Development Africa

We regularly read in the press that Saudi Arabia ↑ has purchased enormous areas of crop land for rice production, and several members of the government possess large areas of land in some of Burkina Faso’s most fertile areas without even being farmers! The recently adopted land tenure law is encouraging the development of these destabilising trends.

Let me give an example. In 1999, a rural Burkinabé woman, Nagbila Aisseta, accepted ↑ the Hunger Project Africa Prize awarded to the 'women farmers of Africa'. She was a poor woman aged 35 who had not left her village since birth, had never entered a car, knew nothing at all of modern life, but who, little by little, had developed initiatives to create a large organisation involved in livestock farming, agriculture, and market gardening to tackle malnutrition in her area. She was invited to receive her prize at a ceremony at the United Nations headquarters and asked to submit her speech prior to the event in the national Mooré language. It was to be translated into English, which she did not speak, for another person to read out during the ceremony. But she said “No. If it is me that has received the prize then I should speak directly to those who gave it to me. The way I was brought up, when you thank someone you thank them directly, without a go-between.” She asked the United Nations to find a Burkinabé interpreter who could understand both Mooré and English in order to ensure simultaneous interpretation. And this is how it was done. She knew her rights -  in this case the right to speak!

Do you think that Green Capitalism is a satisfactory response from the status quo to address the challenges of climate change, peak oil and resource scarcity in Africa? YASH TANDON: I am afraid not. It does not solve the problem of the control of Africa`s resources – including oil, minerals, land, water and forestry – by global corporations.

I doubt that China and India are driven by the motive of “helping Africa to develop”. They are in Africa because they need Africa`s resources, and openings for investing their capital. Nobody from outside is going to develop Africa. That is Africa`s responsibility. Therefore African governments must negotiate trade and investment terms with India, China -- and others -- with knowledge, skill and shrewdness.

the SC seeks to provide a policy platform for the countries of the South to coordinate their negotiating positions on issues ranging from trade agreements to intellectual property, climate change, human rights, health and human security.

Nonetheless, there are policies that the present government has put in place that are sensible – for example, on putting limitations on capital account and ownership of banks – but Ethiopia is still too dependent on aid from outside. This constrains its ability to shape its own development path.

Development comes from a deep understanding of the situation Africa finds itself in contemporary times. Development is always self-development. It cannot come from outside. Pain and sacrifice are necessary ingredients of development, both for individuals and for nations. The “soft bed” of foreign aid is the road not to development but to slavery.

The best example of this development assistance is the building of the Tanzania–Zambia Railway (TAZARA), ‘one of the lasting monuments to its former presence’. China helped Tanzania and Zambia build the railway of 1,860km for US$500 million during 1968–86 with about 30,000 to 50,000 Chinese involved (64 people died). As Jamie Monson points out: ‘… the Chinese had articulated their own vision of development assistance in Africa throughout the Eight Principles of Development Assistance … these principles reflected China’s efforts to distinguish its approach to African development from those of the United States and the Soviet Union. Several of these principles had direct application to the TAZARA project.’[6]

Recent collaboration between China and Nigeria to launch a communications satellite, NigSat I, is a groundbreaking project where China has provided much of the technology necessary for launch and on-orbit service and even the training of Nigerian command and control operators. While Nigeria acquired satellite technology, China also gained from the collaboration by burnishing its credentials as a reliable player in the international commercial satellite market.[8]

In January 1963, China was the first to express its willingness to provide medical assistance to Algeria, marking the beginning for China to provide medical aid other countries.[9] Since then, Hubei Province has been in charge of the dispatch of the Chinese Medical Team (CMT) to Algeria. Up to 2006, Hubei had sent out more than 3,000 medical personnel/times (p/t) to Algeria and Lesotho. The latter started to receive CMT in 1997.

The great advantage of CMT is the Chinese traditional medical treatment, especially acupuncture. The reputation of CMT has spread to neighbouring countries. In Mali, while the climate and living conditions cause many cases of rheumatism, arthritis and psoatic strain, acupuncture is the most effective cure for the cases.

CMT’s service was noticed by David Shinn, the US former ambassador to Ethiopia and Burkina Faso. He said: ‘China received praise in Liberia for its medical teams because they prioritise the transfer of knowledge and technology. They sent specialists and general practitioners, who upgraded and built the professional skills of local heath workers. In the case of war-torn Liberia, this is a critical medical need.’[14]

Cotecxin, the most effective anti-malaria drug produced in China, and acupuncture have won a great reputation in Africa. In certain areas, life habits and the abuse of medication cause serious disease. In Mali, malaria is very common and people have to take Quinine for treatment and many people suffer from limb hemiplegia caused by the overuse of Quinine.

Two of my students are Africans. Although the content was interesting, two of my African graduates complained when they were talking about their assistance to Africa that there was no African present except the two of them. This situation is by no means particular. I have attended some of the workshops with the same peculiar characteristic: talking about important African issues without Africans’ participation. Can we decide the issue for others? That is the key question.

The World Bank official asked the official of the ministry, ‘Do you know why you Chinese are more successful in the aid issue?’ The answer was negative. Then the World Bank official explained. ‘Let me tell you why. It’s just because we know what aid we can provide in Africa while you don’t know. Since you are not clear, you ask the Africans about this and they told you what they exactly need. That is the reason you are more successful.’ Can we decide what others need? This is another key question.

e Villiers said the body appointed to look at the problem favours neutralisation as the best solution to the problem of AMD. ‘Certainly, it will be an economically viable solution, if logistics such as the reservoirs needed for the neutralization to be carried out in (continuously over a very long period of time) can be sorted out, which seems unlikely at the moment. ‘The proposals by corporations to step in with their proposed solutions have apparently been shot down, because they wanted to sell the cleaned water back to Rand Water, making a profit in the process. ‘I’m not sure why mining houses are allowed to pollute while making a profit, and corporations who want to clean up are apparently expected to do so without the benefit of making a profit,’ she said.

In an interview with The Africa Report, Turton said that not only will mines evade the legal minimum requirement of the ‘polluter pays principle’ but also profit from it. ‘What’s more, that profit is all but guaranteed, because it will be underwritten by the state in the form of a mooted Public Private Partnership (PPP),’ he said. The deal allows for mining houses to access a R3.5-billion deal with no tendering process, as well as select ‘treatment’ that was described by Turton as the ‘least cost option’ via a process shrouded in secrecy, enabling the WUC to act as both consultant and reviewer.

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.

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.

We are told every day that freedom means voting plus service delivery. We do not accept this definition and we will not be intimidated by all those who say that our refusal to accept this definition means that we are immature and unprofessional. As a movement of the forgotten it is our duty to continually ask ourselves what freedom really means. Freedom is always something that should be defined by the people.