ISSUE Vol. 18 No.2 2015 US$5.00 GB£3.00 €5.00 Find out what's on the African Agenda
To subscribe, please fill in the form and post it to the address shown
ANNUAL SUBSCRIPTION RATES
(INDIVIDUALS)
Africa & Global South $35.00
North America & Australia $55.00
Europe €55.00 The African continent is mostly reported as a land of poverty, civil strife and end- U.K £35.00 less lines of begging hands. Problems facing the continent are portrayed and communicated mostly by foreign eyes through the monopoly-controlled news Ghana GH¢9.00 media.
Rarely are Africans themselves given a forum to highlight what they see as press- INSTITUTIONAL/ CORPORATE ing problems, and offer analyses and solutions to tackle the challenges. By pub- lishing African Agenda, Third World Network Africa aims to provide exactly that Africa & Global South $45.00 forum. Open your eyes and ears to an African perspective on critical issues such as trade, the environment, gender and sustainable development. North America & Australia $70.00
I wish to subscribe to AFRICAN AGENDA and I enclose Europe €70.00 A cheque/bank draft payable to Third World Network
U.K £45.00 AMOUNT ………………………...... ………...... ………......
NAME: ...... ………...... ………... Ghana GH¢10.00 ADDRESS: ...... ………......
CITY: ...... ………...... POSTCODE: ......
COUNTRY: ...... STUDENTS Send to Third World Network, P.O. Box 19452, Accra-North, Ghana
METHOD OF PAYMENT Ghana GH¢8.40 Cheque/Bank draft payable to Third World Network Direct Bank Transfer: Account Name - Third World Network Bank Address:- Standard Chartered Bank, Foreign Services Africa & Global South $30.00 Branch High Street, P.O. Box 768, Accra-Ghana Account No. 2800202240700
North America/Australia $50.00 CREDIT CARD
Please charge the amount of ...... to my credit card U.K £30.00 AMERICAN EXPRESS MASTER CARD VISA Account No. Europe €50.00
Signature:...... Expiry Date:......
West Africa Telephone +233 -302- 511189 fax 233-302-511188 Email: [email protected] /[email protected] Contents
COVER The American foot in Ghana's electricity…...... …...... page 5 Power Africa, the reality……...... page 9 The historical energy planning malaise…...... page 11 Ghanaian workers against privatization of energy sector...... page 12
DEVELOPMENT Capital flows, tax haven and offshore secrecy system…...... page 15 Is Africa's 'resource nationalism' just big business as usual?..... page 18 Financer like a cancer grows………...... page 20
INTERNATIONAL The Bandung diamond jubilee: time for a new world order…...... page 22 A short walk but with giant steps…...... page 25 page 9 photo: Obama and African leaders Saving Palestine's children under the arms trade treaty…...... page 27
POLITICS Presidents in designer suits, citizens in rags…...... page 29 How serious are Guinea protests?...... page 32 AfricanPublished by TWNAgenda Africa New terrorism law batters Cameroonians seeking secession…...... page 34 Editor-in-Chief: Yao Graham Political economy of xenophobia……...... page 36 Editor: Cornelius Adedze Design: David Roy Quashie
EDITORIAL, SUBSCRIPTIONS AND ADVERTISING:
TWN-Africa P.O. Box 19452 Accra-North Ghana, West Africa Tel: (233) 302 511189/503669/500419 Fax: (233) 302 511188 Email: [email protected] Website: www.twnafrica.org Note to subscribers As part of efforts to improve our data management all TWN INTERNATIONAL SECRETARIAT subscribers have been allocated identification numbers. You will always find them on your address labels. Please President: Mohammed Iddris quote these numbers in all correspondence regarding Director: Martin Khor your subscription. 131 Jalan Macalister 10400 Penang Malaysia The material in this magazine may be freely reproduced and distributed without prior permission, provided that the source of the material is attributed to African Agenda ISSN 0855-3378.
African Agenda is published six times a year by Third World Network (TWN) Africa. TWN is an international network of groups and individuals who seek greater articulation of the needs and rights of the peoples of the Third World, especially marginalised social groups, a fair distribution of the world’s resources and forms of development which are ecologically sustainable and fulfil human needs. TWN Africa is grateful to Oxfam-NOVIB, Development and Peace, InterPares (Canada), TrustAfrika, Rockefeller Brothers Fund and Rosa Luxemburg Foundation. EDITORIAL Power Africa, America's power
nergy has come to the fore as one of The drivers and implications of Power loans to the private sector for the utilities the main areas of infrastructural Africa are looked at in The American foot in sector have resulted in failures on delivery Edeficit in the current buzz about Ghana's energy (See page 5). Privatization, of services as well as repayment in most Africa's steady economic growth and need handing over of the areas of the energy sec- cases. On the labour, front PPS may lead for structural transformation. Nearly two- tor that will become highly profitable retrenchment and worse employment con- thirds of people in Sub-Saharan Africa do thanks to 'market based' reforms that ditions as private companies look to make not have access to electricity; without ener- American 'experts' are helping to put in more profit from their operations thereby gy there can be no industrialization. place is at the heart of the Power Africa sacrificing labour. According to International Energy Agency, project. It is about making the African ener- It is palpably clear that, Power Africa is $30 billion will be needed to reverse the sit- gy sector generally profitable for the foreign not just about helping Africa make up for uation by 2030. Africa's need is however (sic American) investor. GE alone for 10,000 MW of electricity that it needs but being turned into a feeding frenzy for example will provide nearly 5,000 MW of also a push by American companies to 'grab' Western firms seeking new areas of invest- the 10,000 MW of electricity Power Africa the African energy market and make the ment and guaranteed high profits in Africa. aims to generate on terms of cast iron guar- most of it. Africa needs to see this bigger This drive is being facilitated by Western antee of profitability in Ghana and picture and negotiate well so as not to once governments and the international financial Tanzania through mouthwatering deals. In more surrender its energy and natural institutions they control such as the World the particular case of Ghana what the coun- resource sovereignty on a silver platter to Bank. African governments and institutions try is sacrificing for an MCA grant is far foreign interests. such as NEPAD are accessories in this exer- more than the money it will receive because But this need not be the only way out cise which is seeing the takeover of public the terms of the grant require far reaching of reducing the energy deficit in Africa. utilities by transnational firms and the loss policy changes and reforms in the electrici- Examples abound in Africa on how to bal- of national control over energy policy. ty sector. The cornerstone of this is a draw- ance the structural transformation agenda Looming large in new scramble is the ing down of the public sector's role, guaran- and social service provision to the popula- USA's their 'Power Africa' initiative teeing the profitability of private generators tion through carefully worked out financing announced by President Obama in June which could threaten a whole range of of infrastructure especially energy. Ghana's 2013. According to its initiators it is 'an strategic imperatives such as rural electrifi- Akosombo Dam constructed under the innovative private sector- led initiative cation and accessible prices for most con- leadership of Kwame Nkrumah in the aimed at doubling electricity access in sub- sumers. 1960s readily comes to mind. It was built Saharan Africa'. Power Africa is therefore a Rumours of privatization of the state- with a mix of domestic financing and tolera- 'transaction-centred approach that provides owned electricity company in South Africa ble international borrowing. For many incentives to host governments, the private have attracted the ire of labour just like it years now power sales to neighbouring sector and donors.' More crucially, it is has in Ghana (see Page 12, Ghanaian Togo and Benin generated foreign anchored on the 'model of leveraging pri- workers against privatization of energy exchange revenue that helped to repay the vate investors to lead the way in energy sector). Meanwhile, South Africa says the debt. Indeed, as a public utility, the dam development..' and it has so far meant work- power cuts would continue for the next 3 was seen as being the spearhead for struc- ing with an initial 6 model countries, years. Is it not possible for interested tural transformation of Ghana's economy. Ethiopia, Ghana, Kenya, Liberia, Nigeria African countries to pool resources and Currently, Ethiopia's Grand and Tanzania to increase 'their electric build infrastructure especially in the energy Renaissance Dam is being built through power generation and making …..energy sector to meet their combined needs rather public financing-both state and individual sector reforms to pave the way for invest- than let go such strategic assets as public Ethiopians through the raising of bonds and ment'. utilities to foreign multinationals whose So far this has translated into a host of concern is only their profit margins? In any other financial instruments. The total cost American energy companies, General case, privatization of public utilities has not of the 6,000 MW dam is estimated at $4.5 Electric, Heirs Holdings, Symbion Power, generally proven to be the correct thing to billion and due for completion in 2018. The Aldwych International, Harith General do in most countries even developed ones. plan is to export 2,000 MW to Egypt and Partners, and Husk Power Systems among According to a study released just this 1,200 MW to Sudan with the target of earn- others planting the feet firmly in Africa's March by Public Services International, ing $1.6 billion a year from the exports. The energy sector in all kinds of deals supported 'Why public-private partnerships don't Dam is therefore seen as an investment that by USAID, OPIC, Millennium Challenge work; the many advantages of public alter- will not only bring returns but also catalyse Corporation, US Trade and Development native' authored by David Hall privatizing structural transformation. Agency, and US Ex-Im Bank. ( See pg 8, public utilities has been a wreck in most What all these shows is that through Role of Power Africa). which is seeing an countries. proper financial engineering, Africa can assault on public utilities through various Examples from Spain, France, India, finance its own public projects driven by its forms of privatization and take over by South Korea, the UK, Australia among oth- own vision and not under conditions driven transnational firms. ers show how public/state guarantees and by interests outside the continent.
4 AFRICAN AGENDA VOL.18 NO.2
COVER The American foot in Ghana's electricity
Despite the protestations of the government of Ghana, the planned privatization of the Electricity Company of Ghana is best understood through the prism of the USA's strategy for aiding its companies gain a strong presence in Africa's energy sector, argues * Tetteh Hormeku.
Obama, Bush, Clinton - USA and Africa plus ça change
ontrary to the public proclamations for improvement/reform without contem- Ghana's past privatisation strategies of pri- of apologists and (would-be) free- plating privatisation. Indeed, World Bank vate companies hollowing out public con- Cmarket economists, the driving officials are reported to be lukewarm, if not cerns prior to their eventual demise as pub- motivation to “privatise” Ghana's electricity concerned, about such privatisation. lic enterprises, is a requirement for the distributor, the Electricity Company of Although privatisation may have fig- Ghana government to access a Ghana (ECG), has little to do with “effi- ured in many conversations about energy in $469,300,000 grant over five years provided ciency.” Neither does it derive from the Ghana, the particular decision by the gov- under the Millennium Challenge Compact need to address the power-generation gap ernment of Ghana to hand over core and II (See Box). that lies at the basis of Ghana's electricity most lucrative components of ECG's distri- To fully appreciate the impulses woes. Influential players like the World bution network and consumer base to pri- behind this, one has to look to US invest- Bank have analysed both of these problems vate operators is effectively, a US aid condi- ment policy in Africa, and in particular to and have come up with recommendations tionality. This decision, reminiscent of the global strategies of the big corporate
AFRICAN AGENDA VOL.18 NO.2 5 COVER
energy/utilityinterestswhich have influ- is critical to attract pri- enced this policy. It is a policy and relation- vate investors, particu- ship of which Obama's Power Africa project larly for power genera- is only the latest culmination. It has been tion”. The second evolving since the first term of Bill Clinton's related point is that presidency and has involved the deploy- attraction of private ment of a wide range of mutually reinforc- investors, in the form ing policy regimes and instruments, from of “independent power WTO rules and negotiations on services to producers” (IPPs), is the African Growth and Opportunity Act. undermined critically The Bush-era Millennium Challenge by the “lack of a credi- Account (run by the Millennium Challenge ble buyer because Corporation, MCC), under which the US is ECG, the usual off- finally financing the Ghana government taker, is in poor finan- decision, is the latest in the line of these pol- cial health, and there icy regimes and instruments. It is also in are legitimate concerns fact an example of how American aid works about its ability to pay hand-in-hand with its negotiating positions power producers”. and demands in various multilateral forums, The World Bank much to the same corporate American end. and the US govern- ment would seem to Challenges share the first asser- Much has been written about the twin tion, both as related to challenges between which Ghana's electric- the scale of investment ity fortunes remain trapped, even if there is required and the need not as much consensus about the way for- to rely on private ward as may appear. One of these is the investors. need to generate extra energy beyond exist- However, while ingcapacity, and how to finance the invest- agreeing on the scale of ment needed to that end. The second is investment needed, how to ensure that the energy distributoris other analysts have able to recover revenuefrom ultimate con- pointed out that the sumers so as to pay back to the generators need and role of pri- to realise the returns on their investment. vate investment is funds Needless to say, discussions on overstated. This is especially given that the Pointing to the track record of VRA, addressing these challenges have been so-called IPPs are being offered uniquely and its known capacity to raise funds in cap- caught up in larger questions, ranging from favourable publicly-guaranteed conditions ital markets for investment, it has been the energy policy appropriate to the needs not currently available to the public genera- argued that the VRA could continue its of a developing country like Ghana to issues tor, the Volta River Authority (VRA). Not determining role in energy investment, in a of social equity in meeting this need. By the only are the IPPs being offered guaranteed more balanced and holistic energy policy. same token, the range of solutions that have rates of return on investment on the bases More so, if properly insulated against gov- been profferedhave also reflected a variety of prices individually negotiated with the ernmental incompetence, and also availed of policy preferences, ultimately, of visions ECG, but these are also being backed by the of the guaranteed rates of returns currently and approaches to development. public regulator, the Public Utilities available to the IPPs, as well as access to But the American-funded approach Regulatory Commission (PURC). pension funds ear-marked for the so-called (with the privatisation of ECG at its heart) PPP. diverges even from the analysis and solution Policy If anything, the World Bank's own proffered by the World Bank, itself no In addition, more importantly, as con- analyses as contained in the report of the enemy of utility privatisation. tained in the Ghana President's 2015 state sources of the difficulties facing the VRA Among the many issues raised in the of the nation's address, the emerging policy serve to underline this. Because of this, it World Bank's 2013 report on Ghana's ener- is for (thermal) power generation to be has been suggested, that the World Bank's gy problems, Energising Economic Growth done in “partnership with pension fund assertion derives less from a balanced con- in Ghana, two are immediately relevant. managers like the (state-owned) SSNIT sideration of an appropriate framework for First, according to the report, Ghana needs and other institutional investors”. In effect, energy policy for a developing country like “to invest over US$4billion in the next ten the envisaged private investment model Ghana, and more from own long-standing years to make up for the past investment points to the so-called the Public-Private advocacy to break up the public generator. deficit and upgrade its power sector infra- Partnerships (PPP), where in the case of The latest chapter in this advocacy, as structure”. However, “public funds of this Ghana, government contribution will be contained in the report, is the Bank's rec- magnitude are not available, which means it made by raiding publicly-owned pensions ommendation to hive-off VRA's thermal
6 AFRICAN AGENDA VOL.18 NO.2
COVER
redresses some of the tariff policy issues raised by the World Bank. As many com- mentators have pointed out, the fact that these measures were needed to attract pri- vate sector participation indicates that the latter was not necessary. For, if the Government had taken these measures ear- lier, the issueof ECG's credibility as an off- taker would not have arisen. This also undermines US govern- ment's preference for ECG's privatisation. Indeed, the wider experience with privatisa- tion of energy distribution over the past two decades or so, from the United Kingdom to Brazil, Korea, and US states like California suggest that such privatisations do not work. They have failed to generate the pro- claimed efficiencies; but on the contrary have led to the collapse in both the quality of and access to energy, whileinflicting dra- conian price rises on businesses and house- holds. On the issue of the ECG's privatisa- tion, therefore, both the more cautious World Bank and other more radical oppo- nents of the policy are on surer grounds than the US government and its apologists.
