The Economic North–South Divide

The Economic North–South Divide

Six Decades of Unequal Development

Kunibert Raffer and H. W. Singer

The Economic North–South Divide explores the structural roots of the debt crisis and considers the impact of debt management on North–South economic relations, exposing certain double standards that tilt global markets further against the South. Encouraged by recent successful opposition to neoliberalism, the authors finally propose ideas for a world where people seem to matter.

Chapter 7: Lomé: Reflecting North–South Relations since Colonial Times

Kunibert Raffer and H. W. Singer

Subjects: development studies, development economics, economics and finance, development economics


CHAPTER 7 4/7/01 1:33 pm Page 1 7. Lomé: reflecting North-South relations since colonial times The history of Lomé mirrors North-South relations very well, including their origin in the colonial past. When the Treaty of Rome creating the European Economic Community (EEC) was signed in 1957 several signatories were colonial powers. Since they had no intention to sever economic links with their colonies the treaty had to contain clauses (Article 131 et seq.) linking these colonies with the Community. The first European Development Fund (EDF 1) was established. Naturally, the colonized were not asked for their approval. After decolonization, international agreements became necessary to continue these relations with what now were independent countries. Yaoundé I and II were signed, the first Agreement of Yaoundé between the Six (original EEC members) and 18 newly independent African states. It abolished tariffs and trade barriers for nine agrarian commodities, reducing them for other products except for those considered sensitive by the Europeans (whose production was of interest to EEC agricultural policy). Provisions for capital movements and locations of firms were included, aid by EDF 2 and the European Investment Bank was agreed on. In return, European exports had to be granted preferential treatment - or ‘reverse preferences’ - by the Yaoundé countries. Other SCs complained about massive trade diversions. This led to the Arusha Agreement with Kenya, Tanzania and Uganda, less generous than Yaoundé I, but the first breakaway from the strong concentration on francophone Africa. Yaoundé II invited all African states...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information