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Abstract
In recent years, an upturn in international commodity markets and the poor development performance of mineral rich African countries have catalysed the resurgence of debate and policy initiatives focused on extractivist models of growth in southern Africa. Beginning with debates on the ‘resource curse’, the East Asian developmental state and ‘developmental patrimonialism’, we extend the discussion to consider key unique challenges in contemporary African states: questions of finance and debt leverage, foreign capital domination and the problematic legacy of neoliberal structural adjustment. We consider the cases of Zambia and Zimbabwe, two countries heavily reliant on mining, in which current policy interventions have sought to anchor developmental state ambitions in the restructuring of the minerals sector. These cases illuminate the significance of current developmentalist politics in southern Africa, and underscore their specificity and constraints. Developmentalist projects are unlikely to succeed in the short term, but retain importance as emerging points of critique of neoliberal states in transition.
Acknowledgements
The authors would like to thank the Special Issue Guest Editors, Jesse Ovadia and Jewellord Nem Singh, and three anonymous reviewers for their very helpful feedback.
Notes
1. Routley, “Developmental States In Africa?”
2. UNECA, Economic Report on Africa 2011.
3. African Union, African Mining Vision.
4. Zenawi, “States and Markets.”
5. Kelsall, Business, Politics and the State in Africa; Kelsall and Booth, “Developmental Patrimonialism?”; Henley, Asia-Africa Development Divergence.
6. Edigheji, Constructing a Democratic Developmental State in South Africa; Ovadia, The Petro-Developmental State in Africa; Kanyenze et al., Towards Democratic Developmental States in Southern Africa.
7. For an closer mapping of resource nationalism see Wilson, “Understanding Resource Nationalism” and Andreasson, “Varieties of Resource Nationalism.”
8. ‘Southern Africa’ being represented by the countries of the Southern Africa Development Community; see Twerefou, “Mineral Exploitation, Environmental Sustainability,” 5.
9. See for example the doctoral dissertation of notable Zambian scholar-activist Charity Musamba, The Developmental State and Poverty Reduction in Africa.
10. Business Council of Zimbabwe, Indigenization and Economic Empowerment in Zimbabwe, 23.
11. Kanyenze et al., Towards Democratic Developmental States in Southern Africa.
12. Lijphart, “Comparative Politics and the Comparative Method,” 692.
13. Auty, Sustaining Development in Mineral Economies; Sachs and Warner, “The Curse of Natural Resources.”
14. Rosales, “Going Underground”; Burchardt and Dietz, “(Neo-)Extractivism.”
15. Morris, Kaplinsky, and Caplan, “One Thing Leads to Another.”
16. Ovadia, The Petro-Developmental State in Africa.
17. Mosley, Fiscal Policy and the Natural Resources Curse.
18. Johnson, MITI and the Japanese Miracle; Chang, “How to 'Do' a Developmental State.”
19. Evans, Embedded Autonomy.
20. Amsden, The Rise of “the Rest”; Chibber, Locked in Place.
21. Sindzingre, “Financing the Developmental State.”
22. Taylor, Business and the State in Southern Africa; Handley, Business and the State in Africa.
23. Saul and Leys, “Sub-Saharan Africa in Global Capitalism.”
24. Arrighi, “The African Crisis.”
25. Kelsall, Business, Politics and the State in Africa; Kelsall and Booth, “Developmental Patrimonialism?”; Henley, Asia-Africa Development Divergence.
26. Mkandawire, “Neopatrimonialism and the Political Economy of Economic Performance in Africa,” 596–7.
27. Mkandawire, “Aid, Accountability, and Democracy in Africa.”
28. Mkandawire, "From Maladjusted States to Democratic Developmental States in Africa.”
29. Taylor, “Ditiro Tsa Ditlhabololo”; Samatar, An African Miracle.
30. Taylor, “Botswana as a Developmental State”; Samatar, An African Miracle.
31. Hillbom “Botswana: A Development-Orientated Gate-Keeping State”; Taylor, “Botswana as a ‘Development-Orientated Gate-Keeping State’”; Hillbom, “Botswana: A Response to Ian Taylor.”
