Skip to main content

Home/ Development Africa/ Group items tagged corporate

Rss Feed Group items tagged

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).
  • ...98 more annotations...
  • 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 - Copper in Zambia: Charity for multinationals - 0 views

  • Despite the apparent ‘success’ of the privatisation of the Zambian copper industry, the true picture is one of systemic multinational exploitation, national assets sold ‘for a song’ and persistent tax dodging, writes Khadija Sharife.
  • It has been almost two decades since Zambia's ailing copper industry, beset by low commodity prices and skyrocketing debt, was privatised. The process was described by the New York Times in 1996 as, 'Westerniz[ing] the economy with a combination of help and arm-twisting from the World Bank and the International Monetary Fund, the lead lenders for the $6.3 billion in external debt the country is carrying.’
  • Provisions granted to multinationals included stability periods extending for up to 20 years, rendering multinationals exempt from legislation implemented by parliament and other national and legal alterations; the right to carry over losses throughout the 'stability periods'; 100 per cent foreign currency retention, remittance and provision for capital investment deductions; zero withholding tax; and various other fiscal and para-fiscal exemptions ranging from customs duty to environmental pollution and penalties; pension schemes, and contracting of casual workers – accounting for 45 per cent of the workforce, amongst others.
  • ...10 more annotations...
  • Stated former finance minister Edith Nawakwi: ‘We were told by advisers, who included the International Monetary Fund and the World Bank that … for the next 20 years, Zambian copper would not make a profit. [Conversely, if we privatised] we would be able to access debt relief, and this was a huge carrot in front of us – like waving medicine in front of a dying woman. We had no option [but to go ahead].’
  • In 2004, UK-based corporation Vedanta Resources acquired 51 per cent of shares in KCM, known as the largest copper mine in the world, for $48 million cash. In the three-month period that followed, the company registered profits of $26 million from KCM.
  • The World Bank's IFC (International Finance Corporation) reported that, thanks to corporate incentives, effective tax rate for mining companies was 'effectively zero'.
  • Despite being the world's copper powerhouse, Zambia is now one of the world's 25 poorest nations. Though copper provides about 80 per cent of foreign exchange earnings, mining employs just 10 per cent of salaried workers, contributes just 2.2 per cent of revenue to the government's tax agency (ZRA – Zambia Revenue Authority) and 9.7 per cent to GDP (gross domestic product). The drastic increase in price was primarily due to China's increased copper needs, rising to US$10,000 per tonne. The bulk of copper in Zambia is exported to Switzerland – on paper, that is.
  • Glencore International AG, based in Baar, Switzerland (the world's leading secrecy jurisdiction), controls over 50 per cent of the world's global copper market.
  • Comparative analysis reveals that Mopani’s costs are much higher than those of comparable mining companies operating in Zambia.
  • Extensive revenue analysis revealed cobalt extraction rates twice inferior to other producers of the same area - a difference deemed unlikely by the auditors and which indicates that some of the ore extracted by Mopani could remain undeclared.
  • Transfer pricing manipulation and breach of the Arm’s Length principle: The company’s production is sold, both locally and internationally, via its main buyer Glencore International AG, who also happens to be Mopani’s parent company. After careful revenue analysis, it appears that the sales from Mopani to Glencore fail to comply with the OECD “Arm’s Length” principle: minerals are sold to Glencore under conditions that would not apply to a third-party buyer… According to the audit, Mopani seems to prefer selling its production to Glencore whenever prices are at their lowest, something a buyer, not a seller, would be likely to do.'
  • This is, of course, a common script for Africa: the bulk of the illicit flight (estimated by Global Financial Integrity at 60 per cent) is often siphoned not by rogue regimes but instead by corporations through 'underpricing, overpricing, misinvoicing and making completely fake transactions, often between subsidiaries of the same multinational company, bank transfers to offshore accounts from high street banks offering offshore accounts, and companies formed offshore to keep property out of the sight of the tax collectors. According to a survey assessing the economic practices of 476 multinational corporations, 80 per cent acknowledge that transfer pricing remains central to their tax strategy.
  • And though prices increased, Zambia’s revenue actually decreased, by 50 per cent from 1.4 per cent (2003) to 0.7 per cent (2004). The government introduced a 25 per cent windfall tax, raised mineral royalties to 3 per cent and corporate tax to 30 per cent. But soon after, mining houses engaged in intensive lobbying. Current Zambian President Rupiah Banda claims that the windfall tax will not be implemented again. In fact, soon after introduction, it was scrapped.
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.
  • ...22 more annotations...
  • 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 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.
  • ...6 more annotations...
  • “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:
  •  
    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

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.
  • ...19 more annotations...
  • 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

Corporates aren't the only solution to conflict gold | Guardian Sustainable Business | ... - 0 views

  • CRC has chosen to take a pro-active stance on the issue of conflict minerals and has identified employment of former combatants across towns and villages in eastern DRC as key to reducing or de-escalating the conflict.
  • The OECD conflict minerals process deals with the fruit, not the root of the problem. It has created a set of recommended procedures that only corporate mining companies can afford to follow, rather than address the majority employed by the gold trade, namely the small-scale miners.
  • It remains to be seen if the OECD due diligences on conflict minerals will work, but its clear that currently, it's just another CSR badge that the World Gold Counsel, the London Bullion Market Association and the Responsible Jewellery Council corporate members, can add to their collection.
  • ...1 more annotation...
  • to truly understand the ASM sector you need to look beneath the obvious of environmental mismanagement, systemic mercury usage and child labour issues to understand the hidden driver of money and survival.
  •  
    "CRC has chosen to take a pro-active stance on the issue of conflict minerals and has identified employment of former combatants across towns and villages in eastern DRC as key to reducing or de-escalating the conflict."
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.’
  • ...11 more annotations...
  • 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

