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Special Section: A Selection of Research from the 2019 UJ-Wits Postgraduate Student Conference

Credible commitment and large dam development in sub-Saharan Africa

 

ABSTRACT

This article examines the factors that facilitate or hinder credible commitment in large dam investment cooperation in sub-Saharan Africa, which even with an abundance of untapped hydropower potential has a shortfall of electricity generation and supply. Research finds an uneven pattern of large dam development on the continent, indicating the lack of traditional investment to promote energy security. Investment for hydropower development requires cooperation between several stakeholders, and its success depends on the credible commitment by a host government. Drawing on a comparative study of the Cahora Bassa Dam and the Inga III Project, this article examines why the latter yielded a failed outcome. The study finds that factors such as regime insecurity and uncertainty, regime type and the institutions, context and interest of actors, as well as market and market proximity can incentivise and equally hinder a host government’s ability to credibly commit to large dam investment cooperation.

Acknowledgements:

This paper was presented at a joint postgraduate students’ conference on International Relations and African Affairs, hosted by the University of Johannesburg and the University of the Witwatersrand, Johannesburg, in December 2019, hosted by the Department of Politics and International Relations and the SARChI Chair in African Diplomacy and Foreign Policy at the University of Johannesburg. This paper draws on the author’s PhD thesis submitted to the University of the Witwatersrand, South Africa. The author is appreciative of the anonymous referees and the editor for their constructive feedback on this paper, which draws on the author’s PhD thesis submitted to the University of the Witwatersrand, Johannesburg, South Africa.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Note on contributor

Ekeminiabasi Eyita-Okon is a PhD candidate at the Department of International Relations, University of the Witwatersrand, Johannesburg, South Africa.

Notes

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2 Dixit, ‘Investment and hysteresis.’

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5 T.C. Schelling, Strategies of Commitment and Other Essays (Cambridge, Massachusetts and London, England: Harvard University Press, 2006).

6 P. Ghemawat, Commitment: The Dynamic of Strategy (New York: The Free Press, 1991).

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12 Simmons and Danner, ‘Credible Commitments and the International Criminal Court.’

13 J.K. Setear, ‘An Iterative Perspective on Treaties: A Synthesis of International Relations Theory and International Law,’ Harvard International Law Journal 37, no. 1 (1996): 139–229.

14 Setear, ‘An Iterative Perspective on Treaties.’

15 V. Buskens, Social networks and the effect of reputation on cooperation, 6th international conference on social dilemmas, 1998. J. Wu et al. ibid.; P. Bardhan, Scarcity, conflicts, and cooperation: essays in the political and institutional economics of development (Massachusetts institute of technology (MIT), 2005).

16 D. North, Institutions, institutional change, and economic performance (New York: Cambridge University Press, 1990).

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20 A. Dixit and B. Nalebuff, eds, Thinking strategically: the competitive edge in business, politics, and everyday life (W.W. Norton & Company, 1991).

21 For detailed history on the Cahora Bassa Dam, see K. Middlemas, Cabora Bassa: engineering and politics in Southern Africa (London: Weidenfeld and Nicolson, 1975).

22 Middlemas, Cabora Bassa.

23 World Bank, ‘The potential of regional power sector integration: Cahora Bassa generation case study,’ 2010, http://documents.worldbank.org/curated/en/151711468320667853/pdf/773070v30ESMAP0ora0Bassa0Generation.pdf.

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26 Smith, ‘The Idea of Mozambique and its Enemies, c. 1890–1930.’

27 K. Middlemas, Cabora Bassa: engineering and politics in Southern Africa (London: Weidenfeld and Nicolson, 1975).

28 C.A. Mungói, A. Produção de Energia: Usos Políticos e Econômicos do Território e Desenvolvimento Rural no Vale do Zambese, Moçambique – A Barragem de Cahora Bassa em Questão,’ GEOUSP – Espaço e Tempo, São Paulo, No. 29 – Especial, pp. 77–84, doi:10.11606/issn.2179-0892.geousp.2011.74206.

