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RESEARCH ON NAMIBIA’S DEPENDENCY ON SOUTH AFRICA
Abstract
Namibia got independence from South Africa’s apartheid dominance after a great struggle of organisation such as South West National Union and South West Africa People’s Organization. Objective of the study is to analyses the dependency of Namibia economy on South Africa since independence. Dependency between two nations are analysed through descriptive and empirical way. Through empirical analysis it revealed that Namibia has largest trade with South Africa compared other top 4 nations. There exists a dominance of South Africa agricultural trade between the two nations. South Africa invested around $2201 million, which accounted for 27 per cent of total Foreign Direct Investment in 2017. From this analysis, we can say that there was high trade and investment dominance of South Africa during independence. Policies framed by Namibia government were supports to raise FDI (Foreign Direct Investment) inflow of South Africa in future. Increase in FDI inflow will lead to outflow of money in the form of return of investment from Namibia to South Africa. By utilising Namibian resources in the form investment, South African economy develops, on the other end Namibia growth will be affected through outflow of money. This indicates there is an existence of Namibia dependency on South Africa.
Table of Contents
Chapter 1 Introduction 1
1.1 Background of the study 1
1.2 Research Rationale 2
1.3 Significance of the Research 3
1.4 Dependency theory 7
1.5 Research Aim 8
1.6 Research objectives 8
1.7 Research questions 8
1.8 Summary 8
Chapter 2 Literature review 10
2.1 Sunday and Ikungathe Dynamics of Foreign Aid and The Dependency Theory: The Nigeria’s Experience 10
2.2 Hein Trade Strategy and the Dependency Hypothesis: A Comparison of Policy, Foreign Investment, and Economic Growth in Latin America and East Asia 12
2.3 Hengari and Saunders, Unequal but intertwined: Namibia’s bilateral relationship with South Africa, 15
2.4 Emongor and Kirsten The impact of South African supermarkets on agricultural development in the SADC: a case study in Zambia, Namibia and Botswana 18
2.5 Saunders South Africa and Namibia: Aspects of a relationship, historical and contemporary. 20
2.6 Silva Regional foreign policy of Namibia: the agency of a secondary power 21
2.7 Graham Evans A New Small State with a Powerful Neighbour: Namibia/South Africa Relations since Independence 22
Chapter 3 Methodology 23
3.1 Research Philosophy 24
3.2 Research Approach 24
3.3 Research Design 25
3.4 Data collection methods 25
3.5 Data analysis 25
3.6 Ethical Consideration 26
Chapter 4 Subjective analysis of interdependence between Namibia and South Africa 27
4.1 Regional and Preferential Trade Agreement: 27
Chapter 5: Graphical Analysis 30
5.1 Namibia Trade at a glance 30
5.2 Agriculture market 33
5.3 Foreign direct investment in Namibia 34
5.4 Statistics on Namibia Foreign direct investment 35
Chapter 6 Conclusion 36
Bibliography 38
Chapter 1 Introduction
1.1 Background of the study
The occupation of Namibia by South Africa had begun when the United Kingdom delegated the territory administration to the Union South Africa, which was mandated to obtain the legation nation after South African troops in 1915 conquered their territory. Before the formation of South West Africa, this was part of the German colonial empire and it occupied the territory at first in 1884. After First World War colonial empire of German assured the dissolution of the Turkish-Ottoman and German empires and the establishment of the mandated system in the League of Nation. This sought to guarantee assistance in the administration territories, which should be done in favour of the local population .Colonialism came to an end at the end of the Second World War. The Government of South Africa assured the Namibian government to incorporate its territory and its population as South Africa’s fifth province. As Namibia was treated as South Africa’s fifth province, Namibia was included as a part of the Common Monetary Area and South Africa custom union. There was a persistence of international clash until the end of 1980, because the UN opposed the implied colonialism of South Africa and materialized in the territorial expansion. Cold war between South Africa and other nations led to pressure on domestic and international independence from South Africa. Namibia was located in the South Atlantic and served as a source of diamonds and uranium. This led to the importance of Walvis Bay. This was used as last protective belt against the presence of revisionist states in the South African boundaries after 1975 and 1980. Due to regional policy configuration an agreement was signed in 1988, the Tripartite Accord of New York, South Africa accepted Namibia's independence. Independence of Namibia was prepared in 1989 and accomplished in 1990.
