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Arabica Robusta

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

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

Africa Unchained: South Africa's Extractive Elite are sitting on a Powder Keg - 0 views

  • These days it can seem that South Africa has been turned upside down. Relying on apartheid-era legal tactics, prosecutors have said they are charging 270 miners arrested after the melee, not the police officers who fired the bullets, with the murder of their colleagues.
Arabica Robusta

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

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

Mandela's Democracy :: Monthly Review - 0 views

  • The land, then the main means of production, belonged to the whole tribe, and there was no individual ownership whatsoever. There were no classes, no rich or poor, and no exploitation of man by man. All men were free and equal and this was the foundation of government. Recognition of this general principle found expression in the constitution of the Council, variously called Imbizo, or Pitso, or Kgotla, which governs the affairs of the tribe. The council was so completely democratic that all members of the tribe could participate in its deliberations. Chief and subject, warrior and medicine man, all took part and endeavoured to influence its decisions. It was so weighty and influential a body that no step of any importance could ever be taken by the tribe without reference to it… In such a society are contained the seeds of revolutionary democracy in which none will be held in slavery or servitude, and in which poverty, want and insecurity shall be no more. is is the inspiration which, even today, inspires me and my colleagues in our political struggle.
  • The role of the leader is to interpret the arguments and viewpoints put forward in debate in such a way as to make that consensus possible, drawing from expressions of difference a "tribal wisdom" which reaffirms their essential unity. The model requires that the leader who takes this role should be accepted, but not necessarily elected. What is crucial is that the question of leadership be settled beforehand, and kept separate from the question of how the popular will is to be interpreted.
  • In capitalism, wage-labor is the principal means of access to the means of production, and profits depend on not paying more for it than the capitalist can help.
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  • But in this version, the tribal model of democracy remained in a fundamentally ambiguous relationship to capitalism. While it rejected capitalism, it could never provide a real analysis of it. Instead, it saw capitalism as the product of the philosophical outlook of European civilization, against which an African philosophy of harmony and unity might prevail. Invoking a pre-capitalist past as the basis for a call for racial equality within the capitalist present, it was unable to generate a real critique of capitalism, on the one hand, or to reach an effective accommodation with it, on the other.
  • The hereditary position of the chief is lost from view in this version of tribal democracy, and his tolerance of criticism and commitment to open debate comes to the fore.
  • Through all of this, the tribal model is extended significantly, in such a way as to make it a model of the democratic virtues, and in some moments a model of democracy constituted by such virtues.
  • His admiration for the African past presented no barrier to his admiration for the Magna Carta, the Bill of Rights, British Parliament and the American Congress. These did not belong, as for Lembede, within a fundamentally different philosophical outlook. In this sense, Mandela can be said to have returned the conception of the unified African past to its liberal and missionary origins.
  • The result of this fivefold transformation was to create a moral framework for South African politics in which Africanist and Western liberal elements were integrated in so instinctive and original a way that Mandela himself could probably not have said where the one ended and the other began. This framework had disabling effects in some respects, and enabling effects in others. Although it was a powerful mobilizing tool, it set limits to political clarity.
  • A brief account of his economic views will show how the tribal model made room for the capitulation of the ANC to capital.
  • In Mandela’s case, the ground for it was laid in his earliest economic writing, a defense of the nationalization clauses of the Freedom Charter, published in 1956. The Freedom Charter, Mandela argued, was "by no means a blueprint for a socialist state but a program for the unification of various classes and groupings amongst the people on a democratic basis… [It] visualizes the transfer of power not to any single social class but to all the people of this country, be they workers, peasants, professional men or petty bourgeoisie." The curiosity of the argument is that it neither avoids the existence of classes (as would a liberal democrat, emphasizing individual rights instead) nor draws any conclusion about their relationship (as would a Marxist). It acknowledges the existence of classes, but assumes that each can pursue its aims in harmony with the rest. The model of democracy which enables class relationships to be harmonized is surely the tribal one; just as the chief extracts a consensus from the differing opinions of the tribe, so the democratic state extracts a consensus from bosses and workers, enabling each side to pursue its interests without impeding the interests of the other.
  • Until the meeting of the World Economic Forum in Davos, Switzerland in 1992, he continued to defend nationalization as an instrument of economic policy. But on his return from that event, he noted: "We have observed the hostility and concern of businessmen towards nationalization, and we can’t ignore their perceptions… We are well aware that if you cannot co-operate with business, you cannot succeed in generating growth." The policies of the ANC moved rapidly towards privatization, fiscal austerity, and budgetary discipline. By the time he addressed the Joint Houses of Congress of the United States on October 6, 1994, Mandela was ready to proclaim the free market as the "magical elixir" which would bring freedom and equality to all.
  • Once it became apparent that "the hostility and concern of businessmen towards nationalization" was more than even the prestige of Mandela could alter, his prestige had to be used for the cause of privatization. The capitalist market had become the meeting place of the global tribe!
  • A hidden consistency in his political thought holds together a dual commitment to democracy and capitalism, and legitimates a capitalist onslaught on the mass of South Africans, who sustained the struggle for democracy for decades.
  • Once Mandela had been released from prison and negotiations had begun, the crucial idea which made it possible for the ANC to organize the oppressed majority around the tribal model was that of society being made up of "sectors"—youth, women, business, labor, political parties, religious and sporting bodies, and the like—each with a distinctive role to play. This idea has emerged from the organizational needs of the struggle against apartheid when repressive conditions prevented them from mobilizing around directly political demands. It was now used to insulate the leadership of the liberation movement from critical questioning. In this vein, Mandela explained to the Consultative Business Movement in May 1990: "Both of us—you representing the business world and we a political movement—must deliver. The critical questions are whether we can in fact act together and whether it is possible for either of us to deliver if we cannot or will not co-operate." In calling upon business—and, in their turn, labor, youth, students—to act within the limits of a "national consensus," the question of the basis of that consensus could be removed from sight. In effect, the "tribal elders" of South African capitalism were gathered together in a consensus which could only be "democratic" on the basis of capitalism.
Arabica Robusta

