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Arabica Robusta

The Mandela Years in Power » CounterPunch: Tells the Facts, Names the Names - 0 views

  • As his health deteriorated over the past six months, many asked the more durable question: how did he change South Africa? Given how unsatisfactory life is for so many in society, the follow-up question is, how much room was there for Mandela to maneuver?
  • But it was in this period, alleges former Intelligence Minister Ronnie Kasrils, that “the battle for the soul of the African National Congress was lost to corporate power and influence… We readily accepted that devil’s pact and are damned in the process. It has bequeathed to our country an economy so tied in to the neoliberal global formula and market fundamentalism that there is very little room to alleviate the dire plight of the masses of our people.”
  • Nelson Mandela’s South Africa fit a pattern: a series of formerly anti-authoritarian critics of old dictatorships – whether from rightwing or left-wing backgrounds – who transformed into 1980s-90s neoliberal rulers: Alfonsin (Argentina), Aquino (Philippines), Arafat (Palestine), Aristide (Haiti), Bhutto (Pakistan), Chiluba (Zambia), Dae Jung (South Korea), Havel (Czech Republic), Mandela (South Africa), Manley (Jamaica), Megawati (Indonesia), Mugabe (Zimbabwe), Museveni (Uganda), Nujoma (Namibia), Obasanjo (Nigeria), Ortega (Nicaragua), Perez (Venezuela), Rawlings (Ghana), Walesa (Poland) and Yeltsin (Russia).
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  • This policy insulation from mass opinion could only be achieved through the leadership of Mandela. It was justified by invoking the mantra of “international competitiveness”, and it initially peaked with Mandela’s 1996 Growth, Employment and Redistribution policy. Obeisance to multinational corporations helped shape the terrain on the platinum belt that inexorably generated the Marikana Massacre in 2012, for example. In the South African case, it must be stressed, the decision to reduce the room for maneuver was made as much by the local principals as it was by the Bretton Woods Institutions, other financiers and investors.
  • Ending the apartheid regime was one of the greatest human achievements of the past century. However, to promote a peaceful transition, the agreement negotiated between the racist regime and Mandela’s African National Congress (ANC) allowed whites to keep the best land, the mines, manufacturing plants, and financial institutions, and to export vast quantities of capital.
  • there had been only two basic paths that the ANC could have followed.
  • One was to mobilize the people and all their enthusiasm, energy, and hard work, use a larger share of the economic surplus (through state-directed investments and higher taxes), and stop the flow of capital abroad, including the repayment of illegitimate apartheid-era debt.
  • The other, which was ultimately the one chosen, was to trudge down the neoliberal capitalist path, with merely a small reform here or there to permit superficial claims to the sustaining of a “National Democratic Revolution.”
  • The white ruling bloc’s political strategy included weakening the incoming ANC government through repression, internecine township violence, and divide-and-conquer blandishments offered to leaders by way of elite-pacting.
  • The unbanning of the ANC allowed many of the pacting processes to come above ground, through methodologies such as “scenario planning” promoted first by Shell Oil and then Anglo American, Nedbank and a variety of other corporates during the critical 1990-94 period.
  • So even without going through the process of lending to transitional South Africa, until the IMF’s $850 million loan in 1993, the Bretton Woods Institutions had enormous influence. The Bank carefully recruited ANC officials to work with them in Washington during the early 1990s, and also gave substantial consultancies to local allies in South Africa. But notwithstanding all the political maneuvers associated with the rise and fall of personalities, blocs and ideas during the 1990-94 era, perhaps the most important fusion of the old and new occurred on the economic terrain five months prior to the April 27, 1994 democratic election, when the “Transitional Executive Committee” (TEC) took control of the South African government, combining a few leading ANC cadre with the ruling National Party, which was in its last year of 45 in power.
  • The loan’s secret conditions – leaked to Business Day in March 1994 – included the usual items from the classical structural adjustment menu: lower import tariffs, cuts in state spending, and large cuts in public sector wages.
  • This was justified to an adoring society desperate for reconciliation, because highly creative vote tallying gave the National Party just over 20 percent and Inkatha 10 percent of electoral support and denied the ANC the two-thirds which Mandela himself had stated would be an adverse outcome, insofar as it would dent investor confidence to know the Constitution might be alterable.
  • By mid-1996, with neoliberal economic policy in place, the elite transition was cemented and only provincial power shifts – from Inkatha to ANC in 2004 in KwaZulu-Natal, and from ANC to the Democratic Alliance in 2009 in the Western Cape – disturbed the political power-balance arrangements established in 1994. The ANC continued to receive between 60 and 67 percent of the national votes, and Mandela continued to be venerated after he departed the presidency, for having guided the “miracle” of a political solution to the surface-level problems of apartheid.
  • However, seen from below, the replacement of racial for what we might term “class apartheid” was decisive under Mandela’s rule.
  • Along with Tito Mboweni and Maria Ramos (his future wife), Manuel ensured that a small group of neoliberal managers were gradually brought into the Treasury and SA Reserve Bank.
  • The Congress of SA Trade Unions (Cosatu) and SA Communist Party (SACP) offered similar pragmatists who – no matter their personal predilections and internecine conflicts – could be trusted to impose neoliberal policies, including future trade minister Alec Erwin, Reconstruction and Development Programme minister Jay Naidoo, housing minister Joe Slovo, transport minister Mac Maharaj, and minister-at-large Essop Pahad. This politically-fluid group of change managers within the ANC-Cosatu-SACP Alliance had become trustworthy to the Afrikaners and English-speaking businesses.
  • Without capital controls, the Reserve Bank lost its main protection against a run on the currency. So when one began 11 months later, the only strategy left was to raise interest rates to a record high, resulting in a long period of double-digit prime interest rates.
  • The most important post-apartheid economic decision was taken in June 1996, when the top echelon of ANC policymakers imposed what Finance Minister Manuel termed a “non-negotiable” macroeconomic strategy without bothering to properly consult its Alliance partners in the union movement and SACP, much less its own constituents. The World Bank contributed two economists and its econometric model of South Africa for the exercise, known as “Growth, Employment and Redistribution” (GEAR).
  • The document, authored by 17 white men using the World Bank’s economic model, allowed the government to psychologically distance itself from the somewhat more Keynesian RDP, a 150-page document which in 1994 had served as the ANC’s campaign platform, and which the ANC’s civil society allies had insisted be implemented. An audit of the RDP, however, showed that only the RDP’s more neoliberal features were supported by the dominant bloc in government during the late 1990s.
  • by the late 1990s, mainly through disinvesting from South Africa, the major Johannesburg and Cape Town conglomerates found overseas avenues and reversed the downward profits slide. By 2001 they were achieving profits that were the ninth highest in the industrialised world, according to a British government study.
  • There was a steady shift of the national surplus from labour to capital after 1994 (amounting to an eight percent redistribution from workers to big business in the post-apartheid era), with the major decline in labour’s share – a full five percent fall – occurring from 1998-2001. These processes confirmed the larger problem of choiceless democracy, in which the deal to end apartheid on neoliberal terms prevailed: black nationalists won state power, while white people and corporations would remove their capital from the country, but also remain welcome for domicile, and enjoy yet more privileges through economic liberalization.
  • In the controversial words of one observer, “I am sure that Cecil John Rhodes would have given his approval to this effort to make the South African economy of the early 21st century appropriate and fit for its time.” That was Nelson Mandela in mid-2003, when launching the Mandela-Rhodes Foundation in Cape Town. “Fit for its time” meant the Minerals-Energy Complex and financial institutions at the South African economy’s commanding heights were given priority in all policy decisions, as had been the case over the prior century and a third, along the lines Rhodes had established.
  • the context was stagnation, for overall GDP/capita declined in the late 1990s, and even in 2000 – a growth year after a mini-recession in the wake of the Asian crisis – there was a negative per person rate of national wealth accumulation recorded by the World Bank (in its book Where is the Wealth of Nations?) if we subtract non-renewable resource extraction from GDP so as to more accurately reflect economic activity and net changes in wealth;
  • The transition is often said to be characterized by “macroeconomic stability,” but this ignores the easiest measure of such stability: exchange rate fluctuations.
  • These moments of macroeconomic instability were as dramatic as any other incidents during the previous two centuries, including the September 1985 financial panic that split big business from the apartheid regime and paved the way for ANC rule. Domestic investment was sickly (with less than 2 percent increase a year during the late 1990s GEAR era when it was meant to increase by 7 percent), and were it not for the partial privatization of the telephone company (disastrous by all accounts), foreign investment would not have even registered during Mandela’s presidency. Domestic private sector investment was net negative (below replacement costs of wear and tear) for several years, as capital effectively went on strike, moving mobile resources offshore as rapidly as possible.
  • Recall the mandate for “Growth, Employment and Redistribution”. Yet of all GEAR’s targets over the period 1996-2000, the only ones successfully reached were those most crucial to big business: reduced inflation (down from 9 percent to 5.5 percent instead of GEAR’s projected 7-8 percent), the current account (temporarily in surplus prior to the 2000s capital outflow, not in deficit as projected), and the fiscal deficit (below 2 percent of GDP, instead of the projected 3 percent). What about the main targets?
  • The “E” for employment was the most damaging initial result of South Africa’s embrace of the neoliberal economic approach, for instead of employment growth of 3–4 percent per year promised by GEAR proponents, annual job losses of 1–4 percent characterized the late 1990s. South Africa’s official measure of unemployment rose from 16 percent in 1995 to 30 percent in 2002.
  • Finally, the “R” – redistribution – benefited corporations most because a succession of finance ministers lowered primary company taxes dramatically, from 48 percent in 1994 to 30 percent in 1999, and maintained the deficit below 3 percent of GDP by restricting social spending, notwithstanding the avalanche of unemployment.
  • The big question was whether a variety of social protests witnessed after apartheid by civil society – many groups associated with what was formerly known as the Mass Democratic Movement – would shift social policy away from its moorings in apartheid white privilege and instead towards a transformative approach empowering of poor people, women, youth, the elderly, the disabled and the ill.
  • Mandela had already, in 1992 after the Bisho massacre and in 1993 after the Hani assassination, taken upon himself to cork the anger building below. At the opening of parliament in 1995, Mandela inveighed, “The government literally does not have the money to meet the demands that are being advanced.” As for social policy, “We must rid ourselves of the culture of entitlement which leads to the expectation that the government must promptly deliver whatever it is that we demand.”
  • the Interim Constitution permitted veto power over planning and budgeting with just a third of a council’s seats, again reinforcing residual white power and making rapid change impossible. These compromises of the Interim Constitution, approved by Mandela, meant that prospects for a genuinely democratic local government were reduced to an even lower-intensity level than earlier.
  • The neoliberal critics of progressive block tariffs correctly insisted that such distortions of the market logic introduced a disincentive to supply low-volume users. For them, the point of supplying any good or service was to make profits or at minimum to break even in narrow cost-recovery terms. In advocating against the proposal for a free lifeline and rising block tariff, a leading World Bank expert advised the first democratic water minister, Kader Asmal, that privatisation contracts “would be much harder to establish” if poor consumers had the expectation of getting something for nothing. If consumers weren’t paying, the Bank suggested, South African authorities required a “credible threat of cutting service”. This was the logic that began to prevail during Mandela’s years in power.
  • the size and orientation of social grants were not particularly satisfactory, for according to University of KwaZulu-Natal researchers Nina Hunter, Julian May and Vishnu Padayachee, “The grants do not provide comprehensive coverage for those in need. Unless they are able to access the disability grant, adults are largely excluded from this framework of assistance. It is only possible for the Unemployment Insurance Fund to be received by the unemployed for a maximum of six months and then only by those who were registered with the Fund, for the most part the formally employed.” There were other problems: means-testing was utilized with the inevitable stigmatization that comes with a state demanding proof of poor people’s income; cost-recovery strategies were still being imposed, by stealth, on recipients of state services; the state’s potentially vast job-creating capacity was never utilized aside from a few short-term public works activities; and land and housing were not delivered at appropriate rates.
  • structured superexploitation was exacerbated by an apparent increase in domestic sexual violence associated with rising male unemployment and the feminization of poverty. Women also remained the main caregivers in the home, there again bearing the highest burden associated with degraded health.
  • The most severe blight on South Africa’s post-apartheid record of health leadership was, without question, its HIV/AIDS policy. This could be blamed upon both the personal leadership flaws of presidents Mandela and Mbeki and their health ministers, and upon features of the socio-political structure of accumulation. With millions of people dying early because of AIDS, and approximately five million HIV+ South Africans by 2000, the battle against the disease was one of the most crucial tests of the post-apartheid government. Pretoria’s problem began, arguably, with Mandela’s reticence even before 1994. As he told one interviewer regarding hesitation to raise AIDS as a social crisis, “I was very careful because in our culture you don’t talk about sex no matter what you do.”
  • If Mandela was too coy, and prone to accepting quack solutions like the industrial solvent Virodene proposed by local researchers – and apparently financed with Mbeki’s assistance – then Pretoria’s subsequent failure in the early 2000s to provide medicinal treatment for HIV+ patients led to periodic charges of “genocide” by authoritative figures such as the heads of the Medical Research Council (Malegapuru William Makgoba), SA Medical Association (Kgosi Letlape), and Pan Africanist Congress health desk (Costa Gazi), as well as leading public intellectual Sipho Seepe
  • It is important to add that the government’s regular claim of “insufficient state capacity” to solve economic, social and environmental problems was matched by a willingness to turn resources over to the private sector. If outsourcing, corporatization, and privatization could have worked anywhere in Africa, they should in South Africa – with its large, wealthy markets, relatively competent firms and advanced infrastructure. However, contrary evidence emerges from the four major cases of commodification of state services: telecommunications, transport, electricity, and water.
  • Racial apartheid was always explicitly manifested in residential segregation, and after liberation in 1994, Pretoria adopted World Bank advice that included an avoidance of public housing (virtually no new municipal or even cooperatively-owned units have been constructed), smaller housing subsidies than were necessary, and much greater reliance upon banks and commercial developers instead of state and community-driven development. The privatization of housing was, indeed, one of the most extreme ironies of post-apartheid South Africa, not least because the man taking advice from the World Bank, Joe Slovo, was chair of the SA Communist Party. (Slovo died of cancer soon thereafter and his main ANC bureaucrat, who was responsible for designing the policy, soon became a leading World Bank functionary.)
  • For example, poet-activist Dennis Brutus and Archbishop Njongonkulu Ndungane founded Jubilee South Africa in 1998, and argued that the $25 billion in debt that the Mandela government allegedly owed Western banks should be repudiated. They made the case for default on grounds of “Odious Debt”. Yet on that point, and many others, post-apartheid foreign policy did not return the favour of anti-apartheid solidarity.
  • The state soon turned to the task of systemicatic demobilisation of community groups that had played such an important role in destabilizing apartheid. One example was the SA National Civic Organisation (Sanco), which the ANC began to fund by the late 1990s, leading to a much denuded institution. After all, it was in the urban sphere where most such struggles unfolded (although in 2001 a “Landless Peoples Movement” briefly arose).
  • The solution to the problems that Mandela left behind will only come when a democratic society votes for a political party – probably the one after the ANC fully degenerates and loses power, perhaps in 2019 after six more years of destruction under Jacob Zuma’s rule – to overturn all these inheritances of apartheid capitalism. And then, an eco-socialist and feminist perspective within a strong but loving state will be vital.
  • No one said it better than Mandela himself, when in January 1990 he wrote to the Mass Democractic Movement: “The nationalisation of the mines, banks and monopoly industries is the policy of the ANC, and a change or modification of our views in this regard is inconceivable. Black economic empowerment is a goal we fully support and encourage, but in our situation state control of certain sectors of the economy is unavoidable.”
  • Ironically, though, to transcend the society he has left us, the memory of Nelson Mandela will inspire many. And in one way or another they will always ask, when reminded of the problems caused by the “devil’s pact,” was he pushed or did he jump? Perhaps he did both.
  • To understand why requires combining analysis of the changing structure of capital – especially its worsening unevenness and financialisation – with study of divisions within the subordinate classes.
  • Along with International Monetary Fund (IMF) visits and a 1993 loan, the Bank’s Reconnaissance Missions fused with neoliberal agencies’ strategies during the early 1990s to shape policy framings for the post-apartheid market-friendly government. These were far more persuasive to the ANC leadership than the more populist ambitions of the 1994 Reconstruction and Development Programme (RDP).
