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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?
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JOBS FUND APPLICATION PROCESS - Phuzemthonjeni - 0 views

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    JOBS FUND APPLICATION PROCESS
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Pambazuka News - Ghana: Why the North Matters - 0 views

  • With the introduction of structural adjustment, projects and activities depending on the government were scaled down. While the idea of privatisation could somehow work in the South, as there was an elite and foreign companies to take over these activities, such conditions did not apply in the North. The factories ground one by one to a halt. Commercial farms went into receivership. Employment and income collapsed. The market players, who were to exploit the opportunities afforded by the withdrawal of the government, simply were not ready for it. Whatever economic elite had started to develop either sank back into obscurity or joined their brethren in the south.
  • National policies, ostensibly designed so as not to favour specific parts of the country, end up disadvantaging the North. The Ghana School Feeding Programme (GSFP) was originally conceived as a programme focusing on ‘Hunger Hotspots’, and was therefore targeted at the North. For obvious political reasons, the government decided instead to make it a national policy benefiting all districts equally. But with programme management using its discretionary powers, individual districts were able to lobby for additional schools. Inevitably, such districts were politically well connected and close to the physical and political centre. With as end result that Greater Accra, Ashanti and Brong Ahafo Regions receive a whopping 70 % of the total funding for school feeding (leaving the other 7 Regions to fight over the remaining 30 % of the funds). The three northern Regions, home to 30 % of the total poor in Ghana, receive a paltry 7 % of the funding!
  • The distribution of HIPC funding tells a similar story. The Highly Indebted Poor Country (HIPC) initiative was an attempt by the World Bank and IMF to reduce the debt burden of the world poorest countries. One of the first major policy initiatives of the new NPP government when it attained power in 2001 was to apply for HIPC status. A special account was opened, whereby the money which otherwise would have been used for debt re-payment would be channelled to special spending targeted at the poor. But once again the reality was different. While the Ghana Poverty Reduction Strategy 2003-2005 planned that almost half of the HIPC funds would be used in northern Ghana, in reality this was only 17 %, just about one third of what was planned! The remaining 83 % of the projects went to southern Ghana, for which only 52 % had been planned.
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  • It cannot be denied that northern Ghana has recorded considerable progress since independence.
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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.
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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.
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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.
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Displacement, intimidation and abuse: land loyalties in Ethiopia | openDemocracy - 0 views

  • With the coming of industrial-size farms in Ethiopia, local people, villagers and pastoralists (deemed irrelevant to the Government’s economically-driven development plans) are being threatened, and intimidated by the military; forcibly displaced and herded into camps, their homes destroyed. Along with vast agricultural complexes, dams are planned and constructed, water supplies re-directed to irrigate crops, forests burnt, natural habitats destroyed. Dissenting voices are brutally silenced – men beaten, children frightened, women raped, so too the land.
  • Three quarters of all land deals take place in sub-Saharan Africa, in some of the most food-insecure, economically vulnerable, politically repressive countries in the world; precisely, some say, because of such advantageous commercial factors.
  • In Ethiopia, land sales are occurring in six key areas. Oromia and Gambella in the south, Amhara, Beneshangul, Gumuz, the Sidaama zone, or SNNP and the Lower Omo Valley – an area of outstanding natural beauty with acclaimed UNESCO World heritage status. The Ethiopian government’s conduct in Omo and Oromia, Genocide Watch (GW) considers “to have already reached stage 7 [of 8], genocidal massacres”.
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  • Conditional within land lease agreements is the requirement that the government will clear the area of “encumbrances”, meaning indigenous people – families, children and pastoralists, as well as cattle, wildlife, forests, anything in fact that will interfere with the levelling of the land, building of [foreign] workers’ accommodation, roads and the eventual sowing of crops.
  • Along with pastoralists, who number around 300,000 in Gambella alone, villagers are herded, sometimes literally, always metaphorically, at the end of a rifle, into Villagisation camps. Despite Government promises to “provide basic resources and infrastructure, the new villages”, HRW found “have inadequate food, agricultural support, and health and education facilities”.
  • The government proclaims land sales are part of a strategic, long-term approach to agricultural reforms and economic development, that foreign investment will fund infrastructure projects, create employment opportunities, help to eradicate hunger and poverty and benefit the community, local and national. The term “development” is itself an interesting one: distorted, linked and commonly limited almost exclusively to economic targets, meaning growth of GDP, established principally by the World Bank, whose policies and practices in relation to land sales, the OI discovered, “have glossed over critical issues such as human rights, food security and human dignity for local populations”, and its philanthropic sister, the International Monetary fund. Meanwhile market fundamentalism drives the exported (one size fits all) policies, of both ideologically entrenched organisations, that promote models of development seeking to fulfill corporate interests first, last and at every stage in between.
  • Protagonists laying claim to the all-inclusive healing powers of agriculture and agro-industrial projects, contradict, the OI states, “the basic facts and evidence showing growing impoverishment experienced on the ground”. What about the bumper benefits promised, particularly the numerous employment opportunities? It turns out industrialised farming is highly mechanised and offers few jobs; overseas companies are not concerned with providing employment for local people and care little for their well-being, making good bed mates for the ruling party. They bring the workers they need, and are allowed to do so by the Ethiopian government, which places no constraints on their operations.
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Gecamines Didn't Tell Government of KCC Gertler Deal - Bloomberg - 0 views

  • Gecamines, the Democratic Republic of Congo’s state-owned mining company, didn’t tell the Mines Ministry of a possible sale of its stake in Kamoto Copper Co. to billionaire Dan Gertler, according to a letter from the mines minister.
  • Gecamines has faced criticism from the International Monetary Fund and advocacy groups including London-based Global Witness for selling its assets in a non-transparent process.
  • Gertler, an Israeli who is close friends with Congo’s President Joseph Kabila and has invested in the country for more than 15 years, is worth $3 billion, according to the Bloomberg Billionaire’s Index.
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Pambazuka News - 0 views

