenance is not technicalbut rather political and institutional;

– To make reforms sustainable, it is essential to developnational consensus on the importance of roadmaintenance.

Two phases

During the initial phase (1989-1991), six regional seminarsraised awareness in all African countries. The second phasesupports concrete projects for institutional reforms inCameroon, Kenya, Madagascar, Tanzania, Uganda, Zambia,Zimbabwe and, since 1994, in Mozambique, Malawi, Togoand Ethiopia. The RMI has an open approach and is alsointerested in reforms undertaken in other countries such asBurkina Faso. The RMI supports all activities conducive to a

better road maintenance policy. For instance: nationalseminars bringing together representatives ofadministrations and road users, or ad hoc studiesconducted by local consultants, or again, guided studytours to other African countries.

Road commercialisation

The results of experience in this field have been collectedby Ian Heggie in the World Bank Technical Paper No 275:Road Management and Financing, An Agenda for Reform.He suggests commercialising roads, which meansconsidering them as goods subject to a market discipline,making a direct or indirect charge for using them anddefining a mechanism to simulate price-setting bymatching supply and demand. Commercialisation is basedon four interdependent building blocks of reform:

– Involving road users so that they can take part indecisions on levels of service and charges;

– Stabilising road financing by a mechanism to ensure anadequate, steady flow of funds;

– Clarifying responsibility in the area of networkmanagement;

– Improving the management and efficiency of the bodiesin charge of road maintenance.

Gérard Paget, Director for Regional Subsidiaries ofScetauroute Group, France. Former RMI Team member,World Bank.

The Road Maintenance Initiative (RMI)

ISTEDISTED, a non-profit-makingbody, provides a forum forideas, information and actionat the service of its partners inthe public and private sectorsin the areas of public works,

development and the environment. Itaims to support French expertise atinternational level and to disseminatescientific and technical information.


is not to say that its products arenot relevant or useful to others,but simply that the Programme isdesigned by OECD members in re-sponse to their own stated needs.As such, its ultimate goal is to con-tribute whenever possible to thedevelopment of seamless transportsystems in OECD member countriesby assuring intermodal linkagesbetween roads and other modes.The 'linkages' referred to here arenot limited to 'concrete and steel'linkages (i.e. infrastructure) butalso those of a wider social, institu-tional and economic nature.

Cooperation bringsresults

Since 1968, the Programmehas become a true knowledgebank through a variety of mecha-nisms, including: an internationalnetwork of experts and specialistsin key transport issues; two opera-tional international databases ondocumentation and traffic acci-dents; regular and cumulative en-hancements of the research anddevelopment fields covered andpolicy challenges addressed; strate-gic communications with non-member countries; and coopera-tion with other OECD Directoratesand international organisations ac-tive in related areas. Over theyears, more than 3000 scientific,engineering, and economic expertshave participated in and con-tributed to the investigative activi-ties of the Programme.

The main driving force forthe Programme has been therecognition by member countriesof the common challenges theyshare in implementing key trans-port and infrastructure policiesand programmes. Whether consid-ering the performance of roadtransport systems and road facili-ties, the maintenance of existing

infrastructure, traffic safety, ener-gy or environmental impacts, roadand transport administratorsthroughout the OECD can identifycommon ground. Thus, the Pro-gramme provides a productive andpositive forum where these issuescan be addressed cooperatively.

It is often noted that re-search and development does notalways receive adequate attentionin the budget or priority-settingcycles of individual countries. Re-structuring and downsizing ofpublic research institutions hastaken place in some states and atthe same time the private sectordoes not seem to have risen fullyto the challenge. In a climatewhere needs outstrip resources,participants in OECD studies andcooperative research programmescan obtain results that may eitherbe applied immediately or adjust-ed conveniently in their countriesto improve road transport.Through participation in the OECDstudies and seminars, membercountries can gain an in-depth un-derstanding of research performedin other countries – that can serveas a benchmark for their own re-search programmes. Moreover, theProgramme’s two databases assurethe systematic exchange of experi-ence and research results so thatall members can benefit directly interms of cost savings for researchand improved systems.

Over the last 30 years, theProgramme has undergone a nat-ural evolution of priorities in orderto remain current in meeting theemerging challenges of the OECDcountries. At present, the Pro-gramme is vigorously addressing avariety of issues under the frame-work of the 1995-1997 three-yearprogramme. These include the fol-lowing projects:

– Safety Problems of Rural Roads

– Implementation of IntelligentTransportation Systems

– Trilateral Logistics (TRILOG)

– Transport of Dangerous Goodsthrough Road Tunnels

– Dynamic Interaction Vehicle In-frastructure Experiment

– Performance Indicators for theRoad Sector

– Motorcycle Accident Investiga-tions: to create the basis for appro-

Road transport research atthe OECD

Progress throughinternational innovationby Partick Hasson*

* Road Research Programme, Transport Divi-sion, OECD, 2 rue Andre Pascal, 75775 ParisCEDEX 16, France.

The Organisation for Eco-nomic Cooperation and De-velopment (OECD) is an in-ternational organisationthat represents the 29 mostdeveloped nations in theworld. Its predecessor, theOrganisation for EuropeanEconomic Cooperation(OEEC), was founded 50

years ago as part of the MarshallPlan for the reconstruction of Eu-rope. As far back as 1961, theOECD provided for regular interac-tion and exchange among nation-al road researchers from its mem-ber countries. This earlycooperation led to the formal es-tablishment of the Programme inRoad Transport Research in 1968.For the past 30 years, the Pro-gramme has operated on three-year cycles, having been renewed10 consecutive times by the OECDCouncil. The most recent renewalwas in December 1997 and thiswas accompanied by a specificwork plan for 1998-2000 that de-tails the projects and activities tobe undertaken. Also in 1997, thetitle was changed to the Pro-gramme of Research in RoadTransport and Intermodal Link-ages (RTR) to better reflect astrategic framework in whichroads are viewed as an integralpart of the wider transport sys-tem. The Programme is part of theTransport Division in the OECD Di-rectorate of Science, Technologyand Industry.

An important differencebetween OECD road transport re-search activities and those of otherinternational organisations is thefact that the Programme focuseson issues relevant to its limitednumber of member countries. This

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priate injury and accident reduc-tion measures1

A practical workingmethod

The organisational frame-work is simple and clear. Leader-ship is provided through a policycommittee – the 'Steering Commit-tee for RTR' – comprising seniorroad and transport managers andadministrators from member coun-tries. Day-to-day management isaccomplished by a small Secretari-at team at the OECD HQ in Paris.This arrangement assures focusand prioritisation that is respon-sive to the real needs of the trans-port agencies in the member na-tions.

The heart of the workingmethod centres on flexibility in theapproach used to accomplish aspecific project – i.e. scientific ex-pert groups, joint research pro-jects, conferences/seminars – andnetworking to capture the exper-tise available in the OECD coun-tries on a given topic. Through theSteering Committee, the RTR canreach into the network of profes-sionals to multiply the resourcesand capabilities available for aproject. Through this mechanismand the various research fora, thegoals shared by all the participat-ing countries are accomplished.The cooperative research projectsand policy reviews are well-de-fined and carefully directed to as-sure results-oriented completionwithin a strict time schedule.

The 1998-2000Programme

Every three-year pro-gramme of work includes 'activitycentres' that help to focus the RTRresearch efforts. The activity cen-tres have changed gradually overtime and reflect OECD members'priorities. The 1998-2000 work pro-gramme includes the followingthree activity centres:

– Sustainable Multimodal Trans-port Strategies– Economic Performance, Trans-port Infrastructure and Manage-ment

– Transport Safety and Environ-ment

The Programme also in-cludes several continuing activityareas – namely two internationaldatabases, outreach activities withnon-OECD countries, and researchpolicy initiatives – that are ongo-ing. Though some projects carriedout within these areas may changeover time, the general themes donot.

Sustainable Multimodal Trans-port Strategies

The RTR role in this areacentres on aiding member coun-tries in their efforts to meet do-mestic and international multi-modal needs. The Programmehelps to contrast and comparetransport problems in differentmember states as well as in a re-gional context and to identify mul-timodal solutions. International co-operation through the Programmeenables countries to identify effi-ciently the best policies and prac-tices for obtaining the maximumbenefit from transport infrastruc-ture investments. For example, oneissue currently important to manymembers is how to tackle roadcongestion and its associated envi-ronmental and social effects. TheProgramme will therefore studyways of, and share experience on,influencing the level, location andtiming of road traffic demand. Thereview and analysis will distinguishbetween policies aimed at reduc-ing overall demand for mobility,those aimed directly at restrictingroad traffic demand, and thoseaimed at making alternativemodes more attractive. Similarly,the Programme is contributing tothe development of implementa-tion strategies for intelligent trans-portation systems (ITS) that includeconsideration of the social andgovernance issues associated withITS implementation in a multi-modal framework.

The Programme is also in-terested in the international di-mensions of intermodal transport.The RTR seeks to stimulate the ex-change of concepts and experienceabout multimodal managementwith the aim of establishing a clearset of suggested policies that canencourage greater levels of privatesector development, standardisa-tion and use of technologies, and

practices that improve the overalllevel of integrated transport effi-ciency. The Programme coordi-nates and augments this work, andother activities, through a multi-modal freight advisory group. Theultimate goal of these efforts is todevelop multimodal policy recom-mendations that will influencetransport infrastructure invest-ment criteria in member countries

Economic performance, infra-structure and management

The RTR Steering Commit-tee recognises that transport net-works, including roads, representhuge national assets. It is acknowl-edged that network managementsprotect these very significant na-tional investments, and that theirwork has major implications fortrade, investment and economicperformance in general. From thisstandpoint, the RTR investigatesthe management of construction,maintenance and rehabilitation ofroad networks, especially in thelight of political and budget pres-sures. There is great interestamong member countries in usingthe Programme to obtain a betterunderstanding of how asset man-agement systems can be employedin making road management deci-sions, exploring related institution-al issues, and suggesting approach-es that help optimise managementefficiency in road organisations.

On another front, the Pro-gramme places high priority onthe fairly clear link between trans-port infrastructure developmentand economic productivity. How-ever, setting transport develop-ment priorities based on the iden-tification of a project’s economicimpact is not an easy or precisetask. The Programme is thereforemaking progress on the effects oftransport infrastructure on region-al and/or peripheral developmentby reviewing current research intransport economics, includingconcepts and evaluation method-ologies for determining the eco-nomic impact of transport devel-opment.

The performance of publicadministrations at all levels is in-creasingly under scrutiny. Road ad-ministrations, like many others, areaccordingly looking for sound andpractical ways to measure theirperformance and communicate

1 Detailed descriptions of these and other ac-tivities can be found on the OECD internethomepage at www.oecd.org.


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this to the general public and po-litical leaders. The RTR has re-sponded to this need by releasinga report that identified 16 main in-dicators for monitoring and evalu-ating road administration perfor-mance. The RTR has now initiateda pilot country field test that is in-tended to assess the applicabilityof the indicators in order to: iden-tify organisational learning poten-tial; establish benchmarks and ob-serve trends; inquire into reasonsfor not achieving set objectives ortargets; and assess data collectionand analytical procedures. 16countries, the World Road Associa-tion (PIARC) and the World Bankare participating in the field test.

Transport safety and environ-ment

Because transport can af-fect every aspect of life from em-

ployment and economic productiv-ity to the environment, trafficsafety and other social considera-tions, the Programme has alwaysplaced high priority on road safetyand the environment. The roadsafety initiatives are a response towhat is an enormous challenge –every year, there are 500,000 roaddeaths and 15 million accident in-juries worldwide. About a third ofthese occur in OECD countries. Theannual cost, within the EU, is esti-mated at ECU 162 billion – equalto about twice the Community'stotal annual budget! The pro-gramme therefore seeks to con-tribute to a more resolute policyapproach in implementing safetymeasures and to provide for fo-

cused research on specific groupsas needed.

The RTR is managing ajoint research project on motorcy-cle accident investigations. This isdesigned to create the basis forsuitable injury and accident-reduc-tion measures by improving thescientific evidence available to sup-port the introduction of appropri-ate technologies. The Programmeis also considering the mobilityneeds and safety problems of age-ing societies. By consolidating anddisseminating current successfulpolicies and practices, and makingrecommendations for multidiscipli-nary research programmes for na-tional and regional implementa-tion, the Programme hopes tocontribute to alleviating some ofthe problems in this area.

The RTR, in close coopera-tion with the World Road Associa-tion (PIARC), is also performing ajoint research project on the Trans-port of Dangerous Goods throughRoad Tunnels. This includes partici-pation by 14 OECD members, 6PIARC members, and the EuropeanCommunity. The goal is to reviewcurrent national and internationalregulations, propose methodolo-gies related to risk assessment anddecision processes, and suggestrisk reduction measures. The pro-ject costs – approximately $1 mil-lion – made international coopera-tion an imperative foraccomplishing the work. The fundsare being donated by the partici-pating countries. The project ismanaged by a small ExecutiveCommittee, a large Scientific Ex-pert Group, and a part-time pro-ject manager, with consultant sup-port available for specialised tasks.

Like safety, the environ-mental impacts of transport infra-structure, traffic demand and mo-bility requirements all pose greaterchallenges for OECD countries.One result of the growing demandfor travel and mobility is an in-crease in health, economic and so-cial concerns – related to air quali-ty, roadside noise and trafficcongestion. One goal of the Pro-gramme is to identify and evaluatemeasures that reduce the impactof roads on the environment. It ac-cordingly includes a proposed airquality project. This will considerhow atmospheric pollution model-

Traffic congestion and the related issues ofroadside noise and air pollution – a growing

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ling can make use of informationfrom air quality assessment andmeasuring. This should allow acomparison of the costs and bene-fits of different approaches (bothmanagement and technical) em-ployed in mitigating the problem.In addition, because the road traf-fic noise prediction model chosencan significantly affect the solu-tions implemented, and thereforethe decisions on what protection isneeded, the RTR will evaluatethese models in view of their ef-fect on policy-making and in theassessment of noise impacts onquality of life.

The Programme also in-cludes a life-cycle analysis project.This will focus on extending tradi-tional environmental impact as-sessment to infrastructure projectsand technologies over their entire'life-time' – covering construction,operation, maintenance and de-molition. Various environmentalindicators – such as the use of nat-ural resources and noise pollution– will be taken into consideration.The project will result in a basicmethodology that can be used toweigh essential environmentalconcerns against appropriate infra-structure development.

Research policy

The RTR Steering Commit-tee undertakes special projects inseveral areas that are directly rele-vant to the conduct of research.For instance, in 1993, the USAhosted a seminar at which recom-mendations were developed thatshould be considered in strategicplanning for road research pro-grammes. As a follow-up, Francehosted a seminar where the em-phasis was on the need to evaluateresearch programmes as a basis fordeveloping and implementing newprogrammes. The latter event re-sulted in a series of principles to beconsidered when evaluating a re-search programme. Through ef-forts such as these, the RTR cancontribute to improving the quali-ty of both national and interna-tional research projects and pro-grammes.

International databases

A major aim for the RTR isto exchange technology, informa-tion and knowledge in a systemat-ic way. One of the main ways we

accomplish this is through two in-ternational databases. The Interna-tional Road Research Documenta-tion (IRRD) scheme assembles anddisseminates road-related researchliterature as well as informationon research in progress. It is aunique, world-wide database thatis managed semi-independently –financed through subscriptionsand royalties – with the Secretariatas overall coordinator. The princi-pal languages reported in the IRRDare English, French, German andSpanish. The database includesnearly 400,000 bibliographicrecords plus some 45,000 recordsdescribing research in progress.The IRRD is available globally on-line through the Science and Tech-nology Network (STN) and on theTRANSPORT CD ROM produced bySilverPlatter. The CD ROM is alsonow available on a 'pay-per-view'basis on the Internet.

The International RoadTraffic and Accident Database(IRTAD) was established for thecollection and systematic exchangeof aggregate accident data from27 OECD Member and other coun-tries. It is administered by a Ger-man host organisation – BASt.There are two main reasons formaintaining this database. First,the value associated with statisticalanalysis as a critical part of plan-ning road safety policies. Second,the value added to road safety as-sessment using internationalbenchmarks.

Outreach activities

The RTR has been calledupon to provide advice or informa-tion to non-member countries fornearly as long as the Programmehas been in existence. Followingthe fall of the Soviet Union, thedemand has increased. In this area,RTR involvement so far has includ-ed a number of road safety confer-ences in Asia, Latin America, andAfrica and a series of 14 work-shops on various road-related top-ics in Central and Eastern Europe.OECD member countries also re-ceive regular requests for informa-tion and assistance to which theyrespond independently.

In late 1996, the AdvisoryPanel for Outreach Activities wasformed to prioritise RTR technolo-gy-exchange activities with non-member countries. This is done by

ensuring that the activities takeadvantage of the inherentstrengths of the Programme andthat they can be accomplishedwith the limited funds that areavailable. A good example ofwhere the Panel has establishedsound priorities was the Informa-tion and Documentation Seminarheld in July 1997 in Prague. Some100 policy-makers, librarians andinformation specialists took partand the outcome was a series ofmeaningful conclusions and rec-ommendations that are now beingimplemented.

ConclusionThe Programme has been

responsive in meeting the needs ofboth OECD members and non-member countries for more than30 years. By employing a flexibleapproach, it has been able to max-imise the use of the network ofroad and transport professionalsavailable to address projects iden-tified by the Steering Committee.Close contact is kept with many in-ternational organisations and asso-ciations working in related fieldsin order to achieve synergies andavoid duplication of work. Thosereponsible for the Programme arekeen to maintain and enhancesuch collaboration.

This continuing coopera-tion has resulted in a large numberof publications on various roadtransport subjects. A catalogue ofthese publications is available onthe OECD internet homepage (seefootnote 1) or by writing to theOECD Secretariat.

Looking to the future,there should be even more oppor-tunities for the OECD to contributeto the increasingly complex roadand transport needs of membercountries. Building on previous ef-forts, the three-year work pro-gramme established by the Steer-ing Committee will open up newavenues for international coopera-tive research, especially in the areaof linkages between road trans-port and other modes. The Pro-gramme thus offers participatingcountries a major opportunity toexplore the road and transport is-sues that are are so crucial in anera of globalisation.■ P.H.


Transport and development – two words sepa-rated by a single conjunction that express a spe-cific reality for the developing countries. Ingrammar, conjunctions offer many advantages,not the least of which is allowing us to establisha relationship or contrast between words, con-cepts and ideas, at least in formal terms. That iswhat happens with the conjunction 'and' in thecontext of the question of transport and devel-opment. What meaning does it give to those twoterms? Is there a relationship between themwhich has not simply been created by their jux-taposition? Before considering these questions,which go far beyond strict grammatical analysis,we should start by clarifying what we mean by'transport' and 'development'. The first term can

as well refer to infrastructural networks and means oflocomotion as to the economic activity represented bythe transporting of goods and passengers. Developmenttoday is still the subject of much debate, among econo-mists in particular. While leaving that debate open, wecan consider both the economic and spatial dimensionsof development. The first of these is not a new additionto the analysis: it has been the subject of many studies,both theoretical and empirical, both micro – and macro-economic. Development refers to growth, understood asan increase in national wealth as it may be defined bythe nation's accountants. The second, spatial dimensionhas, by contrast, long been forgotten in the standardeconomic analysis. This is no place to discuss all the rea-sons for this omission, but it is worth mentioning thatthe introduction of space challenged the very existenceof the general equilibrium. This characteristic refers tothe spatial translation of development.

The issue now is to consider the meaning ofthe conjunction, transport and development, througheconomic analysis. A causal sense has often been con-ferred upon it, exceeding the mere pairing that theirjuxtaposition might suggest. In other words, a sum-marising formula might be 'transport therefore devel-opment'. Economic analysis, however, has resulted ina refining of this relationship, recognising transportas being behind certain effects which tend to unbal-ance development. The relationship 'transport but po-larised development' has replaced the relationship'development because of transport'. Nor is that theend of the semantic shift in this conjunction. On con-sidering the perverse effects of transport, one mighthave preferred a relationship of the 'transport or de-velopment' type, inviting a decision, a choice of oneof what have now become two conflicting terms. Atthe end of this analysis, it will in fact become appar-ent that the firmest relationship between the two

takes the form 'neither transport nor development'.Without transport, development is impossible, andthe particular task of the person making the decisionis to implement a sectoral policy.

Transport as a development factorTransport is often considered as a or even the

factor behind the growth of a region, country or con-tinent. In other words, without an infrastructure thearea in question has no possibility of take off. This no-tion, very widespread in the minds of people both inthe free-market countries and in the developing ones,is often advanced as justification for the need to endthe isolation of hitherto inaccessible areas. The cre-ation of lines of communication would have structur-ing effects in terms both of development and of thelocalisation of activities and population groups.

The building of a road or railway, the propa-gation of means for moving about, makes it possibleto export the produce of local production operationsto other markets, within either a close or distant ra-dius, such as the city or the international market.These outlets allow the initiation of a 'virtuous circle',characterised by intensified production, increased in-comes for the population, diversification of consump-tion and the possibility of accumulation.

The exported goods may be raw materials orproducts on which processing operations have beencarried out. The lines of communication, by removingthe constraints of distance, allow the distributionthroughout the territory of a country of manufactur-ing units whose purpose is to add value to raw mate-rials. This profitable combination of transport and de-velopment has long been the dream of planners, whohave made provision for the distribution of poles andlines of communication within the area that theyhope will advance the development of the country.

The inadequacy or absence of such infrastruc-tures and the existence of bottlenecks frustrate thiskind of profitable circular system. The low density andpoor quality of rural roads results in prohibitive trans-port costs. Studies undertaken by the Transport Eco-nomics Laboratory (LET, Lyon), the National Institutefor Transport Research and Safety (INRETS, Arcueil)and the SITRASS teams have shown that, in 1996,transport prices per tonne/km in sub-Saharan Africacould be as high as ECU 0.30 for journeys of less than50 kms, reflecting reduced-tonnage consignments inrural areas, as compared with prices of the order ofECU 0.05 per t/km for longer journeys. Nor is this situ-ation specific to this type of axis: an internationalcomparison between the countries of Asia andFrench-speaking Africa found that long-haul truckingwas twice as expensive in Africa as in Asia. The imme-

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policiesby Pierre-Yves Peguy*

* Laboratory of Transport Economics, (LET)/SITRASS Lumière Universityof Lyon 2, France.


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diate consequence of these excess costs is to raise theprice of the exported products and, consequently, tolengthen distances artificially.

The shortage of transport facilities and of in-termediate means of transport (IMT) (bicycles,mopeds, barrows, animals, etc.) helps to perpetuate

the isolation of certain population groups. In Malawi,the retail selling price of an imported bicycle, in 1988,represented 650 days' paid work at the rural mini-mum wage, while for a bicycle assembled in sub-Saha-ran Africa the figure was nearly 1000 days. In some re-gions of Burkina Faso, the price of a bicycle can be 1.8times the annual income of a household. These exces-sive costs and the scarcity of means of transport areactually becoming major obstacles to development.

Transport is regarded not only as an inputthat is essential to the global product but also as afactor that creates accessibility to the most essentialgoods and services: healthcare, education and knowl-edge. Being remote from transport, and so very oftenisolated, the poor are kept at a distance from oppor-tunity and innovation. Roads are not just built be-tween any two points in the area: on the regional ornational scale, before connecting two rural areas, theinfrastructure endeavours to connect the rural area tothe village, the village to the minor town and theminor town to the capital. And it is from these succes-sive levels and, a fortiori, from the capital thatprogress and knowledge are propagated towardsthose rural areas. In more general terms, the city isperceived as the crucible of modernity, and the roadas the channel through which innovation is distrib-uted.

Transport as a source of perverse effects

Transport can be the source of radical imbal-ances, in economic, social and also spatial terms. Theopening of the local economy to the outside world,made possible by the construction of a transport in-frastructure and the arrival of carriers and less taxingmeans of locomotion, may prove the source of deep-seated economic imbalances.

The availability of transport not only allowsone to export local products – it also makes it possibleto import products, whether similar or different. Inother words, local production may find itself upagainst competition from external production. Theconsequences of this confrontation are not the same,depending on the nature of the imports. Where prod-ucts have been similar, price competition has exertedits full effects. Dietary habits have been radicallychanged by it. Asian rice has supplanted local rice inthe diet of the Sahelian peoples. Supplementary prod-ucts have found new outlets in these local markets.But the origin of these imports does have an effect ondevelopment. At both national and internationallevel, this competition is reflected by a more or lessmarked specialisation by regions or countries. Forsome of them, this specialisation takes the form of anincreased dependence on the outside, the tangiblesign of which is an unbalanced, negative compositionand structure of the trade balance.

The short distance between areas made possi-ble by infrastructures and the development of meansof transport has led to the spread of new lifestylesand a drift to the city. The consequences are signifi-cant, both socially and spatially. The introduction ofthe market economy with the principle of monetarisa-

Price per tonne/kilometre (PTK)in ECUs, based on 1996 t/km(TKM)

Vertical axis = PTK, horizontal axis = TKM

As the diagrams show, the average unit price perkm in Côte d'Ivoire of moving one tonne of goodsover 59 kms is ECU 0.4. However, for a trip of12,704 kms over the same network, the price to bepaid would be ECU 0.045 per t/km, or an average ofone-ninth of the cost.

◆ ◆

◆

◆

◆

Ghana

1.397 4.146 6.173 8.735 15.076

0,12

0,1

0,08

0,06

0,04

0,02

0

◆◆ ◆

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Cameroun

315 2.178 4.900 10.509 38.106

0,3

0,25

0,2

0,15

0,1

0,05

0

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Côte-d’Ivoire

59 180 670 2.268 12.704

0,4

0,35

0,3

0,25

0,2

0,15

0,1

0,05


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tion of trade has profoundly changed social relation-ships. New social categories have emerged, some-times imported from other countries, even usurpingthe power and influence of the traditional local au-thorities. From the spatial standpoint, this availabilityof transport has resulted in imbalances in the localisa-tion of population groups and activities. It gives riseto two effects: the opposition effect and the polarisa-tion effect.

The opposition effect derives from the factthat two unequally developed regions see the differ-ences between them widen when they are broughtinto contact. This effect takes many forms in the de-veloping countries. The concentration of activities atcertain points within the territory tends to set thosepoints apart from the remainder of the area, whichgoes into economic decline and increasingly becomesdepopulated as transport conditions improve andpeople migrate to where the work is. The building orimprovement of lines of communication allows localproducts to be not only exported but also imported.These areas of increased accessibility find themselvesin direct competition with more productive regions,and the outcome of this confrontation will not neces-sarily be favourable to them. As a result, the cities ofthe developing countries have seen unprecedentedgrowth. For 20 or 30 years, gigantism has been a fea-ture of South America and Asia: Mexico City has near-ly 25 million inhabitants, Sao Paolo 23 million, Calcut-ta and Bombay nearly 15 million each. The Africancontinent is in the process of closing the gap in thisrace to urban growth. In 1990, West Africa had 2500cities, including 90 with populations of over 100,000,as compared with 600 cities and 17 with over 100,000inhabitants in 1960. Projections for 2020 show 6000cities, of which 300 will have more than 100,000 in-habitants. In more general terms, it would seem thatthe rise of the transport system has not just followedin the wake of a differentiated development of areasbut has actually initiated it in a great many cases.

The polarisation effect originates in the oppo-sition effect. It relates to the principle of the increas-ing economies of scale that characterise a great manyactivities. In simple terms, it means that an increase ininputs is reflected by an even greater increase in out-put or, from the cost standpoint, a greater decreasein costs. The city, as a focal point of activity and pop-ulation, cannot be understood without reference tothis principle. Nor is transport any exception to thisrule. Any standardisation of flows allows the trans-port system to be made more efficient. Thus, thegreater the flows, the lower the unit costs of trans-port. The studies undertaken by the LET and INRETSshow that the price ratio per t/km between interna-tional road transport and local road transport inFrench-speaking Africa was on average 1:7.

Taken to its extreme, the logic of standardisa-tion of flows would result in there being only a singleroad within the country. While things do not go asfar as that, in reality one is seeing the increasingdominance of a few corridors and a small number ofpoles on a national or regional scale, or at interna-tional level. In West Africa, the major corridors such

as Abidjan-Ouagadougou, Lomé-Ouagadougou, Coto-nou-Niamey, Dakar-Bamako, Abidjan-Bamako andPointe Noire-Brazzaville play an increasingly structuralrole at the expense of secondary roads. It is on high-ways like these that transport costs are lowest, but itis also here that the most cost-effective public invest-ments take place – in the sense of the internal and so-cial profitability of the economic calculation – lead-ing, by accumulation, to further reductions in costs.

This self-sustaining polarisation effect is notconfined to road or rail infrastructures. The 'hub andspoke' strategy of airlines follows the same logic forregional and international services. In West Africa, forexample, all the air links from the hinterland (Oua-gadougou, Bamako, Lomé, Cotonou, Niamey) arebrought into Abidjan airport with aircraft of modestsize, and then these flows are amalgamated andpassed on to Paris, Brussels or New York on long-haulservices. The architecture that is now emerging ischaracterised by a centre from which radial linksemerge, at the expense of transverse links.

