Saturday, 14 November 2015

PARIS BOMBING (13 November 2015) and WESTERN “TERRORISM” POLICY




The bombing that took place in Paris with many casualties was a human tragedy and a political disaster for Western anti-terrorism policy. A day before ISIS suicide bombers in Paris, the bombing in Beirut, Lebanon demonstrated the ease with which jihadists fighting against the Assad regime are able to operate. In both cases the jihadist group ISIS operating in Syria and Iraq claimed responsibility and celebrated its success in retaliation for those trying to strike at ISIS targets. It is also likely that an ISIS affiliate in Egypt bombed a Russian passenger plane killing 224 people on 31 October 2015. 

Three bombings within a remarkably short span of time demonstrate the reach of an organization that was once backed by US allies in the Middle East, and possibly by the US indirectly in the war that the US started to bring down the Assad regime, all in the name of freedom and democracy, just as the US has been delivering freedom and democracy in Libya.  The quest to destabilize and ultimately overthrow Assad has failed in the last couple of years and made matters worse for everyone, above all the people of Syria. The US and its European and regional allies have managed to create a new force that has some appeal at least with the radicalized Sunni Muslims not just in Syria and Iraq but across the Middle East and beyond. Now that US secretary of State John Kerry has been in talks with Russia about how to stabilize Syria, perhaps agree on limited spheres of influence as imperialists, so that the greater threat of ISIS is contained. 

Based on the results alone, one could conclude that the US policy of destabilization that helped to create the conditions for ISIS to operate is a miserable failure with horrible consequences. Of course, if one advocates a policy of redrawing the map of Syria and Iraq, as many Westerners and Zionists do, then the policy has been a resounding success. After all, both countries are already badly divided along sectarian and ethnic lines, and what could be a better way of limiting the influence of Iran in Iran and Syria and Russia in Syria other than redrawing the map just as Western imperialists almost did a century ago?  

One would think that the lessons learned from the US policy of supporting jihadists in the 1980s in Afghanistan against the pro-USSR regime had become a lesson for policy change that would actually yield the desired results. On the contrary, as a status quo power immersed in Cold War ideology, the US does not change policy just because it backfires with dire consequences for itself and its allies. The military solution option is the only one on the table for the US for a combination of reasons. This means that cycle of jihadist attacks will continue as will the response with conventional militarist solutions that would in fact produce more unconventional warfare. Looking beyond the military solution to the root causes – social, economic and politic injustice – is out of the question during the era when neoliberal thinking prevails across the Western World. 

1.      The obsession of projecting strength through raw military power in the world as a way of retaining Pax American alive

No matter the failures of the military solution, and unintended benefits to US rivals Russia, China and Iran that do not want the US to have exclusive role in determining the balance of power in the Middle East, policymakers in Washington, backed by the corporate world and media do not deviate from the failed military solution option until there is no choice as was the case with Iran and the nuclear deal. The empirical evidence suggests that while military solutions as a means of maintaining Pax Americana began to show weaknesses as far back as the 1960s during the Vietnam War. Yet, the US will not abandon a policy that has failed to deliver. Pax American was dead and buried during Vietnam, and President Johnson implied as much when he announced on TV that he would not seek reelection, knowing the failure of Vietnam was a resounding failure for Pax American he was supposed to guard and expand. However, the lessons of Vietnam included everything but political solutions to crises. Instead, a commitment to go deeper into debt as a nation – currently $17 trillion or about equal to GDP – so that Pax Americana’s glory could live on if not in the real world, at least in the minds of delusional politicians while defense contractors made huge profits.  

2.      Ideological commitment to militarism and imperialism, despite the evolution of new multi-polar world in which China plays a determining role.  

The diehard ideologues to right-wing solutions have been around from the early days of the Truman administration advocating unilateral action in a world where the US defined its national security interests not just within its sovereign territory, not just in the Western Hemisphere as part of the long-standing Pan-Americanism perspective that dates back to the Monroe Doctrine, but across the world as the reckless and dysfunctional world’s policeman. Unable to exist as a society that is content with playing a role commensurate to its actual economic, political and economic power in the world, the ideologues advocating unilateralism, militarism and imperialism (intervention via over military action or covert operations) have proved detrimental to the security of the nation and to the destabilization of all places where there is intervention. 

The US invaded and occupied Iraq under Saddam Hussein on a series of blatant lies, created chaos and divisions with an otherwise unified country, and above all it is responsible for millions of refugees that are a huge problem for neighboring nations. Similarly, the US goal to bring down Syria’s Assad and make that country a US satellite instead of one where Russia and Iran enjoy influence has entailed the creation of millions of refugees for which the right-wing American ideologues want harsh punishment instead of amnesty by EU nations. Blinded by the notion of an invincible America pursuing its destiny to exert preeminent influence if not dominate the world, these ideologues making money as consultants, politicians, media analysts and above all defense contractors thrive on destabilization and what they call crisis management; ironically for crises they create but then propose to “manage”.  

3.      Tangible interests of profits by defense contractors who hire former politicians and high level defense and intelligence officers to work and lobby for them

President Eisenhower’s warning to the American people about the military industrial complex that was actually forged during the Wilson administration to manage World War I may have come too late. To this day, no one takes seriously the Eisenhower warning, partly because he was then advised by the IMF that the dollar as a reserve currency was becoming weak and would ultimately become even weaker owing to balance of payments deficits. Although the US could hardly afford both guns and butter, Johnson pursued such a reckless policy by escalating the Vietnam War to the delight of defense companies.
Because there is instability, jihadist terrorism, regional conflicts, and neglect of diplomacy as the first rather than the last option to resolve conflict, the profits of defense contractors rise as their stock market price indicates, and indeed the profits of every company from food and soft drink suppliers to defense to makers of drones. One cannot possibly ignore the power of the defense contractors and all industries feeding off the defense and intelligence budgets that simply drive up the public debt and weaken the civilian economy.

