National Economic Reconstruction in Angola: The Challenge and the Approach

Citation preview

DT 594 .N37 1981

NATIONAL ECONOMIC RECONSTRUCTION IN ANGOLA : THE CHALLENGE AND THE APPROACH

ကို အ ကို အတွက် ဗမရ*g ရ ြှို့ိုင်း ကြှိ ီး

DT 594

N32

National

Economic Reconstruction

in Angola : The Challenge and the Approach ‫اح‬ LIBRARIE ‫! انا‬ S BLOOMIN

GTON

UNITA The National Union for the Total Independence of Angola

‫زم‬

Africa 1980

Srand

TUNISIA MOROCCO

ALGERIA LIBYA

In Dispute

EGYPT

MAURITANIA MALI

NIGER

SENEGAL

CHAD

THE

SUDAN

GAMBIA

GUINEA GUINEAT SIERRA

UPPERY VOLTA

DJIBOUTI

BISSAU

NIGERIA

LEONE IVORY COAST

LIBERIAS CAMEROON

ETHIOPIA

CENTRALS AFRICAN EMPIRE

GHANA

SOMALI

TOGO ) BENIN

REPUBLIC UGANDA KENYA

EQUATORIAL GUINEA GABON

RWANDA BURUNDI

ZAIRE CONGO

CABINDA TANZANIA

ANGOLA

MALAWI MOZAMBIQUE

ZAMBIA

ZIMBABWE MADAGASCAR NAMIBIA

BOTSWANA SWAZILAND

LESOTHO SOUTH AFRICA

4-2-84

Contents I.

History of UNITA ........

Angola's Geography and Economy: An Overview .... III . The Economy: Before and After IV. What UNITA Believes ............ II .

V

VI .

UNITA's Economic Agenda Conclusion .........

3 7 10 14

17 23

TH ZUNITA st

Chapter 1

History of UNITA UNITA , The National Union for the Total

Independence of Angola, was founded at Mwangai (Moxico Province ), Angola on March 13, 1966.

The purpose of its founding patriots was

democratic process for Angola's inde pendence : a quadripartite ( Portugal , FNLA, MPLA , UNITA ) Transitional Gov ernment would govern Angola from Janu ary 31 to November 11 , 1975, the date

movement which could provide for a new

established for the proclamation of the country's independence ; free , general elections were to be held in October for

thrust to the Angolan people's liberation

the election of a Constituent Assembly

process.

and choice of form of Government before

to create a national liberation movement

against the Portuguese colonial rule, a

Throughout the struggle against Portu guese colonialism , unlike the other two

groups ( FNLA and MPLA) who operated exclusively from foreign bases , UNITA became the only Angolan liberation

movement based totally inside Angola with its entire leadership and armed forces. There UNITA , perfectly and per

proclamation of independence . Colonial ism was over, the country was prosperous and free, and the people eager to have a

piece of the pie. UNITA was the most gratified by the

prospect of a peaceful and democratic

the rural areas , consolidated its base and

transition into independence. The Party has fought for self-determination , for the recognition of the Angolan people's right to vote and choose freely their governing

scored impressive military victories in its guerrilla actions . UNITA was ultimately the main force and the most dedicated

believed in the ultimate triumph of democ racy - tolerance, acceptance and willing

manently intermingled with the masses in

organization that made possible the final

victory of the Angolan people against Por tuguese colonialism .

When in January 1975 the historic

institutions . UNITA has always strongly ness on the part of the three Angolan polit ical parties to coexist , to cooperate with one another, to work together for the sake

Alvor Agreement was concluded between

of peace and national unity. Armed strug gle against the Portuguese was neces

the Portuguese government on the one hand and the three Angolan liberation

ernment consistently refused to dialogue

movements on the other, there was cause

for jubilation all over Angola. The Alvor

Agreement established a harmonious ,

sary only because the Portuguese gov with Angolan nationalists and recognize their right to freedom . But as soon as the Portuguese government, in the aftermath 3

its willingness to dialogue and de - colonize

defend and protect our people . Thus UNITA's armed forces (FALA) entered the

Angola , UNITA launched and cham

civil war in August 1975.

pioned the whole reconciliation and nego tiation process both among the three lib eration movements at meetings in Angola ( Luso) , Zambia ( Lusaka ) , Zaire (Kin

At this time there were already thou sands of Cubans in the country servicing

of the April 1974 coup in Lisbon, indicated

shasa) , and Kenya ( Mombassa) , and for

the Alvor Agreement in Portugal.

every MPLA front. It was in reaction to Cubans that South Africans intervened in

the war. Following the Organization of Af rican Unity's January 1976 Conference in Addis Ababa which condemned all foreign

These courageous steps to promote negotiations , dialogue , peace and na

tional unity were in direct response to the people's basic wishes and aspirations. Consequently, UNITA's popularity in creased tremendously, as evidenced by polls taken in March and April 1975 show ing UNITA with more popular support than the other two groups combined . Fear of losing in the scheduled October elections as well as MPLA's attitude to scoff at the democratic notion of sharing power were undoubtedly at the root of the Soviet decision to send in a Cuban ex peditionary force to put the long time Soviet protege — the MPLA- in power, in

intervention in the conflict , and having be come obvious that the West was not going to take a stand to counter this Soviet

Cuban aggression , the South Africans withdrew in February 1976. The Cubans, however, have remained in the country,

and they have increased threefold to nearly 40,000 men . The Cubans have be come a force of occupation and repres sion to maintain in power their puppet regime, imposing undesirable values on Angola . Thus the Angolan people have never been allowed to exercise their right to be

total violation of the Alvor Agreement .

free, to vote, to elect freely their governing institutions . Peace , freedom and justice

Cuban instructors were seen in Luanda

can come to Angola only when the Soviets

as early as March 1975. Clashes between

and their surrogate forces of occupation leave and these basic political and human rights of the Angolan people are recog nized and respected . This is why the na

MPLA and FNLA started early in April . By

June there was shooting everywhere. But UNITA still managed a last effort to effect a cease-fire by convening the Nakuru (Kenya) Summit Conference under the auspices of the late President Jomo Ken yata. The Nakuru cease-fire accord was duly signed by the three liberation move ments ; one week later, MPLA and FNLA

were back in their trenches pounding at each other with their mortar and bazooka rockets.