Does this mean abandoning any kind oftransport policy?

On the basis of what has been said so far, onemight be inclined to wonder whether activity in thetransport sector serves any purpose, or in the ex-treme, to decide that no transport policy is desirable.However, it would be a mistake to believe that justbecause the relationship between transport and de-velopment is becoming more uncertain, that means itdoes not exist. Transport is no longer the essentialcondition for development – other factors also play apart. But it is certainly true that its absence plays apart in under-development. The ideal, obviously,would be to produce all the missing infrastructurallinks and pursue a support policy in this sector, with-out regard to the constraint of rarity. But that con-straint is more urgent in the developing countriesthan it is elsewhere. It is not possible to do everythingtoday – or even tomorrow. So what is needed is theprioritisation of projects on the basis of their utility.The foremost priority, then, is identifying and elimi-nating bottlenecks.

In states with market economies, these bottle-necks take a variety of forms: a congested road, raillink or airline slot. In the developing countries theytake more pernicious forms, with equally significantconsequences. A badly maintained section of road ina major corridor, police forces or customs services set-ting up unexpected road blocks on major highways,stationmasters anxious to cash in on their power todictate the make-up of goods trains, haulage unionsarguing in favour of the 'Buggins's turn' system in theplacing of loads – each of these plays its part in forc-ing up the cost of transport.

Thus, the World Bank considers that a reduc-tion of one dollar in the road maintenance budgetcauses an increase of two or three dollars in vehicleoperating costs. In sub-Saharan Africa as a whole,these studies estimate that the additional costs associ-ated with inadequate road maintenance are as high


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BibliographyA. Adolehoume (1993), Quelles politiques de réduc-tion des coûts du camionnage en Afrique sub-sahari-enne? [What policies can reduce trucking costs in sub-Saharan Africa?], paper given to the 6th CMRT (WorldConference on Transport Research), Lyon, 29 June-3 July1992, 14 pp. in Proceedings of the joint session of the6th CMRT, 1993.

I. Barwell (1996), Transport and the village. Findings fromAfrican village-level travel and transport surveys and relatedstudies. Discussion paper No 344. African region series. WorldBank, Washington D.C. 65 pp.E. Bloy, A. Bonnafous, J.-M. Cusset and B. Gerardin (1977),Evaluer la politique des transports [Evaluating transport poli-cy]. Paris Economica and Presses Universitaires de Lyon, Lyon,103 pp.A. Bonnafous (1997), 'Filières de transport: économie de ligneou économie de noeuds' [Transport routes: line economy ornode economy] in SITRASS, Efficacité, concurrence, compétitiv-ité: la chaîne de transport en Afrique sub-saharienne [Efficacy,competition, competitiveness: the transport chain in sub-Saha-ran Africa]. Proceedings of the SITRASS 4 colloquium, Brazza-ville, 28-30 October 1996, LET-INRETS, 419 pp.E. Connerly and L. Shroeder (1996) Rural Transport Plan-ning, Approach paper, SSATP W.P No 19. World Bank, Wash-ington D.C. 60 pp. E. Gouvernal (1997) 'Organisation et coût de transport mar-itime: cas des lignes régulières Afrique-Europe et Asie-Europe'[Organisation and cost of sea transport: the regular Africa-Eu-rope and Asia-Europe routes] in SITRASS, Efficacité, concur-rence, compétitivité: la chaîne de transport en Afrique sub-sa-harienne. Proceedings of the SITRASS 4 colloquium, Brazzaville28-30 October 1996, LET-INRETS, 419 pp.M. Guilbault (1997), 'Transport et compétitivité du café. Lesfilières café ivoiriennes et costariciennes' [Transportation andcompetitiveness of coffee. The Côte d'Ivoire and Costa Ricancoffee systems], in SITRASS, Efficacité, concurrence, compétitiv-ité: la chaîne de transport en Afrique sub-saharienne. Proceed-ings of the SITRASS 4 colloquium, Brazzaville 28-30 October1996, LET-INRETS, 419 pp.G.I. Heggie (1994), Tarification des routes d’Afrique: évolutiondu rôle du secteur public [Road tariffs in Africa: developmentof the role of the public sector], Approach paper, SSATP W.PNo 10. World Bank, Washington D.C. 15 p.P. Krugman (1991) 'Geography and Trade', Leuven UniversityPress and MIT Press, Leuven and Cambridge, 142 pp.Ocde, Bad, Cilss (1994), Pour préparer l’avenir de l’Afrique del’Ouest: une vision à l’horizon 2020, Synthèse de l’étude desperspectives à long terme en Afrique de l’Ouest [Towardspreparing the future of West Africa: a vision for 2020, Summa-ry of the study of long-term perspectives in West Africa], Paris,65 pp.P.Y. Peguy, (1997), Le transport ferroviaire et la désintégrationverticale. Le cas des chemins de fer de l’Afrique francophone[Rail transport and vertical disintegration. The case of the rail-ways of French-speaking Africa], Rail International, Schienen derWelt [Railways of the world], Nos 09-10, pp.216-225.F. Perroux (1991), L’économie du XXe siècle [20th-century eco-nomics], Grenoble, PUG (1st edition, 1969), 814 pp.F. Plassard (1990), Axes autoroutiers et développement des ré-gions. Les cahiers scientifiques du transport [Motorway axes andregional development. Scientific transport studies], No 22, pp.81-98. C. Rizet and H. Gwet (1998), Une comparaison internationaledes prix du camionnage (Afrique, Amérique centrale, Asie duSud-Est) [An international comparison of trucking prices (Africa,Central America, South-East Asia)], working document, 38 pp.Sitrass (1989), Politique de réduction des coûts du camionnageen Afrique sub-saharienne. Rapport de synthèse [Policy for re-ducing trucking costs in sub-Saharan Africa. Synthesis report],LET-INRETS, 58 pp.B.N. Zoro (1996) Chaînes de transport en Cote d'Ivoire - coûts detransports [Transport chains in Côte d'Ivoire - transport costs],AIDET SITRASS, 56 pp. + annexes in SITRASS, Efficacité, concur-rence, compétitivité: la chaîne de transport en Afrique sub-sa-harienne. Proceedings of the SITRASS 4 colloquium, Brazzaville28-30 October 1996, LET-INRETS, 419 pp.

as $1.2 billion per year. Along a corridor like thatfrom Abidjan to Ouagadougou, the incidental ex-penses resulting from impromptu tolls can amount toECU 150 for a consignment of 40 tonnes invoiced atECU 1280, or more than 10% of the total value! Apartfrom these unlawful levies, carriers based at the portof Abidjan have to pay various charges to the port au-thorities and haulage unions without receiving anygenuine service in return. Some monopolies, too,have been paralysed by the absence of any competi-tive pressure. The Congo-Ocean-Railway (CFCO) hasseen the tonnage it carries fall by over 60% in 26years. Endogenous factors associated with the man-agement of the business play a major part in thistrend. A number of private incomes and 'perquisites'have developed within the enterprise. Operators ex-ploit their positions in the hierarchy, to a greater orlesser extent, in an endeavour to increase their discre-tionary budgets. So it is no surprise to find that theescorts hired by the loaders to accompany their wag-ons on the journey are themselves the children of rail-way employees. By the same argument, it is even lesssurprising to learn that the chief loaders or forward-ing agents immobilise the most reliable trucks in vari-ous sidings to meet future demand, all with the con-nivance of the station-master.

The results of these practices are not alwaysapparent to those who perpetrate them, be they em-ployees of state-owned enterprises, port authoritiesor government departments. In any case, all of themact in accordance with the 'free ride' principle, a con-cept developed in economics to cover collective assets.Collectively, they all want the enterprise or port towork well, but no individual has an interest in ensur-ing that it does. Why would one operator stop collect-ing an informal tax or increasing his discretionarybudget when his colleague carries on doing it? In thecase of the CFCO, where the transport service provid-ed has deteriorated in terms of both cost and quality,some operators in the Congo, the Central African Re-public or Chad have resorted to new transport strate-gies. Some loggers, for example, have opted to gettheir timber out by other means, such as by roadthrough Cameroon. Yet it is the population as awhole that bears the excess costs of these bottlenecks,in the form of the re-routing of transport flows toother corridors, higher consumer prices for importedproducts, less competitive exported products andstagnating or falling government revenue. There aremore than enough reasons here to undertake atransport policy based on training and a knowledgeof the sector, despite the imbalances that maybe caused.■ P.-Y.P


Involvement of usersin the management of roadsis one of the Road Mainte-nance Initiative's (RMI) fourbasic building blocks for de-velopment of a sustainableroad sector in sub-SaharanAfrican countries. Withoutthis particular buildingblock, sustainability may befar more difficult to attain.

The RMI sets out the specific objec-tives of road user involvement asfollows:

– to create a sense of user owner-ship and thus win public supportfor adequate user fees to fund ap-propriate road maintenance;– to ensure that proceeds from thefees are only used for the intendedpurpose and not diverted to otheruses;– to ensure that maintenance pro-grammes are user-oriented and af-fordable; and,– to ensure that the money is usedefficiently.

the years up to 1993, maintenanceallocations had declined to onlyabout 15% of requirements. Andthere was no clear price put onroads, their provision being consid-ered a social service.

Inadequate funding wasfurther complicated by the unsatis-factory institutional frameworkwithin which roads were managed.Poor conditions of service, a lack ofclearly defined responsibilities, in-effective and weak managementstructures and a lack of managerialaccountability, all contributed topoor use of the meagre funds avail-able.

Policy reformsPolicy reforms were debat-

ed and formulated at the ZambiaRoad Maintenance Policy Seminarheld from 16-19 February, 1993 inLusaka. Participants included highlevel representatives of the keyministries and donor organisationsas well as a broad representationfrom the private sector. The recom-mendations led to the establish-ment of new institutional struc-tures.

The policy reforms imple-mented so far include an au-tonomous Road Fund with a dedi-cated Road Tariff as its financinginstrument, and the National Roads

Board. The Fund was establishedunder the Finance (Control andManagement) Act with a fuel levyas its main instrument. The levy wasintroduced on 1 May 1993 with 10kwacha (about one US cent) beingadded to the price of a litre ofpetrol/diesel. This levy was subse-quently increased in stages to K40and, since 1997 it has been chargedat 15% of the wholesale price. In1998, it is proposed that all roaduser charges (transit tolls, weigh-bridge fines and licensing fees) bechannelled to the Road Fund.

The National Roads Boardwas established under the Roadsand Road Traffic Act in early 1994,to administer and manage theRoad Fund. The Act specifies thatthe Board should include sevenmembers, nominated by each ofthe following non-governmentalbodies:

– the Zambia Chambers of Com-merce and Industries;

– the Automobile Association ofZambia;

– the Zambia National FarmersUnion;

– the Transport and Truckers Asso-ciations;

Involvement of users in the management of roads –a public private partnership

The Zambia Roads Board experienceby Raymond Jhala

In this abridged article, the Chairman of the National Roads Board of Zambia tells Courier readers about theinnovative system developed in his country to ensure effective road maintenance.

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Repairing roads in Lusaka.A vital component of the new system is an au-

tonomous Road Fund.

Crisis in the Zambian roadsector

In 1987, about 40% of theprimary road network in Zambiawas in good condition. By 1990, thepercentage of good roads had de-clined to 20%. The value of thenetwork was initially estimated atUS$2.3 billion but this figure haddeclined, in the intervening years,by more than US$400 million, dueto neglect of maintenance.

The deterioration of Zam-bia's roads and the consequent lossof asset value, was due mainly toinadequate funding. Road mainte-nance and other expenditures werefinanced from general tax revenues– in competition with several otherand obviously much more pressingdemands on the public purse. In


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– the Engineering Institution ofZambia;

– the Copperbelt University; and,

– the Chartered Institute of Trans-port (Zambia)

The Act further specifiesthat, in addition to these sevenBoard members, there should befive ex officio members – nominat-ed by the ministries responsible forCommunications and Transport,Works and Supply, Local Govern-ment and Housing, and Finance,and from the National Commissionfor Development Planning. It isworth noting that these ex officiomembers have the right to partici-pate in Board proceedings, but notto vote. This move to a user-domi-nated Board represents a majorpolicy change in Zambia – a delib-erate attempt to hand over owner-ship and responsibility for roads tothe private sector.

Initially, there were prob-lems in collecting the fuel levy.There were also misunderstandingsabout why the Road Fund was in-troduced, and for what purposesthe levy's proceeds should be used.About three months after theBoard was inaugurated, it recom-mended and obtained approvalfrom the Committee of Ministersfor the levy to be increased to K30.This and subsequent decisions haveprogressively boosted the RoadFund's income which now stands atabout US$1.3 million a month. Thepressure, which used to be on fi-nancing, has now transferred tothe preparation of acceptablespending programmes.

Operation of the NationalRoads Boards (NRB)

The NRB is made up of theChairman, Vice-Chairman, fivemembers and five ex-officio repre-sentatives from the public sector.The Chairman and Vice-Chairmanare elected by the Board.

The strength of the NRB liesin its efficient, dynamic and proac-tive secretariat consisting of an ex-ecutive secretary, an accountant, anengineer, and a personal secretary.It is a very slim but efficient set-up.Our strategy is to work with andthrough the existing organisationalframework. The Cabinet has giventhe responsibility for coordinatingthe Road Sector Investment Pro-

gramme (ROADSIP) to the NRB. Toensure that it can perform thisfunction and discharge the extraduties assigned to it, the Govern-ment has agreed that it can chargethe costs of its operations againstthe Road Fund, provided these donot exceed 5% of revenue.

One of the NRB's first taskswas to formulate policy guidelinesand procedures for disbursingfunds. These had to be approved bythe Board itself and by the Commit-tee of Ministers dealing with theRoad Maintenance Initiative. Theguidelines have been invoked bythe Board to reject funding applica-tions for road construction. In theface of severe pressure, it has beenfirm in its refusal to support con-struction at the expense of mainte-nance and rehabilitation.

As regards financial man-agement, the NRB is aware thatlarge amounts of money are in-volved in the Road Fund. Calls fortender to open bank accounts areissued at the beginning of eachyear and, following an evaluationof the offers received, six accountsare opened with separate banks.

The cardinal principles ofthe NRB are transparency and ac-countability in transactions. Thishas been achieved through the fol-lowing measures:

– Continuous dialogue with keyplayers, stakeholders and roadusers; to explain our mission,direction, programme, problemsand progress.

– Inviting the implementing agen-cies including District Councils, toparticipate in various committeesto discuss and formulate actionplans for road maintenance; insti-tuting a 'bottom-up', participatoryplanning procedure formaintenance at District, Provincialand National level.

– Calling for tenders before award-ing any contracts for road mainte-nance work and procurement ofmaterials and services.

The Auditor General and aprivate auditing firm audits theBoard's Accounts quarterly and an-nually.

An important element inthe strategy to involve road users inthe management of roads, and to

win their support, was the launch-ing, at the outset, of a supplementin the two daily newspapers. Thiswas designed to inform the publicabout the establishment of the Na-tional Roads Board. It has been fol-lowed up by monthly press releas-es, to keep the public abreast ofBoard activities and of what is hap-pening as regards funding for roadmaintenance. Another initiative de-signed to keep the public up todate in this area was the launchingof a weekly radio programme.

One source of the NationalRoads Board's strength has beenthe major donors’ unwavering sup-port for institutional and policy re-form.

Road maintenance andrehabilitation

The NRB has launched auser-driven National Programme ofRoad Maintenance in Zambia(NPRM). This was directed throughthe nine Provincial Road Engineersand the 74 District Councils in thecountry. Under the NPRM, theBoard pledged K7 billion (ECU 4m)for phase I of road maintenance upto December 1995 and a furtherK18bn (ECU 10m) for phase II cover-ing 1996. In 1997, the Board com-missioned road works to the tuneof K22bn (ECU 13m).

The NRB has a deliberatepolicy of developing local capacityin the field of road maintenance. In1995, it had problems obtainingcontractors in some provinces. Thesituation improved in 1996, thanksto the policy of encouraging entre-preneurs to enter the market andnow there is coverage for most ofthe country.

A National Task Forceunder the Chairmanship of the NRBwas constituted to prepare a 'draftbankable document to accessdonor funding' in connection withthe launch of the five-year RoadSector Investment Programme. TheTask Force provides a good exam-ple of private-public sector cooper-ation. Ten of its members, compris-ing private sector consultants andsenior government officials,worked for six months to produce adraft document which was thenpresented at a national workshopentitled 'Roads 2001 – the Way For-ward'. This event was attended by


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175 participants representing allthe key players and stakeholders.

The official communiqué is-sued from the workshop under-lined the importance of private andpublic sector participation in fund-ing road maintenance, seeing thisas a pre-requisite to 'economictake-off'. The ROADSIP waslaunched with rehabilitation worksin the capital, Lusaka. An agree-ment has been signed with theWorld Bank for an initial $70 mil-lion and other donors have madepledges of up to $400 million. Onethird of the funding for ROADSIPwill come from local resources –road users in Zambia are willing topay!

ConclusionThrough its National Roads

Board, Zambia now has three yearsof experience with the involvementof users in the management ofroads. During that period, we haveseen nothing less than a revolutionin institutional structures and in theway roads are managed. And the'output' of all this work – in termsof improved infrastructures – isnow beginning to be seen. In Zam-bia, we have managed to take thefirst and most crucial step towardsdeveloping adequate and sustain-able road services. It may be thatroad networks in neighbouringcountries are in a better conditionthan they are here, but it seemsthat we have a head start when itcomes to arrangements for sustain-able financing and management ofthe road network. And the key fea-ture here, is the commitmentof both the public and private sec-tors. It is a cooperative systemwhich is both extraordinary andunique.■ R.J

Many of the railwaysof sub-Saharan Africa are ina particularly parlous state,having been starved of in-vestment – and even basicmaintenance funds – formany years. In their presentcondition, it is unlikely thatprivate interests would con-sider outright purchase, butgovernments and railwaymanagements are increasing-ly looking at other ways ofattracting the business com-munity into railway opera-

tions. The buzzword today is 'con-cessioning'. This is a system whichhands certain railway operationsover to private companies withoutownership of the network beingtransferred. One such arrangement,already up and running, involves theline between Abidjan (Côte d'Ivoire)and Burkina Faso (see the articlewhich follows).

The concessioning concepthas also taken hold in SouthernAfrica. The Southern African Trans-port and Communications Commis-sion (SATCC) has an obvious interestin this subject, since many of the re-gion's key international transportlinks are railways, and in 1996, itcommissioned a study – with USAIDhelp – on railway restructuring oper-ations. This was followed up by aworkshop in Pretoria in Septemberof the same year. The followingwere among the conclusions reachedby the workshop participants:

– Concessioning is the preferred pri-vatisation approach.

The authors go on to high-light different types of concession-ing, acknowledging that 'the opti-mal form and extent... may differfrom one railway to another'. Vari-ous possibilities exist. At one end,there could be fully integrated con-cessions in which a private companytakes on all aspects of the railwayoperation from line maintenance tothe running of passenger trains. Al-ternatively, specific railway func-tions, such as the freight business orinfrastructure provision, could beput out to tender. Another possibili-ty is vertical integration where afirm takes on all aspects of running aparticular line. An idea which SATCCis enthusiastic about, is single con-cessions on lines that cross nationalborders. Governments understand-ably see their railways as importantstrategic assets, and might be partic-ularly hesitant about ceding controlof these key links. On the otherhand, such a system would allowmany of the costly border delays onthe vital rail corridors to be eliminat-ed.

One concern is that govern-ments may view concessioning, firstand foremost, as a way of boostingrevenue. Such an attitude, railwayexperts suggest, could threaten thewhole process. In going down theconcessioning route, the govern-ment's central objective, they argue,must be to achieve an efficient andsustainable railway operation.

Railway concessioning is cur-rently in its very early stages inSouthern Africa, but the idea cer-tainly seems to be building up ahead of steam. South Africa, with itsmore highly developed network isexpected to be in the forefront, butsignificantly, it was Malawi that re-cently broke new ground by publish-ing notice of a call to tender for arailway concession... on theInternet!■

Moving towards railwayrestructuring in the SADC region

There has been increasing recognition in recent years of the need toinject an entrepreneurial element into railway operations. Rail net-works are expensive to run and while it may be difficult to imaginewholly privatised systems operating without any public subsidy, thisdoes not mean that private sector disciplines should be neglected, orefforts to achieve commercial viability abandoned before they areeven begun.

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– Some form and degree of privati-sation is essential for SADC railwaysto achieve sustainable, commercialviability;

– the key factor that makes privati-sation essential is the need for con-tinuous, assured managerial autono-my, which is not possible when thegovernment retains the authority tomake management appointment,operational, business and invest-ment decisions for the railway;


The first railway concessionawarded in West Africa in-volves the rail link betweenCôte d'Ivoire and BurkinaFaso. Sitarail was set up inan attempt to reverse thedecline of the railways, aftermore than half a century ofstate domination in the sec-tor. From Dakar to Cotonouand from Douala to Maputo,African railways are (with

only a few exceptions) in a poorstate.Like other modes of transport andother economic sectors in Africa, therailways were badly hit by the seri-ous recession that struck the conti-nent in the 1980s. The deteriorationin the condition of the various railnetworks has accelerated over thelast two decades. In fact, the rail-ways of Africa have had very littlein the way of upgrading – at least inrespect of the 'permanent way' (i.e.the tracks) – since they were firstbuilt in the early years of this centu-ry. In West Africa, the only signifi-cant new developments since the in-dependence period have been theconstruction of the Yaoundé-Ngaoundéré line in Cameroon(1974), the Transgabon service link-ing Libreville with Franceville and, inBurkina Faso, the government-backed opening of the Oua-gadougou-Kaya link in 1985. Theidea behind this last scheme was toopen up the area containing theTambao manganese deposits butbecause of a lack of resources, theline had to stop at Kaya – and itdoes not actually reach the Tambaodeposit.

Whichever route one looksat – Dakar-Bamako, Cotonou-Parakou or Abidjan-Oua-gadougou-Kaya in West Africa, theline linking Ethiopia with Djiboutiin East Africa and many other rail

routes in central or southern partsof the continent, the thing thatmost railways have in common istheir decrepitude. There are sec-tions of track that are 50 to 70years old and have never been re-newed by the authories. As a re-sult, derailments are common andtraffic flow is seriously disrupted.

And yet no-one todaywould dispute the vital role of rail-ways in the economic develop-ment of the countries in question –especially of those regions throughwhich the permanent way passes.This is particularly the case in WestAfrica, where there is evidence ofa high degree of mobility amongthe workforce and whereeconomies are closely interdepen-dent. A natural 'additionality' hasalways existed between the Sahel,with its agro-pastoral tradition,and the vast consumer markets ofthe coastal areas. For many yearsthe mainstays of trade were cot-ton, salt and, above all, livestockfrom the Sahel which were ex-changed for gold, ivory and kolanuts from the coast. These tradingactivities formed the basis for apowerful development dynamic inthe region. Landlocked countriessuch as Burkina Faso, Mali, Nigerand Chad, located more than athousand kilometres from thenearest harbours, were heavily de-pendent on the coastal countrieswith their port and rail infrastruc-tures. Unlike roads, railways wereestablished early in these countriesas important tools for the smoothflow of trade goods.

The imperial powers, en-thusiastically building railways inall directions, were concerned toestablish lines of communicationwith the interior and providethemselves with tools to pacifytheir colonial subjects, whose con-stant rebellions represented an ob-

stacle to their 'civilizing' mission.In this context, the government in-spector, Fouquet, wrote in a reportin 1912 on the subject of plans fora railway: 'It will be a powerful civ-ilizing force, enabling us finally tosubjugate to our activities and in-fluence those sectors of the popu-lation that have hitherto resistedour authority.'

Traditionally, the railwayswere designed to draw the re-sources from regions of agricultur-al or mining production to theports for export. During the periodof the 'barter economy' in Africa,all routes led to the seaportswhere the materials were shippedout to be processed elsewhere.After many countries gained theirindependence in the 1960s, priori-ty in infrastructure was given toopening-up potentially rich areas.A race developed between coun-tries with access to the sea, allstriving to provide the best 'corri-dor' to the landlocked countries.

The traditional approach.

Work on building the raillink from Côte d'Ivoire to BurkinaFaso began from the port of Abid-jan in 1904. For many years, it wasthe only method of access to theCôte d'Ivoire interior and to theSahel which lay beyond. Dimboko-ro was reached in 1910, Bouakétwo years later and Ouagadougouin 1954. Thus, it took no less than50 years to complete this link.

The first section, connect-ing Abidjan with Azaguié in Côted'Ivoire, was brought into opera-tion in 1905, providing early con-firmation of the railway’s econom-ic vocation. From July that sameyear goods traffic increased from ahesitant beginning of 38.5 tonnesto reach 83.4 tonnes three monthslater. For the most part, the goodscarried were everyday consumerproducts such as rice, palm kernels,gin and fabrics. The locomotivesused had a powerful haulage ca-pability.

From the era of indepen-dence after 1960, the operationwas entrusted to an inter-statebody, the RAN (the Abidjan-NigerRailway Authority), which workedhard to increase traffic. As a result,the period 1970-1980 would turn

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The story of a railwayconcessionby Abdel Aziz Thiam*

* Managing Director, Sitarail.

out to be one of the best in thehistory of the network. Major in-vestments were undertaken and anew access of dynamism and effi-ciency made the RAN the 'jewel inthe crown' of West Africa’s railwaysystem. The company particularlyfocused its efforts on developingpassenger traffic, providing a di-rect service between Abidjan andOuagadougou which took 20hours. Traffic reached its apogeein 1978, with high-technologyrolling stock carrying almost900,000 tonnes of freight andmore than 4 million passengers.

Decline set in in 1979, astraffic volumes fell back. This waslargely due to the economic crisisthat hit Côte d'Ivoire following thefall in prices of its main exportproducts – coffee and cocoa. Burki-na Faso, most of whose importspassed through the port of Abid-jan, was affected even worse. Thisperiod was also characterised bysignificant new road constructionresulting in competition for railtransport. Railway income fellsteadily and those responsible formanaging the system found it dif-ficult to adapt to the problems ofthe period. In short, the RAN, withits 5200 employees, did not knowhow to react to the crisis.

At the same time that theRAN's ambitions to develop trafficon its existing routes were beingthwarted, projects to expand thenetwork from both Côte d'Ivoireand Burkina Faso collapsed. Therewere plans, for example, to extendthe line to Guinea via Man in Côted'Ivoire's cacao-growing regionand then on through Nzérékoréand Kankan to Mali. The wider

scheme included a major east-westlink from Bamako throughBougouni, Odienne, Sikasso andNielle to Ouagadougou and thenonwards to Niamey in Niger viaDori and Tera. But these projectswould never see the light of day.And worse was still to come. In1985, political disagreements arosebetween Côte d'Ivoire and BurkinaFaso, following a change of politi-cal system in the latter. In 1989 thetwo countries opted for separatemanagement of their railway sys-tems.

It was against this back-ground of a management crisisand of political difficulties that thetwo rail companies began their op-erations. In short, the now sepa-rate national companies started upin the worst possible conditions,with virtually no funds, poorrolling stock and against a back-ground of squandered resources.In 1993, only 250,000 tonnes werecarried on the route and 75% ofincome generated was absorbedby the wage bills. The debt owedby the Abidjan-Ouagadougou rail-way reached a critical level of ECU150 million.

It was an untenable situa-tion, but it was to take three yearsbefore attitudes on both sideswould become more conciliatory.Neither state had the resources tomake the investments required tokeep the railways operating effi-ciently. At the prompting of theirfinancing partners, the WorldBank and the French DevelopmentFund, the two countries agreed to

study a plan for the survival of therailway – that was otherwise fac-ing inevitable demise. A conces-sion arrangement was seen as themost appropriate solution, and on12 December 1994 this was provi-sionally awarded to the Sitarailgroup. The operation of the net-work was entrusted to the compa-ny for a period of 15 years, renew-able every 5 years. Two investmentcompanies – SIPF in Côte d'Ivoireand SOPAFER in Burkina Faso –were set up to manage the admin-istration and accounts of the assetstransferred.

After two years of declinethe Abidjan-Ouagadougou net-work is slowly recovering, thoughthe inheritance is a difficult one.The rolling stock is obsolete andthe deficiencies of the network re-quire heavy financial investment:ECU 25m to rehabilitate existing,and acquire new, rolling stock andECU 34m to improve and renewthe fixed infrastructures. Of thistotal of ECU 59m, Cote d'Ivoire isresponsible for ECU 26m, BurkinaFaso for ECU 19m and Sitarail forECU 13m.