  • Bank promotion of “market-oriented” land reform in 1993-94, which established such onerous conditions (similar to the failed policy in neighbouring Zimbabwe) that instead of 30 percent land redistribution as mandated in the RDP, less than 1 percent of good land was redistributed
  • the Bank’s participation in the writing of the (ultimately doomed to fail) Growth, Employment and Redistribution policy in June 1996, both contributing two staff economists and providing its economic model to help frame GEAR
  • In addition, Michel Camdessus, then IMF managing director, put informal but intense pressure on incoming president Mandela to reappoint the two main stalwarts of apartheid-era neoliberalism, the finance minister and central bank governor, both from the National Party.
  • The behind-the-scenes economic policy agreements forged during the early 1990s meant the Afrikaner regime’s own internal power-bloc transition from apartheid “securocrats” (e.g., defense minister Magnus Malan and police minister Adriaan Vlok) to post-apartheid “econocrats” (such as finance minister Barend du Plessis and Reserve Bank governor Chris Stals).
  • A few weeks after liberation in May 1994, when Pretoria joined the General Agreement on Tariffs and Trade on disadvantageous terms as a “transitional” not “developing” country, as a result of pressure from Bill Clinton’s White House, the economy’s deindustrialization was guaranteed.
  • finance minister Manuel let the capital flood out when in 1999 he gave permission for the relisting of financial headquarters for most of the largest companies on the London Stock Exchange. The firms that took the gap and permanently moved their historic apartheid loot offshore include Anglo American, DeBeers diamonds, Investec bank, Old Mutual insurance, Didata ICT, SAB Miller breweries (all to London), and Mondi paper (to New York).
  • the most profitable, fast-growing sectors of the SA economy, as everywhere in the world during the roaring 1990s, were finance, insurance and real estate, as well as communications and commerce, due to speculative and trade-related activity associated with neoliberalism
  • instead of funding new plant and equipment in this stagnant environment, corporate profits were redirected into speculative real estate and the Johannesburg Stock Exchange which by the late 1990s had created the conditions that generated a 50 percent increase in share prices during the first half of the 2000s, while the property boom which began in 1999 had by 2008 sent house prices up by a world record 389 percent (in comparison to just 100 percent in the US market
  • The “G” for growth was actually negative in per capita terms using GDP as a measure (no matter how biased that statistic is in a Resource Cursed society like South Africa).
  • The driving forces behind South African GDP were decreasingly based in real “productive” activity, and increasingly in financial/speculative functions that are potentially unsustainable and even parasitical.
  • Most tellingly, the category of “financial intermediation” (including insurance and real estate) rose from 16 percent of GDP in 1994 to 20 percent eight years later.
  • Meanwhile, labour productivity increased steadily and the number of days lost to strike action fell, the latter in part because of ANC demobilization of unions and hostility to national strikes undertaken for political purposes.
  • average black African household income fell 19 percent from 1995–2000 (to $3,714 per year), while white household income rose 15 percent (to $22,600 per year).
  • The income of the top 1 percent went from under 10 percent of the total in 1990 to 15 percent in 2002, (That figure peaked at 18 percent in 2007, the same level as in 1949.) The most common measure, the Gini coefficient, soared from below 0.6 in 1994 to 0.72 by 2006 (0.8 if welfare income is excluded).
  • In sum, the acronym GEAR might have more accurately been revised to Decline, Unemployment and Polarization Economics.
  • Notwithstanding advertisements by Archbishop Desmond Tutu, its failure coincided with rapid increases in water and electricity prices that were required by the 85 percent cut in central-to-local state operating subsidy funding transfers, leaving municipalities bankrupt just at the stage they were taking on vast numbers of new residents.
  • Thanks to the compromised Interim Constitution of November 1993, 50 percent of the municipal council seats were allocated to that odd combination, while 50 percent went to African townships, serving to break the unity of combined “black” politics.
  • Reflecting the cost-recovery approach to service delivery and hence the inability of the state to properly roll out and maintain these functions, the category of GDP components known as “electricity, gas and water” fell steadily during the Mandela years, from 3.5 percent of the total in 1994 to 2.4 percent in 2002.
  • This would have consciously distorted the relationship of cost to price and hence sent economically “inefficient” pricing signals to consumers. In short, the RDP insisted, poor people should use more essential services (for the sake of gender equity, health and economic side benefits), while rich people should save the environment by cutting back on their hedonistic consumption.
  • FBW ended up being delivered in a tokenistic way and, in Durban – the main site of FBW pilot-exploration starting in 1997 – the overall real cost of water ended up doubling for poor households in the subsequent six years because the FBW was so small, and because the second bloc of water was priced so high. This price hike had the direct impact of causing a decline in consumption by poor people, by one third, during that period’s pandemics of cholera, diarhhoea and AIDS when more water was needed the most, especially in the city with the world’s highest number of HIV+ residents.
  • There were some who argued that these shifts were profound, including Stellenbosch University professor Servaas van der Berg. He insisted that between 1993 and 1997, social spending increased for the poorest 60 percent of households, especially the poorest 20 percent and especially the rural poor, and state subsidies decreased for the 40 percent who were better off; together by counting in non-pecuniary support from the state, Pretoria could claim a one-third improvement in the Gini coefficient. Hence the overall impact of state spending, he posited, would lead to a dramatic decline in actual inequality. Unfortunately, van der Berg (a regular consultant to the neoliberal Treasury Department) made no effort to calculate or even estimate state subsidies to capital, i.e. corporate welfare. Such subsidies remained enormous because most of the economic infrastructure created through taxation – roads and other transport, industrial districts, the world’s cheapest electricity, R&D subsidies – overwhelmingly benefits capital and its shareholders, as do many tax loopholes.
  • Women were also victims of other forms of post-apartheid economic restructuring, with unemployment broadly defined at 46 percent (compared to 35 percent for men), and a massive late 1990s decline in relative pay, from 78 percent of male wages in 1995 to just 66 percent in 1999.
  • One reason was that contemporary South Africa retained apartheid’s patriarchal modes of surplus extraction, thanks to both residual sex discrimination and the migrant (rural-urban) labour system, which is subsidized by women stuck in the former bantustan homelands. These women were not paid for their role in social reproduction, which in a normal labour market would be handled by state schooling, health insurance, and pensions.
  • Life expectancy fell from 65 at the time of liberation to 52 a decade later. Diarrhea killed 43,000 children a year, as a result mainly of inadequate potable water provision. Most South Africans with HIV had, until the mid-2000s, little prospect of receiving antiretroviral medicines to extend their lives.
  • And there was indeed some progress to report because most importantly, perhaps, the national Department of Health committed in 1994 that Primary Health Care (PHC) would be free for pregnant women and children under age six, and in 1996 expanded the commitment to assure all South Africans would not pay for “all personal consultation services, and all non-personal services provided by the publicly funded PHC system”, according to government’s Towards a National Health System statement. Indeed there was a major budget shift from curative care to PHC, with the latter projected to increase by 8.3 percent in average real terms annually. Closures of hospital facilities in several cities were anticipated to save money and allow for redeployment of personnel (although they also affected access, since many consumers used these in lieu of clinics).
  • But of great concern was the difficulty in staffing new clinics (particularly those in isolated areas). There were serious shortfalls in medical personnel willing to work in rural South Africa, requiring two major programmatic initiatives: the deployment of foreign personnel (especially several hundred Cuban general practitioners) in rural clinics; and the imposition of a two-year Community Service requirement on students graduating from publicly-subsidised medical schools.
  • Yet if the personnel issue remained a barrier to implementation, regrettably the Department of Health was ambivalent about mobilising civil society in areas where Community Health Workers could have supported service delivery.
  • ne reason was the pressure exerted by international and domestic financial markets to keep Pretoria’s state budget deficit to 3 percent of GDP, as mandated in GEAR.
  • “That mother is going to die and that HIV-negative child will be an orphan. That child must be brought up. Who is going to bring the child up? It’s the state, the state. That’s resources, you see.”
  • The second structural reason was the residual power of pharmaceutical manufacturers to defend their rights to “intellectual property”, i.e., monopoly patents on life-saving medicines.
  • The third structural reason for the elongated HIV/AIDS holocaust in South Africa was the vast size of the reserve army of labour in South Africa. This feature of the socio-political structure of accumulation allowed companies to readily replace sick HIV+ workers with desperate, unemployed people, instead of providing them treatment. In 2000, for example, Anglo American Corporation had 160,000 employees. With more than a fifth HIV+, the firm began planning “to make special payments to miners suffering from HIV/AIDS, on condition they take voluntary retirement.”
  • Aside from bribing workers to go home and die, there was a provisional hypothesis that “treatment of employees with anti-retrovirals can be cheaper than the costs incurred by leaving them untreated.” However, in October 2001, a detailed cost-benefit analysis showed the opposite. As a result, “the company’s 14,000 senior staff would receive anti-retroviral treatment as part of their medical insurance, but the provision of drug treatment for lower income employees was too expensive.”
  • so much of post-apartheid South Africa’s approach to poor and working-class people: human expendability in the face of corporate profitability.
  • As for the electricity sector, Pretoria announced in 2004 that 30 percent of the Eskom parastatal (the world’s fourth largest electricity producer) would be sold. That position shifted after a Cosatu protest, and soon state policy was to allow 30 percent of generating capacity to come from new Independent Power Producers. Meanwhile, still anticipating deeper institutional privatisation, a corporatizing Eskom fired thirty thousand electricity workers during the 1990s.
  • the state expanded spending on nuclear energy research. This occurred first through pebble-bed reactor technology in partnership with US and British firms and then after that investment (in the range of $2 billion) was written off, ordinary nuclear reactors were authorized that were estimated to cost $60 billion or more.
  • lthough water and sanitation privatization applied to only 5 percent of all municipalities, the South African pilot projects run by world’s biggest water companies (Biwater, Suez, and Saur) resulted in a number of problems related to overpricing and underservice: contracts were renegotiated to raise rates because of insufficient profits; services were not extended to most poor people; many low-income residents were disconnected; prepaid water meters were widely installed; and sanitation was often substandard. It was simply not in the interests of Paris or London water corporations to provide water services to people who could not afford to pay at least the operations and maintenance costs plus a profit mark-up.
  • Cost-recovery policy applied in northern KwaZulu-Natal led to the continent’s worst-ever cholera outbreak, catalyzed by mass disconnections of rural residents in August 2000, for want of a $10 per household connection fee, which forced more than a thousand people to halt consumption of what had earlier been free, clean water.
  • With privatization came more intense class segregation. By 2003, the provincial housing minister responsible for greater Johannesburg admitted to a mainstream newspaper that South Africa’s resulting residential class apartheid had become an embarrassment: “If we are to integrate communities both economically and racially, then there is a real need to depart from the present concept of housing delivery that is determined by stands, completed houses and budget spent.”
  • Unfortunately it was the likes of Geffen, the commercial bankers and allied construction companies who drove housing implementation, so it was reasonable to anticipate no change in Johannesburg’s landscape – featuring not “quality houses” but what many black residents term “kennels.” Several hundred thousand post-apartheid state-subsidized starter houses were often half as large as the 40 square meter “matchboxes” built during apartheid, and located even further away from jobs and community amenities.
  • For example, in spite of water scarcity and water table pollution in the country’s main megalopolis, Gauteng, the first two mega-dams within the Lesotho Highlands Water Project were built during the late 1990s, with destructive environmental consequences downriver, and the extremely high costs of water transfer deterred consumption by poor people in Gauteng townships. One result was the world’s highest-profile legal case of Third World development corruption.
  • Rural (black) women still stand in line for hours at communal taps in the parched former bantustan areas. The location of natural surface and groundwater remained skewed towards white farmers due to apartheid land dispossession, and with fewer than 2 percent of arable plots redistributed by 2000 (as against a 1994-99 RDP target of 30 percent), Pretoria’s neoliberal land policy had conclusively failed.
  • Thanks to accommodating state policies, South African commercial agriculture remained extremely reliant upon fertilizers and pesticides, with Genetically Modified Organisms increasing across the food chain and virtually no attention given to potential organic farming markets. The government’s failure to prevent toxic dumping and incineration led to a nascent but portentous group of mass tort (class action) lawsuits. The victims included asbestos and silicosis sufferers who worked in or lived close to the country’s mines.
  • Indeed by 2012, South Africa was recognized as the fifth worst environmental performer out of 132 countries surveyed by Yale and Columbia University ecologists. Moreover, the South African economy’s contribution to climate change was amongst the world’s highest – twenty times higher than even that of the US – when carbon intensity is measured (CO2 equivalents emitted each year per person per unit of GDP).
  • A 2011 edition of Changing Wealth of Nations calculates a 25 percent drop in South Africa’s natural capital mainly due to land degradation. By 2008, according to the ‘adjusted net savings’ measure, the average South African was losing $245 per person per year.
  • There were other examples of Pretoria’s anti-solidaristic foreign relations, in which democrats and social justice activists suffered because of elite links between the ANC and tyrants: the Indonesian and East Timorese people suffering under the corrupt dictator Suharto, Nigerian democracy activists who in 1995 were denied a visa to meet in Johannesburg, the Burmese people (thanks to the Myanmar junta’s unusually friendly diplomatic relations with Pretoria), and victims of murderous central African regimes which were SA arms recipients.
  • Pretoria’s support for tyrants in Swaziland and Zimbabwe were the most extreme cases, especially after Mbeki took power in 1999 and democrats rose to challenge tyrants.
  • The occasional exception – his outrage at the execution of Nigerian environmental activist Ken Saro-Wiwa – proved the rule; the unanimous backlash against Mandela by other African elites convinced Pretoria not to side with democratic movements.
  • By 1995, Mandela pronounced, “Let it be clear to all that the battle against the forces of anarchy and chaos has been joined,” referring to the rumble of mass actions, wildcat strikes, land and building invasions and other disruptions. Thus, while often dismissed as Mandela’s honeymoon period, the 1994-99 phase of post-apartheid capitalist consolidation included anti-neoliberal protest by trade unions, community-based organisations, women’s and youth groups, Non-Governmental Organisations, think-tanks, networks of CBOs and NGOs, progressive churches, political groups and independent leftists.
  • There, capital began to earn a status as the ANC’s ally of deracialisation. The most important voice of business was the Johannesburg-based Urban Foundation, later renamed the Centre for Development and Enterprise, which attempted to win civics to their position. One of its leading strategists, Jeff McCarthy, had argued that winning civics over to a “market-oriented” urban policy would “hasten the prospect of alliances on broader political questions of ‘vision’.” In other words, a consensus on urban issues would then form the basis for a new post-apartheid political order.
  • Until 1994, the civics were resolutely anti-capitalist but after demobilisation began in earnest in the wake of the country’s May 1994 liberation, Sanco turned to a corporatist relationship with the ruling party, leading in the late 1990s to a revival of the civics under a new guise, more commonly referred to as the “new social movements”.
  • ritical civil society of this sort was meant to be nurtured, according to official documents such as the 1994 RDP: “Social Movements and Community-Based Organisations are a major asset in the effort to democratise and develop our society. Attention must be given to enhancing the capacity of such formations to adapt to partially changed roles. Attention must also be given to extending social-movement and CBO structures into areas and sectors where they are weak or non-existent.” This did not happen, as an enormous funding boost meant for civics and other CBOs in late 1994 was diverted by Roelf Meyer and Valli Moosa of the Ministry of Constitutional Development into advertising (by Saatchi&Saatchi) the state’s unsuccessful Masakhane campaign, aimed at getting poor people to start paying for state services they had boycotted payment for during apartheid.
  • erhaps the most charitable interpretation of the state-society relationship desired by the ANC can be found in an important discussion paper circulated widely within the party. Author Joel Netshitenzhe insisted that, due to “counter-action by those opposed to change,” civil society should serve the ruling party’s agenda:
  • When “pressure from below” is exerted, it should aim at complementing the work of those who are exerting “pressure” against the old order “from above.”
  • Still, as the first Mandela moment of post-apartheid South Africa passed, something bigger began to jell around 1999, when social movements emerged to offer radical challenges to the status quo, including the Treatment Action Campaign with their stunningly successful single-issue concerns about AIDS medicines, and the new urban social movements with their much broader potential but much greater disappointments. It is, in their wake, that the traditions of Mandela can best be recalled: full liberation, even if as President there was less socio-economic and environmental progress than there should have been.
  • What is Mandela’s legacy, if not cementing the worst features of these systems, aside from beginning to undo their correlation with racism?
Arabica Robusta