On August 3rd, the Transitional Gov

ernment had totally collapsed amidst ris ing and uncontrollable violence in the cap ital ( Luanda) . In the meantime, MPLA had stepped up its verbal and armed provocations against

UNITA . On August 5 , MPLA's men in Bie fired at an aircraft that was carrying Presi dent Jonas Malheiro Savimbi . Earlier in July they had killed 30 school children in a

single act of terror at Pica- Pau , a UNITA neighborhood school in Luanda. Appro priate measures had to be taken to

counter the rising terror campaign , to 4

tional liberation struggle continues for UNITA and its FALA .

From the outset of the de-colonization process in 1974, Angola became a sad

casualty of a new foreign aggression and cynical indifference. No effort was made by the international community to support the triumph of the peaceful , democratic transition to nationhood . The Portuguese rulers were then strongly pro- Moscow and responded to their "revolutionary

duty " to promote the establishment of a "revolutionary” ( meaning pro-Soviet) re gime in Angola. At the Alvor Conference, for example, the ideas of calling for an international peace-keeping force and in ternational observers to look after the

electoral process in Angola were derided by the Portuguese participants . President Jonas Savimbi shuttled ceaselessly to Af rican capitals to plead for a more active role on the part of the international com munity to stave off the tragedy of the ex

panding civil war; he raised persistently the fundamental issue that ought to inter

South Africa; and he who sends his work

ing people to labor in South African gold

est all freedom- loving peoples of the

mines for his foreign exchange earnings

world : the right of the Angolan people

contributes to Pretoria's economic ( and military !) strength . It all signifies a com

to vote, to elect freely their governing institutions .

As for the South Africans, what does it mean when the leaders of Zimbabwe,

Mozambique , Zambia , Botswana and

others propose to excuse themselves

plex geopolitical reality which the coun tries of the region cannot as yet escape. We too have our people who have no choice but to cross the border into South Africa (or South Africa- ruled Namibia ) to

procure essentials . It becomes sheer

from observing any eventual economic embargo against South Africa, on the grounds that economically they couldn't

demagoguery or cynicism to differentiate

do without South Africa, and further as

countries in the area. And no liberation

serting that it is possible to separate their economic alliances from politics ? Of course no national defense apparatus can

movement in Southern Africa can hon estly claim to be more determined than UNITA to the elimination of apartheid and

be conceived without entailing finance

social injustice .

UNITA's situation from that of the other

and economy. He who depends eco

nomically on South Africa accepts military

The attitude of Western liberal demo

assistance , however indirectly, from

crats in total collusion with the pro - Soviet 5

Left has indeed been a major contributor to Angola's tragedy. They apply, rightly,

the logic of free elections and genuine independence for Namibia, but they re fuse to extend the logic to Angola . They endorse the presence of a repressive Cuban army of occupation and an un democratic minority rule in Angola, as the only way to counter the danger of South

African intervention . They refuse to argue

for freedom , liberty and justice for Ango lans . After all , the Soviet surrogate rulers in Luanda are not really afraid of the South Africans, but rather of the Angolan people; otherwise they, like the Patriotic Front,

would accept and respect the people's inalienable right to vote and choose freely their governing institutions . The Cuban expeditionary force was the key to Soviet

victory in Angola in 1975; but the support

Angolan people and also provide a safer

working climate for corporations. Yet a climate of peace , freedom , and stability, and a free-enterprise oriented govern ment would appear to be in the best inter

est of these outside corporations. While it is certainly Gulf Oil's preroga tive not to take sides in Angolan internal affairs , the corporation's neutrality must be questioned when it clearly supports

one political group against the other. Today 80 % of the Luanda regime's ex ports and revenues come from Gulf Oil , and Fidel Castro's expeditionary forces protect Gulf installations in Cabinda .

Supplied with ample amounts of cash from Gulf Oil , the Luanda regime can sur vive indefinitely, at least in the capital . In the meantime , thousands of Angolans

of the intellectually and politically influen

continue to suffer, to starve , to die , to be

tial Western liberal democrat is essential

to Russia's consolidation of victory. It prot

repressed by this undemocratic minority regime that refuses to support their basic

racts the tragedy and suffering in Angola.

rights .

Another major stumbling block facing the Angolan people is the attitude of the

multi-nationals , namely Gulf Oil Corpora

tion , Texaco, Boeing, etc. which with the

In the past there were public protests in the United States against Gulf Oil's sup port of the repressive Portuguese colonial rule . At that time Gulf used the same famil

support of the Export- Import Bank are

iar argument : the Portuguese colonial rulers were reliable, competent adminis

doing business with the present Luanda

trators , good to do business with . Public

regime . Representatives of these corpo

protests made no dent then , and the cor poration continued its commitment to the

rations have repeatedly testified at hear ings of the Subcommittee on Africa of the

repressive regime until the very end . Then

House Foreign Affairs Committee . One

it immediately embraced the new Soviet

theme stands out in their testimony : The Luanda regime has agreed to do business with us and we have wonderful working relations with them , therefore , even

though the regime is Marxist, the United

sponsored one.