Economic integrationWhen Sitarail began oper-

ating in August 1995, it confront-ed a serious problem. Of its 20 lo-comotives, only eight were fit foruse. The company therefore decid-ed to increase its haulage capacityby buying new rolling stock fromSouth Africa. It also reduced itsworkforce by 40%, got the ma-chinery turning again and set outto regain the confidence of cus-tomers – who had long since aban-doned the railways. During thefirst year of operation, it carried410,000 passengers and 485,000tonnes of freight (an average of110 trains a month). The followingfinancial year saw further increas-es, to 444,000 passengers and744,109 tonnes of goods. Thanksto an emergency investment pro-gramme that enabled some sec-tions of track to be renewed,Sitarail increased its monthly aver-age to 140 trains.

Trade flows between thetwo countries have become morebalanced. 85% of the tonnagemoved from Côte d'Ivoire to Burki-na Faso is in the form of hydrocar-


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In the 1970s the RAN focused its efforts particular-ly on the development of passenger transport.


bon fuels, containers, cereals, fer-tilisers and clinker (the basic mate-rial for the big cement works inOuagadougou). This type of trafficis expected to remain importantand there are hopes of expandingtrade in fuels with Mali once amajor hydrocarbon project therehas been finalised. This will entailsupplying Mali from stocks held atBouaké, by railway, with a view totackling the fraud that has beendiscovered in the current tradingarrangement. In 1996, Côted'Ivoire suffered losses of aboutECU 6.5 million as a result of thisfraud.

There have also been sub-stantial increases in the volume ofiron and steel products such assheet metal coils and pylons trans-ported to Burkina Faso (notably tothe towns of Bobo Dioulasso andBanfora). Although there is less re-turn traffic to the coast, as men-tioned, the situation is improving.Côte d'Ivoire is still largely depen-dent on the Sahel countries forpoultry, live animals, driedfruit/vegetables and cotton. As faras the demand for protein is con-cerned, national production is in-adequate to meet the demand,and the gap is filled through im-ports of meat and livestock. It is es-

timated that Côte d'Ivoire pro-duces 19,500 tonnes of beef prod-ucts, 6000 tonnes of small rumi-nants and 8000 tonnes of pigmeatannually (31,500 tonnes in all)while overall demand is 101,000tonnes of meat. Much of the bal-ance that must be met by importscomes from the country's Sahelneighbours, with a growing pro-portion coming in from BurkinaFaso by rail.

Impact on the privatesector

After three years’ opera-tion, the Sitarail experience offersan encouraging example. Despitethe difficulties encountered, it hassucceeded in breathing fresh lifeinto the rail network and, conse-quently, in helping to revitalise theeconomies of the two countriesconcerned. Since it began opera-tion, Sitarail has paid a wage billof more than ECU 8.5 million, set-tled its taxes and repaid outstand-ing debts.

In addition, the railway re-naissance has boosted the supportenterprises that specialise in re-pairing rolling stock (goods wag-

ons and passenger coaches). Moreof these have been set up and theyare increasingly diversifying intoother specialised and more sophis-ticated aspects of railway activity –such as overhauling of locomotivesand lifting gear. Their expertisehas also been extended in areassuch as accountancy, tax adminis-tration and training. In Abidjan,the main centre of activity, and inOuagadougou, a number of medi-um-sized enterprises, many set upby former agents laid off by therailways, have become involved insubcontracted works such as scrubclearing on the line, level crossingmanning and providing personnelfor other railway operations.

Other enterprises, bothlocal and foreign, have been giventhe task of restoring railway instal-lations. Overall, some 200 compa-nies, with an annual turnover ofalmost ECU 3 million, and scat-tered throughout the territories ofthe two countries, are involved inthe railway business. Other thanhighly specialised replacementparts, that can only be procuredabroad, Sitarail obtains its supplieslocally from contractors selectedby tender. The total value of thesepurchases amounts to ECU 4.6 mil-lion.

After nearly 20 years of de-cline, the Abidjan-Ouagadougourailway is enjoying a new lease oflife. Inspired by this example,many other African states are nowshowing an interest in privatisingtheir railways. Indeed, how couldthey fail to be interested, giventhe underdeveloped state of mostof their rail networks? With over-manning and chronic financialdeficits, the railways are experienc-ing ever-increasing difficulty inperforming their public servicefunction.

In an era of privatisation inAfrica, the railways will have aleading part and they should beready to embrace the challenge.The prospects can be bright, andthe third millenium should see thebuilding and consolidation of large-scale regional systems.■ A.A.T.

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The defective state of the network calls for sub-stantial financial investment.


For many years civil aviationhas been treated as an infantindustry, in need of strictprotection by governmentsfrom the harsh effects ofcompetition. Detailed ruleson routing, capacity and tar-iffs, agreed between govern-ments in bilateral air servicesagreements, limited the abil-ity of air carriers to compete,

or to react to consumer demand.Logically, this led to inefficiency,high fares and a maze of anti-com-petitive arrangements betweenthem. Much has changed in the lasttwo decades. The deregulation ofthe important US domestic market,followed by the completion of theinternal market for civil aviation inthe EU and, more recently, the be-ginnings of liberalisation of regionalmarkets in Latin America and theCaribbean have changed this situa-tion. Also, the active policy pursuedby the US government to changerigid bilateral agreements into moreflexible open skies agreements hascontributed to a fundamentally dif-ferent regulatory structure. In thesemore flexible operating environ-ments, aviation has been able to de-velop from a government-controlledindustry into a market-oriented andcompetitive sector of the economy.

Strangely enough, not allregulatory relics are being recon-sidered. Since air carriers wereviewed more as an instrument ofpolitics than as a commercial en-terprise, the rules prescribe thatthey have to be owned and con-trolled by the state, or at least bynational interests. These provisionscontinue to influence develop-ments in the aviation industry andare an important reason why, eventoday, it is impossible for carriersto enter into cross border mergerslike any other industry, or to set

up subsidiaries in other parts ofthe world. They have to rely onmore fragile alliance arrangementswith no, or only very limited, capi-tal investments. In this way, the in-dustry has found a way round theforeign investment restrictions butno alliance can give the same mea-sure of integration and control asa full merger.

There is little doubt thatliberalisation and deregulationhave contributed significantly toan unprecedented growth of theair transport sector. In the lastdecade, scheduled passenger traf-fic has increased on average 5.1%per annum. The total number ofpassengers carried worldwide onscheduled services is approachingone and a half billion, while thenumber of freight tonnes carried isnow in the order of 25 million.This would not have been possiblein a tightly regulated and govern-ment-controlled operating envi-ronment.

Trends

However, not all regions ofthe world share in this develop-ment. Europe, North America andthe Asia/Pacific regions togetheraccount for some almost 90% ofthe total world scheduled air traf-fic, the Latin American andCaribbean regions represent 4.8%,the Middle East 3% and the wholeAfrican region just 2.3%. Withinthese regions, Asia/Pacific had thehighest rate of growth during thelast five years, until the economicproblems started, while Africa hadthe slowest traffic growth (9.7% asagainst 3.3%)1.

The limited participationof African carriers in the total re-

flects, of course, the economic situ-ation of the region and these lowgrowth figures have widened thegap between Africa and the rest ofthe world even further. Fortunate-ly, the International Civil AviationOrganisation (ICAO) is forecastinga better than average perfor-mance in this region for the nextthree years. This is due, in part, tothe better economic outlook inAfrica – the IMF predicts a 4% an-nual growth this year, – and alsobecause efforts towards restructur-ing of air carriers are beginning topay off.

The African regionIf we focus a little closer on

Africa, and use it as an examplefor the situation faced by most de-veloping countries, there can beno doubt that air transport is avital element of its internal and in-ternational transport network.Since alternative means of trans-port are mostly underdevelopedand very costly to build up, moststates in the region have to rely ontransportation by air for their na-tional economic development andintegration.

This may be one of the rea-sons why the African market hasnot been liberalised. Governmentscontinue to give protection fromcompetition and exert strict con-trol over airline operations. As aconsequence, the markets arefragmented and route networksunderdeveloped. Privatisation ofcarriers is not well advanced; manyAfrican airlines are subject to polit-ical influences and continue tohave unstable management. Theylack the capital needed for invest-ments in new and efficient equip-ment and are unable to attractnew funds. Maintenance and in-vestment in airports and air trafficmanagement services are long

Perspectives for airtransport indeveloping countriesby Ludolf van Hasselt*

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* ICAO, Montreal.1 Statistical data: ICAO publication The

World of Civil Aviation, published annually


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overdue and this has a negative ef-fect on safety. As a result of allthese problems most carriers are ina day-to-day struggle for survival.They cannot create the necessarycritical mass to benefit from thegrowth of world markets and arenot attractive as a partner for oneof the large European or Americancarriers. With the notable excep-tion of Kenya Airways, which hasentered into an arrangement withKLM, air carriers from this regionare not part of global alliances2.

Therefore, there is an in-creasing gap between the stagna-tion of the air transport sector inAfrica and the rapid developmentstaking place elsewhere in theworld. This gap will widen evenfurther, because the expectedgrowth of air transport in theyears to come will force carriersworldwide to spend a lot ofmoney on measures to limit thenegative effects of this growth.For each of the next three years,the number of aircraft movementsis expected to increase by 6.6%and for the years following, noslow down is foreseen, leading toa doubling of passenger numberswithin the next 15 years. Urgentaction is required to limit the ef-fects of this growth on the envi-ronment and on safety. The invest-ment required already creates aheavy burden for air carriers in the

developed world, who complainbitterly about the rise in all sortsof costs. For carriers in developingcountries this may simply mean theend of their participation in inter-national air transport.

EnvironmentThe environmental impact

of civil aviation is under severe po-litical scrutiny in many parts of theworld. Unless the impact each air-craft movement has, in terms ofnoise and emissions, is substantial-ly reduced, it will become political-ly impossible for many govern-ments to accept a large-scaleincrease in traffic. Such a develop-ment would inevitably lead to fric-tions and create major problemsfor the air carriers of the world.

In order to reduce thenoise impact of aviation, ICAOadopted, some 20 years ago, stan-dards that envisage a gradualphasing-out of noisy so-called'Chapter 2' aircraft. These includethe B-727, DC9 and older variantsof B737 aircraft. These aeroplanes– some 4000 in total – will not bepermitted to operate after theyear 2002 unless they are upgrad-ed to the less noisy 'Chapter 3'standard. Under pressure frompublic opinion, these measures arenow considered insufficient bymany in the developed world, andin particular in Europe, where thenoise problems are the most se-vere. European governments,therefore, not only envisage more

stringent rules for the upgradedChapter 2 aircraft, but will alsopress for even higher standardsthan Chapter 3. This may be justifi-able from an environmental pointof view, but for carriers in devel-oping countries, who are the mainusers of these older generation air-craft, it means heavy investmentsin upgrading equipment, andmore depreciation of their currentfleet. These costs do nothing toimprove their balance sheets, buthave to be incurred just to be ableto continue operations into theEuropean market.

Also in the area of emis-sions of poisonous gases, mainlyNOx in the upper atmosphere,ICAO is charged by the world con-ference on climate change – heldin Kyoto last year – to developmeasures to reduce the impact ofaviation. Again, from an environ-mental standpoint, it is only logicalthat the aviation sector shouldmake a contribution to the task ofreducing environmental problems,but for developing countries, it im-plies investments, without addingany new economic opportunities.

Safety

The expected growth inaircraft movements also leads toconsiderable safety concerns. Al-though statistically, air transport isthe safest mode, an additional ef-

Africa accounts for just 2.3% of the world'sscheduled air traffic.

2 It has been reported that South African Air-ways is a potential partner in the STAR alliance.


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fort will be required from govern-ments and airlines to prevent anincrease in accident rates in a situ-ation where many more aircraftcrowd the skies.

ICAO’s work largely con-centrates on developing standardsto ensure the safe operation of air-craft, but it is the responsibility ofthe states to ensure the applica-tion of these standards in practice.It has become increasingly clear,however, that many developingcountries do not have the meansto ensure compliance with thesafety standards, as this requiresqualified, and therefore expensiveinspectors, and a well-organisedand independent administration.In an effort to strengthen the ap-plication of the minimum stan-dards set by the Organisation, itwas decided at a conference of Di-rectors General of Civil Aviation inNovember 1997 to give ICAO anexecutive role in ensuring thatstates effectively oversee compli-ance with these standards. Thismean that from now on, teams ofICAO inspectors will audit the safe-ty oversight function of the Mem-ber States of the Organisation.

From a safety point ofview, this new ICAO activity is nec-essary, but it will undoubtedlyhave financial implications for anumber of countries that do nothave the means to comply in fullwith their international obliga-tions. It will also have severe ef-fects on the carriers who will ulti-mately have to provide the fundsfor more stringent application ofsafety standards.

There will be other costfactors resulting from the expect-ed growth of air transport. For ex-

ample, air navigation charges willrise because of the introduction ofsatellite-based air traffic controlsystems capable of meeting futuredemand. Airport charges will goup to meet the costs of airport ex-pansion programmes. Insurancewill be more expensive to covermuch higher liability limits. Thenthere are possible environmentalcharges, increasing costs for sellingand marketing via computer reser-vations systems and costs for secu-rity. It is clear that if they want tomaintain their current marketshare, airlines from developingcountries will be forced to makevery heavy investments. Withoutsuch investments, their services toand from developed countries willbe severely restricted and ulti-mately they will be reduced to re-gional operators only.

How to attract thenecessary funds

Carriers in developingcountries find themselves, as a re-sult of these developments, in animpossible position. They are re-quired to make major capital in-vestments in order to meet morestringent environmental, safetyand other standards that are beingdeveloped, but they are in no posi-tion to attract the necessary funds.They are – in most cases – govern-ment-owned and controlled, butthe authorities do not have the re-sources to make these investments.They operate in a protected andregulated environment, which dis-qualifies them as partners in oneof the global alliances. Finally,they suffer from government in-

terference and have to meet manynational policy goals that arerarely financially attractive.

Many governments inAfrica realise that something mustbe done, and this is the reasonwhy a significant number of themhave announced plans to privatisetheir air carriers. This would allowthe carriers to restructure, becomemore commercially oriented andattract new funds, or an airlinepartner. However, privatisationsalone may not be enough to meetfuture challenges. Foreign in-vestors, before they are preparedto invest their money, will want tohave full control over such a carri-er. Under the current regulationsthis is not possible; the rules dic-tate that substantial ownershipand effective control has to remainin the hands of the state, or of na-tionals of the country in question.It may be necessary, therefore, toreconsider these rules for develop-ing countries and allow carriersthat are 100% owned and con-trolled by foreign investors to op-erate as a national carrier. Thissubject has already been discussedin ICAO and recommendationswere developed for alternatives tothe existing ownership and controlprovisions.

Furthermore, changing theownership structure alone will notbe enough to attract investments.Urgent action must also be takento liberalise the operating environ-ment in developing countries.What has already been done in theCaribbean and South American re-gions must also be done in Africa.By opening up the market on a re-gional basis, the carriers becomemore competitive and can developmore attractive route structures.

Finally, the EC may be ableto give a helping hand in this de-velopment. It has gained experi-ence with liberalising the internalmarket, it has funds to help in therestructuring process and it has amoral obligation to help carriers indeveloping countries to make theinvestments it intends to imposeupon them for safety, environmen-tal and other reasons. A good airtransport system is not a luxury, itis essential for the developmentprocess.■ L.v.H.

Urgent action must also be taken to liberalise theoperating environment in developing countries.


The Agency for the Securityof Aerial Navigation in Africaand Madagascar (ASECNA)has 16 Member-States andmonitors 16.1 million km2 –an area 15 times that ofWestern Europe. It is regard-ed as one of the best-run in-ternational public bodies inAfrica. Its area of activitycovers six flight-informationregions and the organisationnow supervises 10 trafficcontrol centres, 57 controltowers, 25 international air-ports and 76 other airports.Not surprisingly, the volume

of air traffic in the sub-region iscontinuing to grow with successiveincreases in 1994 and 1995 and afurther 2% growth in 1996, to morethan 155,000 aircraft movements. Inthe same year, passenger andfreight figures also revealed an up-ward trend with increases of about4% and 8% respectively. The actualfigures were six million passengersand 148,000 tonnes of freight car-ried in 1996. The growth is due, atleast in part, to the progressivederegulation of air traffic in Africa.

The organisation which Maurice Ra-jaofetra has directed since 1987 isnow financially independent andhas made important progress intechnical terms, making use of thesurveillance satellites which coverits area. In addition to the politicalbenefits of this joint operation,ASECNA has been able to obtain fi-nancing from regional credit sys-tems, EDF funds and the EuropeanInvestment Bank at highly advanta-geous rates. Among other things,this has enabled the organisation toestablish a reliable navigation sys-tem for which Member-States donot have to pay any annual fee. Inthis interview with The Courier, theASECNA Director General (a formerhead of Air Madagascar) explainedthe workings of the organisationand his role in it.

This has been due to its ability tocentralise operations – with a sin-gle command for greater flightsafety – and to set up what is re-quired to expand air traffic inAfrica. The modern world, howev-er, requires greater rigour than inthe past and this has led to moreeconomic pressures. It is becomingincreasingly costly to manage smallareas of airspace. Navigation sys-tems in future will increase in effi-ciency and profitability as theareas they manage become largerand more homogeneous. ASECNAhas always been aware of thiswhich is why it has long been com-mitted to setting-up a new world-wide system, the CNS/ATM. Thiscommitment has borne fruit andwe now have the ambitiousTelecomm project, which I shallcome back to later. In fact, thetrend is increasingly towards pri-vatisation of aerial-navigationagencies at a time when air trans-port is being deregulated. This alsohas economic advantages.

■ On the eve of the new milleni-um, the talk is increasingly of newnavigation systems. Could you tellus something about this?

– In the early 1980s, the In-ternational Civil Aviation Authori-ty (ICAA) recognised the ever moreobvious limits of the aerial-naviga-tion systems of the time and thefact that there was a need for civilaviation in the 21st century to begreatly improved. Studies of thesubject resulted in the setting-upof new worldwide communica-tion/navigation/surveillance (CNS)systems and systems for air-trafficmanagement. From the outset,ASECNA took an active role inwork aimed at establishing theseand it has every intention of con-tinuing to participate in delibera-tions and in setting-up the variousmechanisms chosen by the ICAA.

■ In layman's terms how wouldyou define these new systems?

– The process of guidingan aircraft to its destination safely

and effectively has been subdivid-ed into three separate functions:communications, navigation andsurveillance. The first, communica-tions, involves the exchange of in-formation between aircraft andthe air traffic controller. Naviga-tion gives the precise position ofthe plane, and surveillance is thecollation of all the informationgenerated by the first two func-tions, which facilitates the task oftracking the aircraft's relative posi-tion. These three functions are thebasic support services provided byair traffic management (ATM),whose principal objectives are tospeed up air traffic and guaranteethe safe and smooth running of allthe various stages involved. Thenew idea is to use satellites to en-hance reliable, high-performanceand consistent management of theskies.

■ Satellites appear to have revolu-tionised air traffic operation. Willthey make flying safer?

– Absolutely. Satellites willbe used to convey information be-tween pilots and controllers. Wewill be able to bypass the ground-based navigation aids which, insome countries in Europe and theAmericas, are even now unable todeal with the increased traffic. Theresult of this is that airports have

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'Africa's skies are guaranteed safe'

– ASECNA has now beenaround for 30 years and it has itsown international brand image.

reached saturation point, andplanes are kept too long, either inthe air or on the ground, awaitingtheir slot. All this means that bothtime and money are wasted. Safe-ty is also compromised because toomany aircraft are in too small aspace. From a technical standpoint,using our former technology, it isdifficult to provide proper cover-age over 16 million km2 of air-space, particularly when the landbelow is largely virgin forest ordesert. There are problems in in-stalling, and notably in maintain-ing equipment, so keeping it oper-ational under such conditions is noeasy task. We don't have the sameconstraints with the new satellitesystem.

■ How do you see the situationevolving as air traffic volumes toAfrica increase?

– There is going to morecompetition, and quality of serviceand cost will make all the differ-ence. Suppliers will be more nu-merous and there will be newequipment options depending onthe kind of navigation that is de-sired. Air-space managers will haveto be very competitive, becausetheir customers will have severalchoices. You are probably alreadyaware that with the progressivederegulation of air traffic, espe-cially in our continent, aeroplanemovements have increased from78,000 in 1960 to 148,000 in 1994.Passenger numbers are up from1.4 million to 5.2 million while theamount of freight carried hasgone from 59,000 tonnes to140,000 tonnes. Expansion in theseareas is constant and there aremore aircraft to guide. This is thechallenge facing us, and we willmeet it by bringing on-line the sys-tems that are currently being in-stalled.

■ What components of this newsystem have been set up in yourMember-States?

– We have already testedthe ADS automatic surveillance sys-tem. This concept is probably themost important application in air-traffic control for our type of air-space, where the reporting of posi-tions is often the only means ofsurveillance possible. The trialsbegan in ASECNA’s flight-informa-

tion regions in October 1994, andare currently being concluded.They have been carried out withthe assistance of Air Afrique air-craft, the UHF network, the SitaAircom satellite and ASECNA’sown X25 network.

■ What is this network

– The introduction ofCNS/ATM systems led ASECNA toinclude the 'Telecomm' project inits 1992-1996 procurement sched-ule. This resulted in the setting-upof a data-transmission networkcalled X25 and to the validation ofan operational-data-transmissionand processing system for aerialnavigation and meteorology,which we have been able to installat our main centres.

■ Did the organisation fund theproject itself?

– It is co-financed usingASECNA’s own resources and asubsidy from the Aid and Coopera-tion Fund (FAC). The novelty isthat, nowadays, the 16 Member-States no longer have to pay anyannual fees. ASECNA is currentlyfinancially independent. It canmeet its obligations without hav-ing to approach the Member-States for funds. The various ser-vices and aeronautical royaltiesenable us to fulfil our commit-ments.

■ The investments you have spo-ken about are pretty substantial.At a time when other inter-statestructures in Africa are practicallyon their knees, how have youmanaged to abolish the fee systemwhilst still guaranteeing theAgency's smooth running?

– It is based on an under-standing between all those in-volved in the sector – airlines,Member States and ASECNA staff.First, we tackled the problem ofwaste. This set in train our finan-cial recovery. Investments aremade in line with airlines' require-ments and the royalty levels aredetermined on the basis of actualcost. Following an internal audit ofour accounts, we gained the confi-dence of our customers and of po-tential donors who took note ofthe 'clean-up operation'. As a re-sult, the donors have shown theirfaith in us and have provided uswith the means to implement ourexpansion policy.

I should point out thatASECNA is not just a companywhich sells services; it also purchas-es them.

■ From what you said earlier,telecommunications would appearto be a key priority.

– Telecommunications playa fundamental role in aerial-navi-gation safety. Recognising thisfact, ASECNA has set up a satellite-based aeronautical telecommuni-cations network. Following the in-auguration of the Ivato landstation in June 1997 and of theDiré A0m-Tman (Chad) and Bouar(Central African Republic) stationsin December, this network nowcovers all flight-information re-gions controlled by us. It enablesus, on an ongoing basis, to providereliable links between airports andaircraft in the skies. Initiated in


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'Air traffic movements have increased from 78,000in 1960 to 148,000 in 1994.'

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Central and East Africa with aidfrom the European DevelopmentFund, we have been able to set upland stations in Bangui, Brazzav-ille, Douala, Libreville, Ndjamenaand Niamey. The Dakar and Abid-jan land stations have also beenestablished, with EIB financing.

■ The continent has suffered anumber of plane crashes. Do thenew technologies enable you tocounter claims that Africa is ahigh-risk area for air travel?

– It is important to under-stand that crashes are not justcaused by air-traffic control, butalso by the condition of the air-craft and by pilot error. The set-ting-up of the land-station pro-gramme demonstrates our will toexpand VHF coverage of airspacemanaged by the Agency and to re-duce HF coverage. The VHF tech-nique is used to support exchangesbetween controllers and pilots inthe air, providing better soundquality compared with the HF sys-tem. VHF is still the best way forthe controller to monitor airspaceand he can be confident that hisinformation is transmitted. Thesame goes for the controllers'crews. I would even go so far as tosay that, for the area which wemanage, the satellite system is theonly one we can truly rely on. Inthe past, owing to space-coverageproblems, it was not possible to

speak of aviation control – we re-lied more on in-flight informationrather than aerial control over asizeable part of our airspace. Thenew technology has enabled us toimprove conditions and we aremoving increasingly towards a sit-uation similar to that in Europe orthe US.

■ Civil aviation appears to be at aturning point. Do you anticipatethis sub-region taking further ad-vantage of the new technologiesthat are coming on stream?

– As I have indicated, forASECNA, the transition towardsCNS/ATM systems has alreadybegun and the sub-region willsoon be using these new methods.We also need to be in a position tocontrol our development – interms of what we consume anduse, but also as regards participa-tion in the long-term supply of cer-tain items through partnerships orjoint ventures. Technology transferis actually taking place in someparts of the region and should beencouraged with the advent of thenew systems. Also, eight Member-States – Benin, Burkina Faso, theCentral African Republic, Equatori-al Guinea, Mali, Senegal, Chad andTogo – have made us responsiblefor managing their national aero-nautical activities. This means we

can diversify our services furthertowards airport management,maintenance and grading offlights, among other things.

■ Given the changes that are tak-ing place, are there likely to be re-dundancies among the agency's54,000 employees in the longerterm?

– This aspect has not es-caped our notice and we are plan-ning a slow reconversion of ourstaff. Moreover, with the newworldwide regulations coveringnoise pollution, the fleets of someAfrican airlines will become obso-lete and will have to change. Thismeans a high level of investment,and we believe that those coun-tries facing other financial con-straints as well will not be able tomeet these charges. It is likely,under the terms of the 1988 Ya-moussoukro Declaration, that thetrend will be towards the setting-up of a joint operations. This isone way to safeguard the survivalof national-flag carriers and devel-op an intra-African network of airtransport. We know that, nowa-days, to go to Zambia or Angolafrom Dakar, you have to go via aEuropean capital and then comeback to Africa, which is a prepos-terous state of affairs. Also, theend of apartheid in South Africawill enable us to expand our net-work further.■ Interview by M.F.

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The EDF-financed Antananarivo land station(Madagascar).


Few today would questionthe importance of transportinfrastructures for the eco-nomic performance of devel-oping countries. The lack ofadequate transport servicesin most ACP states is one ofmany factors that holdsthem back, and is an obsta-cle to improving the socio-economic situation of theirpopulations. The acutenessof this problem in Africameans that a concentrated

effort is needed at every level tomake up the ground lost in the sec-tor since the end of colonial rule –while, at the same time, boostingthe process of regional integration.

In the Caribbean and Pacif-ic regions, made up mainly ofsmall island countries, the situa-tion is somewhat different. Trans-port issues have to be perceived inthe light of the specific economic,social and physical features con-fronting these islands.

Looking first at the Pacificnations, these are mainly archipel-agos that are widely scattered overthe ocean. They are seen by manyas the closest thing to 'paradise'and have a relatively wide rangeof natural resources. But for thepeople who live there, not 'every-thing in the garden is lovely'.While some islands are of volcanicorigin, others are so low-lying thatthey could be dangerously ex-posed in the event of a global risein sea levels. And many are suscep-tible to cyclones. The exact route

of these devastating winds cannotbe easily predicted but we knowthat they occur every year and,sooner or later, one or other Pacif-ic island finds itself directly in thepath of a fierce tropical storm.These isolated spots of land arealso a great deal further apartthan many people imagine. For ex-ample, if you want to travel fromBougainville (Papua New Guinea)to Apia (Samoa), the distance in-volved is 4500 kilometres! They arealso a very long way indeed fromthe other continents. Even 'nearby'Australia, a key trading partner forthe Pacific states, is no less than3200 kilometres from Fiji.

A further aspect is that theislands are relatively lightly popu-lated. The only exception here isPapua New Guinea which hassome four million inhabitants (twothirds of the ACP population in theregion). At the other extreme, Tu-valu has a population of barely10,000.

Broadly speaking, the eco-nomic activities of these smallcountries are commensurate withtheir size. In these circumstances, isit worthwhile providing them withtransport facilities that allow themto cover long distances quickly?This question has long exercisedthe minds of the various donors.Can substantial investments be jus-tified when the volume of transac-

tions is so low? Some expertsargue that they cannot, but othersmaintain that the lack of suitabletransport is more a cause than aconsequence of the region's weakposition when it comes to trade.There is no denying the hard reali-ty that domestic and internationaltraffic – in goods and passengers –is relatively constrained. But it isalso important to acknowledgethe very real needs of the urbanand rural populations of the Pacif-ic, and the difficulties they have toconfront.

The huge distances to becovered and the limited size of themarkets combine to ensure thattransport services in the region areextremely expensive – so expen-sive, in fact, that many people areunable to afford them. Small andmedium-sized enterprises, whichimport or export products, are pe-nalised for the same reason. Ship-ping is costly, and airfreight evenmore so, and this is a real disincen-tive to companies which have todevote a significant share of theirturnover to moving their goods. Inaddition, the options available arelikely to be very limited and whatservices there are (cargo vessels,flights etc) may be infrequent andirregular. The effect of all this is todisrupt delivery times and createproblems with product storageand preservation of perishableitems. A country like Vanuatu, forexample, experiences serious diffi-culties in exporting its copra andbeef. Taken together, these obsta-cles make inter-island trade partic-ularly problematic.