Pambazuka - Pollution: Africa's real resource curse? - 0 views

  • Currently, corporations subscribe to the standards of the voluntary International Cyanide Managament Code. Yet one aspect that the code fails to rigorously address is that of closure.
  • Kabwe’s rehabilitation is part of the broader Copperbelt Environment Project (CEP), largely funded by the World Bank.
  • Describing the Environmental Council of Zambia as ‘very weak’, the CEP revealed that: ‘Existing regulations are seldom enforced. The regulatory dispositions for the mining sector are currently so weak that they do not deter polluters…Identification and monitoring of environmental risks resulting from mining activities is often inadequate.’ Mining corporations operating in Zambia post-1994 were allowed to adhere to the Environmental Management Plan (EMP), taking precedence over national legislation, with little penalties save for on the spot fines of £17 and letters of warning. Like Tanzania, Zambia’s mining contracts remained secretive.
  • ...2 more annotations...
  • e Villiers said the body appointed to look at the problem favours neutralisation as the best solution to the problem of AMD. ‘Certainly, it will be an economically viable solution, if logistics such as the reservoirs needed for the neutralization to be carried out in (continuously over a very long period of time) can be sorted out, which seems unlikely at the moment. ‘The proposals by corporations to step in with their proposed solutions have apparently been shot down, because they wanted to sell the cleaned water back to Rand Water, making a profit in the process. ‘I’m not sure why mining houses are allowed to pollute while making a profit, and corporations who want to clean up are apparently expected to do so without the benefit of making a profit,’ she said.
  • In an interview with The Africa Report, Turton said that not only will mines evade the legal minimum requirement of the ‘polluter pays principle’ but also profit from it. ‘What’s more, that profit is all but guaranteed, because it will be underwritten by the state in the form of a mooted Public Private Partnership (PPP),’ he said. The deal allows for mining houses to access a R3.5-billion deal with no tendering process, as well as select ‘treatment’ that was described by Turton as the ‘least cost option’ via a process shrouded in secrecy, enabling the WUC to act as both consultant and reviewer.
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]
  • ...21 more annotations...
  • 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

CorpWatch : Congo Copper Mine Deals Questioned - 0 views

  • Eurasian Natural Resources Corporation (ENRC), a global mining company that got its start in Kazakhstan, has won a new $101.5 million license to dig for copper at the Frontier mine in the Democratic Republic of Congo. The company has been criticized by Global Witness for its purchases of rights from offshore companies connected to Dan Gertler, a controversial Israeli diamond merchant.
  • Per-capita income in the Congo is under $300 a year and experts at the Carter Centre, which was founded by former US president Jimmy Carter, say there is a reason. "In a mining sector defined by irregularities and mismanagement, large industrial mining projects can earn huge profits for investors and government officials,” Sam Jones, associate director of the centre's human rights program, told the Guardian. “(L)ittle revenue finds its way back into desperately impoverished Congolese communities for schools, healthcare, or other social services.”
  • First Quantum, a Canadian company, acquired the rights to mine for copper at Frontier in 2001 but was forced to turn it over to Sodimco, a state owned company in 2010 by the Congolese government. The licences were then sold to Fortune Ahead, a Hong Kong shell company. Meanwhile First Quantum filed multiple legal claims demanding $4 billion in compensation for Frontier and other assets nationalized by the Congolese government.
  • ...2 more annotations...
  • But exactly who paid whom how much for mining rights in the Congo is up for debate. “ENRC’s purchase of its stake in Kolwezi was structured through a deal between itself and at least seven companies registered in the British Virgin Islands, all connected to Dan Gertler,” states a Global Witness fact sheet. “When ENRC bought the remaining 50 per cent stake in SMKK, it purchased it from another British Virgin Islands company linked to Mr Gertler. Even ENRC’s acquisition of CAMEC involved sale purchase agreements with several offshore companies linked to Dan Gertler which held shares in CAMEC.”
  • Gertler, an Israeli diamond merchant, has been doing business in Congo for over a decade, working first with Laurent-Désiré Kabila, the former president of the Congo, and now with his son, Joseph Kabila, the current president.
  •  
    "Eurasian Natural Resources Corporation (ENRC), a global mining company that got its start in Kazakhstan, has won a new $101.5 million license to dig for copper at the Frontier mine in the Democratic Republic of Congo. The company has been criticized by Global Witness for its purchases of rights from offshore companies connected to Dan Gertler, a controversial Israeli diamond merchant. "
Arabica Robusta

