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Arabica Robusta

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

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

As Global Wealth Spreads, the IMF Recedes - 0 views

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

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.
  • 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.
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  • 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
  • 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

Ghana Oil Bill May Improve Credit Rating, Spur Loans, IMF Says - Businessweek - 0 views

  • The law, passed on March 2, allows oil revenue to be used as collateral for loans in a “credit enhancement” program, said Wayne Mitchell, resident representative for the fund, based in Accra, the capital. The risk of default is reduced, which will lower interest rates, he said.
    • Arabica Robusta
       
      This is a truly questionable development strategy, likely to land Ghana in a speculative debt.
  • A provision to keep 21 percent of the revenue in a stabilization fund for the country to fall on in times of price volatility and a heritage fund with 9 percent of earnings saved for the future is “best practice,” Mitchell said in an earlier interview on March 2.
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    The law, passed on March 2, allows oil revenue to be used as collateral for loans in a "credit enhancement" program, said Wayne Mitchell, resident representative for the fund, based in Accra, the capital. The risk of default is reduced, which will lower interest rates, he said.
Arabica Robusta

Pambazuka - Evaluating the dual citizenship-state-building-nation-building nexus in Lib... - 0 views

  • Liberia Rising 2030, a national vision whose aim is to make Liberia a middle-income country by the year 2030. This vision, projected to replace the Lift Liberia Poverty Reduction Strategy, has as its core macro-economic policy reforms, as well as lofty goals aimed at strengthening social cohesion, democratic consolidation, and governance reform.
  • One of the problems with state-building as a post-conflict reconstruction agenda is its myopic focus on building state institutions, with the core assumption that no positive institutional practices existed before the ‘post-conflict moment’—a fallacy of terra nullius as articulated by Cliffe and Manning (Cliffe and Manning, 2008: 165).
  • In this analysis, the post-conflict state represents a ‘blank slate,’ a tabula rasa to be foisted upon by donors who function as social engineers, in which policy makers conflate the ‘state idea’ (our imaginations of what the state should be) with the ‘empirical state’ (how the state actually functions in practice) (Abrams, 1988).
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  • State-building and nation-building in Liberia cannot be fully operationalized without an interrogation of the meaning of citizenship, given that the nation-state of Liberia is fundamentally de-territorialized, with a sizeable number of Liberians scattered throughout the globe, yet still fully engaged as transnational beings. My article scrutinizes the markers of citizenship, narrowly defined in Liberia’s current Aliens and Nationality Law.
  • Of course, Liberia’s history predates black settlement, with Liberian academics like Dr. Carl Patrick Burrowes challenging secondary sources that paint the country as a nation muddled in dichotomies without references to primary sources about indigenous life (Burrowes, 1989: 59).
  • Liberia was ruled from 1847-1980 by the True Whig Party (TWP), an oligarchy of descendants of black settlers. During this time, the country flourished as an outpost for black migration, with migrants from other parts of Africa and the Caribbean flocking to the ‘land of liberty.’
  • President Doe generated a hefty aid package of US$500 million between 1980 and 1988 from the U.S. government in exchange for Cold War loyalties (Huband, 1998: 35). Liberian exiles in the United States, led by former Interim Government of National Unity (IGNU) President Amos Sawyer and current Liberian President Ellen Johnson Sirleaf, lobbied against Doe’s authoritarian rule through the Association of Constitutional Democracy (ACDL), but their cries for regime change fell on deaf ears (Huband, 1998: 47).
  • From 2003-2005, an interim government was established to pave the way for elections in 2005 in which Africa’s first female president, Ellen Johnson Sirleaf, was elected. It is worth noting that the leading three presidential candidates—Johnson Sirleaf, George Weah, Charles Brumskine—were all once diasporic Liberians (Liberian National Elections Commission, 2005).
  • It is rumored that many high-level political appointees hold foreign passports, though Liberia’s Aliens and Nationality Law is very clear about the automatic revocation of citizenship status upon naturalization elsewhere (Sieh, 2012).
  • The fact that President Ellen Johnson Sirleaf has been the only African head of state to publicly welcome AFRICOM is indicative of her transnational loyalties to the United States that some argue was born out of her experiences in the high-powered walls of institutions such as the World Bank and the United Nations.