At a macro-economic level,transport costs relating to the im-port of everything from capitalequipment to simple consumerproducts have a major effect onoverall prices in the region. Inshort, the cost of living is high be-cause of the expense involved inimporting vital goods. For this rea-son, improving sea and air linkshas naturally become one of thecentral concerns of both nationaland regional authorities in theSouth Pacific.

The art of the possibleThe problems facing the

countries of the Caribbean bear aclose resemblance to those en-

The Caribbean and the Pacific

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Béquia airport in the Grenadines.Improving the functioning and safety of

transport infrastructures.


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countered in the Pacific (geo-graphical remoteness, restrictedmarkets, inadequate transport andcommunications, natural disasters)even if the distances involved aresomewhat less. Tourism, one ofthe region's most importantsources of foreign currency andjobs, is very heavily dependent onthe quality and safety of the avail-able transport services.

Air and sea are the formsof transport most widely used bythe people of the Caribbean andby the tourists who spend time onthe islands. Air travel is regardedas the most popular and effectivemode, and virtually monopolisesthe attention of the governmentauthorities and the various multi-lateral and bilateral cooperationinstitutions when it comes to con-sidering transport policy issues.The volume of air traffic has in-creased significantly in recentyears. This has made it imperativeto improve the efficiency and relia-bility of airport installations so asto ensure safer and more depend-able services. Not surprisingly, vir-tually all the Caribbean stateswould like to be at the 'top of theleague' in terms of airport facilitiesand connections but questions ofprofitability have meant that am-bitions cannot always be realised.Despite this, aid and loans onfavourable terms from institutionssuch as the Inter-American Devel-opment Bank and the World Bankhave enabled a number of sites tobe upgraded. The EuropeanUnion, for its part, has financedseveral airport building or im-provement projects using re-sources earmarked for regional de-velopment. One such example isBéquia airport in the Grenadines.A runway, terminals and a controltower have been built, and the in-frastructure has now been opera-tional for more than five years.Other modernisation and enlarge-ment projects are at the planningor execution stage in several statesin the region.

As for the provision of avi-ation services, the two Caribbeancompanies that share the bulk ofthe market, Air Jamaica and BWIA,have underperformed financiallyin recent years. However, becauseof their vital importance to

tourism and the income generatedby this sector, government plansfor their recovery and supporthave already been conceived. Theexact nature and scale of the assis-tance which will be made availableto the two operators remains to beseen. Arguably, the best thingwould be to go for a partnershipor even a full merger of the air-lines, but the whole issue is sensi-tive and it is currently the subjectof sharp debate. Providing effec-tive air transport services, both in-ternally within the Caribbean andin the long-haul sector, is a subjectthat is fraught with difficulties,given the background of intensecompetition. And when we hearthat the government of St Lucia,anxious to create a link with theUSA to sustain its tourist industry,has had to find nearly a millionand a half dollars to avail itself ofthe services of American Airlines –at the expense of the main localairlines – questions clearly ariseabout the amount of cohesionthat actually exists at regionallevel.

Sea transport networks, inboth the Caribbean and the Pacif-ic, need also to be strengthened toprovide more regular services be-tween the various islands. Ship-ping is, after all, an essential com-plement to air transport as well asbeing the only viable method oftranporting bulk goods. This is es-pecially true for the small and iso-lated islands of the South Pacific,which could not survive economi-cally if cut off from the rest of theworld. Despite the programmes al-ready undertaken, there is still ashortage of freighters and associ-ated equipment (containers andcranes) for moving products suchas bananas from the Caribbean. Inresponse to this problem, someports have been fitted out to ac-commodate high-tonnage ship-ping, while others have been built

to meet the requirements of thevital fisheries sector. Ferry serviceshave been developed to carry localpassengers and tourists. The estab-lishment of sea and river accessroutes and an increase in the num-ber of disembarkation pointsshould significantly increase traf-fic. It should be mentioned thatthe state of the roads in some is-lands is so poor that it is some-times preferable to travel by seawhen moving from one coastaltown to another within the samecountry.

Ultimately, the answer tothe specific transport problems ofthe Pacific and Caribbean islandslies in improved coordination ofactivities at regional level. This ap-plies to arranging airborne orseaborne coverage of internal andexternal routes, but also to theprovision of infrastructures tomeet the special needs of these re-gions. It is also essential to provideeasier access to transport servicesfor the local inhabitants, who areoften impoverished, and so boostthe process of integration in theseregions.■ K.K.

The shipping network is still an essentialcomplement to air transport in island countries.


The 'internation-al community', frustrated atthe sight of known warcriminals escaping justice,has made it clear it wantsaction taken, says HarrietWare-Austinson, parliamen-tary officer for the London-based human rights groupAmnesty International. 'In

several countries where seriouscrimes were committed, no-onewas brought to justice', she point-ed out. 'The world just stood backand said, "Sorry, we can't do any-thing." '

Up to now, the UN Securi-ty Council has established specialtribunals to deal with atrocitiescommitted in places such as Rwan-da and the former Yugoslavia. Butthe aim now is to establish a per-manent judicial body to investi-gate and prosecute such crimesworldwide. The product of morethan three years of negotiation,the ICC is expected to be modelledon the Nuremburg Tribunals whichtried German war criminals afterthe Second World War. Life impris-onment will be its stiffest penalty.Enforcement may not always beeasy, and this is one of the issuesstill being discussed.

Designed, in the words ofa British Cabinet Minister, 'to catchout the Saddam Husseins or PolPots of the future', the court willbe established after a final diplo-matic conference in Rome in June,when more than 100 countries areexpected to ratify the treaty. Fund-ing and location have yet to be de-cided.

'This is a historic opportu-nity to qualitatively strengthenhuman rights and internationallaw,' said Richard Dicker, assistantcounsel for the New York-basedHuman Rights Watch, and directorof its international court pro-gramme. 'It would hold account-able under the highest standardsof international law those accusedof genocide, crimes against hu-manity and war crimes,' he said. 'Itwould bring justice to victims andlimit the sense of impunity all too

prevailed, said Dicker, 'it would bea devastating blow to the courtand its impartiality. It would justbecome a permanent ad hoc tri-bunal that can be turned on andoff like a faucet to suit their eco-nomic and political needs.'

Richard Dicker is not theonly one worried about the ICC'spossible emasculation by SecurityCouncil members. 'If cases are re-ferred there, some countries mightcast their veto to protect them-selves and their friends,' said Mau-rice Mendelson, a professor of in-ternational law at UniversityCollege, London. 'It would be un-likely, for example, that Russiawould turn in Slobodan Milosevic'(the Yugoslav President).

The UK recently wonpraise from human rights organi-sations when it broke ranks withfellow Security Council members(particularly France and the US)and sided with NGOs calling for anindependent court. A Singapore-brokered compromise being dis-cussed would allow for a SecurityCouncil veto on investigations, butonly if all five permanent membersagreed. In return, recognised bod-ies, such as international humanrights organisations, would also beable to petition the court tolaunch investigations.

On completion of thetalks, the court will have immedi-ate jurisdiction over states thathave signed the treaty. But investi-gations could proceed in othercountries if requested by the Secu-rity Council, under its UN Charterobligation to maintain interna-tional peace and security, said aBritish Foreign Office official. Notsurprisingly, according to Dicker,some of the most ardent support-ers of the ICC have been countries– in Latin America and Africa inparticular – which have beenthrough transitions from authori-tarian rule and have an intimateunderstanding of how impunityundermines the rule of law.

'The court has to be ableto hold the most powerful agentsof the most powerful nations re-sponsible for their actions', saidRichard Dicker.■ A.M.

New world court aims tobring tyrants to bookby Alan Martin*

Brutal rulers thinking of committing grave human rights abuses maysoon have to weigh up the risk of being charged by a proposed In-ternational Criminal Court (ICC). This is the message being sent bygovernments and human rights organisations negotiating the finalpoints of a UN-sponsored treaty to set up the ICC.

'The court has to beable to hold the mostpowerful agents of

the most powerful na-tions responsible for

their actions'

often associated with such crimesover the past several decades.'

But despite widespreadsupport for the ICC, fundamentalissues have yet to be resolved. 'Thestakes are very high and many out-comes are still possible,' said Dick-er. 'We're still not sure what kindof court will emerge from the ne-gotiations. Will it be a real court,empowered to carry out the taskthe international communityneeds it to do, or will it be asham?'

The most contentiousissue is whether the court shouldhave the independence to initiateinvestigations and prosecutions ofsuspected war criminals, orwhether it should be subject to theauthority of the five permanentmembers of the UN Security Coun-cil (China, France, Russia, the UKand the USA). If the latter option

* Journalist working with Gemini News Ser-vice on a fellowship funded by Canada's Inter-national Development Research Centre. Articlefrom Gemini News Service, 9 White Lion Street,London, N1 9PD, UK.

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According to UnitedNations estimates, there areabout 300 million indigenouspeople living on the planet,unevenly distributed in 70 ormore countries. They includepygmies, bushmen and Masaiin Africa, Indians in Latin andCentral America, Inuits in

Greenland and many other indige-nous races in Asia, the Pacific andelsewhere. The great majority of in-digenous groups are to be found indeveloping countries and almost allare engaged in a struggle – toemerge from social, economic andpolitical marginalisation in the stateswhere they live, and to obtain agreater say in the administration oftheir own development, resources,environment and way of life. Manyof their basic rights are consistentlyviolated, and while trying to avoidan approach which would result inthem being labelled 'victims', theirproud aspiration is to gain the rightof self-determination.

A revival of interestworldwide

Indigenous peoples are unit-ed and organised in a way that givesthem a stronger voice at every level.Internationally, their problems havereceived particular attention overthe last 10 years. Within the UN, ef-forts have increased to establish aregulatory framework covering,among other things, their rights tointellectual and cultural property,territory and the protection of theirliving environments. In 1989, the In-ternational Labour Organisationadopted Convention No. 169 con-cerning Indigenous and Tribal Peo-ples. This text recognises the right ofthe people concerned to be entirelyfree to decide their own prioritiesfor the development process. The in-tention is that they should partici-pate in decisions which affect their

lives, beliefs, institutions and spiritu-al well-being and the lands they oc-cupy or otherwise use. They are infuture to be involved in formulating,implementing and evaluating aidprogrammes which affect them di-rectly. The major UN summits, suchas the human rights conference inVienna and the environment meet-ing in Rio, clearly referred to therights of the indigenous peoples.And the UN is keen to intensify in-ternational cooperation – to enablesolutions to the problems of indige-nous groups to be found, in close co-operation with the people most di-rectly affected. 1993 was proclaimedthe ‘International Year of Indige-nous Peoples’ and the period 1994-2004 is the ‘International Decade ofIndigenous Peoples’.

The EU, for its part, haslong-standing relations with manycountries whose territories are hometo indigenous groups. Never previ-ously, however, has a clearly definedpolicy of development cooperationbeen instituted by the Commissionfor the benefit of these groups. It istrue that some EU development pro-grammes and projects benefit in-digenous people directly or indirect-ly. For example, use has been madeof special budget headings for thetropical forests, human rights andcooperation with Latin Americathrough the NGOs. But all these ac-tivities have taken place outside apolitical framework that is specific tothese peoples. The European Parlia-ment has, on numerous occasions,expressed concern about the criticalsituation of indigenous societies.However, it was primarily at the in-stigation of the Danish and Spanishgovernments that the question cameto be addressed by the EU. The sub-ject appeared for the first time onthe agenda of the DevelopmentCouncil, meeting in Luxembourg inJune 1997. At the request of Euro-

pean ministers, the Commission willpresent a strategy document on aidfor indigenous peoples in the frame-work of development cooperationpolicy of the Union and its MemberStates. The Commission is anxious toobtain as much input as possible, inthe form of ideas and suggestionsfrom those most directly concerned,and this is why, prior to finalising itsdocument, it sought the views of ex-perts from indigenous groups them-selves. Indeed, it would have beenagainst the concept of participativedevelopment to exclude them fromthe project. A preparatory workshoporganised by the Saami Council andthe Inuit Circumpolar Conference,two organisations of indigenouspeoples, gave the experts an oppor-tunity to consult with each other be-fore meeting their European coun-terparts. A draft document,prepared by the Commission’s ser-vices, was also sent to several otherorganisations, and the main com-ments received by way of feedbackwill be incorporated for discussionby the Council.

It is by no means easy to ob-tain an overview of the problems ofindigenous peoples. The Commissiontherefore decided to focus, as a pri-ority, on the indigenous populationsof the developing countries. Thesegroups are particularly vulnerable todiscrimination, which is likely to bemore serious when set against abackground of poverty. Before com-ing up with proposals to meet theirneeds, however, it is necessary to de-termine more exactly who the 'in-digenous' people are.

Problem of identificationA clear and precise defini-

tion of the expression 'indigenouspeople' is not easy to obtain. Indeed,a single, rigid definition could hardlydo justice to their diversity, historyand culture. The World Bank, UNDP

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peoplesAbout 30 of them had come from all over the world to spend two days in Brussels, debating issues abouttheir situation. Some wore traditional dress, as if to strengthen their assertion of a frequently misunderstoodidentity. They talked about their communities' expectations and how they hoped their problems would behandled at international level. The visitors in question were representatives of a wide variety of indigenouspeoples invited by the European Commission to take part in a seminar organised in March. Described as aconsultation, this event also brought in observers from other international institutions. The lessons learnedat the meeting, which focused on the subject of ‘indigenous peoples and development cooperation’, willhelp the Commission to finalise a document it is currently preparing on the subject. This will shortly be sub-mitted to the Council of Development Ministers, with a view to adopting a policy resolution.

and ILO (in Convention no. 169)have all endeavoured to provide adefinition, without really succeedingin obtaining a clear answer. In someregions of Africa and Asia, whereidentifying indigenous populationscan give rise to political problems,the concept appears particularlyblurred. Indigenous groups them-selves are hostile to any definitionthat might be imposed from outside,and very reasonably claim the rightto self-identification. Even so, it isimportant to have available a provi-sional reference which enables inter-national organisations to identifybeneficiary groups and thus improvethe targeting of their activities. Atpresent, the definition that seems toenjoy the broadest support is theone outlined by José Martinez Cobo,United Nations Special Reporter. Hehas stated that: 'Indigenous commu-nities, peoples and nations are thosewhich, having a historical continuitywith pre-invasion and pre-colonialsocieties that have developed ontheir territories, consider themselvesdistinct from other sectors of the so-cieties (now prevailing in those terri-tories, or parts of them) ... and aredetermined to preserve, develop andtransmit to future generations theirancestral territories and their ethnicidentity, as the basis of their contin-ued existence as peoples, in accor-dance with their own cultural mod-els, social institutions and legalsystems.’

Most 'peoples' who are seenas 'indigenous' fall within the scopeof this definition – which is not tosay that they necessarily meet all thecriteria set out. And despite the fair-ly broad range of criteria selected,the use of this text may prove diffi-cult in practice. The Commission’sdraft document therefore suggests amaximum of flexibility and adapt-ability for specific cases. The indige-nous experts have called on the EUto exercise great caution, since in-digenous peoples are not a homoge-neous group and some believe itwould be a mistake to attempt toimpose a universal definition at allcosts.

Guarantors ofbiodiversity

In most cases, indigenouspopulations live in forest regions orzones that are rich in natural re-sources. An Indian expert queriedwhether, in the final analysis, theavailability of these resources was

such a good thing. For, as he put it,it is precisely the existence of the re-sources that has given rise to envyand created problems. Driven by en-tirely economic motives, some multi-nationals, with cooperation fromgovernments, are seeking to exploitthe zones in a way that is little shortof anarchic. The indigenous peopleshave, for a long time, lived in com-plete harmony with their naturalsurroundings. Their way of life andsocial, cultural and spiritual practiceshave ensured the preservation ofbiodiversity and the conservation ofnatural resources. Global recognitionof this important role is increasingbut it still needs to be underpinnedby consistent policies. Indigenouspeoples are fully aware of theirecosystems, and manage their landsin such a way as to preserve theequilibrium of nature. They are gen-uine scientists in their deep under-standing of the medicinal and nutri-tional values of many of theirresources. But their immense knowl-edge has been regularly plunderedand illegally exploited down theyears – which is why they are nowdemanding rights to intellectualproperty and respect for their envi-ronment. Although internationalconventions have been signed inthese areas, there is still a long wayto go before concrete results are ob-tained. All these points were includ-ed in comments made to the Com-mission by the indigenous peoples'representatives.

What form ofcooperation?

As regards cooperation withthe EU, the indigenous experts putforward a number of proposals,some new and others based on pastexperience. They were almost unani-mous in wishing to set the prioritiesfor their own development – al-though some preferred the term 'liv-ing plan’ in this context. Coopera-tion should help reinforce theircapacity for self-development.Words beginning with the prefix‘self-’, such as self-determination,self-identification and self-develop-ment, should, they believe, be moreprominent in legislative texts. Somerepresentatives demanded the elimi-nation of the 'middlemen' (NGOsand national governments), arguingthat the EU should favour a more di-rect form of cooperation with the in-digenous peoples. Others stressedwhat they saw as a lack of consisten-cy between words and deeds on the

part of some European countries. Asone expert from Guatemala forceful-ly put it, how is it possible to declareone's respect for the rights of in-digenous peoples while, at the sametime, signing agreements whichallow the 'barbarous' exploitation oftheir forest heritage? Consequently,the indigenous peoples want to beincluded in all negotiations, agree-ments or conventions which affecttheir lives. In this context, they claimthe ‘right to say no’ in the event ofdisagreement, and call on the EU totake this message on board. The pro-grammes devised by the EU shouldtake due account of the cultural di-mension and respect traditional be-liefs and practices. Reasserting theircultural identity, representatives ofthe indigenous peoples believe thateconomic development cannot bedissociated from culture and the en-vironment. Other recommendationsfocused on access to education, therole of women, access to the land,food security and human rights is-sues.

Another essential concern ofindigenous peoples is the institution-al strengthening of their representa-tive structures, especially in ACPcountries, to enable them to take ef-fective action at local, national, re-gional and international level. Theyare looking to the EU to back theirefforts in this area. There was a callfor special budget headings to becreated; together with a permanentconsultation mechanism (forum orsecretariat) for the indigenous peo-ples within the EU. It is important tonote that several of the proposalscoincided with stated objectives andrecommendations of the Commis-sion, whose attitude to the involve-ment of people in their own devel-opment process has evolvedsignificantly. Clearly, not all sugges-tions can be taken into considera-tion – indeed, some were mutuallyconflicting. But the issues aired atthe meeting will provide importantguidelines to assist the Commissionin presenting a comprehensive docu-ment on the subject of indigenouspeoples to the Council.■ K.K.


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The promotion ofsocial justice, employment,democracy/respect forhuman rights, and interna-tional labour standards arethe founding objectives ofthe International LabourOrganisation. It was set upin 1919 by countries in-volved in the First WorldWar with a view to safe-guarding social peace andencouraging economic and

social development. In 1944, theILO adopted documents underlin-ing this mission and its aim of pre-venting future conflict, but it hasupdated its approach in recentyears in order better to supportpopulations involved in conflict.

The Organisation and itssecretariat, the InternationalLabour Office, are active in manyother areas besides the formula-tion of social and employmentpolicies and the inclusion of thesein peace agreements. It also sup-ports vocational training and skillsimprovement, helps provide accessto income-generating activitiesbased on genuine labour-marketopportunities, and promotes em-ployment for women.

Certain conditions are ob-viously needed if reintegrationprogrammes are to achieve long-term success. Joint analysis of thecauses of conflict by the parties in-volved, and their agreement on anational reconciliation pro-gramme, to include a campaign toreintegrate all the people con-cerned, is therefore desirable. Sim-ilarly, governments must make aclear-cut commitment to a reinte-gration policy and to an economicand social development strategyspecifically designed to promotejobs. Another essential element isan agreement with the interna-tional community (particularlywith donors), regarding reintegra-tion policy and programmes, andthe mechanisms for coordinatingactions involving a large numberof partners. Many other aspectscould also be mentioned, such asan adequate institutional frame-work for implementing the pro-grammes and the full participationof former combatants, affectedand displaced populations, andhost communities in drawing upand running programmes at locallevel.

A new cycle of negotiatedsettlements

In Africa, at least, the mostcommon outcome of armed con-flict in the early decades after in-dependence seems to have been

'winner takes all'. The experienceof Zimbabwe (formerly Rhodesia)with the Lancaster House agree-ments set in train a different ap-proach involving a new model fornegotiated settlements. This ap-proach is now widely followed inthe post-Cold War context, withthe establishment of democraticstructures requiring concerted po-litical, diplomatic and sometimesmilitary involvement by the inter-national community. It also entailscomplex negotiations between theparties to the conflict, with a viewto the signing and implementationof peace protocols.

Such agreements are usual-ly built around three main compo-nents: the political component(transitional power, new constitu-tion, elections, etc.), the militarycomponent (ceasefire, withdrawalof foreign armies, new nationalarmy, monitoring/disarmament/demobilisation of the various fac-tions, etc.) and the socio-economiccomponent (national-reconstruc-tion and reintegration pro-grammes, etc.)

The International LabourOffice becomes involved in thecontext of the international com-munity’s efforts at establishingpeace. It concentrates on provid-ing technical assistance for recon-struction and the socio-economicreintegration of groups affectedby the war – in particular, demo-bilised military personnel. With itsexperience gained in regions suchas Central America and Cambodia,the Office has been called on to in-tervene in Africa in such countriesas Angola, Mozambique, Liberia,Eritrea and Northern Mali. Its mis-sion has been to devise policiesand strategies to promote employ-ment and reintegration, and toformulate and implement opera-tional programmes. Other projectsare currently being prepared forSierra Leone and the DemocraticRepublic of Congo.

To capitalise on this wealthof experience, an action pro-gramme (skills and entrepreneur-ship training for countries emerg-ing from armed conflict) has beenset up. This assists in organisingdiscussions between decision-mak-ers, protaganists and partners indevelopment, and in formulating a

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rebuild the social fabricThis abridged article by Carlos García and Paolo Barcia is publishedas a follow-up to the Dossier on conflict prevention in our last issue.The authors work for the International Labour Office, the ILO's sec-retariat.

Societies making the tran-sition from a situation of conflictto a process of economic and socialdevelopment face many chal-lenges. For instance, they have togive official form to peace treaties,reintegrate former combatants,displaced persons, refugees andother social groups affected by theconflict, and reconstruct a labourmarket and strategic economicframework.

The ILO has a multitude oftasks in this area. For example,given that conflict weakens institu-tions, and this in turn can exacer-bate the conflict itself, the ILOgives priority to strengtheningsuch institutions. This is particular-ly so for ministries of social affairsand labour, workers' and employ-ers' organisations, other labour-market institutions and bodies re-sponsible for rehabilitation andreintegration. The ILO also sees itas important to give a voice andsupport to the social partners, en-abling them to take an active partin peace negotiations, in the initialstages of reconstruction, and inthe planning of further develop-ment.

wide range of intervention toolsappropriate to the specific context.

Common factors

All conflicts (and thus, allpeace processes) occur because ofthe existence of different geopolit-ical, economic and ethno-culturalcontexts. However, experienceshows that certain common factorscan be pinpointed. The generalprinciples which should charac-terise any reintegration strategyare: national reconciliation (totalreintegration of former combat-ants is possible only in such a con-text): active participation by thevarious partners (public and pri-vate, political and social forces,NGOs and churches); absolute andtotal non-discrimination (pro-grammes must be open to every-one, irrespective of military fac-tion, ethnic origin, religion or sex);and, respect for international con-ventions, particularly the Conven-tion on the Rights of the Child, andinternational labour standards.

The fact that involvementneeds to be ongoing suggests thatthere needs to be a close link be-tween medium and long-termpolicies and short-term emergencyprogrammes. Moreover, any rein-tegration programme must con-centrate on creating opportunitiesfor employment and self-employ-ment, and the development of in-come-generating activities.

Such integration pro-grammes are generally builtaround a 'central core' which in-volves short-term training in thoseareas regarded as the most stableand buoyant, and the promotionof micro-enterprises and self-em-ployment. Upstream, this 'core' islinked to studies of target-groupprofiles, analyses of promisinggaps in the market, the supply oftraining and services, and informa-tion/orientation services. Down-stream, there are mechanisms for

providing technical and financialsupport to those wishing to set uptheir own businesses (manage-ment training, toolkits, loans, etc.)as well as monitoring structures.

The approach entails set-ting-up a network of varied train-ing providers (public and private,formal and informal) with whomthe coordinating structure will es-tablish intensive training program-me contracts (500 hours on aver-age). This is generally accom-panied by support for the techni-cal capabilities of the partners –for example, introductions to ob-jective-based teaching, training oftrainers.

Training of this type isaimed either at meeting the re-quirements of such jobs that al-ready exist on the modern employ-ment market (sectors andenterprises which, in time ofpeace, would already be creatingnew jobs), or at self-employmentand the establishment of micro-businesses (if appropriate, supple-mented by 'Start your own busi-ness' assistance).

The impactThe ILO's new-generation

projects are at different stages ofdevelopment. Those in Angola andLiberia, interrupted when civil warrecurred, are just getting off theground again. The programme inNorthern Mali (PAREM) is also rela-tively recent. For the time being,therefore, an objective impactevaluation is only possible inMozambique. Here in early 1997,more than 70% of the 9326 formermilitary personnel benefiting fromthe project already had jobs (paidwork, self-employment and micro-businesses).■ C.G.& P.B.


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Social reconstruction is a process which includesvocational training and, vitally, training for

women.

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During the first year,this sapling had to weatherthe storm of critical scrutinyfrom both Commission andACP services – but it held itsown. In January 1991, itemerged, a good dealstronger, in a circular lettersigned by the Director Gener-al and addressed to all DG

VIII services and delegations, for op-erational application. In due course,DG VIII set up a help-desk to supportthe introduction of PCM into devel-opment cooperation practice. It alsolaunched an important training pro-gramme in which more than 6000Commission, EU Member State andACP officials as well as private con-sultancy personnel have so far par-ticipated.

What is PCM?PCM is an instrument for im-

proving development projects andcan also be used to improve devel-opment programmes and policies. Itis designed to enhance the benefitsfor the target groups served by pro-jects, programmes and policies. It isthe fruit of experience.

In the mid 1980s, DG VIII de-cided to take an overall look at theeffectiveness of its actions. The eval-uation unit reviewed all the majorevaluation reports available at thattime (a large number) as well as re-ports of the Court of Auditors on DGVIII-managed projects and pro-grammes. The broad conclusion wassobering. Judged, above all, on thebasis of their viability, about a thirdof all projects/programmes had beenbroadly successful, a third had mixedand often disappointing results, andthe remaining third had largelyfailed. The evaluation unit cross-checked these mediocre conclusionswith those of other aid agencies.Their performance proved to be re-markably similar.

Shaken but not discouraged,DG VIII decided to try to pinpointthe key reasons for this state of af-fairs. Again, the evaluation unit re-viewed its past work, this time withannual overviews of all completedevaluations. This effort coincidedwith an extensive two-year review ofthe sustainability issue in develop-ment cooperation, carried out by theevaluation working group of theOECD's Development AssistanceCommittee (DAC). The conclusions ofthis collective soul-searching were asfollows:

– There was a general tendency toconfuse the project with the peoplethat were meant to profit from itsimplementation and functioning;

– In many cases, vitally important as-pects were overlooked in projectpreparation, implementation andfollow-up; and

– All too often, decisions weretaken without being subject to therequired decision-making disciplineappropriate to each phase in thecycle.

It was obvious that these three keyweaknesses had to be tackled. TheDG VIII evaluation unit undertook totransform them into positive guidingprinciples, and came up with the fol-lowing:

– Always express the project pur-pose in terms of sustainable benefitsfor the target group;

- Devise a ‘basic format’ setting outconcisely the vital aspects which, ifnot considered, will almost certainlylead to the project's failure;

– Devise a mechanism to guidesound decision-making throughoutthe project cycle.

These three principles, deal-ing directly with the root causes ofproject failure, are the cornerstonesof PCM.

The Project PurposeThe first and most basic prin-

ciple of PCM concerns the definitionof the Project Purpose, also knownas the Specific Objective. It is, with-out exception, to be conceived asthe creation of sustainable benefitsfor the target group. In everydaylanguage, this means that after theproject is finished, those targeted byit should have a better quality of lifethan before, and that this improve-ment should continue for a reason-able period (using a ‘human’ scale,say one generation – so if 50 yearsseems a lot, then 10 years is surely

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IS Project cycle management revisitedby Dr. Hellmut W. Eggers

Seven years ago, I sat down to prepare the first draft of the 'Basic Format' for the Project Cycle ManagementMethod (PCM). This was part of my duties as head of the evaluation division in Directorate-General VIII (De-velopment) of the European Commission - but I hasten to add that it was not my own invention. I was simplypulling together the threads of best professional practice the division had gleaned from across the globe. Wewere helped in our task by the OECD working group of heads of evaluation, by other development agenciesalready practising the ‘logical framework approach’, by Commission colleagues and by our ACP partners.That was how the sapling of PCM first reared its head in a sceptical environment.