Parameters However, this world-wide experience as well as the specificities of the Ghanaian Side view of the Akosombo Dam - energy anchor of Nkrumah’s industrialisation situation and the requirements of a bal- anced consideration of the parameters of plants from its hydro-plants. In much the World Bank's analyses and recommenda- energy policy pale in comparison to the same way as the transmission assets of the tions point to difficulties facing the ECG global calculations of American energy cor- VRA were hived off to form a separate and that can be resolved through a series of porations that are driving American policy. independent power-transmission company, reforms. These include the need to reform Of the many independent power pro- a hived off thermal sector would also pro- utility tariff policy which is argued to have ducers circulating Ghana's energy skies, vide the “platform” forseparate operations. hamstrung ECG's operations and invest- (one of) the biggest so far is General This would then form the entry-point for ments; strengthening the ECG's institu- Electric, which is set to invest in the pro- private investors/operators. It would tional arrangements, including its Board; appear from the Ghana President's 2015 and above all co-operation from the duction of 1000MW of electricity.It is not state of union address that these recom- Government of Ghana for the ECG to clear whether what is being offered is the mendations are now effectively public poli- recover past and current dues from kind of investment needed to overcome cy. Government as well as private consumers. Ghana's power gap. According to trade The World Bank may see some wis- On some counts, dues owed to the ECG by unionists, the 1000MW is not even a green- dom in breaking up power generation into government institutions, including the civil field investment. Instead, it comprises the so many (uncoordinated) fragments, with service, army and police, amount to some rehabilitation and upgrade of VRA's ther- the loss thereby of opportunities for cross- 40% of ECG revenue (indeed government mal facilities -through basically buying tur- subsidy as well as for efficiencies of scale, in indebtedness to ECG amounts to 62 per- bines produced by GE. It is even less clear a sector as fraught as power-generation, in cent of debts owed it). The last time the how much of 1000MW is aimed for the a country with such steep developmental ECG tried to enforce recovery of monies Ghana market as GE explicitly seeks to challenges as Ghana. To others, it is simply owed it by some of the security agencies, position itself for the West African energy folly. their employees were harassed off. marketas a whole. Indeed, this positioning Be that as it may, it is with regard to the Interestingly, a fundamental part of the for the regional market would seem addi- “credibility of the ECG” as an off-taker that decision to privatise the ECG is a guarantee tional reason why GE's need for “reliable” the issue of privatisation is immediately by government of Ghana to pay off all of the off-takers for its energy output trumps the joined. On this the World Bank and the US ECG's dues, as well as the adoption of an fine, detailed back-and-forths of purely government may be said to diverge. The automatic tariff adjustment formula which Ghanaian national institutional imperatives.
AFRICAN AGENDA VOL.18 NO.2 7
COVER
But GE's horizons stretch even further, as can be seen from its weight inPresident Ghana’s Millennium Challenge Compact II Obama's Power Africa project. “Of the 10,000 MW of electricity Power Africa aims The Millennium Challenge Compact II agreed between US and Ghana Governments to provide, nearly 5,000 MW will be gener- in July 2014 and approved without opportunity for debate by Ghana's Parliament. ated by projects undertaken by GE”. “Arguably the greatest beneficiary of Power Under the terms of the compact, the US will give Ghana “an amount not exceeding Africa, GE stands to receive access to natu- US$469,300,000., to be disbursed in two tranches: US$279, 300, and ral resources in Ghana and Tanzania, in US$190,000,000. An additional $28, 000,0000 is granted as funding for implemen- addition to highly profitable energy deals.” tation of the compact. This is the broader context of the US government's push to privatise Ghana's Out of this amount, the Ghana government agrees to forego certain taxes to a tune ECG. Its actions may be seen as being calculated of US$ 133, 891, 250. This relates to any existing and future taxes gener- essentially to create conditions in Ghana ally applicable; and specifically, (a) tariffs, duties, import and export taxes on goods, which are suitable for the global profit cal- works or services introduced into Ghana under the programme; (b) sales tax, VAT, culations of an American energy giant. This etc. on transactions involving goods and services under the programme; (c) taxes… influence of American energy, utility and on ownership, possession or use of any property in connection with programme; (d) infrastructure companies over recent US taxes on income, profits, or gross receipts attributable to work performed in con- nection with the programme, and related social security taxes … on all natural or investment policy in Africa goes as far back legal persons performing work under the programme except citizens or permanent as Bill Clinton's first presidency. residents of Ghana. At a State Department briefing at the June 1997 Denver G7(8) summit where Among the policies to be supported by the grant are: Clinton announced the Africa trade and introduction of private sector participation in ECG and the companion Northern investment initiative that was later shaped Electricity Distribution Company; undertake regulatory strengthening and capacity into the Africa Growth and Opportunity building; support access electricity by small and medium scale enterprises for elec- Act, Larry Summers, then Deputy US tricity; “essential assistance to the Government of Ghana to “establish a sustainable, Treasury Secretary enthused about the market-oriented gas sector … so that gas can serve as the principal fuel source to opportunities opened up by "private invest- meet growing demand for electricity; efficient demand-side management meas- ment in utilities, private toll roads … pri- ures, etc. vate water supply systems, and …privatisa- tion of telecommunications infrastruc- tures". US policy as it evolved in this regard called Friends Of Services in the WTO, and Even in Clinton's time, OPIC had deployed two key instruments to promote in many attempts to find ways to by-pass $US150million to leverage American this; AGOA conditionality and direct bilat- developing country resistance. investment in natural resource sector, and eral investment funding mechanism. One result is that, over the past four US$500 million in infrastructure, in partic- Eligibility of African governments for years or so, negotiations have been on- ular, the privatisation of utilities and AGOA preferences was made conditional going for a new so-called Trade In Services telecommunications. An illustration of the on a number of provisions to seeking to Agreement (TISA), that is a new services reach of leverage was the US$316 million promote American investment in Africa. agreement among a self-selected group of approved by US Eximbank for hydrocarbon Key among these was African governments WTO members, spear-headed by the US investment in Ghana in 1995, and a further taking commitments to further open up and the EU. African and many other devel- US$23 million in gold in that country in the their services sectors under the General oping countries are excluded from these same year. Agreement on Services (GATS) negotia- negotiations, which is not to say they will George Bush's Millennium Challenge tions in the World Trade Organisation not have to face up to the consequences of Account is simply a continuation of that (WTO). Predictably, when the Doha the agreement that may emerge. process by another name. And the privati- round started, the American government In the meantime, for these countries, sation of ECG is simply one more “success- demanded that governments like Ghana the US policy of further services deregula- ful” project, in the context of creating con- and Zambia liberalised utilities and energy tion and privatisation is being pursued ditions for promoting profitable American infrastructure, among a wide range of serv- through other instruments that began to investment in Africa. Inevitably, the busi- ices. rise to even greater prominence with ness-political factions of the Ghanaian elite, The collective resistance put up by Clinton's initiative.This is the direct pro- inside, outside and around government, are African and other developing countries to motion of American private investment in scrambling to position themselves in their further services deregulation and the stag- Africa, especially through the Overseas now familiar sad role --- juniors in the com- nation of the Doha round has not helped Private Investment Corporation (OPIC). ing foreign private cannibalisation of yet American interests in this regard. The frus- Under this hundreds of millions of dollars another national asset. tration of the ambitions of companies that were targeted at energy, utility and infra- stood to gain from services liberalisation structure projects, and in countries “under- * Tetteh Hormeku is Head of Programmes, found expression in the creation of the so- taking deep market reforms”. TWN-Africa.
8 AFRICAN AGENDA VOL.18 NO.2
COVER
Obama and African leaders Power Africa: the Reality
“Power Africa's concerted efforts across the US Government are helping to direct private sector's focus on the burgeoning opportunity in Africa”- Peter Ballinger, director of Business Development, OPIC.
FACT SHEET: Power Africa on the successful engagement of the private of vast reserves of oil and gas, and the For sub-Saharan Africa the scale of sector to address Africa's energy needs. potential to develop clean geothermal, investment needed to achieve universal More than two-thirds of the popula- hydro, wind and solar energy. It will help energy access is about $15-$20 billion per tion of sub-Saharan Africa is without elec- countries develop newly-discovered year, every year, through 2030. The only tricity, and more than 85 percent of those resources responsibly, build out power gen- way to achieve that is to use public fund to living in rural areas lack access. Power eration and transmission, and expand the leverage private investment, says Power Africa will build on Africa's enormous reach of mini-grid and off-grid solutions. Africa. Ultimately, Power Africa depends power potential, including new discoveries According to the International Energy
AFRICAN AGENDA VOL.18 NO.2 9 COVER
Agency, sub-Saharan Africa will require grants and risk mitigation to advance officials to demonstrate the more than $300 billion in investment to private sector energy transactions and opportunities for investment and the achieve universal electricity access by 2030. help governments adopt and tools and resources available from the Only with greater private sector investment implement the policy, regulatory, and U.S. government and other partners to can the promise of Power Africa be realized. other reforms necessary to attract support investment. With an initial set of six partner countries in private sector investment in the energy its first phase, Power Africa will add more and power sectors. Power Africa will also leverage private than 10,000 megawatts of cleaner, more • The Overseas Private Investment sector investments, beginning with more efficient electricity generation capacity. It Corporation (OPIC) will commit up than $9 billion in initial commitments from will increase electricity access by at least 20 to $1.5 billion in financing and private sector partners to support the devel- million new households and commercial insurance to energy projects in opment of more than 8,000 megawatts of entities with on-grid, mini-grid, and off-grid sub-Saharan Africa. new electricity generation in sub-Saharan solutions. And it will enhance energy • The U.S. Export-Import Bank Africa. Examples of commitments to-date resource management capabilities, allowing (Ex-Im) will make available up to $5 include: partner countries to meet their critical ener- billion in support of U.S. exports for the • General Electric commits to help development of power projects across gy needs and achieve greater energy securi- bring online 5,000 megawatts of new, ty. sub-Saharan Africa. affordable energy through provision of Power Africa has developed an innova- • The Millennium Challenge its technologies, expertise and capital tive model based on partnerships with pri- Corporation (MCC) will invest up to in Tanzania and Ghana. vate investors and policy support to govern- $1 billion in African power systems • Heirs Holdings commits to $2.5 ments to focus and enable key projects. By through its country compacts to billion of investment and financing in leveraging U.S. strengths in energy technol- increase access and the reliability and ogy, private sector engagement, and policy sustainability of electricity supply energy, generating an additional 2,000 and regulatory reform, Power Africa also through investments in energy infra megawatts of electricity capacity over galvanizes collaboration, to make quick- structure, policy and regulatory next five years. impact interventions and drive systemic reforms and institutional capacity • Symbion Power aims to catalyze $1.8 policy reforms to facilitate future invest- building. billion in investment to support 1,500 ment • OPIC and the U.S. Trade and megawatts of new energy projects in The United States and its partners will Development Agency (USTDA) will Power Africa countries over the next work with an initial set of Power Africa part- provide up to $20 million in project five years. ner countries, including Ethiopia, Ghana, preparation, feasibility and technical • Aldwych International commits to Kenya, Liberia, Nigeria, and Tanzania. assistance grants to develop renewable developing 400 MW of clean, wind These countries have set ambitious goals in energy projects. These efforts will be power in Kenya and Tanzania - which electric power generation and are making coordinated through the U.S. - Africa will represent the first large-scale wind the utility and energy sector reforms to pave Clean Energy Finance Initiative (US- projects in each of these countries, and the way for investment and growth. Power ACEF) and supported by the recently an associated investment of $1.1 Africa will also partner with Uganda and launched U.S. - Africa Clean Energy billion. Mozambique on responsible oil and gas Development and Finance Center • Harith General Partners commits to resources management. (CEDFC) in Johannesburg, South $70 million in investment for clean, Power Africa will bring to bear a wide Africa. wind energy in Kenya and $500 million range of U.S. government tools to support • The U.S. African Development across the African power sector via a investment in Africa's energy sector. From Foundation (USADF) will launch a new fund. policy and regulatory best practices, to pre- $2 million Off-Grid Energy Challenge • Husk Power Systems will seek to feasibility support and capacity building, to to provide grants of up to $100,000 to complete installation of 200 long-term financing, insurance, guarantees, African-owned and operated decentralized biomass-based mini credit enhancements and technical assis- enterprises to develop or expand the power plants in Tanzania - providing tance Power Africa will provide coordinated use of proven technologies for off-grid affordable lighting for 60,000 support to help African partners expand electricity benefitting rural and households. their generation capacity and access. marginal populations. The United States will commit more • In 2014, OPIC and USAID will jointly • The African Finance Corporation than $7 billion in financial support over the host an African energy and intends to invest $250 million in the next five years to this effort, including: infrastructure investment conference. power sectors of Ghana, Kenya and • The U.S. Agency for International The conference will bring investors, Nigeria, catalyzing $1 billion in Development (USAID) will provide developers, and companies together investment in sub-Saharan Africa $285 million in technical assistance, with U.S. and African government energy projects.