No one is interested in punishing Gulf Oil. On the contrary, Gulf will remain a desirable and useful partner for Angola's

States should extend its diplomatic rec ognition .

economic development and progress, at

In MPLA's quest for U.S. recognition ,

do business without interfering with the

Gulf Oil Corporation has become the front for the regime's backers in the United

Angolan people's quest for peace , free dom , and justice . The agony and tragedy in Angola should not be needlessly pro

States . It has never been shown what

least as long as the oil reserves last . But surely it is possible for Gulf to continue to

added benefits the multi -nationals would derive from such recognition , which would appear to be essentially a reward to the Luanda regime for doing business with

longed , making the future task of national reconstruction even more difficult . The

Gulf . It would ignore the fact that the MPLA desperately needs to do business

nized ; but U.S. businessmen abroad should understand that the U.S.'s national

with Gulf . The question is never asked whether there is a better form of govern ment that would satisfy the interests of the

interest cannot be simplistically reduced to protection of individual , short- term

6

duty of the United States Government to protect U.S. business abroad is recog

business interests .

Chapter 11

Angola's Geography and Economy: An Overview 1. Judged by its physical and geographical characteristics,Angola's

2.

Angola comprises an area of 481,351 square miles - equal to the states of Texas, Louisiana, Oklahoma, and New Mexico combined . It lies between 4 ° 22' and 18 ° 00' South latitude and 11 ° 41 ' and 24 °

05' East longitude on the West coast of Africa . The main body is bordered by Zaire to the North and Northeast, Zambia to the East, Namibia to the South , and bathed by the Atlantic Ocean on the West. The enclave of Cabinda, located to the North of the Zaire

River, is bounded by the People's Republic of the Congo and a narrow strip of the Republic of Zaire.

3. 1000 Angolamiles is rectangularlyshaped, with aaNorth-Southcoastalline of and a maximum width of about 660 miles , covering a rich system of hydrographic basins and an excellent climate that ranges from warm and humid equatorial in the far North and on the coast,

through mild and quasi-Mediterranean in the central plateaux , to warm and dry in the far South .

4. The abundance ofwatercourses and the diversity ofclimaterepre sent an important economic asset , namely the immense possibility of crop diversification in agriculture, easy attainment of self

sufficiency in foodstuffs, and the transformation of agriculture into an extremely profitable economic activity. 7

. 5

.

m addition , the hydrographic basins of such important rivers as the

Cuanza, the Catumbela, and the Cunene represent an unlimited source of hydroelectric energy.

6.

quantified, geologists agree Angola's subsoil is undoubtedly one of Africa's richest in minerals. Large probable reserves of chrome, nickel , platinum , zinc, phosphates, sulphur, gold , diamonds , iron , copper, manganese, coal and oil have all been identified . Oil, iron , diamonds, gold and manganese have already been in production at one time or another, accounting for the bulk of the country's foreign exchange earnings.

7.

Being so vast and so richly endowed in natural resources , why has Angola plunged into socio - economic misery - hunger, starvation , nakedness, disease - immediately after the end of Portuguese

colonial rule? The answer lies in three factors : ( 1 ) scarce and under developed demographic elements , ( 2) instability and insecurity from

the ongoing war, and ( 3) totally disastrous socio -economic policies and models that the Soviet surrogates in Luanda are pursuing in a country where original approaches are absolutely necessary in order to meet our uniquely complex political, social , cultural, and historical realities .

The population of Angola is 6.5 million , or a density of 13.5 per

8.

square mile, which is very low, even by African standards . This population is quite unevenly distributed, being concentrated mostly in the urban areas of Luanda and Lobito and in the central plateau of Huambo and Bie; in fact Huambo Province - the smallest of the country's sixteen provinces - accounts for one third of the whole population.

9.

The country's population remained relatively sparse throughout the Portuguese colonial years . The growth rate was about 2.3% , which

appears reasonable but was inadequate in terms of filling the enor mous population deficiency in the country.

10.

At the same time , illiteracy was pathetically high , running at more than 90% . In addition , in terms of the demands of a market economy, the life style and the standards of living of the populations was too low to enable the development of the country's potentialities at an adequate pace .

11 .

In order to overcome these debilitating deficiencies , a process of

education needed to be consciously undertaken and serious efforts made to adapt the life style and cultural patterns to modern socio economic conditions , adopting new consumption and saving habits, as well as broader production and productivity criteria . The trans formation of man , indeed , cannot be processed through institution

8

alized education and training only : the whole environment must be conditioned to stimulate it through living experience and action . It is the advanced segment of the society that helps to condition the environment.

beensaidaboutAngola's prosperity and stableeconomy 12. before Much has independence, especially during the last decade of the colo nial administration. There were surplus agricultural products, a

boom in coffee production , rapidly expanding extractive and man ufacturing industries, prosperous small and medium businessmen , and ample domestic sources of capital for investment in countless development projects with no recourse to foreign borrowing.

13 .

After independence , with the departure of the Portuguese, Angola's economy collapsed overnight . Thousands of Cubans , Russians, East Germans, Bulgarians, and Czechs flocked into Angola in an attempt to replace the departed Portuguese. The number of these

East European "cooperants” is undoubtedly larger than the number of skilled Portuguese working people in the heyday of Portuguese rule! But despite this conspicuous presence of a large contingent of foreign skilled personnel, the performance of the Soviet surro gate regime of Luanda has been a dismal failure , a real economic disaster.

The 14. that hadcreatedit andsupportedit with itstechnology(however

rudimentary by Western standards) , management, and the life style of its nearly half a million residents is gone. To expect to reestablish Angola's pre-independence economy on the basis of bringing back into the country thousands of Soviet-bloc personnel is sheer non sense . Technically, 30,000 foreign technicians might do the basic highly skilled jobs; but they would never solve the actual economic problem , since the mid-management, the entrepreneurship , and the

consumption factor of the missing 470,000 Portuguese residents are irrevocably gone . Unlike the Portuguese, the new foreign

" cooperants " are not a segment of the Angolan population .

15.

The evil nature of colonialism is obvious. The economic prosperity of Angola was essentially an exclusive privilege of the Portuguese

residents, who generally thrived on the cheap labor of the Black Angolans, who toiled at slave's wages. It is not necessary to go into

that familiar litany about colonialism . The present concern is how that rich economic patrimony, a product of the blood and sweat of the people, vanished to the present nothingness .