  • ZIMBABWE AND THE QUESTION OF IMPERIALISM First, there should be an attempt to clear the landscape of certain obstacles. Zimbabwe was in growing trouble before the sanctions imposed by the governments of Britain and the United States. Still, the attempt to bully a small country’s ruler who was in turn bullying his compatriots draped Robert Mugabe in the role of a hero against imperialism. The attempt encouraged a blundering ruler to stay on course. The ZANU-PF forces and sympathizers have blamed the disastrous economic situation on the sanctions. Yet, the political leaders have accumulated wealth in such a conspicuous manner that their consumption of luxury goods stands out in a country where more than 80 per cent of the eligible workers are unemployed. Millions more Zimbabweans have been rendered as economic refugees in Africa and beyond.
  • Zimbabwe‘s situation has some striking parallels with that of the recent history of Guyana in the Caribbean, where rivalry between anti-colonial forces started long before independence and was only draped in flags at the moment of Uhuru, without serious attempts at a deep resolution of the difficulties. Once in power the Burnham regime did nothing to resolve the ethnic conflict but superimposed on it a parliamentary dictatorship.
  • Of late the western media and certain forces within the United Nations have been reporting the possibility of talks of power sharing, and the arrangement of some form of a transitional authority. While the spirit of these discussions may be guided by the search for social peace, it is urgent that these discussions between the various elements are not carried out behind the backs of the people and do nothing to undermine the political will of the people. But above all there must be an engagement by all to ensure that the elections and its aftermath does not deteriorate into the kind of violence and destruction that was witnessed in Kenya after the elections of December 27, 2007. At all costs, war must be avoided. The present leadership cannot expect to be supported when it terrorizes its own people and unleashes the very same Rhodesian military apparatus (the Joint Operation Command) against the opposition and unarmed civilians.
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  • In 1987 the fusion of ZANU with the Patriotic Front led by Joshua Nkomo was done in such a way that the post-colonial world knew little about it, except that it led to the virtual silencing of the section of the liberation front that had been led by Joshua Nkomo.
  • President Robert Mugabe has been a heroic figure in the continent of Africa, the Diaspora, among African observers and well-wishers. And he would have remained so, if the Pan African world had assisted Zimbabweans with friendly criticism of the government when the flaws began to show. Instead, the whole movement and the international left, including us, remained silent, some longer than others, hoping that such a well-resourced government would correct its own shortcomings. Earlier we had special cause to be partisan to Robert Mugabe, who had extended solidarity to our colleague Walter Rodney when he was being persecuted by the Guyana government.
  • We want to go on record in saying that neither the government of Britain nor the government of the United States has the moral authority to oppose the present government of Zimbabwe. Imperialists and neo- conservatives have their own agenda when imposing sanctions and we are against sanctions in Zimbabwe. Progressive Pan Africanists must remain vigilant so that brutal oppression of the Zimbabwean peoples is not countenanced in the name of anti-imperialism.
  • Robert Mugabe and the ZANU-PF may be against imperialism but this group is not against capitalism or the looting of the assets of the society.
  • Those who support the working peoples of Zimbabwe must insist on transparency in dealing with transnational corporations and the integrity of the ruling personnel in their day-to-day activities. This call for accountability is especially important in so far as though we are opposed to the threat of war coming from ZANU PF we are not encouraged by the policies and posture of the leadership of the MDC. These elements have displayed an amazing level of intellectual subservience to the West and to the ideas of the International Monetary Fund and the World Bank. Zimbabwe needs leaders who place the interest of the working people first. It is proper that all progressives support the Stolen Assets Recovery Initiative of the United Nations so that corrupt leaders cannot stash away Funds when the people suffer.
  • Experiences in Guyana, in Kenya and in Zimbabwe have taught us that it is a mistake to adopt western standards of victory as our own. Victory for us must mean reconciliation of divided populations. This in each case may best be approached through widespread national conversation spelling out its purpose. Reconciliation will fail utterly if it is imposed; or allows free rein to corruption, militarism or if it ignores the choices of the people in valid elections.
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    Victory for us must mean reconciliation of divided populations. Reconciliation will fail utterly if it is imposed; or allows free rein to corruption, militarism or if it ignores the choices of the people in valid elections. We have responsibility as progressives and Pan-Africanists to Zimbabwe.
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    A more nuanced yet still critical view of Mugabe's Zimbabwe. Particularly useful for critically evaluating the original liberation.
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Governance for Development in Africa Initiative launched at SOAS - 0 views

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    The Centre of African Studies at SOAS has received a tremendous boost with a donation to fund an initiative on Governance for Development in Africa, which will create a dedicated environment to support Africans to study both the legal aspects of governance and the links between economic development and governance.
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    Read in context of critical literature on Mo Ibrahim.
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Pambazuka - Beyond the privatisation of liberation - 0 views

  • At one level the path toward liberalisation should have been opposed by the SACP, but the South African Communist Party found a convenient formulation to support the capitalist road. Their understanding of the stages theory of Marxism meant that South Africa had to pass through a period of capitalist development before the working class could be ready for an alternative to capitalism. This theoretical understanding of Marxism that twisted the revolutionary ideas of class struggles justified the support for the privatisation of large sections of the economy.
  • Former apartheid capitalists were exultant as South Africa’s ‘entrepreneurs’ traversed the continent behind the diplomatic cover of the African Renaissance. The African capitalists fronting for the old apartheid structures accepted the rules of the capitalist system, the racist hierarchy and ethnic power bases and looked to ways to maintain the system while seemingly opposing the very same system that they propped up.
  • In Zimbabwe, the integration of former freedom fighters into the circuits of the Rhodesian state found a new path. After integrating former freedom fighters into the civil service, into the university, into the army, into the police and into the wider bureaucracy, the freedom fighters wanted the land of the settlers. They turned to the language of third liberation to seize the land of the white farmers. What would have been a righteous act of reversing the theft of land from African workers and peasants became one more vehicle for the liberation fighters to become private capitalists. The conditions of the workers on the land did not change as the state became more repressive and intolerant of the wider society. Repression and the privatisation of liberation went hand in glove in Zimbabwe.
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  • in Mozambique the structures of the popular organs such as the women, youth, workers and peasants were weakened. International and western non-governmental organisations invaded the rural communities while the working people were denied the basic democratic rights for collective bargaining and industrial democracy.
  • Jonas Savimbi had fought tenaciously to be the standard bearer for Western capitalism in Angola. However, very early on the MPLA (People's Movement for the Liberation of Angola – Labour Party) accepted the IMF (International Monetary Fund) terms and conditions for neoliberal capitalism.
  • The MPLA leadership built relations with China to widen their bargaining position with international capital. However, this outreach to China and Brazil did not affect the privatisation process. In fact, Chinese private entities such as the Chinese Investment Fund strengthened the capitalist element of the party by importing conditions of labour relations that denied rights to Angolan and Chinese workers.
  • Liberation had become a business and the victories of the people were being distorted for the wealth and power of the ruling families.
  • Jacob Zuma has demeaned the meaning of links to the ancestors by invoking the ancestral spirits on the side of capitalist accumulation.
  • Within the church, the schools, universities, the old media and other intellectual and ideological institutions the struggles intensified but the white capitalists understood that the black capitalists supported the idea of the superiority of the capitalist mode of production. In essence, these blacks supported ideas of racial hierarchy and sent their children to schools that practised overt racial discrimination. So bold had the whites become that at one of the premier universities, the University of Cape Town, it was decided that there was no need to teach African studies.
  • In this political wasteland, Robert Mugabe appeared attractive and earned massive applause when he visited South Africa.
  • Throughout Africa it is imperative that education for transformation support the calls for social transformation. Private property cannot be nationalised with the same mindset that supports the crude consumption of the black capitalists in gated communities. These capitalists manipulate the workers of South Africa on the basis of racial and ethnic identification, and more significantly, these capitalists promote xenophobia to discriminate against other African workers who believe in the concept of Africa for the Africans.
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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.
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Camerounlink actualité : ADB-World Bank Joint Review: Obstacles To Project Ex... - 0 views