10 AFRICAN AGENDA VOL.18 NO.2 COVER The historical energy planning malaise
ince 1980 to date, there have been resources to match economic develop- environment in the power sector more than five episodic power ment. transformation process. Scrises, usually involving extensive The next attempt to formulate an load sharing lasting a year or more. These overall framework for the development of Another significant reform was the episodic crises are usually occasioned by the Energy Sector was in late 1980s, fol- National Energy Plan (SNEP) 2006 - climatic effects, resulting in cyclical poor lowing a prolonged and disastrous 2020. The goal of SNEP was to establish rain fall in the catchment area of the Volta drought that induced unprecedented an effective national infrastructure for River Basin that provides the water for all bushfires, through the length and breadth energy planning; and create a consensus the hydroelectric reservoirs in the coun- of the country from 1982 -1983. The reference framework for the development try. National Energy Board (NEB), was estab- of the energy sector. The SNEP had ten At Independence, the role of energy lished in the mid-1980s to undertake broad objectives. in our nation building was strongly recog- energy planning and policy development In 2010, the National Energy Plan nized and mainstreamed into policy plan- for the country. In 1990, it outlined an was rehashed to produce the Energy ning. The government of the First Action Plan covering five broad areas. Sector Strategy and Development Plan. It Republic produced a seven year national This plan was short lived as its implemen- outlined Programmes and projects with development plan which had a compre- tation momentum waned with time fol- indicative funding sources, timelines and hensive energy plan as its backbone. The lowing the dissolution of the National verifiable indicators to facilitate monitor- plan was developed on the background of Energy Board in 1991. It had, however, ing and evaluation of projects. An exami- mapped inventory of our energy facilitated the construction of the first nation of this plan shows that timelines for resources: minerals, hydrocarbons and thermal plant, the Tema Thermal Power delivery of many these projects have sig- rivers and their hydroelectricity potential. Plant (TT1PP) of 300 MW in 1990. In nificantly slipped. The implementation of this plan gave the absence of the Energy Board, ad-hoc Providing efficient and reliable elec- birth to the Akosombo and Kpong dams and stop-gap actions sustained the policy tricity on sustainable basis requires careful and the development of the Bui dam direction of the country. planning given the large scale, long lead which was disrupted by the 1966 Coup. Again in 1994, Cabinet took a deci- times, and extensive preparation required The Akosombo dam was planned and sion to reform the Power Sector and con- to build power infrastructure. Admittedly, executed to provide generation capacity sequently the Government in 1995 initiat- ministerial capability for long-term power far beyond Ghana's electricity demand at ed a programme to transform the power sector planning in Ghana has been prob- the time. sector to provide adequate, reliable and lematic. The current power shortages Expansion of the economy over the affordable supply of power to support its were to a large extent envisaged but years, with rapid expansion in demand for socio-economic development agenda. actions to avert or mitigate them have electricity, in particular, without matching The Power Sector Reform Programme been rather slow. While the Ministry of investment in energy infrastructure in (PSRP) culminated in the recommenda- Energy fully appreciated the looming cri- subsequent years led to demand for ener- tion of a number of reform actions that sis, particularly the impact of poor rains gy outstripping supply. Current data included: on the three hydro facilities, its planned shows that the economy is growing at an i. the restructuring of the distribution mitigating measures such as the fast track- average of 5% per annum. If electricity of electricity in the country into five ing of the Kpone 225MW plant and the supply is to meet this growth, it will concessions in which the designated deployment of the KarPower Ship from require new capacity addition of about distribution utility would be Turkey were constrained largely by fund- 200 MW each year to catch up with obligated to serve all customers ing. increasing demand in the medium to long under terms and conditions that term. would be regulated; and The derailment of Kwame ii. the establishment of the Energy * Extracts from a presentation titled Nkrumah's Seven year Development plan Commission (EC) in 1997, under the 'Ghana's economic development challenge: brought an end to the country's concerted Energy Commission Act 541, to the energy factor' by Prof. Thomas Akabzaa, efforts to sustainably develop our energy provide the requisite regulatory chief director, Ministry of Petroleum, Ghana.
AFRICAN AGENDA VOL.18 NO.2 11 COVER
Ghanaian workers against privatisation of energy sector by Linus Atarah
he country is experiencing its worst struggle on a different front largely ignored producer and GRIDCO, its sister power energy crisis in over a decade which by organisers of the demonstration but transmission company.Their position is Tis paralysing the economy and ruin- which many consider as being at the heart also supported by the Trade Union ing livelihoods. Two public demonstrations of the energy crisis. Congress (TUC) and other organisations. were held late February in Accra and The workers have come out strongly Privatising the ECG is the outcome of Kumasi, Ghana's two main cities, over elec- against government's plan to privatise the negotiations between the government of tricity load-shedding which gives con- Electricity Company of Ghana (ECG), the Ghana and the Millennium Challenge sumers 12 hours electricity and 24 hours state-owned power distribution utility. Corporation, an aid agency of the US gov- total blackout. Spearheading the struggle are the Public ernment. Under the agreement the Ghana But while the opposition-led demon- Utility Workers Union (PUWU) and the government will access the Second strators were thumping the streets with Public Service Workers Union (PSWU) - Millennium Challenge Account (MCA) for anti-government placards and slogans, made up of workers of ECG, the Volta River a grant of 498 million dollars to restructure organised labour in the country took up the Authority (VRA) - the state-owned power the energy sector with the condition that it
12 AFRICAN AGENDA VOL.18 NO.2
COVER
allows private sector participation in the as hairdressers, seamstresses, carpenters, energy sector. cold store operators and internet café own- But in a statement jointly sent out by ers face imminent bankruptcy as inadequate “The fundamental problem in the workers in January this year, they electricity supply which is ruining their Ghana's energy sector is a describe the government's approach to the businesses. Economic activity runs the risk energy crisis which relies on restructuring of grinding to a halt. It is a source of worry shortfall in generation and the ECG as the key measure as wrong-head- for Director- General of the Ghana Revenue that should be tackled as a ed. Authority, George Blankson, who, in Instead, the government has been told February, told the media that the govern- matter of urgency. The pro- to address the power generation deficit ment's tax collector is losing revenue posed approach under the which is the major cause of the energy crisis because businesses are unable to retain in the country. workers due to the energy crisis which has Compact to solve the chal- “The fundamental problem in Ghana's brought production in the manufacturing lenges facing the power sector energy sector is a shortfall in generation and sector to a near halt. that should be tackled as a matter of Being the first point of contact between that focuses on the ECG turn- urgency. The proposed approach under the the public and the electricity sector, ordi- around as the key is not the Compact to solve the challenges facing the nary consumers consider the ECG the sym- power sector that focuses on the ECG turn- bol of all their frustrations in the electricity best approach.” around as the key is not the best approach”, supply. Electricity supply or rather the lack the workers point out. of it is the single most important talking In that kind of atmosphere, the govern- point around the country. Indeed some ment is trying to cash in and manipulate Economy political analysts predict that it could be a public opinion by blaming all inadequate The ECG has become the lightning game changer in next year's presidential and electricity supplies on the managerial defi- conductor for public anger and frustrations general elections in the two-way contest ciencies of ECG but the workers have dis- in the current energy crisis which is causing between the ruling National Democratic missed that as wrong diagnosis and instead hardships and strangling the economy fur- Congress (NDC) party and opposition place a firm finger on the inability to gener- ther. Small-scale enterprise operators such New Patriotic Party (NPP). ate enough power to meet rising demand.
Ghana’s new hydro dam, Bui Dam - built with Chinese aid
AFRICAN AGENDA VOL.18 NO.2 13 COVER
The Minister of Power, Dr. Kwabena were affecting everybody. The World Bank workers. Donkor did concede that the primary cause had to intervene and make the government As Dr. Yao Graham, Co-ordinator of is the shortfall in generation when he pay the arrears owed by Valco to VRA. Third World Network-Africa (TWN- informed the media in February that it is This backdrop provides substance to Africa) and a keen follower of Ghana's ener- what “has led to the supply inadequacies the workers' argument that focusing on the gy policies, put it, “having undermined the leading to the current load shedding that we ECG as the major cause of irregular power ECG the government with support from are all experiencing”. supply and therefore privatising it as a the support of the opposition NPP (the New Patriotic Party) in Parliament now Ghana's electricity demand increases measure to solve the energy crisis is a turns round to use its difficulties as justifica- by 12 percent annually, the highest in sub- wrong-headed approach. If the government Saharan Africa, says William Amuna, CEO tion for privatizing it under the Ghana is seeking new source of funding to restruc- of GRIDCO. Total demand currently MCA Energy project”, he says. ture the operations of the ECG the workers stands at 2100 MW. But against this total And the workers ask whether plans to advise that such funding can be sourced demand, available generation supply is just privatize the ECG could be likened to the 1600 MW. According to Amuna, the coun- domestically instead of always turning to proverbial “giving the dog a bad name and try's generation capacity stands at a total of external assistance. For instance, listing to hang it”. 2,800 MW from all the mix of hydro and ECG on the Ghana Stock Exchange, the One of the conditions for the MCA thermal plants installed, but not all of that workers point out, could raise the needed grant is that the ECG is cleansed of debts in order to make it attractive for private invest- can be brought into stream because for one capital, citing the example of state-owned ment and so the government has actually thing, an unexpectedly low rainfall this year petroleum products retailer, GOIL, which agreed to clear all the debts it owes ECG. has crippled power production from all the has taken that path and is doing well. “So perversely while the government three dams which generate hydropower. In any case, who is the cause of ECG's will not pay its bills to keep ECG alive it will For another thing, the thermal plants fired current final crisis? The answer lies squarely with the government, according to the urgently do so to prepare it for privatiza- by gas are also not generating at maximum tion”, comments Graham. capacity, and that is largely blamed on workers. “Forty percent of ECG monthly bills go to the government which doesn't “Even more bizarrely”, he continues, Nigeria reneging on its legal obligation to “after years of policies and practices that pay up”, they say. supply Ghana with 120 standard cubic feet have weakened not only the ECG but also of gas through the West African Gas the VRA it will ensure the profits of the pri- Pipeline. That alone has chopped off 450 Indebtedness vate firms who will take ECG's assets and MW from the total power supply. The state is the biggest consumer of the independent power producers (IPPs) electricity but does not pay its bills. As of who will sell power through ECG”. Policy October 2014, figures given by the workers Equally bizarre was how the Executive Consumption would rise to 2,400MW indicate that government indebtedness to branch rail-roaded the Legislature into if one throws in the power consumption of the ECG was GHC 1 247,597,280.51, the approving the MCA Agreement in just two aluminium smelter Valco, formerly owned equivalent of US$375 million, constituting days without serious interparty debate, by American aluminium giant, Kaiser more than 62 per cent of the company's bypassing Parliamentary Procedure and Aluminium- a company which looms large debts. By failing to pay its bills to that tune, undermining the oversight role of the legis- in the history of Ghana's controversial ener- it is the government which is gas-choking lature. gy policy. life out of ECG causing a knock-on effect on When it comes to offering state-owned Indeed Ghana's energy policy has the power delivery chain. The ECG has to utilities to foreign companies, Ghana has exhibited a number of features. Over the buy power from VRA and Independent been down that road before. A few years Power Producers (IPP) to distribute to ago, the government entered into a similar last past 20 years for example, the VRA household consumers and industries but PPP arrangement with Aqua Vitens Rand (Volta River Authority) has been progres- who in turn, due to debts owed them by Ltd, (AVRL) to manage the country's sively weakened by a combination of gov- ECG can neither maintain their plants and Ghana Water Company, but that ended ernment policy as well as particular prac- equipment nor purchase new ones in order acrimoniously and the government had to tices and also these things has affected the to increase generation.The ability of ECG back off renewing the contract and repos- Electricity Company of Ghana. These poli- to even replace their transformers is under- sessing GWC in 2011 after pressure from cies for example have included the selective mined, thus giving rise to the erratic power workers andcivil society organisations who suppression of tariffs, which has meant that supply - the “transmission capacity con- complained of the poor performance of the generator particularly VRA has not been straints” that the workers have already com- AVRL. able to get a proper rate of return. plained about in their letter. As the Utility Workers Union oppose the privatisation of ECG, the episode of Worst of all, in 2006 after the govern- “It is our firm position that if the chal- GWC and AVRL is probably still fresh in ment bought Valco which by then had lenge of power supply is not first addressed, their minds. However, the trouble is that as become an obsolete plant and having the much touted private sector participa- the workers put aside the usual bread and tion (PSP) will only bring about increased bought it the government had to use it and butter issues associated with trade union- VRA was made to give Valco power at a tariffs and accumulation of profits for the ism to pick up a fight over a valuable nation- third of the cost of generation. This created private operator whose ultimate objective is al asset, little voice of support has come such a crisis for VRA that it became a threat not the betterment of the national economy from similar organised groups in the coun- to the whole economy because outages and the Ghanaian society”, according to the try.
14 AFRICAN AGENDA VOL.18 NO.2
DEVELOPMENT Capital flows, tax haven and offshore secrecy system
The discussion of the Mbeki Panel report in the last issue of African Agenda, in both the Editorial and the article by Tetteh Hormeku, rightly drew attention to the need to look beyond the issue of 'illegal flows'. While the Panel's concern with 'money illegally earned, transferred or used' is important, there are much wider implications raised by the report, contends *Sol Picciotto.
Glencore headquarters
he Mbeki report rightly included a standard practices, which are not only haven and offshore financial secrecy system, discussion of tax losses from tech- allowed but encouraged by current interna- and they are still its main users. For exam- Tniques used by multinational com- tional tax rules. ple, a report by Action Aid in 2011 showed panies (MNCs), but these techniques were It also pointed to the role played by that 98 of the 100 largest companies regis- described as involving 'aggressive tax prac- 'financial secrecy jurisdictions and/or tax tered on the London Stock Exchange (the tices', and 'abusive transfer pricing'. These havens', as an enabling factor. In fact, it was FTSE 100) between them had over 34,000 descriptions misstate the nature of the MNCs themselves, together with wealthy affiliates, a third located in tax havens. The issue, since MNC tax avoidance employs families, who devised and developed the tax heaviest user was the banking sector, which
AFRICAN AGENDA VOL.18 NO.2 15
DEVELOPMENT especially favours the Cayman Islands “Despite the strong political ritories, treated mainly as sources of extrac- (where Barclays alone had 174 companies). tion of primary products, could sustain only In effect, the perfectly legal and indeed nor- pressures, the policy proposals minimal levels of public spending, even mal tax avoidance practices of MNCs oper- which emerge from global gov- after political independence. This has been ate in collusion with the wider spectrum of a major cause of the deadly cycle of depend- corruption and criminality sustained by the ernance institutions envisage ency and underdevelopment. offshore system. only weak reforms. A major Even more importantly, systems of tax- ation and public spending are central to the Tax Justice Campaigns factor of course is the enor- forms of production and reproduction of Hence, the tax justice campaign which mous lobbying effort mounted capitalism. The growth of revenues has spread rapidly both in Africa and depends on acceptance of the legitimacy of around the world in the last 15 years, has by the MNCs and the large taxation, which powered capitalist growth focused on this tax haven and offshore accounting, law and corporate in the last century, underpinned by the lib- secrecy system. Our main demands have eral egalitarian principle that all citizens been: service firms which support should contribute in proportion to their to combat secrecy: a comprehensive them, which clearly have a lot income to the costs of government. Income system for all countries to exchange tax applied initially only to the wealthy, but information automatically for tax to lose.” as top tax rates were hiked in wartime, eva- purposes, and to obtain necessary sion grew, and the rich found ways to hide information by overriding tax and closed community of expertise, which their wealth in trusts and tax havens. professional secrecy, together with includes not only the well-paid practitioners The income tax was rescued by estab- registration of the actual owners in private firms, but also many academics lishing pay-as-you-earn (PAYE), which pro- (beneficial ownership) of companies, and government officials, who participate in vided effective collection in the era of mass trust and other legal entities; specialist conferences and other forms of industrial employment. Taxing income knowledge production. These processes from capital poses much greater obstacles, for MNC taxation: reform of interna- tend to produce a generally accepted ortho- as it's difficult even to define income, let tional tax rules to enable them to be doxy, rejecting alternative approaches. alone deduct tax at source. Since the main treated in accordance with the Although concerned with technical tax burden fell on wage and salary earners, economic reality that they function as expertise, such communities are inevitably it's not surprising that developed countries unitary enterprises. dominated by the interests and perspectives have faced fiscal crises since the end of the As a result of worldwide political pres- of MNCs, which can apply enormous Keynesian boom years and of Fordist mass sures, especially following the financial cri- resources to these activities. This under- employment, while underdeveloped coun- sis of 2008-9, the G20 world leaders took up mines the independence of academics, who tries found it hard to expand their tax base. both these issues, although they handed the often become dependent on corporate work of formulating policy proposals to the funding, and of officials, who frequently International Tax Avoidance technical experts of the OECD, the rich take the revolving door which enables them Economic globalisation has also under- countries' club. to join private firms, and (less often) move- mined taxation. International tax rules were ment in the other direction. Many of the top formulated in the 1920s, under the League Lobbying and Policy private sector specialists on issues such as of Nations, when international capital flows Communities transfer pricing have spent time working for mainly took the form of portfolio invest- This is not the place to discuss these OECD governments, and indeed in the ment, through bonds or loans. Hence, the issues in any detail. However, it is important OECD itself. right to tax business profits was assigned to for campaigners to continue to monitor the the country where the business was located, development and implementation of these Why Tax is Central while the investment income (interest, divi- measures by the OECD. Our experience Taxation is often thought of in terms of dends) should be taxed by the country of has been that, despite the strong political its distributional effects, as an instrument residence of the investor. pressures, the policy proposals which which can perhaps be used to reduce However, it was also understood that emerge from global governance institutions inequality and improve social welfare or MNCs were different, since they had envisage only weak reforms. A major factor protect human rights. On a wider view, branches or affiliates in various countries, of course is the enormous lobbying effort taxes are the basis for collective social provi- and it could be hard to identify how much mounted by the MNCs and the large sion of public goods, ranging from transport profit was made in each country and the accounting, law and corporate service firms networks to education, from investment in proper level of investment returns. Tax which support them, which clearly have a basic research to social and public security. authorities were given powers to adjust the lot to lose. During the 20th century tax enabled the accounts of entities forming part of a corpo- Another reason is the technical com- emergence of the welfare-warfare state in rate group, to ensure a fair allocation. Some plexity of the rules, resulting from the the capitalist metropoles, growing from did this by starting from the profits of the investment of intellectual and cultural capi- under 10% to an average of as much as 40% MNC as a whole and apportioning them tal by the specialists who devised and elabo- of GDP. In contrast, of course, the distorted according to relevant factors, such as assets rate them. International tax advisers form a economies of colonised and dependent ter- and employees. However, following the
16 AFRICAN AGENDA VOL.18 NO.2
DEVELOPMENT
“Financial liberalisation in turn led to the astronomic growth of the 'offshore' finan- cial system, which provides MNCs with privileged access to low-cost finance, while also channelling and sheltering the ill-gotten gains of corrupt politicians, arms dealers, and tax-dodgers.”