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

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

allAfrica.com: Africa: On Earth Day, Africa Action Calls for U.S. to Support Sustainabl... - 0 views

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    In recognition of Earth Day, Africa Action today released a new resource entitled A Strategy of Extraction examining the oil industry in Africa using the case study of Nigeria's Niger Delta region. Because of poverty and geography, Africa will be disproportionately impacted by climate change. Africa Action urged leaders to prioritize sustainable, people-driven development in U.S.-Africa relations.
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.
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  • 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 - 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.
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  • 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

Pambazuka - Washington in Africa 2012 - 0 views

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

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.
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  • 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 - Contextualizing Obama's visit to Africa - 0 views

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

Pambazuka - The revolution and the emancipation of women - 0 views

  • Sankara vehemently and publicly denounced odious debt and rallied African political leaders to do the same.
  • What distinguishes Sankara from many other revolutionary leaders was his confidence in the revolutionary capabilities of ordinary human beings. He did not see himself as a messiah or prophet, as he famously said before the United Nations General Assembly in October of 1984. It is worth quoting from Sankara at length, when before the delegation of 159 nations, he said: ‘I make no claim to lay out any doctrines here. I am neither a messiah nor a prophet. I possess no truths. My only aspiration is…to speak on behalf of my people…to speak on behalf of the “great disinherited people of the world”, those who belong to the world so ironically christened the Third World. And to state, though I may not succeed in making them understood, the reasons for our revolt’.
  • Meaningful social transformation cannot endure without the active support and participation of women. While it is true that women have been deeply involved in each of the great social revolutions of human history, their support and participation has historically often gone relatively unacknowledged by movement leaders.
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  • Sankara was somewhat unique as a revolutionary leader - and particularly as a president - in attributing the success of the revolution to the obtainment of gender equality. Sankara said, ‘The revolution and women’s liberation go together. We do not talk of women’s emancipation as an act of charity or out of a surge of human compassion. It is a basic necessity for the revolution to triumph’.
  • Thomas Sankara, a Burkinabé with military training, had witnessed the student and worker-led uprisings in Madagascar.
  • Blaise Compaoré remains the president of Burkina Faso today and has been implicated in conflicts in Liberia, Sierra Leone, Cote d’Ivoire, and in arms trafficking and the trafficking of diamonds. There has been no independent investigation into Thomas Sankara’s assassination, despite repeated requests by the judiciary committee of the International Campaign for Justice for Thomas Sankara, a legal group working in the name of the Sankara family. The UN Committee for Human Rights closed Sankara’s record in April of 2008, without conducting an investigation into the crimes.
  • The revolution’s promises are already a reality for men. But for women, they are still merely a rumor. And yet the authenticity and the future of our revolution depend on women. Nothing definitive or lasting can be accomplished in our country as long as a crucial part of ourselves is kept in this condition of subjugation - a condition imposed…by various systems of exploitation.
  • He locates the roots of African women’s oppression in the historical processes of European colonialism and the unequal social relations of capitalism and capital exploitation. Most importantly, he stressed the importance of women’s equal mobilisation. He urges Burkinabé women into revolutionary action, not as passive victims but as respected, equal partners in the revolution and wellbeing of the nation. He acknowledges the central space of African women in African society and demanded that other Burkinabé men do the same.
  • In an interview with the Cameroonian anticolonial historian Mongo Beti, he said, ‘We are fighting for the equality of men and women - not a mechanical, mathematical equality but making women the equal of men before the law and especially in relation to wage labor. The emancipation of women requires their education and their gaining economic power. In this way, labor on an equal footing with men on all levels, having the same responsibilities and the same rights and obligations…’.
  • He criticised the oppressive gendered nature of the capitalist system, where women (particularly women with children to support) make an ideal labour force because the need to support their families renders them malleable and controllable to exploitative labour practices.
  • US-backed militarisation of Africa takes a couple of different forms.
  • First, it means an increase in troops on the ground. US Special Ops and US military personnel have been deployed in the Central African Republic, the Democratic Republic of the Congo, Mali, Mauritania, South Sudan, and (potentially) Nigeria.
  • Second, US military personnel conduct training sequences with African militaries.
  • Third, the US military funds social science research into African society, culture and politics. This takes various forms, one of which is the use of SCRATs (or Sociocultural Advisory Teams) for the purposes of preparing US military personnel for deployment and missions.
  • A strong military structure paves the way for the resource plunder and large scale dispossessions that are seen in neoliberal states in the so-called Global South. In this system, the state ensures profit for class elites (both international and domestic) by guaranteeing the super-exploitation of labour and the dispossession of millions of people of their lands and livelihoods for resource extraction at serious costs to local ecology, health and wellbeing. This guarantee can only be made through an increased militarism that stifles political mobilisation.
  • Thomas Sankara and the August Revolution of 1983 tells us another story. They provide a different way of thinking about social organisation. Sankara understood that capitalism is dependent upon the unequal deployment of and distribution of power, particularly state power. But, as he showed us, the state is not unalterable. The state is a complex system of human relationships that are maintained through violent power/coercion and persuasion. And what Sankara did was work to bring the state apparatus down to the level of the people, so to speak.
  • The image of my daughter’s grandfather entering his home and collapsing onto the sofa, holding his face in his hands and crying emerges in my head each time I think of Sankara. This image of a middle aged Cameroonian man, Jacque Ndewa, thousands of miles away, who had never travelled to Burkina Faso, crying quietly on his sofa. This is the resonance that Sankara had, across the African continent and among disenfranchised and dispossessed people everywhere.
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.
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  • 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.
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    "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

Guinea's anti-corruption activists raise doubts over mining crackdown | Afua Hirsch | G... - 0 views

  • Guinea's first democratically elected government since independence – led by Alpha Condé, a former doctor of law and professor at the Paris-Sorbonne University in France – is trying to reform and rebrand the country after decades of chronic mismanagement.
  • At the heart of efforts to attract investors are reforms to the mining code, and the creation of a committee to re-evaluate all 18 mining contracts and make recommendations for some to be renegotiated. "We are making an in-depth assessment of the contracts. If there are some imbalances, our mandate is to negotiate with the mining companies in order to regulate them," says Nava Touré, president of the committee.
  • Anti-corruption activists say the process lacks teeth and depends on the goodwill of companies to renegotiate the terms of mining deals, something the government admits.
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  • "The process is more symbolic than anything else. It is really about setting the tone for the future governance of Guinea. But it is important that these messages are sent now, so that any future government can build on them."
  • Some question whether anti-corruption bodies have the power to make a difference. Abdoul Rahamane Diallo, Guinea programme co-ordinator for the Open Society Initiative for West Africa, says: "The problem with all these bodies is that they do investigations, they get reports, but they cannot prosecute.
  • "Sometimes it feels as if the state is disappearing beneath these private enterprises," adds Falcone, whose organisation has 44 staff and a budget of only £75,000 a year. "These companies have the means to influence our politicians and political parties. But fortunately we are beginning to form stronger institutions to take them on."
Arabica Robusta