Mandela's legacy: a man of many parts | CODESRIA - 0 views

  • Dismantling of the Apartheid in the 1990s was one of the great events of the turbulent 20th century, even though the manner of its dismantling was deeply marred by the fact that the critical negotiations which made it possible came in the immediate aftermath of the collapse of the Soviet Union. And, in a significant coincidence, those negotiations on the issue of South African settler colonialism ran parallel to those other negotiations, on the Israeli settler colonialism, which led to the Oslo Accords.
  • That’s just about right: “using them.” The ANC was a conservative force when Mandela first joined and even after the radical turn that Mandela and his close associates introduced into its politics, it remained a small party based primarily in the frustrated black middle class. Origins of the alliance with the communists were purely pragmatic. As Charles Longford was to write after Mandela’s death: As an insignificant political force, removed from the black working classes and the poor, ANC stood little chance of generating any meaningful political pressure that might affect change. They needed the black majority. That is why they turned to the South African Communist Party.
  • Only in the American scheme of things is it possible to bestow upon someone the highest honours that the US can give to anyone but also keep the same person on the list of “terrorists”—just in case!
  • ...30 more annotations...
  • Thanks to the progress towards reconciliation during those negotiations, he was released from prison in 1990, a framework for the protection of white interests in wealth and property was put in place, the whole system of racist laws was abolished, democratic elections were held, and Mandela assumed the Presidency of South Africa in May 1994.
  • On 11th July 2013, John Pilger published a piece on his interview with Mandela after ANC had taken hold of power, had abandoned the black working classes and the poor to their fate, and was launched upon a wave of brisk privatizations and deregulations, which led, among other things, to fabulous enrichment of the new ANC elite, Mandela’s close associates and cabinet ministers in particular. Pilger reports that when he said to Mandela that it was all contrary to what he had said in 1990, the latter shrugged him off with the remark “for this country, privatization is the fundamental policy.” Not only that! Mandela was frequently seen in the company of the most corrupt of his ministers even after he relinquished power and in fact supported Zuma’s bid for the Presidency; in power, Zuma, a former communist leader, acting very much like the Russian oligarchs bred by Yeltsin.
  • The white ruling elite had prepared for such outcomes with great deliberation. It had methodically nurtured a new Black entrepreneurial and professional class through loans, subsidies etc, whose interests predictably came into conflict with those of the black working classes ad the poor who were the mass base of the anti-Apartheid struggle in all its aspects.
  • White South African mining magnates, billionaires and businessmen were meanwhile meeting the exiled leaders of the ANC, such as Mbeki, in European capitals, to offer deals and hammer out the economic structure of post-Apartheid South Africa; a favourite meeting place was a majestic mansion, Mells Park House, near Bath, in England. The IMF backed up the effort with the offer of a loan in 1993 and US-trained ANC economists were soon to huddle together with World Bank officials to map out detailed blueprints for a neoliberal, crony-capitalist future. Those leaders of the ANC who had spent long years in neighbouring countries like Zimbabwe and Zambia had internalised the corrupt ways and authoritarian personality traits typical of the elites in those countries.
  • Ronnie Kasrils—member of the national executive committee of the ANC from 1987-2007 and, concurrently a member of the central committee of the CPSA from December 1986 to 2007—published a damning and self-damning piece on this subject in The Guardian of 24 June 2013, entitled “How the ANC’s Faustian pact sold out South Africa’s poor.” Kasrils would know.
  • What I call our Faustian moment came when we took an IMF loan on the eve of our first democratic election. . . Doubt had come to reign supreme: we believed, wrongly, that there was no other option; that we had to be cautious, since by 1991 our once powerful ally, the Soviet Union, bankrupted by the arms race, had collapsed. Inexcusably, we had lost faith in the ability of our own revolutionary masses to overcome all obstacles. . . by late 1993 big business strategies – hatched in 1991 at the mining mogul Harry Oppenheimer’s Johannesburg residence – were crystallising in secret late-night discussions at the Development Bank of South Africa. Present were South Africa’s mineral and energy leaders, the bosses of US and British companies with a presence in South Africa – and young ANC economists schooled in western economics. They were reporting to Mandela. An ANC-Communist party leadership eager to assume political office (myself no less than others) readily accepted this devil’s pact, only to be damned in the process.
  • When Mandela first joined the ANC it was an ineffectual, conservative platform meant to plead for minor concessions from the whites-only regime. He and his close comrades—Sisulu, Tambo and others—turned it into a fighting outfit for radical demands of racial equality.
  • His oration in Havana on that occasion was quite the equal of the oration that another great African revolutionary, Amilcar Cabral, had delivered in that same city.
  • It is difficult to say why he knowingly settled for a neoliberal dispensation in the course of reaching a settlement for the dismantling of the political and legal structures of the Apartheid regime.
  • There is probably some truth to each of these propositions. The tragedy of it all is that it was during the presidency of one of the most inspiring figures of our time that racial apartheid in South Africa was replaced by a class apartheid so severe that perhaps a majority of the blacks are now worse off today than ever before, relative not only to the white property-owners but also those privileged black ones who have amassed fabulous fortunes since the apartheid state structures were undone. It all became very much worse under Mbeki and Zuma but the foundations were laid earlier, in the process of the negotiations and then in those early years of the democratic republic when Mandela was at the helm of affairs.
  • Freed from ceremonies of state, Mandela recovered in roughly the last decade of his life that moral grandeur which had been his throughout his life until he started making all those compromises as negotiator and then as first President of the Republic. The stirring farewell the people of South Africa gave him was well deserved, and a more sober assessment of his life, his achievements and his shortcomings can now begin. There are in any case ample resources in his legacy for a new generation to invoke his name yet again as they set out to fight for a better South Africa.
  • His political career began in the 1940s, with demands for quite modest reform that fell far short of racial equality but sought to protect the professional and entrepreneurial interests of the black middle class.
  • For all the years when he was the acknowledged supreme leader of the anti-Apartheid movement, even through all those twenty-seven prison years, western governments and media corporations routinely called him a “terrorist,” “communist,” “dangerous Marxist revolutionary” etc. However, once he started negotiations with the white regime during the 1980s, though still from inside the prison, those same governments and corporations took to bestowing more and more international stature upon him. Those negotiations were held in the specific backdrop of the Tripartite Accord that was reached between Cuba, Angola ad South Africa built upon undertakings whereby 50,000 Cuban soldiers withdrew from Angola in exchange for the indepedence of Namibia and South Africa’s commitment to stop the over and covert wars that were destabilizing neighbouring countries. It took another year and two months of negotiations after that agreement for Mandela to be released.
  • Thatcher and Reagan—not to speak of the New York Times—used to refer to Mandela as a “terrorist” well into the 1980s.
