Implementation of Order 77 relating to the development of Africa

Report | Doc. 641 | 17 April 1957

Author(s):

Secretary General

Thesaurus

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1. By Order 77, adopted by the Standing Committee on 9th July 1955, the Secretary- General was instructed to set up a group of independent experts, both to re-examine the measures originally advocated in the Strasbourg Plan and to submit any new proposals likely to encourage the economic and social development of Africa. The group of experts set up in accordance with these instructions agreed to request the Secretary-General to submit an interim report to the Consultative Assembly.

2. The group held its first meeting from 19th to 22nd November 1956, at the headquarters of the Council of Europe. The following experts were present : Mr. 0. Arikpo (Nigeria), M. L. Bourcier de Carbon (France), M. C. Carbonnelle (Belgium), Mr. Arthur Gaitskell, c. M. G., (United Kingdom), Mr. Tshekedi Khama (Bechuanaland Protectorate), Dr. Paul Rykens (Netherlands). M. Ninine (French Cameroons), member of the group, was unable to attend.

3. At the opening of the meeting certain objections were raised by the African experts to the effect that Order 77 has, in certain important respects, been overtaken b y political and constitutional developments since July 1955, when it was adopted and that, in general, the geographical scope of the Order is too limited. This question is dealt with in detail in Part II of this report.

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4. The Secretariat had prepared a working paper to serve as an introduction to the discussions of the experts. In undertaking this preparatory work the Secretariat had received the benefit of informal consultations with the members from the European countries.

5. The group agreed to accept this paper as a basis for its work and at the end of the meeting produced a revised text of the paper as a Preliminary Statement, laying down in broad outline the object, the governing principles and the methods of implementation of a co-operative effort by European and African countries for the economic and social development of Africa. This Statement, which is reproduced as Appendix I, was unanimously accepted by all the experts present.

6. It was decided to hold a second meeting of the group towards the end of April 1957, to examine the appropriate methods of application to the African and European countries of the measures outlined in the Preliminary Statement. This Statement will be supplemented by notes on specific subjects, which will be prepared in the meantime by certain members of the group.

7. The experts considered it essential to extend the African and European representation in the group in order to ensure that such an examination could be adequately carried out. It was accordingly agreed that the Secretary- General should invite, in addition to the present members of the group, experts from the following African countries : Belgian Congo, Central African Federation, French Equatorial Africa, French West Africa, Gold Coast, Italian Somaliland, Kenya, Morocco, Sudan, Tunisia and Uganda; as well as from the following European countries : Federal Republic of Germany, Italy and one Scandinavian country.

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8. It was the unanimous opinion of the members of the group that the wording of Order 77 suggested that experts would be invited only from African countries which are in a dependent position with regard to certain European countries, and that they could not be invited from countries such as Tunisia, Morocco and the Sudan. This would have the result of restricting very considerably the area to be covered by the studies of the group, whereas it was agreed that, if these studies are to be effective, it should be made possible to enlarge the membership of the group to include experts from all the African countries likely to be interested.

9. Moreover, the members of the group were of the unanimous opinion that it was essential to avoid the impression that their work would be governed b y directives of a political character. The purpose of their studies is to encourage the economic and social development of Africa, and it is evident that any proposals to be made in that sense will have to take into account current political developments in the African countries concerned, in respect of which the members of the group are not called upon to express an opinion. They accordingly recommended that no specific mention should be made in their terms of reference of expressions such as " a Eurafrican Community " , which have acquired a special political significance

10. The group, consequently, found it necessary to propose a revised text of Order 77 (reproduced in Appendix II) and requested the Secretary-General to submit this text to the Consultative Assembly [(1) The Standing Committee, on 11th January 1957, accepted the proposed modifications to Order 77 (Order 105).]

11. In complying with this request the Secretary-General feels it his duty to emphasise that it was the convinced opinion of the expert group that the continuation of their work required that Order 77 be revised on the lines proposed.

Appendix 1 APPENDIX

Preliminary Statement agreed by the Study Group at its first meeting held in Strasbourg, 19th - 22nd November 1956

O B J E CT

1. The continent of Africa has many underdeveloped areas. Their adequate development at a satisfactory pace, and the improvement of African living conditions, will require vastly more capital and technical skill than can at present be found in Africa itself or supplied from the individual countries having responsibilities in Africa

2. The fifteen member countries of the Council of Europe have between them financial and technical resources which could contribute greatly towards the satisfaction of these requirements.

3. The object of the expert group will be to examine how far a joint effort by Europeans and Africans can lead to the African requirements being met by measures supplementing though not necessarily superseding the work already being done. It is, of course, fully appreciated that such a joint effort will in the long run benefit the economic and social interests of the non-African peoples also.

4. The scope of the present study is primarily concerned with the advantages of a joint effort to be made by the African countries and member countries of the Council of Europe. It is not intended thereby to imply the exclusion of other countries from this joint effort or of methods of assistance and co-operation within the framework of the United Nations and related international organisations. On the contrary, the closest association should be established with the work in this field of other countries and organisations.

PRINCIPLES

1. The following should be considered to be the basic principles underlying a joint effort:

a Whilst such a joint effort should be to the advantage both of Europe and of Africa, it should be guided by the fundamental consideration that in the long run it is the increase in the standard of living of the peoples of Africa which must provide a main yardstick for measuring its success.

b African economic development up to the present time has in large measure taken place under non-African auspices. Future economic development, both of existing and of new activities, should promote dynamic indigenous economies, inter alia by encouraging the African peoples to share in the management and ownership of such economies

c The effects upon local society of any plans for development should be given as much consideration as profitability and economic efficiency, so as to promote the harmonious adaptation of social structures.

d Although the terms of reference of the group are directed to economic and social development, political conditions in any country will affect and be affected by such development and must be taken into consideration.

e Co-operation on a basis of equality between the African and the European countries is fundamental to the planning concerned; while the present initiative has come from the European side, views, requirements and preferences should in the future be the subject of joint consultations between Europeans and Africans.