29 K. Middlemas, Cabora Bassa: engineering and politics in Southern Africa (London: Weidenfeld and Nicolson, 1975).

30 Middlemas, Cabora Bassa.

31 Middlemas, Cabora Bassa.

32 World Council of Churches, Cahora Bassa and the Struggle for Southern Africa (London: Hatfield Group Printers Ltd, 1971), 1–41.

33 J. Saul, ‘Introduction to Mozambique: sowing the seeds of revolutions,’ Interview with Samora Machel (1974): 3–5, https://www.marxists.org/subject/africa/machel/1972/sowing-seeds.htm.

34 Ministério Do Ultramar, ‘Cahora Bassa project: supply contract between the government of the Republic of Portugal and electricity supply commission of the Republic of South Africa,’ Imprensa Nacional de Lisboa, 1969.

35 Ministério Do Ultramar, ‘Cahora Bassa project.’

36 A. Isaacman, ‘Domesticating a white elephant: sustainability and struggles over water, the case of Cahora Bassa Dam,’ Zambezia XXVII, no. ii (2001): 209.

37 The Department of Foreign Affairs 1984, 15 Department of Foreign Affairs, Pretoria, The Cahora Bassa Agreement, Perskor, Doornfontein: Johannesburg 1984.

38 A. Isaacman, ‘Domesticating a white elephant,’ 218.

39 S. Funada-Clasen, The Origins of War in Mozambique: A History of Unity and Division. Translated by Osada M, (Tokyo: Ochanomizu Shobo Co Ltd, 2012).

40 Funada-Clasen, The Origins of War in Mozambique.

41 A. Van Huyssteen, ‘Eskom holds whip Hand in tariff negotiation,’ Financial Mail (1997): http://users.iafrica.com/s/sa/salbu/apollo/CoharaBassa.html.

42 R. Chalmers, ‘Cahora Bassa power to flow after 16 Years,’ BusinessDay (1998), http://users.iafrica.com/s/sa/salbu/apollo/CoharaBassa.html.

43 K.B. Showers, ‘Congo Rivers’ Grand Inga Hydroelectricity Scheme: Linking Environmental History, Policy and Impact,’ Water History 1, no. 1 (2009): 31–58.

44 H. Olivier, Great dams in Southern Africa (Cape Town: Purnell, 1976), 26, 60.

45 Olivier, Great dams in Southern Africa, 41.

46 A. Maupin, ‘Energy and Regional Integration: The Grand Inga Project in the DR Congo,’ in A New Scramble for Africa?: The Rush for Energy Resources, ed. Soren Scholvin and Georg Stuver (Ashgate Publishing Limited, 2015).

47 K. Gottschalk, ‘Hydro-politics and hydro-power: the century-long saga of the Inga project,’ Canadian Journal of African Studies 50, no. 2 (2016): 279–94.

48 Gottschalk, ‘Hydro-politics and hydro-power.’

49 Gottschalk, ‘Hydro-politics and hydro-power,’ 283.

50 The World Bank, ‘World Bank Group suspends financing to the Inga-3 Basse Chute technical assistance project,’ 2016, http://www.worldbank.org/en/news/press-release/2016/07/25/world-bank-group-suspends-financing-to-the-inga-3-basse-chute-technical-assistance-project.

51 P. Fabricius, ‘Inga dream again deferred,’ 2016, https://issafrica.org/iss-today/inga-dream-again-deferred.

52 Congo Research Group and Resource Matters, ‘Inga III: Kept in the Dark: How the World’s Largest Hydropower Site is being Negotiated behind Closed Doors,’ 2016, http://congoresearchgroup.org/wp-content/uploads/2019/10/GEC_Resource-Matters_Inga-III_EN_final-2.pdf.

53 Fabricius, ‘Inga dream again deferred.’

54 World Bank, ‘Implementation Completion and Results Report (H909-ZR) on a grant in the amount of SDR47.7 MILLION ($64.5 million equivalent) to the Democratic Republic of Congo for a DRC Inga 3 and mid-size hydropower development TA (P131027),’ Energy and extractives global practice: Africa Region (February 2018), http://documents.worldbank.org/curated/en/266481521472063648/pdf/ICR0000432503142018.pdf.