  • Despite public relations campaigns and the forecasts of transformation, most of Johnson-Sirleaf’s first-term development milestones have been mired by challenges and critiques, one of which is the overemphasis on state-building at the expense of nation-building.
  • African governments have increasingly factored diasporas into domestic development projects, state-building, and nation-building exercises. This explicit acknowledgment of diasporas as transnational communities has manifested in legal instruments such as dual citizenship. Within the last decade alone, over one third of African countries have expanded constitutional reforms to grant dual citizenship to their diasporas, including, but not limited to: Angola, Botswana, Burundi, Ghana, Kenya, Nigeria, Rwanda, Sao Tome and Principe, Senegal, Sierra Leone, South Africa and Uganda. Liberia introduced its own dual citizenship legislation in 2008.
  • Although Liberia did not experience European colonialism, it can be proven empirically that black settler colonialism mirrored the direct rule policies of the French or the Boers. That indigenous males and female Liberians were not granted citizenship until the mid-20th century illustrates how citizenship within Liberia has always been a tool of exclusion and privilege rather than an automatic entitlement.
  • Denying a person citizenship because his/her father did not reside in Liberia prior to their birth discriminates against children whose fathers fled Liberia during the civil war, a major point of contention for Liberians abroad who advocate for dual citizenship.
  • Rapid international migration and mobility, coupled with globalization, have ruptured state-centric conceptions of citizenship, identity, and belonging (Sassen, 2005; Jacobson, 1996), with legal scholars now asserting that dual citizenship (or multiple citizenships) are becoming the rule rather than the exception in the 21st century (Spiro, 1997; Rubenstein & Adler, 2000). Therefore, an interrogation of Liberia’s proposed dual citizenship legislation and the renewal of debates about diasporic involvement in post-conflict state-building and nation-building cannot be meaningful without an analytical review of how the concept of citizenship has evolved in the modern world over time.
  • Using case studies from Senegal, Ghana, and Kenya, Whitaker argues that increased claims for dual citizenship in Africa may be driven as much by self-serving political interests as it is by concerns about national reconstruction, economic development, or security, especially with the advent of multi-party competition, the involvement of emigrants in homeland politics, and the need for African politicians to establish constituencies abroad for support and funding (Whitaker, 2011: 756).
  • There is no empirical basis for claiming that dual citizenship necessarily enforces homeland-emigrant ties, rather dual citizenship simply enables “external populations to secure citizenship in their places of external residence without relinquishing the material and sentimental advantages of retained original citizenship” (Spiro, 2012: 319).
  • Scholars who examine post-conflict reconstruction projects place a high premium on state-building, but less of an emphasis on its distant analytical twin, nation-building. A number of features defining state-building and nation-building position the two in binary trajectories. While nation-building is ‘people centric’ and domestically driven, requiring national agency, ownership and resources, state-building is ‘institution centric’ and externally driven, often soliciting international resources and involving some form of social engineering through a ‘one-size-fits’ all approach. Although both state-building and nation-building have their advantages and disadvantages, the two processes cannot be transformational if they are pursued in isolation. The Liberia case study has shown that policy makers must consider state-building and nation-building as mutually constitutive.
  • ive major contributions supporting the need to strengthen state institutions and governance structures in war to peace transitions were proffered in 2004 by authors such as Francis Fukuyama, Simon Chesterman, James Fearon and David Laitin, Stephen Krasner, and Roland Paris, which transformed state-building into a growing topic of concern in peace-building scholarship (Paris and Sisk, 2010: 7-10).
  • Legislation introduced in Liberia and other emerging countries in the Global South to extend citizenship to nationals abroad is a trend that has far reaching implications beyond the modern nation-state. Given that citizenship has been a site of contestation in Liberia because of its multiple meanings and contemporary manifestations, it is important to critically analyze how the enactment of dual citizenship legislation might reconcile or exacerbate age-old fissures within Liberia’s national fabric, further replacing the indigene vs. settler divide with the homeland Liberian vs. diasporic Liberian divide. Coupling state-building and nation-building as mutually constitutive elements in an an
Arabica Robusta