Pambazuka News - Ghana: Why the North Matters - 0 views

  • With the introduction of structural adjustment, projects and activities depending on the government were scaled down. While the idea of privatisation could somehow work in the South, as there was an elite and foreign companies to take over these activities, such conditions did not apply in the North. The factories ground one by one to a halt. Commercial farms went into receivership. Employment and income collapsed. The market players, who were to exploit the opportunities afforded by the withdrawal of the government, simply were not ready for it. Whatever economic elite had started to develop either sank back into obscurity or joined their brethren in the south.
  • National policies, ostensibly designed so as not to favour specific parts of the country, end up disadvantaging the North. The Ghana School Feeding Programme (GSFP) was originally conceived as a programme focusing on ‘Hunger Hotspots’, and was therefore targeted at the North. For obvious political reasons, the government decided instead to make it a national policy benefiting all districts equally. But with programme management using its discretionary powers, individual districts were able to lobby for additional schools. Inevitably, such districts were politically well connected and close to the physical and political centre. With as end result that Greater Accra, Ashanti and Brong Ahafo Regions receive a whopping 70 % of the total funding for school feeding (leaving the other 7 Regions to fight over the remaining 30 % of the funds). The three northern Regions, home to 30 % of the total poor in Ghana, receive a paltry 7 % of the funding!
  • The distribution of HIPC funding tells a similar story. The Highly Indebted Poor Country (HIPC) initiative was an attempt by the World Bank and IMF to reduce the debt burden of the world poorest countries. One of the first major policy initiatives of the new NPP government when it attained power in 2001 was to apply for HIPC status. A special account was opened, whereby the money which otherwise would have been used for debt re-payment would be channelled to special spending targeted at the poor. But once again the reality was different. While the Ghana Poverty Reduction Strategy 2003-2005 planned that almost half of the HIPC funds would be used in northern Ghana, in reality this was only 17 %, just about one third of what was planned! The remaining 83 % of the projects went to southern Ghana, for which only 52 % had been planned.
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  • It cannot be denied that northern Ghana has recorded considerable progress since independence.
  •  
    Unequal and uneven development inherited from British colonialism by present day Ghana continues to divide the North from the South. For Samuel Zan Akologo and Rinus van Klinken "Sierra Leone, Cote d'Ivoire, Liberia and Togo are gory reminders" should serve as warning to the Ghanian leadership that it must change course.
Arabica Robusta