  • According to the document, problems inhibiting the smooth execution of funded projects include the poor preparation of projects, poor quality of social and environmental impact assessment studies, delays in the disbursement of funds, low consideration for results-based management, poor monitoring and evaluation of projects, poor
  • implementation of the national contract award system and the poor management of public finances, amongst others.
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Pambazuka - Washington in Africa 2012 - 0 views

  • instead of making the world safer, America’s violation of international human rights abets our enemies and alienates our friends’
  • Sorry, but we recall Washington’s deregulatory support for Wall Street’s market-driven binge, which in 2008-09 contributed to the worst global economic crash in 80 years, resulting in around a million South African job losses. We know that only the wealthy recovered so far, and that in the US, the top 1 percent received 93 percent of all new income since 2009, because the system wasn’t fixed. And who can forget White House hypocrisy when it comes to vast and often illegal US agro-corporate subsidies which continue to thwart African production? And is there any capital city whose political system is more corrupted by corporate (especially banking) campaign contributions than Washington, resulting in such extreme malgovernance that Obama cannot even make an effort to convict a single banker for world-historic economic misdeeds?
  • incorporating the wasting of Africa’s ‘natural capital’ (a silly phrase but one used increasingly by powerbrokers eyeing the ‘Green Economy’). Measuring this loss is something that 10 African leaders agreed to start doing so in May, in the Gabarone Declaration initiated by Botswana president Ian Khama and the NGO Conservation International. The adjustment entails counting the outflow of natural capital (especially non-renewable mineral/petroleum resources) not only as a short-term credit to GDP (via ‘output of goods’ measuring the resources extracted and sold), but also as a long-term debit to the natural capital stocks, as non-renewable resources no longer become available to future generations. Number-crunch the resource depletion, and net wealth declines in Africa as well as the Middle East.
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  • The continent-wide Resource Curse makes the Marikana massacre look like a picnic, and allows us to dismiss Spector’s article as the kind of idle spin-doctoring fluff one gets from the State Department’s US Information Service (his former employer). But that is not a particularly satisfying place to leave matters, for the broader assumptions about the US in Africa also need a rethink, in part because South Africa is hosting the BRICS summit in Durban next March, and we’re being subjected to rhetoric from Pretoria about a ‘new dynamic’ in the emerging market power bloc, supposedly challenging the sole-superpower system of global governance.
  • Thanks to White House patronage, murderous African dictators still retain power until too late, most obviously Egypt’s Hosni Mubarak, who is personally worth at least $40 billion (according to an ABC News report) and who was recipient of many billions of dollars in US military aid in the 18 months following Obama’s speech. As Carson’s boss Hillary Clinton remarked in 2009, ‘I really consider President and Mrs. Mubarak to be friends of my family,’
  • Amongst the 40 were Cameroonian dictator Paul Biya, and as his office reported, ‘At the end of the two and half hours that they spent together, most of the African leaders left the dining hall visibly satisfied.’
  • also have some sort of response should they not heed these warnings not to proceed?,’ the official answer was chilling: ‘I think we haven’t telegraphed any response at this point.’ One reason not to annoy Jammeh was the US Central Intelligence Agency’s reliance upon a Banjul airport as a secret destination and refueling site for ‘rendition’ victims, that is, the illegal transfer of suspected terrorists to countries carrying out torture on behalf of Washington.
  • former US National Security Council official John Prendergast’s concern about ‘a vexing policy quandary’ in Washington’s relations with Ethiopia, Rwanda, Uganda and South Sudan: ‘All of them have served American interests or have a strong US constituency, but all have deeply troubling human rights records.’ (Whether this is a ‘vexing quandary’ or instead best described as a time-honoured tradition is up to the reader to decide.)
  • why launch this latest enterprise of dubious value? Well, when you have created an AfriCom, when you have staffed it with a few thousand personnel, when you have a Special Forces corps numbering 60,000, when you have a vastly expanded CIA Operations Division, and when American strategic thinking is still locked in the auto-pilot mode set in September 2001 – when all these forces are at work, there will be action.’
  • within a few months, that the Central Intelligence Agency was extremely active in Somalia and that mercenaries (such as Bancroft Global Development) were Washington’s hired guns, as Carson admitted to the New York Times, ‘We do not want an American footprint or boot on the ground.’ Hence, according to The Times, drones were used against the Shabab (Al-Qaeda’s allies in Somalia).
  • The 2006 invasion of Somalia by the Ethiopian forces was clearly a proxy war, with AfriCom providing the logistics-allowing a criminal organization like al-Shabab to claim a legitimate reason for its war and brutal terror against the very people both sides claim to be freeing: the poor ordinary Somalis.’
  • On two occasions (1994 and 1996) I worked in the office of a man officially labeled a ‘terrorist’, a South African targeted by the CIA in the early 1960s and only taken off the US State Department’s no-entry ‘terror watch-list’ in July 2008 (!) thanks to a formal Congressional intervention.
  • As WikiLeaks demonstrated, Washington is choc full of pathological hypocrites.
  • Another source of oil disruption in Nigeria of concern to Washington was a civil society case against Shell Oil in May 2012 in which Shell argued it should have no human rights liabilities because of its corporate status, a position that the US rejected when it came to US citizens’ rights to sue. ‘But when the Supreme Court ordered a rehearing in the case, and asked whether human rights lawsuits could be brought when the abuses happened outside the US,’ according to EarthRights International’s Marco Simons, Washington actually sided with Shell. ‘Obama is saying that if a foreign government abuses human rights, we can bomb them, like we did with Libya. But we can't hold anyone accountable in court, because that would threaten international relations.’
  • That means wherever there is socio-ecological, religious and economic pressure, such as Uganda and Somalia, Washington’s instinct is the iron fist, followed by denialism and ‘goo-goo’ good-governance rhetoric. ‘From Carson's presentations two years in a row at the annual African Studies Association meetings, most of us felt we heard the same speeches we heard in the Bush Administration,’ says Wiley.
  • Horn’s evidence is not only that Kony has not been seen for years in Uganda, but that Obama also ‘quietly waived restrictions on military aid to Chad, Yemen, Sudan, and the Democratic Republic of Congo’ even though their armies all have recent documented records of recruiting child soldiers.
  • Indeed, it is appropriate to ask why backwardness prevails in countries that are only ‘useful’ insofar as they have resources. Of course, oil and minerals are not Washington’s only economic objective. As WikiLeaks revealed after a February 2010 meeting with Ethiopian dictator Meles Zenawi, ‘Carson encouraged Meles to hasten steps to liberalize the telecommunications and banking industries in Ethiopia,’ according to the secret State Department cable. An additional economic objective, also revealed at that meeting, was the destruction of the Kyoto Protocol’s binding cap on greenhouse gas emissions, a project that Obama and the heads of Brazil, China, India and South Africa agreed to in Copenhagen at a UN climate summit in December 2009. As WikiLeaks demonstrated, much diplomacy in subsequent weeks was aimed at achieving buy-in even if that entailed bribery and coercion.
  • with Obama half-Kenyan by ancestry (a factor regularly raised by right-wing commentators who even make ridiculous claims as to the land of his birth), this treatment should not be considered as specifically anti-African; instead, it is best described as pro-corporate. For Washington’s whacking of Africa is not so different than the whacks its rulers give everywhere.
  • further information has become available about former constitutional law professor Obama’s personal role in civilian-killing drone warfare (including US citizen victims), cyberterrorism, warrantless eavesdropping, suppression of civil liberties, lack of transparency and other apparent contradictions. However, do these contradictions represent, as Prendergast put it, a vexing quandary – or instead, a tradition?
  • according to American University professor Sean Flynn, Obama ‘endorsed a set of policy proposals in its trade negotiations with developing countries that is much worse for access to medicine concerns than those of any other past administration.’
  • Africa and so many other examples show how the Obama Administration has become a rotten fusion of the worst instincts within neoliberalism and neoconservatism. I hope that on November 6, he soundly defeats Mitt Romney, who is worse on all counts except the ability to huckster people in Africa that Washington acts in their interests.
  • Last year, citing US national security interests, Obama issued a waiver so as to send more than $200 million in military aid to US-allied regimes in Somalia, the Democratic Republic of the Congo, Libya, South Sudan and Yemen in spite of a 2008 US law prohibiting such funding because of their armies’ recruitment of child soldiers. According to Human Rights Watch’s Jo Becker, ‘The Obama administration has been unwilling to make even small cuts to military assistance to governments exploiting children as soldiers. Children are paying the price for its poor leadership.’
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Pambazuka - Contextualizing Obama's visit to Africa - 0 views