Terraviva EUROPE - 0 views

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    ''Africa is not a basket case. The continent is just suffering from the effects of events that it has no hand in and cannot control.'' These are the remarks of Ekplom Afeke, a Togolese activist who is attending the 12th meeting of the United Nations Conference on Trade and Development (UNCTAD) currently underway in Accra, Ghana. Afeke says the continent has been deprived of trade and investment over decades. If that has not been bad enough, the effects of poor environmental management outside the continent are today compounding Africa's crisis of poverty.
Arabica Robusta

Pambazuka News : Issue 714 (Revolution and Pan-Africanism) - 0 views

  • A cursory study of Malcolm’s life quickly illustrates the reasons behind his popularity and the desire of so many to move him into their political camps. Malcolm’s well-documented journey from street hustler to world renowned spokesperson and organiser for African liberation reflects the hard work and determination that many of us can only dream about. His fearlessness in articulating the problems of white supremacy and capitalism and his unique ability to take difficult political and economic concepts and break them down for common consumption and understanding were skills that motivated millions since Malcolm first joined the Nation in the 1950s.
  • Malcolm’s final speeches are filled with invectives for Africans in the US to stop expecting freedom in the US, while Africa was subjugated because Africa’s freedom was dependent upon releasing the very same forces that keep Africans in the US oppressed. Malcolm characterised this reality with his statements that Africa “is at the centre of our liberation” and that socialism is “the system all people in the world seem to be coming around to”.
  • The writing on the wall had been provided to Malcolm by his meeting Pan-Africanists like Kwame Nkrumah and Sekou Toure. For anyone who doubts the impact these meetings had on Malcolm’s thinking all one has to do is read his own words in his autobiography. Malcolm described his meetings with Nkrumah as “the highlight of my travels” and “the highest honour of my life”. These words are true despite those meetings being ignored in Spike Lee’s 1992 biopic film and in pretty much everything else portrayed about Malcolm’s life.
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  • Nkrumah’s book of letters The Conakry Years, which consisted of all of Nkrumah’s personal letters written and received while he was in Guinea after the Central Intelligence Agency’s sponsored coup that overthrew his government on February 24, 1966 (almost a year to the day after Malcolm was assassinated) contains letters Nkrumah wrote to Malcolm and to others about Malcolm, detailing Nkrumah’s efforts to persuade Malcolm to stay in Ghana and become a part of Nkrumah’s staff to work on their Pan-Africanist objective.
  • Nkrumah’s letters mention that he confided in Malcolm that Ghanaian intelligence forces had revealed that Malcolm would be killed within months if he returned to the US but according to Nkrumah, that revelation seemed to spark Malcolm’s desire to return to the fire-hot situation against him in the US. Still, Malcolm collaborated in his recently published diary his intense desire to become a part of this network of Pan-Africanists in West Africa.
  • It’s also worth noting that three short years later another African revolutionary from the US ended up accepting Nkrumah’s offer to move to Guinea-Conakry and become his political secretary. Kwame Ture – then known as Stokely Carmichael – left the Student Non-Violent Coordinating Committee and the Black Panther Party and agreed to accept the task of building the All-African People’s Revolutionary Party (A-APRP).
  • There’s little question that people within the Nation had some involvement. The antagonism between Malcolm and the hierarchy of the Nation of Islam at the time, including National Secretary John Ali, Elijah Muhammad Jr. (son of Nation of Islam leader Elijah Muhammad), Minister James Shabazz from New Jersey, Clarence X Gill the Fruit of Islam Captain from New Jersey and others, is well documented.
  • There’s no refuting that Malcolm was diagnosed as being poisoned in Egypt and his recollection of the experience in his diary will make your own stomach tighten up. There’s also no doubt that the French Government, which had no policy of rejecting entry to persons, refused Malcolm entry into their country shortly before his murder while the rumours swirled that their decision was based on their desire to not permit Malcolm to be killed on French soil.
  • We are completely aware that it is the job of our enemies to confuse people about whom we are and who our leaders are, so the Malcolm X postage stamp and every other way the capitalism system makes a concession to recognising the revolutionary Malcolm is only happening because they want to frame his image before we do.
  • It won’t work. Sekou Toure was correct when he said “truth crushed to Earth shall rise a thousand times”. Malcolm was a Pan-Africanist, that’s why there are as many, if not more, tributes to him outside of the US as there are inside. The people of Ghana expressed their understanding of this phenomenon in 1964 when they named him Omawale – "the son who has returned home".
Arabica Robusta