32. Hillbom “Botswana: A Development-Orientated Gate-Keeping State”; Hillbom, “Diamonds or Development?”
33. Cooper, Africa Since 1940.
34. Brautigam, The Dragon’s Gift.
35. Arrighi, Adam Smith in Beijing, 384–5.
36. Ayers, “Beyond, Myths, Lies and Stereotypes.”
37. Martin, “Africa’s Futures,” 351.
38. Ayers, “Beyond, Myths, Lies and Stereotypes,” 230–2.
39. Carmody, “An Asian Economic Recovery in Africa?,” 1204.
40. BDO, Seventh Report of the ZEITI.
41. Conditions stipulated included reductions in corporate taxation, duty-free capital imports, lower royalties and extension of loss carry-forward provisions, among others. See Lungu, “Copper Mining Agreements in Zambia.”
42. Fraser and Lungu, For Whom the Wind Falls?
43. Caramento, Interview with Charles Muchimba, Director of Research, Mineworkers Union of Zambia (MUZ), 10 July 2015; Caramento, Interview with Branch Officials MUZ Nkana Branch, 5 October 2015; Interview with Branch Officials of MUZ Mpatamatu and Roan Branches, 8 October 2015.
44. Caramento, Interview with a member of Mwanawasa’s Cabinet, 17 June 2015.
45. This is the view of David Manley, a former ZRA economist, http://www.resourcegovernance.org/blog/zambias-new-mining-tax-regime-may-fail-test-time.
46. Unless otherwise stated, all figures are in US dollars.
47. Kar and Frietas, Illicit Financial Flows from Developing Countries, 2001–2010.
48. Zambia Revenue Authority, Mineral Value Chain Monitoring Project (MVCMP) Report, 11.
49. ICMM, Enhancing Mining’s Contribution to the Zambian Economy and Society, 66.
50. Fessehaie, Rustomjee, and Kaziboni, “Can Mining Promote Industrialization?”
51. Kragelund, “The Making of Local Content Policies,” 63.
52. Caramento, Interview with Roseta Mwape, President of Zambian Association of Manufacturers and Managing Director of ZAMEFA, 11 August 2015.
53. Zambia Revenue Authority, Mineral Value Chain Monitoring Project (MVCMP) Report, 16–17.
54. Caramento, Interview with Hon. Wylbur Simuusa, former Minister of Mines, 14 October 2015.
55. Hakumona, Survey and Analysis of Demand; Fessehaie, Rustomjee, and Kaziboni, “Can Mining Promote Industrialization?,” 15–17.
56. Haglund, Policy Evolution and Organisational Learning in Zambia’s Mining Sector; World Bank, Zambia Mining Investment and Governance Review.
57. Mineworkers Union of Zambia data provided by Webby Mushota, 28 September 2015.
58. Caramento, Interview with Mooya Lumamba, Director of Mines, Ministry of Mines, 30 June 2015.
59. Caramento, Interview with Gilbert Kalyandu, Embassy of Norway in Zambia, 9 June 2015.
60. World Bank, Zambia Mining Investment and Governance Review, 13.
61. Both the Mines and Mineral Development Bills of 2008 and 2015 included provisions giving preference to ‘materials and products made in Zambia’ and ‘contractors, suppliers and service agencies located in Zambia and owned by citizens or citizen-owned companies’; Government of the Republic of Zambia (GRZ), “Mines and Minerals Development Act 2008,” 13:1; GRZ, “Mines and Minerals Development Act 2015,” 20:1.
62. BDO, Seventh Report of the ZEITI.
63. Fraser, “Zambia: Back to the Future?,” 308.
64. Simpasa et al., Capturing Mineral Revenues in Zambia.
65. During this period, the share of the top five minerals rose from 24 to 49% of exports, and in 2014 to more than 90%; Hawkins, The Mining Sector in Zimbabwe, 1. For 2014 figure, see Nu Times Innovations, State of the Mining Industry Survey, 9.
66. Kanyenze et al., Beyond the Enclave.
67. For a detailed account of evolving elite rent-seeking and diminishing developmental outcomes, see Dawson and Kelsall, “Anti-Developmental Patrimonialism in Zimbabwe.”
68. Some estimated that 90% of mining was under foreign ownership in 1981, a ratio of foreign concentration far higher than other productive subsectors; Davies and Burdette, "The Zimbabwe Economy," 78.