In 1996, PCM applicationwas evaluated by an independentconsultancy. It found that themethod had been very well received,especially in the ACPs, but that con-tinued efforts were needed to ex-ploit its full potential. Following onfrom this, a new training pro-gramme was due to be launched atthe beginning of 1998, directed atstaff from the Commission externalrelations departments and services inthe EU's partner countries (not justACPs but also in Latin America, Asiaand the Mediterranean). In sevenyears, the sapling has grown into avigorous young tree and there is nodoubt that PCM is here to stay.

As for me, I retired from theCommission in 1993. I continue,however, to follow and nurture thetree's development, doing PCM con-sultancy work and organising semi-nars in the EU. I have devoted thebest of my professional energies tothis field and should like to presentCourier readers with my views onwhat PCM is and what it can do.

insufficient). It is true that definingthe target group can be difficult, es-pecially if conflicting interests are in-volved, with some groups perhapseven affected detrimentally by aproject. The ‘sustainability’ of thebenefits must take such conflicts, ifthey exist, into account.

The principle also impliesthat one recurring and fundamentalmistake must be avoided at all costs.This is the confusion so often foundbetween the project and the targetgroup. The project is a means to anend, not the end itself. Surely thisgoes without saying, one might say,but the evidence suggests otherwise.All too often in the real world youfind roads without traffic; hospitalswithout patients, staff, or medicines;and factories without water, electric-ity, workers or a market. Thus, forexample, the purpose of a givenwater supply project must not be‘the installation of a supply system’,but rather ‘the consumption of asufficient quantity of potable waterby the population of province X overa period of at least 30 years’.

The first PCM principle, itsvery ‘centre of gravity’, is the onlyrigid element of the method. If youcannot express the project purposein terms of sustainable benefits forthe target group, forget it, becauseit will not work. DG VIII's Manual onPCM repeatedy underlines this. It isdisappointing, therefore, to findthat project purposes drawn up byits services for inclusion in financingproposals in recent years do not al-ways respect the principle.

The Basic FormatThe second PCM principle

concerns the criteria that must beobserved if the aim of bringing sus-tainable benefits to the target groupis to be achieved. DG VIII has made amajor effort to identify these crite-ria. The essential questions were:When preparing and implementinga project, what aspects (the ‘criteria’)are absolutely essential to ensure aflow of sustainable benefits to thetarget group? From practical experi-ence, what are the questions thatmust not be left unanswered if theproject is to succeed? After thor-ough investigations over severalyears, and detailed discussions withprofessionals around the world, DGVIII finally established the list of cri-

teria – set out in a ‘Basic Format’ ofless than 100 words.

In structuring this format,the input of the logical framework(‘logframe’ or LF) analysis has beendecisive. It is not surprising, there-fore, that these two technical instru-ments, the ‘Basic Format’ and the‘Logical Framework’ should partlyoverlap. In fact, the overlap is useful.It is also inevitable, since the BasicFormat is employed in formulatingterms of reference for studies andreports along the project cycle, whilethe Logical Framework serves forchecking the project's internal logicand summarising its contents. Itshould also be mentioned that LFanalysis, through its techniques ofestablishing problems and objectives‘trees’, has largely contributed to theproblems and objectives analysisunder the Basic Format.

The criteria making up the‘Basic Format’ are grouped underthe following main headings:

– Background: presenting the policyguiding the project, the beneficiariesconcerned and the problems to besolved;

– Intervention: spelling out the ob-jectives of the project and notablythe kind of sustainable benefits tobe created, and the activities de-signed to achieve the objectives;

– Assumptions: alluding to the risksto be faced and identifying the cir-cumstances and events consideredessential for the project's success butthat it cannot influence;

– Implementation: containing theconcrete project description – meansto be employed, their cost, proce-dures to be applied, the implemen-tation timetable;

– Sustainability factors: policy, tech-nological, environmental, socio-cul-tural, management and economicaspects that are designed to ensureproject survival after completion;

– Monitoring/evaluation: allowingthe project to be kept on track andbe reoriented, if necessary.

The ‘Basic Format’ is the firstof the three technical tools of PCM.It guides the formulation of theTerms of Reference all along theproject cycle. It should be employedwith common sense, never withrigidity. After all, the complexity of

real life can never be captured in lessthan 100 words! Only the Terms ofReference can do justice to theuniqueness of each project at eachstage of the project cycle.

Project phases and thedecision-makingmechanisms

The third PCM principle re-quires the application of the samebasic criteria as expressed in the‘Basic Format’, throughout the en-tire project cycle. PCM distinguishessix phases of this cycle:

– The formulation, within a givenpolicy framework, of a project idea(for example: ‘given the demandstructure and human resource situa-tion in our region, it seems a goodidea to build a school for profession-al education and training’);

– If the idea seems reasonable, thenproceed to the second phase of pre-feasibility (if not, abandon the pro-ject). Pre-feasibility involves a rapidstudy that does not pretend to becomprehensive, conducted using thesame basic criteria. The only objec-tive here is to answer the basic ques-tion: ‘is it reasonable to undertake afeasibility study for the suggestedproject?’ Accordingly, the pre-feasi-bility study should only go into thedetail necessary to make this judg-ment – and no further. If the conclu-sion at this point is negative, the(considerable) costs of the feasibilitystudy can be avoided, as the projectwill be abandoned at this point.

– If the conclusion of the pre-feasi-bility study is positive, the feasibilitystudy will take place, applying termsof reference based, again, on thesame criteria. This time, the studywill be detailed, containing all theinformation needed to decide if theproject should go ahead, and toallow implementation to begin with-out any further studies. Should thestudy conclude that the project isnot feasible (this will happen onlyrarely as the two preceding phasesshould already have separated thewheat from the chaff), then it mustbe abandoned. It is better to losethe cost of the feasibility study thanto finance a bad project.

– If the conclusion of the feasibilitystudy is positive, then the projectcan be set out in a financing deci-


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sion, using the formal documentsthat exist for this purpose (fourthphase).

– The project can then be imple-mented (fifth phase). The implemen-tation will be monitored periodical-ly, measuring the actual progressagainst that foreseen in the feasibili-ty study. Monitoring is done by theproject team itself, which does notquestion the project's objectives.Corrective action should be taken bythe team, if required, in the light ofmonitoring results.

– The last phase is evaluation. Thiswill involve the project team andoutside expertise that has not beeninvolved in the earlier phases. Again,applying the same basic criteria,evaluation will question the entireproject design including the problemanalysis and the objectives. Evalua-tion, though regarded as the lastphase in the cycle, does not neces-sarily only occur on the completionof the project (‘end-of-project evalu-ation’) or some years later (ex-post-evaluation). It can also be carriedout during implementation (‘con-comitant’ or ‘on-going evaluation’).This exercise is designed to allow forproject reorientation if required.Evaluations undertaken after imple-mentation will permit improvementsto be made in the design of subse-quent projects of a similar nature.

The ‘Format of Phases andDecisions’ is PCM's second technicaltool. It sums up the phases and deci-sion-making mechanisms as de-scribed above. Again, common senseand flexibility are the watchwords. Itis clear, for instance, that the third ina series of ten similar water supplyprojects will omit the first phase al-together and possibly the second,while the feasibility study will bebased heavily on prior studies.

This flexibility, however,does not mean one should ignorethe need to structure all the terms ofreference throughout the projectcycle, in accordance with the BasicFormat. It is disappointing to learn,therefore, that DG VIII has produceda new structure for the ‘end of ap-praisal reports’ to be produced bydelegations at the end of the thirdphase (feasibility). This could lead toextra work of doubtful utility andmay well introduce confusion intothe application of PCM. I personally

believe that it could be a seriousmethodological error.

The Logical FrameworkThe Logical Framework is

the third technical tool of PCM. It isnot identical with PCM, being onlypart of the Method. It is unfortunatethat six years after the official intro-duction of PCM, there should still bepeople in the relevant fields thathave not understood this simplepoint.

The LF is a matrix presentingfour columns and four rows:

The columns contain:

– the Intervention Logic (linking in-puts via activities to outputs, theproject purpose and the wider devel-opment goals)

– the Objectively Verifiable Indica-tors (which express the interventionlogic in terms of figures);

– Sources of Verification (specifying,where these indicators can befound); and,

– the Assumptions (containing theevents and circumstances that condi-tion project success but that the pro-ject cannot influence).

The rows indicate, from bot-tom to top;

– the project activities;

– the project results;

– the project purpose; and,

– wider development goals to whichthe project is meant to contribute.

The logical frameworkanalysis, devised by a US consultan-cy, first appeared in the late 1960s. Itwas rightly hailed as a major im-provement in project preparation,implementation and evaluation andhas profoundly influenced the for-mulation of PCM. However, not sur-prisingly after three decades, certainweaknesses have been discovered bythose applying the instrument overthe years. One should not turn ablind eye to these drawbacks of thelogframe, which may be summarisedas follows:

– It tends, in many cases, to turninto a purely bureaucratic exercise,undertaken reluctantly because‘those who hold the purse-strings re-quire it’. The logframe is prepared as

an afterthought when the substan-tive work has already been done. Itdoes not influence the project de-sign and turns into a rigid, liturgicalroutine involving filling in a matrix.

– There are times, even with simpleprojects, when it it is not up to thetask. No matter how conscientiouslyone tries to complete the matrix, im-portant aspects fall by the wayside.The logframe becomes a ‘lackframe’.

– It tends to solidify a design once ithas been laid down, thus limitingflexibility in implementation. True,this is the wrong way to use thelogframe – so it is the workmanrather than the tool which is ulti-mately to blame – but the tendencyhas been observed frequently and istherefore obviously a problem. Thelogframe becomes a ‘lockframe’.

PCM recognises these weak-nesses. It therefore tries to limit theuse of logframe analysis in up-frontproject design while observing thefundamental logic of that analysiswhich has always been, and remains,a powerful tool. It seems preferable,however, to conceive the project de-sign first by devising terms of refer-ence (TR) for studies to be undertak-en according to each of the sixproject phases. These TR are to bestructured along the lines of the‘Basic Format’. The internal logic ofeach study can then be checked bycompleting the matrix. As a ‘check-ing mechanism’ and a means of sum-marising the project design all alongthe project cycle, the logframe ap-proach remains unquestioned inPCM. A well-designed project will al-ways be easy to express and sum-marise in terms of the logframe ap-proach. If it is not, then there issomething wrong with the designand one must go back to the draw-ing board.

These, then, are PCM's threefundamental principles, its threetechnical tools and the rules for theiruse. The remaining question is sim-ple: What for?

What can PCM do?

PCM must respect its singlerigid principle: to contribute to thesustainable benefits that projects aredesigned to create for their targetgroups. If it does not do that, it hasno right to exist. It will contribute to

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such benefits if it is correctly appliedto project preparation, implementa-tion and evaluation. The all-impor-tant question will thus be: Whatmust be done to ensure such appli-cation? A first, obvious answer is theneed for training of Commission of-ficials (including those in delega-tions), EU Member State staff, con-sultancy personnel and otherstakeholders. It was mentioned earli-er that more than 6000 people hadalready undergone such training, inseminars lasting from several hoursto several days.

I have not had the opportu-nity, so far, to support that trainingeffort. I have, however, since retiringfrom the Commission, continued tohelp spread PCM in a series of EUcountries, holding seminars for up to45 participants in various languagesand addressing audiences from dif-ferent backgrounds. I have devel-oped a series of teaching materialsand rules for working group activi-ties, that are at the disposal, free ofcharge, to interested professionals.

Normally, the seminars lasttwo and a half days. I present thethree main principles and the threetechnical tools of PCM. Next, theparticipants form three workinggroups. The first practical exercise in-volves each group drawing up termsof reference, using the ‘Basic For-mat’ (the second PCM principle), forthe feasibility study of a real-lifeproject taken from the portfolio ofthe organisation where the seminaris being held. This project is present-ed by one of the participants. Eachworking group selects a speakerwho, after discussion within thegroup, presents the results of itswork. The speaker must also justifythe group's ‘decision’ to proceedwith the third phase of the project,under the third PCM principle. Thesecond exercise consists of filling in alogical framework, on the basis ofthe feasibility study, using the sameproject. Each group decides, in thelight of this exercise, whether theproject should pass to the fourthphase, in line with the third PCMprinciple. The third exercise involvesreformulating, in accordance withthe first PCM principle, a series ofproject purposes (the projects againbeing taken from the organisation'sown portfolio). Speakers are oncemore selected by the groups, it

being understood that a differentparticipant must be the spokesper-son each time. In this way, each ofthe PCM principles and technicaltools is put to the test, using practi-cal examples of projects handled bythe organisation whose staff are tak-ing part in the seminar. The clearpractical significance of PCM is thushighlighted, and quickly become evi-dent to the participants in their ownworking environment.

A ‘project’ to introducePCM

As mentioned earlier, DGs Iand VIII are launching, in early 1998,a major ‘PCM Training Action’ forCommission employees and partnercountries' staff. Will this lead to theintroduction of PCM with its key ob-jective of enhancing the benefits forthe target groups? If we want a real-istic, and therefore useful, answer tothis question, PCM needs to be ap-plied to the process of its own intro-duction. In other words, the trainingwill only be part – true the most im-portant one – of a project (entitled,perhaps, ‘The Introduction of PCMinto Development CooperationWork of DGs I and VIII’). Taking thisapproach, the answer will be: Notyet!

Indeed, the ‘Training Ac-tion’, as the name implies, is an ac-tivity in PCM parlance, that will leadto a result. In everyday language,this means that it will bring aboutan improvement in participants’knowledge and skills. This is obvious-ly necessary, but is not enough in it-self given that the ultimate purposeof the ‘project' must, under the firstPCM principle, be the creation ofsustainable benefits for the targetgroups of development projects.

Recognising that the firstphase of this ‘project’, the formula-tion of the ‘Project Idea’, is complet-ed, we are now entering the secondphase – pre-feasibility. Like all stud-ies under PCM, this should be struc-tured using the ‘Basic Format’. Itwould certainly appear necessary tocarry out a pre-feasibility study to beable to reach a well-informed deci-sion on whether to move to a feasi-bility study for introducing PCM inthe various partner countries. Clear-ly, the administrations of thesecountries will be the first to be inter-

ested in, and to take such decisionson, the launching of both pre-feasi-bility and feasibility studies. We havenot yet reached that stage.

I believe we can say at thisstage that, in applying PCM to itsown introduction, there will be pro-cedural as well as structural adapta-tions. Some have already been intro-duced, for instance, theestablishment of certain sectoralguidelines and the organisation of a‘Quality Support Group’ in DG VIII.So the situation is already evolvingand the ‘motivational climate’ ap-pears favourable. The position, how-ever, should be reviewed once the‘Training Action' – a sine qua nonfor the effective introduction ofPCM – is underway. It is vital thatthis action succeeds.

Conditions for successI may be forgiven for consid-

ering PCM ‘my baby’. I am happy tosee the active interest of countlesspeople in the development coopera-tion community in its continuedgrowth and well-being, and am surethat it will soon come of age. But,like many an ageing parent, I am un-able to follow its development with-out considerable emotional involve-ment. So, for what it is worth, hereis a double warning – two ‘don’ts’that I believe are fundamental:

– Don't be tempted to fall back intothe routine of the logframe tradi-tion. Logical Framework Analysisand PCM are not the same thing.Teaching only the logframe would,in my view, be a recipe for failure.

– Don't view the ‘PCM Training Ac-tion’ as simply another ad hoc courseto be completed and then ‘filed’ atthe back of one's mind. That wouldkill the mutual learning philosophy,the participatory approach and thepositive debating culture that arethe very essence of PCM. PCM thriveson controversial discussion. It shouldcome under constant critical reviewand should be further improved byall who use it. It is a motivation-building instrument – and can onlywork if it becomes everybody'sbaby.■ H.E.


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The issue is appar-ently cut and dried: freemovement of goods andservices in world trade, andfree movement of capital,have helped sustain globaleconomic growth. In devel-oping countries, thisgrowth, expressed in terms

of higher per capita GDP, has beenfuelled essentially by aid, directforeign investment, investment insecurities, remittances from na-tionals working abroad and, ofcourse, export income.

The huge growth in net fi-nancial flows to the developingcountries over the last 20 years, re-veals the increasingly predominantrole of private investment (seeTable 1). Resource flows originat-ing in the private sector rose to$244bn in 1996 – 86% of total netflows to developing countries,though admittedly, these re-sources were not evenly distrib-uted. Sub-Saharan Africa accountsfor only 5%. East Asia/the Pacific(44.5%) and Latin America/theCaribbean (30.5%) received thelion’s share.

Global investment indecline

In global terms, however,savings and investment fell overthe same 20-year period (see Table2). While Asia could boast recordgrowth figures (from 26.5% to31% for savings and from 26% to32% for investment), all other re-gions saw a significant fall. Thiswas particularly true of Africa,whose savings level dropped from29% over the period 1974-81 to18% in 1990-95. There was a simi-lar reduction in investment (from32% to 21%). The currency crisis in

Asia, which began in late 1997,suggests that we can no longerput our faith in ongoing rapid in-vestment in that part of the world.It may be that the worldwide de-clines and, more particularly, thosein the industrialised countries (es-sentially OECD), have spurredthose responsible for the MAI toseek a framework for stimulatinginvestment.

A closer examinationshows that huge profits were gen-erated by the productive sector inthe G7 countries between 1980and 1995, resulting in a return topre-1970 performance levels. Butthere was no correlation betweenprofits and investment over thesame period. Profit levels in theproductive sector of the G7 group(originating from income on capi-tal) were 31.5% in 1980 rising to34.5% in 1995. Meanwhile, invest-ment, as a percentage of GDP, fellfrom 17.5% to 16%.

In 1994, the industrialisedcountries received twice as muchdirect foreign investment as thedeveloping nations, with leadingmultinationals taking maximumadvantage of the liberalisation ofinvestment regimes during the1990s. Generally speaking, USfirms led the way. Japan’s transna-tional companies came a long waybehind in second place, almostlevel with the UK (followed byGermany, France and a few of thedeveloping countries – notably inAsia and Latin America). Delayshave occurred in reaching consen-sus over the content of the MAIwhich, one should recall, is anOECD, not a US initiative. A keyreason for this is that nowadays,investors not only invest, but alsoaspire to 'leadership', and therehave been internal disputes aboutinfluence within a group of about100 transnational companies (sup-ported by their respective govern-ments).

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IS Is ACP economic sovereignty just'virtual reality'?by Yves Ekoué Amaïzo

The OECD-led proposal for a Multilateral Agreement on Investment (MAI) has run into difficulties because ofdisagreements among some of the key negotiating parties. The author of this article, who is responsible forspecial programmes at the Vienna-based United Nations Industrial Development Organisation (UNIDO), of-fers a sharp critique of the proposals (in their present form) from a developing country perspective.

Table 1: Net flows of financial resources to developing countries

(in billions of dollars)

Direct public aid (grants) 2.0 31.3

Direct foreign investment 2.0 109.5

Portfolio investments 0.0 45.7

Other flows 6.0 98.1

Total flows 10.0 284.6

Table 2: Savings and investments (as percentage of GDP)

World savings 24.9% 22.5%

– industrialised countries 23.1% 19.9%

– developing countries 26.6% 25.7%

World investment 24.7% 23.5%

– industrialised countries 23.2% 20.4%

– developing countries 25.9% 27.4%

1970 1996

1974-1981 1990-1995

As far as the World TradeOrganisation (WTO) is concerned,two aspects are worth noting.First, investment rules and prac-tices are not uniform worldwide.Second, transnational companiesface problems arising from the riskof operating in regions whereprofit levels are low. Also, thesmooth running of business ishampered by state interventionism– which is an obstacle to invest-ment.

To complement the exist-ing legal framework for trade,transnational companies andOECD countries have argued that amultilateral system should be setup to eliminate the undesirable ef-fects of state intervention in in-vestment. The OECD took the ini-tiative and drafted the MAI whichwould be a genuinely unifiedworld investment system, based onexisting codes. By limiting the fieldof action to investors, and invest-ment in the context of more glob-al trade promotion, the objectiveof those who devised the Agree-ment is to monitor the establish-ment of a global charter on invest-ment. Its primary aim will be toprovide protection for investors,and to create a motivating globalframework which favours them. Acharter of this kind should pro-mote optimum allocation of worldsavings circulating in the form ofinvestment. But it does not containany reference to the importance ofcreating jobs or to the distinctionbetween investment which gener-ates employment and that whichdoes not.

Conditions imposed fromoutside

Negotiations on the MAIbegan in 1995. The aim was thatagreement should be reached by1997, but there has been a delay.Paradoxically, it is not the propos-als relating to rights and obliga-tions, which are heavily weightedtowards the operation of marketforces, that are behind the delay.This concept of 'market forces', de-fined with the investor very muchin mind, already appears to givepriority to the most influentialmultinationals. In fact, the OECDseems to have been forced into arethink – which could delay the

MAI by a year – because it failed toincorporate into the text, the spiritof the American Helms-Burton Act.Among other things, this seeks toprevent foreign firms from invest-ing in Cuba. Thus, it is disputesover influence behind the sceneswithin the OECD that are holdingup the accord.

In principle, the MAI’s ob-jective is to liberalise investmentsystems and protect investors, butthere is a risk that the ultimate ob-jective of unification, standardisa-tion and optimum allocation ofworld savings may not beachieved. The approach of theaforementioned Helms-Burton Act,for example, involves an exceptionto the principle of trade and in-vestment liberalisation, based onpolitical considerations. Also, theprovisions of the North AmericanFree Trade Agreement (NAFTA)call into question certain sovereignrights of states where the exerciseof such rights would make it im-possible for a transnational com-pany to recover at least its invest-ment costs in a given market. Thereality is that by giving the inter-ests of transnational companiesprecedence over state sovereignty,the MAI would make it easy fornational savings to be withdrawnfrom a country. And those nationsthat have most influence are keento ensure that this has little chanceof happening to them in reality. Sothere is a basic contradiction as re-gards the objective. This largely ex-plains the lack of transparency sur-rounding the drafting of the text.The MAI will certainly not be ini-tialled by the US representatives, ifthe Helms-Burton Act and the un-spoken stipulations of NAFTA arenot, somehow or other, taken intoaccount in the recast MAI.

In all probability, theAgreement will be influenced bythe world's most powerful coun-tries. The text has reached its cur-rent (October 1997) form throughthe combined efforts of market in-terests and the various OECD gov-ernments, without any real in-volvement by legislators, let alonethe citizens or civil society of theOECD states – which are, for themost part, democracies. Indeed,without the insight and bold ap-proach of the US consumer protec-

tion movement, whose effortshave been reported by parts of theFrench media, the scope for collu-sion between public and private-sector leaders in ACP countries im-plicit in the current text would nothave been identified. Meanwhile,the MAI provisions on the treat-ment and protection of investorsappear not to be running into anyofficial opposition from the au-thorities in the 29 OECD countries.

A 'no-fault' system

The WTO aims to standard-ise the process of world trade lib-eralisation with texts coveringtrade and services, intellectualproperty, investment and counter-feiting. It was this approach whichbroadly inspired the proposal forthe MAI. Although the WTO Direc-tor General, Mr Ruggiero, suggeststhat the Agreement could formthe basis of a 'Constitution' for aunified global economy, no onedoubts that collusion betweencountries and a few multinationalcompanies could herald the emer-gence of a new form of gover-nance in the world, based on thepreeminence of the right to useone's capacity to influence. Thiswould involve new forms of hier-archy within the OECD itself, and itis the difficulty involved in achiev-ing consensus on this point whichis holding back implementation.

The MAI is founded on thepostulate that further worldgrowth requires trade liberalisa-tion, linked in turn to the pioneer-ing role of investors. The view isthat to enable the latter to fulfiltheir role better, the main obsta-cles must be eliminated and theyshould be protected as much aspossible. By accelerating the flowof assets owned or controlled byinvestors, it is assumed that an in-crease in global wealth will be pro-moted. Accordingly, so the argu-ment goes, all that is needed inACP countries is for the state’s in-terventionist role to be limited –even in areas of 'public interest' –by bringing them into the new sys-tem. The state's job would be toprovide the flanking measures,based on a no-fault principle anddesigned to guarantee the ab-solute right of investors.


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To sum up, any loss ofearnings (whether of profit, oreven where the return on invest-ment is unsatisfactory) could becovered by a legal provision. Thiswould be within an internationalframework reserved exclusively forthis purpose, and based on the'right' to exercise influence –which is a long way from the prin-ciple of equality before the law. Ifthe MAI is ratified by ACP coun-tries, the elevation of the interestsof multinational undertakingswhich this implies will automatical-ly render obsolete, the principlesof the Lomé Convention. The oper-ation of the market will come first.

In reality, should ACPstates without any particular eco-nomic influence become insolvent,their leaders, whether democrati-cally elected or not, could beforced as a last resort into surren-dering their land, the resourcesthat lie beneath it, their watersand their air space to voraciousmarket forces. And there is cer-tainly no guarantee, even with theemployment that might be gener-ated, that this system based on de-pendence and the loss of sover-eignty, would enable poor stateslacking influence to demonstrateto their people that they have be-come participants in growing glob-al wealth. In fact, they would in-creasingly be obliged to absorbany losses experienced by the in-vestor, distributing the impact ofthis within their own countries –while it is not at all certain thatany profits from investment wouldbe shared out in the same wayamong those involved in produc-ing the fruits of growth.

Is the state to blame?

The MAI’s 12 chapters dealexclusively with ways of protectinginvestors, whatever form the in-vestment takes (money, securities,property rights, etc.). For states,there is no mention of rights, justobligations. This imbalance, inwhich multinational undertakingswould be protected at the expenseof states, will help consolidate thedominance of wealthy countriesover intermediate and (more par-ticularly) low-income ones. By di-viding the world in two – the in-vestors and the others – the MAI

officially sanctions the right totransfer property to, and concen-trate it in the hands of, a few fi-nancial oligarchies with unlimitedinfluence.

Indeed, there is a kind ofconsensus that states have beencollectively guilty of discriminatingagainst multinational undertak-ings. This ill-founded generalisa-tion, and the absence of a genuinerepresentative role for civil societyin drawing up the MAI, castsdoubt on the real intentions of theauthors of the text. In the finalanalysis, it should be recognisedthat when states resort to so-called'discriminatory practices', they doso on behalf of their own taxpay-ers and for reasons of general pub-lic interest.

Removing a state's abilityto defend the public interest, withnational fiscal provisions which ef-fectively legitimise a form of ex-propriation by international com-panies, is analagous to reversingthe burden of proof in a court oflaw. The government would be re-quired to guarantee that it is notplacing obstacles in the path of amultinational’s interests before itcould legislate for the public inter-est. In the event of a dispute, theauthorities, with no direct quan-tifiable interest, would find it ex-tremely difficult to justify offeringcompensation. Indeed, the author-ities could no longer be viewed asinvestors since they are no longerauthorised to become involved inproductive activities. Yet if thestate agrees to forego its sover-eign rights, thus depriving itself ofits unique status, it would almostautomatically find itself in thedock in disputes with investors. Allthat would remain for it would beto decide how much taxpayers’money should be allocated to pay'fines' levied for acts, in respect ofwhich it bears no fault. In such asystem, politics in the future maytake on some of the darker aspectsof systems we thought we had leftbehind.

The investor-kingSo the investor is no longer

just a physical or legal person whouses capital to purchase goods.With such a broad definition of'investment', allowing any type of

asset directly or indirectly held orcontrolled by an investor to bene-fit from the MAI, society is chang-ing from one where the consumercame first to one where the in-vestor is king. This new notion en-tails the following:

– the investor transfers all or partof his direct or indirect assets,rights or goods, for a short or longperiod, to an organisational struc-ture whose purpose is to generateprofit, power and influence;

– the investor applies most of hisenergy, directly or through an in-termediary, to the service of theproject, so as to achieve the objec-tive pursued;

– the system monopolises, or atleast draws off part of, those di-rect or indirect assets, rights orgoods, belonging to a group ofphysical or legal persons, whichexist in forms that are unaccept-able to market forces;

– the attributes of political powerand investors’ power are mergedfor the good of the community ofinvestors, the latter’s place in thestructure depending on their abili-ty to influence;

– the most influential investorsare elevated to the rank of 'un-touchable', at the centre of an in-tegrated system consisting of con-centric circles, with the leastinfluential on the outer rim.

Given the relationships ofinfluence that exist between OECDcountries and intermediate andlow-income nations, and the factthat the 'non-investor' has no op-tion but to honour his obligations,the MAI’s dispute-settlement isclearly a one-way process that onlybenefits the investor. Add to thisthe fact that some state 'represen-tatives' do not really representtheir citizens, but are actuallyquasi-official actors for transna-tional companies, and the scopeincreases for non-influential statesto 'change hands' in the wake oftheir failure to honour 'obliga-tions' to transnational companies.