16.

situation , but it would have required a realistic socio-economic analysis and practical approach rather than the sloganeering and hard- line Marxist rhetoric that characterize the Soviet surrogates in Luanda . 9

Chapter III

The Economy Before and After

Agriculture Before the Soviet- Cuban Takeover - 1974

After the Soviet-Cuban Takeover — 1979

There were about 1 million traditional

All commercial farms nationalized and run

( subsistence ) farms averaging 15 acres

as “ State Farm Enterprises." Traditional farming collectivized as “Agricultural Pro

each and about 7,000 commercial farms averaging 1500 acres each .

duction Cooperatives ." Recourse to massive imports of such

Food production was self-sufficient ; ample and diverse supplies for domestic

staples as maize, rice, and beans. Agricul

needs with significant surplus accounting

tural products ( mostly coffee) make up

for 40% of total export value, or US $260 million annually.

7 % of total export value.

Imports of foodstuff consisted essentially

Imports of foodstuff make up 26 % of all import value .

of exotic products (wine, olive oil, etc.) whose value never exceeded US $ 30 million .

The agricultural sector was expanding rapidly at a yearly rate of increase of up to 22 % .

A regressive pattern in production , with

spectacularly sharp drops, especially in the nationalized sectors of coffee, sugar, and cotton .

It should be noted that by 1974 Angola

national merchants in 1974. Today, about

was rapidly becoming a beef exporting producer. Today, 70% of beef requirement

cleaned out by Soviet , Cuban and

for domestic consumption is imported .

Spanish fleets, which are required to turn

About 400,000 tons of fish were annu ally caught in the Angolan waters by inter

in 15% of the catch to the Luanda regime . This raises important conservation and ecological problems.

10

1.3 million tons are annually vacuum

Other Food Products

Major Agricultural Products ( In Metric Tons) Product Maize Rice

Wheat Potatoes Beans

Palm Oil Peanuts Banana

Pineapple Sugar Coffee Tobacco Cotton Sisal

1973

1978

700,000 198,000 28,323 8,240 11,528 5,940

101,000

12,470

70,000 20,000

40,000 11,430 2,000 12,700 4,400 39,800 26,000 630 1,080 15,000

26,000

195,000

55,000 61,001 210,000

4,526 79,281 60,200

% Change

Item

- 72 %

Beet Pork

- 71 %

1974

26,500 tons 3,500 tons 12,000 tons

- 48 % - 88 % -43 % -43 % -92 % -93 %

Chicken Eggs Fish ;

Misc .

267,000 tons

-92 %

Frozen

45,000 tons

-35 %

Dried & Smoked

-88 - 86 -98 – 75

% % % %

Total Catch

1979

5,000 tons 705 tons

1,500 tons

100 million eggs 7 million eggs 500,000 tons 210,000 tons

Fresh and

Fishmeal

Canned

38,000 tons 148,000 tons 2,000 tons

160,100 tons 8,600 tons

30,000 tons

8,500 tons 2,800 tons

Mining Extractive Industries 1974

1979

Crude oil, diamonds, and iron were the

Crude oil and diamonds account for

most important minerals, accounting for

nearly 90 % of the country's annual export

about US $ 300 million annual production, or 48 % of total export value. Also in production were manganese , cop-

value . Iron mines are shut down .

Mostly shut down.

per, asphaltic rock, marble, and phos phate rock .

Diamond production at 2.125 million carats or US $76 million; third major export after crude oil and coffee . Crude oil-8.9 million metric tons at US

$4 per barrel or US $544 per metric ton .

Economy fairly strong and stable because there were dozens of export products, six of which accounted for 73% of total national export value.

841,000 carats, or US $ 30 million ; second major export after crude oil. 7.8 million metric tons at US $ 30 per bar rel of crude or US $ 4080 per metric ton. Accounts for nearly 80 % of total exports. Economy extremely vulnerable since 90 % of export value comprises only two products ( crude oil and diamonds ).

11

Manufacturing and

The Luanda Government

Construction Industries

Participation and Control of

Product

Enterprises

1979 ( Percentage of 1973 Production)

State Participation and Control

Enterprise

Batteries

Dry cell....... Wet cell ..... Bicycles .....

.59 %

Beer

.66 % 24%

Cement

.... 80 %

Bridge construction

Bush swords ( Catanas) ................. 85% .91 %

Cement .......

Electrical power generation ..........76 % .66 % .66% +

Oxygen .... Petroleum refinery .... Road building Asphalt .......

09 %

Gravel surface Rubber tires ... Steel rods ......

..07 % .60 % .40%

85 % 100 %

Bicycles

58 % 37 % 61 %

Cooking Oil Diamond Mining

76%

Margarine Naval Construction

67 % 100 %

Oil Industry Paper and Wood Pulp

51 % 100 %

Plywood Soap

100 % 55% 100% 98 % 100 %

Matches

Steel Rods Steel Containers

Sugar Industry

Credit and Banking System 1974

1979

A fairly efficient, self- reliant model of free enterprise system consisting of:

A State -run enterprise consisting of: • The National Bank of Angola (for all

• Bank of Angola (central)

general services — central , issuing ,

• Exchange Fund (foreign currency con

treasury, commercial , foreign ex

trol)

• National Development Bank • Agricultural Credit Bureau • Credit Institute of Angola • Four Independent Commercial Banks.

12

change, etc.)

• The People's Bank of Angola (for sav

ings and service for thegeneral public) .