Sub-Saharan Africa in Global Capitalism by John J. Saul | Monthly Review - 0 views

  • There are two ways of picturing Africa in the context of global capitalism. One is from the point of view of the people living and hoping to improve their lot in sub-Saharan Africa’s forty-eight nation-states with a considerable variety of kinds of “insertion” into the global capitalist economy, and a corresponding range of experiences of development (or the lack of it).6 The other is from the point of view of capital, for which Africa is not so much a system of states, still less a continent of people in need of a better life, as simply a geographic—or geological—terrain, offering this or that opportunity to make money.
  • Growing pressure of population means a constantly expanding landless labor force, partly working for subsistence wages on other people’s land, partly unemployed or underemployed in the cities, sometimes migrating to neighboring countries (e.g., from Burkina Faso to Cote d’Ivoire), living on marginal incomes and with minimal state services, including education and health.
  • The “investment climate” has been made easier, thanks, as we will see, to a decade and a half of aid “conditionality,” and the returns can be spectacular; the rates of return on U.S. direct investments in Africa are, for example, the highest of any region in the world (25.3 percent in 1997).9
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  • Fatefully for Africa, this debt came due, in the 1980s, just as the premises of the dominant players in the development game were changing. The western Keynesian consensus that had sanctioned the agricultural levies, the industrialization dream, the social services sensibility, and the activist state of the immediate post-independence decades—and lent money to support all this—was replaced by “neoliberalism.”
  • States in Africa felt compelled to comply: they were debtors, after all, and, with the decline of the Eastern bloc, were also fast losing whatever limited leverage this alternative source of support had given them.
  • “What has emerged in Accra,” Eboe Hutchful once wrote of the Ghanaian SAP experience, “is a parallel government controlled (if not created) by the international lender agencies…[while] the other side of the external appropriation of policy-making powers is the deliberate de-politicalization that has occurred under the ERP [Economic Reconstruction Programme], and the displacement of popular participation and mobilization by a narrowly-based bureaucratic management.”15
  • For political support, the new leaders had to rely not on urban working classes or middle classes, which mostly barely existed, but on rural notables, whose allegiance they secured through chains of patronage stretching from the ministers’ offices to the villages.
  • There was, of course, another trajectory to African politics—some states which professed to bend the logic of global capitalism in favor of more progressive outcomes: Ghana, Tanzania, and Mozambique, among others.
  • Mozambique and Angola: far too many instances of overweening industrial plans and of forced villagization in the countryside, far too little democratic sensibility towards the complex values and demands of their presumed popular constituencies. Future attempts to develop counter-hegemonic projects in Africa will have to learn lessons from such experiences and also determine how to disentangle, for purposes of popular mobilization, the discredited notion of socialism from this troubled past.
  • Thus Jonathan Barker speaks of the existence, in Africa and beyond, of “thousands of activist groups addressing the issues of conserving jobs and livelihoods, community health, power of women, provision of housing, functioning of local markets, availability of local social services, provision and standard of education, and abusive and damaging working conditions.”35
  • “African peoples have adopted many diverse strategies to challenge, deflect, or avoid bearing the costs of austerity involved and to seek a political alternative to the politicians they hold responsible.”They also document an impressive range of (primarily urban) actors—“lawyers, students, copper miners, organizations of rural women, urban workers and the unemployed, journalists, clergymen and others”—whose direct action in recent years has shaken numerous African governments.36
  • Such resistances—what Célestin Monga refers to as the “collective insubordination” of Africa37—have been one factor driving the renewed saliency of democratic demands on the continent.
  • in Zimbabwe in recent years arguing (alongside other popular organizations) for the formation of a new party to challenge the rancid Mugabe regime from the left: as Patrick Bond writes of this initiative, “What is crucial is that the opposition’s political orientation is potentially both post-nationalist and post-neoliberal, perhaps for the first time in African history.”39
Arabica Robusta

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

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

Pambazuka - What does President Obama "know" about Ethiopia's "election"? - 0 views