IMPLEMENTATION

The following appear to be some of the main practical considerations in the implementation of any joint effort :

1.

a While the need for immediate concrete and co-ordinated action is recognised, the economic and social development of Africa is necessarily a long-term problem. An initial planning period might be about five years. Any much shorter period would not be effective, and the rapid changes in the modern economic and political scene require considerable flexibility and periodical re-evaluation. Basic principles will, however, remain and any plan can be extended or modified for a further period.

b The social character of development programmes requires the integration of different kinds of investment;

1.2.1 Non-paying levels, e. g. social investment in health, education, the extension of technical training in Europe and in Africa, research, pilot-schemes, etc.

1.2.2 Infrastructure investment, e. g. in transport and communications

1.2.3 Paying levels,

1.2.3.1 production and processing of crops and deveopment of local small-scale industry, handicrafts and trade;

1.2.3.2 other industrial and mining development These levels shade into one another and, for example, infrastructure and social investment will often form part of commercial undertakings.

c UAn immediate problem is to make proposals which will induce countries having no responsibilities in Africa to join with metropolitan countries having such responsibilities in initiating broad development programmes that involve more than normal commercial considerations. Such proposals should be so framed as to be equally applicable and practicable when African territories become independent and the metropolitan countries are thereby released from their present position of responsibility. An important argument is that a joint development effort should help to promote stability both in Africa and in Europe.

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a The financial resources directly available in the individual European countries are inadequate, and international finance on suitable terms is required for investment on all levels.

b A banking institution by its nature supplies funds only on a commercial basis. This applies to the International Bank for Reconstruction and Development and would also apply to the proposed European Investment Bank (see The Strasbourg Plan, Ch. V). The establishment of an Investment Fund should therefore bé considered in order to act as a central organisation for investment on a nonpaying level [(2) It has been suggested that this Fund might be fed, inter alia, according to two indices : (i) all Western European countries and the African countries concerned to supply basic contributions to the Investment Fund in certain proportions and on the terms to be agreed on in respect of each country; (ii) all Western European countries trading with the African countries to supply annually to the Fund capital amounts representing agreed percentages of their total trado (import plus export) with tho African countries; (iii) the efforts made individually by the countries which have overseas responsibilities to bo taken into consideration in estimating the contributions to be made to the Fund (under both (i) and (ii) above).]Such an Investment Fund would be additional to a European Investment Bank—and together they would supplement but not replace the existing sources of finance for African development. Although the Investment Bank and the Investment Fund would each have its own specific field of financial responsibility, it is essential that their activities be closely co-ordinated.

c In order to attract capital on the paying level, a favourable climate and satisfactory conditions in Africa would have to be assured. Having regard to the rapid changes in the economic and political situation it is essential that the Investment Bank and the Investment Fund should take an active part in the development of these conditions.

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a An examination should be made of the measures whereby co-operation among European and African countries could promote domestic savings which are basic to the expansion of African economies.

b The question should be examined whether the stabilisation of export prices through, e. g. long-term contracts, is to be preferred to an open auction system with consequent fluctuating export prices; so also should the question of the stabilisation of producers' incomes by marketing boards or other mechanisms.

c Development of facilities for technical training of Africans both in Europe and in Africa.

d Immigration policy.

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a The possibility of liberalising intra- African trade should be examined as a complementary exercise, although it is realised that this trade, at present comparatively small, may well remain limited in volume for a considerable time to come.

b Consideration should be given to the appropriate methods of linking any plans for African development with the proposed establishment of a Customs Union and/or of a Free Trade Area.

c The possibility of secondary preferences and the opinions set out on that subject in the Strasbourg Plan (see Appendix B thereto) and those expressed by the 0. E. E. C. (Documents 231 and 259) should be re-examined in relation to the proposals for the establishment of a Common Market (a Customs Union and/or Free Trade Area) (See Appendix D).

5.

5.1 One or more Consultative Committees (as in the Colombo Plan) or similar bodies composed of experts from Africa and Europe could be set up to study requirements and to formulate methods of European assistance.

5.2 The activities of all other organisations in this sphere should be examined with the object of preventing overlapping of effort.

Appendix 2 APPENDIX II

Proposed revised text of Order No. 77 [(3) This draft Order was agreed to by the Standing Committee on 11th January and became Order No. 105]

The Standing Committee,

Considering that the evolution of the political situation in Africa necessitates the revision of its Order 77 adopted in July 1955

Accordingly cancels the said Order and in substitution therefor instructs the Secretary- General to set up a group of independent experts, including nationals of member countries of the Council of Europe (whether or not they have responsibilities in Africa) and of African countries likely to be interested in the study of ways and means of promoting the economic and social development of Africa.

The group of experts should submit proposals designed to encourage and accelerate the economic and social development of Africa and to raise the standard of living of the African peoples, in the interests of the prosperi ty both of Africa and Europe, through cooperation on an equal footing between the African countries and the member countries of the Council of Europe. In that connection, the group should re-examine the measures advocated in the Strasbourg Plan and in the reply of the Assembly to the comments made by 0 . E. E. C. on that Plan.