  • Thus, while some of the key leaders were physically safe either in prison or in exile, at varying distances from the scenes of fighting, some of the most heroic and promising leaders were killed in battle or fell to assassins’ bullets, most notably Chris Hani, an illustrious communist and the key leader of the armed struggle. His assassination in 1993, on the eve of the accord between Mandela and de Klark, was a key event because, with an incorruptable revolutionary temper and with influence and charisma second only to Mandela’s own, Hani was expected to lead the struggle against the kind of South Africa that emerged after those accords.
  • he relevant fact is that French capital re-entered Algeria on an increasingly elaborate scale while government of the FLN kept degenerating into a spectacularly corrupt and authoritarian bureaucracy, which is what it is to this day.
  • Typical among those companions of Mandela was Cyril Ramaphosa, a former mine workers’ union leader, a deputy president of the ANC (and presidential contender), who became a billionaire board member of the corporation that owns the Marikana mine where South African police shot down 34 striking Black miners in cold blood, in August, 2012. Mandela himself was not corrupt in that sense but favours that wealthy businessmen did to him in such matters as building of his post-retirement home are well enough known.
  • Equally disastrous was the disarray in communist ranks in the aftermath of the Soviet collapse. Mandela might or might not have been a member of the CPSA, but we do know that Mbeki and Zuma—the second and third presidents of South Africa whose corruptions became the stuff of legend— were high-ranking members in the party’s executive bodies. Not only that. In precisely the period following the dismantling of Apartheid, when South Africa needed massive construction of public housing for the black working classes and the poor who had been condemned to segregated housing in the shanty town—for the very people, in other words, who had actually made the revolution—the privatization of housing was supervised by none other than Joe Slovo, the chair of the CPSA and famous leader of the armed struggle, who was now looking to the World Bank for advice.
  • The first phase of Mandela’s political activism before he was sent to prison, in 1962, was the time of high tide for socialist, anti-colonial and generally revolutionary movements all across the globe, so that an alliance between nationalists and communists was by no means odd or exceptional. It was during that time that socialist revolutions swept through China and Cuba; the two great European empires, the British and the French, were dissolved; revolutionary wars broke out in Korea, Vietnam, Algeria and elsewhere; the Non-Aligned movement arose as a significant force in global affairs. Liberation was the watchword of the times and Mandela was at the time ideologically comfortable in that world. By the time he came out of incarceration in 1990, the Chinese counterrevolution had been in power for over a decade; the Soviet Union was in the process of fragmentation; European social democracy was succumbing to neoliberalism; Arab secular nationalism had been defeated; and radical nationalist regimes across Asia and Africa had become mere caricatures of themselves.
  • This universalist belief was there not only in the moment of his triumph during the 1990s but from the earliest days of his victimization by the apartheid regime. Facing the death penalty during the Rivonia Trial, he spoke eloquently of the Equality he envisaged as normative moral value for all humanity at the end of his speech in court, on 20the April 1964
  • Mercifully, Mandela himself had a sense of wry humour about it. When John Pilger, the well-known journalist, asked him about this elevation to sainthood, Mandela replied: “That’s not the job I applied for.”
  • Mandela received the Order of Lenin in 1990, the last recipient before the dismemberment of the Soviet Union, and the US began showering honours on him that same year. Is there any significance to this historical coincidence? Or, we may recall that Mandela relinquished the Presidency in 1999 and, only two years later, in 2001, George Soros was to tell the Davos Economic Forum, "South Africa is in the hands of international capital." When, precisely, did post-Apartheir South Africa fall into those hands: after 1999? Or before?
  • Subsequent trajectory of South Africa seems to have been profoundly shaped by the fact that most of the ANC leaders, some of whom were also important members of the SACP (Mbeke was member of the central committee; Jacob Zuma joined in 1963 and was elected to the Politburo in 1989), spent virtually the whole period of the revolutionary struggle either in prison (such as Mandela and Sisulu) or in exile (most of the others).
  • In this respect, the situation in South Africa was somewhat reminiscent of the Algerian Revolution. Leaders like Ben Bella (the first post-revolutionary President) were captured early and came out of prison with unsullied reputations of legendary proportion; they could negotiate away anything and yet be held in highest esteem. Other men, like Boumedienne (the 2nd President, who replaced Ben Bella), stayed put in neighbouring Tunisia and rose to political power after the French withdrawal on the strength of the Army of the Exterior that had remained in tact, in command of men and materials, while those who fought the bitterest battles on Algerian soil were largely decimated.
  • In Algeria, the famous Tripoli Program was promulgated virtually at the end of the war of Independence, in June 1962, in the very last meeting of the leadership of the National Liberation Front (FLN) before the factional conflicts of that summer broke out. The program was chiefly the work of Redha Malek, Mohamed Bedjaoui, and Mohamed Benyahia, and proposed a "socialist option" for Algeria’s development. It envisioned the nationalization of foreign interests, the inauguration of agricultural cooperatives and an industrial economy largely in the state sector. The program viewed the recently signed Evian Accords with France as neocolonialist because the accords guaranteed the French colons their full property rights and included an article which stated that "Algeria concedes to France the use of certain air bases, terrains, sites and military installations which are necessary to it."
  • All that was more or less written into the kind of transition that was made when the key apartheid structures were abolished. The agreement which ended apartheid and established majority rule based on universal suffrage also allowed whites to keep the best land, the mines, manufacturing plants, and financial institutions, and to export vast quantities of their wealth without restriction.
  • Mandela was an amalgam of moral courage and universalist convictions in his social vision, and of increasingly capitalist, even neoliberal convictions in matters of political economy as well as a peculiarly advanced toleration for the corruption of his colleagues.
  • he became more a symbol of that resistance than an active leader or combatant in the field of battle, and then came out of prison only when a negotiated settlement was at hand. However, three things need to be added immediately. First, not even that long period of incarceration could dent, let alone kill, his indomitable spirit. His resolve remained the same, as did his commitment to humanist value beyond racial or personal hatreds. Second, his stature was such that when a final settlement was to be made, none other—not the senior leaders in exile, nor leaders and commanders stationed in neighboring countries—could be the final negotiator with the opposing apartheid regime. Mandela alone retained that authority to represent Black South Africa as a whole. Transition to post-Apartheid peace would come with his consent, or peace would not come. This unrivalled authority of course implies a unique responsibility for what followed. Third, in his generous acknowledgement of those who had actively supported the people of South Africa he was fearless, and impervious to the effect his open expressions of gratitude would have on his enemies.
  • As Fanon memorably said: the historical phase of the national bourgeoisie is a useless phase. Much worse than useless, we may now add after far greater accumulation of horrors than what Fanon might have imagined.
  • A South African communist told me in the late 1990s while Mandela was president: “we now run the economy they own.” In state policy, the neoliberal turn that had been initiated by the apartheid regime in its latter years was to be extended greatly under ANC rule.
Arabica Robusta