factors, but also of government regulation. This enables them to lobby for favourable terms, for example tax incentives. Although it is widely recognised that these are beggar- thy-neighbour policies which in the end weaken all states, they are very hard to com- bat. They range from the tax exemptions and holidays offered to mining companies by poor states, to the special treatment of financial holding companies revealed by the Luxembourg Leaks. It should be clear that the only way to Former Italian PM Berlusconi strengthen national sovereignty, in the face of multinational corporate power, is report for the League of Nations in 1933 by expansion of MNCs from the late 1950s through international coordination and Mitchell Carroll, a US lawyer, the model tax was largely financed from these untaxed cooperation. Yet governments find this treaty specified that the accounts of the retained foreign earnings. hard to achieve, preferring to give priority affiliates of a corporate group could be The ability of MNCs to transfer enor- to short-term national interests. Politicians adjusted by treating them as if they were mous sums of money internationally, and are also often closely bound to business independent entities. their large pools of liquid capital, fuelled the interests, either overtly (e.g. Berlusconi, This 'separate entity' or 'arm's length' emergence of the Eurodollar market, and Shinawatra), or through various forms of principle created a fundamental flaw, which undermined the fixed exchange rate system corruption. There is clearly an important has been increasingly exploited by MNCs. set up by Bretton Woods. Financial liberali- role for civil society activists, who in the last In the 1950s they began to set up affiliates sation in turn led to the astronomic growth couple of decades have begun to match the in convenient countries, which developed of the 'offshore' financial system, which pro- ability of the big business bosses and their as tax havens, such as Panama, the Bahamas vides MNCs with privileged access to low- professional advisers in navigating the net- and the Netherlands Antilles. Such entities cost finance, while also channelling and works of global governance. One of the could be used to reduce the taxable profits sheltering the ill-gotten gains of corrupt most important of these is the tax justice of operating affiliates in source countries, by politicians, arms dealers, and tax-dodgers. movement. charging interest on loans, fees for services Tax is only one example, although an or royalties for intellectual property rights, important one, of the way that the power of Sol Picciotto is emeritus professor of Lancaster since such payments are usually tax MNCs has grown through their interac- University (UK), has been a Senior Adviser of deductible. If these profits are held offshore tions with states. A major competitive the Tax Justice Network since 2003, is a mem- they are generally not tax as income of the advantage of MNCs is their ability to take ber of the Advisory Group of the International parent company either, but they are avail- advantage of differences between states, not Centre for Tax and Development, and is the able for reinvestment. The enormous only of geographical, economic and social coordinator of the BEPS Monitoring Group.
AFRICAN AGENDA VOL.18 NO.2 17 DEVELOPMENT Is Africa's 'resource nationalism' just big business as usual?
Governments, most prominently those of Sub-Saharan countries, have argued for huge tax hikes on mining, oil and gas contracts in the name of the national interest. But beyond the rhetoric, resource nationalism is a cover for a business-as-usual bias, argues *John Childs.
ig mining firms in the Democratic This is so-called “resource national- The trend is widely reported as the Republic of Congo are worried. For ism” in action, and the DRC is far from enemy of trade, investment and energy Bthe past decade they've made good alone in seeking greater economic control security alike. In the UK, for example, the money from the country's huge reserves of of its natural resources. The state is back, Telegraph called it a “spectre” and govern- cobalt, diamonds, gold and copper, and the theory goes, and it's taking on the multi- ment economists have labelled it as both a now the government wants to grab more of national. From Scotland to Namibia, “threat” and “anti-competitive”. the action: a document leaked to Zambia to Ecuador, resource rich nations On the other side of the coin, govern- Bloomberg reveals plans to raise royalties throughout the world are rhetorically ments argue they are simply ensuring for- and profit taxes, and increase the state's reclaiming gas, oil and minerals as their eign businesses don't unfairly benefit from share in any new ventures. own. resource extraction. Take Zambia, for
18 AFRICAN AGENDA VOL.18 NO.2 DEVELOPMENT
instance. The landlocked African nation is a nationalism is less the enemy of big busi- afield and deeper underground. Mines such major copper exporter yet most of the pop- ness than a cover for a business-as-usual as one in Mponeng, South Africa, can reach ulation still lives below the poverty line. bias towards the interests of neo-liberal, for- nearly 4km deep and have more than 230 After the government looked to crack down eign investment. miles of tunnels, all to mine a 30-inch wide on tax avoidance by multinational mining In Tanzania for example, recent dis- seam of ore. This should complicate our firms, one senior politician defended the coveries off the coast of East Africa have led understanding of the idea of resource move: “The situation is win on one side - to predictions that the region will become nationalism. How, for example, do we make only the shareholders are winning; the peo- one of the world's biggest exporters of natu- sense of competing, contemporary claims ple of Zambia are still in abject poverty”. ral gas. As a result, “nationalist” laws are cur- to the deep sea off Namibia or Papua New The question of whether resource rently being drafted which begin: “Natural Guinea? Similarly, questions over resources nationalism really is something to be feared resources found in Tanzania belong to the and sovereignty might even make us ask is therefore a whole lot more complicated [Tanzanian] people”. who owns the moon? Finally, geopolitical debates over extraction rights in the Arctic provide fur- “Governments, most promi- ther worrying evidence of the ways in which nently those of Sub-Saharan national and private interests are always in competition. In all cases, the physical and countries like Ghana, Sierra metaphorical boundaries of the nation state Leone, Guinea or Tanzania, have to be questioned as law tries to keep pace with technological advancement. have argued for huge tax hikes on mining, oil and gas con- It isn't fair for everyone within a nation tracts in the name of the Whatever the context, resource nation- “national interest”. However, alism makes its claims by promising a coun- try's citizens “fair” and equally-distributed move beyond the rhetorical access to its resources. However this fails to strength of such statements account for politics. Mining and oil con- tracts are often negotiated in secret. and resource nationalism is Protests against these deals can be sup- less the enemy of big business pressed through state sanctioned force, and “national” policies often marginalise groups than a cover for a b.usiness-as- based on account of gender, race or sexuali- usual bias towards the inter- ty. It is precisely this sort of identity politics which sparked violence over sovereignty in ests of neo-liberal, foreign Mtwara, Tanzania, where the region's pop- investment.” ulation claims that they are marginalised from a policy that favours the urban elite hundreds of miles away. The “national interest” never means At the same time, however, a recently the same thing to everyone within a nation: signed memorandum of understanding different people place different values on between the UK and Tanzania promises, nature and its resources. Brazil's recent according to former foreign secretary draft bill aiming to “nationalise” the William Hague, to “offer significant oppor- Amazon is a good example - made at a gov- tunities for British businesses in the energy ernmental level, it doesn't necessarily con- sector”. Indeed, BG Group, as well as sider the views of indigenous communities. Norway's Statoil and other big players have And the idea of the “national interest” than it would first seem, for the three fol- already been granted licences. The state is can't adequately describe this complexity. lowing reasons. striking back in rhetoric only; it is business From “African” oil to “Scottish” gas, those that still holds the real power. that fear “resource nationalism” would do No nationalism Like a game of Risk, our idea of nation- well to remember this and not overly sim- Governments, most prominently those al control tends to be fixated on owning plify the debate. of Sub-Saharan countries like Ghana, Sierra resources found within neatly defined bor- Leone, Guinea or Tanzania, have argued for ders. In today's world however, this doesn't * John Childs is a lecturer in International huge tax hikes on mining, oil and gas con- make sense. Development and Natural Resources at tracts in the name of the “national interest”. Better technology, modelling and visu- Lancaster University. This article is from However, move beyond the rhetorical alisation techniques means extraction fron- Pambazuka but was previously published by strength of such statements and resource tiers are constantly being moved further The Conversation.
AFRICAN AGENDA VOL.18 NO.2 19
DEVELOPMENT Finance like a cancer grows
Is there a new “ethics” in the financial sector?, asks *Roberto Savio.
World Bank offices, Washington DC
t is astonishing that every week we see sis, with high unemployment, precarious by the bursting of the sovereign bonds bub- action being taken in various parts of jobs and an unprecedented growth of ble in Europe. It is calculated that we will Ithe world against the financial sector, inequality, which can all be attributed, need to wait until at least 2020 to be able to without any noticeable reaction of public largely, to speculative finance. go back to the levels of 2008 - so we are talk- opinion. This all began in 2008 with the mort- ing of a lost decade. It is astonishing because at the same gage crisis and the bursting of the deriva- To bail out the banks, the world has time we are experiencing a very serious cri- tives bubble in the United States, followed collectively spent around US$4 trillion of
20 AFRICAN AGENDA VOL.18 NO.2
DEVELOPMENT taxpayers' money. Just to make the point, “It is worth noting that, until witnessed or have first-hand knowledge of Spain has dedicated more than its annual wrongdoing in their workplace." budget on education and health to bail out now, the cumulative fines The report went on to say that "nearly the banking sector ... and the saga contin- inflicted by the US government one in five respondents feel financial servic- ues. es professionals must sometimes engage in Last week, five major banks agreed to on just five major banks since unethical or illegal activity to be successful pay $5.6 billion to the US authorities 2008 amount to a quarter of a in the current financial environment" and in because of their manipulations in the cur- any case, nearly half of the high-income rency market. The banks are household trillion dollars. No one has yet professionals consider authorities to be names: the American JPMorgan Chase and gone to jail - fines have been "ineffective in detecting, investigating and Citigroup, the British Barclays and the prosecuting securities violations." Royal Bank of Scotland, and the Swiss UBS. paid and the question closed.” A quarter of respondents stated that if In the case of UBS, the US Department they saw that there was no chance of being of Justice took the unusual step of tearing tions. arrested for insider trading to earn a guaran- up a non-prosecution agreement it had "The magnitude of falsity, conserva- teed $10 million, they would do so. And reached earlier, saying that it had taken that tively measured, is enormous," she wrote in nearly one-third "believe compensation step because of the bank's repeated her scathing decision. structures or bonus plans in place at their offences. Nomura Holdings and the Royal Bank companies could incentivise employees to "UBS has a "rap sheet" that cannot be of Scotland were just two of 18 banks that compromise ethics or violate the law." ignored," said Assistant US Attorney had been accused of manipulating the hous- It should also be noted that the majori- General Leslie Caldwell. ing market. The other 16 settled out of ty were worried their employer "would like- This is a significant departure from the court to pay nearly 18 billion dollars in ly to retaliate if they reported wrongdoing Justice Department's guidelines issued in penalties and avoid having their misdeeds in the workplace." 2008, according to which collateral conse- aired in public. So, the bonus that goes to those in the quences have to be taken into account Nomura Holdings and Royal Bank of financial sector every year practically when indicting financial institutions. Scotland refused any settlement and amounts to a bribe for silence on miscon- "The collateral consequences consider- instead went to court against the US gov- duct. At the same time, we have learned that ation is designed to address the risk that a ernment, arguing that it was the housing in Guatemala, the Governor of the Central particular criminal charge might inflict dis- crash which caused their mortgage bonds to Bank has been arrested for embezzling $10 proportionate harm to shareholders, pen- collapse. Judge Cote, however, wrote that it million. sion holders and employees who are not was precisely the banks' criminal behaviour Of course, everything is a question of even alleged to be culpable or to have prof- which had exacerbated the collapse in the scale... but in sociology there is a mecha- ited potentially from wrongdoing," said mortgage market. nism called "demonstration effect". The Mark Filip, the Justice Department official It is worth noting that, until now, the example of Wall Street and the City will who wrote the 2008 memo. cumulative fines inflicted by the US govern- increasingly seep down once a new "ethic" is Referring to the case of accounting ment on just five major banks since 2008 in place. It will propagate if it is not stopped giant Arthur Andersen, which certified as amount to a quarter of a trillion dollars. No ... and this is not happening. valid the accounts of the Enron energy one has yet gone to jail - fines have been A final note. In the same week (how company that went into bankruptcy for fak- paid and the question closed. many things have happened in such a short ing its budget, Filip said that "Arthur Now the question: is all this due to the space of time), the Federal Trade Andersen was ultimately never convicted of misconduct of a few greedy managers or is it Commission of Columbia accused four anything, but the mere act of indicting it due to the new "ethics" of the financial sec- respected cancer charities of misusing destroyed one of the cornerstones of the tor? donations worth millions of dollars. Midwest's economy." By the way, let us not forget that it was One of them, the Cancer Fund of This was in fact a declaration of revealed recently that 25 hedge fund man- America, declared that it spent 100 percent impunity, which did not escape the man- agers took close to $14 billion only last year of its proceeds on hospice care, transport- agers of the financial system, under the and that the highest paid manager took for ing patients to chemotherapy sessions and telling title of "Too Big to Fail". himself the unthinkable amount of $1.3 bil- buying medication for children. Two weeks ago, a judge from the lion, equal to the combined average salaries The Federal Trade Commission found Federal District Court of Manhattan, of 200,000 US professionals. in fact that less than 3% of donations was Denise L. Cote, condemned two major Well, just a week ago, the respected spent on cancer patients. banks - the Japanese Nomura Holdings and University of Notre Dame was reported as The "new ethic" is in reality a cancer, the British Royal Bank of Scotland - for mis- having published a startling report, based and it is metastasising rapidly. - Third leading two mortgage public institutions, on a survey of more than 1,200 hedge fund World Network Features. Fannie Mae [Federal National Mortgage professionals, investment bankers, traders, Association] and Freddie Mac [Federal and portfolio managers from the United *Roberto Savio is founder and president emer- Home Loan Mortgage Corporation], by States and the United Kingdom, in which itus of the Inter Press Service (IPS) news selling them mortgage bonds that con- about one-third of those earning more than agency and publisher of Other News. The arti- tained countless errors and misrepresenta- 500,000 dollars a year said that they "have cle is from Third World Network Features.