Namibia is a small state compared to South Africa. Population of South Africa is 20 times the Namibia’s population. Economy of Namibia is smaller than South Africa, because the Namibian economy is only based on the mining industry whereas the South Africa economy is mostly industrialized one. Namibia shares a system of common currency with Swaziland and Lesotho. South Africa ruled Namibia for seventy-five years until 1990. Relationship between Namibia and South Africa after independence strongly influenced by the relationship between African National Congress (ANC) and South West Africa People’s Organization (SWAPO). Post independence Namibia distanced from ANC, because African National Congress only represent the interest of Africans in South Africa. At the time of independence on 21 March 1990, Namibia faced an opportunity constraint and it faced a constraint in foreign policy domain. Primary objective of Namibia is to build territorial integrity and domestic stability after obtaining independence from South Africa. Before independence, the policies of Namibia depended on South Africa policies, because Namibia was ruled by South Africa from 1915 to, March 1990. Much time was spent on Namibia’s independence issue in UN New York.
1.2 Research Rationale
The research rationale which has been used for the course of the solving of the disputes and the problems of the Namibia. The need for the conducting of the research is solving of the international conflicts and sending of the petitions to the Geneva in the League of Nations. This rational has been helpful in finding the particular and exact a researches regarding the Namibia and the world politics'. The rational should use the library researches and the descriptive researches in order to reach a suitable conclusion. The passing of the petitions is main source of information's. for the construction of the researches. The current research brings into focus the issue of political and passive economic dominance of South Africa over a smaller and less powerful neighbouring country, Namibia. The dominance tends to become an issue because, it poses a threat to prosperity of Namibia, undermines global economic development initiatives and indulges racial and ethnicity-based biased in judiciary and economic development. The current research makes the discussed issue even more worthy in current context, as the global economy and international diplomacy is trying to achieve mutual goals, investing in a bright and well-aligned social and economic development. The current research would help us in assessing the context, reasons and probable solution to the issues generated by the dominance of the South Africans over the politics and economy of Namibia.
The research rational thereby concludes that it is a crucial part of the study which has been used for the dealings with Namibia. The rational here justifies the significance of the issue of the political and the powerful dominances which has been related to the economy, civic and the leaderships issues and qualities. The issues which has been standing as a threat to the region of the Namibia has been the focal point if the discussion in the research rationale. Therefore, rationale here gather the accumulation of the information's for the purpose conduct of the historical researches with regard to Namibia.
1.3 Significance of the Research
The significance of the research is how the petitions has been signed by the United Nations for making the United Nations a part of the South Africa after the great second world war. The importance lies in the factors how several f the reputed and the renowned person of the world politics has been lending tier choices and support for the help of the Namibia. This research will be improving the services and the treatments which has been used for the promotion of the world politics for the present and future generations. It has been seen that people who withdrew the petitions to the united nation in late 1950 from the parliament became a prominent member in South West Africa Organization and Ovamboland People’s Organization.
Herero took the lead in petitioning the newly established United Nation against the incorporation of Namibia territory into South Africa after the Second World War. The significance of the research lies in the fact that that in the year 1957 how Namibia and its eventual incorporation has been primarily met with the specific researches and analysis. It will helpful for the audience as well as the researchers in understanding that how Chief Kuaka and Karina has been in different opinions with regard to the Namibia. The amount of contributions which has been made for the protection of Namibia should be highlighted from these aspect of the study. Therefore, the research has been pivotal for the study and perfect analysis can equally be given through it.
Toivo asked the United Nation to terminate the mandate and take over the administration of the territory in 1958. Kozonguizi elected as a president of the South West National Union. Both SWAPO and SWANO members actively engaged in internationalization of South West Africa through their diplomacy. SWAPO in 1962 opened a mission in Cairo, Egypt getting funds and assistance from Egyptian government. SWANU became a part of the South African united front, which also had an office in Cairo. After the collapse of South African United front SWANU established its own office and received funding from the government of Egypt. Competition between South West National Union and South West Africa People’s Organization gradually increased. SWAPO won this competition because its international diplomacy was taken more seriously compared to SWANU. South West Africa People’s Organization became a dominant Namibian nationalist organization because SWANO could not overcome SWAPO and began to fall. SWAPO managed to get support from united nation and Organization of African Unity. International diplomacy of South West Africa People’s Organization begun in 1964, SWAPO appointed Hage Geingob as a chief representative to America and United Nation. In order to file petition at UN Hidipo Hamutenya Geingob and Theo Ben Gurirab took off from their studies, the informal. The Namibia has been seen as the most important country which has been in the problem of the disputes for acquiring it position in the country. The UN general Assembly has dedicated the use of the council in order for the South West Africa for dealing with crisis and the prevailing therefore establishing peace with country. SWAPO received funding from the UN from 1974. The organization gained popular status as the first liberation movement in South Africa to acquire and Permanent observer. This status led the organization to participate in key discussion at the UN General Assembly session.