Pambazuka - Development post-2015: What role for African diaspora? - 0 views

  • Another bias I must confess to is being heavily influenced by the book, Why Nations Fail: The Origins of Power, Prosperity and Poverty by Daron Acemoglu and James A Robinson in which they advance the thesis that it is a combination of inclusive – as opposed to extractive – political and economic institutions that explains the success or failure of nations. For sure, though widely acclaimed, theirs is a hotly contested thesis, but arguments that more aid is central to the achievement of the MDGs do not stack up: it is hard to correlate aid levels with improvements in education or health.
    • Arabica Robusta
       
      Moyo argument
  • To be blunt, poor countries need to improve their governance. The problem is that aid and global campaigns have a poor track record of improving governance. It is not just love that money can’t buy, good governance also. There is no escaping that good governance is endogenous.
  • A job opens up the prospect not just of economic security and wellbeing for the employed or self-employed person, it also offers dignity and hope of a better life, even if current conditions are far from ideal. Apart from putting money in the pockets of workers, who can then exercise more choice over their own lives – pay for housing, food, healthcare, school fees, clothing, leisure, and save for a rainy day – jobs are important means to the end of better governance in the places that lack them but need them most of all.
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  • Apart from the moral qualms we should have about rising, high, and stubborn inequality, for regions facing a forthcoming youth surge, the prospect of relegating large numbers of able young people to the economic scrap heap is tantamount to embracing an era of social upheaval and instability. Such young people will be susceptible to the deceptively attractive quick-fixes that extremist movements offer. In an increasingly interconnected world, inequality is a global threat to peace and security.
  • Universal strategies to create jobs – millions and millions of them; reducing inequality; all done in a more transparent, globally interconnected way is the promise of the future. It often amazes me how much time and effort we all spend pontificating about international development. Yet in the last 50 years or more – in living memory – we have witnessed radical peaceful transformations of economies that have lifted millions of people out of poverty and seen emerging economies join the ranks of the richest, most stable developed economies in the world. Development may not be easy but it is not rocket science.
Arabica Robusta

Who is lying about Newmont's Akyem ''Galamsey'' Mine? | Feature Article 2013-11-22 - 0 views