Pambazuka - Where are the people who are going to change things? - 0 views

  • Compaoré is not alone in extending presidential term limits. President Yoweri Museveni of Uganda disposed of them altogether when he amended the Ugandan constitution. Yet both these men deposed their predecessors on the grounds of incompetence, repression and corruption.
  • Despite what melancholic lyrics may suggest, they exist – the men and women who want to change things. In the months leading up to the 2006 elections in Uganda, there were demonstrations outside the Central Police Station and the High Court where an opposition presidential candidate, Dr Kiiza Besigye, was first detained and then brought to trial. The big open air Nakasero Market is located a mere 200 metres from there. On one of the trail days, I found the market deserted. Everyone was at court, I was told.
  • The West was willing to help with the rehabilitation. The only condition: that the leaders sign up for IMF economic structural adjustment programmes. Should someone who actually needs micro-finance really borrow a large development loan without hope of ever paying it off? Was there really a choice? For Sankara there was. He declined all offers. His disagreement with what he called “debt imperialism” became the centrepiece of many of his speeches. “We can produce enough food to feed ourselves….Malheureusment, for lack of organization we still need to beg for food aid. This type of assistance is counter-productive and has kept us thinking that we can only be beggars who need aid…I am asked ‘Where is imperialism?’ Just look at your plates, you see imported corn, rice or millet. C’est ça, c’est ça, l’ímperialism. Let’s not look any further [i].”
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  • It is heartbreaking to watch the video footage [iv] of Sankara appealing to his fellow presidents to repudiate unfair debt agreements with IMF and other foreign creditors at the Organization of African Unity Summit in 1987. He accused them of degrading their people. He says, only half-jokingly, that if they do not support him he is going to be assassinated: “I may not make it to the next meeting.”
  • On the face of it, General Yoweri Museveni, the Ugandan president, seemed of similar mettle to Sankara. Anecdotes confirming his revolutionary credentials arrived thick and fast in the diaspora. It was said that at State functions he drank from plastic (or was it tin?) mugs rather than long-stemmed wine glasses. (It is possible he was merely adjusting from the bush war.) He too repudiated debt as a solution to all that ails Africa. But after an attempt to barter trade with neighbouring countries he gave in to the beckoning finger of the North.
  • His daughter was flown to Germany in a Lear jet to give birth to her child at a cost of GBP 70,000 if you believe the British media or GBP 20,000 if you believe Government. In either case, his official statement was clear, “When it comes to medical care for myself and my family there is no compromise [vi].” The families of the 16 women a day who die in childbirth for lack of essential drugs, properly motivated (or simply paid) staff and lack of equipment held their peace.
  • A pattern emerges. Genuine agents of change die young. Either they do not make it to State House or they die while there (with the possible exception of Jerry Rawlings in Ghana). Such is the dynamic. The rest capitulate early while continuing to assume the demeanour of revolutionaries. They can do so because Western powers are willing to turn a blind eye to their increasing profligacy in return for their signatures on a succession of documents keeping their countries in debt bondage.
Arabica Robusta

Pambazuka - Washington in Africa 2012 - 0 views

  • instead of making the world safer, America’s violation of international human rights abets our enemies and alienates our friends’
  • Sorry, but we recall Washington’s deregulatory support for Wall Street’s market-driven binge, which in 2008-09 contributed to the worst global economic crash in 80 years, resulting in around a million South African job losses. We know that only the wealthy recovered so far, and that in the US, the top 1 percent received 93 percent of all new income since 2009, because the system wasn’t fixed. And who can forget White House hypocrisy when it comes to vast and often illegal US agro-corporate subsidies which continue to thwart African production? And is there any capital city whose political system is more corrupted by corporate (especially banking) campaign contributions than Washington, resulting in such extreme malgovernance that Obama cannot even make an effort to convict a single banker for world-historic economic misdeeds?
  • incorporating the wasting of Africa’s ‘natural capital’ (a silly phrase but one used increasingly by powerbrokers eyeing the ‘Green Economy’). Measuring this loss is something that 10 African leaders agreed to start doing so in May, in the Gabarone Declaration initiated by Botswana president Ian Khama and the NGO Conservation International. The adjustment entails counting the outflow of natural capital (especially non-renewable mineral/petroleum resources) not only as a short-term credit to GDP (via ‘output of goods’ measuring the resources extracted and sold), but also as a long-term debit to the natural capital stocks, as non-renewable resources no longer become available to future generations. Number-crunch the resource depletion, and net wealth declines in Africa as well as the Middle East.
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  • The continent-wide Resource Curse makes the Marikana massacre look like a picnic, and allows us to dismiss Spector’s article as the kind of idle spin-doctoring fluff one gets from the State Department’s US Information Service (his former employer). But that is not a particularly satisfying place to leave matters, for the broader assumptions about the US in Africa also need a rethink, in part because South Africa is hosting the BRICS summit in Durban next March, and we’re being subjected to rhetoric from Pretoria about a ‘new dynamic’ in the emerging market power bloc, supposedly challenging the sole-superpower system of global governance.
  • Thanks to White House patronage, murderous African dictators still retain power until too late, most obviously Egypt’s Hosni Mubarak, who is personally worth at least $40 billion (according to an ABC News report) and who was recipient of many billions of dollars in US military aid in the 18 months following Obama’s speech. As Carson’s boss Hillary Clinton remarked in 2009, ‘I really consider President and Mrs. Mubarak to be friends of my family,’
  • Amongst the 40 were Cameroonian dictator Paul Biya, and as his office reported, ‘At the end of the two and half hours that they spent together, most of the African leaders left the dining hall visibly satisfied.’
  • also have some sort of response should they not heed these warnings not to proceed?,’ the official answer was chilling: ‘I think we haven’t telegraphed any response at this point.’ One reason not to annoy Jammeh was the US Central Intelligence Agency’s reliance upon a Banjul airport as a secret destination and refueling site for ‘rendition’ victims, that is, the illegal transfer of suspected terrorists to countries carrying out torture on behalf of Washington.
  • former US National Security Council official John Prendergast’s concern about ‘a vexing policy quandary’ in Washington’s relations with Ethiopia, Rwanda, Uganda and South Sudan: ‘All of them have served American interests or have a strong US constituency, but all have deeply troubling human rights records.’ (Whether this is a ‘vexing quandary’ or instead best described as a time-honoured tradition is up to the reader to decide.)
  • why launch this latest enterprise of dubious value? Well, when you have created an AfriCom, when you have staffed it with a few thousand personnel, when you have a Special Forces corps numbering 60,000, when you have a vastly expanded CIA Operations Division, and when American strategic thinking is still locked in the auto-pilot mode set in September 2001 – when all these forces are at work, there will be action.’
  • within a few months, that the Central Intelligence Agency was extremely active in Somalia and that mercenaries (such as Bancroft Global Development) were Washington’s hired guns, as Carson admitted to the New York Times, ‘We do not want an American footprint or boot on the ground.’ Hence, according to The Times, drones were used against the Shabab (Al-Qaeda’s allies in Somalia).
  • The 2006 invasion of Somalia by the Ethiopian forces was clearly a proxy war, with AfriCom providing the logistics-allowing a criminal organization like al-Shabab to claim a legitimate reason for its war and brutal terror against the very people both sides claim to be freeing: the poor ordinary Somalis.’
  • On two occasions (1994 and 1996) I worked in the office of a man officially labeled a ‘terrorist’, a South African targeted by the CIA in the early 1960s and only taken off the US State Department’s no-entry ‘terror watch-list’ in July 2008 (!) thanks to a formal Congressional intervention.
  • As WikiLeaks demonstrated, Washington is choc full of pathological hypocrites.
  • Another source of oil disruption in Nigeria of concern to Washington was a civil society case against Shell Oil in May 2012 in which Shell argued it should have no human rights liabilities because of its corporate status, a position that the US rejected when it came to US citizens’ rights to sue. ‘But when the Supreme Court ordered a rehearing in the case, and asked whether human rights lawsuits could be brought when the abuses happened outside the US,’ according to EarthRights International’s Marco Simons, Washington actually sided with Shell. ‘Obama is saying that if a foreign government abuses human rights, we can bomb them, like we did with Libya. But we can't hold anyone accountable in court, because that would threaten international relations.’
  • That means wherever there is socio-ecological, religious and economic pressure, such as Uganda and Somalia, Washington’s instinct is the iron fist, followed by denialism and ‘goo-goo’ good-governance rhetoric. ‘From Carson's presentations two years in a row at the annual African Studies Association meetings, most of us felt we heard the same speeches we heard in the Bush Administration,’ says Wiley.
  • Horn’s evidence is not only that Kony has not been seen for years in Uganda, but that Obama also ‘quietly waived restrictions on military aid to Chad, Yemen, Sudan, and the Democratic Republic of Congo’ even though their armies all have recent documented records of recruiting child soldiers.
  • Indeed, it is appropriate to ask why backwardness prevails in countries that are only ‘useful’ insofar as they have resources. Of course, oil and minerals are not Washington’s only economic objective. As WikiLeaks revealed after a February 2010 meeting with Ethiopian dictator Meles Zenawi, ‘Carson encouraged Meles to hasten steps to liberalize the telecommunications and banking industries in Ethiopia,’ according to the secret State Department cable. An additional economic objective, also revealed at that meeting, was the destruction of the Kyoto Protocol’s binding cap on greenhouse gas emissions, a project that Obama and the heads of Brazil, China, India and South Africa agreed to in Copenhagen at a UN climate summit in December 2009. As WikiLeaks demonstrated, much diplomacy in subsequent weeks was aimed at achieving buy-in even if that entailed bribery and coercion.
  • with Obama half-Kenyan by ancestry (a factor regularly raised by right-wing commentators who even make ridiculous claims as to the land of his birth), this treatment should not be considered as specifically anti-African; instead, it is best described as pro-corporate. For Washington’s whacking of Africa is not so different than the whacks its rulers give everywhere.
  • further information has become available about former constitutional law professor Obama’s personal role in civilian-killing drone warfare (including US citizen victims), cyberterrorism, warrantless eavesdropping, suppression of civil liberties, lack of transparency and other apparent contradictions. However, do these contradictions represent, as Prendergast put it, a vexing quandary – or instead, a tradition?
  • according to American University professor Sean Flynn, Obama ‘endorsed a set of policy proposals in its trade negotiations with developing countries that is much worse for access to medicine concerns than those of any other past administration.’
  • Africa and so many other examples show how the Obama Administration has become a rotten fusion of the worst instincts within neoliberalism and neoconservatism. I hope that on November 6, he soundly defeats Mitt Romney, who is worse on all counts except the ability to huckster people in Africa that Washington acts in their interests.
  • Last year, citing US national security interests, Obama issued a waiver so as to send more than $200 million in military aid to US-allied regimes in Somalia, the Democratic Republic of the Congo, Libya, South Sudan and Yemen in spite of a 2008 US law prohibiting such funding because of their armies’ recruitment of child soldiers. According to Human Rights Watch’s Jo Becker, ‘The Obama administration has been unwilling to make even small cuts to military assistance to governments exploiting children as soldiers. Children are paying the price for its poor leadership.’
Arabica Robusta

Coal versus Communities in Mozambique: Exposing poor practices by VALE and Rio Tinto - 0 views

  • This paper by Dr. Claude Kabemba and Camilo Nhancale for the Southern Africa Resource Watch (SARW), entitled Coal versus Communities in Mozambique: Exposing poor practices by VALE and Rio Tinto, details many of the problems associated with the massive new coal mines from lack of contractual transparency to preference for expatriate workers and foreign suppliers to the unjust resettlement programme, which sparked protests in early January.
  • Vale reportedly paid US$123 million dollars for the mining rights but the money has never been registered with state agents. If this is correct, Vale’s presence in Mozambique – far from benefiting citizens – is undermining revenue transparency and accountability.
  • Vertical integration is undermining local entrepreneurshipThe two investments have provided a new lease of life to Tete Province. There are new economic activities opening up and an influx of people descending on the town. But beneficial links between the extractive companies and local communities do not really exist.
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  • A Southern Africa Resource Watch (SARW) research team visited three communities resettled by Vale and Rio Tinto – Mualadzi, a Rio Tinto resettlement compound located about 40km from the original Capanga village; Cateme village, a Vale resettlement compound with 720 families from the villages of Chipanga, Mitete, Malabue-Gombe and Bagamoyo; and 25 de Setembro, another Vale resettlement compound housing people from the same four villages. Vale deliberately divided the communities in two with employed villagers moving to 25 de Setembro since it is closer to Moatize and the mine. The unemployed were sent to Cateme, 40 km from the town.
  • Vale has also used the resettlement process to divide communities into those with formal and those with no formal work. The impression that this model gives is that uneducated and unemployed members of a community can be dumped anywhere.
  • Communities fear that if they continue to be relocated in small groups before all the construction work is done, their legitimate demands will never be met. As they have learned from the people who have already been resettled in Cateme and Mualadzi, the companies are reluctant to complete projects once communities have been relocated.  Rio Tinto moved people to Mualadzi before it had finished building key infrastructure such as school and clinics – and they have still not been built.
Arabica Robusta