AFRICAN AGENDA VOL.18 NO.2 21
INTERNATIONAL
Leaders of the Non-Aligned Movement The Bandung diamond jubilee: time for a new world order April 18, 2015 marked 60 years since that historic day that began South-South Afro-Asian collaboration for decolonisation, development and freedom. As we commemorate the Diamond Jubilee of the Bandung Conference, it is important to build more hope in the ongoing quest for a new inclusive world, writes *Mammo Muchie.
rom Africa the following countries One of the key outcomes from the and purpose was primarily driven to bring joined the Bandung Conference: Bandung Conference was the Afro-Asian about a total post-colonial condition by FEthiopia, Egypt, Ghana (then called hope to open the opportunity for the removing the penetrability of the African, Gold Coast), Liberia, Libya and Sudan. Global South representing largely Asian, Asian, Oceania and Latin American peoples From Asia the countries that played a signif- African, Latin American and Oceania to by opening the non-alignment route to icant role were: Indonesia, Burma, China, have a voice in world affairs. The creation of independence and freedom. The objective India, Pakistan and Sri Lanka. The Bandung a non-alignment space to seek freedom was to try to identify and pursue ways and Conference inspired the creation of the from joining either the USA or the USSR strategies of development along a non-aligned movement and the Third camp was a clear objective. The choice to decolonising trajectory, free from the dicta- World by deciding not to side with either pursue agency to realise full independence tion of either the USA dominated world the Western powers lead by the USA or the from all forms of colonialism, which much order or the attempt by the ex-USSR Eastern bloc, the former USSR during the of Africa was still in, and the urgent need to through the Cold War to create an alterna- Cold War. The conference also pledged not deal with the risk of neo-colonialism by the tive non-capitalist-driven world order. to rely on Western foreign aid but on build- recognition and appreciation to strengthen Though in many ways the 1955 confer- ing strong economic relations between Asia the formally independent Asian countries ence in Bandung, Indonesia was a turning and Africa on the principle of mutual bene- to remain free appeared to have motivated point for attempting to construct a post- fit and friendship. the Bandung gathering. The Bandung spirit colonial international political order; we
22 AFRICAN AGENDA VOL.18 NO.2
INTERNATIONAL still live in a world where imperialism, colo- ference's 60 years' journey and experience. “Now it is time to re-think, re- nialism, war, exploitation, injustice and The Global South can use the Bandung unfairness continue to complicate the con- Conference to develop a distinct vision of educate ourselves about the temporary world political economic space. new international world re-order by remov- Bandung Conference and the What was loudly voiced at Bandung was the ing the current unsettling disorder for good anti-colonial spirit and the aspiration for that is leading the world astray. future in order to move from building a world order that appreciates It is pertinent to recognise that though the current world order and rather than ignores the Global South and the Bandung Conference had also brought the newly growing numbers of independent about far-reaching impacts for the Global disorder to a new international countries from colonialism still remain South, a completed post-colonial reality sustainable world order and largely unfulfilled. Instead of decoloniality and world re-order still remain to be erected prevailing we have neo-colonialism pene- yet. During the Cold War the Bandung architecture. The Bandung trating most of the Global South. The state Conference gave birth to the Non-Aligned spirit must live on and the and condition of post-coloniality is still Movement but not all the 77 are said to waiting to be realised. We need a new and have followed a non-alignment policy and challenge today is to construct revitalised Bandung Conference spirit and a practice throughout the last 60 years. It is a fully inclusive world order strong Global South to put on the agenda a not clear how much world security and total post-colonial reality to guide the archi- strategy was driven by the Bandung princi- that no one dominates, all are tecture of new global world re-order. ple of non-alignment. In the political econ- included, none are excluded, in omy sphere also, the spirit of the Bandung Disorder Conference resulted in the Global South's fact the weak are supported, Currently the world is undergoing an demand for the building of the New the strong are restrained and unpredictable state of disorder. The International Economic Order (NIEO) in Bandung Conference in the 21st century the 1970s. There is no doubt that the all participate and have a should be revisited if only to help us all put Bandung Conference has attempted to put voice.” on the agenda in promoting and creating alternative to Western- or ex-USSR domi- the much needed predictable, stable, nated world order or disorder without suc- secure, peaceful, just, fair, equitable and sus- ceeding to create a new world order found- anchoring world reorder. tainable world re-order. There is a real need ed on new principles and humane civilisa- It is critical to unearth and excavate to put first what was put last in order to tion. also what knowledge of international rela- remove the cost to the disadvantaged and tions has been gained and developed within create the opportunity for an equal partner- Rethink the last 60 years to revitalise the energy and ship on the principle of mutual benefit to Now it is time to re-think, re-educate commitment and thinking for the Global anchor all relationships amongst all nations ourselves about the Bandung Conference South to learn to deal with the world and on earth. The strong traditional values like and the future in order to move from the respond to all challenges by creating a new Ubuntu should be promoted to create a current world order and disorder to a new world re-order agenda to make the people new humane civilisation that can anchor international sustainable world order and and the world free from domination by any world diplomacy on deep principles that architecture. The Bandung spirit must live power except to arm all nations to unite as recognise and appreciate where to hurt any on and the challenge today is to construct a one with shared principles, values and well- people and nation is tantamount to hurting fully inclusive world order that no one dom- being for all and harm to none. all in the world. inates, all are included, none are excluded, Today all countries may be in the UN, but World diplomacy should be replaced in fact the weak are supported, the strong the UN is still not a harbinger of a new from its current organised hypocrisy and are restrained and all participate and have a world order based on a new civilisation that instrumentality to Ubuntu world diplomacy voice. There is a need to re-charge and ani- removes war forever on this planet. We still with associational principles of social rela- mate the Bandung spirit to create this new live in a world order driven by superpower tions. A revitalised Bandung spirit is much world order. There is a need to re-learn the rivalry and domination. It is not a world needed with all leading Global South mem- significance of the Bandung Conference in order based on the will of all nations that are bers such as China and India from Asia, order to construct a new global architecture now members in the United Nations. It is Ethiopia, Egypt, South Africa and Nigeria anchored on values that can help in the not a world order that accommodates and from Africa and Cuba and Brazil, from Latin making of a completely revamped and includes the will of the many countries in America and all others from all parts of the transformed international order, security Africa, Asia, Latin America and Oceania. It world bringing them all in equal terms with- and justice by creating a new post-Western is a world order with super powers capable out failing to share and care. The Bandung dominated world where all civilisations and of projecting military power across the plan- spirit can inspire the world to move in the identities converge. A new global project et earth. It is a world order with gross deficit most civilised and cultured trajectory ever identity to unite the world to travel on a of morality, spirituality and deep values of by making all to gain and no one to lose. new civilisation route is urgently needed. Ubuntu diplomacy as the world has There is a true need for the non-aligned The Bandung spirit should be an inspiration remained still largely and primarily driven movement to be revived and promoted for the inclusion of all to make one morally by power, money, competition, markets, freshly by learning from the Bandung con- radiant, peaceful, stable and wellbeing self-interest and organised hypocrisy. It is
AFRICAN AGENDA VOL.18 NO.2 23
INTERNATIONAL
not a world order driven by principles, val- ues, justice, fairness and humanity that pro- tect the weak against the strong. A new space for all to be included, share both the cost and benefit of a civilised world order is urgently needed now more than at any time in world history. We think reviving the Bandung spirit at this time of the diamond jubilee will go a long way to re-think and re-learn the ups and downs the world has been going through to find novel and innovative ways to construct a new word reorder founded on shared culture and civilisation. The world has not entered the end of history; it is in fact at the beginning of history. The world does not need and should not be in a clash of civilisation; on the contrary, it needs a new unified civilizational project in order to bring to birth a new world reorder. Education that combines the Bandung spirit of 60 years to the African unity for renaissance of over 50 years is much needed Leaders of Bandung, 1955 to create a world reorder free from all forms of injustice. We have been undergoing a reach all Africans who should not only work and destiny of the world. series of annual education conferences to for a united and prosperous Africa, but also The question is how far Bandung 1955 remove the legacies of colonialism that dis- for a new world order inspired by the succeeded to realise this great ambition to formed African-ness to remove fragmenta- Bandung spirit and African's own rich val- re-erect a new world order that included the tion and psychic dislocation by trying to ues of Ubuntu. hitherto colonised today? At the current promote the Pan-African unity for renais- Bandung's 18 April like African diamond jubilee moment, it is time to sance project identity. The Afrophobia Liberation Day's May 25 should have been reflect where the world has been, in order to hatred to Africans against each other has remembered especially at the time of the learn better where it is and will be going cur- continued to distract Africans to make the diamond jubilee. April 18 should be rently and in the future. much needed unity to enjoy the rich remembered as the Bandung-Inspired A world re-order is much needed to resources Africa is endowed with by creat- Reorder Day (BIRD) for making the world save the planet. Epistemological disobedi- ing the systems, institutions and gover- safe, healthy and peaceful by applying prin- ence to the current domination and a new nance to share for building the wellbeing of ciples and cultures of sharing and caring. epistemology for creating a new Bandung all Africans by starting at the grassroots We thought it is important we remind us all sprit to create a new world re-order is level. not to miss this important Bandung urgent. There is also a real need to put those Conference initiation date and call upon that were put last like colonised Africa now Unity the whole world to prefer, value and choose to be first in order to remove disadvantag- In 2010 we started the series of confer- by working very hard with honesty, sinceri- ing anyone by erecting a new word reorder ences for education on the urgent need of ty and integrity to create a peaceful, fair, architecture. The African deep values of why Africans should have united yesterday equitable, inclusive world order based on Ubuntu diplomacy built on principles of “I if not today. Our sisters and brothers from deep associational not instrumental values am because you are” should provide the South Africa both from within the govern- and principles to remember and use the epistemic virtue to found a sustainable ment and all the non-government partners date for deepening education by reaching global world order. Let us encourage all to have to be congratulated for supporting this all people across the world. act now and not tomorrow to create a new African unity for renaissance series of con- All the 29 participants of the time tried world order based on a just, fair, peaceful ferences. This recent outbreak of to introduce decolonial values as the princi- and democratic culture and civilisation. Afrophobia is very strange as the support ple for building new world architecture as a for African unity for renaissance from South pathway for making world progress. A * Mammo Muchie is DST/NRF Research Africa has been consistent and very inspir- Third World route as a vision for world re- Professor of Innovation and Development, ing. We were very proud for raising funds order was crafted founded on ideas of com- Tshwane University of Technology, Senior entirely from South African partners, and pleting decolonisation, and development Research Associate, TMDC, Oxford we never asked or raised any funds from any based on freedom and independence. The University, Adjunct Professor in ASTU and donor. The output from the series of Africa Bandung Conference 60 years ago high- University of Gondar, Ethiopia, and Visiting unity for renaissance conferences should be lighted the importance of the Global South Professor Shanghai University, shared so that awareness and education can playing a direct role in shaping the future China.(www.sarchi-steid.org.za )
24 AFRICAN AGENDA VOL.18 NO.2
INTERNATIONAL A short walk but with giant steps
Bandung 2015 is a chance to build on the cooperation among developing countries launched by Bandung 1955 writes *Martin Khor.