  • I understand that the President of Ghana Chamber of Mines (one Dr. Tony Aubynn) and an External Affairs and Communications Director at Newmont (one Adiki Ayitevie) have waded into the debate, suggesting that it’s been the practice and Newmont is not doing anything illegal. This is indeed a bad practice and an illegal one. Even though Dr. Aubynn indicated his profound respect for rule of law it is clear that such respect cannot be extended to all laws and some aspects of the constitution in the country.
  • This time around the Chairman of the Parliamentary Committee on Mines and Energy (one Dr. Kwabena Donkor) expressed shock that Newmont has started mining gold at its Akyem mine even before its mining lease is ratified by parliament. I understand some other MPs have expressed similar worries. Dr. Donkor has consequently described Newmont’s operations at the said mine as illegal, hence the company is engaging in ‘‘galamsey’’ mining activity – a very popular categorization for widespread illegal small scale mining activities in the country.
  • This time around the Chairman of the Parliamentary Committee on Mines and Energy (one Dr. Kwabena Donkor) expressed shock that Newmont has started mining gold at its Akyem mine even before its mining lease is ratified by parliament. I understand some other MPs have expressed similar worries. Dr. Donkor has consequently described Newmont’s operations at the said mine as illegal, hence the company is engaging in ‘‘galamsey’’ mining activity – a very popular categorization for widespread illegal small scale mining activities in the country
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  • I understand that the President of Ghana Chamber of Mines (one Dr. Tony Aubynn) and an External Affairs and Communications Director at Newmont (one Adiki Ayitevie) have waded into the debate, suggesting that it’s been the practice and Newmont is not doing anything illegal. This is indeed a bad practice and an illegal one. Even though Dr. Aubynn indicated his profound respect for rule of law it is clear that such respect cannot be extended to all laws and some aspects of the constitution in the country.
  • I understand that the President of Ghana Chamber of Mines (one Dr. Tony Aubynn) and an External Affairs and Communications Director at Newmont (one Adiki Ayitevie) have waded into the debate, suggesting that it’s been the practice and Newmont is not doing anything illegal. This is indeed a bad practice and an illegal one. Even though Dr. Aubynn indicated his profound respect for rule of law it is clear that such respect cannot be extended to all laws and some aspects of the constitution in the country.
  • I understand that the President of Ghana Chamber of Mines (one Dr. Tony Aubynn) and an External Affairs and Communications Director at Newmont (one Adiki Ayitevie) have waded into the debate, suggesting that it’s been the practice and Newmont is not doing anything illegal. This is indeed a bad practice and an illegal one. Even though Dr. Aubynn indicated his profound respect for rule of law it is clear that such respect cannot be extended to all laws and some aspects of the constitution in the country.
  • I understand that the President of Ghana Chamber of Mines (one Dr. Tony Aubynn) and an External Affairs and Communications Director at Newmont (one Adiki Ayitevie) have waded into the debate, suggesting that it’s been the practice and Newmont is not doing anything illegal. This is indeed a bad practice and an illegal one. Even though Dr. Aubynn indicated his profound respect for rule of law it is clear that such respect cannot be extended to all laws and some aspects of the constitution in the country. He ough
  • Is citizen vigilante still in the country? And can this brouhaha over the legality of Newmont’s Akyem mine be settled in the Supreme Court? May be we should call on one Kwaku Kwarteng (MP for Obuasi) who has recently taken another multinational mining firm (Anglogold Ashanti) to court for usual breaches in the mining sector.
  • Is citizen vigilante still in the country? And can this brouhaha over the legality of Newmont’s Akyem mine be settled in the Supreme Court? May be we should call on one Kwaku Kwarteng (MP for Obuasi) who has recently taken another multinational mining firm (Anglogold Ashanti) to court for usual breaches in the mining sector.