Pambazuka - Contextualizing Obama's visit to Africa - 0 views

  • Both former Presidents Bill Clinton and George W. Bush visited Africa during their second terms in office. When Clinton and Bush made their journeys to Africa, the US foreign policy establishment had been guided by a three-pronged mantra. These were: (a) the notion that Africa was facing a “threat” from international terrorists, (b) that the United States had strategic interests in Africa (especially with the flow of petroleum resources), and (c) the emerging competition with China. The crisis of capitalism since 2008 and the hype about petroleum and gas self-sufficiency as a result of shale oil and new gas finds in the United States have added another layer to all. More importantly, the US plans for confronting China in Africa have been tempered by the reality that the US policy makers have to beseech China to continue to purchase US Treasury Bills. [3]
  • Obama would appear hypocritical in making these panned statements about supporting democracy in Africa. While that has not stopped past presidents, this time the cat is out of the bag. The multiple scandals surrounding the banks and the extent of the corruption of Wall Street exposed by Matt Taibbi and others have dwarfed any discussion of corruption in Africa. America’s inability to rein in the mafia-style activities of the bankers is open and in full view of the world audience.
  • The main drivers of US foreign policy: Wall Street Bankers, petroleum and the military planners (along with the private military/intelligence contractors) have now been overtaken by a sharp shift in the engine of the global economy coming out of Asia. As more news of the corruption of the rigged financial architecture is revealed, all of the states of the G77 are looking for an alternative financial system that can protect them from the predators of Wall Street.[5]
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  • The nervousness and anxiety of the West over the future of the U.S. financial dominance was quite clear from the communique issued after the recent 2013 G8 meeting in Ireland. Most of the points in the communique issued by the White House (the Lough Erne Declaration) dealt with the challenges coming out of Africa and the role of transnational corporations plundering African resources without paying taxes.[8] Prior to the G8 meeting, the 2013 Report of the Africa Progress Panel headed by former Secretary General of the United Nations, Kofi Anan, called on the same G8 leaders to police their corporations. The Panel had called for inter alia:
  • The destructive extraction of resources from Africa is old and has taken new forms, as Patrick Bond reminds us in Looting Africa: The Economics of Exploitation.[10] For the past six decades the World Bank domination of economic arrangements in Africa has seen the period of dramatic capital flight from Africa.[11]
  • The multi-billion dollar enterprise of looting Africa was at the foundation of an international system that increasingly worked on the basis of speculative capital. The World Bank and the IMF understood that the real foundations of actual resources were to be found in Africa. To conceal the looting and plunder, the West disguised the reality that Africa is a net creditor to the advanced capitalist countries (termed “donors” in neo-liberal parlance). For this reason (and to perpetuate the myths of “spurring economic growth and investment”), the United States government has been caught in a losing battle where new rising forces such as Brazil, Russia, India, China, Turkey, South Korea and other states offer alternatives to the structural adjustment and austerity packages.
  • The fallout from the Libyan intervention has created insecurity and violence in all parts of North Africa and the Sahel, with racist elements within this Libyan uprising persecuting Africans as mercenaries.
  • From the writers in the US academic establishment, the NATO intervention was a success. [14] However, decent peoples in all parts of the world have been outraged by the continued violence and the support for the murderous militias by Turkey, Qatar, and Saudi Arabia. The persecution of the citizens of Tawergha stands as a permanent repudiation to the NATO intervention in Libya.
  • The previous justifications for US engagement had been part of the logic for the establishment of the US Africa Command. For a while there was the fiction that the United States was supporting growth and trade (via the Africa Growth and Opportunity Act (AGOA)), but the militarization of the engagement with Africa intensified after then Vice President Dick Cheney’s energy task force had designated African petroleum as “strategic” and colluded with Donald Rumsfeld to establish the Africa Command (AFRICOM).
  • In June 2012, the White House issued a new policy statement on Africa. What was striking about this new White House Statement was that there was no mention of the US Africa Command. The document was titled, “Policy towards Sub-Saharan Africa.”[16] Many Africans did not pay much attention to this old ruse of seeking to divide Africa between so called sub- Saharan Africa and North Africa. The reality of the African Union is something that the US policy makers do not want to recognize; hence the State Department maintains the nomenclature of sub-Sahara Africa.
  • When John Kerry spoke at the 50th anniversary of African Unity in Addis Ababa in May 2013, the U.S. Secretary of State did not mention the U.S. Africa Command or the War on Terror. Instead John Kerry spoke of the fact that his wife, Teresa Heinz Kerry, was part of the anti-apartheid struggles in Southern Africa when she was a student at the University of Witwatersrand.
  • While there are no funds to support educational exchange, in the week of June 19, 2013, the US Senate under the initiative of Republican Senator James Inhofe authorized, “the Department of Defense to obligate up to $90 million to provide logistical support to the national military forces of Uganda to mitigate or eliminate the threat posed by the Lord’s Resistance Army (LRA) and bring an end to the murderous campaign of LRA leader Joseph Kony.”[18] This clear support of the conservatives in the United States for the Yoweri Museveni government in Kampala, under the guise of fighting Kony, comes at a moment when the Museveni leadership is being challenged, even from its own officer corps. [19] More importantly, Republican Senator James Inhofe and the conservatives who initiated this new authorization are bent on supporting a regime where there are elements who believe that same-gender loving persons should be put to death.
  • When U.S. Attorney General Eric Holder was testifying before the Senate Judiciary Committee about the corruption of the banks he stated, “I am concerned that the size of some of these institutions becomes so large that it does become difficult for us to prosecute them.” Prosecutors, he said, must confront the problem that “if you do prosecute, if you do bring a criminal charge, it will have a negative impact on the national economy, perhaps even the world economy. And I think that is a function of the fact that some of these institutions have become too large.”[21]
  • When Obama entered the White House in January 2009, Secretary of the Treasury Timothy Geithner advised him that prosecuting the banks would have a negative impact on the world economy.
  • Gary Yonge in the Guardian made the excellent argument in pointing out that Barack Obama is the Commander in Chief of the United States and is captive to US imperial power. In the article titled, “Is Obama Worse than Bush? That's Beside the Point,”[22] Yonge traced the statements of Obama the candidate to the realities of Obama as the President of the United States. His argument, that it is beside the point whether Obama is worse than Bush, is worth considering in light of the reality that the capitalist crisis facing the United States is far worse than when Bush was President 2001-2009. I will agree that the conditions of the repressive nature of the state have intensified in the midst of the global insecurity of capital, but where I would differ with Yonge would be for the progressive forces to intensify the efforts to hold the bankers accountable so that the militarists and the bankers do not take the world into other military catastrophes.
  • Recently, Obama appointed Susan Rice as the National Security Adviser. Rice had been groomed in anti-communism by the Madeline Albright and Clinton factions of the establishment. When Susan Rice was student at Oxford in the 1980s, she reputedly looked the other way when students such as Tajudeen Abdul Raheem were opposing apartheid. She was a member of the ignominious Bill Clinton national security team that pressured the United Nations not to intervene at the time of the Rwanda genocide in 1994.
  • Since those two journeys in June and July 2009, Obama has had to hide his understanding of Africa because he has been faced with a racist group called the Birthers who claim that he was born in Kenya and is therefore illegitimate as a President. There is another strong constituency that alleges that Obama is a Muslim. Obama can rightly claim his Irish heritage from his mother’s side, but is mortally afraid of making any statement that may suggest that he is familiar with the political struggles in Africa.
  • We know from the book by Richard Wolffe, Renegade: The Making of a President, that during the height of the Democratic Party primary battles in Iowa in January 2008, Obama had invited his sister, Auma Obama, to Iowa so that he could be kept abreast of the social forces behind the violence in Kenya at the time. When he drove around Iowa, his sister was briefing him on the issues that sparked the opposition to the theft of the elections. While preoccupied with the Iowa caucuses he was calling Kenya, reaching out to Desmond Tutu and taking an active role in seeking an end to the incredible violence that took hundreds of lives.[24] Since 2009 the Kenyans have been building a massive airport at Kisumu so that Air Force One could land in Western Kenya. This was in anticipation of the visit of Obama to visit his relatives. All of the planning for a Kenyan visit has had to be put on hold because of the outstanding questions of the initiators of the chilling violence that overtook Kenya in January 2008. Obama has instead opted to visit neighboring Tanzania.
  • Col. Lawrence Wilkerson has stated more than once that the arming of Syrian rebels will be a backdoor to the war against Iran.[27]
  • The Obama administration has been trapped by the history and practices of financial industry, the military intelligence corporations and the petroleum companies. From very early in 2009, the Obama administration understood that financial innovation was not socially valuable.
  • Those conjuring the “stress tests” are quite aware of the scholarly output as well as the activists who are now standing up for Africa.[31]
  • Official statements from the US Africa Command about peacekeeping and humanitarianism in Africa have been silent on the warfare and plunder in the Eastern Congo where the military allies of the United States, Rwanda and Uganda have been indicted for looting the natural resources of the Democratic Republic of the Congo. This week John Kerry as the Secretary of State appointed former Senator Russ Feingold of Wisconsin as the Special Envoy to the DRC.
  • The legacies of enslavement, colonialism and apartheid dominate the social landscape in Africa. Recent scholarship on the health impacts of enslavement have pointed out the contemporary health questions in the African community in the West that emanate directly from slavery. [33] Harriet Washington in the excellent book, Medical Apartheid: The Dark History of Medical Experimentation on Black Americans from Colonial Times to the Present [34] has deepened our understanding of how many of the health practices of contemporary western medicine can be traced back to the era of enslavement.
  • In those fifty years, the US undermined the processes of self-determination, supported the apartheid regimes in Southern Africa (Namibia, South Africa and Zimbabwe along with the Portuguese colonial forces in Angola and Mozambique), supported Jonas Savimbi for over twenty years, intervened in Somalia, destabilized the DRC by supporting Mobutu Sese Seko or thirty years, and most recently supported NATO to create havoc in Libya. At the most recent meeting of the African Union in Addis Ababa in May 2013, there were clear statements from the grassroots for the immediate unification of Africa. The confidence of the Global Pan African Family was clearly on display. The Obama administration understands the deep desires for change in Africa. Many of the current leaders who occupy office in Africa are teetering on the brink of extinction. There must be a break from the old US policy towards Africa that propped up tyrants and looters. While the media is complaining about the cost of the trip, the progressive intellectuals and activists in the US and in Africa must organize to oppose militarism and plunder in Africa. This is an inopportune moment for Obama to travel to Africa unless he is going to repudiate the growing police state that he is supervising. The mainstream establishment of the United States of America has nothing substantial other than militarism to offer Africa. This trip to Africa is a PR effort to solidify his legacy and garner waning support from his base in the United States.
Arabica Robusta

Democracy Today: The case of the Democratic Republic of Congo | Pambazuka News - 0 views