Transportation and Communications Equipment and Infrastructures Railroad length operable Asphalted Road length

1974

1979

3159 km

850 km 8800 km

8000 km

Dirt Road length

36,425 km

64,670 km 28,000 12+

Heavy Trucks Aircraft

6,000 42

180

2 80

9,273,000 tons 2,965,000 tons

680,000 tons 6,100,000 tons

9,212 tons 429,000

23,100 tons

18,801,000 tons 44,000 tons

176,700 tons

330

100

Airports, International Airports, Small

2

Activities Railroad cargo

Railroad passengers

Air Cargo Air passengers Sea cargo

Sea passenger

Postal Services Major Post Offices

560,000 39,000 tons

Characteristics of Angola's Railroad Systems as of 1975

Length , with sidings (miles) Gauge ( inches)

Benguela Railway

Mocamedes

Luanda

Amboin

Railway

Railway

Railway

879

681

327

76

42

42

42

23.6

107

12

25

5

28

64

20

72

20

NA

4

NA

3

79

NA

6

1829

1417

425

73

NA

NA

3

4

Rolling Stock : Locomotives Steam

Passenger Carriages Dining Cars Baggage and Brake Vans Goods Wagons Railcars

||||

Diesel

NA

NA NA

NA

13

Chapter IV

What UNITA Believes 1.

Restoration of peace and stability in Angola is fundamental to any realistic and effective economic planning and development, espe cially if foreign cooperation is to play an important role . Political and social instability and insecurity do not allow foreign corporations to

operate satisfactorily. Unless there is peace and stability, all physical property and human lives are threatened by an adversary - often invisible — who may strike anywhere at any time, increasing perma nently the risk to business or property ownership .

The idea of stationing troops to protect private property underlines ,

2.

ironically,,the senseof insecurity and mutual distrust between the enterprise and the local populations, especially when the enter prise's alleged enemy is invisible and intermingled with the vast, anonymous mass of the citizenry. A company operates better when

its presence and its goals are not perceived to be antagonistic to the interest of the people.

3.

Given the depth of Angola's socio -political conflict, everyone, whether foreign or Angolan , is directly involved in the conflict.

4.

transfer earnings out of the country, account for the present eco

Short-term investment schemes, characterized by eagerness to nomic activities which have no commitment to Angola's future.

5. Onlypeace and stability can ultimately ensure a healthypursuitof foreign .

6.

Equally fundamental is the development of adequate policies and administrative efficiency to optimize thebusinessman's confidence and trust. Expeditious issuance of business or industrial permits, adequate fiscal incentives, uncomplicated customs procedures, preferential tariffs on imports of raw materials and spare parts and equipment, as well as satisfactory provisions on capital and earn ings repatriations, are all to be clearly spelled out in the investment policy.

14

7. Government'sguaranteesto foreigncapital,especiallyinrelationto repatriation of the earnings or assets ; ( 2) preferential investment

sectors; ( 3) protection and guarantees of expatriates' rights; ( 4) incentives to encourage the investors to re -invest some of their

earnings in the country ; and ( 5) the investor's fiscal and legal

8.

obligations . It is a basic responsibility of UNITA to plan for the country's economy, to guide policies and conditions that can ensure optimum use of the country's resources and to direct the investor's efforts and capital

into most deserving sectors. Equally important is to reconcile the national economic goals with the private investor's legitimate quest for a safe return on his investment. The ultimate goals of our Party's

9.

economic guidance are: to maintain optimum and orderly economic growth; to achieve prosperity with full employment, controlled infla tion and an equitable distribution of income; eradicate poverty and establish a viable , self-sustained democratic economic society; and to achieve economic self-sufficiency within a mutually advanta geous framework of international interdependence . Private individuals will be free and will be encouraged to take private initiative to put the national resources into production as private

enterprise . Individuals will enjoy the freedom to sell their resources or the product of their labor as they see fit. They are equally free to buy the goods and services to their satisfaction . Businessmen are

free to set up new enterprises and to run them by best use of available resources and technology, minimizing the cost of produc

tion and maximizing the earnings. The market should be competi tive, without, however, allowing individual buyers and sellers to control the price of goods and services.

10.

Individual freedom , happiness, welfare, and prosperity must be taken into account in assessing overall social progress and the viability of the country's economic programs .

11 . 12.

It is UNITA's responsibility to provide for protection to these basic political and economic freedoms .

Naturally, as in any modern democratic society, extreme forms of individual freedom cannot be allowed to exist. Government inter vention becomes necessary and central to stabilize the economy

and to act as the watchdog of the collective interests of the society, to enforce the laws , and to protect the environment and the ecologi

cal balance . Thus , regardless of one's belief in the laws of supply

and demand and free enterprise , “ mixed -enterprise” is the eco nomic system adopted in all Western democratic nations, providing their governments with the tools to modify or replace the operating parameters of the market in order to allocate scarce resources .

13.

Government responsibility in a developing society such as Angola is , however, quite unique and crucial . Unlike in developed countries , where skilled labor and capital are abundant and the standards of living are high , Angola underproduces (for lack of skill and technol ogy) , undersells (because it doesn't control the price mechanism of

its products ), overpays (for imported essentials) , and its standards of living / life style/ income are too low to generate enough savings and capital for important development projects. 15

living standardsmeans changing consumption patterns. 14. Changing In skills as it is to encourage the populations to consume certain products that are desirable to healthier living. Balanced nutrition, hygiene, comfort, social amenities , etc., involve a whole range of products , equipment, machines , and services in varying degrees of sophistication and whose intensity and level of consumption deter mine the standards of living. As the population acquires new con sumption habits towards the desirable change in life style, it be

comes equally important to know whether the price of the products is affordable . Unless the consumers can afford the price, they cannot buy the products; but unless they want and need the prod uct, they may never afford the price. A very low level of consumption - characteristic of subsistence economies— may give way to a very

low level of social production and low income. Where mediocrity and austerity are permanently upheld as virtues, social progress will not be possible .

15.

The process of change may be long and complex; but it must be planned for, with specific, deliberate actions pursued by the gov

ernment through education and training programs, as well as direct intervention in both microeconomics and macroeconomics.