A court for decidingdisputes?

The evident disappearanceof preferential treatment underthe MAI should be enough in itself

a n a l y s i s

to convince low-income countrieswith little influence (ACPs in par-ticular) not to support the underly-ing principle of the Agreement. Itssole raison d'être appears to bethe desire to remove sovereigntyfrom non-influential states wheretransnational companies encoun-ter obstacles to their control anddistribution of global wealth.What if there should be a conflictbetween an ACP country and atransnational company? On pre-sent form, the rules of any interna-tional arbitration court set upunder the system will be just asopaque as those which the WTOhas so successfully implemented inits dispute-resolution procedures.Which ACP state will be the first tocede its national sovereignty andstate prerogatives in these circum-stances?

In the context of extendingsystems geographically to includelow- and intermediate-incomecountries, the ACPs should not ruleout the possibility of setting-up acourt at sub-regional or regionallevel to decide disputes about ju-risdiction between the public andthe private sector. This might helpavoid an impasse. It is not widelyknown that under the present pro-visions, a state which signs the MAIwill not be allowed to withdrawfrom it for 20 years.

The MAI proposal woulddestroy the notion of force ma-jeure used by most insurance com-panies. In their frenzy to protectinvestment, the drafters' referenceto 'protection against social disor-der' would entitle investors tocompensation if they can prove aloss of profits. Given the frequencyof this phenomenon on certaincontinents, the potential for mak-ing a great deal of money at tax-pyers' expense looks very real in-deed. It will also be necessary toexamine how solvent states actual-ly are. If resources are low and acountry defaults, it appears thatthe only plausible action would beto annex land – as in colonialtimes!

The right to influenceOn the positive side, the

MAI does allow for exceptions andreservations. However, the out-come of the 'banana' dispute in

the WTO shows that exceptionsand reservations have lost theirprimary function, and are nowmere palliatives to bring waveringstates 'on board' and ensure theirsubsequent subservience to therule of the strongest. Based on Ar-ticle III.4 of the GATT, the com-plaint by the USA, Mexico, Hon-duras, Ecuador and Guatemalaagainst EU restrictions on the im-port, sale and distribution of ba-nanas, was deemed admissible. Ar-ticle XVII of the GeneralAgreement on Trade in Services,which stresses 'most-favoured-na-tion' treatment must also be as-sumed to be operational. In short,the key aspect is guaranteeingequal treatment for all those in-volved in the world-trade scene.This means it is no longer legallypossible to discriminate againstnon-nationals. The provisional ver-sion of the MAI stresses this, in thecontext of investors. Echoing theNAFTA text on this subject, it in-troduces the concept of equal ac-cess for all to national markets.

For the OECD, it is a newform of governance based on lev-els of influence, but it can only bea matter of time before the less in-fluential nations, and ACPs in par-ticular, suffer a genuine loss ofsovereignty. Another consequenceof economic globalisation, at thenational level, may be an evolu-tion in the idea of 'public service' –away from serving the people andtowards serving the investor.

When tariff barriers pro-gressively came down, countriesresponded by creating new non-tariff obstacles as an instrument oftheir trade policy. The penetrationof domestic markets by goods pro-duced by transnational companiesis often seen as a threat to the sur-vival of local production – becauseof the potential for indirect dump-ing. Many states still seek to pro-tect local production and servicesby introducing regulations whichmultinationals, in turn, often inter-pret as discrimination against non-nationals.

Against this backdrop, it isnot surprising that in the MAI, theconcept of protecting the investoris gaining ground over the princi-ple that allows special treatmentto nationals. This approach is al-

ready seen in the WTO and NAFTAtexts. Both of these organisationshave nearly always viewed stateregulations covering trade, ser-vices, currency, information and,now, investment, as abusive pro-tectionism. By doing away withsuch intervention, or by taking thematter to international courtswhere states' economic influencewill predominate, the championsof liberalism hope to eliminate orat least minimise disguised non-tariff barriers which they see as im-peding the development of worldtrade. What if, despite all these ef-forts, the reduction in global in-vestment recorded in the last twodecades is not reversed within thenext five years? The answer is thatthe MAI will undoubtedly haveserved other objectives, which willhave to be highlighted. If invest-ment does increase, however, theMAI will be seen as having en-abled investors to boost their ex-pectation of market control, withthe transparent agreement offuture signatory states. What iscertain is that transnational com-panies will have increased theirright to wield influence in theworld.■ Y.E.A.


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In former times, slavery was defined as 'thetrade in human beings'. Nowadays, the term issometimes used more broadly to describe a stateof submission to a master, group or society withthe added burden of being obliged to conformto degrading traditions or customs. Is this some-thing which concerns African women directly?The author of this article, a medical doctor whois President of the women’s organisation'Muakaji', has no doubt that the answer is 'yes'.

For the Bantu peoples of Congo-Kin-shasa, marriage is a fundamental tradition. It isseen as inevitable, and those who do not 'tie theknot' risk society’s disapproval. Marriage, here, isa pact between two families and their widerclans and its ultimate objective is procreation: inshort, the continuity of the clan. The alliance is

symbolised and the 'transaction' signed and sealed witha dowry. Once this has been handed over, the woman in-volved effectively belongs to her new family and clan.She is not expected to have any individuality and mustserve her husband submissively, obediently and respect-fully. Amongst the Kasaï the husband is called themfumu: which translates as 'chief' or 'master'.

Does a woman in the service of her husband ex-perience a sense of oppression, akin to servitude or slav-ery? Arguably, this feeling is more likely today than inthe past, given that dowries are increasingly paid in cash,making the transaction akin to a 'purchase'. The sums in-volved can be quite high and there are certainly someparents who regard marrying off their daughters as away to get rich quick. The dowry itself is discussed, hag-gled over and negotiated, the woman involved appear-ing as little more than a tradeable commodity.

The harsh living and working conditions of theAfrican woman represent another form of submission.Within the family, she is called on to play two essentialroles: as the wife, she is the producer; as the mother, sheis the procreator. If circumstances require her to have an-other role, this can only be secondary. From the age offifteen onwards, the woman's life alternates betweenpregnancy and breast-feeding. Fertility is exploited tothe full, because numerous offspring are seen both as adivine blessing and an insurance policy for old age (al-though it doesn't always turn out like that!). Despitemultiple pregnancies, women remain responsible for thefamily's food security. Their daily life is essentially one ofself-sufficiency – in which they have to provide water,fuel and food. In towns, work in the village fields is re-placed by small-scale commerce or gardening. And awise wife will not rely too heavily on her husband’s sup-port in these tasks. She is sometimes even deprived ofthe right to manage the income from her work. Thework itself is not made easier by the lack of appropriatetools.

ceived so little education that they have no way of com-plaining about or even questioning their situation. Theyneed to be made more aware of their lot and of their ca-pacity to improve it.

Beyond their role as wife and mother, womenincreasingly feel they have a contribution to make to thedevelopment of their family and of the wider society.This is why they have set up associations and coopera-tives which give them the chance to meet others in simi-lar circumstances, and to discuss joint projects and socialactivities.

Another form of slavery experienced by Africanwomen involves the denial of their sexual freedom. InKananga, for example, a town of a million inhabitants inthe centre of the former Zaire, few women are in a posi-tion to express any sexual choice. Whether they live in amonogamous or polygamous household, they are still re-garded as property, available for the benefit of the hus-band. When a woman has had some education, has trav-elled, has experienced life outside her close-knit circle,and has found an understanding partner, the situation issomewhat better.

In addition to the polygamy that is authorised,society also tolerates men having extra-marital relation-ships. Not so for a woman. This considerably increasesthe risk of infection with HIV and other sexually trans-mitted diseases. The fact that a husband is entitled, bycustom, to treat and use his wife as he wishes, regardlessof her feelings, means that little attention is paid to thepossibility that he might be HIV-positive. His wife is notpermitted to shirk the 'duties of marriage'.

It is true that some women have several part-ners. They are known as multiple-partner women, a eu-phemism for prostitutes. These too live in a kind of slav-ery, marginalised by society and forced to submit to theirclient’s demands, in order to scrape a day-to-day exis-tence. They often suffer beatings, rape and harassment.And there is unlikely to be any social or legal protection,since the law offers little scope for formal complaint.

Although the African family has evolved withthe passage of time, new problems have arisen. Povertyis increasing and social solidarity is in decline, includingthe loosening of family ties. Clashes between traditionand modernity occur daily. In the midst of all this,women are often pushed aside or knocked off balance,and many no longer know how to react. A woman whois a victim of the dowry system, polygamy, ignorance anddifficult living conditions has to be able to face facts andadapt. This is why politicians and decision-makers shouldinvolve them more in the decision-making process andcampaign more forcibly for support structures. With aproperly structured back-up, women can be helped tofulfil their deep longing for independence, and theircommitment to harmonious development.■ A.K.

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TY Freedom for African women?

by Antoinette Kapinga

Despite their burdens, women nonetheless as-pire to better working conditions, better pay and a de-cent life more generally. Unfortunately, many have re-


It may be merely an arbitrary calendrical calcula-tion, but the millennium is the source of an un-precedented amount of hand-wringing - and notjust among the millenarian believers awaitingArmageddon. With less than two (or should thatbe three?) years to go, the world still cannotagree on when it is, where it starts or what weshould be doing to celebrate it. Or indeed,whether we should be celebrating at all – sincethousands of computers will be unable to distin-guish '00' meaning 2000 from '00' meaning 1900,threatening to cause an administrative melt-down that could cost up to $200 billion to pre-vent.

For most of the world, the celebra-tions begin at the same moment the comput-ers might crash: 00.00 hours on January 1,2000. But that can also be interpreted as thebeginning of the last

year of the current millennium.There is no 'right' answer be-cause the calendar is man-made, springing from humanpassion for imposing evennesson a 'lumpy universe', accord-ing to the evolutionary biolo-gist Stephen Jay Gould. 'Sheervariety can be overwhelmingand frightening,' he writes in anew book, Questioning theMillennium1 'We need time'sarrow to assure us that se-quences of events tell mean-ingful stories and promisehope for improvement.' Gouldblames the fuss on DionysiusExiguus, the sixth-centuryScythian monk charged withcharting the history of Romefor Pope St John I. With no concept of zero then ac-cepted by Roman mathematicians, he gave the yearimmediately following 1 BC the number 1 AD.

Strictly speaking, 2000 is the last year of theold century rather than the first of the next, but it of-fers a more emotionally satisfying date for a party.Australia is one of the few countries planning to holdoff the celebrations until 2001 – although as hosts ofthe Sydney Olympic Games in September-October2000, Australians will be partying twice anyway.

And just to clear up another confusion: 2000will be a leap year. Since the time of Roman EmperorJulius Caesar, 29 February has been used to correctthe discrepancy between a calendar year and a lunaryear. But a supplementary rule – that century years

should only be leap years if divisible by 400 – wasadded in 1582 by Pope Gregory, to counter the tinyover-correction caused by leap years. The year 2000 isdivisible by 400 so 29 February stays.

Planned celebrations around the world offerrevealing insights into their host cultures. In the USA,the scale is huge and money talks. Giant video screensin New York's Times Square will show live pictures ofcelebrations in all 24 time zones. An already-boomingmarket in millennial merchandise includes officechairs and skin-care products. At one Colorado hotel,you can see in the millennium – and wave goodbye toyour bank balance – with a $5000 per couple, three-night package. In the UK, the press has waged war ona project to build a 360-meter diameter MillenniumDome, which will cost an estimated £762 million (ECU1.07bn). The organisers refuse to reveal the contentsof the dome, the focus of Britain's festivities, saying

only that it will fea-ture exhibitions look-ing at 'who we are,what we do andwhere we are going'.France will begin alavish FF 600m (ECU98m) programme ofcelebrations centredon a 15,000 squaremetre 'MillenniumCity' based in Paris,when the countdownclock on the EiffelTower reaches zero.

But it is the Pa-cific that is sufferingthe worst bout of pre-millennial tension inthe jostling among is-lands to be the first to

experience the new era's initial sunrise. The fight forfirst light began to get nasty when Kiribati an-nounced it would be adopting a uniform time zone,instead of the two it previously used. Nothing wrongwith that, it seemed – except that this re-positioningappeared to elbow Kiribati past Pitcairn into the firstplace in the race for first light. Sunrise-hunting rev-ellers seeking a definitive answer from experts at theUK's Royal Greenwich Observatory will be disappoint-ed. There is, they say, 'no legal reason why any coun-try cannot declare itself to be in whatever time zoneit likes... This would obviously generate an absurdsquabble, but if the financial return is sufficient andthe tourists are gullible enough, it may happen.'

Technically though, it is the Balleny Islands inAntarctica – where the sun is below the horizon forless than an hour at the height of summer – whichwill experience the first sunrise on 1 January 2000.And they are uninhabited!■ O.B.

Pre-millennial tension risesby Oliver Burkeman*

* British journalist who contributes to The Observer in London and arange of other publications. Text from Gemini News Service, 9 White LionStreet, London N1 9PD, UK.

1 Published by Jonathan Cape, London.

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Although frequently dis-missed in the past as a circusstaged mainly to serve pub-lishers' commercial interests,the Brussels Book Fair seemsto have returned to its his-torical and literary roots thisyear. From 4 to 8 March, itwas a refuge for anyonewho derives pleasure fromthe written word, whetheras an expert or amateurlover of literature. It was anideal opportunity for TheCourier to lose itself in amaze of books, both literallyand figuratively, using thesearch for information about

Africa as its Ariadne's thread.

'Diversity is an opportunityfor the human race' wrote TaharBen Jelloun (guest of honour at thisyear's fair) in his most recent work'Racism Explained to my Daughter'.Anyone who visited, even if onlybriefly, the Palais des Congrès inBrussels during the event will havebeen able to witness the variety ofliterary styles, sources and media ondisplay there, with a clear emphasison French language literature. Manyfamous writers were present to meettheir public. They attended literarysalons, delivered lectures and hadbook-signing sessions. It was soonclear, however, that African writersand their works were rather thin onthe ground. Anyone wanting to findthem had his work cut out and couldnot rely simply on luck. 'Instead oftaking a back seat, African literatureshould be at the forefront of thisevent', lamented a speaker at a lec-ture devoted to Henri Lopes, theCongolese writer and former minis-ter.

It is possible, however, totake a different and somewhat morepositive view. Although the materialavailable was limited, the overviewof African literature obtained by theattentive visitor would have been afair one, reflecting the continent'svariety. Africa has not just one, butseveral literatures, produced to beread, but also to be listened to. It isa source of novels, essays, tales,poems, short stories and even pic-

tures dealing with politics, crime, ro-mance and mysticism. The worksaim, in part, to reflect local tradi-tions, but there is also an importantfocus on black identity as conceivedby Senghor, and on the result ofAfrica's experience of immigrationas an everyday reality. It was clearfrom the Brussels fair that an Africanstory can spring from the dust of theshanty towns, the oft-repeated nar-ratives of village storytellers... or theluxury of a Paris apartment! Some ofthe work has a feminine quality likethe dunes of the Sahara or the spicesof past imperial palaces. Other writ-ings have a sweeping flow, as if thestoryline is being carried along bythe waters of a great river.

Credit where credit is due.This brief survey of the diversity ofAfrican literature has largely beenmade possible by a Belgian NGO, theCEC (Coopération par l'éducation etla culture). This organisation makesa wide range of African literatureavailable. Equally important, it rep-resented at its stand, a large numberof small publishing houses such asMédiaspaul (Kinshasa), Clé(Yaoundé) and Le Figuier (Bamako).It also invited a number of writers

and made arrangements for them tomeet the public.

To say that the authors re-vealed considerable eloquence couldbe regarded as understatement – atleast as far as some of them wereconcerned. Henri Lopes, who cameto talk about his most recent novelLe Lys et le Flamboyant (The Lily andthe Flame Tree, published by LeSeuil) chose to compare himself withWoody Allen, and even with God!He also gave us an enjoyable fifteenminute reading from a colourfulnovel describing racial and culturalcross-fertilisation on the banks ofthe river Zaire. Antoine TshitunguKongolo, on the other hand, took usto see one of the Great Lakes in hiscollection of poetry called 'Tanganyi-ka Blues' (L'Harmattan). 'Are youhomesick?' he was asked, to whichhe replied: 'I need to talk about myroots and share my culture withother people, especially in my hostcountry'. This view is doubtlessshared by Gaspard Gasarabwe, aRwandan writer who is working torediscover his country's cultural her-itage, essentially its oral literature.'The European view of traditionalAfrican society is wrong, or at thevery least too stereotyped', he willtell you with a reassuring smile,having discussed his most recentcollection of short stories, 'La

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colline des femmes' (The Women'sHill, published by L'Harmattan).

While all three of these writ-ers remind us that literature is madeup of memories, what can one sayabout 'La mort ne veut pas de moi'(Death has passed me by – publisherFixot), by Yolande Mukagasana. Theauthor bears witness to anotherRwanda and a different reality – notthe Rwanda of ancestral oral tales,but a more recent, less mythical andsadder country, which she fled afterthe murder of her entire family.

This is very different againfrom the Africa described in thebeautiful fiction of Calixthe Beyala,who was awarded the Grand Prizefor novelists by the AcadémieFrançaise in 1996, for 'Les honneursperdus' (Lost Honours – publisherAlbin Michel). 'I inherited a patch ofbrush from my grandmother, whichhas not been spared by technologi-cal progress. Its trees have been tornup, and its animals have had theirthroats cut and been piled up intoheaps and ground into pieces by sa-tanic machines. When the green oftrees and other foliage was no more,and the countryside all looked thesame, roads were built, offeringrapid access to the towns and temp-tation'. This extract comes from thefirst page of her 'Petite fille duréverbère' (Little girl of the streetlight – publisher Albin Michel).Merely by her presence, thisrenowned Cameroonian writermade many people forget the drearyrain of Brussels.

Africa also means suspense.This was felt by all those who at-tended the presentation of the mostrecent detective novel 'Sorcellerie àbout portant' (Sorcery at point-blankrange) by the Congolese writer andjournalist, Achille Ngoye. His worksare published in Gallimard's famous'Série Noire'

Once upon a time...

This year, the Brussels BookFair made a big effort to cater foryoung readers with a special focuson promoting children's literatureand stories. In this context, it hostedthe 'Rencontre internationale Jeunesconteurs' (Meeting of Young Story-tellers), attended by some 15 youngpeople, who had brought storieswith them from Quebec, France, Bel-gium and Africa. They includedSerge Mamadou, Francis Miank-oulou and Mathias Ndembet. Thelast-mentioned, the Gabonese actor,storyteller and director, who won asilver medal at the storytelling con-test at last year’s games for theFrench-speaking world in Madagas-car, entered an auditorium packedwith young and old with a song onhis lips. The lightning comes downto the animals' village and an-nounces it wants to marry theirdaughters. The snake, gazelle, buffa-lo and all the other animals are un-convinced. 'What about the dowry?',they reply. The lightning promises adowry, the lion gives his consent andthe first nuptuals, with the leopard's

daughter, are celebrated. 'Bless thebride and groom! Bless the brideand groom!' chant the children, ap-plauding. They all allow themselvesto be tricked by the lightning – untilthe tortoise arrives...

Although most of his storiesoriginate in the oral tradition of cen-tral Africa, Mathias Ndembet insiststhat he has reformulated them andbrought them up to date. This wasthe first time that he had appearedbefore a European audience, beingmuch more accustomed to perform-ing at the schools of Libreville andLambarené. 'This has been a marvel-lous experience', he told us enthusi-astically, although he pointed outthat young Gabonese children par-ticipated 'more spontaneously'.

Dominique Mwankumi alsobelieves that children's involvementis essential. This cartoonist and illus-trator from the Democratic Republicof Congo has lived in Belgium for anumber of years and is publishinghis first book, 'La pêche à la mar-mite' (Fishing with a pot – publishedin the series, L'école des loisirs byArchimède). Dozens of children,with their teacher, sat facing him onsmall white cushions. They had cometo hear the story of Kumi, a youngAfrican boy who catches fish with apot whose bottom he has coatedwith a cassava paste. 'Have any ofyou ever been to Africa? What isthere to see there?', asks the artist.Other questions are posed from allsides as the children examine thedrawings, listen to the words andjoin the discussion. DominiqueMwankumi tries to answer theirquestions in a way that gives an ac-curate picture of Africa, but he isvery concerned to leave the childrenwith an impression that is asfavourable as possible.

The 28th Brussels Book Fairended on 8 March, which was Inter-national Women's Day. It is there-fore appropriate to let a womanhave the last word. 'Le Français estfrancophone, mais la Francophonien'est pas française' (The Frenchmanspeaks French but the French-speak-ing world is more than France)stressed Calixthe Beyala in the epi-graph to her last novel.■ T.G.


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Dominique Mwankumi.'Giving Africa a positive image'.


Lack of foodsecurity: an ongoingproblemDespite more than two

decades of food-security policies, ithas proved impossible to eradicatethe causes of food crises. Somepopulation groups, at both localand national level, are still short offood, either for structural reasonsor on account of the economic sit-uation. The main causes continue

to be poverty, crises (economic,wars and natural disasters), con-straints imposed by macro-eco-nomic globalisation on the weak-est countries, and theineffectiveness of national food-security policies. In 1996, produc-tion in 82 low-income countrieswith a food shortage was insuffi-cient to feed their populations andfinancial resources were unavail-able to make up the shortfall withimports. Exploratory studies showthat lack of food security will con-tinue to be a vital issue in the earlyyears of the next century. Accord-ing to a recent FAO study, 680 mil-lion people, 70% of whom are insub-Saharan Africa and SouthernAsia, will still be vulnerable in2010.

One response: reform ofEuropean policy

Given this situation, the EChas reviewed its food-aid andfood-security policy and has under-taken to reform it, in conjunctionwith its partners, in order better toaddress the causes of short, medi-um and long-term food insecurity.EC representatives used each ofthe three seminars to present vari-ous elements of this reform, partic-ularly its innovative aspects. TheEC’s new approach is flexible andcoordinated from the preliminary

stages up to implementation andevaluation. The EC’s commitmentis, however, closely linked to thedrawing-up of reforms negotiatedwith the state and all those in-volved in national food-securitypolicy. Confirmation of the priorityto be given to direct aid, as a com-ponent of national budgets intheir own right, puts the stateback in a central position, re-defined in terms of the evolution ofthe international macro-economiccontext. In indirect aid terms, thepartnership is expanding to in-clude southern-hemisphere NGOs.The role of NGOs is evolving fromfood distribution towards involve-ment in a 'development approach'.Similarly, aid in kind now includesnot just the supply of foodstuffsbut also the elements involved infood production (fertilisers, seeds,tools, etc.). Moreover, emphasis isbeing placed on new instrumentssuch as financial aid and both localand 'triangular' purchasing.

Financial aid is partially re-placing food aid in kind. It has twomain features: first, the financingof food-security support actionsand, second, the provision of facili-ties by the local private sector, forimporting agricultural produceand food, the local-currency equiv-alent being used for budget-sup-port purposes. This second instru-ment is known as the 'foreigncurrency facility'.

Local and triangular pur-chasing represented up to 63% ofthe volume of EC food aid in 1996.It involves purchasing foodstuffsfrom regions with a surplus, eitherin the same country (local purchas-es) or in other bordering or non-bordering Southern-hemispherecountries (triangular purchases).This approach has numerous ad-vantages. It makes it possible totake better account of local con-sumption characteristics as in the

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food-security strategyand the ACPsIn the context of its 1997 'joint seminar' programme, CTA, togetherwith the European Commission’s Aid and Food Security Unit (DGVIII.B.1), organised a series of three seminars* as a forum to presentand discuss Europe’s new policy in this area. In October, Novemberand December last year, these seminars brought together govern-ment representatives (general secretaries and directors of agricul-ture, trade and finance ministries), regional organisations (ICDCS,UEMOA, IGADD, SADC) and NGOs from the ACP countries, as well asmembers of CTA and DG VIII.B.1. Each meeting brought together 40or so people, for three days, to discuss the development of food-se-curity issues, aspects of EC food-security-policy reform and othermatters specific to the countries represented.

* A joint DG VIII – CTA publication on theseseminars will be available in the near future.

Technical Centre forAgricultural and RuralCooperation (CTA),Postbus 380,6700 AJ Wageningen,The Netherlands

Tel. (31) 317 467100Fax (31) 317 460067E-mail [email protected]

The Technical Centre for Agriculturaland Rural Cooperation (CTA) was esta-blished in 1983 under the Lomé Con-vention between the African, Caribbeanand Pacific (ACP) States and the Europe-an Union Member States. CTA’s tasksare to develop and provide services thatimprove access to information for agri-cultural and rural development, and tostrengthen the capacity of ACP coun-tries to produce, acquire, exchange andutilise information in these areas.

The opening of the first CTA-DG VIII.B.1 FoodSecurity Seminar. From right to left: C. Deben,Head of the Aid and Food-Security Unit; R.D.

Cooke, CTA Director; J. Houtman, Director of DGVIII.B; and L. Tubiana, Solagral.

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case, for example, of white corn,the food staple in a number ofSouthern African countries. It isalso an effective stimulus for in-creasing agricultural productionand strengthening both local andregional trader networks. This newinstrument has made it possible toovercome a significant restrictionof former European food aid,which was made up only of theagricultural surpluses of EC coun-tries.

Some situationsexamined at the seminars

The discussions which fol-lowed this presentation tackled is-sues relating to the analysis offood-insecurity situations and im-plementing reform in the variouscountries represented at the semi-nars. Some of the examples pre-sented and discussed during thesemeetings are given below.

In Malawi, the food securi-ty of both urban and rural popula-tions is determined by the supplyof corn. Supported by donors, thegovernment has therefore sta-bilised supply by setting up a Na-tional Strategic Cereal Reserve. Inaddition, together with the gov-ernment, the EC has drawn up athree-year programme that aimsto incorporate food security intocurrent economic reforms. This in-volves restructuring the Reserve tomake it possible to deal withshort-term crises and stimulatingthe internal market for cornthrough measures to boost thetrade in inputs, to increase produc-tivity, to improve the road net-work and to increase non-agricul-tural income – all with a view toaddressing the medium and long-term causes. At this point, the dis-cussions examined the beneficialeffects of a regional strategy inSouthern Africa to consolidate ce-real production and the cerealmarket in each country in the re-gion.

In Mauritania, a countrywhich, for structural reasons, has acereal shortfall, a significant partof the population is at risk fromchronic food insecurity. After sev-eral years of structural adjustmentand poverty alleviation policies,Mauritania is to receive EC supportfor restructuring the Food-Security

Commission, with a view to mak-ing it a concrete instrument in thefight against the economic andstructural causes of food insecuri-ty. The topic of discussion movedon to the concerted nature of theprocess of reform negotiated be-tween, and set up by, the govern-ment, donors and other players.

In Yemen, 60% of the cere-als consumed are imported. Pover-ty and malnutrition affect a signifi-cant part of the rural population,which scrapes a living from subsis-tence agriculture. The causes ofthe lack of food security stem froma subsidy policy which is inappro-priate for both producers and con-sumers, and the result of whichhas been to discourage local pro-duction. Since April 1995, the gov-ernment has been involved in aprogramme aimed at adjusting theoverall macro-economic equilibri-um so as to establish a frameworkmore favourable to the country’sdevelopment. The EC is supportingthis programme to ensure thatfood security is an integral part ofthe current reforms. The authori-ties have undertaken to draw up anational food-security strategy,progressively liberalising wheatand flour prices and the distribu-tion system. Discussions touchedon flanking measures for nationalmacro-economic reforms with aview to guaranteeing the food se-curity of vulnerable groups duringthe economy’s conversion stage.

Madagascar is a countrywith the potential to produce afood surplus, but policy decisionstaken since the 1970s mean thatthe economy is now stagnating.Over 60% of the population is af-fected by food insecurity. Reformshave been implemented over thelast two years in an attempt to re-verse the trend, particularly by lib-

eralising food-produce markets. In1996, the EC alleviated the effectsof such market transformation onthe food security of urban house-holds by granting food aid in theform of flour to supply bakeriesand thereby to stabilise the avail-ability and price of bread. The po-litical changes which took place inlate 1996 and early 1997 sloweddown the negotiations which hadbeen initiated at the government’srequest, with a view to setting upa multiannual food-security pro-gramme in collaboration with theEC.

In Haiti, a country with astructural food deficit, it is the on-going nature of successive politicalcrises which, despite changes inthe last few years, has delayed im-plementation of reforms neededto draw up a medium and long-term food-security strategy. Thisincludes, in particular, an EC multi-annual programme which will notbe set in motion in the foreseeablefuture. As regards the two latterexamples (Madagascar and Haiti),the state’s key role in a nationalfood-security strategy has beencentral to the debate.