  • Democracy, or more accurately democratic materialism, has become the dominant ideology. It is increasingly obligatory to be a democrat. It has almost become the single political thought. Democratic materialism asserts that there are only bodies marked by languages, and nothing else. There is only one market, one politics, one economy.
  • Democracy has become a package of 'techniques' — constitutions, electoral mechanisms, management systems — to be exported or imposed, top-down, on Third World countries.
  • The world becomes divided in a Manichean manner: good democracy versus bad democracy (the recent experience of the Palestinians); good Muslim versus bad Muslim (Mamdani 2004); good states versus rogue states; democrats versus terrorists. And are these the fuelling dynamics of globalisation?
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  • On the other hand, the national liberation mode of politics which opened up with the independence of India, died with the assassination of Salvador Allende and Amilcar Cabral in 1973. That was the most active period of transformative politics the world has seen — with leaders such as Ghandi, Mao Tse-tung, Fidel Castro, Frantz Fanon, Ho Chi Minh. The imposition of draconian structural adjustment programmes on impoverished countries, and the recent very aggressive imperial interventions — in Iraq, Afghanistan, Haiti, Lebanon, and the protracted resistance of people in those countries, are reawakening hope for other active, transformative politics in the world.
  • From the very beginning, with the precipitous granting of independence on 30 June 1960 by Belgium, the Congolese have never had a chance, by themselves and without external interference, to debate the parameters of the definition of the crisis they have protractedly been facing since the crusaders of the Cold War dismantled the nationalist regime and assassinated Patrice Lumumba. Even the so-called Sovereign National Conference (SNC), singling out Mobutu as the cause of every evil, ended up failing to grasp the significance of the impact of the Cold War on the country. It finally adopted a proposal by Herman Cohen — a former US under secretary of state for African Affairs — to keep Mobutu in power and reduce only his powers. Such a solution, later on, turned into a farce.
  • The elections were organised mostly on the basis of external financing. This gave external forces the leverage to control the process, its pace, scope and order of priorities. Ascendancy to their preferences made a mockery of national sovereignty in the elections: of the democratic project as a whole. Almost no funds were allocated to the crucial task of civic education for the electorate.
  • Very briefly, the so-called democratic project has been, in the DRC, another process of grafting a Western experience of democracy, reduced to a 'universal model', on to an ill-prepared and un-attendant Congolese political soil, justified, aposteriori, as a necessary consequence of globalisation.
  • If if is the case that the Bakongo nation consisted of all the consistent anti-colonialists from 1921 (with Kimbangu’s Kintwadi) up until to 1959 (January 4th uprising), the core of the Congolese nation struggling for national independence,as F. Fanon and A. Cabral asserted, one should not be surprised that some of their descendants are leading the struggle against corrupting democracy.
Arabica Robusta

Thabo Mbeki's New Partnership for Africa's Development: Breaking or Shining the Chains ... - 0 views

  • NEPAD will be highlighted and endorsed at the G-8 meeting in Alberta, Canada, in June 2002, at the July launch of the African Union in Pretoria, and at the Johannesburg World Summit on Sustainable Development–with a proposed global “New Deal” modeled on NEPAD–in late August. At such events, protesters who support the cause of global environmental, social, and economic justice will be told, in effect, “Don’t worry, you can go home, because Thabo Mbeki is taking care of globalization’s shortcomings.”
  • Mbeki’s approach is consistent with what has been termed compradorism. Mbeki and his main allies have already succumbed to the class (not necessarily personalistic) limitations of post-Independence African nationalism, namely acting in close collaboration with hostile transnational corporate and multilateral forces whose interests stand directly opposed to Mbeki’s South African and African constituencies.
  • In its beginnings, the national bourgeoisie of the colonial country identifies itself with the decadence of the bourgeoisie of the West. We need not think that it is jumping ahead; it is in fact beginning at the end. It is already senile before it has come to know the petulance, the fearlessness, or the will to succeed of youth.
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  • Thus, I argue below, the reform strategy will fail, although not because of Pretoria’s lack of positionality and international credibility to carry out NEPAD and win endorsements from global elites.
  • Instead, as argued in five subsequent sections, the failure is already emanating from the very project of global reformism itself, namely, Mbeki’s underlying philosophy and incorrect analysis, ineffectual practical strategies, uncreative and inappropriate demands, and counterproductive alliances.
  • Moreover, notwithstanding mixed rhetorical signals, Mbeki and NEPAD for all effective purposes exclude (indeed, most often reject) alliances with international social, labor, and environmental movements who, in their struggles for socio-environmental and economic justice, are the main agents of progressive global change.
  • Tellingly, NEPAD does not mention that although poverty increased dramatically in the wake of the 1997-99 emerging markets crisis, foreign investors (especially New York and London financiers) generally recovered their funds, and new U.S. investors in debt-ravaged Asian firms were able to pick up assets at fire-sale prices.
  • Indeed, the systematic unfairness applied to Africa also applies to South Africa, Mbeki has learned since 1994.
  • [T]here is nobody in the world who formed a secret committee to conspire to impose globalization on an unsuspecting humanity. The process of globalization is an objective outcome of the development of the productive forces that create wealth, including their continuous improvement and expansion through the impact on them of advances in science, technology and engineering.
  • The technology-centric “admission” is fundamentally apolitical and disguises the reality of dramatic changes in class relations, especially the resurgent power of U.S. and EU capital in relation to working classes there and across the world (as reflected in stronger state-corporate “partnerships” and the decline of the social wage during the Reagan, Thatcher, and Kohl administrations).
  • The prime culprits in making South Africa so vulnerable were, firstly, the government’s March 1995 decision, under intense pressure from local and international financiers, to discard the “financial rand” dual-rate exchange control mechanism, and secondly, the permissions granted from 1999-2001 to allow the largest South African firms to relocate (or delist entirely) their financial headquarters from Johannesburg to London.
  • Simultaneously, economic advice poured in from international financial centers, based upon persistent demands not only for macroeconomic policies conducive to South Africa’s increased global vulnerability, but also for social policies and even political outcomes that weakened the state, the working class, the poor, and the environment.
  • South Africa, too, witnessed mass protests against neoliberalism: by the Congress of South African Trade Unions (COSATU) in May 2000 and August 2001, at the World Conference Against Racism in September 2001, and in repeated local settings (against, for example, water/electricity cutoffs and evictions due to poverty) in Soweto, Chatsworth, Mpumalanga, Bredell, Tafelsig, and many other sites.
  • Mbeki had earlier embarked upon a late 1990s’ “African Renaissance” branding exercise, which he endowed with poignant poetics but not much else. The contentless form was somewhat remedied in the secretive Millennium Africa Recovery Plan, whose powerpoint skeleton was unveiled to select elites in 2000, during Mbeki’s meetings with Bill Clinton in May, the Okinawa G-8 meeting in July, the UN Millennium Summit in September, and a subsequent European Union gathering in Portugal. The skeleton was fleshed out in November 2000 with the assistance of several economists and was immediately ratified during a special South African visit by World Bank President James Wolfensohn “at an undisclosed location,” due presumably to fears of the disruptive protests that had soured a Johannesburg trip by new IMF czar Horst Koehler a few months earlier.
  • To his credit, though, the erratic Obasanjo had led a surprise revolt against Mbeki’s capitulation to Northern pressure at the World Conference Against Racism in September 2001, when he helped generate a split between EU and African countries over reparations due the continent for slavery and colonialism. Tellingly, even loose talk of reparations is purged from NEPAD.
  • It is arguable that Mbeki’s approach to the first front, debt relief, has already done incalculable damage, mainly by virtue of his failure to endorse the Jubilee movement’s campaign against “odious debt,” including apartheid debt.
  • But HIPC is already widely derided–especially in the Jubilee South movement–as “a cruel hoax.” Along with the IMF/World Bank Comprehensive Development Frameworks and the Poverty Reduction Strategy Programs, HIPC deals are fundamentally committed to maintaining existing power relations and the neoliberal economic philosophy, because they entail only very slight adjustments to debt loads and in return require lowest-income countries to further liberalize.
  • Regarding the second issue, inflows of capital, there are two kinds worth considering: financial and foreign direct investment. It hardly needs arguing that “hot-money” speculative inflows to emerging markets such as South Africa do not by any stretch qualify as “a prerequisite for development.” Nor do the vast majority of foreign loans granted to third world governments over the past thirty years, including concessional (0.75% interest rate) loans through the World Bank’s International Development Association and African Development Bank. Those loans serve as the leverage for gaining neoliberal conditions from borrowers. Repayment of even concessional hard-currency loans is extremely expensive once a country’s currency collapses, as happens regularly to Africa.
  • after having done all in his power to attract foreign direct investment (FDI), not even Mbeki has succeeded. Good governance and political stability are not the key factors, Africa has learned; otherwise oil-rich Angola and Nigeria would not be the continent’s main beneficiaries of FDI inflows.
  • NEPAD’s main solution to the foreign investment drought appears to be the promotion of a foreign stake via “Public-Private Partnerships” in privatized infrastructure: “Establish and nurture PPPs as well as grant concessions toward the construction, development and maintenance of ports, roads, railways and maritime transportation… With the assistance of sector-specialized agencies, put in place policy and legislative frameworks to encourage competition.” The lack of justification for this initiative–aside from Africa’s capital shortage–is extremely unsatisfying, given that most infrastructure is of a “natural monopoly” type, for which competition is unsuitable.
  • Third, regarding foreign aid, Mbeki calls for “more and better managed aid so as to deal with the basic needs that will have to precede any form of development in certain areas.” One problem is that Mbeki did very little in practice to dissuade Clinton and other international leaders from the classically neoliberal trend known as “trade, not aid” (the 1990s value of North-South aid fell by a third).
  • The effectiveness of “partnership” was made explicit in 1998-99, when U.S. Vice President Al Gore lobbied Erwin, Health Minister Nkosazana Dlamini-Zuma, and Mbeki himself to roll back the 1997 Medicines Act, which promoted the parallel import and generic production of antiretroviral drugs essential in fighting HIV/AIDS. The transnational pharmaceutical corporations threatened a constitutional lawsuit against the act, which they actively pursued for a month in March 2001 before international protest forced them to withdraw. This life-and-death case of technology transfer–blocked by corporations whose billions of dollars in profits overrode access to drugs that would save millions of lives–is instructive about the nature of alliances.
  • It was not Erwin’s philosophy of a fair and just trade partnership that persuaded Vice President Gore to reverse his position. A vibrant “Treatment Action Campaign” of grassroots militants emerged in South Africa during 1999, embarked on protests at U.S. consulates in Johannesburg and Cape Town, and began networking with the Philadelphia, New York, and Paris chapters of the advocacy group ACT UP (AIDS Coalition to Unleash Power). Gore was confronted repeatedly and aggressively by protests in Tennessee, New Hampshire, California, and Pennsylvania at the very outset of his presidential election campaign in mid-1999. Numerous newspapers carried front-page stories on Gore’s quandary.
  • But with whom in the world does Thabo Mbeki really have an honest partnership, and with whom is he building genuine solidarity? Notwithstanding the eloquence of his Atlanta speech, the answers are not obvious.
  • Mbeki and the ANC repeatedly unveiled repressive tendencies: against millions of antiprivatization strikers in the trade union movements, against thousands of community residents in Soweto suffering from unaffordable services because of privatization pressure, and against leading opponents of Mbeki’s AIDS policies, who during 2000 were reportedly labeled by Mbeki as “infiltrators” of the trade union movement and agents of pharmaceutical corporations and the CIA.
Arabica Robusta