69. Jourdan, "The Non-ferrous Metal Industry in Zimbabwe.”
70. Notably ‘Special Mining Licences’, enacted in 1994 for projects over $100 million, which provided for long-term minerals leases, lower rates of corporate tax, the holding of offshore operational accounts and other incentives; Mupamhadzi, Mlambo, and Kwesu, “A Critical Review of the Mining Fiscal Regime in Zimbabwe.”
71. BusinessMap, Mining in SADC.
72. Kanyenze et al., Beyond the Enclave, 178.
73. Saunders, Interview with Lyman Mlambo, Director of Institute of Mining Research, University of Zimbabwe, 13 March 2014.
74. Saunders, “Crisis, Capital, Compromise.”
75. Matyszak, Everything You Ever Wanted to Know.
76. Matyszak, CSOTs in Zimbabwe’s Mining Sector; Mawowa, Community Share Ownership Trusts; Parliament of Zimbabwe, Thematic Committee on Indigenisation and Empowerment, First Report; “Govt to initiate employee share ownership schemes,” The Herald, October 19, 2011.
77. Matyszak, Everything You Wanted To Know.
78. Matyszak, Racketeering by Regulation; Matyszak, Digging up the Truth.
79. Government of Zimbabwe, Indigenisation and Economic Empowerment Act. Specific IEE related regulations for mining were introduced in 2011; see, General Notice 114 of 2011 (GN 114; Government of Zimbabwe, “General Notice 114 of 2011.”
80. Saunders and Nyamunda, Facets of Power.
81. Partnership Africa Canada, Reap What You Sow. One of Africa’s largest sources of alluvial diamonds, in 2009 Marange represented as much as 30% of the global rough diamond supply.
82. Partnership Africa Canada, Diamonds and Clubs; Towriss, Buying Loyalty; Global Witness, Diamonds: A good deal for Zimbabwe?; Sibanda and Makore, Tracking the Trends; Sibanda, Analysis of ZMDC’s Audited Financial Statements.
83. For example, the Diamond Revenue Bill of 2011 (promoted by the Ministry of Finance) and amendments to the Precious Stones Trade Act (developed by the mining ministry); Dhliwayo and Mtisi, Towards the Development of a Diamond Act in Zimbabwe.
84. Biti, “2011 Mid-Year Fiscal Policy Statement,” 30–1; Timba, “Statement Made at the Reception for the EITI Conference”; “Anjin remits US$30 m to fiscus,” The Herald, 28 June 2012.
85. “The President @92,” interview with Robert Mugabe broadcast by Zimbabwe Broadcasting Corporation, 3 March 2016.
86. Parliament of Zimbabwe, “First Report on Diamond Mining.”
87. Business Council of Zimbabwe, Indigenisation and Economic Empowerment, xxxvi.
88. Chamber of Mines, “Issues of Concern”; Chamber of Mines, “Untitled Discussion Document”; Deloitte Zimbabwe, Zimbabwe Mining Tax Study; Mupamhadzi, Mlambo, and Kwesu, “A Critical Review of the Mining Fiscal Regime.” Key civil society organisations broadly agreed; see, ZELA, An Outline of the Mining Taxation Regime.
89. Hawkins, The Mining Sector in Zimbabwe; Jourdan et al., Mining Sector Policy Study; McMahon et al., “Zimbabwe: From Economic Rebound to Sustained Growth.”
90. Government of Zimbabwe, Draft Minerals Policy.
91. Government of Zimbabwe, Mines and Minerals Amendment Bill, 2010 (Draft); Government of Zimbabwe, Zimbabwe Diamond Policy; Hawkins, Mining Policy in Zimbabwe; Mtisi, “Civil Society Perspectives on the Draft Minerals Policy”; CNRG, An Analysis of Zimbabwe’s Diamond Policy.
92. The ‘Indigenisation Compliance and Empowerment Levy’ offered scaled rebates of levies for investments with empowerment and indigenisation impacts; Government of Zimbabwe, “Frameworks, Procedures and Guidelines for Implementing the Indigenisation and Economic Empowerment Act.”
93. In 2009 mining accounted for more than 93% of approved investment, and retained top spot in 2011–2013 (2011: 55%; 2012: 74%; 2013: 31%); see Zimbabwe Investment Authority, Annual Reports.