  • Both former Presidents Bill Clinton and George W. Bush visited Africa during their second terms in office. When Clinton and Bush made their journeys to Africa, the US foreign policy establishment had been guided by a three-pronged mantra. These were: (a) the notion that Africa was facing a “threat” from international terrorists, (b) that the United States had strategic interests in Africa (especially with the flow of petroleum resources), and (c) the emerging competition with China. The crisis of capitalism since 2008 and the hype about petroleum and gas self-sufficiency as a result of shale oil and new gas finds in the United States have added another layer to all. More importantly, the US plans for confronting China in Africa have been tempered by the reality that the US policy makers have to beseech China to continue to purchase US Treasury Bills. [3]
  • Obama would appear hypocritical in making these panned statements about supporting democracy in Africa. While that has not stopped past presidents, this time the cat is out of the bag. The multiple scandals surrounding the banks and the extent of the corruption of Wall Street exposed by Matt Taibbi and others have dwarfed any discussion of corruption in Africa. America’s inability to rein in the mafia-style activities of the bankers is open and in full view of the world audience.
  • The main drivers of US foreign policy: Wall Street Bankers, petroleum and the military planners (along with the private military/intelligence contractors) have now been overtaken by a sharp shift in the engine of the global economy coming out of Asia. As more news of the corruption of the rigged financial architecture is revealed, all of the states of the G77 are looking for an alternative financial system that can protect them from the predators of Wall Street.[5]
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  • The nervousness and anxiety of the West over the future of the U.S. financial dominance was quite clear from the communique issued after the recent 2013 G8 meeting in Ireland. Most of the points in the communique issued by the White House (the Lough Erne Declaration) dealt with the challenges coming out of Africa and the role of transnational corporations plundering African resources without paying taxes.[8] Prior to the G8 meeting, the 2013 Report of the Africa Progress Panel headed by former Secretary General of the United Nations, Kofi Anan, called on the same G8 leaders to police their corporations. The Panel had called for inter alia:
  • The destructive extraction of resources from Africa is old and has taken new forms, as Patrick Bond reminds us in Looting Africa: The Economics of Exploitation.[10] For the past six decades the World Bank domination of economic arrangements in Africa has seen the period of dramatic capital flight from Africa.[11]
  • The multi-billion dollar enterprise of looting Africa was at the foundation of an international system that increasingly worked on the basis of speculative capital. The World Bank and the IMF understood that the real foundations of actual resources were to be found in Africa. To conceal the looting and plunder, the West disguised the reality that Africa is a net creditor to the advanced capitalist countries (termed “donors” in neo-liberal parlance). For this reason (and to perpetuate the myths of “spurring economic growth and investment”), the United States government has been caught in a losing battle where new rising forces such as Brazil, Russia, India, China, Turkey, South Korea and other states offer alternatives to the structural adjustment and austerity packages.
  • The fallout from the Libyan intervention has created insecurity and violence in all parts of North Africa and the Sahel, with racist elements within this Libyan uprising persecuting Africans as mercenaries.
  • From the writers in the US academic establishment, the NATO intervention was a success. [14] However, decent peoples in all parts of the world have been outraged by the continued violence and the support for the murderous militias by Turkey, Qatar, and Saudi Arabia. The persecution of the citizens of Tawergha stands as a permanent repudiation to the NATO intervention in Libya.
  • The previous justifications for US engagement had been part of the logic for the establishment of the US Africa Command. For a while there was the fiction that the United States was supporting growth and trade (via the Africa Growth and Opportunity Act (AGOA)), but the militarization of the engagement with Africa intensified after then Vice President Dick Cheney’s energy task force had designated African petroleum as “strategic” and colluded with Donald Rumsfeld to establish the Africa Command (AFRICOM).
  • In June 2012, the White House issued a new policy statement on Africa. What was striking about this new White House Statement was that there was no mention of the US Africa Command. The document was titled, “Policy towards Sub-Saharan Africa.”[16] Many Africans did not pay much attention to this old ruse of seeking to divide Africa between so called sub- Saharan Africa and North Africa. The reality of the African Union is something that the US policy makers do not want to recognize; hence the State Department maintains the nomenclature of sub-Sahara Africa.
  • When John Kerry spoke at the 50th anniversary of African Unity in Addis Ababa in May 2013, the U.S. Secretary of State did not mention the U.S. Africa Command or the War on Terror. Instead John Kerry spoke of the fact that his wife, Teresa Heinz Kerry, was part of the anti-apartheid struggles in Southern Africa when she was a student at the University of Witwatersrand.
  • While there are no funds to support educational exchange, in the week of June 19, 2013, the US Senate under the initiative of Republican Senator James Inhofe authorized, “the Department of Defense to obligate up to $90 million to provide logistical support to the national military forces of Uganda to mitigate or eliminate the threat posed by the Lord’s Resistance Army (LRA) and bring an end to the murderous campaign of LRA leader Joseph Kony.”[18] This clear support of the conservatives in the United States for the Yoweri Museveni government in Kampala, under the guise of fighting Kony, comes at a moment when the Museveni leadership is being challenged, even from its own officer corps. [19] More importantly, Republican Senator James Inhofe and the conservatives who initiated this new authorization are bent on supporting a regime where there are elements who believe that same-gender loving persons should be put to death.
  • When U.S. Attorney General Eric Holder was testifying before the Senate Judiciary Committee about the corruption of the banks he stated, “I am concerned that the size of some of these institutions becomes so large that it does become difficult for us to prosecute them.” Prosecutors, he said, must confront the problem that “if you do prosecute, if you do bring a criminal charge, it will have a negative impact on the national economy, perhaps even the world economy. And I think that is a function of the fact that some of these institutions have become too large.”[21]
  • When Obama entered the White House in January 2009, Secretary of the Treasury Timothy Geithner advised him that prosecuting the banks would have a negative impact on the world economy.
  • Gary Yonge in the Guardian made the excellent argument in pointing out that Barack Obama is the Commander in Chief of the United States and is captive to US imperial power. In the article titled, “Is Obama Worse than Bush? That's Beside the Point,”[22] Yonge traced the statements of Obama the candidate to the realities of Obama as the President of the United States. His argument, that it is beside the point whether Obama is worse than Bush, is worth considering in light of the reality that the capitalist crisis facing the United States is far worse than when Bush was President 2001-2009. I will agree that the conditions of the repressive nature of the state have intensified in the midst of the global insecurity of capital, but where I would differ with Yonge would be for the progressive forces to intensify the efforts to hold the bankers accountable so that the militarists and the bankers do not take the world into other military catastrophes.
  • Recently, Obama appointed Susan Rice as the National Security Adviser. Rice had been groomed in anti-communism by the Madeline Albright and Clinton factions of the establishment. When Susan Rice was student at Oxford in the 1980s, she reputedly looked the other way when students such as Tajudeen Abdul Raheem were opposing apartheid. She was a member of the ignominious Bill Clinton national security team that pressured the United Nations not to intervene at the time of the Rwanda genocide in 1994.
  • Since those two journeys in June and July 2009, Obama has had to hide his understanding of Africa because he has been faced with a racist group called the Birthers who claim that he was born in Kenya and is therefore illegitimate as a President. There is another strong constituency that alleges that Obama is a Muslim. Obama can rightly claim his Irish heritage from his mother’s side, but is mortally afraid of making any statement that may suggest that he is familiar with the political struggles in Africa.
  • We know from the book by Richard Wolffe, Renegade: The Making of a President, that during the height of the Democratic Party primary battles in Iowa in January 2008, Obama had invited his sister, Auma Obama, to Iowa so that he could be kept abreast of the social forces behind the violence in Kenya at the time. When he drove around Iowa, his sister was briefing him on the issues that sparked the opposition to the theft of the elections. While preoccupied with the Iowa caucuses he was calling Kenya, reaching out to Desmond Tutu and taking an active role in seeking an end to the incredible violence that took hundreds of lives.[24] Since 2009 the Kenyans have been building a massive airport at Kisumu so that Air Force One could land in Western Kenya. This was in anticipation of the visit of Obama to visit his relatives. All of the planning for a Kenyan visit has had to be put on hold because of the outstanding questions of the initiators of the chilling violence that overtook Kenya in January 2008. Obama has instead opted to visit neighboring Tanzania.
  • Col. Lawrence Wilkerson has stated more than once that the arming of Syrian rebels will be a backdoor to the war against Iran.[27]
  • The Obama administration has been trapped by the history and practices of financial industry, the military intelligence corporations and the petroleum companies. From very early in 2009, the Obama administration understood that financial innovation was not socially valuable.
  • Those conjuring the “stress tests” are quite aware of the scholarly output as well as the activists who are now standing up for Africa.[31]
  • Official statements from the US Africa Command about peacekeeping and humanitarianism in Africa have been silent on the warfare and plunder in the Eastern Congo where the military allies of the United States, Rwanda and Uganda have been indicted for looting the natural resources of the Democratic Republic of the Congo. This week John Kerry as the Secretary of State appointed former Senator Russ Feingold of Wisconsin as the Special Envoy to the DRC.
  • The legacies of enslavement, colonialism and apartheid dominate the social landscape in Africa. Recent scholarship on the health impacts of enslavement have pointed out the contemporary health questions in the African community in the West that emanate directly from slavery. [33] Harriet Washington in the excellent book, Medical Apartheid: The Dark History of Medical Experimentation on Black Americans from Colonial Times to the Present [34] has deepened our understanding of how many of the health practices of contemporary western medicine can be traced back to the era of enslavement.
  • In those fifty years, the US undermined the processes of self-determination, supported the apartheid regimes in Southern Africa (Namibia, South Africa and Zimbabwe along with the Portuguese colonial forces in Angola and Mozambique), supported Jonas Savimbi for over twenty years, intervened in Somalia, destabilized the DRC by supporting Mobutu Sese Seko or thirty years, and most recently supported NATO to create havoc in Libya. At the most recent meeting of the African Union in Addis Ababa in May 2013, there were clear statements from the grassroots for the immediate unification of Africa. The confidence of the Global Pan African Family was clearly on display. The Obama administration understands the deep desires for change in Africa. Many of the current leaders who occupy office in Africa are teetering on the brink of extinction. There must be a break from the old US policy towards Africa that propped up tyrants and looters. While the media is complaining about the cost of the trip, the progressive intellectuals and activists in the US and in Africa must organize to oppose militarism and plunder in Africa. This is an inopportune moment for Obama to travel to Africa unless he is going to repudiate the growing police state that he is supervising. The mainstream establishment of the United States of America has nothing substantial other than militarism to offer Africa. This trip to Africa is a PR effort to solidify his legacy and garner waning support from his base in the United States.
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Pambazuka - Transcending silence - 0 views