While the government would take appropriate action to establish or

16.

stabilize prices and wages - taking into account the need to main tain rising decency in living—in essence the real output value must be high enough to allow producers to cover their production expen ditures and depreciation of capital goods and equipment. The inher ent price and wage mechanism must remain a positive factor for the

rate of economic growth .Certainly, the prospect of a promotion and a wage increase always motivates the worker to improve upon his

skills or to acquire new ones . Capital accumulation and technologi cal improvements , on the other hand , largely depend on the entre

preneur's expectation of profits. new

17. thepublicandtheprivatesector. The nature of the enterprise andits significance within a macroeconomic perspective will determine whether a (business or industrial) contract with the government is

required . In ascertaining this , several factors are looked at: ( 1 ) projected capital investment; ( 2) importance of foreign exchange earnings ; ( 3) jobs to be generated ; ( 4) type of final product whether it is for export or for domestic consumption ; ( 5) source of capital and

managerial expertise whether foreign or domestic; ( 6 ) location; ( 7 ) extent of use of local resources as input.

18.

In order to encourage Angolan nationals to undertake business

initiatives , the government would set up appropriate technical , fi nancial and research assistance programs for small and medium enterprises .

policies areneededtoprotect andpreservethe environ 19. Adequate ment and wildlife. ( Since UNITA's ban on indiscriminate hunting , elephant and buffalo herds are now beginning to return from neigh boring countries back to their preserves in Southern Angola.) 16

Chapter V

UNITA's Economic

Agenda Agriculture Agriculture constitutes the basic eco nomic activity, engaging nearly 85 % of the country's working population . Several

steps will be taken urgently in order to transform the agricultural sector from one

of subsistence to advanced , profitable economic activity. The steps shall include:

• Encouragement of the formation of farmers' associations or coopera tives at local and national levels to

foster free exchange of information and cooperation in production , distri bution and marketing matters. • Promotion of specific rural develop ment programs for irrigation , roads ,

electricity, clinics, schools, etc. , on 9

• Establishment of a training /orienta tion program to be administered to all farmers in rural areas for practical

technical aspects in irrigation , use of fertilizers, seed selection, choice of crops , market value of farm com

modities , marketing , animal hus bandry, etc. • Promotion and creation of a national

fertilizer industry.

• Promotion and encouragement of use of relatively advanced farming equipment and machinery.

• Encouragement of farmers to use part of their products as a steady part of their own improved balancednutri tion .

• Establishment of equipment lease and rental agencies to provide the farmer with the opportunity to use

the premise that the country's real

progress will be measured by the rise in standards of living in rural areas where 85 % of the population live, rather than in cities.

• Prompt attention to the vital and deli cate rural development needs, since failure to meet them may, in addition to alienating the overwhelming majority of the population, result in mass exodus from rural areas into cities and make the younger genera tion less eager to embark upon ag

riculture as a rewarding and vital career. At the same time, the cities would swell and explode with the un controllable influx from rural areas,

and there would be a new range of socio - economic problems . • Establishment of highly technically qualified research institutes by the government to compile on a continu

advanced tools of production which otherwise he could not afford .

• Establishment of government sub sidies to assist farmers in financing their projects .

ing basis all relevant information on the status of the agriculture

country and to provide the economic planning groups with reliable scien tific data . 17

• Evaluation of the range of profitable crops besides coffee and sugar which have already proved to be An gola's profitable foreign exchange

Partnership of the public and private sectors will be guided by specific govern ment regulation , formulated on a case

by-case basis. This would include extrac

earners, in order to diversify the na tional crop pattern both for export and for diversified food manufactur ing industry for domestic consump

tion and/or processing of petroleum , natu ral gas, diamonds, iron , copper, uranium , coal , sulphur, and phosphates as well as production of fertilizers , petrochemicals,

tion .

and electrical power. Naturally a resource will be classified as " strategic " only if it

• Re -establishment of self- sufficiency

in foodstuffs to pre - independence levels , or better. Regardless of the adequacy of the transportation sys tem for food marketing and distribu tion , the growing of staple crops will

be encouraged in all regions, soil and climate permitting .

Industry Industry is the key to the whole socio economic development . It allows for high rate of growth within a relatively short period of time , and it conditions the feasi bility of other economic sectors , such as agriculture, increasing the value of the lat ter's product and supplying certain vital elements like fertilizers, pesticides , irriga

tion systems, and equipment. Agriculture

and construction industry machinery and equipment, as well as the transportation sectors, require heavy industry support.

meets certain economic value criteria at a given moment of the country's economic reconstruction ; and these value criteria

are , of course, subject to change in ac cordance with external market conditions.

The degree of government control or participation may be direct or indirect, with effective control or simple shareholding

privileges. In certain ventures , the State may reserve its prerogative of full partici

pation at the production and marketing stages, rather than at preliminary or ex ploratory phases. In industry, as well as in all other economic ventures , the State should strive for a harmonious , working partnership with the private sector for ef

fective performance and mutually agreed upon benefits . No ideological rhetoric should be allowed to cover up for gov ernment failure in socio-economic pro grams .

Light industry is essential for food and

consumer goods, as well as for chemical

Establishment of Industrial

fertilizers . Industrial policies will be aimed

Centers

at :

• accelerating the end of subsistence economy;

The goal is to create highly effective sys tems of providing supporting goods and services to industry : office buildings ,

• modernizing agriculture for total self-sufficiency in food and primary products;

warehouses , plant buildings , infrastruc ture , living facilities , electrical power, water supply, drainage systems , transpor

• stimulating higher gross national

tation and communications , plant secu

product through public and private

rity, firemen , showrooms , laboratories ,

investment ;

• incorporating specific regional con

maintenance / repair bays , manpower training centers , social services , etc. En

siderations within the overall eco

terprises operating within a given indus

nomic plan to ensure a just , equitable share of each region in the country's

duced costs and immediate availability of

development and wellbeing ;

• preparation of skilled labor in various technical fields :

• setting up an adequate monetary pol icy as an essential factor in the im plementation of the entire economic policy. 18

trial center would thus benefit from re

essential goods and services which they could not afford operating singly in remote areas .