55 The World Bank, ‘World Bank group suspends financing to the Inga-3 Basse Chute technical assistance project,’ 2016, http://www.worldbank.org/en/news/press-release/2016/07/25/world-bank-group-suspends-financing-to-the-inga-3-basse-chute-technical-assistance-project.

56 G.D. Koblentz, ‘Regime security: a new theory for understanding the proliferation of chemical and biological weapons,’ Contemporary Security Policy 34, no. 3, 501–525.

57 C.J. Coyne and P.J. Boettke, ‘The problem of credible commitment i reconstruction.’ Journal of Institutional Economics 5, no. 1, 16.

58 Isaacman, ‘Domesticating a white elephant,’ 206.

59 Isaacman, ‘Domesticating a white elephant.’

60 A. Isaacman, ‘Large dams, sustainable livelihoods and the use of oral histories: the case of Cahora Bassa,’ Confronting the Challenges of the 21st Century – Proceedings of the Forty-Ninth Pugwash Conference on Science and World Affairs (Word Scientific Publishing Co.: Singapore, 2001).

61 Maria P. Meneses, C.B. Rosa, and B.S. Martins, ‘Colonial Wars, Colonial Alliances: The Alcora Exercise in the Context of Southern Africa,’ Journal of Southern African Studies (2017); 1–14; W. Radmann, ‘The Zambezi Development Scheme: Cahora Bassa,’ A Journal of Opinion 4, no. 2 (1974): 47–54.

62 R. Higgs, ‘Regime uncertainty: why the great depression lasted so long and why prosperity resumed after the war,’ The Independent Review 1, no. 4 (Spring 1997): 568.

63 A.J. Evans, ‘The financial crisis in the United Kingdom: uncertainty, calculation, and error’ in The Oxford Handbook of Austrian Economics, eds. P.J. Boettke and C.J. Coyne (Oxford University Press, 2015).

64 Fabricius, ‘Inga dream again deferred.’

65 S. Lezhnev, ‘A Criminal State: Understanding and Countering Institutionalized Corruption and Violence in the Democratic Republic of Congo,’ 2016, https://enoughproject.org/files/A_Criminal_State_Enough_Oct2016_web.pdf.

66 H. Haider and B. Rohwerder, ‘Political Economy and Governance in the Democratic Republic of Congo (DRC), 2015, https://assets.publishing.service.gov.uk/media/57a08966e5274a31e0000070/HDQ1252.pdf.

67 World Bank, ‘International Development Association Project Appraisal Document on a Proposed Grant in the Amount of SDR 47.7 Million ($ 73.1 Million Equivalent) to the Democratic Republic of Congo for an Inga 3 Basse Chute and Mid-size Hydropower Development Technical Assistance Project,’ Energy Practice 2 (West and Central Africa), Sustainable Development Department: Africa Region, March 2014, documents.worldbank.org/curated/en/817971468245430631/pdf/774200REPLACEM0140Box382121B00OUO90.pdf.

68 Congo Research Group and Resource Matters, ‘Inga III: Kept in the Dark: How the World’s Largest Hydropower Site is Being Negotiated Behind Closed Doors,’ October 2019, http://congoresearchgroup.org/wp-content/uploads/2019/10/GEC_Resource-Matters_Inga-III_EN_final-2.pdf.

69 C. Gegout, ‘The West, Realism and intervention in the Democratic Republic of Congo (1996–2006), International Peacekeeping 16, no. 2 (2009): 231–44.