  • Syrian women are suffering an epidemic of gender-related violence, both at home and in the countries where they have taken refuge. Rape is widespread on the battlefield, but even in the relative safety of the Diaspora, women and girls are increasingly subject to domestic violence, prostitution and early marriage, say NGOs.
  • To combat this issue, Abaad will be working with the United Nations Children Fund (UNICEF) to provide psychosocial treatment for perpetrators of domestic violence. ‘We have to work with the men as much as we do with the women,’ said Roula.
  • With minimum labour wages decreasing and housing costs mounting, immense poverty has pressured families to determine the worth of their children.
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  • Yet for other parents, departing from their daughters is a method to secure their dowry. ‘Families are desperate to receive the dowry. It could mean the difference between homelessness and securing rent for a couple more months,’ said Heba. Moreover, with cases of rape and sexual harassment rising, some families have given their daughters away to ensure their ‘protection.’
  • The ripples of war have entrapped the women from Syria in a cycle of misery. Displaced women have suffered from the hands of armed actors, their host communities, and members of their family. Regardless, these women refuse to be merely victims of war. Despite her traumatizing experience, Sandra has been delivering aid to refugees on the Turkish/Syrian border. She’s still coming to terms with what took place that evening in the countryside. Nevertheless, she has continued to provide relief to fellow victims of sexual harassment and rape. Sandra’s actions encapsulate Syria’s uprising. Her story shows that wherever domination takes place, a form of resistance emerges from it.
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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
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Democracy Today: The case of the Democratic Republic of Congo | Pambazuka News - 0 views