  • Is citizen vigilante still in the country? And can this brouhaha over the legality of Newmont’s Akyem mine be settled in the Supreme Court? May be we should call on one Kwaku Kwarteng (MP for Obuasi) who has recently taken another multinational mining firm (Anglogold Ashanti) to court for usual breaches in the mining sector.
  • Is citizen vigilante still in the country? And can this brouhaha over the legality of Newmont’s Akyem mine be settled in the Supreme Court? May be we should call on one Kwaku Kwarteng (MP for Obuasi) who has recently taken another multinational mining firm (Anglogold Ashanti) to court for usual breaches in the mining sector.
  • Is citizen vigilante still in the country? And can this brouhaha over the legality of Newmont’s Akyem mine be settled in the Supreme Court? May be we should call on one Kwaku Kwarteng (MP for Obuasi) who has recently taken another multinational mining firm (Anglogold Ashanti) to court for usual breaches in the mining sector.
  • Is citizen vigilante still in the country? And can this brouhaha over the legality of Newmont’s Akyem mine be settled in the Supreme Court? May be we should call on one Kwaku Kwarteng (MP for Obuasi) who has recently taken another multinational mining firm (Anglogold Ashanti) to court for usual breaches in the mining sector.
  • Is citizen vigilante still in the country? And can this brouhaha over the legality of Newmont’s Akyem mine be settled in the Supreme Court? May be we should call on one Kwaku Kwarteng (MP for Obuasi) who has recently taken another multinational mining firm (Anglogold Ashanti) to court for usual breaches in the mining sector.
  • Is citizen vigilante still in the country? And can this brouhaha over the legality of Newmont’s Akyem mine be settled in the Supreme Court? May be we should call on one Kwaku Kwarteng (MP for Obuasi) who has recently taken another multinational mining firm (Anglogold Ashanti) to court for usual breaches in the mining sector.
  • Is citizen vigilante still in the country? And can this brouhaha over the legality of Newmont’s Akyem mine be settled in the Supreme Court? May be we should call on one Kwaku Kwarteng (MP for Obuasi) who has recently taken another multinational mining firm (Anglogold Ashanti) to court for usual breaches in the mining sector.
  • Is citizen vigilante still in the country? And can this brouhaha over the legality of Newmont’s Akyem mine be settled in the Supreme Court? May be we should call on one Kwaku Kwarteng (MP for Obuasi) who has recently taken another multinational mining firm (Anglogold Ashanti) to court for usual breaches in the mining sector.
  • Is citizen vigilante still in the country? And can this brouhaha over the legality of Newmont’s Akyem mine be settled in the Supreme Court? May be we should call on one Kwaku Kwarteng (MP for Obuasi) who has recently taken another multinational mining firm (Anglogold Ashanti) to court for usual breaches in the mining sector.
  • Is citizen vigilante still in the country? And can this brouhaha over the legality of Newmont’s Akyem mine be settled in the Supreme Court? May be we should call on one Kwaku Kwarteng (MP for Obuasi) who has recently taken another multinational mining firm (Anglogold Ashanti) to court for usual breaches in the mining sector.
  • Is citizen vigilante still in the country? And can this brouhaha over the legality of Newmont’s Akyem mine be settled in the Supreme Court? May be we should call on one Kwaku Kwarteng (MP for Obuasi) who has recently taken another multinational mining firm (Anglogold Ashanti) to court for usual breaches in the mining sector.
  • Is citizen vigilante still in the country? And can this brouhaha over the legality of Newmont’s Akyem mine be settled in the Supreme Court? May be we should call on one Kwaku Kwarteng (MP for Obuasi) who has recently taken another multinational mining firm (Anglogold Ashanti) to court for usual breaches in the mining sector.
  • Is citizen vigilante still in the country? And can this brouhaha over the legality of Newmont’s Akyem mine be settled in the Supreme Court? May be we should call on one Kwaku Kwarteng (MP for Obuasi) who has recently taken another multinational mining firm (Anglogold Ashanti) to court for usual breaches in the mining sector.
Arabica Robusta