allAfrica.com: Nigeria: Nepad and Challenges of Charting Development Strategies - 0 views

  • Adedeji further disclosed that it is now widely acknowledged that the current global turbulence accentuated by the financial and banking turmoil which is reminiscent of the Great Depression of the 1920s and the 1930s, including the recent upheaval in Nigeria 's banking sector, "is the failure of corporate governance.."
    • Arabica Robusta
       
      Governance, in this reading, seems to be a catch-all term that applies to everything and yet means nothing. Neoliberal economics was about opening economies to the efficiency of the market, and now when the market fails corporations are given the same diagnosis as governments. Now, who will incent governance by the corporations? The World Bank? The OECD? The Paris Club?
Themba Dlamini

Stefanutti Stocks jobs in South Africa - 0 views

  •  
    Administrator Stefanutti Stocks - Kempton Park, GP An opportunity exists for a Administrator within our Corporate Services: IT operation. This person will be required to handle all administrative and financial...
Arabica Robusta

Mandela's greatness may be assured, but not his legacy - 0 views

  • Still, he was well used to deferential interviews and I was ticked off several times - "you completely forgot what I said" and "I have already explained that matter to you". In brooking no criticism of the African National Congress (ANC), he revealed something of why millions of South Africans will mourn his passing but not his "legacy".
  • Once in power, the party's official policy to end the impoverishment of most South Africans, the Reconstruction and Development Programme (RDP), was abandoned, with one of his ministers boasting that the ANC's politics were Thatcherite."You can put any label on it if you like," he replied. "...but, for this country, privatisation is the fundamental policy.""That's the opposite of what you said in 1994.""You have to appreciate that every process incorporates a change."
  • Few ordinary South Africans were aware that this "process" had begun in high secrecy more than two years before Mandela's release when the ANC in exile had, in effect, done a deal with prominent members of the Afrikaaner elite at meetings in a stately home, Mells Park House, near Bath. The prime movers were the corporations that had underpinned apartheid.
  • ...5 more annotations...
  • In 2001, George Soros told the Davos Economic Forum, "South Africa is in the hands of international capital."
  • Ironically, Mandela seemed to change in retirement, alerting the world to the post 9/11 dangers of George W. Bush and Tony Blair. His description of Blair as "Bush's foreign minister" was mischievously timed; Thabo Mbeki, his successor, was about to arrive in London to meet Blair. I wonder what he would make of the recent "pilgrimage" to his cell on Robben Island by Barack Obama, the unrelenting jailer of Guantanamo.
  • The apartheid regime's aim was to split the ANC between the "moderates" they could "do business with" (Mandela, Thabo Mbeki and Oliver Tambo) and those in the frontline townships who led the United Democratic Front (UDF).
  • Mandela, too, fostered crony relationships with wealthy whites from the corporate world, including those who had profited from apartheid. He saw this as part of "reconciliation". Perhaps he and his beloved ANC had been in struggle and exile for so long they were willing to accept and collude with the forces that had been the people's enemy.
  • White liberals at home and abroad warmed to this, often ignoring or welcoming Mandela's reluctance to spell out a coherent vision, as Amilcar Cabral and Pandit Nehru had done.
Arabica Robusta

t r u t h o u t | A Humanitarian Disaster in the Making Along the Chad-Cameroon Oil Pip... - 0 views