  • Democracy, or more accurately democratic materialism, has become the dominant ideology. It is increasingly obligatory to be a democrat. It has almost become the single political thought. Democratic materialism asserts that there are only bodies marked by languages, and nothing else. There is only one market, one politics, one economy.
  • Democracy has become a package of 'techniques' — constitutions, electoral mechanisms, management systems — to be exported or imposed, top-down, on Third World countries.
  • The world becomes divided in a Manichean manner: good democracy versus bad democracy (the recent experience of the Palestinians); good Muslim versus bad Muslim (Mamdani 2004); good states versus rogue states; democrats versus terrorists. And are these the fuelling dynamics of globalisation?
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  • On the other hand, the national liberation mode of politics which opened up with the independence of India, died with the assassination of Salvador Allende and Amilcar Cabral in 1973. That was the most active period of transformative politics the world has seen — with leaders such as Ghandi, Mao Tse-tung, Fidel Castro, Frantz Fanon, Ho Chi Minh. The imposition of draconian structural adjustment programmes on impoverished countries, and the recent very aggressive imperial interventions — in Iraq, Afghanistan, Haiti, Lebanon, and the protracted resistance of people in those countries, are reawakening hope for other active, transformative politics in the world.
  • From the very beginning, with the precipitous granting of independence on 30 June 1960 by Belgium, the Congolese have never had a chance, by themselves and without external interference, to debate the parameters of the definition of the crisis they have protractedly been facing since the crusaders of the Cold War dismantled the nationalist regime and assassinated Patrice Lumumba. Even the so-called Sovereign National Conference (SNC), singling out Mobutu as the cause of every evil, ended up failing to grasp the significance of the impact of the Cold War on the country. It finally adopted a proposal by Herman Cohen — a former US under secretary of state for African Affairs — to keep Mobutu in power and reduce only his powers. Such a solution, later on, turned into a farce.
  • The elections were organised mostly on the basis of external financing. This gave external forces the leverage to control the process, its pace, scope and order of priorities. Ascendancy to their preferences made a mockery of national sovereignty in the elections: of the democratic project as a whole. Almost no funds were allocated to the crucial task of civic education for the electorate.
  • Very briefly, the so-called democratic project has been, in the DRC, another process of grafting a Western experience of democracy, reduced to a 'universal model', on to an ill-prepared and un-attendant Congolese political soil, justified, aposteriori, as a necessary consequence of globalisation.
  • If if is the case that the Bakongo nation consisted of all the consistent anti-colonialists from 1921 (with Kimbangu’s Kintwadi) up until to 1959 (January 4th uprising), the core of the Congolese nation struggling for national independence,as F. Fanon and A. Cabral asserted, one should not be surprised that some of their descendants are leading the struggle against corrupting democracy.
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Thabo Mbeki's New Partnership for Africa's Development: Breaking or Shining the Chains ... - 0 views