Gecamines Didn't Tell Government of KCC Gertler Deal - Bloomberg - 0 views

  • Gecamines, the Democratic Republic of Congo’s state-owned mining company, didn’t tell the Mines Ministry of a possible sale of its stake in Kamoto Copper Co. to billionaire Dan Gertler, according to a letter from the mines minister.
  • Gecamines has faced criticism from the International Monetary Fund and advocacy groups including London-based Global Witness for selling its assets in a non-transparent process.
  • Gertler, an Israeli who is close friends with Congo’s President Joseph Kabila and has invested in the country for more than 15 years, is worth $3 billion, according to the Bloomberg Billionaire’s Index.
Arabica Robusta

Pambazuka - Somalia's rough road to peace - 0 views

  • Without Barre’s iron fist, the clan-based political rivalries which had been artificially repressed for two decades bloomed and a country swimming in foreign arms and local animosity was plunged into a vicious civil war.
    • Arabica Robusta
       
      Too reductionist and appeals too much to primordialism.
  • Where international peacekeepers and foreign soldiers had cut and run, the UIC, working with the local population, struggled to extract peace and order from chaos.
  • By 2007, a weak Somali transitional government called for international military action to help destroy the Islamic courts. Ethiopian forces – bolstered by the United States’ blessing and with the support of some its arms – entered the fray to destroy an organisation supposedly linked to al-Qaeda. However, this same organisation had won the respect of many Somalis by rescuing parts of the country from chaos and random violence. Although Ethiopia’s military action in Somalia decimated the UIC, it also forever de-legitimised the Transitional Federal Government.
  • ...6 more annotations...
  • The foremost ethnographer of Somalia, I.M. Lewis, penned a letter in 2007 criticising the European Union’s ‘astonishing, and imperialistic behavior … in completely ignoring Somali public opinion and its overwhelming rejection of [the TFG]’.[6]
  • A recent International Crisis Group (ICG) report on al-Shabaab describes the Ethiopian invasion as the event that turned the loosely organised Islamic courts coalition into a much more centralised and extremist organisation.[8]
  • the Kampala bombings must be seen as what they are, a baiting of the bear. By bringing the Somalian fight to the international community so crudely, al-Shabaab is counting on an aggressive international response. More civilian deaths at the hands of AMISOM soldiers will close off the renewed possibilities for moderate leadership to seize the reins from al-Shabaab and discredit the transitional government. Similarly, the rampant anti-Islamic rhetoric of the US war on terror will alienate the moderate elements of Somalia’s Islamist movements. Once bombs begin falling in earnest and fighting intensifies, the Somalian struggle will once again align with the script that poses national patriots against foreign aggressors, and the al-Shabaab will have already won the ideological struggle for the Somali people’s support.
  • The United States and the African Union must leave off nation-building in Somalia. Effective solutions to the Somalian civil war will not be cooked up in Kampala, Washington DC or Addis Ababa. One of the key lessons of Somaliland’s experience is that effective government must come from within. In the words of the former Somaliland president Dahir Rayale Kahin, ‘you can’t be donated power… We built this state because we saw the problems here as our problems. Our brothers in the South are still waiting—till now—for others.’[9]
  • Most importantly, Somaliland has secured a treasured peace on its own terms and by its own efforts. In the past 20 years Somaliland’s struggle has been for world recognition. Yet, ironically, it is precisely the country’s isolation from the international community that has allowed it to develop home-grown peace and stability. Without the dubious direction of international experts and unable to rely on international economic assistance, Somaliland has reconstructed itself with self-reliance, accountability and local investment as its touchstones.
    • Arabica Robusta
       