70 See B.A. Leeds, ‘Domestic political institutions, credible commitments, and international cooperation,’ American Journal of Political Science 43, no. 4 (1999): 979–1002; K.T. Gaubatz, ‘Democratic states and commitment in international relations,’ International Organizations 50, no. 1 (1996): 109–39, https://doi.org/10.1017/S0020818300001685; S. Fang and E. Owen, ‘International institutions and credible commitment of non-democracies,’ The Review of International Organizations 6, no. 2 (2011): 141–62, doi:10.1007/s11558-011-9102-0; B. A. Simmons, ‘International law and state behaviour: commitment and compliance in international monetary affairs,’ American Political Science Review 94, no. 4 (2000): 819–35, https://doi.org/10.2307/2586210; J.L. Weeks, ‘Autocratic audience costs: regime type and signaling resolve,’ International Organization 62, no. 1 (2008): 35–64, https://doi.org/10.1017/S0020818308080028.

71 M. Rånge and M. Sandberg, ‘Political institutions and regimes since 1600: a new historical data set,’ Journal of Interdisciplinary History XLVII, no. 4 (2017): 495–520.

72 B. A. Leeds, ‘Domestic political institutions, credible commitments, and international cooperation,’ American Journal of Political Science 43, no. 4 (1999): 979–1002.

73 Leeds, ‘Domestic political institutions, credible commitments, and international cooperation.’

74 S. Lohmann, ‘Why do Institutions Matter? An Audience-Cost Theory of Institutional Commitment,’ Governance 16, no. 1 (2003): 95–110.

75 Isaacman, ‘Domesticating a white elephant.’

76 Foreign Affairs, ‘Big Man in Congo: A Conversation with Joseph Kabila,’ 14 December 2018, https://www.foreignaffairs.com/interviews/2018-12-14/big-man-congo.

77 D. North, Institutions, institutional change, and economic performance (New York: Cambridge University Press, 1990).

78 A. Isaacman and B. Isaacman, Dams, Displacement, and the Delusion of Development: Cahora Bassa and its Legacies in Mozambique, 1965–2007 (Ohio: Ohio University Press, 2013).

79 S. Lezhnev, ‘A Criminal State: Understanding and Countering Institutionalized Corruption and Violence in the Democratic Republic of Congo,’ 2016, https://enoughproject.org/files/A_Criminal_State_Enough_Oct2016_web.pdf.

80 O.E. Williamson, ‘Comparative Economic Organization: The Analysis of Discrete Structural Alternatives,’ Administrative Science Quarterly 63 (1991): 269–96. This expression, while used in referring to Mobutu Seso Seko who was in office at the time, can equally be applied to Joseph Kabila, as established by several reports. See Lezhnev, A Criminal State.

81 Gulf news, ‘Construction of world’s largest dam in DR Congo could begin within months,’ 28 May 2016, https://gulfnews.com/world/africa/construction-of-worlds-largest-dam-in-dr-congo-could-begin-within-months-1.1836126

82 Gulf news, ‘Construction of world’s largest dam in DR Congo could begin within months.’

83 Personal interview, second respondent from Trans-Africa Project (TAP), September 2016.

84 Congo Research Group and Phuzumoya Consulting, ‘I Need You, I Don’t Need You: South Africa and Inga III,’ March 2020, http://congoresearchgroup.org/wp-content/uploads/2020/03/south-africa-inga-3-report-i-need-you-i-dont-need-you.pdf.

85 The Copperbelt is a region in Central Africa, located along the border between Zambia and the DRC housing huge deposits of copper. See J. Van Wilderode, H.A. El Desouky, M.A. Elburg, F. Vanhaecke, and P. Muchez, ‘Metal Sources for the Katanga Copperbelt Deposits (DRC)’: Insights from SR and ND Isotope Ratios,’ Geologica Belgica 17, no. 2 (2014): 137–47.

86 Personal interview, first respondent from Trans-Africa Project (TAP), September 2016.

87 World Bank, ‘Project Appraisal Document on a Proposed Loan in the Amount of $ 3,750 Million to Eskom Holdings Limited Guaranteed by Republic of South Africa for an Eskom Investment Support Project,’ Energy Group: Sustainable Development Department, Africa Region, March 2010,

88 Personal interview, first respondent from Trans-Africa Project (TAP), September 2016.

Additional information

Funding

This work was supported by Global Change Institute (GCI).

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