Pambazuka - Washington tells Pretoria how to 'play the game' in Africa - 0 views

  • Barack Obama’s weekend trip to South Africa may have the desired effect of slowing the geopolitical realignment of Pretoria to the Brazil-India-Russia-China-SA (BRICS) axis. That shift to BRICS has not, however, meant deviation from the hosts’ political philosophy, best understood as ‘Talk Left, Walk Right’ since it mixes anti-imperialist rhetoric with pro-corporate policies.
  • White House deputy national security adviser Ben Rhodes, ‘What we hear from our businesses is that they want to get in the game in Africa. There are other countries getting in the game in Africa – China, Brazil, Turkey. And if the US is not leading in Africa, we're going to fall behind in a very important region of the world.’ Over a century earlier, another Rhodes – Cecil John – explained that very game: ‘We must find new lands from which we can easily obtain raw materials and at the same time exploit the cheap slave labour that is available from the natives of the colonies. The colonies would also provide a dumping ground for the surplus goods produced in our factories.’ Although there is no longer formal slave labour within formal colonies, this sentiment readily links the neoliberal agenda of both the BRICS and the US.
  • This must have raised cynical eyebrows, because he added, ‘China's primary interest is being able to obtain access for natural resources in Africa to feed the manufacturers in export-driven policies of the Chinese economy.’
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  • BRICS is not a mirage, because even if a new $50 billion extraction-oriented BRICS Bank is behind its start-up schedule, there are growing interrelationships between Johannesburg-based accumulation and high-volume Chinese and Indian land-grabbing, along with Brazilian mineral exploitation – such as next door in Mozambique where thousands of peasants are resisting the Rio-based Vale Corporation’s coal grab – with Russian energy firms pounding on the doors.
  • Adding to the complications, Pretoria’s neoliberal coordination activities have been disappointing by all accounts. For example, George W. Bush’s State Department labeled Mbeki’s 2001 continental strategy known as the New Partnership for Africa’s Development (Nepad) ‘philosophically spot-on,’ and yet there was precious little to show for the subsequent dozen years of African appeals for Western foreign investment and increased aid, beyond the super-exploitative extractive industries.
  • Mbeki had requested a quintupling of annual Western donor aid, and that it flow through an intermediary Nepad office near Pretoria. Fat chance. To illustrate, G8 and International Monetary Fund (IMF) debt relief in 2005 left the poorest African countries repaying old loans at a rate 50 percent higher in relation to export revenues than before, according to the IMF. (Africa’s unrepayable loan principal was ‘forgiven,’ to be sure, yet the poorest countries were squeezed even harder as a result, to pay overdue interest.)
  • In 2009, while helping prepare Obama’s speech about good governance in Accra, Clinton asked eleven of Washington’s embassies in Africa to collect fingerprints, DNA, iris scans, email passwords, credit card account numbers, frequent flyer account numbers and work schedules of local political, military, business and religious leaders, including United Nations officials. Since then, Obama has been criticized for military interventions in oil-soaked Libya and AfriCom’s fight against Islamic fundamentalists in Somalia, for mercenary support and torture-rendition activities in several African countries, and for gifts of drones and US troop deployment in authoritarian Uganda.
  • In the Central African Republic in March, just three days before the BRICS gathered, a firefight with the Chad-backed Seleka rebel movement left 13 South African army troops dead. They were defending not only the resident tyrant, François Bozizé, but also Johannesburg businesses, including some with crucial links to leaders of the ruling African National Congress (ANC).
  • Speaking at a University of KwaZulu-Natal seminar last week, leading Congolese intellectual Georges Nzongola-Ntalaja condemned both South Africa and the Western re-occupation of the DRC, reminding of Frantz Fanon’s assessment of the neighbourhood: ‘If Africa were a revolver, the Congo would be its trigger.’
  • But it is the US corporate record in many African countries that, most remarkably, left Obama offhandedly uttering one of his most hypocritical-ever remarks, during Saturday’s honorary doctoral degree ceremony at the University of Johannesburg in Soweto: ‘When we look at what other countries are doing in Africa, I think our only advice is make sure it’s a good deal for Africa. Somebody says they want to come build something here: Are they hiring African workers? Somebody says that we want to help you develop your natural resources: How much of the money is staying in Africa?’ Good question! The answer is absolutely critical for the South African economy, because our balance of payments has been demolished by the late 1990s’ overseas flight of Anglo, De Beers, Old Mutual (the biggest financial institution), South African Breweries (now the world’s second largest after a merger with Miller), the largest IT firm Didata, the bank Investec, the pulp-and-paper corporation Mondi and others which relisted on the London and New York stock markets. (Earlier in the decade, one of the founding firms behind the world’s largest mining house, BHP Billiton, had escaped South Africa, as had the luxury goods company Rembrandt and the insurer Liberty Life.)
  • These firms left with Mandela’s permission. Along with his 1996 World Bank-designed structural adjustment policy featuring trade and financial liberalization, corporate capital flight caused South Africa to be far more unequal, with far higher unemployment, a foreign debt five-fold bigger, and far worse ecological conditions than in 1994.
  • This background makes Obama’s next remark all the more spiteful: ‘I do think that it’s important for Africans to make sure that these interactions are good for Africa.
  • As the Heritage Foundation has argued, AGOA aims to ‘encourage governments to open their economies and build free markets’ – which, translated by Michael Besha of the Organization of African Trade Union Unity, means ‘coercing African countries into total trade and financial liberalization.’ Remarks Riaz Tayob of the Southern and East African Trade Institute, ‘standard US policy to debtor countries is to open financial markets, which increases South African vulnerability.’
  • The situation is even worse in other settings because US-backed dictators – such as Obama allies Kagame and Museveni – take no prisoners. Terrible conflagrations will probably continue in Central Africa; in the resource-cursed Great Lakes region a conservatively-estimated five million people have died over the last two decades.
Arabica Robusta

Zimbabwe, South Africa, and the Power Politics of Bourgeois Democracy - Monthly Review - 0 views

  • the workers would be just as badly treated by the ruling Zimbabwe African National Union (Zanu). With his misleading tendency to “talk left, act right,” Mugabe gave the impression to some observers that his project was genuinely anti-imperialist and capable of empowering the millions of landless rural Zimbabweans for whom he claimed to act.
  • Standards of living had crashed during the 1990s, the state withdrew—or priced at prohibitive levels—many social services, and the economy deindustrialized. State and private sector corruption were rife. In response, various urban labor and social movements—trade unions, human rights advocates, ghetto residents’ groups, militant students, church and Jubilee anti-debt campaigners, women’s organizations, community health workers, and many others—began to offer opposition.
  • But very quickly, what had begun as a working-class party resisting Mugabe’s neoliberalism, malgovernance, and repressive state control was hijacked by international geopolitical forces, domestic (white) business and farming interests, and the black petite bourgeoisie.
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  • Once he had permitted and nurtured the land invasions in the wake of the shocking February 2000 defeat, Mugabe came to rely upon the war veterans and their followers as a paramilitary force. And yet notwithstanding the resurgence of populist rhetoric and a few material concessions from the state, poor and working people saw their incomes—and even their ability to gain access to the staple food, maize—under unprecedented threat by the time of the recent (March 9–10, 2002) presidential election.
  • Geopolitical pressure on Mugabe is mediated primarily through these suspect sources. But for all the Western hypocrisy, the Mugabe victory was nonetheless the product of brutal force. And the division between the observer missions did not break down cleanly along North-South, national, racial, or class lines.
  • One government stands ready and anxious to mediate an elite solution to the Zimbabwe crisis, if one can be found: South Africa. The same government has positioned itself as the main third world arbiter of globalization, in arenas such as trade, finance, aid, sustainable development, racism, non-aligned politics, and many others.
  • In 1976, Rhodesian prime minister Ian Smith was summoned to meet South African premier John Vorster and U.S. secretary of state Henry Kissinger in Pretoria. In an uncomfortable encounter, Smith was told that his dream of delaying black majority rule in Zimbabwe for “a thousand years” was over. Accommodation with the liberation movements would be necessary, both for the sake of the West’s legitimacy in the struggle against the Soviet Union and simply because Smith’s position—defending legalized racial domination by a quarter of a million white settlers over more than six million indigenous black people, of whom fifty thousand were in the process of taking up arms, at a time of unprecedented economic crisis—was untenable. Smith resisted the inevitable with a mix of ineffectual concessions and heightened repression, but the power that South Africa held over imports and exports was decisive. Simultaneously, guerrilla war intensified and Smith could no longer count on Pretoria’s military backing. Three years after the ultimatum from Vorster and Kissinger, Smith and his conservative black allies were forced to the Lancaster House negotiating table in London, where Zimbabwe was born. Thanks to what Smith termed “the great betrayal” by South Africa and Britain, Zanu and its allies laid down their arms and swept the first democratic election in February 1980. A quarter of a century after that fateful meeting in Pretoria, an analogous moment reappeared in the relations between Zimbabwe and South Africa. In Zimbabwe, thirteen million black Zimbabweans suffer under the rule of an undemocratic, exploitative elite and of a repressive state machinery serving the class interests of a few tens of thousands of well-connected bureaucrats, military, and paramilitary leaders. And this is in the context of unprecedented economic crisis. In South Africa, meanwhile, it is not difficult to posit a similar trajectory of material decline, ruling-party political illegitimacy, and ascendant opposition, as the rand crashed by more than 50 percent over a two-year period and trade union critiques of neoliberal policies harden.
  • Mugabe’s “huge social spending spree” was, in reality, a brief two-year period of rising education and health expenditures, followed by systematic cutbacks and deprivation under IMF and World Bank guidance. The needs of trade unionists were as little respected as were those of any other sector of society.
  • To misread Zimbabwe’s situation so blatantly and self-servingly was not new in Pretoria. As another example that gets to the heart of the exhausted nationalist contradiction, consider the case of former ANC Land Minister Derek Hanekom, who also used Zimbabwe as a whipping boy beginning in 1997. At that stage, land hunger was causing organic land invasions (not war-veteran induced) and farmworker strikes in several areas of rural Zimbabwe. In November, of that year, Mugabe announced that the Land Designation Act would finally be implemented. For South Africa, the specter of large-scale land reform in Zimbabwe would have been terrible for investor confidence at a time when Mbeki’s own Washington-centric structural adjustment program—the misnamed Growth, Employment, and Redistribution strategy—was already failing noticeably.
  • around February 2000, two options emerged: hunker down and mindlessly defend the Zanu government against its critics; or move into a “constructive engagement” mode that might serve as the basis for an “honest broker” role on some future deal-making occasion. A third option—active support Zimbabwe’s social-justice movements, so as to ensure Mugabe authorized genuinely free and fair elections—presumably did not warrant attention; no doubt for fear that the last bullet would inspire South African trade unionists to do the same, and in the near future.
  • Vorster, Kissinger, and ultimately the British managers of Zimbabwe’s transition together hoped for a typical neocolonial solution, in which property rights would be the foundation of a new constitution, willing-seller/willing-buyer land policy would allow rural social relations to be undisturbed, and nationalization of productive economic activity would be kept to a minimum. A black government would, moreover, have greater capacity to quell labor unrest, strikes, and other challenges to law and order.
  • The romance of Southern African liberation struggles made it logical for radical activists across the world to intensify pressure first for the liberation of the Portuguese colonies Angola and Mozambique (1975), then the former British colony Zimbabwe (1980), then Namibia (1990), and finally South Africa (1994). That kind of solidarity was colony specific. Something more universal has subsequently emerged: North-South unity of progressive activists fighting a common scourge, international neoliberalism. What is most needed, in this new context, is a set of processes that help identify and implement popular solidarity.
  • At the fore of those who would repel both the kleptocratic elite and the generalized economic crisis associated with globalization are progressive civil society groups.
  • what lessons does this confusing period in Zimbabwe’s post-independence experience provide to other third world progressive social forces? The appropriate normative formula is not the dismissal of strengthened state sovereignty as a short–medium term objective. Instead, aligned simultaneously with international popular struggle against Washington and transnational corporate headquarters, the goal must be the rekindling of nation state sovereignty, but under fundamentally different assumptions about power relations and development objectives than during the nationalist epoch. Such power relations can probably only be changed sufficiently if the masses of oppressed people contest those comprador forces who run virtually all their nation states. To do so will require the articulation of a multifaceted post-nationalist political program, grounded in post-neoliberal economic formulations.
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    Once he had permitted and nurtured the land invasions in the wake of the shocking February 2000 defeat, Mugabe came to rely upon the war veterans and their followers as a paramilitary force.
Arabica Robusta

