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Author Topic: Keeping Africa poor  (Read 5459 times)
Posts: 1531

« on: October 19, 2005, 11:22:35 AM »

Africans don't need aid – they need to be given back their oil and gold


Gordon Brown has a new idea about how to "make poverty history" in time for the G-8 summit in Scotland. With Washington so far refusing to double its aid to Africa by 2015, the British chancellor is appealing to the "richer oil-producing states" of the Middle East to fill the funding gap. "Oil wealth urged to save Africa," reads the headline in London's Observer.

Here's a better idea: instead of Saudi Arabia's oil wealth being used to "save Africa," how about if Africa's oil wealth was used to save Africa – along with its gas, diamond, gold, platinum, chromium, ferroalloy and coal wealth?

With all this noblesse oblige focused on saving Africa from its misery, it seems like a good time to remember someone else who tried to make poverty history: Ken Saro-Wiwa, who was killed 10 years ago this November by the Nigerian government, along with eight other Ogoni activists sentenced to death by hanging.

Their crime was daring to insist that Nigeria was not poor at all, but rich, and that it was political decisions made in the interests of Western multinational corporations that kept its people in desperate poverty. Saro-Wiwa gave his life to the idea that the vast oil wealth of the Niger Delta must leave behind more than polluted rivers, charred farmland, rancid air and crumbling schools. He asked not for charity, pity or "relief," but for justice.

The Movement for the Survival of the Ogoni People demanded that Shell compensate the people from whose land it had pumped roughly $30 billion worth of oil since the 1950s.

Ten years after Saro-Wiwa's hanging, 70 per cent of Nigerians still live on less than $1 a day and Shell is still making super-profits. Equatorial Guinea, which has a major oil deal with ExxonMobil, "got to keep a mere 12 per cent of the oil revenues in the first year of its contract," according to a 60 Minutes report – a share so low that it would have been scandalous even at the height of colonial oil pillage.

This is what keeps Africa poor: not a lack of political will, but the tremendous profitability of the current arrangement. Sub-Saharan Africa, the poorest place on earth, is also its most profitable investment destination. It offers, according to the World Bank's 2003 Global Development Finance report, "the highest returns on foreign direct investment of any region in the world." Africa is poor because its investors and its creditors are so unspeakably rich.

The idea for which Saro-Wiwa died fighting lies at the heart of every anti-colonial struggle in history, from the Boston Tea Party to Iran's turfing of the Anglo-Iranian Oil Company in Abadan. This idea has been declared dead by the European Union's Constitution, by the National Security Strategy of the United States of America (which describes "free trade" as a "moral principle") and by countless trade agreements. And yet it simply refuses to die.

You can see it most clearly in the relentless protests that drove Bolivia's president, Carlos Mesa, to offer his resignation. A decade ago Bolivia was forced by the IMF to privatize its oil and gas industries on the promise that it would increase growth and spread prosperity. When that didn't work, the lenders demanded that Bolivia make up its budget shortfall by increasing taxes on the working poor.

Bolivians had a better idea: take back the gas and use it for the benefit of the country. The debate now is over how much to take back. Evo Morales's Movement Toward Socialism favours taxing foreign profits by 50 per cent. More radical indigenous groups, which have already seen their land stripped of its mineral wealth, want full nationalization and far more participation, what they call "nationalizing the government."

You can see it, too, in Iraq. On June 2, Laith Kubba, spokesperson for the Iraqi prime minister, told journalists that the IMF had forced Iraq to increase the price of electricity and fuel in exchange for writing off past debts.

But days before, in Basra, a historic gathering of independent unionists, most of them with the General Union of Oil Employees, insisted that the government could avoid it. At Iraq's first anti-privatization conference, the delegates demanded the government simply refuse to pay Saddam's "odious" debts and opposed any attempts to privatize state assets, including oil.

Neoliberalism, an ideology so powerful it tries to pass itself off as "modernity" while its maniacal true believers masquerade as disinterested technocrats, can no longer claim to be a consensus. It was decisively rejected by French voters when they said no to the EU Constitution, and you can see how hated it has become in Russia, where large majorities despise the profiteers of the 1990s privatizations.

All of this makes for interesting timing for the G-8 summit. Bob Geldof and the Make Poverty History crew have called for tens of thousands of people to go to Edinburgh and form a giant white band around the city centre on July 2 – a reference to the ubiquitous Make Poverty History bracelets.

But it seems a shame for a million people to travel all that way to be a giant bauble, a collective accessory to power. How about if, when all those people join hands, they declare themselves not a bracelet but a noose – a noose around the lethal economic policies that have already taken so many lives for lack of medicine and clean water, for lack of justice.

A noose like the one that killed Ken.   

Copyright 2005 Naomi Klein. This column was first published in The Nation (www.thenation.com).

Posts: 1531

« Reply #1 on: October 19, 2005, 10:00:37 PM »

Globalisation 'exploits' Africa


Addis Ababa - Globalisation exploits, denigrates and humiliates Africa in the same way slavery and colonialism once did, said Tanzanian President Benjamin Mkapa in a speech to the African Union on Wednesday.

Mkapa said world trade rules were based on racist beliefs that Africans were inferior. He also said African leaders were only paying lip service to the trade crisis.

He said: "The sad thing is that the greatest activists for the needs of our countries regarding matters such as aid, trade and debt are not African civil society, but civil society in rich countries.

"I urge African leaders to think afresh about the place of our continent in a rapidly globalising world."

Global trading regime

Mkapa, barred by his country's constitution from seeking another term, would step down after Tanzania's general election on October 30.

Mkapa said: "We suffered during the slave trade, and we suffered during the colonial period, which ushered us into a global trading regime, not as equal players, but as appendages of metropolitan powers.

"We have little flexibility to wrestle ourselves out of the grip of the multinationals that profit from our position of weakness."

He said the world's wealthiest countries made it difficult for Africans to succeed by charging high tariffs on agricultural products.

African products 'uncompetitive'

He said wealthy countries also gave their farmers more than $300bn in annual subsidies, making African products uncompetitive.

Trade rules meant that Africa faced massive tariffs if it tried to export processed goods, which placed African economies at the mercy of commodity prices and erratic weather.

As an example, Mkapa said the European Union imposed a tariff of 7.3 percent on unprocessed coffee.

Mkapa said but processed beans incurred a 30% tariff.

Mkapa was one of 17 people chosen by British Prime Minister Tony Blair to sit on his Commission for Africa.

Mkapa said Africa must look away from Europe and America and boost trade relations with Asia and Latin America.

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