The regions of major population density will be ideal for establishment of industrial centers . This would be the case of the

Huambo region in the center of the coun

try. Up to ten thousand jobs could be pro vided for at the center. Typical industries at this center would include food processing, footwear and leather, clothing , soap ,

household appliances, and chemical fer tilizers. Since this is a heavily agricultural

region , fertilizer plants would be in order. Given Angola's rich potential in various raw materials and energy sources , the establishment of heavy industry will ac

quire added importance in up - grading and

raw -material exporting pattern with its known catastrophic consequences.

Given the country's vast potentialities in mineral resources , serious efforts must

be made to diversify the extractive indus try into other profitable mining sectors so as to increase and to strengthen the for eign currency earning capabilities, as well as to provide for a wider range of

domestically-supplied raw materials for the developing manufacturing industry.

concentrating low - grade minerals ( iron , copper, lead, uranium , etc.) to reduce shipping costs and increase their market

and industrial rocks shall be given a new

value .

direction and a new impulse . Mining is , by

The vast iron ore reserves , estimated at several billion tons in the Huila Province ,

Thus the mining sectors of iron , copper,

manganese, gold , uranium, phosphates

nature , a heavy -capital demanding enter prise; private investors , whether foreign or national , will therefore be encouraged

require metallurgical plants for production of iron pellets for export and domestic consumption . A heavy industrial center

to participate.

could be established for this purpose near

however, must be undertaken continu

this mining area and at or close to the port city of Mocamedes on the Atlantic coast. (The Cassinga , Huila iron mines area is

ously by the government in order to have a complete inventory of the mineral re

connected to the city of Mocamedes by a

A greater, detailed geological survey,

sources and thus render easier and less costly any preliminary mining develop

42-in gauge railroad .) Up to eight million

ment work . A continuous geological sur

tons of iron pellets and two million tons of

vey would also balance reallocation of

semi-finished steel could be produced

depleting reserves in one area by finding

annually at this heavy industrial center,

new ones in other areas .

providing more than nine thousand jobs.

Adequate policies shall be developed to conserve and protect the environment

Forest Resources are abundant and

diverse in various parts of the country. A thorough inventory of these resources, their potential industrial uses, and man

while mining proceeds. The ultimate success of the extractive

power training for effective exploitation of the sector will be needed . There are

skilled Angolan manpower. This requires

365,000 acres of planted timber forests , of which 185,000 acres are in Alto Catum bela (Benguela Province) , ready for ex ploitation in timber, wood pulp , paper, plywood and resin industries. In addition, natural forests abound in valuable timber resources , especially in in Moxico ,

Cuando- Cubango and Cabinda prov inces .

industry will depend on availability of a comprehensive program to prepare competent engineers , geologists, busi ness administrators , metallurgists , chemists, economists, etc.

Tourism Angola is endowed with a diversity of breathtaking natural scenery : waterfalls, flora , wild life preserves , landscape , beaches, etc. Countless of these natural

beauties could be highly satisfying and

The Extractive Industry

gratifying , entertaining , and enlightening

Although the petroleum industry today is in the ascendancy, the truth is this is a rapidly declining resource , with its present

to the visitor, whether foreign or national. Angola's vast natural resources for

market value totally dependent on unsta ble and uncertain external demand-and

supply factors . Our economy must not be allowed to become hostage to a single

tourism have remained unexploited . The Portuguese colonial rulers feared tourists

might influence the Africans and hasten revolt against colonialism , or they might criticize their actions when back in their 19

own countries. The present Soviet surro

the deep countryside for development

gate rulers in Luanda abhor foreigners for similar reasons . As is characteristic of a repressive, unstable, violent regime, they see every Western visitor as an im

programs.

perialist agent The development of the tourism could

bring into the country millions of dollars in foreign currency earnings, provide thou sands of jobs, and stimulate such other economic sectors as the construction and hotel industries .

The establishment of adequate and ap propriate immigration policies, however, must receive attention before everything else . Unless the society becomes free

and open — without armies of government secret agents tailing every foreign visitor -tourism will not prosper .

Fishing Industry In order to restore the fishing industry to

its highly lucrative pre-independence levels, or better, several steps must be taken :

Of the four railroad systems , the Ben guela Railway line (CFB ), because of its international/ strategic importance to the region, acquires special significance. The CFB saves Zaire 2500 miles of sea and 600 miles of rail to Europe as compared

with shipping via Zambia and the port of Beira in Mozambique . The importance of

the railroad to neighboring countries en tails a special responsibility of Angola to run it as efficiently as possible . (Naturally, the CFB , like the economy in general ,

cannot function normally until there is peace and stability in Angola .) In addition to restoration of peace and

stability, the management of this vital economic asset will be reassessed for restoration to its pre -independence tech nical competence and profitability. Related to the railroad's economic via

bility are port facilities. Improvement of existing dock facilities and ancillary ser

vices will be required , including up-to-date • elaboration of an adequate policy to

encourage and to assist the private

feasibility studies, equipment, manage ment methods, adequate fiscal policies

sector to invest;

and tariffs, labor policies, and availability

• establishment of intensive training programs for professional fishermen, sailors, business managers as well as in the fields of boating , naval con struction , fishing technology, market ing, navigation , marine biology & bac

of fuel and supplies for the mooring ships . In addition to expansion of existing facili ties, priority would be given to decongest ing and increasing efficiency at ports. Motivation and morale of the workers

would deserve utmost attention .

teriology, oceanography, etc .; and • establishment of comprehensive

Although the country possesses a fairly wide network of asphalted and gravel sur

guidelines and regulations to define

face all- weather roads, it is incomplete ;

types of fishing permits , fishing areas, permissible fishing devices, species of fish allowable for catching , quality control, and fiscal accounta bility.

and maintenance is not adequate. In fact, vast areas remain inaccessible for devel

opment projects because of the lack of roads .