At a slight tangent, discus-sion moved on to an analysis ofthe need to improve the quality ofdiagnostic tools prior to drawingup and implementing food-securi-ty policies. This was revealed as anissue of major concern for deci-sion-makers. Delegates were ab-sorbed by the presentation givenby RESAL, the European Food-Se-curity Network. This Network,which will be set up by the EC insupport of and in connection withexisting information systems, aimsto consolidate the information


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Participants at the first CTA-DG VIII.B.1Food-Security seminar (20 October 1997).


gathering, processing and analysiscapabilities necessary for takingdecisions in the area of food secu-rity. Several priority countries andregions were chosen, includingACP states in the Horn of Africa(Ethiopia), Malawi, Mozambique,Angola, the Sahel (West Africa),Haiti, Madagascar and the Yemen.

The conclusion arisingfrom the seminars is that the ACPcountries, the Commission andother parties involved in food se-curity, face a number of challengeswhich will require their full atten-tion (see box).

Throughout the three sem-inars, the Commission presenta-tions and the reactions of partici-pants during the examination ofcase studies amply demonstratedthe diversity and complexity of theconstraints in this area. The flexi-ble instruments proposed in thereform are a timely and adequateresponse to this. The meetingsmade it possible to make further

concerted progress and to developcollaboration between Europeanpartners and ACP countries on del-icate food-security issues. The ef-fect was also to bring the Commis-sion’s new food-security policy to amuch wider audience.

Through the active contri-bution of its Director, Dr R.D.Cooke, CTA once again demon-strated, at each of the three meet-ings, the importance it accords tofood security and to this type ofdiscussion with its partners. Oneach occasion, delegates endedtheir European trip with a visit toCTA headquarters in Wageningen(Netherlands).

The Technical Centre forAgricultural and Rural Coopera-tion (CTA) was established in 1983under the Lomé Convention be-tween the African, Caribbean andPacific (ACP) States and the Euro-pean Union Member States. CTA’stasks are to develop and provideservices that improve access to in-

formation for agricultural andrural development, and tostrengthen the capacity of ACPcountries to produce, acquire, ex-change and utilise information inthese areas.■


Challenge 1: emerging from the agricul-tural dimension of food securityDuring the seminars, discussion returned several

times to the methods for increasing agricultural productionto solve the problem of vulnerable groups under pressurefrom the effects of macro-economic adjustments and inter-national markets. Indeed, a food-security policy of necessitycovers a number of sectors and is never a case of interven-ing in production. An essential component is to take ac-count of the people’s physical and economic access to food.

Challenge 2: 'converting' the actors in foodsecurityThe state needs to redefine its position

A liberalised market is not sufficient in itself to achievefood security for the population as a whole. Such liberalisa-tion involves redefining the state’s role, in terms of theareas under its jurisdiction. It is a matter of setting the rulesof the market and guaranteeing that these are respectedby the various actors, helping to establish a motivating in-stitutional and economic framework, ensuring that policiesformulated help reduce exclusion and poverty and, finally,taking the necessary measures regarding vulnerable groupswho do not benefit from the repercussions of market liber-alisation.

An association of all actors

This means involving all the players concerned (state, NGOsand the various components of civil society) in future food-security programmes, in all matters from the choice of poli-cy and instruments based on a country’s specific needs, totheir implementation. It also requires identification of theinstitutions and players who are to become involved at var-ious levels and the creation and strengthening of their ca-pabilities through information and training.

Resolving institutional issues

The resolution of institutional issues is central to this re-form of trans-sectoral food-security policy. The restructur-ing of national economies requires not only the abolitionof obsolete institutions but also the creation of new struc-tures, which is always a difficult task.

Developing coherent and complementary policies

This involves drawing up the basic principles to ensure thatthe reform is coherent with and complementary to nation-al policies, ongoing action by the European Commission,regional initiatives and the initiatives of other donors. Themain difficulty regarding coherence and complementarityis still, however, that of linking short-term emergency poli-cies to those which aim to create conditions for mediumand long-term food security.

Challenge 3: anticipating and attenuatingthe impacts of an uncertain macro-economicframeworkTo work, the reform instruments need a balanced macro-economic framework and a liberalised market. The impactsof economic rehabilitation and liberalisation on the agri-cultural sector must be anticipated and attenuated byflanking measures, with a view to removing progressively,the specific constraints that have long penalised farmers inthe Southern hemisphere. There are four such constraints:the absence of an institutional and financial environmentwhich permits private investment in the rural sector; theimporting of subsidised Northern-hemisphere food and itssale on the now liberalised markets; hindrances on export-ing food to Northern markets, and, in historical terms, theextremely unfair advantages given to agriculture in theNorth over agriculture in the South, in terms of modernisa-tion and professionalisation.

The challenges facing those involved in food-security

According to the proverb,if we each have an egg and we ex-change them, we will still haveonly one egg each. But if we eachhave an idea and we exchangethem, we will each have two ideas.One of CTA’s strategies for pro-moting agricultural and rural de-velopment in ACP countries is topromote information exchangesbetween the various actors. Thecorresponding programme, set upby this department, consists ofseminars organised and financedentirely by CTA, meetings organ-ised on a partnership basis (i.e.with shared responsibilities and fi-nancing – the so-called joint semi-nars), the ACP delegate supportprogramme which enables partici-pants from ACP countries to takepart in other meetings, and studyvisits. If necessary, the departmentalso conducts topic-specific studiesin preparation for these activities.

CTA seminars andworkshops

Seminar topics are chosenin accordance with the prioritiesidentified by the various ACP re-gions, which are grouped underfive main headings: market-orient-ed agriculture; optimising and in-tensifying agricultural production;environmental protection and themanagement of natural resources;strengthening national agricultur-al systems; and, mobilising civil so-ciety. An international manage-ment committee assists CTA in thetechnical design and practical or-ganisation of a seminar.

The seminars organised byCTA are concerned more with po-litical and strategic questions thanwith the purely technical aspectsof agricultural development. It isusually a matter of considering theexpectations and respective rolesof the actors in both the public(planning, research, dissemination)

and private (community or com-mercial) sectors to define policiesand strategies that are adapted tothe new development challenges.Examples include seminars on De-velopment Policies in the Stock-rearing Sector in the four AfricanRegions and on The Incorporationof Mechanisation into AgriculturalDevelopment Strategies.

Each year, CTA organisestwo or three seminars in Africa orEurope, and two or three togetherwith its partner institutions in thePacific (IRETA) and in theCaribbean (CARDI). Set up, moreoften than not, as a partnership,the medium-term plan is to reducethe number of seminars for whichCTA is responsible and which it fi-nances in future, in favour of jointseminars.

Joint seminarsIn these meetings, CTA

partners, other regional or nation-al institutions from ACP countriesor the EU, share responsibility interms both of objectives and re-sults, and in contributing to thecost. It is thus possible to expandthe range of topics covered and tostrengthen links between partnerinstitutions. In 1997, joint seminarsdealt, among other things, withthe management of risks linked tothe use of genetically modified or-ganisms, marketing by producerassociations, tropical forest andtree networks, and the new Euro-pean Commission policy on foodsecurity.

The three seminars jointlyorganised with DG VIII.B.1 that arefeatured on the preceding pagesare part of the department’s pro-gramme on the topic of food secu-rity – which is central to the CTAmandate. In 1998, these will befollowed by a CTA seminar on thelack of food security in ACP coun-tries, the objectives being better

identification of the structural rea-sons for the lack of food securityat local level and the formulationof strategies and programmes as-sociating risk groups and relyingon local production.

The ACP delegate supportprogramme

Seminars and joint semi-nars are not, in themselves, suffi-cient to satisfy the demand for ex-changes of ideas and meetingsthat exists among those involvedin agricultural development. Asupport programme allows ACPparticipants, who have been invit-ed by the organisers, to attendmeetings chosen on the basis oftheir relevance. Priority is given toevents organised by or in an ACPcountry over those with greaterEuropean input. There are strin-gent selection criteria governingthe smooth running of this pro-gramme which allows approxi-mately 250 experts a year to takepart in congresses, conferences,seminars or workshops.

Study visitsMeetings between oppo-

site numbers in the field, the pre-ferred place for exchanging expe-riences, have a proven track recordin improving personal skills andhence the performance level of in-stitutions and services. Each year,CTA organises one or two studyvisits on topics such as agriculturaladvisory services or seed produc-tion and distribution systems. Therole of institutions in the co-organ-iser country is essential for a fruit-ful exchange with all those in-volved in the field. The visitinggroup is made up of specialistsfrom several countries in the rele-vant region.



More about CTAThe previous CTA-Bulletin (The Courier No. 168, March-April 1998) carried the first of a series of articles explaininghow CTA’s operational departments contribute to the Centre’s overall aims and objectives. In this issue we focus on

the work of the Seminars and Studies Department. Staff from this Department were responsible for co-organising the seriesof food security seminars featured in the main article.

Promoting contacts and exchanges of expertise and experience between agri-cultural and rural development partners in ACP countries: the work of the'Seminars and Studies' department


Western Pacific. More than700,000 tonnes of Yellowfin are fi-shed annually, and 370,000 tonnescome from the Western Pacific.The ACP countries in this zone,particularly: Papua New Guinea,Fiji, Samoa, and Tonga, possessboth abundant resources and re-newable reserves. The closeness ofthe sashimi markets and the highdemand for tinned and fresh pro-ducts in Europe strongly favoursthe development of fisheries andtuna processing facilities.

The Indian Ocean is the se-cond most productive zone with20% of the global catch. Skipjackand Yellowfin are heavily exploi-ted, exclusively in western regions,but there is potential for produc-tion development in the easternregions. Bigeye and Swordfish pro-visions are increasing with the de-velopment of long-line fishing.The ACP countries in this region, in

particular Madagascar, Seychellesand Mauritius, have the high-capa-city canneries with which to in-crease their supply.

Atlantic production isstable at 500,000 tonnes, or 16%of the catch. The species mostoften caught are Skipjack and Yel-lowfin. In this area, Senegal hasdeveloped national fisheries andprocessing units while Côte d'Ivoi-re and Ghana operate large canne-ries in partnership with multinatio-nals.

Migrating fishermenVarious fishing techniques

are used throughout the world.However, transoceanic purse sei-ners which follow the migrationroutes take 80% of the worldcatch. In the early 1980s, a largenumber of the French and Spanishpurse seiners moved from the At-lantic to the Indian Ocean. Today,some of them have returned tothe Atlantic and others plan towork in the Pacific. The main purseseiner shipowners are Japanese,Taiwanese, Spanish, Indonesian,American, Korean, French, Philip-pine, and Mexican.

With a length of 60 to 110metres, the purse seiners require aheavy investment that only large

Tuna industryACP operators have a role to playTuna is the most commercialised fish product in the world, withan annual catch of more than US$6 billion. Consumer demandhas so far remained constant for both canned tuna and sashimi,but the recent appearance of new tuna-based products, alongwith expanding new markets for canned tuna, now affords ex-cellent growth potential in this sector. These are trends fromwhich ACP countries must surely profit.

The Centre for the Development of Indus-try (CDI) is a joint ACP-EU institution crea-ted in the framework of the LoméConvention linking the European Unionwith the 71 ACP countries (Africa, Carib-bean, Pacific). Its objective is to supportthe creation, expansion and restructuringof industrial companies in ACP countries.To this effect, the Centre promotes part-nerships between ACP and European com-panies. These partnerships may take va-rious forms: financial, technical andcommercial partnerships, managementcontracts, licensing or franchise agree-ments, sub-contracting, etc.

Editor:

Mr. Surendra Sharma,Director of the CDI.Avenue Herrmann Debroux, 52B-1160 Brussels, BelgiumTel.: +32 2 679 18 11Fax: + 32 2 675 26 03

CDI

There are severalvarieties of the tuna familywhich are fished through-out the world. The Skipjackand the Yellowfin make upmost of the total annualcatch, at around 1.5 and 1million tonnes respectively.Next comes the Bigeyetuna, harvesting 300,000

tonnes and then the Albacore at200,000 tonnes. Tuna are powerfulocean-crossing fish, which followparticular migration routes. Theyare also ocean-specific, with onlyone or two of the various types li-ving territorially, in each of theoceans of the world.

The Pacific Ocean yields50% of the total global catch andis the main resource for the ACPcountries in the Western Pacific.Skipjack accounts for 75% of thecatch – or 1.1 million tonnes, ofwhich 900,000 comes from the

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A yellowfin tuna being hauled aboard the MVLakanuki (Nako Fisheries in Papua New Guinea).


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multinationals in the sector havebeen able to afford up to now. Apurse seiner can catch up to 30tonnes at a time after encircling aschool. This type of fishing is notvery selective, and the fish caughtare often too small. The canneriesare mainly supplied by the purseseiner fleets.

A selective ancestral tech-nique of pole and line fishing ispractised on the banks of the At-lantic Ocean, to catch surface tuna

(mainly Skipjack). It requires keep-ing live bait on board as well asconsiderable technical competen-ce. The pole fishermen mainly ope-rate in the West African countries(Ghana, Senegal, Côte d'Ivoire,etc.) where they supply the localcanneries.

Recently modernised, 'longlining' is also a selective form of

fishing. The long lines measuretens of kilometres in length andhave thousands of hooks. They areplaced at a depth which corres-ponds to the species sought. Thistype of fishing is developing in theIndian and Atlantic Oceans, but ismost common in the Pacific. It iscarried out from small boats,which are more affordable for ACPfishermen. Line fishing also re-quires considerable skill – maintai-ning a given speed, knowledge ofthe temperature at differentdepths, the tuna routes, etc. Thistype of fishing targets animalswith high added value such as sa-shimi tuna. In this regard, the Paci-fic ACP countries are very fortuna-te because of their closeness to theJapanese market.

Destined for the canneriesWhere do the catches go?

Apart from the tuna destined forthe Japanese market, canneries ab-sorb most of the catch. These aremainly located in the USA (302,000tonnes in 1995) and Thailand(221,000 tonnes), well in front ofSpain (120,000 tonnes), Italy(83,000 tonnes), Japan (77,000

Workers clean and process yellowfin and bigeyetuna for export to Japan.

Since March 1997, the CDI and SPPF, a World Bank investment preparationaffiliate, have provided support to the fisheries located in the Western Pa-cific to improve their fleets and equipment. The goal is to enable them toimprove tuna fishing methods to meet the commercial demand for sashi-mi tuna. Three or four companies in Papua New Guinea and Tonga havebenefited from technical assistance and can now export their sashimi qua-lity tuna production economically. The master fisherman's assistance

which was given has transformed their small and medium-size boats into mo-dern long-line vessels. To have their case considered for assistance, a local pro-moter must provide evidence of sufficient financial means, technical skills, know-ledge of marketing rules, and of their commitment to meet high qualitystandards.

Technical assistance to Western Pacific tuna boats

Long-line fishing on the vessel Ebb Tide II(Papua New Guinea).

CDI support for ACP fisheriesA fish deteriorates once it has been caught, even if it is left in the water.This can lead to chemical and microbiological risks with potentially severeconsequences for public health. To prevent these risks, the import marketauthorities, including those in Europe, impose very strict hygiene stan-dards. These standards are relayed to each country through a competentpublic authority recognised by the EU. If they wish to export to Europe, allACP promoters must contact their national competent authority and un-

dergo basic quality control. They must master good production and hygienepractices to reach European hygiene standards. The most sophisticated proce-dures such as HACCP (Hazard Analysis Critical Control Points) and production tra-cing, require a high level of quality consciousness as perceived by the consumermarkets. Over a number of years, the CDI has developed considerable experiencein the application of these standards in factories in Mauritania and Uganda. Inaddition to the technical assistance which it provides, like the specific advice ofspecialists – veterinarians, engineer-architects, fishermen, and outfitters – thetrading partners' advice is probably the most useful. These partners possess expe-rience of the required hygiene standards and detailed knowledge of the endmarkets. For this reason, the CDI feels that the reinforcement of relations bet-ween trade partners is of primary importance, and it supports efforts to nurturesuch links.

CDI contact: Paul Chotard



tonnes), and Côte d'Ivoire (57,000tonnes). Most of the large canne-ries belong to multinationals,the largest of which is Star-kist, a subsidiary of the Ame-rican food giant Heinz. Itscanneries are located in Thai-land and in some ACP coun-tries including Ghana andSeychelles. To maintain sup-plies, multinationals haveagreements with the fishe-ries on all oceans. This is tocompensate for the lack ofstocks in the Atlantic wherecatches are limited and inthe Indian Ocean wherecatches are disappointing.

The largest marketsfor canned products are theUSA, where consumption isdiminishing, and the EU,where it is increasing, nota-bly in the UK. Côte d'Ivoire,Senegal, Madagascar, Ghana,Mauritius, Seychelles, Solo-mon Islands and Fiji areamong the 15 largest non-European exporters of can-ned products to the EU. On aglobal scale, the rise of newmarkets for canned productsin South America and Japangives hope for a promising

also some in Thailand where thefactories work mostly for the USA,

parations based on sashimi quality.In other markets, canned products

are the main consumer items.Since 1991, the EU has movedahead of the USA in total an-nual tonnage and since thenhas remained the largestconsumer of canned tunawith 40% of the global mar-ket (about 570,000 tonnes).

Globally, tunaconsumption is increasing.Sashimi sales are rising inJapan as well as in Japanesecommunities abroad. Thereare a number of emergingmarkets for canned productswhich include the UK, SouthAmerica, Japan, and Germa-ny. But the largest currenttrend, notably concerningEurope, is the appearance ofnew forms of consumptionsuch as fast-food salads, andfresh steaks and kebabs.These new products enableproducers to increase addedvalue locally. They representa real opportunity for ACPproducers, especially in part-nership with importers andthe large European distribu-tion chains. But to enter therace, the ACP producers

have to modernise their equip-ment and respect very strict qualityand hygiene standards (see box).They must also learn about Euro-pean consumer habits. That meansthat ACP operators must makemajor efforts in a wide range ofareas.

CDI contact: Paul Chotard

With the goal of examining the trade's evolutionalong with the new forms of partnership involvingACP operators, the CDI is organising a meeting ofACP and European operators in July 1998 within theframework of the Lisbon World Fair. The theme willbe: 'The oceans, future of mankind'. The meetingwill receive assistance and financial backing from the

European Commission and the ICEP (Investimentos Comer-cio e Turismo de Portugal). It will take place in the EU pavi-lion and, for three days, will bring together 20 or so ACPcompanies involved in the catching, processing, and com-mercialisation of raw materials or semi-finished products.Regional institutions which specialise in the managementof migration zones will also attend. Some 20 European

companies, representing the sector's main shipowners, can-ners, importers and distributors, will also take part. The or-ganisers expect to welcome a strong representation of acti-ve Pacific region operators.

The programme will include company visits and individualdiscussions. The plenary sessions will deal with the develop-ment of catching techniques, particularly long lining, thesupplying of canneries, and the development of new tunaproducts. Techniques of catching, plus the increased valueof other migratory species such as marlin, swordfish, anddolphin fish will also be discussed during the meeting. TheCDI will lend its support to nurture the most promisingpartnerships in that sector.

ACP-EU industrial operators meeting on tuna fish in Lisbon

Before being processed the fish are weighed.

future for these products, whosemain exporters continue to beAsian countries.

To ensure their supplies,other canneries located in the USand Europe now import refrigera-ted or frozen 'loins' from the fourcorners of the world. Loins are ac-tually fillets cleaned of all inedibleparts. The loin producers are loca-ted in Africa (Côte d'Ivoire, Ghana,and Kenya) where the facilities ge-nerally belong to large canneries(Saupiquet, Starkist). There are

and part of the production is alsoexported to Europe in spite of the24% duty. Although intended toprotect the European industry,these duties are not applied toproducts coming from ACP coun-tries.

Rising consumptionWhere are the consumer

markets? Japan consumes 30% ofglobal tuna production. Their im-ports are either fresh or frozenand are destined for specific pre-


The Grand-Duchy ofLuxembourg may be smallin size (2586 km2) and inpopulation (384,000), but itis very active in the field ofcooperation and develop-ment. As proof, it is one ofthe few European countrieswhose cooperation budgetexceeded 0.5% of GNP in1997. It intends to reach0.7% by the year 2000.

Each year, Luxembourgmakes numerous contributions tomultilateral organisations and alsoreserves funds for emergency aidto NGOs. Its bilateral aid, LF 1 bil-lion (ECU 25m), is essentially des-tined for 15 target countries ofwhich over half are ACPs.

These are Cape Verde,Mauritius, Senegal, Rwanda, Niger,Namibia, Burundi, and Mali.

This public bilateral aid ismanaged by the Lux-Développe-ment agency for cooperation and

development (80% of the budget)and the Ministry for Cooperation(20%). Bilateral aid granted to theprivate sector is in the hands ofthe CDI.

Because of its wish to in-tensify direct aid to small andmedium-size private industrial con-cerns in the ACPs, Luxembourgchose to work through the CDI.

As of 1994, it signed a co-operation agreement with the CDIthrough which it makes additionalfunds available for co-financingprojects and to provide a Luxem-bourg expert.

The initial endowment setat LF 10m was increased to LF 15m(ECU 375,000) as of 1996.

The foundation was mainlydestined for projects coming fromtarget countries, but other ACPcountries can also request Luxem-bourg technology or expertise.

Increasing number ofinterventions

The commitment has beenexpanding. During the first year ofintervention in 1995, only two pro-jects were selected. In 1996, sixprojects were chosen for a totalamount of LF 2.2m, and the num-ber rose to 13 last year, involvingco-financing of ECU 212,000 (LF8.5m). If we add the CDI's contri-bution, the amount reaches ECU462,000 (LF 18.5m) in 1997. Then ifwe add the contribution of theACP promoters, ECU 650,000 (LF26m) – where the three actors gen-erally divide the funding in threemore or less equal parts – we cansee that Luxembourg's contribu-tion enables the CDI to expand itsaid and thus provide funding forother projects.

Of the thirteen projects as-sisted in 1997, six received help inthe form of assistance carried outby Luxembourg consultants (stud-ies, technical assistance, and train-ing). In one case, assistance wasgranted to a Luxembourg compa-ny wishing to set up in Côted'Ivoire. The other six projectswere in Luxembourg's target coun-tries, including three in CapeVerde. In 1998, the number of pro-jects co-financed with the CDI isexpected to reach 20.

CDI contact: Jean-Marie Roth

Luxembourg-CDIcooperationSynergy in actionIn aiding the CDI to co-finance projects, the Luxembourg Foundationis effectively supporting the private sector of seven ACP countriesand thus creating a substantial synergy effect.

The 13 projects co-financed by the LuxembourgFoundation and the CDI in 1997MAIO CEMENT WORKS, Cape Verde (cement production). The CDI assistedin a feasibility study for the installation of a small cement works (+/-250,000 tonnes/year) on Maio Island.SAIFO, Cameroon (fruit juice production). Training of personnel to handlethe starting-up and subsequent production.

SESAME, Senegal/Gambia (sesame growing). Pre-feasibility study (still underway).MATEC, Burkina Faso (polyurethane mattress production). Technical assistancefor the training of technical personnel.LUXPORC/CODIPORC, Côte d'Ivoire (pig breeding). Feasibility study on the im-plantation in Côte d'Ivoire of a Luxembourg company specialised in pig breed-ing.VAP (Victoria Assorted Products), Congo (production of proteinic foodstuffs).Renovation and feasibility study with a view to re-starting the production unit.FILSAH, Burkina Faso, (cotton mill). Feasibility study which resulted in ECU 1 mil-lion of financing by the European Investment Bank for equipment acquisition.The CDI is expected to provide technical training.SERT (tuna exploitation company) Senegal (tuna fishing). Technical assistance toimprove fishing techniques and equipment maintenance.CONDITIONNEMENT D'EAU MINERALE, Cape Verde (mineral water productionand bottling). Preliminary hydro-geological study.CODIFRE, Cape Verde (semi-industrial ice cream production). Feasibility study forplant expansion.THREE PARTNERSHIP MEETINGS– for the meat sector in East and Southern Africa– for the fruit and market garden products sector in Southern Africa– for the meat sector in Southern Africa (follow-up)

Analysis of a well on Santo Antao Island (CapeVerde) to install a mineral water catchment and

bottling unit.

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The programme will include presenta-tions by specialists on technologies, local mar-

kets and processing. Company visits and meetingareas will also be arranged where the companies canexhibit their samples and negotiate technical andtrade partnership agreements.

Three groups of participants will attend themeeting. The first are industrialists in the fruit andvegetable sector, chosen from seven West Africancountries: Cape Verde, Senegal, Guinea Conakry,Gambia, Mali, Mauritania, and Guinea-Bissau. The sec-ond group are packaging and processing equipmentmanufacturers, chosen from Europe and Africa. Thethird are experts in the fields of processing, technolo-gies, and marketing.

The meeting is part of a programme imple-mented over recent years by the CDI. It aims to pro-mote the increased value of fruit and vegetablesamong African countries which possess both the pro-duction potential, and promising markets.

CDI contact: Tommy Pedersen

CICER on the road tosuccess

Strengthened by its success on the national market andby its penetration of neighbouring markets, the CICERbrewery in Guinea-Bissau will triple production in threeyears.

CICER is a brewery which was set up at theend of the colonial era in Guinea-Bissau. Following in-dependence, the government remained the majorshareholder along with two Portuguese partners,Centralcer and Unicer. In 1996, as part of its pro-gramme to disengage certain companies, the stateprivatised CICER and sold its shares to the Portuguesegroup Guininvest. Today, Guininvest is the majorityshareholder (65%), while the other shares still belongto Centralcer (30%) and Unicer (5%).

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Increasing the value offruit and vegetablesNext July, the CDI will organise a three-day semi-nar in Senegal aiming to increase the value offruit and vegetables. This seminar is intended forWest African companies, and has three goals.First, to help these companies to benefit fromthe CDI's accumulated experience of recent yearsin the fruit and vegetable processing industry.Second, to provide recent information on mar-kets, products, technologies, and product pack-aging and processing. Third, to enhance ex-changes and present opportunities for CDIassistance.

Processing pineapples at Exofruits,Côte d'Ivoire.

Among the country's leading production facil-ities, CICER concentrates its activities on the produc-tion of beer and sweetened drinks. These productsare of excellent quality and are highly appreciatedthroughout the national market. Furthermore, the ex-port potential to neighbouring countries appears verypromising.

Today, Guininvest Group is implementing aproduction renovation and expansion programme.This plan aims to substantially increase production ca-pacity, from 30,000 hl a year to 100,000 hl a year. Newinvestments to the tune of US$10m will be made overfive years. The feasibility study will be financed byCICER, the Portuguese Institute of Foreign Trade(ICEP) and the CDI.

CDI contact: Sebastiao Ditutala

CICER aims to triple production in three years. The CDI willhelp to finance the feasibility study.


After two successful pre-in-dustrial phases, the Kenyancompany Stoni Athi and itsDutch partner Beekenkamp-Lyraflor decided to moveinto overdrive. The goal: toproduce and market 150 mil-lion chrysanthemum cut-tings.

Two years ago, StoniAthi and Beekenkamp-Lyraflor made their first re-quest for assistance fromthe CDI seeking help in theestablishment of a chrysan-themum cuttings produc-tion project near Nairobi.

All the required conditions for suc-cess were brought together.Above all, the two partners hadundeniable technical expertise andsufficient financial backing.

Well known in the region,Stoni Athi has been producingroses on a 40-hectare site 10 kmfrom Nairobi since 1994. Its mothercompany, Mugoya Construction &Engineering Ltd, is Kenya's con-struction and engineering marketleader.

For its part, the Dutch part-ner has been operating in the hor-ticulture sector since 1951. It ownsfour subsidiaries producing veg-etable seedlings, chrysanthemumcuttings, young tropical plants inpots, and plastic packaging materi-als. To avoid the seasonal effect onproduction, Beekenkamp-Lyraflordeveloped partnership agreementswith French, South African, andDutch producers. Producing inKenya enables the Dutch firm toguarantee its winter productionquotas. In terms of size, its capitalamounts to ECU 15m, and its activ-ities generate a turnover of ECU40m, with a staff of 360 persons.The company also owns 60

hectares of agricultural land in theNetherlands, of which half is cov-ered by greenhouses, completewith very sophisticated equipment.

It was clear from the out-set that the partners had all the in-gredients for success. What ismore, the horticultural sector isone of the Kenyan government'spriorities. The authorities stronglywish to develop land activities andto generate both employment andforeign currency.

Because of night-time cool-ness at the beginning and end ofthe year, and problems with thewater supply, the results of thefirst trial were not conclusive, eventhough the quality and quantitygoals were achieved. It was thendecided to carry out a second trialin greenhouses and to introduce aseries of technical improvementsto the installations – more effi-cient heating and ventilation to in-crease productivity which, in thelong run, would reduce costs. TheCDI also took part in this pre-in-dustrial phase, which began in Jan-uary 1997. The aim of the secondtrial was to produce 37.5 millioncuttings. The CDI financed a quar-ter of the phase's total cost, andthe remaining costs were equallyfinanced by the FMO,Beekenkamp-Lyraflor, and StoniAthi.