Hotel that hosted participants
n 24 April, I took a 10-minute walk movement that snowballed into a united Asia Africa Road to the Merdeka Building. from an old hotel to ano¬¬ther anti-colonial and post-colonial battle. Bandung April 24, 1955, saw giants like Oold building, a conference hall. We had come to commemorate and Sukarno of Indonesia, the host, Zhou Enlai About 300 others were on the same walk on celebrate the anniversary of the Bandung of China, Jawaharlal Nehru of India, the warm and sunny day. conference of Asian and African leaders, all President Gamal Abdel Nasser of Egypt, U It didn't seem anything remarkable or of whom had just won Independence or Nu of Burma and some leaders of Africa, newsworthy. But this was no ordinary walk. were on the verge of doing so. coming together to discuss the need for Sixty years ago, on this same date, a small The same grand Savoy Homann hotel newly independent countries to unite and but powerful group of men and women was where the leaders had stayed, and they fight for common interests. took the same walk and then launched a had taken the historic short walk on the They adopted the Bandung principles,
AFRICAN AGENDA VOL.18 NO.2 25
INTERNATIONAL that included respect for national sover- “Global injustice is obvious, another in financing their own develop- eignty and self-determination, equality of ment. all nations and abstention from use of force when wealthy nations think A new trend in South-South ga¬¬ther- or exerting pressure on countries. they can change the world ings is that criticism of the ways of the West Bandung 1955 was the first ever meet- in dominating the South is now combined ing of the developing countries, who with their might, when the with announcements of how the developing pledged to help other countries still under United Nations is powerless, countries are organising various ways to colonialism to complete their independ- rely more on one another, including creat- ence struggle, and to cooperate to develop when force is used without ing new institutions. their poor economies. the mandate of the UN and In a speech representing the South That Bandung spirit led to the forma- Centre, I mentioned that we support the tion of the Non-Aligned Movement in powerful countries ignore the call by the Indonesian president to establish 1961, and indirectly also led to the Group existence of the UN.” a new world order where the developing of 77 in 1964, the two major umbrella countries have an equal say and enjoy their organisations of the developing countries. fair share of the benefits. Political leaders from over 40 coun- not be left to these three organisations, we In this new and more equitable world tries, led by Indonesian President Joko need to build a new world order that is open order, the developing countries will be able Widodo, and officials from international to new countries. A new and fair global sys- to contribute to the solutions to the multi- organisations walked from Savoy Hotel to tem is needed.” ple crises of global finance and economy, Merdeka Building and took part in a brief Widodo also stressed that as the food security, unfulfilled social develop- but meaningful commemoration ceremo- Bandung spirit demanded independence ment, energy and climate change. ny. for countries, we are still indebted to the The developed countries will change Among the leaders present were the people of Palestine. “We have to struggle their unsustainable patterns of production presidents of China, Zimbabwe and with them to give birth to an independent and consumption, and assist the developing Myanmar, and the prime ministers of state of Palestine.” countries through financial resources and Malaysia, Nepal and Egypt. The plight and struggle of technology transfer to embark on new sus- We were told the Merdeka Building Palesti¬nians became a major issue at the tainable development pathways. had not changed, and the chairs were the Summit. It was obvious that the continuing South-South cooperation, based on same as the ones used 60 years ago. occupation of Palestine lands and their solidarity and mutual benefits, will play an Widodo invoked the memory of the unfulfilled fight for an independent state increasingly important role. There is much leadership and spirit of the giants of old, was a big piece of “unfinished business” of to be done politically and concretely in this who had pioneered their nations' independ- the Asian African Bandung conference. area. ence and forged unity among the newly A special declaration in support of Bandung 1955 was a landmark event independent countries. Palestine was adopted by the conference. that launched many good developments for In a two-day Asian African summit Two other documents adopted were the the newly independent countries. conference in Jakarta preceding the Bandung Message and the new Asia-Africa Bandung 2015 could also prove to be a Bandung ceremony, even more leaders Strategic Partnership, which details the landmark event that catalyses further break- were present to discuss the theme, South- actions that are to be taken to promote throughs in South-South cooperation South Cooperation for Peace and more cooperation in economic, health, which, together with our better perform- Prosperity. food security, education and other areas. ance in multilateral relations, will imple- President Widodo made a strong President Xi Jinping of China pledged ment the building of the new world order speech highlighting the continuing power to provide places for 100,000 students and that our first generation of leaders were inequalities and injustices in the world, in officials in Asia and Africa for education and dreaming of. which developing countries were still strug- training in his country over five years. As the Jakarta and Bandung events gling to get their rightful fair share in deci- He put forward several principles, came to a close, Indonesian officials indicat- sion-making in world affairs. including to seek common ground and be ed that they will be undertaking follow-up Global injustice is obvious, when open to one another's views, expand South- actions after the Summit. It is important wealthy nations think they can change the South cooperation, and the closing of the that concrete programmes are formulated, world with their might, when the United North-South gap. He also mentioned the so that the good-intentioned declarations Nations is powerless, when force is used new Chinese initiatives of setting up the do not remain only on paper but spark new without the mandate of the UN and power- Asian Infrastructure Investment bank as shoots of South-South cooperation. - Third ful countries ignore the existence of the well as a new fund to finance the activities of World Network Features. UN, he said. the Economic Silk Road and the Maritime Injustice exists when rich countries Silk Road. *Martin Khor is executive director of the refuse to recognise the shifts in world eco- These initiatives by China were a South Centre, a research centre based in nomic power and only recognise the World reminder that with the growing wealth of Geneva, Switzerland. Bank, International Monetary Fund and the China and some other emerging Asian Development Bank, he added. economies, there is now a real possibility The article is culled from Third World “The fate of the global economy can- for the developing countries to help one Network Features.
26 AFRICAN AGENDA VOL.18 NO.2
INTERNATIONAL
Palestinian kids raising flags, raising hope? Saving Palestine's children under the arms trade treaty
The treaty, when enforced, will provide the much needed protection to innocent lives from arms that are used for war crimes and genocide, writes *Vacy Vlazna.
efense for Children International scattered by explosions killed children in Article 6: 3. A State Party shall not author- Palestine (DCIP) released this their homes, on the street as they fled from ize any transfer of conventional arms cov- Dmonth a comprehensive and heart- attacks with their families, and as they ered under Article 2 (1) or of items covered breaking report, OPERATION PROTEC- sought shelter from the bombardment in under Article 3 or Article 4, if it has knowl- TIVE EDGE: A WAR WAGED ON schools. (DCIP) edge at the time of authorization that the GAZA'S CHILDREN detailing, that places The lives of Palestine's children should arms or items would be used in the com- that should have provided children with be better protected since 24 December mission of genocide, crimes against human- shelter and safety were not immune from 2014, when the Arms Trade Treaty (ATT) ity, grave breaches of the Geneva attacks by Israeli forces. became binding in international law requir- Conventions of 1949, attacks directed Missiles fired from Israeli drones and ing states to end the transfer of arms that against civilian objects or civilians protect- warplanes, artillery shelling, and shrapnel would be used in war crimes and genocide: ed as such, or other war crimes as defined
AFRICAN AGENDA VOL.18 NO.2 27 INTERNATIONAL by international agreements to which it is a Attention Party. Elbit Systems, during Israel's 51 day The ATT has been ratified by 66 states war on Gaza was occupied in protest by UK and 64 have signed but not ratified includ- and Australian activists to bring attention to ing the USA and Israel. Notwithstanding, Elbit's complicity in the monstrous destruc- Israel is a prime target for ATT sanctions. tion of Gaza. Silencing Israel's jibber-jabber of 'self Elbit is owned by the Federman defense, the documentary, The Lab by Group. Chairman Michael Federman is also Israeli Yotam Feldman, reveals that 1.6 mil- chairman of the Hebrew University which lion Gazans are locked in an Israeli military “To boost Israeli arms sales, has R & D links, as do most Israeli universi- laboratory where weaponry is battle-tested. ties, to Israel's major arms companies, Billions of international dollars from west- Palestinian families have suf- Rafael, Elbit, IMI, IAI. ern defense departments, fuel the demand fered three onslaughts of 'sys- For this reason alone, academic boy- and validate Israeli atrocities; tematic genocide' wars in six cotts are justified. “A key player in the military industries Other Boycott Divestment and told me that the operational testing in Gaza years and are condemned to a Sanctions (BDS) actions against Elbit are of Elbit's BMS (Battle Management System life that is unnatural and trau- divestments by Aegon, a Dutch financial - a special internet-like system for ground services organisation, by the Norwegian forces), a huge project worth $1 billion, has matic waiting for the next Pension Fund, Danksk Bank and PKA Ltd, allowed Elbit to raise its price in a deal Israeli weapons testing.” Denmark's largest pension fund managers, signed a year later with Australia. The same and by Första AP-Fonden, the largest of goes for Rafael. The company stated openly Sweden's pension funds. that it would capitalize on the escalation Phosphorous continues burning until the Conversely, the EU deplorably that preceded operation Pillar of Defense..A oxygen is cut off and even then, the extreme bestows Elbit with, salesman for the IAI (Israel Aerospace pain and the horrific tissue damage endures. “generous, taxpayer funded, EU grants Industries) told me that assassinations and The agonising pain and trauma turned under the EU's Horizon 2020 research pro- operations in Gaza bring about an increase a once happy and boisterous child, mute. gramme. The company benefited from of tens of percentage points in company Hamza can no longer speak, a common involvement in 5 European projects under sales”. Yotam Feldman symptom of trauma among Gaza's children the Seventh Framework Programme for terrified by Israel's relentless and tumul- research and technological development.” Siege tuous bombardments watched on TV and As a military economy, Israel has a distant hillsides by cheering Israelis in front- (Corporate Watch) pragmatic interest in maintaining the siege row seats. Global arms sanctions will end Israel's on Gaza and its occupation of Palestine, Decent people can neither compre- profit from the death of children. Western …the Israeli economy is so much depend- hend nor tolerate Israel's war mongering governments have multiple import and ent on these operations. It's 20% of the against Palestinian children and their fami- export defence contracts with Israeli private exports. It's 150,000 families--not people-- lies whom Israel has hemmed in with no and government arms manufacturers worth in Israel actually dependent on this indus- escape. The 'most moral army in the world' billions of dollars: Can these governments try. is a vile coward - ultimately shooting inno- guarantee their exports have not con- To boost Israeli arms sales, Palestinian cent Palestinians like fish in a barrel - for tributed to Israel's war crimes? No. families have suffered three onslaughts of profit. The Arms Trade Treaty was the cen- 'systematic genocide' wars in six years and Corporate Watch states, “85% of trepiece of Australia's presidency of the are condemned to a life that is unnatural drones used by the Israeli military are man- Security Council. Australia's, Foreign and traumatic waiting for the next Israeli ufactured by Elbit' and sets out the Use of Minister Julie Bishop, and her fellow weapons testing. Gaza is a cemetery for over Elbit's equipment in Gaza, Elbit is Israel's Israelophiles, i.e. the majority of western a thousand war-slaughtered children, a largest private arms manufacturer and is leaders, will be challenged, by unrelenting sealed death camp for 800,000 maimed and complicit in the direct targeting of children: grass roots pressure, to honour their legal traumatised surviving children waiting for Israel, the world's largest exporter of aerial obligations under the ATT. the next inevitable Israeli bombardment drones, killed at least 164 children in drone “The Arms Trade Treaty,” Bishop told and stark terror. attacks during its assault on Gaza. In a num- the UN, “will help stop destabilising arms Israel's war crimes and crimes against ber of incidents, evidence suggests that flows to conflict regions and to illicit users. humanity must be considered in human suf- Israeli forces directly targeted children. In It will prevent human rights abusers and fering such as the tragedy of little Hamza one such case, Rawya Joudeh, 40, and four those who violate the laws of war from Mus'ab Almadani, 3, of Khan Younis, Gaza. of her five children were killed by an Israeli being supplied with arms.” - Third World On 25 July 2014, Israel's soldiers drone-fired missile as they played together Network Features. loaded and fired artillery shells that dis- in the family's yard in Tal al-Zatar, Jabalia charged hundreds of phosphorous-impreg- refugee camp, North Gaza, on the after- *Dr. Vacy Vlazna is Coordinator of Justice for nated felt wedges that struck and burrowed noon of August 24. The children were aged Palestine Matters. The article is reproduced through his soft three year old skin. between 6 and 14. (DCIP) from Third World Network Features.
28 AFRICAN AGENDA VOL.18 NO.2
POLITICS Presidents in designer suits, citizens in rags
The twin forces of poor leadership and collective war trauma seem to be pushing the Great Lakes Region into endless conflict, creating a self-perpetuating circle of power-chasing and abuse. *Namakula E. Mayanja considers why this is the case, and what the region needs to break this vicious cycle.
Burundians taking to the streets
"Unless Africans from all levels of society patrimony', the 'recycling' of elites and the dent Nkuruziza maintaining power, but recognize and embrace the challenge of use of state power and resources to consol- about the current crisis of leadership in leadership, Africa will not move for- idate political and economic power. [...] Africa. This crisis is the root cause of the ward…Leadership is not simply a matter of African leaders rule failed states that have ongoing wars and conflicts in the region, filling the top positions in a government, acquired tags such as 'corruptocracies', and until addressed, peace and stability will institution, or private business. Indeed, not 'chaosocracies' and 'terrorocracies.'" remain elusive. In 1992, President Yoweri every person in a leadership position is truly One thing that strikes whenever armed Museveni of Uganda published, What is a leader". conflicts erupt in the Great Lakes Region Africa's problem? In chapter two, he high- "Perspectives on political leadership in (GLR) and the whole of Africa is the lead- lights the 'price of bad leadership', which Africa vary from the 'criminalisation' of the ership crisis and struggle for power. What is indicates that it is indeed the leadership cri- state to political leadership as 'dispensing happening in Burundi is not about presi- sis that is Africa's problem. Who pays the
AFRICAN AGENDA VOL.18 NO.2 29
POLITICS
