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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

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 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.
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  • 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.
Arabica Robusta

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

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

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

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

Pambazuka News - 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:
  •  
    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

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 - Development aid: Enemy of emancipation? - 0 views

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

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

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

British banks complicit in Nigerian corruption, court documents reveal | Global Witness - 0 views

  • British high street banks have accepted millions of pounds in deposits from corrupt Nigerian politicians, raising serious questions about their commitment to tackling financial crime, warned Global Witness in a report published today. By taking money from corrupt Nigerian governors between 1999 and 2005, Barclays, NatWest, RBS, HSBC and UBS helped to fuel corruption and entrench poverty in Nigeria.
  • What is so extraordinary about this story is that nearly all of these of these banks had previously fallen foul of the UK banking regulator, the Financial Services Authority (FSA), in 2001 by reportedly helping the former Nigerian dictator Sani Abacha funnel nearly a billion pounds through the UK. These banks were supposed to have tightened up their systems but as this report now shows, a few years later, they were accepting corrupt Nigerian money again.
  • "Banks are quick to penalise ordinary customers for minor infractions but seem to be less concerned about dirty money passing through their accounts,"
Arabica Robusta

Pambazuka - Cameroon: Propping up a dictator - 0 views

  • different kind of change is required in Cameroon, which must come on the heels of a well contrived and executed policy of education designed to transform the populace from tribal subjects to national citizens.
  • But Mrs. Clinton’s statement conveniently left out Equatorial Guinea, Gabon, Nigeria, Ethiopia, Uganda, among others. In these states the US government and American multinationals continue to cooperate with regimes that are obscenely corrupt and/or repressive for “constructive reasons.”
  • Senegal appears to have led the trend, with President Abdoulaye Wade establishing relations with the Libyan rebels in mid-May. Last week, Wade met with rebel leaders in Benghazi and said that Qadhafi should step down. Gambia also recognizes the rebels. Wade’s call for a transition was seconded last week by Mauritania’s Abdel Aziz, who said that Qadhafi’s “departure has become necessary...’
Arabica Robusta

The Tribes Have Spoken | The Con - 0 views

  • this is not limited to the public sector. In the private sector, tribalism promotes the creation of self-sustaining and mutually supportive bubbles based on ethnicity. During the hiring process, tribalist bosses will preference people from their own social grouping for top jobs. In workplace disputes, they will not be impartial but will often favour their tribal comrade. During business deals, especially within corporates and multinationals, ethnic affiliation becomes a big factor in building trust between two parties and often in concluding mutually beneficial deals.
  • It’s shocking that in this day and age – in the so-called “new” South Africa – there are few public figures willing to call the actions and voting patterns of Afrikaans- and English-speaking white South Africans for what they are: narrow-minded tribalism.
  • The real tribalists (and racists) who Mbeki failed to mention are white South Africans, who effectively come together to vote as a bloc for only two political parties: the white-led Democratic Alliance and the smaller white nationalist Freedom Front Plus.
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