In 1963, the organization opened its office in Algeria and in following, it opened, an office in Zambia. Nickey Iyambo appointed as chief representative to the Nordic countries in SWAPO. He faced a difficulty in justifying the adoption of armed struggle to people who are not favor for the violence. Especially in Nordic, countries and Sweden gave wide range support for Namibian representatives to campaign to remove the dominance of South Africa from South West Africa. The organization opened its office in London, which is an important mission. Britain became home to most effective solidarity organization with a succession of SWAPO diplomats.
In order to gain further support from international community for Namibia liberation struggle SWAPO established its Department of Foreign Affairs, which led to operate more missions in Africa and Europe. During cold war, SWAPO maintained a balance between the act of interaction between west and socialist countries. The organization developed a close ties between Nujoma and communist party of Soviet Union. It established a relation with the Commonwealth in 1987 and opened a mission in New Delhi during 1982.
In order to gain further support from international community for Namibia liberation struggle SWAPO established its Department of Foreign Affairs, which led to operate more missions in Africa and Europe. During cold war, SWAPO maintained a balance between the act of interaction between west and socialist countries. The organization developed a close ties between Nujoma and communist party of Soviet Union. It established a relationship with the Commonwealth in 1987 and opened a mission in New Delhi during 1982. Fourth summit of Non Alignment Movement (NAM) held in 1973 accepted the South West African Organization as the genuine representative of Namibian people and the organization became its full member in 1978.The issue of Namibian was first bring to international attention at OAU and Name before the issue presented in UN general assembly (Saunders 2014, Page 27–35).
Post independence the bilateral relation with South Africa was based on two dominant facts they are Namibia tangled with Africa very closely and the neighbour of Namibia ruled this nation from 1915 to 1990 which is 75 years. The relation of South Africa with Namibia began to isolate in large part because it finally agreed in 1988, due to the pressure from the United Nations, to free Namibia from South Africa’s dominancy. Since 1994, the relationship between two countries is not very close, but there exists a partial relationship between the two liberation movements, which became the ruling parties in two countries.
After Mandela has been recognized as the president of South Africa, Namibia established a formal diplomatic relation with this country. Openness of Namibia was mainly focused on economic development. These two countries did not have the same perception about their relationship between them. From an economic point of view, the existence of the relationship between the two nations is a large dependence of Namibia on South Africa and a bilateral relationship is strategic one for Namibia from the perspective of both fiscal and trade. South Africa plays an important role in world economy and its transition from apartheid to democracy helped the nation to be a part of member in world’s leading international grouping .This nation membership includes in Group of twenty nation (G-20) in recent years and in the group of emerging market such as China, India, Russia and Brazil. Africa has been served as the Non permanent member of the whole of the United Nations Council since the year 2007 to 2009. Economy of the South Africa has been regarded as the double in size as compared to nations of the South Africa. Therefore, it has been regarded by the government that South Africa should not be considering Namibia to perform a kind of role in leadership in the entire world. It has been agreed revenue sharing formula of South African Custom Union in 2002, which took several years to negotiate among the five member states. Portion revenue sharing received from South Africa Custom union by Namibia is varied between 25 per cent and 37 per cent for the last decade of 20th century and first of 21st century.
In 2000, formulation of a mutual defence pact between DRC, Zimbabwe, Angola and Namibia indicates that the Namibia wants to pursue its own independent foreign policy, which is not necessarily driven by economic consideration, but by its assessments of risk in the regional opportunities. Cooperation between countries occurred in the domain of security, which includes maritime security. The productions and the manufacture of the goods which has been contributing to the economy has been proposed by the dependency theory and includes money laundering, public safety and transnational crime. It has been seen that Namibia has been working hard for the settlement of the disputes between them which can increase the cooperation for promotional dealings of society. It is also discuss about the transport, science and technology, spatial development initiatives marine and costal management, energy m trans-frontier parks and regional integration. Most important initiatives to promote regional integration between South Africa and Namibia are The Trans-Kunene Corridor to link the DRC, Namibia, Angola and South Africa and The Trans-Kalahari Railway Line, which is to link Namibia, Botswana and South Africa.