  • The World Bank’s public sector lending arms (the IDA and IBRD) announced their withdrawal from the project in 2008 stating “Chad failed to comply with key requirements” of their participation, though the World Bank’s private sector lending arm (the IFC) had no problem staying on board to reap the benefits of its $200 million commercial loan.
  • Despite receiving minimal “transit revenues” from Chad’s oil, the pipeline’s social and environmental impacts are just a harsh for Cameroonians living along the pipeline route. 248 villages are directly impacted by the pipe and dozens more by roads, operations centers, and employee living bases all built expressly for the project. Unlike in neighboring Chad, no oil revenues have been set aside for development spending in the affected villages. The Cameroonian government claims it only receives $25 million per year and some of that money returns to impacted villages via increased social spending in the national budget. But the truth is no one knows where the $25 million is spent (or if that’s the true amount) and there is no accountability for the use of the revenues.
  • The Chief of Dompta signed a contract with Exxon for the construction of a health clinic as “community compensation.” When the health clinic wasn’t built, he wrote to the oil consortium demanding they follow through on their written agreement. One of Exxon’s directors cordially replied that the health center would be built and the village could use health clinics in neighboring villages until then. Dompta’s chief died in 2007 and was replaced by his son as tradition requires. The new Dompta chief claims Exxon built a health center in Dompla (notice the difference in spelling), a village about 30 kilometers away and even proudly posted a sign that read “Dompta Health Clinic.” We will never know if this is a cruel joke or corporate idiocy because no one from the oil consortium has yet to comment on the issue. For the people of Dompta, it doesn’t really matter.
  • ...10 more annotations...
  • Mongotsoe Akam is a quiet and awkward grandfather living in the small village of Ebaka in Cameroon’s East Province. He has been a farmer his whole life and seems content to continue living the traditional village life. During the pipeline’s construction, multiple subcontractors of the oil consortium were constantly buzzing around his home and farm. They were looking for laterite, a type of rock used to surface the unpaved roads the consortium built to transport materials and heavy machinery. Mr. Mongotsoe showed them the exact location of his laterite and negotiated a price for its extraction. Not only was he never paid for the use of his laterite, but he also was never compensated for the $50,000 worth of crops that were bulldozed to access the quarry.
  • Exxon and the project planners claimed that compensations would be paid to displaced people, but that “self resettlement” would take place naturally whereby villagers would find/purchase new land for farming from a “village land pool.” A recent Chadian report notes that this has not happened; many farmers have not found land or enough land. Agricultural production is continually declining and will ultimately penalize the entire country.
  • Villagers often live precariously close to oil wells which turn round the clock. Increased banditry in the zone led the former governor of the Logone Oriental Province to instruct local police to “arrest or shoot on sight” anyone circulating through the zone after 6 pm. Now people living in the zone are literally surrounded by oil infrastructure and prisoners in their own homes. Almost every facet of their lives is governed by Exxon, the de facto local government.
  • On October 11 of this year, Keiro discovered an oil spill while returning home from his farm. He alerted Exxon employees who immediately cordoned off the area and “cleaned” it up before any outside observers could see the damage. The oil spill ruined Keiro’s fallow land, and so they decided to compensate him with a special gift: an empty Esso (Exxon’s operator) backpack. This was allegedly the fifth oil spill related to the project, yet was not reported by a single media outlet in or outside of Chad. If a journalist from the Associated Press made just one phone call to Exxon in Houston, Keiro likely would receive thousands of dollars of compensation within a week.
  • As for the 5% of oil revenues promised to residents of the oil-producing zone -- it’s all being spent on so-called “Presidential Projects.” These are high-profile large infrastructure projects that Deby has gifted to the regional capital of Doba, more than a thirty-minute drive from the villages hit hardest by oil production. These projects, which include an already crumbling football stadium, are intended to win support for Deby’s party in the 2010 local elections and 2011 presidential election
  • The greatest impact of oil in Chad has been felt not by the caged-in villages of the Doba Basin, but rather in the North and East of country where hundreds of millions of dollars of oil money has been used to purchase weapons for a war that has killed thousands and displaced hundreds of thousands
  • ” In September, 2009 the oil consortium finally offered to settle with Mongotsoe for a mere $600. When the old man refused, an Exxon employee told two Cameroonian NGOs that Mongotsoe was trying to swindle the company since he knows they have tons of money.
  • . Traditional Kribians wake up around 5 am and ready their wooden canoes for the day’s fishing expedition. As each day passes, they paddle farther and farther to catch fewer and fewer fish. That’s because one of the principal fishing reefs was dynamited to make way for the Chad-Cameroon pipeline, which is buried under 11 kilometers of seabed.
  • The World Bank asked the government of Cameroon and Exxon to jointly publish an official “Oil Spill Response Plan” before the project became operational in 2003. The plan was “inaugurated” at Yaounde’s ritzy Hilton Hotel on November 3rd, 2009. A member of a prominent Cameroonian NGO which has been monitoring the project was barred from the event because “he didn’t have accreditation.”
  • The ultimate goal of international campaigning is to “leave African oil in the soil” and build stronger governance beforehand since the extractive industries almost never contribute to development. However, powerful interests are making that objective difficult. Thus the fight will for now be concentrated on policy improvements.
Arabica Robusta