      Persuasive argument.  Somaliland developed because of, not in spite of, isolation from "international experts" and "international economic assistance."  A useful project would compare Somaliland, Eritrea, Niger and Mali.  All have in important ways separated themselves from the international development mainstream.
  • [9] Jeffry Gettleman, ‘Somaliland is an overlooked African success story,’ The New York Time, March 6, 2007
  •  
    Following the al-Shabaab bombing in Kampala, current plans to send more AMISOM (African Union Mission in Somalia) troops into Somalia will simply jeopardise the possibility of a new moderate leadership emerging in the country, writes Abena Ampofoa Asare. 
Arabica Robusta

Pambazuka News - 0 views

  • Corruption DRC: Mining multi-nationals get deal of the century 2008-07-18 http://www.pambazuka.org/en/category/corruption/49569 Printer friendly version There is potentially enormous mineral wealth in the DRC province of Katanga. In exchange, investors from all over the world, and especially China, are prepared to offer money and infrastructure to revive the DRC after 15 terrible years of war and invasion. The potential for ecological disaster, social exploitation and corruption is almost limitless. Le Monde diplomatique ----------------------------------------------------- July 2008 MINING MULTINATIONALS GET DEALS OF THE CENTURY Copper colony in Congo There is potentially enormous mineral wealth in the DRC province of Katanga. In exchange, investors from all over the world, and especially China, are prepared to offer money and infrastructure to revive the DRC after 15 terrible years of war and invasion. The potential for ecological disaster, social exploitation and corruption is almost limitless. by Colette Braeckman Lubumbashi is the capital of Katanga, the southernmost state of the Democratic Republic of Congo (DRC). Day and night, huge trucks roar through its streets, making for the nearby Zambian border with cargoes of copper and cobalt on their way, via the Tanzanian port of Dar es Salaam, to Asia. Every month new stores open: fast food joints with American names, and shops where the locals stare in wonder at Chinese consumer goods, finally within their reach.
  • Lubumbashi is the capital of Katanga, the southernmost state of the Democratic Republic of Congo (DRC). Day and night, huge trucks roar through its streets, making for the nearby Zambian border with cargoes of copper and cobalt on their way, via the Tanzanian port of Dar es Salaam, to Asia. Every month new stores open: fast food joints with American names, and shops where the locals stare in wonder at Chinese consumer goods, finally within their reach.
  • And there is a third, social threat. The small-scale exploitation of mineral deposits is coming to an end as the big multinationals move in, driving out independent miners. Until a few months ago the Étoile mine at Ruashi, a few kilometres outside Lubumbashi, was just an open pit where men worked unprotected. Children scurried through unsupported tunnels, pulling out rocks striated with green copper or yellow cobalt and cramming them into jute sacks. Cave-ins and fatalities were so frequent that the miners had their own mutual insurance scheme to cover hospital or funeral expenses.
  • ...2 more annotations...
  • The terms granted to private companies associated with Gécamines took the commissioners aback. The investment of external partners was systematically overvalued and that of the Congolese (the value of mineral deposits and existing Gécamines infrastructure) underestimated. Fiscal and para-fiscal concessions (such as 30-year tax exemptions) deprived the state of essential revenues. Mining rights were acquired for purely speculative ends (the partners sold the shares on the stock exchange before even starting work on the ground), while social and environmental clauses were ignored, local skills undervalued, local workers underpaid and concession boundaries extended without authorisation.
  • Unlike western governments, incapable of releasing the credits necessary for the reconstruction of a country four times the size of France, China has been quick to get down to work: several projects have already begun in Katanga, Kivu and Kinshasa, where 250km of roads and 1,000 units of social housing are to be built. The people's hopes are undermined by fears that the arrival of Chinese workers and engineers heralds a new wave of colonisation. The unconcealed displeasure of the West, Belgium especially, could endanger the stability of the government. But the Congolese government is determined to pursue its relationship with China.
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