Relations between South Africa and Namibia became closer after Sam Nujoma, Hifikepunye Pohamba took over the presidency of Namibia in 2005 and after Jacob Zuma succeeded to the presidency of South Africa in 2009. There was a frequent visit by senior officials including the two heads of state and there was more cooperation on matters of mutual concern. Maite Nkoana-Mashabane, a South Africa Minister of International Relations and Cooperation, visited Namibia in April 2013 emphasizing the relationship between South Africa and Namibia as sisterhood and brotherhood relation. She signed around 52 bilateral agreements between the two nations. (Hengari & Saunders 2014, Page 169–178)
1.4 Dependency theory
The writers on Latin American from 1950 to 1970 popularized school of dependency. As suggested by (Intelligence Consultancy Namibia South African Sub-Imperialism In Africa, 2012), dependency theory has an attempt to explain the present development of the Namibia in the world with a keen examination of the patterns and interactions among the nations like the United Nations and South Africa. It has been used for the indication of the inequality which has been persisted among the base country United Nations as well as the South Africa. This theory was mainly focused on explaining South America’s power; there was also dependency research on Africa. Those who are researching Africa are Patrick McGowan, Samir Amin and Walter Rodney.
Andre Gunder Frank, the American economist, discussed the case of resolving the disputes of the dependency theory that the international systems has been seen handling the sum of two sets of states. In first hand, the international system has been proposed for the handling the mechanisms of both the dominant and the dependent factors. Secondly, this theory has been liable to follow up the external forces which has been noticed in case of the economic activities of the states which are dependent. Therefore, dependency theory legitimizes the structural principles which has been necessary for the eradication of the defectives of the research.
1.5 Research Aim
The primary aim of the research work is to identify the dependency of Namibia's economy on South Africa.
1.6 Research objectives
· To highlight the issues in Namibia's economy that makes it dependent on South Africa
· To analyse the issues in Namibia's economy
· To evaluate factors that may be the cause of the dependency
· To recommend ways for an established economy in Namibia
1.7 Research questions
1. What are issues in Namibia's economy?
2. Which issues make the economy dependent on South Africa?
3. What are the causes for the economic issues?
4. How can Economic issues in Namibia be mitigated?
1.8 Summary
This paper tries to analyze the dependency theory of Namibia on South Africa through subjective and empirical analysis. Paper is divided into five Chapters; Chapter 2 talks about the existing literature that addressed the relationship between South Africa and Namibia economy, Chapter 3 indicates the methodology used for the analysis. Chapter 4 deals with subjective analysis of the interdependence between South Africa and Namibia, Chapter 5 deals with empirical analysis of the issue and chapter 6 concludes about the findings.
Chapter 2 Literature review
Since the colonial times, Namibia’s economic dependence on South Africa has been a matter of concern. It has been 30 years since Namibia gained independence from South Africa, and yet the economic reliance on South Africa has not changed as much as the leaders would have wanted to, soon after the country was free.
There are literatures on the relationship between Namibia and South Africa, detailing their close interconnected economies, and the significant dependency of the latter country. Therefore, they will be a key analytical tool in establishing whether the dependency theories are relevant, and can explain the continuing imbalanced relationship of Namibia with its former colonial power.
2.1 Sunday and Ikunga the Dynamics of Foreign Aid and The Dependency Theory: The Nigeria’s Experience
Author analyzed the relationship between foreign aid and dependency theory in Africa. This analysis is particularly focused on Nigeria. They indicated core states or dominant states as the developed countries in the Organization of Economic Cooperation and Development (OECD), on the other hand dependent states are Asia, Latin America (Page 87).
Underdevelopment of Africa was responsible by the proponents of the dependency theory such as Neo-colonialism, Imperialism, Colonialism, the Produce Trade, and Trans-Atlantic Slave Trade. These are the factors that responsible for pre-mature and forceful incorporation of African territories into the world capitalist system. This incorporation led to dichotomy in economic relations in the international system. First Developed countries, which is also called as centre or core loot or exploited resources of African Nation, this...