Pambazuka - Protests across Africa: Different attention for different countries? - 0 views

  • As Gaddafi finds new ways to attack Libyans, Libyans unleash their fury against his deployment of mercenaries from West and East Africa as migrant workers from south of the Sahara face increasing attacks and are prevented from leaving the country. Given the racism in Libya and low status of foreign black workers, it was only a matter of time before innocent people were attacked.
  • The language and subtext being used in some of the reports is cause for concern. In a video by Al Jazeera, ‘Immigrant workers under suspicion’, the US-based Frontlines of Revolution uses the headline ‘White Arab supremacy: Revolution or Moor black oppression?’ There is no doubt that there that racism is rife in Libya and that black foreign workers are being targeted, but language like this and lack of historical or political context only inflames the situation
  • Nonetheless, the assault on black Africans is disturbing, not least because the uprisings in North Africa have been framed within an Arab/Middle East context, not just by Western media but more importantly by Al Jazeera, which itself has become part of the revolutionary story. This in itself further antagonises Arab–African/Arab–black tensions and also raises the monumental question as to who is an African and what do we mean by Africa. Pambazuka News editor Firoze Manji addresses this in a recent interview with Al Jazeera – could this possibly be a response to growing criticism of their framing the North African uprisings solely in an ‘Arab’ context?
  • ...4 more annotations...
  • ‘They wanted to stop us from protesting, we protested. We have a non-violent philosophy, which we maintained in the face of extreme violence. An incredible force of young Cameroonians. We started out almost 300 and ended up less than 50 but (being a) nugget has banished fear, for ourselves and for many other Cameroonians. The population did not join us in droves, but: not one person out of hundreds complained about the blocking on the road; If we ever doubted it, we now have extreme clarity on the absolute need for change and the absolute need for unwavering determination in bringing it about in our country.’ Six members of Cameroon O’Bosso have been arrested and remain in detention.
  • I am sure global corporate media are aware of what is happening and it’s clear that choices are made on which conflicts and revolutions are covered.
  • The mistake the media and activists in the West make is to believe that the voice of revolution has to be highly vocal and visible to their world. On the contrary, there are thousands of activists and social justice movements from across Africa and the diaspora who are totally committed to achieving political and social change in their respective countries. It just takes a little effort and time to know what is happening.
  • As informed citizens and if we are to see ourselves as part of the revolutionary process, then we need to try and grasp an understanding of the layers of narrative and actions which are taking place, not just across Africa but on a global level.
Arabica Robusta

Displacement, intimidation and abuse: land loyalties in Ethiopia | openDemocracy - 0 views

  • With the coming of industrial-size farms in Ethiopia, local people, villagers and pastoralists (deemed irrelevant to the Government’s economically-driven development plans) are being threatened, and intimidated by the military; forcibly displaced and herded into camps, their homes destroyed. Along with vast agricultural complexes, dams are planned and constructed, water supplies re-directed to irrigate crops, forests burnt, natural habitats destroyed. Dissenting voices are brutally silenced – men beaten, children frightened, women raped, so too the land.
  • Three quarters of all land deals take place in sub-Saharan Africa, in some of the most food-insecure, economically vulnerable, politically repressive countries in the world; precisely, some say, because of such advantageous commercial factors.
  • In Ethiopia, land sales are occurring in six key areas. Oromia and Gambella in the south, Amhara, Beneshangul, Gumuz, the Sidaama zone, or SNNP and the Lower Omo Valley – an area of outstanding natural beauty with acclaimed UNESCO World heritage status. The Ethiopian government’s conduct in Omo and Oromia, Genocide Watch (GW) considers “to have already reached stage 7 [of 8], genocidal massacres”.
  • ...4 more annotations...
  • Conditional within land lease agreements is the requirement that the government will clear the area of “encumbrances”, meaning indigenous people – families, children and pastoralists, as well as cattle, wildlife, forests, anything in fact that will interfere with the levelling of the land, building of [foreign] workers’ accommodation, roads and the eventual sowing of crops.
  • Along with pastoralists, who number around 300,000 in Gambella alone, villagers are herded, sometimes literally, always metaphorically, at the end of a rifle, into Villagisation camps. Despite Government promises to “provide basic resources and infrastructure, the new villages”, HRW found “have inadequate food, agricultural support, and health and education facilities”.
  • The government proclaims land sales are part of a strategic, long-term approach to agricultural reforms and economic development, that foreign investment will fund infrastructure projects, create employment opportunities, help to eradicate hunger and poverty and benefit the community, local and national. The term “development” is itself an interesting one: distorted, linked and commonly limited almost exclusively to economic targets, meaning growth of GDP, established principally by the World Bank, whose policies and practices in relation to land sales, the OI discovered, “have glossed over critical issues such as human rights, food security and human dignity for local populations”, and its philanthropic sister, the International Monetary Fund. Meanwhile market fundamentalism drives the exported (one size fits all) policies, of both ideologically entrenched organisations, that promote models of development seeking to fulfill corporate interests first, last and at every stage in between.
  • Protagonists laying claim to the all-inclusive healing powers of agriculture and agro-industrial projects, contradict, the OI states, “the basic facts and evidence showing growing impoverishment experienced on the ground”. What about the bumper benefits promised, particularly the numerous employment opportunities? It turns out industrialised farming is highly mechanised and offers few jobs; overseas companies are not concerned with providing employment for local people and care little for their well-being, making good bed mates for the ruling party. They bring the workers they need, and are allowed to do so by the Ethiopian government, which places no constraints on their operations.
Arabica Robusta