  • NEPAD will be highlighted and endorsed at the G-8 meeting in Alberta, Canada, in June 2002, at the July launch of the African Union in Pretoria, and at the Johannesburg World Summit on Sustainable Development–with a proposed global “New Deal” modeled on NEPAD–in late August. At such events, protesters who support the cause of global environmental, social, and economic justice will be told, in effect, “Don’t worry, you can go home, because Thabo Mbeki is taking care of globalization’s shortcomings.”
  • Mbeki’s approach is consistent with what has been termed compradorism. Mbeki and his main allies have already succumbed to the class (not necessarily personalistic) limitations of post-Independence African nationalism, namely acting in close collaboration with hostile transnational corporate and multilateral forces whose interests stand directly opposed to Mbeki’s South African and African constituencies.
  • In its beginnings, the national bourgeoisie of the colonial country identifies itself with the decadence of the bourgeoisie of the West. We need not think that it is jumping ahead; it is in fact beginning at the end. It is already senile before it has come to know the petulance, the fearlessness, or the will to succeed of youth.
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  • Thus, I argue below, the reform strategy will fail, although not because of Pretoria’s lack of positionality and international credibility to carry out NEPAD and win endorsements from global elites.
  • Instead, as argued in five subsequent sections, the failure is already emanating from the very project of global reformism itself, namely, Mbeki’s underlying philosophy and incorrect analysis, ineffectual practical strategies, uncreative and inappropriate demands, and counterproductive alliances.
  • Moreover, notwithstanding mixed rhetorical signals, Mbeki and NEPAD for all effective purposes exclude (indeed, most often reject) alliances with international social, labor, and environmental movements who, in their struggles for socio-environmental and economic justice, are the main agents of progressive global change.
  • Tellingly, NEPAD does not mention that although poverty increased dramatically in the wake of the 1997-99 emerging markets crisis, foreign investors (especially New York and London financiers) generally recovered their funds, and new U.S. investors in debt-ravaged Asian firms were able to pick up assets at fire-sale prices.
  • Indeed, the systematic unfairness applied to Africa also applies to South Africa, Mbeki has learned since 1994.
  • [T]here is nobody in the world who formed a secret committee to conspire to impose globalization on an unsuspecting humanity. The process of globalization is an objective outcome of the development of the productive forces that create wealth, including their continuous improvement and expansion through the impact on them of advances in science, technology and engineering.
  • The technology-centric “admission” is fundamentally apolitical and disguises the reality of dramatic changes in class relations, especially the resurgent power of U.S. and EU capital in relation to working classes there and across the world (as reflected in stronger state-corporate “partnerships” and the decline of the social wage during the Reagan, Thatcher, and Kohl administrations).
  • The prime culprits in making South Africa so vulnerable were, firstly, the government’s March 1995 decision, under intense pressure from local and international financiers, to discard the “financial rand” dual-rate exchange control mechanism, and secondly, the permissions granted from 1999-2001 to allow the largest South African firms to relocate (or delist entirely) their financial headquarters from Johannesburg to London.
  • Simultaneously, economic advice poured in from international financial centers, based upon persistent demands not only for macroeconomic policies conducive to South Africa’s increased global vulnerability, but also for social policies and even political outcomes that weakened the state, the working class, the poor, and the environment.
  • South Africa, too, witnessed mass protests against neoliberalism: by the Congress of South African Trade Unions (COSATU) in May 2000 and August 2001, at the World Conference Against Racism in September 2001, and in repeated local settings (against, for example, water/electricity cutoffs and evictions due to poverty) in Soweto, Chatsworth, Mpumalanga, Bredell, Tafelsig, and many other sites.
  • Mbeki had earlier embarked upon a late 1990s’ “African Renaissance” branding exercise, which he endowed with poignant poetics but not much else. The contentless form was somewhat remedied in the secretive Millennium Africa Recovery Plan, whose powerpoint skeleton was unveiled to select elites in 2000, during Mbeki’s meetings with Bill Clinton in May, the Okinawa G-8 meeting in July, the UN Millennium Summit in September, and a subsequent European Union gathering in Portugal. The skeleton was fleshed out in November 2000 with the assistance of several economists and was immediately ratified during a special South African visit by World Bank President James Wolfensohn “at an undisclosed location,” due presumably to fears of the disruptive protests that had soured a Johannesburg trip by new IMF czar Horst Koehler a few months earlier.
  • To his credit, though, the erratic Obasanjo had led a surprise revolt against Mbeki’s capitulation to Northern pressure at the World Conference Against Racism in September 2001, when he helped generate a split between EU and African countries over reparations due the continent for slavery and colonialism. Tellingly, even loose talk of reparations is purged from NEPAD.
  • It is arguable that Mbeki’s approach to the first front, debt relief, has already done incalculable damage, mainly by virtue of his failure to endorse the Jubilee movement’s campaign against “odious debt,” including apartheid debt.
  • But HIPC is already widely derided–especially in the Jubilee South movement–as “a cruel hoax.” Along with the IMF/World Bank Comprehensive Development Frameworks and the Poverty Reduction Strategy Programs, HIPC deals are fundamentally committed to maintaining existing power relations and the neoliberal economic philosophy, because they entail only very slight adjustments to debt loads and in return require lowest-income countries to further liberalize.
  • Regarding the second issue, inflows of capital, there are two kinds worth considering: financial and foreign direct investment. It hardly needs arguing that “hot-money” speculative inflows to emerging markets such as South Africa do not by any stretch qualify as “a prerequisite for development.” Nor do the vast majority of foreign loans granted to third world governments over the past thirty years, including concessional (0.75% interest rate) loans through the World Bank’s International Development Association and African Development Bank. Those loans serve as the leverage for gaining neoliberal conditions from borrowers. Repayment of even concessional hard-currency loans is extremely expensive once a country’s currency collapses, as happens regularly to Africa.
  • after having done all in his power to attract foreign direct investment (FDI), not even Mbeki has succeeded. Good governance and political stability are not the key factors, Africa has learned; otherwise oil-rich Angola and Nigeria would not be the continent’s main beneficiaries of FDI inflows.
  • NEPAD’s main solution to the foreign investment drought appears to be the promotion of a foreign stake via “Public-Private Partnerships” in privatized infrastructure: “Establish and nurture PPPs as well as grant concessions toward the construction, development and maintenance of ports, roads, railways and maritime transportation… With the assistance of sector-specialized agencies, put in place policy and legislative frameworks to encourage competition.” The lack of justification for this initiative–aside from Africa’s capital shortage–is extremely unsatisfying, given that most infrastructure is of a “natural monopoly” type, for which competition is unsuitable.
  • Third, regarding foreign aid, Mbeki calls for “more and better managed aid so as to deal with the basic needs that will have to precede any form of development in certain areas.” One problem is that Mbeki did very little in practice to dissuade Clinton and other international leaders from the classically neoliberal trend known as “trade, not aid” (the 1990s value of North-South aid fell by a third).
  • The effectiveness of “partnership” was made explicit in 1998-99, when U.S. Vice President Al Gore lobbied Erwin, Health Minister Nkosazana Dlamini-Zuma, and Mbeki himself to roll back the 1997 Medicines Act, which promoted the parallel import and generic production of antiretroviral drugs essential in fighting HIV/AIDS. The transnational pharmaceutical corporations threatened a constitutional lawsuit against the act, which they actively pursued for a month in March 2001 before international protest forced them to withdraw. This life-and-death case of technology transfer–blocked by corporations whose billions of dollars in profits overrode access to drugs that would save millions of lives–is instructive about the nature of alliances.
  • It was not Erwin’s philosophy of a fair and just trade partnership that persuaded Vice President Gore to reverse his position. A vibrant “Treatment Action Campaign” of grassroots militants emerged in South Africa during 1999, embarked on protests at U.S. consulates in Johannesburg and Cape Town, and began networking with the Philadelphia, New York, and Paris chapters of the advocacy group ACT UP (AIDS Coalition to Unleash Power). Gore was confronted repeatedly and aggressively by protests in Tennessee, New Hampshire, California, and Pennsylvania at the very outset of his presidential election campaign in mid-1999. Numerous newspapers carried front-page stories on Gore’s quandary.
  • But with whom in the world does Thabo Mbeki really have an honest partnership, and with whom is he building genuine solidarity? Notwithstanding the eloquence of his Atlanta speech, the answers are not obvious.
  • Mbeki and the ANC repeatedly unveiled repressive tendencies: against millions of antiprivatization strikers in the trade union movements, against thousands of community residents in Soweto suffering from unaffordable services because of privatization pressure, and against leading opponents of Mbeki’s AIDS policies, who during 2000 were reportedly labeled by Mbeki as “infiltrators” of the trade union movement and agents of pharmaceutical corporations and the CIA.
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Pambazuka - The revolution and the emancipation of women - 0 views

