Comoros Comoros as Client State: The Economics of Abdallah
Source: The Library of Congress Country Studies
President Abdallah generally put his personal interests ahead of national interests in making economic policy. The result was the creation of a client state whose meager and unpredictable cash crop earnings were supplemented with increasing infusions of foreign aid.
Throughout the 1980s, export earnings from Comoros' four main cash crops--vanilla, ylang-ylang, cloves, and copra--experienced a wrenching sequence of booms and collapses because of weather and market factors, or else steadily dwindled. The regime's principal form of response was to apply the president's considerable diplomatic skills to developing an extensive network of governments and international organizations willing to extend loans and donate aid. The main suppliers were France, South Africa, the EC, the conservative Arab states, the World Bank (see Glossary) and related organs, and regional financial institutions such as the Arab Bank for Economic Development in Africa and the African Development Bank. Some assistance went to projects of indisputable value, such as efforts to create independent news media and improve telephone communications with the outside world. Much of the aid, however, was questionable--for example, loans and grants to help the republic meet the payroll for its oversized civil service. Other more plausible projects, such as the protracted development of a seaport at the town of Mutsamudu, construction of paved ring roads linking each island's coastal settlements, and the building of power stations, nonetheless tended to be instances of placing the cart before the horse. That is, capital-intensive improvements to infrastructure had not been coordinated with local development projects; hence, little, if any, domestic commerce existed to benefit from road networks, electrical power, and world-class port facilities. The importation of huge quantities of building materials and construction equipment provided immediate benefits to importexport firms in the islands, of which Établissements Abdallah et Fils was the largest. In the meantime, the projects were of little immediate use to Comorans and were likely to go underused for years to come.
Throughout the Abdallah period, rice imports drained as much as 50 percent of Comoran export earnings. Projects to increase food self-sufficiency, as one observer noted, "fail[ed] to respond to the largesse" provided by international sponsors such as the European Development Fund and the International Fund for Agricultural Development. The president joined with vanilla growers in resisting international pressure to divert vanillaproducing land to the cultivation of corn and rice for domestic consumption. He also declined to heed World Bank advice to impose tariffs and domestic taxes on imported rice. Abdallah's importexport firm was heavily involved in vanilla exports, as well as in the importation of Far Eastern rice at three times its price at the source.
Abdallah's firm, whose co-owners included Denard and Kalfane and Company, a Pakistani concern, also profited from managing the importation of materials used by South African firms in developing tourist hotels. Little of the material used in building these resorts was of Comoran origin. Also, once completed, the resorts would be almost entirely owned and managed by non-Comorans. Although tourism, mainly by South Africans who were unwelcome in other African resorts, was widely considered the only promising new industry in Comoros, Abdallah guided its development so that resorts benefited few Comorans other than himself and his associates.
Under Abdallah's tutelage, the Comoran economy finished the 1980s much as it had started the decade--poor, underdeveloped, and dependent on export earnings from cash crops of unpredictable and generally declining value. The critical difference, with enormous implications for the republic's capacity to have some say in its own destiny, was its new status as a nation abjectly in debt. By 1988, the last full year of the Abdallah regime, 80 percent of annual public expenditures were funded by external aid (see Economy , this ch.).
Data as of August 1994
NOTE: The information regarding Comoros on this page is re-published from The Library of Congress Country Studies. No claims are made regarding the accuracy of Comoros Comoros as Client State: The Economics of Abdallah information contained here. All suggestions for corrections of any errors about Comoros Comoros as Client State: The Economics of Abdallah should be addressed to the Library of Congress.