price? When nations experience armed con- elephants fight, it is the grass that suffers? It flicts and wars, external efforts in peace- baffles human understanding to note that as building rely on quick fixes such as signing far as the presidential term limit is con- peace accords; peacekeeping; rapid 'demo- cerned, the national constitution holds only cratic' elections and/or power sharing; during the years prior to the election year. demilitarization, disarmament and reinte- When their term is ending, presidents use gration; strengthening government institu- dubious means to alter the constitution to tions and markets. Little or no attention is maintain their power. Bribing parliamentar- given to the leadership crisis and the need ians and killing civilians are common, albeit to train leaders who respect the dignity and unacceptable, strategies used by these lead- rights of others; whose goal is the better- ers. If the leader does not respect the con- ment of all people and not personal aggran- stitution, how can he or she be expected to “When their term is ending, dizement, the interests of their cronies, or rule a country respecting the rules of law, their ethnic group. justice, and accountability? It then becomes presidents use dubious means questionable whether African rulers are to alter the constitution to Development 'Presidents, Patrons or Profiteers?' Equally, little or no effort is invested in maintain their power. Bribing ensuring integral development that Exploitation parliamentarians and killing includes healing the human heart or memo- Since 1885 when King Leopold II con- ry from the legacies of war. Witnessing the trolled Congo as his personal property, civilians are common, albeit atrocities of war leaves an inerasable scar in authoritarianism, terror, violence, exploita- unacceptable, strategies used the mind and heart of a person, and poten- tion and slavery have marked Congo's his- tially to hardens the heart towards suffering. tory. During his reign, more than 10 million by these leaders.” When this happens, the risk for further people died and countless women were atrocities increases. Witnessing ones family raped. These atrocities continue but sadly down, was assassinated in front of his being killed, being raped, jumping dead the present day perpetrators are local house. Other opponents went into exile. bodies while escaping the war, or being African leaders, rebel groups, and govern- Such a dictatorial and violent political forced to kill, which is the case of many ments of the neighbouring countries. machine implicitly forces civilians to dance child soldiers, kills the soul. The end of Recent wars and conflicts (those since and to smile even when they would have war/armed conflict leaves individuals and 1997) in the Congo have resulted not only done otherwise. According to Reyntjens, societies ravaged. War affects real people. in the rape of bodies and resources, but of stability and peace in the GLR is threatened The gravity of the conflict is measured in the nation itself. More than 6 million peo- by Rwanda, and by turning a blind eye to terms of number. It is hardly remembered ple have died and it is estimated that 45,000 her “hegemonic claim in eastern Congo, the that behind every number is human life. die monthly; thousands are raped while future stability of the region remains in The experience of war is hardly understood children and youth do not escape being doubt. Rwanda may once again, in the not by someone who has never witnessed one. recruited as child soldiers, porters and sex too distant future, become the focal point of The GLR has known war, is devastated slaves. The suffering that the Congolese regional violence.” more than the rest of Africa, and continues people experience, especially in the eastern Uganda, which became so famous dur- to feed the war industry while its citizens part which is rich with minerals and other ing Idi Amin's brutal rule, has experienced languish in poverty. Burundi, one of the natural resources, is unimaginable. Congo more than ten civil wars. The recent civil world's poorest nations, which according to is ranked among the poorest and most wars include conflict between the Lord's the 2013 Global Human Development underdeveloped countries, yet it has the Resistance Army, led by Joseph Kony, and Index ranked 180 out of 187 countries, potential to become both an African and the Ugandan government (1987-2007) became famous because of the ethnic wars global power engine. The leadership crisis during which around 100,000 people were that have recurred since 1961 to the pres- has weakened the Congolese state and its killed, 2 million displaced and 70,000 chil- ent. In the ethnic violence of 1972, thou- institutions, allowing the plundering of its dren and youth abducted and forced to sands of lives were lost, while others went resources and these atrocities to go on - so become soldiers, porters, or sex slaves. into exile. In1993, the Hutu-Tutsi protract- far, for 130 years. Kony is still at large. Before president ed animosity saw the first democratically In 1994 when the Rwandan genocide Museveni came to power, he waged a bush elected president Melchior Ndadaye assas- claimed more than 800,000 lives, power war (1980-1986) that left thousands dead, sinated and many people were killed, while was a denominating factor disguised especially in the Luwero triangle. many more sought refuge in other nations. beneath ethnic polarization. President Kenya was stable until 2007, when a In 1994, Cyprien Ntaryamira was also killed Kagame has been in power since 1994. As is power struggle and manipulation of ethnic in a plane crash alongside the Rwandan the trend, the elections exposed the worst differences led to the post-election violence president. The present power struggle may of African leaders. Prior to the 2010 presi- that claimed over 1000 lives, and about left soon be ethnicized. It is a phenomenon dential elections, opposition leaders, jour- 600,000 displaced. Tanzania remains the common in Africa that indigenous elites nalists, and dissident military officers were only country in the region that has not yet politicize ethnicity for their personal inter- jailed. Jean-Leonard Rugambage, a journal- experienced a civil war. In all these nations, est. When will civilians learn that when the ist who criticized the pre-election crack- even where there are no outright gun
30 AFRICAN AGENDA VOL.18 NO.2
POLITICS
exchanges, inequality and structural injus- (PSTD). If solders experience PSTD, what a legacy to society, with the potential to tices abound; a general malaise best illus- of the civilians who witness war atrocities? engulf societies and the entire region in fur- trated by the Animal Farm quote: 'All ani- What about former child soldiers, children ther conflicts. The GLR remains a ticking mals are equal, but some animals are more (and now adults) who have witnessed their time bomb unless measures are devised to equal than others.' parents hacked to pieces? In the GLR there heal societies. We are liable to see more The region is trapped in wars because are villages full of the skulls, mass graves, wars. Any leader who encourages any form power is constantly pursued by those who and bones that are found in forests, farms of violence is destroying societies, and would acquire the role of a political leader, and bushes. How do the residues of inces- poses grave dangers. even when they donot have leadership qual- sant wars affect civilians? Could it be a con- Leadership training, especially of the ities. In 1918, Max Weber pointed out that tributing factor to the protracted conflicts, young, and education for peace and conflict politics should be a vocation. I fear that the that people are becoming immune to vio- resolution in order to establish a culture of prevailing trend of viewing politics as a lence? How can people be healed from peace must become major components of business for personal aggrandizement has what they have witnessed? the education curricula. The young need to blinded us to the idea of politics as a voca- de-learn violence and relearn respect and tion, to the role of power in politics, and Impact love for the dignity of the human person. subsequently to the essential role of leader- The long-term impact of war is They need to know from an early age that ship. Leadership and power are key issues unimaginable and it carries on for genera- gun culture destroys us, and is liable to that the region must grapple with. It is cru- tions. A child born to a woman who was make African nations poorer, if not creating cial to address the root causes and not just raped during war remains a legacy of war to more villages of skulls. the symptoms. the mother, to him or herself, and to the Leaders in the GLR need to follow the Thus the key issue in Burundi is not entire society. Rape exposes the vulnerabil- rule of law and be accountable to the peo- about having president Nkunziza in or out ity of a society. They live with that legacy all ple. The onus is also on the African Union of power, or ethnic differences; rather, it is the way through life. The soldiers who kill to organize leadership training for African about addressing the systems of power and will hardly have peace. They suffer from leaders. It is only by strengthening leader- leadership. It is a common phenomenon PTSD which affects them, their families ship that Africa will develop. With the cur- that before a leader comes to power they and their entire society. People who are wit- rent leadership crisis, the region is enriching promise heaven, only to turn out as tyrants, ness to the atrocities of war are susceptible war industries in the developed nations profiteers, and power thirsty plunderers of to trauma. while impoverishing and killing innocent their nations. The psychological trauma of people civilians. Watching Burundians escaping for affected by war is not often talked about, It is also crucial to revisit the outlook their lives, one is taken aback by the impov- documented or tackled in efforts towards on politics and power. African politics erishment manifest in their bodies, and the poverty levels gauged by what they wear should not be perceived as a source of per- and carry. Yet the leaders are in suits, and “It is also crucial to revisit the sonal enrichment, but as a service for the driven in posh cars and planes. This phe- common good. The rule of law must be nomenon is not alien to other nations in the outlook on politics and power. upheld at all costs, including presidential region. What type of leadership is this? We African politics should not be term limits. No one must be above the law. are faced with a high level of moral deca- The judiciary should be impartial and not dency where people with blood on their perceived as a source of per- controlled by the executive. hands, those who empty national coffers, sonal enrichment, but as a The minds of leaders - especially those and use national resources for personal with military backgrounds (as held by four aggrandizement, hold leadership positions. service for the common good. heads of state in the GLR) - need to be Another underestimated issue in The rule of law must be upheld demilitarized. The region needs peaceful peacebuilding efforts is the inerasable mark leadership, and not war constructors. left by taking part in war, as a perpetrator or at all costs, including presiden- Peacebuilding efforts need to integrate witness of war atrocities. In post conflict tial term limits. No one must healing for those who have witnessed war societies, efforts are normally put on politi- atrocities. cal-structural reconstruction and rarely on be above the law. The judiciary Faced by all the protracted conflicts rehabilitating people. Armed conflicts affect should be impartial and not and endemic violence in the region, it is cru- the human psyche enormously. Those who cial to extend the analysis, establish the root witnessed the Rwandan genocide bear it controlled by the executive.” causes, and treat not only the symptoms but out in books such as 'Shake Hands with the the cause. In the final analysis, without dis- Devil: The Failure of Humanity in Rwanda' crediting the role of the international com- by Romeo Dallaire, and 'We Wish to post-conflict social reconstruction. If the munity, solutions to the region's wars and Inform You That Tomorrow We Will be wars in the region have lasted for over 130 instability lie in internal transformation, Killed With Our Families: Stories from years, or happened after independence, and not in externally devised solutions. Rwanda' by Philip Gourevitch. The movie then generations of civilians who have 'American Sniper' illustrates a soldier's either witnessed or are directly or indirectly * Namakula E. Mayanja is Ph D candidate, experience of Post Traumatic Disorder traumatized by war are the majority. This is University of Manitoba, Canada.
AFRICAN AGENDA VOL.18 NO.2 31
POLITICS
Guinean protesters in the streets of Conakry How serious are Guinea protests?
There appears to be little appetite for the Guinean opposition's promised campaign of civil disobedience. However, deep-rooted ethnic tensions, suspicions over Ebola and simmering resentment for the security forces could still see pre-election protests boil over, *writes Karim Camara and Jennifer Lazuta.
pposition-led demonstrations Ethnic divisions have also led to prolonged, 400 injured as security forces and opposi- have turned increasingly violent deadly conflicts in the past. tion protesters clashed repeatedly on the Oover the past month. Hundreds of streets of Conakry. protestors have been arrested. The opposi- What are the protests about? Things took another violent turn after tion says at least two have been killed, Following the controversial election of Guinea's independent electoral commis- scores more injured. President Alpha Condé in 2010, legislative sion, CENI, announced that presidential “I'm really afraid,” Ibrahima Bah, a taxi elections were finally held in September elections would be held this year on 11 driver in the capital Conakry, told IRIN. 2013, after six years of delays over the October, ahead of municipal elections “People continue to walk in limbo because choice of the voter registration company scheduled for March 2016. of the ongoing political squabble. Nobody and the composition of the electoral com- The opposition has asked for the com- knows what will happen next.” mission. munity elections, which have not been held Guinea has a long history of the gov- In the lead-up to the 2013 elections, since 2005, to take place ahead of presiden- ernment using force to suppress detractors. dozens of people were killed and more than tial elections.
32 AFRICAN AGENDA VOL.18 NO.2
POLITICS
“The similarities [between] the previ- Sidya Touré, a former Guinean prime ty forces have fired back with stones, tear ous electoral controversy…[and the situa- minister who is now leader of the opposi- gas and, in some cases, bullets. tion now] are striking and worrisome,” said tion Union of Republican Forces, refused to Security Minister Mamoudou Cissé Vincent Foucher, a senior analyst with the give any ground. has repeatedly denied reports of live bullets International Crisis Group (ICG) in West “We will continue to put pressure on being used to disperse demonstrators, but Africa. the government until our demands are met. the government has said it will investigate “Politics has a strong ethnic dimension, Negotiations with the government are out the allegations. and ethnicity has killed in the past, in vari- of question,” he told IRIN. “The demon- While many Guineans say they are ous parts of Guinea. And this is an Ebola stration was just the beginning of civil dis- unhappy with Condé, the latest demonstra- context, with lots of rumours and suspi- obedience in the country, and will continue tions have failed to garner much support cions. The relations between citizens and until the end of the year.” from the people, who increasingly accuse the security forces are notably bad. All this The government says that such persist- the opposition of being selfish. makes for a dangerous cocktail.” ence implies that the opposition wants to “The demonstrations against insecuri- provoke a military takeover in the country. ty in Guinea by the opposition should have A game of 'he said, she said' “The previous controversy lasted more come a long time ago,” Mohamed Kamara, According to the Guinean constitu- than two years,” Foucher said. “This pro- a businessman in Conakry, told IRIN. tion, if two elections coincide, the “most tracted, tense process could [again] go “Now it is too late,” he said, adding that important one,” i.e. the presidential, should wrong… And it is not clear that Guinea can people see the opposition as just trying to be held first. use Guineans to gain the presi- But the opposition claims dency. the only way to ensure a free Elhadj Thiernor Bah, a mem- and fair presidential election is ber of the Guinean Employment to hold municipal elections Federation, told IRIN: “These first, as the majority of current protests are causing us too much mayors were either appointed trouble. We want them to stop by the ruling party in 2010 or now.” have overstayed their man- International watchdogs say the dates by more than six years. government must do everything Opposition leaders say possible to quickly restore peace these mayors will help “rig the and order. elections” by swaying their “The authorities know they constituents to vote against the have to avoid a massacre, anoth- opposition in the presidential er 28 September,” Foucher said, race if new municipal elections referencing the infamous day in are not held first. 2009 when security forces mur- “The opposition remains dered at least 150 people and convinced that it has been raped dozens of women, after cheated of victory in the presi- locking them inside a stadium dentials of 2010 and the leg- during a political rally. islatives of 2013,” Foucher President Alpha Conde “So they have been trying said. “It hopes for revenge…. hard to control So they want to take back some local really afford another round like that, wast- repression…[But] this could go wrong. [It authorities first, in order to defend their ing time, money, resources, and the could] escalate, turn into ethnic clashes in voting pool better at the presidentials.” patience of international partners.” Conakry, [and] reverberate in other parts The ruling party says such opposition of the country.” claims are “unfounded” and points out that Renewed violence Most civilians say they just want the the current mayors were all in office when Frustrated at the impasse, hundreds of fighting to stop. the opposition was able to win 45 of the 114 angry opposition supporters - mainly dis- “Schools have just reopened after six parliamentary seats. satisfied youth - have been taking to the months… due to the outbreak of Ebola in The government has also said that the streets of Conakry since mid-April to this country,” teacher and mother-of-three outbreak of Ebola has made municipal elec- express their demands. They block roads Mariam Bangoura told IRIN. “Our children tions difficult to hold for financial reasons and burn tires, bringing much of the capital have finally started going to school and now and that the focus should be on holding the to a standstill. Shops are forced to close and they want to disturb the future of our chil- “more important” presidential elections many have been destroyed. dren? No. Both the opposition and the gov- first. Security forces, called in to disperse the ernment must go back to the negotiating “Neither of the two sides in the politi- protestors and restore order, inevitably end table to iron out their differences.” cal conflict is willing to back down for the up clashing with the demonstrators. They other,” Issa Bangoura, a banker in Conakry, claim to have been attacked with stones and * Karim Camara and Jennifer Lazuta wrote told IRIN. other objects. Protestors say that the securi- this report for IRIN.
AFRICAN AGENDA VOL.18 NO.2 33 POLITICS New Anti-Terrorism Law batters Cameroonians seeking secession
Cameroon's government under President Paul Biya is bearing down on a separatist movement fighting for the rights of a minority English-language region, using as its weapon a sweeping new anti-terrorism law introduced at the end of last year, writes *Mbom Sixtus.
he separatist Southern Cameroons British carved it up between them as League territory and its population and a diminish- National Council (SCNC) - which of Nations mandates - four-fifths went to ment of their educational and cultural her- Tis demanding an independent France, the rest to the United Kingdom. itage, while feeding the flame of ethnic strife Southern Cameroons made up of A federation was declared in 1961, fol- between the people of the Northwest and Cameroon's Northwest and Southwest lowed by the annexation of the English-lan- Southwest Regions. Regions - has been targeted under the new guage region into the United Republic of The extraction of oil and the expropriation law, which forbids public meetings, street Cameroon, with its capital in Yaounde in of Cameroon's substantial oil revenues is protests or any action that the government 1972. Dissension continues to seethe, how- frequently cited as the touchstone for frus- deems to be disturbing the peace. ever, in the English-speaking regions which tration and anger among those of the strug- English-speaking Cameroonians make resent the lack of control over their assets. gling south. up over 22 percent of the country's popula- Over the years, Cameroon has downplayed In this regard, the Natural Resource tion of 20 million. its problems with the English-speaking Governance Institute (NRGI) gave Long desired by Western powers for its regions, while making token placements of Cameroon a “failing grade”, ranking it 47th beauty and natural resources, Cameroon a few of their citizens in its administration. out of 58 countries for such weaknesses as was first occupied by the Germans in 1884. Secessionists say this relationship of enabling environment, safeguards and qual- After the First World War, the French and inequality has led to impoverishment of the ity controls, and reporting practices.
34 AFRICAN AGENDA VOL.18 NO.2
POLITICS
impunity remained a problem,” said the report. Meanwhile, thousands of Southern Cameroonians are currently in exile in Europe and the United States and thou- sands more are on the run because of their support for the separatist movement. The Biya administration, on the other hand, presents a picture of a country unswervingly headed for growth. In a docu- ment titled Cameroun Vision 2035, a long- term vision is described which envisages the consolidation of democracy, enhancement of national unity, economic development and increasing employment.