  • Sankara vehemently and publicly denounced odious debt and rallied African political leaders to do the same.
  • What distinguishes Sankara from many other revolutionary leaders was his confidence in the revolutionary capabilities of ordinary human beings. He did not see himself as a messiah or prophet, as he famously said before the United Nations General Assembly in October of 1984. It is worth quoting from Sankara at length, when before the delegation of 159 nations, he said: ‘I make no claim to lay out any doctrines here. I am neither a messiah nor a prophet. I possess no truths. My only aspiration is…to speak on behalf of my people…to speak on behalf of the “great disinherited people of the world”, those who belong to the world so ironically christened the Third World. And to state, though I may not succeed in making them understood, the reasons for our revolt’.
  • Meaningful social transformation cannot endure without the active support and participation of women. While it is true that women have been deeply involved in each of the great social revolutions of human history, their support and participation has historically often gone relatively unacknowledged by movement leaders.
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  • Sankara was somewhat unique as a revolutionary leader - and particularly as a president - in attributing the success of the revolution to the obtainment of gender equality. Sankara said, ‘The revolution and women’s liberation go together. We do not talk of women’s emancipation as an act of charity or out of a surge of human compassion. It is a basic necessity for the revolution to triumph’.
  • Thomas Sankara, a Burkinabé with military training, had witnessed the student and worker-led uprisings in Madagascar.
  • Blaise Compaoré remains the president of Burkina Faso today and has been implicated in conflicts in Liberia, Sierra Leone, Cote d’Ivoire, and in arms trafficking and the trafficking of diamonds. There has been no independent investigation into Thomas Sankara’s assassination, despite repeated requests by the judiciary committee of the International Campaign for Justice for Thomas Sankara, a legal group working in the name of the Sankara family. The UN Committee for Human Rights closed Sankara’s record in April of 2008, without conducting an investigation into the crimes.
  • The revolution’s promises are already a reality for men. But for women, they are still merely a rumor. And yet the authenticity and the future of our revolution depend on women. Nothing definitive or lasting can be accomplished in our country as long as a crucial part of ourselves is kept in this condition of subjugation - a condition imposed…by various systems of exploitation.
  • He locates the roots of African women’s oppression in the historical processes of European colonialism and the unequal social relations of capitalism and capital exploitation. Most importantly, he stressed the importance of women’s equal mobilisation. He urges Burkinabé women into revolutionary action, not as passive victims but as respected, equal partners in the revolution and wellbeing of the nation. He acknowledges the central space of African women in African society and demanded that other Burkinabé men do the same.
  • In an interview with the Cameroonian anticolonial historian Mongo Beti, he said, ‘We are fighting for the equality of men and women - not a mechanical, mathematical equality but making women the equal of men before the law and especially in relation to wage labor. The emancipation of women requires their education and their gaining economic power. In this way, labor on an equal footing with men on all levels, having the same responsibilities and the same rights and obligations…’.
  • He criticised the oppressive gendered nature of the capitalist system, where women (particularly women with children to support) make an ideal labour force because the need to support their families renders them malleable and controllable to exploitative labour practices.
  • US-backed militarisation of Africa takes a couple of different forms.
  • First, it means an increase in troops on the ground. US Special Ops and US military personnel have been deployed in the Central African Republic, the Democratic Republic of the Congo, Mali, Mauritania, South Sudan, and (potentially) Nigeria.
  • Second, US military personnel conduct training sequences with African militaries.
  • Third, the US military funds social science research into African society, culture and politics. This takes various forms, one of which is the use of SCRATs (or Sociocultural Advisory Teams) for the purposes of preparing US military personnel for deployment and missions.
  • A strong military structure paves the way for the resource plunder and large scale dispossessions that are seen in neoliberal states in the so-called Global South. In this system, the state ensures profit for class elites (both international and domestic) by guaranteeing the super-exploitation of labour and the dispossession of millions of people of their lands and livelihoods for resource extraction at serious costs to local ecology, health and wellbeing. This guarantee can only be made through an increased militarism that stifles political mobilisation.
  • Thomas Sankara and the August Revolution of 1983 tells us another story. They provide a different way of thinking about social organisation. Sankara understood that capitalism is dependent upon the unequal deployment of and distribution of power, particularly state power. But, as he showed us, the state is not unalterable. The state is a complex system of human relationships that are maintained through violent power/coercion and persuasion. And what Sankara did was work to bring the state apparatus down to the level of the people, so to speak.
  • The image of my daughter’s grandfather entering his home and collapsing onto the sofa, holding his face in his hands and crying emerges in my head each time I think of Sankara. This image of a middle aged Cameroonian man, Jacque Ndewa, thousands of miles away, who had never travelled to Burkina Faso, crying quietly on his sofa. This is the resonance that Sankara had, across the African continent and among disenfranchised and dispossessed people everywhere.
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From Oil City to Book Central! Port Harcourt is Selected As UNESCO's Book Capital of Th... - 0 views

  • Port Harcourt was chosen as the World Book Capital for 2014 “on account of the quality of its programme, in particular its focus on youth and the impact it will have on improving Nigeria’s culture of books, reading, writing and publishing,” according to the Selection Committee.
  • Funding has also been approved in principle for a Garden City Library Complex to be built in Port Harcourt which would include a bookshop, performing arts theatre and a library—this alone will change the artistic map of Nigeria, orienting the country towards our third great cosmopolis, Port Harcourt, and away from the noise and urban stresses of Lagos, the business capital, and of Abuja, the rather austerely designed political capital of Nigeria. Of particular delight is the Meet the Author literary readings planned, in which authors will interact with an audience of book enthusiasts, get to read from their work and answer questions, and generally add to a discourse about books and writing in Nigeria.
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