Given the scarcity of efficient private

means of transportation, efforts must be

Transportation and Communications Railroads play a vital role in the social and economic development of the country. We not only need to restore the country's net

work urgently to normal operating condi

tions, but also to expand into remote stra tegic regions as an effective way to reach 20

made to develop a reliable, well main

tained public/mass transportation system for urban areas , as well as across the country. Private investment in public/

mass transportation enterprises would be encouraged . In postal and telecommunication ser vices, an infrastructure needs to be de veloped that can support and maintain a

reliable network . Utilization of micro wave

Development and distribution of electri

and trans -horizon systems to replace the

old VHF system requires improvement

cal power in the country will , however, be determined by appropriate policy which

and adequate maintenance work to ren

must take into account:

der the network operable. At the same time , the more than one thousand chan nels available for telephone network must be utilized effectively by extending the telephone service to other localities ,

• availability of resources of energy; • industrial and household demand ;

• rates which should be affordable to households with average income

(both in cities and ultimately in rural

rather than limiting it to a few urban dwell

areas) ; ers .

An effort will be made to tie the tele

• accessibility of consumption centers

phone exchanges into the automatic ex change system for easier servicing and

-often necessitating road construc

maintenance .

tion before electrical power project; • socio- demographic conditions whether it is feasible to carry electric

Effective consultations with the coun

tries in the region will be carried out to integrate Angola's telecommunication system into a regional, Pan - African net work for productive regional cooperation . In this sector, as in many others, man power training , planning , management, and adequate technical assistance from developed countries will be sought.

ity to a village of five households, some 50 km away the nearest power station ;

• projected industrial and population growth ; and

• organizational and managerial framework .

Education

Construction Industry

Education must be a right - rather than a

Special and immediate attention would be

privilege- of every citizen , from kinder garten to higher education .

given to the housing needs and housing conditions in the urban areas , with the purpose of providing decent, low - cost liv ing quarters for all working people. Unless conditions in the cities are decent and liv able , there will be a regressive pattern

diminishing the overall impact of eco nomic development, which may adversely affect rural development as well .

Priority in education will be aimed not

just at eradicating illiteracy, but most im portantly to progressive, tangible change in people toward a more productive soci ety, richer cultural growth , and fuller modern life .

School curricula and programs will be

geared to meet both the national needs in the various fields of knowledge and the

Electricity Angola can be wholly supplied with hy droelectric power. There are for the mo ment three major hydroelectric power sys tems : the Cuanza System (capacity 235 MW ), the Catumbela system (capacity 79

individual preferences and choices in pur suit of knowledge . The purpose is to achieve maximum utilization of the so far

scarce developed human resources . Stu dents will therefore be adequately as

sisted by mature, competent people dur

MW ) and the Cunene system (capacity 27

ing their choice of career to avoid waste of

MW ). A fourth system—the Ruacana - in

time .

the Cuene Province, although conceived for Namibia, when completed will be tap ped for Angolan use as well .

to fill the national needs , three to four-year

These hydroelectric power systems , however, require completion of the ex pansion projects initiated by the Portu

In preparation of qualified technicians intermediate technical institutes will be

established ; admission requirements to these technical institutes would include the equivalent of a 9th grade education .

guese government before independence

In addition to intermediate institutes ,

in order to bring the systems to full produc tion and to meet rising demand.

regular higher education institutions would prepare students for university 21

level academic and professional studies .

Since the colonial school buildings are not large or numerous enough to accom modate the severalfold school enrollment

required for the country's needs, school building projects would have to be under

taken vigorously and with a sense of priority.

cialists , public health administrators,

para -medics, nurses, and laboratory analysts ; • expanding the network of clinics to cover all major population centers: cities, city suburbs, towns and vil lages;

• improving and extending maternity

Public Health

care to reduce as rapidly as possible

As in education , health care should be a right of every citizen . Health and medical

the country's high infant mortality

care shall therefore be free to every citi

• broadening and emphasizing the im portance of preventive medicine vaccinations, etc — to reduce the high

zen . Special emphasis must be on : preparing enough and competent medical doctors, public health spe

22

rate;

incidence of endemic diseases .

Chapter VI

Conclusion Given the availability of the country's nat ural resources as well as the Angolan people's eagerness to work hard , to im prove their material lot and to achieve happiness and material progress , the

challenge of Angola's economic recon struction may be quite enormous but highly rewarding in the end . The country has unique historical , cul tural , geographical and political condi tions . Its socio-economic development , therefore , cannot be fashioned after un

international interest groups must stop

playing their destructive role of playing one segment of the Angolan population against another, thus fostering violence , war and divisiveness . The continued

presence of the repressive Cuban army of occupation and an undemocratic , un

elected regime are made possible by fi nancial and political support from the free,

democratic West, thus delaying and frus trating the Angolan people's quest for

genuine independence , liberty and com

tested , unmatching foreign models ; An

mitment to economic national recon

gola's path to development requires a unique approach based on objective and

struction .

thorough studies and farsightedness . Instead of thwarting the individual initia tive by regimenting him into a totally cen tralized , State-run machinery, the love for

tion from a freedom-loving international

Only with understanding and coopera

characterize the Angolan populations should be used as a main drive force to

community can Angola be spared pro tracted agony, embark upon socio economic progress , protect the interests of all those doing business in the country and transform Angola into a viable and safe partner for free and democratic eco

promote collective national efforts and

nomic enterprises .

freedom , liberty and individual pride that

well being . The Central Committee of Peace and stability must, however, be achieved before national unity can be

The National Union for the Total Independence of Angola

consolidated for effective national eco nomic development . But in order to achieve peace , freedom and stability, all

UNITA

Angola , May 1981 . 23

ANGOLA CABINDA

LUANDA

ZAIRE

UIGE

MA CUANZA

NJ

E

LUNDA

BO

NORTE

LA

AM

CUANZA

Y E U NG

HU

MOÇAMEDES

SUD

BE

BIE

MOXICO

HUILA

CUNENE

CUANDO - CUBANGO

.է .. , Մ- ի մՆՐԱ սեր

3 9000 000 535 109

DO NOT REMOVE SLIP FROM POCKET

DEMCO