Needs Under a three-year plan, unveiled in December, Cameroon will spend 1.75 bil- lion dollars “to meet the immediate needs of the population,” focusing on sectors such as road infrastructure, health, agriculture, energy and security. “The special programme, evaluated at 925 billion CFA francs, is financed through the mobilisation of the required resources President Paul Biya from local and international financial insti- tutions at sustainable rates,” Prime Minister “Cameroon's national oil company SCNC leaders, told IPS from his hospital Philemon Yang said without giving further (SNH) dominates the sector,” NRGI bed at the Buea Regional Hospital that details. reported. “It is directly controlled by the security forces barged into his house while In the latest twist to the South Presidency … The largest revenue streams he and the guests were about to have a meal. Cameroons issue, a meeting last month of are collected by SNH and transferred quar- “We were not even permitted to eat our Cameroon's English-speaking lawyers gave terly to the national treasury after subtract- food. They just beat us, ordered us to move notice that an All-Anglophone Lawyers ing the company's operational costs - mean- and led us to the station. We spent four days Conference would be held shortly in ing that some oil revenues never reach the in a prison cell and only regained freedom Bamenda, chief city of the Northwest treasury.” at about 5 pm on Apr. 6.” Region, “to develop strategies at safeguard- Aside from publishing environment Kang denied the government's charges ing the Common Law and to map out the impact assessments, Cameroon provides of promoting secession and rebellion which very little information on its extractive sec- had been levelled against the group. way forward for the Southern Cameroons tor, noted NRGI, while it performed near Talking to IPS, Martin Fon Yembe, a territory,” the Cameroon Concord report- the bottom of rankings on measures of member of the SCNC and human rights ed. budgetary openness and the rule of law. activist, said that while the government The news online was met with over a made it seem that the new anti-terrorism dozen enthused readers. “Machiavelli Revenue law was designed to boost the fight against Ayuk” of the University of Buea wrote: Oil exploration, production and refin- Boko Haram, the main aim was to stop the “This is the kind of action that the margin- ing all take place in Southern Cameroons, holding of SCNC meetings and gatherings. alised Anglophone people love to hear. At while oil-derived revenues are paid to the “Everyone knows that law was put in last we have some Educated Elites in the state coffers directly in Yaounde. place to hinder the activities of the move- Anglophone zone…” Against this background, and since ment and there is no gainsaying the fact that The comment was followed by “Fast Cameroon's President Paul Biya endorsed it poses a problem,” he said. Man”, a self-described fieldworker, who an anti-terrorism law in December 2014, A U.S. State Department human rights wrote: “I hope the lawyers use their intelli- the SCNC has not been able to organise report on Cameroon in 2013 referred to gence and remember their oath. We will any major gathering. security force torture and abuse, denial of never go anywhere under French hegemo- An attempt on Apr. 3, ended with the fair and speedy public trials and restrictions ny. God bless the Southern Cameroons and arrest of Nfor Ngala Nfor, SCNC Vice on freedom of assembly and association. its citizens…” National Chairman, and six others in Buea, “Although the government took some steps Southwest Region. to punish officials who commit abuses in * Mbom Sixtus writes for the IPS from Andrew Kang, who had hosted the the security forces and in the public service, Yaounde.
AFRICAN AGENDA VOL.18 NO.2 35 POLITICS
Political economy of xenophobia
Many black South Africans are yet to enjoy the freedom dividend. This is the primary source of their frustration that needs to be addressed urgently. As one of Africa's leading nations, the country should also intensify its efforts to realize the dream of pan-Africanism, writes *Odomaro Mubangizi.
hat has sparked off this orgy of at what South Africans are doing to fellow (numbers could be higher). Property has brutal killings in one of Africa's Africans, given the massive support many been destroyed. There have been thou- Wmost promising democracies African countries offered during the anti- sands of trekkers heading to neighboring and economies? What is happening to the apartheid struggle. Is it a case of selective states of Malawi, Zambia, Zimbabwe and “Rainbow Nation”, so labeled by the Nobel amnesia? Is it that the ordinary South Mozambique. Some who came from distant Peace Prize Laureate Archbishop Desmond Africans have no clue about what many countries such as Nigeria, Uganda, Kenya Tutu? Where is the much praised Ubuntu Africans did to liberate South Africa? and Ethiopia could only find safety at a sta- philosophy that helped South Africa to Whose fault is it that the “Rainbow Nation” dium in Durban. While the recent xenopho- overcome the post-Apartheid revenge and has given in to xenophobic violence? bic attacks started in the Province of blood-thirst feelings that gave way to truth The “Rainbow Nation” has gone KwaZulu Natal, they quickly spread to and reconciliation? through very horrifying xenophobic vio- Soweto and Johannesburg. Pictures on Many commentators are in utter shock lence that has left at least 8 people dead social media depicted poor immigrants
36 AFRICAN AGENDA VOL.18 NO.2
POLITICS
boarding buses and others carrying luggage among locals who might see their presence heading to unknown destinations. There is as in invasion. Even President Zuma in his anger, fear and frustration across the message mentioned the benefit of these for- African continent, since most countries eign nationals in contributing to South have a good number of people working in Africa's cosmopolitanism. South Africa. Like all highly urbanized societies, Some media headlines tell the tale of where you find an amalgamation of many horror: “Foreigners tell of being 'hunted nationalities, you also find petty and grand like dogs' in South Africa”; “South Africa crime. This crime and insecurity cannot be attacks spark anger abroad”; “Zimbabwe to blamed on foreign immigrants alone, since bring home nationals caught in S. Africa South Africa has had a reputation of a high attacks.” Mobs brandishing sticks and crime rate right from the days of apartheid. machetes roamed streets hunting for for- We are looking at a society wounded by a eigners. What sparked off this xenophobic “Given that South Africa has long period of social and political stress. violence? Then there is the discomforting fact of Like any major social upheaval there limited qualified local person- why so many immigrants are heading cannot be one cause. Some were quick to nel to run the ultra-modern South. What is going on in the respective point fingers at Zulu King Goodwill economy, it has attracted countries of origin? If the conditions in Zwelithini as having incited his subjects in a these countries were so attractive, the citi- speech where he alluded to foreigners being many skilled and unskilled zens would not be moving in huge numbers the cause of insecurity, a charge he has Africans.” to look for greener pastures. Some soul- denied. He was quick to make a public searching is needed among the respective statement clarifying that he was not in any countries where the immigrants originate. way calling for the expulsion of foreigners. Xenophobic attacks do not just erupt Within South Africa itself, there is an “A word said is an arrow let to fly”-hard to in a vacuum. The first widespread xenopho- amount of political contestation symbol- retract a statement. This goes to indicate bic attacks took place in 2008 and officially ized by Julius Malema's Economic Freedom the challenge of mixing modern state sys- 62 people died. All observers of South Fighters (EFF) party. The main critique tems with traditional political systems. One Africa's political economy point to a chasm that EFF is making against the ANC is that may recall Prof. Mahmood Mamdani's the- of inequality amidst affluence. The econo- the plight of the poor has remained unat- sis of “Citizen and Subject” in his celebrated my has been steadily declining and stands at tended to. Many youth have remained book: “Citizen and Subject: Contemporary a 1.5 percent growth rate. Unemployment unemployed while the ruling elite of the Africa and the Legacy of Late Colonialism.” stands at around 25 percent with the youth ANC are sitting pretty. Elections were held South Africans are at once citizens of a unemployment at double that figure. last May and EFF managed to get some modern state (or even ultra-modern) and at Recently there has been a wave of labour seats in the legislative assembly. Malema's the same time members of kingdoms and unrest around mines due to low wages. It disruptive drama during this year's State of chiefdoms where chiefs and kings wield was recently announced that Nigeria has the Nation speech by President Zuma took immense power and influence politics and overtaken South Africa as Africa's top eco- many by surprise. Could this xenophobic public opinion. The Zulus are close to 12 nomic giant. One can safely infer that such violence be a proxy war against ANC or million, making them the largest ethnic economic decline can spark off social some other complex political game? It is too community in South Africa. Such a group unrest. early to tell. with a strong cultural identity and a political It is also true that many Africans see Before Nigeria overtook it, South system that predates the modern South South Africa as a land of opportunities. The Africa was Africa's largest economy-do not African state system is a force to reckon top 10 universities on the continent are all ask how Nigeria pulled off this. By 2013, with. in South Africa offering comparably excel- South Africa was Africa's biggest investor Fortunately the South African govern- lent education that can easily rival some overshadowing China and the EU who still ment has come out strongly to condemn schools in the West. Given that South dominate investment in Africa when we the xenophobic attacks and measures have Africa has limited qualified local personnel consider monetary terms. South Africa's been put in place to address the issue. to run the ultra-modern economy, it has multinational companies are known across President Jacob Zuma's public statement attracted many skilled and unskilled has given some relief and hope that a solu- Africans. Figures are not easy to find but the Africa: telecoms (MTN), banking tion can be found. In his 20 April 2015 mes- neighboring countries such as Zimbabwe, (Standard Bank; retail (Shoprite), and food sage, he had this to say: “Any problems or Malawi, and Zambia have a close to a mil- (Tiger Brands). Since these investments are issues of concern to South African citizens lion immigrants in South Africa. Ethiopia is in the service sector, they help the rest of must be resolved peacefully and through estimated to have about 50,000 immigrants Africa to create jobs, and have therefore ini- dialogue. The police have been directed to there. Think of Ugandans, Congolese, tiated a paradigm shift from overdepen- work round the clock to protect both for- Tanzanians, Rwandans, and Somalis. These dence on natural resources extraction. eign nationals and citizens and to arrest immigrants are no doubt contributing to Given South Africa's massive investment in looters and those committing acts of vio- the growth of South Africa's economy, but the rest of Africa, one wonders why the lence.” they also attract feelings of resentment xenophobic feelings emanating from the
AFRICAN AGENDA VOL.18 NO.2 37 POLITICS
“Cape of good wines” as South Africa is self and is the richest African on the conti- should make this point loud and clear and nicknamed by some. After the xenophobic nent. While South Africa has some of the even be proactive in including this in the attacks erupted, some angry people were wealthiest individuals among the black education system of South Africa. even suggesting a boycott of South African community such as Cyril Ramaphosa, they South Africa is part of SADC that goods and services. This would be a danger- do not come anywhere near Dangote's busi- includes Tanzania and DRC. It is high time ous path, of course, since it would hurt the ness empire. South African indigenous SADC joined the other regional integration African continent badly. But the frustration entrepreneurs are still a work in progress blocks-East African Community (EAC) and anger that generated this line of and they are yet to be proven by the test of and COMESA to form a large regional thought is understood. time. block to ease movement of people, goods South Africa is considered by some The hundreds of companies based in and services. The anticipated tripartite observers, like Prof. Patrick Bond of the South Africa are what are attracting a lot of arrangement to combine SADC, EAC and University of Kwa-Zulu Natal, as a sub- immigrants both legal and illegal. Another COMESA come June should address this imperial power in the African continent. international political economy issue is the issue of forging greater regional integration. Mention is made about BRICS-a trans-con- ownership of these multinational conglom- The lesson from EAC is telling. The coun- tinental regional integration body compris- erates. If one uses a world systems theory, tries of Rwanda, Uganda and Kenya have ing Brazil, Russia, India, China and South South Africa looks by all intents and pur- expedited regional integration and citizens Africa. Why would South Africa join this poses like a semi-periphery or entry point of from these countries are able to move body when it is part of regional bodies global capitalism. This implies that some of around the region with just an ID. Citizens SADC and COMESA? The geopolitical the contradictions of the global capitalistic from these countries can look for jobs or configuration of BRICS seems like an alter- economy will be played out in South Africa: even settle in any of the three countries dubbed the “coalition of the willing.” Tanzania and Burundi that are part of EAC are still making up their mind on this rapid integration. You do not hear much talk of “taking our jobs” in the three countries of Kenya, Uganda and Rwanda. Every country has some comparative advantage. If the entire region of East and Southern Africa stretching from the Cape to the Horn of Africa were to form one eco- nomic and later political block, this would make a huge economy with plenty of job opportunities, market, and exchange of ideas and knowledge for a population of about 600 million people. South Africa can also take the lead in promoting pan-Africanism. Even at the highest diplomatic level, the AU Commission Chair is Dr. Nkosozana Dlamini Zuma from South Africa. This is the time for the continent to prove itself and use the xenophobia violence to champion African unity, with South Africa taking the native power to compete with the global exploitation of cheap labor to maximize lead. economy hitherto dominated by the profit; tension between labor and capital; At the domestic level, South Africa will Western imperial powers. In fact there is diminishing role of the state as the capitalist have to come up with a clear and compre- some growing resentment in the rest of market takes the upper hand; and social hensive immigration policy that reflects the Africa about South Africa's growing eco- unrest as a result of failure to resolve these Ubuntu philosophy of hospitality and gen- nomic and political hegemony. contradictions. South Africa has the suffi- erosity. There is a lot to share and partici- A quick look at some of the top compa- cient intellectual and political capital to pate in across the continent and so coun- nies in Africa by 2013 shows how indeed address these contradictions, but political tries that are tightly closing their borders South Africa is Africa's giant economy: [1] economy has some surprises. and guarding jealously what they call “our From this data it is clear that South South Africa's freedom is the result of jobs” are deluding themselves and delaying Africa is Africa's unrivalled economic many sacrifices that front-line states made Africa's rise to economic prosperity. Africa power-house. This is why many Africans are to end the apartheid regime. Many African Unite, you have nothing to lose but poverty. moving down South to have a piece of the countries played a crucial role in supporting pie come what may. Of great interest is the ANC's liberation struggle. The ordinary * Odomaro Mubangizi, PhD, teaches philoso- appearance of Aliko Dangote, the Nigerian South Africans have no excuse for not phy and theology at the Institute of Philosophy billionaire who has carved a niche for him- knowing this basic fact. The government and Theology in Addis Ababa, Ethiopia.
38 AFRICAN AGENDA VOL.18 NO.2 SUBSCRIPTION FORM
Annual Subscription Rates (12 issues) Airmail Surface mail
Developed countries (Institutions) US$60 US$45 Developed countries (Individuals) US$45 US$30
Third World individuals & groups US$35 US$20
For India subscribers: Special rates Rs500(surface airmail). (For address, please see below). SUBSCRIBERS IN INDIA: Payments and enquiries can be made to: the Other For Malaysia subscribers: Special rates at RM35 per year or RM65 for 2 years India Bookstore, Above Mopusa Clinic, Mapusa 403 (Please send cheques/postal order to Third World Network). 507, Goa, India.
AUSTRALIA, BRUNEI, PHILIPPINES, SINGAPORE, THAILAND, UK, USA: NAME:……………………….……………………….……………………….……………………….……………………….………………….... You can pay by credit card or cheque/bank draft/ international money order in own currency, US$ or Euro. If paying in own currency or Euro, please ADDRESS:……………………….……………………….……………………….……………………….……………………….…………… calculate equivalent of US$ rate. If paying in US$, please ensure that the agent bank is located in USA.
……………………….……………………….……………………….……………………….……………………….……………………….………...... ALL OTHER COUNTRIES: Credit card or cheque/bank draft/ international CITY:…………………...... ……. POSTCODE:………...... …..…. COUNTRY:…………...... …...... …………. money order in US$ or Euro. If paying in Euro, please calculate equivalent of US$ rate. I would like to subscribe by AIR/SURFACE MAIL and If paying in US$, please ensure that the agent bank is located in USA. I enclose the amount of………………………...... CREDIT CARDS ACCEPTED: Please charge the amount of …………………...... ……. to my credit card VISA/MASTER CARD/AMERICAN EXPRESS.
American Express MasterCard Visa Please send payment/enquires to: THE WORLD NETWORK Account No. 131-JALAN MACALISTER 10400 PENANG MALAYSIA
Email: [email protected] .my Signature:…………………...... ……. Expiry Date:………………...... ………. Website:http://www.twnside.org.sg