|
Zaire Zairianization
Economic nationalism was a common theme throughout
postindependence Africa, frequently manifesting itself in
the
expulsion of foreign merchants and/or expropriation of
foreign
assets. For Zaire, economic autonomy and political
independence
were seen as dependent on each other. Zairianization, the
expropriation plan announced in November 1973, represented
both a
combination of the nationalistic impulse for economic
independence
and personal aggrandizement for President Mobutu, who
practiced a
form of patrimonialism. Zairianization created a vast pool
of goods
and money for personal distribution to loyal family
members and the
political class composed mainly of government and army
officials.
It was the final and clearest demonstration that political
power
was the primary means of acquiring wealth. The
entrepreneurial risk
and initiative in building up business enterprises
required to
develop an infrastructure for economic development were
thus not
characteristic of the Zairian elite that came to dominate
the
country's economy.
Mobutu's announcement on November 30, 1973, before the
National
Legislative Council, the country's parliament, of his
intention to
seize and redistribute the nation's foreign businesses was
a
demonstration of his total rule over the country. The
wisdom,
timeliness, or practicality of the nationalization
measures were
not discussed, much less debated. There seems to have been
no prior
consultation with anyone, including the political elite.
Expropriated property consisted of commercial
buildings, light
industry, and agricultural holdings including a vast
network of
plantations, much of which was acquired by the president
and held
in partnership with Belgian interests. Administratively,
expropriation was managed by various government
ministries. Most
recipients were ministers, members of the party's
political bureau,
and top army officers. Smaller properties were allocated
to local
notables. The term used to describe someone who benefited
from the
distribution of the spoils was aquéreur, or
acquirer.
In practical terms, Zairianization represented a
financial
windfall for the country's political elite, which was to
be
allocated businesses, and which brushed aside any economic
risks
involved in such a takeover. On the level of rhetoric, on
the other
hand, Mobutu spoke of Zairianization as promoting radical
economic
nationalism, and in helping the lot of the country's
masses.
Zairianization was to promote rural development by
creating a
landed gentry to induce greater investment in the
countryside.
Thus, the ruling elite transformed a mythology of state
autonomy
and economic sovereignty into a tool for its own
enrichment.
Ultimately, Zairianization resulted in asset stripping,
liquidation of inventory, and capital flight. In some
instances,
single enterprises were allocated to more than one
individual.
Integrated agro-industrial enterprises were broken up.
Many of the
new owners had neither the expertise nor the interest to
manage and
to maintain their newly acquired holdings. Many were
unable to
obtain credit and had no commercial experience. Their
first impulse
was frequently to dispose of liquid assets as quickly as
possible
and then to abandon the properties and enterprises to
ruin.
Throughout 1974 this lack of interest and expertise led to
a
devastating dislocation of the commercial infrastructure.
The
adverse effects were especially evident in small
businesses where
the new owners often simply sold the goods and then left.
Shortages
of food and consumer goods became common countrywide.
The final blow to Mobutu's development strategy was the
collapse in the price of copper in 1974. The price paid
for copper
in world markets dropped from US$0.64 per kilogram to
US$0.24 per
kilogram between 1974 and 1975. Zaire's trade balance
deteriorated
further when its bill for imported oil reached US$200
million, or
20 percent of its foreign-exchange earnings. The continued
sharp
fall in commodity prices brought export receipts and
government
revenues down with a crash and produced a decline in the
overall
standard of living.
After only twelve months, Zairianization was
acknowledged to be
a failure, and enterprises that had been given to Zairians
were
nationalized. The economy continued to slide, however, and
in
December 1974, under a plan called
retrocession
(see Glossary),
former owners were invited to return to Zaire and reclaim
a
proportion of their businesses. In practice, the
requirement that
Zairians retain a sizable stake in such businesses was
largely
ignored for those expatriates who did return.
Data as of December 1993
|