  • In the foregoing few words, Hailemariam Desalegn actually revealed his (I mean the TPLF’s) entire three-pronged strategy on how they plan to organize the theft of the 2015 election and repeat the 2010 crushing victory: 1) use state media and all other resources to hoodwink the people of Ethiopia that the 2015 election process will be democratic, free, fair and credible; 2) implement “our institutional process and our laws and regulations [that] are perfect” by 3) imposing on all political parties “the code of conduct” that his party has “put in place”. The TPLF's three-pronged strategy is actually the perfect game plan for the perfectly rigged election. The late Meles Zenawi wrote the perfect election rigging rulebook and “implemented” it in 2010. As a result, his party won the perfect election with 99.6 percent of the parliamentary seats.
  • Prof. Hagmann’s observations also point to the total absurdity and futility of any “elections” in Ethiopia in light of the dogmatic belief of the leaders of the TPLF (and its handmaiden the “EPDRF”) in their birthright to rule: This is visible in the way EPDRF sees itself – namely as a vanguard party that has earned the right to lead the state, to determine what development is and how democracy is to be organized. Therefore, whoever is against the EPDRF is ‘anti-development’ or ‘anti-peace’ and whoever opposes its policies is anti-state.
  • It is a known known to me that President Obama gave his implicit blessings in 2010 when the TPLF regime declared victory by 99.6 percent. He turned a blind eye and deaf ears. (Not so when he lectured Robert Mugabe for winning the presidential "election" in Zimbabwe in 2013 by 61 percent: “Zimbabweans have a new constitution. The economy is beginning to recover. So there is an opportunity to move forward but only if there is an election that is free and fair and peaceful so that Zimbabweans can determine their future without fear of intimidation and retribution.”) An election that was won by 61 percent is not "free and fair" and deserves public condemnation but an election won by 99.6 percent is free and fair and deserves private accolades?!
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  • Meles Zenawi ripped the final EU EOM election report as “trash that deserves to be thrown in the garbage”. He said, “The report is not about our election. It is just the view of some Western neo-liberals who are unhappy about the strength of the ruling party. Anybody who has paper and ink can scribble whatever they want.” Of course, Meles was legendary for his mastery and exquisite delivery of gutter language in political discourse. He could out-tongue-lash, out-mudsling, out-bully, out-vilify and out-smear any politician on the African continent. Meles also called the 2005 EU EOM Report a “pack of lies and innuendoes”.
  • Since he believes civil society is the core of a democratic process, President Obama should use his leverage to ensure civil society institutions function freely in Ethiopia before the 2015 "election". What is President Obama’s leverage? Aid money. The hard earned tax dollars of the American people. American tax dollars given to African dictators in the name of helping Africans but end up in African dictators’ offshore accounts. Aid money talks and is heard loud and clear by the tone deaf TPLF bosses. As Dambissa Moyo documented in her book Dead Aid, the TPLF regime got a whopping 97 percent of its budget from foreign aid. Simply stated, the TPLF regime will not survive a single day without aid transfusion from the pockets of hardworking America taxpayers into its blood stream. President Obama needs to wag the annual welfare aid check in the faces of the salivating TPLF panhandlers and tell them what he told Africans in Accra Ghana in 2009:
Arabica Robusta

Pambazuka News : Issue 651 - 0 views

  • Dynamic African leaders such as Ft. Lt. Jerry John Rawlings of Ghana, Yoweri Musevini of Uganda, Paul Kagame of Rwanda, Meles Zenawi of Ethiopia, Isaias Aferworki of Eritrea and several others, followed in the footsteps of Africa’s founding fathers, and sought to reverse the decline of the continent and build progressive nations in which people’s rights are respected, in which different ethnic groups lived together in peace and harmony and a world in which Africans were respected on equal terms with others. ‘Developmentalism’ became the new ideology of the day. Future generations will judge them but for now, let us celebrate their good intentions.
    • Arabica Robusta
       
      This is a questionable group of leaders. Are they not more the bane, and not the boon, of the continent?
  • It should be noted that Burkina Faso and its capital Ouagadougou is one of the most historic places in West Africa. It was the scene to intellectual and cultural renaissance before colonialism desecrated this land.
Arabica Robusta

Pambazuka News - 0 views

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

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

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