Pambazuka - Fear and freedom in Africa - 0 views

  • I believe that at this stage in our collective development, youth in many African countries are still seized by flawed ideas of what progress looks like. We hold ourselves to impossibly high standards of “development” that have only been truly achieved in a handful of countries, none of which are particularly vocal about the need to achieve these goals.
  • I won’t bore you with the details. Suffice it to say that my trip to Burkina Faso was one of the most memorable experiences that I’ve ever had. Aside from the beauty of the country in all its complexities, the incredible warmth of the welcome I received took me by surprise. Strangers opened up their homes to me. I never paid for transport. I rarely paid for food.
  • Borrowing from X, I would ask African youth: who taught us to fear each other? I’m inclined to believe that we are in fear of an Africa that does not exist save in the mind of an overzealous elitist journalist in search of a sexy by-line or adventure. I challenge you: gather all of your friends who have a passport and have ever used it and ask them where they’ve used it.
  • ...3 more annotations...
  • After 29 African countries of travel, I’ve heard it all. Tribes are useless. Kenyans are violent. Tanzanians are lazy. Nigerians are criminals. South Africans are racist. The DRC is too dangerous. Where is Namibia? All from the mouth of other Africans who have never been or even dreamed of going to the countries in question. We make all these definitive statements based on information filtered through an elitist and biased lens, that is comparing the worst of Africa with the best of the US or the UK. Africans are otherised, and we play along, forgetting that we are Africans too. Then we learn to hate ourselves and fear each other simply because the narrative tells us to.
  • “The most potent tool in the hands of the oppressor is the mind of the oppressed.” The potency of this tool comes from its ability to skew our thinking and shape our actions. Like a child who, seeing shadows at night and believing that they are ghosts, cannot leave his bed to relieve himself, our irrational fear of each other is forcing us to sleep in the urine of lowered expectations and mutual suspicion.
  • So as I reflect on the state of African youth, it occurs to me that the biggest problem facing African youth today is not a lack of opportunity, or poverty, or whatever. Our biggest problem from where I stand is our inability to see ourselves with unfiltered honesty and a raw love.
Arabica Robusta

Cameroon: Stop Oil Palm Plantations from Destroying Africa's Ancient Rainforests | Cult... - 0 views

  • Their struggle began in 2011 when the government of Cameroon granted a vast land concession to SG Sustainable Oils, a subsidiary of the New York-based Herakles Farms.
  • The giant plantation will also fragment and isolate the region’s protected areas, including Korup National Park, Bakossi National Park, Banyang Mbo Wildlife sanctuary, Nta Ali Forest Reserve, and Rumpi Hills Forest Reserve. Despite the domestic laws of Cameroon that were implemented to protect rainforests from massive land leases, Herakles Farms has moved forward with the removal of the rainforest and the expansion of their oil palm nursery.
  •  
    The giant plantation will also fragment and isolate the region's protected areas, including Korup National Park, Bakossi National Park, Banyang Mbo Wildlife sanctuary, Nta Ali Forest Reserve, and Rumpi Hills Forest Reserve. Despite the domestic laws of Cameroon that were implemented to protect rainforests from massive land leases, Herakles Farms has moved forward with the removal of the rainforest and the expansion of their oil palm nursery.
Arabica Robusta

U.S. Escalates Military Penetration of Africa | Black Agenda Report - 0 views

  • Obama’s “good governance” smokescreen for U.S. neocolonialism is embedded in AFRICOM’s stated mission: “to deter and defeat transnational threats and to provide a security environment conducive to good governance and development." Translation: to bring the so-called war on terror to every corner of the continent and ensure that U.S. corporate interests get favorable treatment from African governments.
  • Regime change will never be farther away than a drink at the officers club.
  • Americans, no matter how bloody their hands, have always liked to think of themselves as “innocents abroad.” “As far as our mission goes, it’s uncharted territory,” said AFRICOM’s Gen. Hogg.
  • ...1 more annotation...
  • Gen. Hogg says AFRICOM’s mission is to combat famine and disease. Yet, the AFRICOM-assisted Ethiopian invasion of Somalia in late 2006 led to “the worst humanitarian crisis in Africa – worse than Darfur,” according to United Nations observers. The 2007 humanitarian crisis and the escalating U.S.-directed war against Somalia made the 2010 famine all but inevitable.
1 - 20 of 37 Next ›
Showing 20 items per page