Pambazuka - Food crisis in the Sahel: Real problem, false solutions - 0 views

  • In addition to the 8 million affected Nigeriens are some 1.6 million Chadians and 500,000 Malians. These statistics are only, however, the visible aspect that institutions and international non-governmental organisations display. They suffer from the limits around reading data on Africa, notably on rural areas and a region of the Sahel in which pastoral traditions and a nomadic lifestyle are a prominent feature.
    • Arabica Robusta
       
      reading data on rural areas with strong pastoral traditions
  • n the face of empty granaries, Niger’s people have begun to develop a strategy for survival. ‘In Niger, women cover a desert-like environment in search of anthills in order to dig up and retrieve grains of millet, corn and other crops that the ants have collected,’ tells Charles Bambara, in charge of communications for Oxfam GB in Dakar. In the north of Mali, farmers, keen to allow their livestock to drink, have taken to using the water points actually intended for elephants (in a bid to protect the last pachyderms alive in the country).
  • The disorder of the world food crisis in 2008 did not become hazy, and this new peak comes to remind us that, in the Sahel, the crisis results from an endemic problem. This is a problem that, as the thrust of recurrent fever testifies, is more a question of structure than conjuncture, that these are the failings of agricultural policies that impose their own tough realities, and that the recommended solutions are not different from those pushed in the 1980s with the establishing of structural adjustment programmes (SAPs) which sounded the death knell of Africa’s agricultural policies.
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  • The reduced investment imposed by the International Monetary Fund (IMF) and the World Bank had then destroyed the base of an agriculture geared towards food sovereignty. Industrial cultures were promoted which washed the soil (leading to greater soil erosion, the use of pesticides and chemical fertiliser) and disrupted the balance of the systems of production behind subsistence and the generation of complementary revenues on the strength of access to local markets. From this point it was a question of food security, no matter where stocks came from. This was the period in which food aid poured in. Africa was to produce no longer, with African stomachs wagered on agricultural surpluses from Europe, the US and elsewhere. As a result, since 1980 sub-Saharan Africa has been the only region of the world where average per capita food production has continued to decline over the last 40 years.[3]
  • African agriculture has suffered a series of difficulties which, over 30 years, have left it vulnerable to the smallest of changes on both the international market and climatically. Agricultural policies applied by states, under donors’ pressure, have in effect turned their back on policies which, formerly, assured technical assistance to producers, backed up by a price-stabilisation mechanism and subsidies for commodities.
  • We could go even further towards the worst of it and look at the development of biofuels and the extent to which more and more land is being diverted away from food production. Essentially, we will be growing to power cars rather than fill granaries. And in July this year, Burkina Faso has inaugurated its first industrial unit of production, while the country remains vulnerable in the face of a food crisis.
  • ‘Today, in the smallest village, people eat bread, milk and coffee… This wasn’t part of our customs; we used to eat maize-based dough, sorghum and millet. But when you can’t live anymore from your field and you’re reliant on others (neighbours, food aid), you eat what you’re given.
  • The foundation of real food sovereignty lies in the promotion and consolidation of family agriculture, as well as the development of an agro-ecology which offers the best antidote to the wasting-away of fragile ecosystems at the mercy of deregulation.
Arabica Robusta

Pambazuka News - 0 views

  • In even the most exploitative African sites of repression and capital accumulation, sometimes corporations take a hit, and victims sometimes unite on continental lines instead of being divided-and-conquered.
  • In early June, the British-Dutch firm Shell Oil – one of Rodney’s targets - was instructed to depart from the Ogoniland region within the Niger Delta, where in 1995 Shell officials were responsible for the execution of Ken Saro-Wiwa by Nigerian dictator Sani Abacha. After decades of abuse, women protesters, local NGOs and the Movement for the Survival of the Ogoni People (MOSOP) gave Shell the shove. France’s Total appears next in line, in part because of additional pressure from the Movement for the Emancipation of the Niger Delta.
  • Although it was six months ago that the European Union’s ultramanipulative trade negotiator, Peter Mandelson, cajoled 18 weak African leaderships -- including crisis-ridden Cote d’Ivoire, neoliberal Ghana and numerous frightened agro-exporting countries -- into the trap of signing interim “Economic Partnership Agreements” (EPAs), a backlash is now growing.
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  • “We can’t continue to deal with incompetent, weak, corrupt, supine governments,” explained Dot Keet of the Alternative Information and Development Centre in Cape Town. “But these are not factors of the same order of magnitude. The domination of African countries by neocolonialism and the subordinate stance by African governments are not the same. We must be clear where the main driving force comes from: outside Africa. We have to tackle the source.”
  • Since 2002, the EPAs have supplanted the agenda of the gridlocked World Trade Organisation, just as bilateral trade deals with the US, China and Brazil are also now commonplace. A united Europe deals with individual African countries in an especially pernicious way, because aside from free trade in goods, Mandelson last October hinted at other invasive EPA conditions that will decimate national sovereignty: “Our objective remains to conclude comprehensive, full economic partnership agreements. These agreements have a WTO-compatible goods agreement at their core, but also cover other issues.” Those other “Singapore” issues (named after the site of a 1996 WTO summit) include investment protection (so future policies don’t hamper corporate profits), competition policy (to break local large firms up) and government procurement (to end programmes like South Africa’s affirmative action).
  • As Walter Rodney observed, “It is typical of underdeveloped economies that they do not -- or are not allowed to -- concentrate on those sectors of the economy which in turn will generate growth and raise production to a new level altogether, and there are very few ties between one sector and another so that, say, agriculture and industry could react beneficially on each other.”
  • African countries face unreliable provision of public utilities (electricity and water); poor public infrastructure (run down roads and railways); rapidly fluctuating exchange rates and high inflation; labour productivity problems arising from poor education, health and housing provision; vulnerable market institutions (such as immature financial systems); and poorly-functioning legal frameworks. The EU has no interest in reversing such fundamental structural economic challenges.
  • From early on, African civil society movements – especially the African Trade Network - called on elites to halt the negotiations. But it has not been easy to develop a strong coalition, as Third World Network director Yao Graham concedes: “Unions have been too syndicalist, while our justice movements have been exhausted fighting structural adjustment. The local private sector has been absent. But in some regions, like West Africa, agricultural producers have been well organised and opposed to EPAs. Links to the Caribbean are weak. But we are working behind enemy lines with progressive allies in Europe, including within the Brussels parliament.”
  • because Mandelson is squeezing so hard, he may be single-handedly breaking the links between elites. Led by Senegalese and Malian politicians, most of the African officials at the conference agreed with the left intelligentsia that dangers now arise of: - regional disintegration (due to EU bilateral negotiations and subregional blocs) and internecine race-to-the-bottom competition:
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    In even the most exploitative African sites of repression and capital accumulation, sometimes corporations take a hit, and victims sometimes unite on continental lines instead of being divided-and-conquered.
Arabica Robusta

As Global Wealth Spreads, the IMF Recedes - 0 views

  • Ghana had joined a long list of developing countries in Africa and beyond enjoying record periods of growth, with the robust economy leaving it no longer in need of more IMF cash.
  • The IMF, founded in 1944 to foster the reconstruction of the global economy in the wake of World War II, is entering its largest period of upheaval since the fall of the Berlin Wall. Over the next year, the Washington institution will slash its 2,900-person workforce by 13 percent through a combination of buyouts and some layoffs, reflecting a loan portfolio shrinking so fast that the IMF is seeking to sell off $6 billion in gold reserves to create a new long-term source of income.
  • The weakest nations in Africa remain the most subject to IMF policies because the fund represents one of their few financial lifelines. But even in better-off countries like Ghana -- a West African nation of 23 million -- the IMF still wields clout. Lenders including the World Bank and foreign-aid agencies in Europe and the United States continue to look to the fund to certify a nation as being fiscally responsible before offering grants or loans.
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  • In Ghana, the IMF has been credited with helping to promote less wasteful government spending and worked with the World Bank to forgive Ghana's $381 million debt earlier this decade. It allowed Ghana to shift funds once earmarked for debt payments to social spending. Schools that had operated in the open air were moved into classrooms while new medical clinics cut infant mortality and the deaths of women at childbirth, according to the Social Enterprise Development Foundation of West Africa, a regional nongovernmental organization.Yet other fund-backed policies have proven difficult for the population. As Ghana sought to increase water access, the IMF recommended "full cost recovery." Ghana's water company moved to install prepaid meters and disconnect nonpaying customers, according to a report from Jubilee USA, an anti-poverty nonprofit group in Washington. As a result, Ghanaian women, who traditionally bear the burden of providing water for household use, were forced in some instances to dig unsafe, shallow wells to access drinking water.
  • The IMF has insisted that Ghana eliminate those subsides and pass the full cost of electricity production to its people. It would mean higher power bills just as residents are trying to cope with increases in gas and food prices. The government has opted for a Solomonic solution. It will begin passing the higher costs to corporate users by later this year but has provided no timetable for extending the burden to individual users.For some here, even that is too much. "The IMF has been pushing us for years," said Leticia Osafo-Addo, chief executive of Samba Processed Foods, a maker of hot pepper sauces, juices and spices that will likely see its electricity bill soar by year's end. "We can and should manage on our own. It is time for that to stop."
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    Ghana had joined a long list of developing countries in Africa and beyond enjoying record periods of growth, with the robust economy leaving it no longer in need of more IMF cash.
Arabica Robusta

Pambazuka - Development aid: Enemy of emancipation? - 0 views

  • In Africa there have historically been two types of civil society, those that have collaborated with the colonial power and those which have opposed it.
  • Are the big NGOs (non-governmental organisations) harmful towards Africa? FIROZE MANJI: Let’s not talk about their motivations, which are often good. The question is not about evaluating their intentions, but rather the actual consequences of their actions. In a political context where people are oppressed, a humanitarian organisation does nothing but soften the situation, rather than addressing the problem.
  • I have become anti-development. This wasn’t the case before. Let’s have an analogy: did those enslaved need to develop themselves, or to be free? I think that we need emancipation, not development.
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  • These last 20 years we have faced a major change: the financialisation of capitalism. Now, nobody can do anything without capital. Finance controls each and every sector of society.
  • Immediately after Kenya’s independence (1963), a great many important liberation figures were imprisoned, exiled or killed, such as Patrice Lumumba in Congo and Thomas Sankara in Burkina Faso. Each time a leader had the courage to rebel, Europe and the United States forced them to back down. We then came to know an empty period until the mid-1990s, when people began to resist and organise themselves again. Today in Kenya, spaces for discussion and debate are not lacking. It’s vibrant, alive and a general trend, including in Europe.
  • Look at Tunisia: you hear that the revolution was caused by Twitter – this can’t be serious! Pens were also used as a means of information and mobilisation. Does this mean that pens caused the revolution? This illustrates a tendency towards technological determinism, towards hi-tech fetishism. We imagine that mobile phones, SMS (short message service), Twitter and Facebook have a power. This type of discussion tends to underestimate the role of those who use them.
  • In Tunisia, protesting in the road called for a lot of courage. A protestor who embraces a soldier, as is seen in a photo, is not produced by technology. It’s thought that this can resolve everything, but a third of Africans have one and there hasn’t been revolution everywhere.
  • Take for example agriculture: the bulk of what’s produced in Africa goes to feed Europe, multinationals and supermarkets. In Kenya we produce millions of flowers. Every day, they leave for Amsterdam. The amount of water used and the chemical products involved destroy our environment. While this goes on, populations have difficulty gaining access to water and food. The countryside ought to be used to produce food!
  • Agricultural production needs to be democratised.
  • I think that Latin America is a dozen years ahead of us. Structural adjustment policies began there two decades ago. I think that in Africa a popular movement will rise up from this from 2020. Chávez is not an exception; he is the product of his history, of a movement for emancipation, like Lula. The question is, how can we ourselves politicise this process? It’s not easy; there’s no technical solution. Workers and farmers need to become organised. This takes time. The positive thing is that this point is now discussed; this wasn’t the case 10 years ago.
Arabica Robusta

No jobs, no house, no freedom - 0 views

  • We cannot forget that many people died and fought hard and with courage and determination to gain this freedom from apartheid. We honour those people all the time. Many of our members struggled in trade unions and in community organisations. We have members whose ancestors fought in the war fought from the Nkandla forest and in the rebellion on Nguza Hill. The struggle against apartheid is our struggle.
  • But we have a clear understanding of what that struggle was for and it was not just to replace white politicians with black politicians. That struggle was not just to force white business to take on some black partners. That struggle was to ensure that South Africa belongs, really belongs, to all who live in it.
  • seventeen years after the end of apartheid there are millions of people who are ‘forgotten’ and yet they are being told that they are free. They are being told that they must go to the stadiums on an empty stomach to listen to politicians tell them how far they have come and then go home to a shack.
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  • We are told every day that freedom means voting plus service delivery. We do not accept this definition and we will not be intimidated by all those who say that our refusal to accept this definition means that we are immature and unprofessional. As a movement of the forgotten it is our duty to continually ask ourselves what freedom really means. Freedom is always something that should be defined by the people.
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