Today, the results are farbetter than expected. Not onlywere the pre-industrialisationgoals exceeded, but the partnersalso decided to begin the industri-al phase with a market goal of 150million cuttings. They also decidedto create a joint venture. Theyeven plan to expand production to250 million cuttings by the year2000. The surface cultivated (1.5hectares), has increased to 4hectares, all under greenhouses.

Training 200 workers inone year

To achieve its goals, thecompany must organise its man-agement structure and hire ap-proximately 200 additional work-ers, mostly women, who have tobe trained. Therefore, the partnershave made an additional requestfor a CDI intervention which, onceagain, will provide the backing forthe indispensable transfer ofknow-how.

The challenge is clear; toproduce cuttings of sufficient quali-ty to meet the standards which en-able export to Europe, the promot-ers have created the DeliflorAssociation. Its goal is to promoteISO 9000 certification in the Kenyanhorticultural industry. Indeed, theStoni Athi project could probablyserve as an example of manage-ment and quality control to someEuropean industrialists. It perfectlyillustrates Kenya's rising potentialand performance, in the high-value-added horticultural sector.

CDI contacts: Paul Chotard and A.T.Adade-Helledy

Current projectsStoni Athi: better results thanexpected

Stoni Athi has four hectares of greenhouses.

Cultivation of chrysanthemums.

Successful pre-industrialphases

Prudently, the partnerschose to plant a half-hectare trialsurface in 1996. The goal was toproduce 15 million cuttings. Dur-ing this first preliminary phase, theCDI financed part of the advisorycost of hiring a Dutch specialist.The co-financing of these serviceswas handled by the FMO, the insti-tution for financial developmentin the Netherlands.

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Genicom:a matter oftrainingThanks to CDI's interven-

tion, Genicom (Abidjan) has beenable to implement a new dredgingoperation to extract lagoon sand,and also to train its personnel.

Active in the extraction oflagoon sand since 1986, Genicom(Civil Engineering and Commercial-isation) has benefited, over recentyears, from the high demand forsand in Abidjan's rapidly growingbuilding and public works sectors.Until very recently, the companyrented a dredge from the Au-tonomous Port of Abidjan. But themachine's availability was unpre-dictable and Genicom often ranout of stock due to lack of sand.The company therefore decided tobuy its own dredge so as to beable to plan production and satisfydemand.

After considering a num-ber of offers, Genicom purchased aused dredge from a Dutch compa-ny, Dredging and Marine Equip-ment, who reconditioned it andguaranteed its long-term use. Thedredge has a 300 m3/hour theoreti-cal extraction capacity. Because ofthis, Genicom can now forecast an-nual production at 230,000 m3 – aconservative estimate which coversapproximately 20% of the currentneeds of the real-estate projectsalready underway.

The equipment was fi-nanced in part by equity and inpart by a loan obtained throughBICICI. The promoter asked the CDIto contribute 45% of the imple-mentation and training costs ofthe four workers who would oper-ate the dredge.

Today, after verifying andcontrolling all elements, thedredge has been installed. Thepersonnel have been trained tooperate the pump and to dredgethe lagoon sand. At the same time,the workers are fully aware ofequipment maintenance needsand have been instructed on howto obtain the highest yield of sand,by the use of holding dykes.

In the framework of theCement Components Meeting heldin Abidjan last November, a sec-ond request for technical assis-tance is now being considered.

CDI contact: Sid Boubekeur.

Géobéton:sustaininggrowth At the outset, IDG pro-

duced its blocks from on-site mo-bile units to avoid transport costs.

As demand increased, ithad to change strategy and build aproduction site in Abidjan. Lastyear, it expanded its installationsand hired approximately 20 peo-ple, increasing the number of em-ployees to 45. To consolidate itsdevelopment, particularly the in-creased workforce, IDG asked theCDI for technical assistance. Train-ing was given which mainly con-cerned the handling of new equip-ment, and was deemed a successby all participants. The totalamount involved was ECU 22,000,of which 45% was borne by theCôte d'Ivoire promoter.

CDI contact: Sid Boubekeur

Above, participants at last November's concretecomponents meeting visit the Genicom site.

IDG is regularly called on for housingministry construction projects.

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Strengthened by its successin the compressed earthen blockssector for construction, Ivoiriennede Géobeton has more than dou-bled the number of its workers intwo years. It called upon the CDIfor assistance in training its staff.

Ivoirienne de Géobeton(IDG) had very modest beginningsin 1989 when it started buildingdomestic homes out of compressedearthen blocks. Initially created bya small, multi-disciplinary and com-plementary team, the company de-veloped rapidly. With the backingof share capital, it became struc-tured and gradually acquiredequipment and continued to im-prove its know-how and reputa-tion. Once the government au-thorities had duly endorsed itsproducts and production, the firmwas granted a number of newmarkets. Now, it is regularly calledupon to take part in the HousingMinistry's construction projects.


Post-Lomé perspectives for theprivate sectorAt the European Commission's invitation, Fernando MatosRosa, CDI Deputy Director, and Hamed Sow, Head of theTechnical Division and of the EU network, represented theCDI at a meeting to discuss the perspectives for private sec-tor development in the post-Lomé period. Attended byMember State and European Investment Bank representa-

tives, the discussions focused on a report outlining the EU's futurestrategy regarding the private sector of the ACP countries. Duly ap-proved by the participants, the document covers the strategic axesfor the future: macro-economic and trade policies, investment pro-tection and promotion, implementation of market economy princi-ples, privatisation, reinforcement of the financial and private sec-tors. It also covers a series of actions that can henceforth be carriedout in the framework of the current Convention and whose goal isto improve the business environment, provide direct support tocompanies, and ensure the coherence of implemented strategies.

In briefJoint meeting at the ACPGroup General SecretariatOn February 4, the East African Ministerial Delegationhad a briefing session with the ACP Secretary General,N'gandu Peter Magande and the CDI Director, SurendraSharma. Jakaya M. Kikwete (Head of Delegation), Tan-zania's Foreign Minister, Nicholas K. Biwott, Kenya'sMinister for East African and Regional Cooperation,and Rebecca Kadaga, Uganda's Minister of State forForeign Affairs (Regional Cooperation), were accompa-nied by two top officials of the East African Coopera-tion Secretariat and the three countries' Ambassadorsto the EU. The purpose of the delegation was to sensi-tise the development institutions in Brussels to the ob-jectives, policies and programmes of the East AfricanCooperation. It also sought an update on the availabledevelopment cooperation opportunities.

Visit of Kenyan Foreign MinisterBonaya Adhi Godana, Kenya's Foreign Minister, M.P.M.Mwanzia, Kenya's Ambassador to the EU and Belgium,and a number of top departmental officials met withSurendra Sharma, CDI Director, during their visit to thecentre. The delegation was informed of the CDI's cur-rent policies, its programme in Kenya, the projects it

has assisted, and future actions. The delegation informed theCDI of its government's industrial policy and expressed full satis-faction with the CDI contribution to this policy.

pean market, particularly in Germany, where the trend is to-ward replacing such oils with biologically-certified products.

CDI contact: M.J. Caudron

Congo-Brazzaville ministerial visitOn January 21, Paul Kaya, the Republic of Congo's Minister ofState in charge of Programming, Privatisation, and the Promo-tion of National Private Enterprise and his delegation were wel-comed by the CDI Director. Together they examined the axes ofindustrial cooperation established between the CDI and the Re-public of Congo. They also discussed current and future jointprogrammes in favour of small and medium-size Congolese in-dustrial firms. During the work session, the Minister underlinedthe enormous reconstruction needs of Brazzaville and othercities. The Ministerial Delegation and the CDI agreed to concen-trate CDI assistance efforts on the three following sectors: con-struction materials, transformation and conservation of agricul-tural and fishing products, and promotion of small andmedium-size companies and industrial concerns.

Industrial partnership days – BordeauxAquitaineThe CDI seized the opportunity offered by the '8th Aquitaine dayof Bordeaux industrial partnership' at the end of January to in-vite, along with the Agency for International Cooperation IntercoAquitaine, eight African professionals from the industrial poultryfarming sector (from Cape Verde, Guinea, Cameroon, Gabon).The invitation was extended in the framework of the sustainedassistance efforts that the CDI is methodically developing with theindustrial poultry sector. This sector has, since 1993, been regard-ed as one of the target sectors for development. At the end ofthe mission, the ACP promoters hope that a foundation for fu-ture partnerships will lead to rapid results. In the same perspec-tive, Interco Aquitaine and the CDI are organising an ACP-EUseminar on the poultry sector from June 16-19 in Abidjan. Thiswill bring together approximately 25 companies from Côted'Ivoire, Ghana, Togo, Benin, Guinea, and Cape Verde, as well asnational professional associations from Senegal, Cameroon andsome 15 EU companies. CDI contact: Chérif Touré

Follow-up of the Abidjan 'Cement compo-nents' meetingThe CDI is currently handling the follow-up of the cement compo-nents meeting (Abidjan, November 1997) together with the teamof international and local experts who took part in the prepara-tion and organisation of the meeting. The results are quite tangi-ble with some 15 projects due to receive CDI backing in 1998.Two groups of companies have been distinguished. The first in-cludes ECOWAS firms whose contacts and negotiations with Euro-pean companies are well underway and can now benefit fromCDI backing. The second group includes projects of other ECOW-AS undertakings that require more investigation prior to beingconsidered for support. What is required is more detailed infor-mation on target markets, on the promoter's financial capacity,and on the projects' financing perspectives.

CDI contact: Sid Boubekeur

Belgium-Côte d'Ivoire cooperationIn the framework of the backing of the Côte d'Ivoire govern-ment's National Support Programme of Private Sector Develop-ment, Belgium has contributed some ECU 1.36m (almost CFAF900m) to boost the assistance offered by the Côte d'Ivoire compa-ny ASE (Support and Services to Enterprises). The administrativeentities in charge of the project's supervision are, in Côte d'Ivoire,the small and medium-size companies and industrial concerns ad-ministration of the Ministry in charge of Industrial Planning andDevelopment and, on the Belgian side, the Cooperation sectionof the Belgian Embassy in Abidjan. ASE is a private, direct-supportstructure for companies that aim to aid existing small and medi-um-size industrial concerns, the promoters of such projects, andthe industrial concerns that can be privatised. In the frameworkof its missions, ASE publishes practical information for companiesand nurtures a network of local expertise. The CDI has been themain contributor to the management of ASE since May 1995.

CDI contact: Alioune Badara Ndiaye

Biological Agriculture – Bio Fach FairThe largest-ever fair devoted to biologically grown products washeld in Frankfurt from 26 February to 1 March. The CDI, alongwith Protrade/GTZ and Promabio, the group representing thebiological agriculture sector in Madagascar, invited eight Mada-gascan companies to present their products (among others,ylang ylang, vanilla, pepper, cocoa, coffee, apples, pineapples)destined for the food, pharmaceutical and cosmetic industries.Among the countries represented at the fair, Madagascar of-fered the largest range of essences. Currently, these are eitherconventional or biological and are in high demand on the Euro-

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WAEMU harmonisesits price statistics

Seven countries of the WestAfrican Economic and MonetaryUnion (WAEMU) are publishing,for the first time, a harmonised re-tail price index (IHPC). Guinea Bis-sau intends to join the system nextyear. The new index, which was es-tablished in January 1998, willhenceforth provide a regularly up-dated and reliable measure of in-flation in the region. It will be ofuse to national and regional offi-cials as well as to economic opera-tors in the private sector.

Two main reasons lie behind thedecision to set up the new system.First, it is important to tackle theinflationary pressures that have ex-isted since the devaluation of theCFA franc in January 1994. Experi-ence has shown that national in-dexes have their limits – whichmakes life difficult for those whoneed speedy access to precise in-formation about inflation trends.Second, the WAEMU Treaty re-quires the Union, among otherthings, to work towards conver-gence, both in the economic per-formance and the macro-economicpolicies of its Member States.

The integrated system results fromcollaboration between theWAEMU Commission, the CentralBank of West African States(BCEAO) and the national statisti-cal bodies of the Member States.The IHPC has been assisted by theEuropean Commission (EUROSTATand DG VIII) and France. In qualita-tive terms, the arrangements arein conformity with internationalnorms relating to the preparationof statistics.


The Commonwealth and LaFrancophonie (the grouprepresenting nations whereFrench is spoken) sent ajoint observer group to Sey-chelles to observe the elec-tions held in March. It is thefirst time the two organisa-tions have acted togetherin this way. The initiativecame from BoutrosBoutros-Ghali, the formerUN chief recently appoint-ed the first Secretary-Gen-eral of La Francophonie. Heplanned the operation withCommonwealth Secretary-

General Chief Emeka Anyaoku.

The observer group was managedby the Commonwealth which hasmonitored 35 elections, referen-dums and other polls, includingthree in Seychelles. The Seychellesdevelopment is a further sign ofthe French grouping's intention toemulate the Commonwealth. Onlylast November, it decided at itsHanoi summit to set up an admin-istrative body in Paris rather onthe lines of the CommonwealthSecretariat in London. Francopho-ne officials have visited the latter'soffice several times to pick up tips.

Elections in many French-speakingcountries in Africa have been mon-itored by international groups,mainly with help from the EU, but

unlike the Commonwealth's, theirreports are usually not published.

The Commonwealth has a particu-larly good record in moving Sey-chelles from one-party to multi-party rule, having persuadedPresident René to accept a democ-ratic system, and then monitoredin 1992-93 all the processes from areferendum on a new constitutionto general elections.

(Abridged from an article by DerekIngram, Consultant Editor of Gemi-ni News Service)

EU concern oversituation in SierraLeone

On 20 February, the EuropeanUnion issued a statement express-ing concern about the continuinginstability in Sierra Leone. In thewake of the recent fighting, itcalled for targeted humanitarianoperations to begin as soon as pos-sible to relieve the people's suffer-ing. It also urged ECOMOG to co-operate with the UN, ECHO andother aid agencies to facilitate thisprocess.

The statement called on those in-volved in the conflict to respectthe lives of EU citizens and de-manded the release of all hostages

from EU Member States. A peace-ful future in Sierra Leone, it said,could only be ensured through rec-onciliation – and the warring par-ties were urged to work towardsthis, beginning with the swift rein-statement of the democratically-elected government of PresidentKabbah.

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ACP Group on the Internet

The ACP Group has established a website on the Internet.This contains extensive background and current

information on the Group. The address is:

http://www.oneworld.org/acpsec The first IPHC figures revealed thatprices rose by 3.3% in the WAEMUregion in January 1998. The indexwill be published every month.

Promotion of humanrights and democracyin the ACPs

CommissionerPinheiro visits thePacific

Progress report ongender equality

The Commission has adopted itsfirst progress report, following upits 1996 Communication on 'Incor-porating equal opportunities forwomen and men into all Commu-nity policies and activities'. The re-port notes that significant progresshas been made since 1996, particu-larly in three policy areas:

– employment policy and theStructural Funds;

– external relations (including de-velopment cooperation andwomen's human rights); and,

– education, training and youthpolicies.

At the same time, it indicates thatmore strenuous efforts are neededto integrate the gender dimensioninto certain core EU policies – re-lating, for example, to the processleading to the enlargement of theEU, and to the 'information soci-ety'.

The Commission has also publisheda glossary of terms on equality be-tween women and men entitled'100 words for equality'. Availablein 10 Community languages, thisseeks to clarify gender-related con-cepts. It is targeted at policy-mak-ers, women's organisations andother sectoral associations.

Successful outcometo waste conference

Following a week of intensive ne-gotiations, the results of theFourth Conference of the Partiesto the Basle Convention on theControl of Transboundary Move-ments of Hazardous Wastes andtheir Disposal, lived up to the envi-


n e w s r o u n d - u p

The Commission has recentlyadopted a Communication whichdefines more precisely such no-tions as human rights, democraticprinciples, the rule of law andgood governance. It also outlines aplan of action designed tostrengthen these notions in thecontext of ACP-EU relations. Thegeneral aim of this initiative is topromote peace and structural sta-bility – without which no develop-ment is possible.

The action plan consists of two ele-ments. The first is a deepening ofthe dialogue with the ACP states.This dialogue should, in turn, leadto a better definition of the essen-tial concepts set out in the LoméConvention – both from an intel-lectual perspective, and in terms ofconcrete actions to be taken to en-sure effective implementation. Keyelements include:

– the recognition and defence ofhuman rights and basic individualliberties;

– equity and the primacy of law;

– the existence of institutionalmechanisms allowing citizens toparticipate in the taking of deci-sions that affect their future;

– pluralism within the political sys-tem, state institutions and civil so-ciety;

– the transparency and integrityof institutions;

– the capacity of institutions tomanage their resources and to for-mulate and implement policy.

In the second part of the Commu-nication, the Commission identifiesthe priority areas for cooperation.These include support for institu-tional and administrative reforms(constitutional, judicial and legisla-tive), civic education in the field ofhuman rights, support for a freeand independent media, andstrengthening participation bywomen in the democratisationprocess and in the fight againstfraud and corruption.

Racism in football

The Football Associations of the EU countries met in Brussels on 10 Feb-ruary to share ideas, strategies and experiences on combating racism inthe sport. In what is the European Year against Racism, the EuropeanCommission is funding a project, 'Let's Kick Racism out of Football'. An

exhibition and seminar were organised to highlight the contribution of foot-ball to the issue. The exhibition was opened to school groups, youth organisa-tions and football clubs. The seminar, meanwhile, brought together teachers'organisations from across Europe, representatives from European Football As-sociations and others with experience in sport and racial equality. Among thespecial guests was the legendary Portuguese footballer, Eusebio.

João de Deus Pinheiro made an of-ficial visit to French Polynesia andFiji in early March. This was theDevelopment Commissioner's firstvisit to the Pacific Region and thefirst by a Member of the EC Com-mission to the Pacific ACP Groupsince 1990. Mr Pinheiro was greet-ed on his arrival in Tahiti by Gas-ton Flosse, President of the Gov-ernment of French Polynesia. Hewent on to tour an EU-funded san-itation project on the island ofBora Bora. On his return to Tahiti,Prof. Pinheiro had an exchange ofviews with President Flosse andother senior political figures. Helater met Jean Arbaud, France'sHigh Commissioner in French Poly-nesia.

The Commissioner then travelledon to Fiji where he had meetingswith Prime Minister Sitiveni Rabu-ka, Foreign Minister Berenado Vu-nibobo and Noel Levi who is Secre-tary General of the South PacificForum. The special problems fac-ing the Fiji sugar industry were dis-cussed in the meetings with thePrime Minister and Foreign Minis-ter, and the Commissioner wasalso apprised of the importance oftourism and fisheries for Fiji andthe wider region. At the ForumSecretariat, Prof. Pinheiro wasbriefed on the concerns of the Pa-cific ACP Group about the natureof links with the EU beyond theyear 2000. Mr Pinheiro explainedthat he was keen to see a relation-ship that was differentiated suffi-ciently to meet the specific needsof the Pacific region.


ronmental expectations of the Eu-ropean Union.

Conference participants, meetingin Kuching, Malaysia, in the lastweek of February, unanimouslydecided to make the lists of bothhazardous and non-hazardouswastes mandatory for the Partiesto the Convention. This decisionclarifies the scope of the exportban adopted by the Conference in1995 and will make implementa-tion of the ban more effective. Thedecision was welcomed by the EUMember States, environmental or-ganisations and trade and industryassociations. Other state parties,including in particular, the devel-oping countries, also expressedsatisfaction at the outcome.

The Conference decided to leaveunchanged the list of countriessubject to the export ban on haz-ardous waste. At present OECDcountries, the EU and Liechten-stein are prohibited from export-ing such waste to other countries.In not easing the ban, the decisionaccordingly maintained the statusquo. The Conference also under-took to analyse the consequencesof any loosening of the ban.

Humanitarian aidin Africa

The Commission has recently ap-proved humanitarian aid worth atotal of ECU 3.6 million for pro-jects in Africa. The aid, managedby the European Community Hu-manitarian Office (ECHO) will gotowards projects in Somalia,South-eastern Africa and Mada-gascar.

Somalia – emergency medical andfood aid (ECU 2 million). Civilianshave grown increasingly depen-dent on aid for survival amidchronic instability. This project isintended to provide health care,food aid and immunisation, and tofund the rehabilitation of waterand sanitation facilities.

South-eastern Africa – anti-choleracampaign (ECU 1.5 million). Thewhole of the region (Kenya, Tan-zania, Mozambique, Somalia, Dji-bouti, Uganda and Malawi) is af-fected by a cholera epidemic. Thisproject will aim to save livesamong those infected, as well as

working on prevention and healtheducation.

Madagascar – food security earlywarning system (ECU 100,000).South Madagascar is regularly ex-posed to food shortages linked todrought, cyclones and, this year,locusts. An early warning systemshould help pick up the signs pre-ceding a crisis and facilitate settingup targeted assistance pro-grammes.

Commission sets up'Common Service'The European Commission is

in the process of establishing a'Common Service' to deal with theimplementation of financing deci-sions in its external relations.Philippe Soubestre, the Deputy Di-rector-General for Development(DG VIII) has been to appointed tohead the new service. The changeinvolves regrouping officials whoare responsible for implementingaid projects and programmes, andother financial aspects, in a singlestructure. One of the main aims ofthe move is to achieve more coher-ent and harmonised procedures. Aslimmed down DG VIII will contin-ue to deal with the policy aspectsof the ACP-EU relationship.

Cooperation withNGDOsThe Commission has just

agreed on the text of a report cov-ering its cooperation, during 1996,with non-governmental develop-ment organisations (NGDOs) inareas of interest to developingcountries. The document gives de-tails of actions in favour of devel-oping nations, efforts to raise pub-lic awareness in Europe and foodaid operations carried out by theNGOs in partnership with the EC.Also covered are activities in sup-port of refugees – including repa-triation, rehabilitation and recon-struction.

Over the last two decades, the Eu-ropean NGDOs and the EC havecooperated closely together. Eu-rope's citizens, meanwhile, haveunderlined their solidarity towardsthe world's poorest and most mar-ginalised populations throughtheir support for the work carried

out by the NGOs. Community aid isprovided in concrete form throughcofinancing of development pro-jects and programmes, awareness-raising activities, food aid schemes,humanitarian interventions andother more specialised approaches.

Despite the general pressures oncooperation and developmentbudgets in recent years, and thespecific financial constraints facingthe Commission, the EC has regu-larly been able to allocate fundsfor NGO work.

In 1996, more than ECU 703m ofEC budget resources were provid-ed to NGDOs for their humanitari-an activities in the developingcountries. NGOs also play a signifi-cant part in implementing projectsunder the Community pro-grammes for Asia and Latin Ameri-ca, and under the European Devel-opment Fund (ACP countries). Thespecial budget line to cofinancedevelopment projects with Euro-pean NGOs was allocated ECU175m in 1996.■

n e w s r o u n d - u p

(The history of world agri-culture from neolithic timesto contemporary crisis)

by Marcel Mazoyer andLaurence Roudart. Ed. DuSeuil (27, rue Jacob, ParisVIème), 1997, 546pp. 180

FF. IBSN 2-02-032397-4

This opus magnum, by two Frenchagricultural engineers, sets out tochart the history of the world'sagriculture over the centuries fromthe neolithic age to the difficultiesof the present day – stopping offto discuss everything from theIncan agricultural system and culti-vation using draft animals to foodshortages and famines, and evenstructural adjustment policies. Theresult is impressive – a workcrammed with information – notalways pointing in the same direc-tion – illustrated with numerousdrawings and explanatory tables.

The book answers many questionsabout the various farming prac-tices, techniques and cultures thathave influenced and often direct-ed the course of agricultural devel-opment since plants were first cul-tivated for human consumption. Italso looks at the situation today,on the threshold of the third mil-lennium, and sets out some inter-esting ideas. For example, the au-thors argue that the 'current crisis'in the world economy is due to theunthinking application of the prin-ciples of competition. They do notsee this as appropriate given thehuge inequalities in the agricultur-al heritage of different regions ofthe world. They propose a global'anti-crisis' strategy designed tosafeguard and develop poor peas-ant economies, to reinvigorate theinternational economy, and to


build a 'livable' world for thewhole of humanity.

Les noms de villages dansla tradition gabonaise(Village names in the Gabonesetradition)

by Mukumbuta Lisimba, Ed. Sépia,Paris, 1997, 176pp. IBSN 2-84280-009-5

The author of this work, a Zam-bian linguist at the InternationalCentre for Bantu Civilisations in Li-breville, sets out to look at the his-tory of the people of Gabon usingthe names that they gave their vil-lages as a basic frame of reference.His key 'database' is 2000 villagenames which he has classified bylanguage and theme. From this, hehas been able to identify some ofthe key preoccupations of thosewho founded the villages, and totrace the migratory patterns oftheir inhabitants, thereby uncover-ing one of the hidden aspects ofthis Central African country, whereold settlements are abandonedand new ones established in equalmeasure.

Sahel: les paysans dansles marigots de l’aide(The Sahel: rural people in an aid'backwater')

By Marie-Christine Gueneau andBernard J. Lecomte, Ed. L’Harmat-tan, 1998, 279pp. IBSN 2-7384-6155-7

This book is inspired by the angerof its authors – two project evalua-tors who repeatedly encounter intheir work the same defects of de-velopment assistance. Each chapterbegins, more or less, with a boneof contention, highlighted in atone which sometimes grates. Thisis followed by an analysis of prac-tices in the aid system, a diagnosis,and suggestions about how themethods and behaviour of bothNGOs and public aid agencies

should change. The geographicalscope of the analysis is limited tothe Sahel countries, from whichnumerous practical examples aredrawn.

Sustainable RuralDevelopmentby Andrew Shepherd, (publishedin 1998: in Great Britain byMacmillan Press Ltd; in the USA bySt. Martin’s Press, Inc)

The author, a senior lecturer in De-velopment Administration at theUniversity of Birmingham, hasbased this study on many years offieldwork in Africa and India. Hereviews the conventional ap-proaches to rural developmentand concludes that they are nolonger viable, because they are toocontrolling and short-term in theirperspective. He believes new para-digms are necessary. Funders anddevelopment agencies must workmore in participation with localpeople, playing a supporting role.Thus, the ordinary rural popula-tion would be put firmly in the dri-ving seat.

The book contains detailed cover-age of a wide range of policy is-sues, and deals with the implica-tions of the new ruraldevelopment paradigm for the dif-ferent types of organisations in-volved.

Evaluación de proyectosde ayuda al desarrolo:manual para evaluadoresy gestores(Evaluation of Aid Assistance: ahandbook for evaluators and man-agers)

Instituto universitario de desarrol-lo y cooperación, Donoso Cortés,65. 6° dcha. 28015 Madrid. Avail-able in Spanish and English.

This handbook provides, from apractical and didactic perspective,all the information necessary toevaluate a development project. Itincludes sections on the theory ofdevelopment, evaluation modelsand data-collection methods. Itcould be a useful tool for profes-sionals involved in developmentassistance, whether in NGOs, pub-lic service or as consultants.■

Histoire desagricultures dumonde, dunéolithique à la crisecontemporaine

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The house which is the central feature ofthis watercolour is plainly Caribbean butwhat makes the image typically Trinidadianis the scene in the foreground. People mayhave got together to play the pans as farapart as London, New York and Kingston,but everyone knows that Trinidad is thehome of the steel band. On a balmy eve-ning in Port of Spain, you may well heartantalising snatches of this clear and dis-tinctive music as groups rehearse in theirpan yards for the Carnival competition.The chiming sound of the steel drum has asublime, almost ethereal quality which youfeel should have come from an altogethermore delicate instrument. Nowadays, thepans are lovingly crafted to produce justthe right pitch and tone, but they still have

the robust look of the oil barrels from which theywere originally fashioned.The steel drum is a relatively new instrument,dating back to the 1930s, though people inTrinidad says its roots go far deeper – with linksto the African drum. During the 19th century,while the islands were under British colonial rule,neighbourhood gangs are said to have used handdrums to summon their members when a fightwas brewing with a rival group. Each gang hadits own distinctive beat – a kind of signaturetune. In 1886, in an attempt to stamp out the

violence, the authorities banned the drums. As aconflict-prevention measure, it wasn't exactlyeffective (it hardly went to the nub of the pro-blem!) and the gangs took to using bamboocanes. The call to 'battle' was issued by thumpingthese on the ground. The unimaginative officialresponse, in time, was to prohibit the 'TambooBamboos' as well. With traditional instrumentsoutlawed, so the story goes, people cast aroundfor other objects to 'keep the beat'. It was reali-sed that old oil barrels could be used to producea satisfactory volume and thus the original 'IronBands' (still essentially competing gangs) cameinto being. Not long after that, someone realisedthat different pitches could be produced by ham-mering sections of the flat end of a barrel into adish shape – and a new way of making music wascreated.The steel band movement may have an unusualand not wholly reputable ancestry, but today itgives pleasure to thousands of players and mil-lions of listeners. In Trinidad itself, the rivalryremains intense in the struggle for (artistic)supremacy, but while sweat, toil and tears maystill be involved, blood mercifully no longer fea-tures. St Francis of Assisi would be happy withthis tale of harmony born out of discord.■

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