These people thrive on events that drive governments raise defense spending just at the time they should be cutting it and considering political solutions that may actually work against the reality of unending military solution failures that only generate more “unconventional warfare” or terrorism. As cynical as it may sound, all those making a living from the defense and intelligence domain delight in events such as that of Paris on 13 November 2015. These people know that peace and stability means cuts in their business, so they have no interest in political solutions to conflict.

4.      The media is always there to pump up militarism as the sole solution

The Western media had no problem with ISIS striking down the Russian plane and Beirut where Hezbollah was the target. In fact, the western media was criticizing Russian president Putin for striking at ISIS targets, prompting the US to indirectly assist ISIS by sending air cover to protect certain pro-West assets in Syria along the Turkish border. The media, reflecting US official position, sent the message to the world that the problem at hand was really Putin and Assad, rather than the barbaric ISIS that Russian planes were targeting; that is until the Paris bombing that had some arguing  drive the idea into peoples’ heads that it is possible to wipe out unconventional type of war, or terrorism by simply striking hard at the enemy.  

While the media does not create terrorism, it celebrates militarism by selecting news analysts and by reporting on stories of military solutions to conflict. It may be argued that the media must reflect the status quo and mirror what governments are pursuing. Editorial decisions are made on what stories to cover, how to cover them, and what spin to put on them, not just on FOX NEWS that has been called out by a number of organizations  for extreme right wing coverage, but the New York Times that many regard as liberal newspaper, yet it hardly differs in goals from FOX.

5.      Will Terrorism Subside or proliferate.
 
Contrary to what many politicians including the French President announced about closing the border and adopting other such “security measures” to preempt any strikes on French soil, and contrary to what British PM announced about striking down and ending jihadist activities, terrorism will continue and proliferate. This is because the underlying causes of terrorism are not addressed, and they include Western militarism and economic imperialism, complemented by racism and religious prejudice.
In 2015, we have much greater and wider forms of terrorism than we did when the US announced its war on terror after 9/11. The public relations exercises intended for mass consumption project the idea that government has the solution at hand and it is in position of protecting its citizens. However, jihadists already reside within the nations they wish to strike and history has demonstrated that unconventional war has never been won by conventional military means. One could argue that the Russian Tsars in the 19th century lacked the sophisticated science and technology available to the West in 2015. 

Fair enough, but how do then explain the Paris bombings taking place when France is well known for its sophisticated intelligence and technology available? This does not mean that measures cannot be taken for greater security of citizens, but it does mean that there will never be a full proof method of combating unconventional warfare (terrorism) because of its nature unless the underlying causes are addressed. The political solution remains the only option to eradicate terrorism which is simply a publicity stunt that never brings about systemic change toward greater social justice because it lacks grassroots support and alienates people that would otherwise sympathize with the cause of social justice. 

In the aftermath of the Paris bombings, the response I expect from the Western countries is one similar to the US in 9/11, although Russia will take advantage of the situation and once again propose a multilateral approach for a conventional strike against ISIS. One would think that if ISIS was able to bring down the Russia plane over Egypt, hit at the heart of Hezbollah in Beirut and hit Paris within a few days, there must be a wide network of support behind it with significant links. 

There are still questions about which governments, corporations and varieties of businessmen still maintain indirect ties to this group that needs such cooperation to manage its considerable economic and strategic affairs. Similarly, there are questions about the US policy toward Syria that one the one hand, claims to be fighting to undermine ISIS, but on the other hand, it wants to bring Assad down and undermines Russia efforts to fight ISIS. Clearly, a coordinated policy between US-NATO with Russia, China and Iran could go a very long way to contain ISIS. However, this is not how US ideologues see the matter resolved; this is not what the defense contractors want, and this is not what the populist Republicans and rightwing media advocate. It makes sense that they keep citizens living in a state of perpetual fear as a means of imposing sociopolitical conformity amid a period when the socioeconomic gap has been widening on the US despite a modest economic recovery. Unless systemic problems of the Muslims – social justice issues - and the relationship of Muslim nations with the West are addressed, terrorism is a reality that will become more prominent in the next decade.   

Sunday, 8 November 2015

AFRICA in the 21st Century: Legacy of Imperialism and Development Prospects PART III: The New Scramble for Africa, Narcotics and Human Trafficking



 There is a 21st century version of "the scramble for Africa", a continuation of what started in the 19th century (1880-1914) by the Europeans who pillaged the continent's resources, systematically exploited its people, caused tribal and regional wars, destroying its culture; and all of it by invoking social Darwinism and other Eurocentric theories, including ethnocentrism and 'Exceptionalism', to justify white hegemony.  The new round of neo-colonial race to carve up Africa's lucrative agricultural lands, mineral wealth, fishing rights within its territorial waters also extends to its geographical location that makes it so convenient for South American cocaine trade through West Africa and heroin-cannabis trade through East Africa.

According to the World Bank (September 2010), more than 110 million acres of farmland (the size of California and West Virginia combined) were sold during the first 11 months of 2009. This was all in a mad rush of foreign private and government investors to secure cheap land (and labor to work the land), and all during the most serious economic recession in the postwar period. Between 1998 and 2008, the World Bank provided $23.7 billion for agribusiness around the world, much of it in Africa promoting what it calls 'efficient and sustainable' agriculture. Along with the erosion of subsistence farming that sustained families, there is the corresponding erosion of subsistence fishing owing to competition from European and Asian commercial fishing operations in coastal Africa. All of this is an integral part of the corporate control of Africa with the support of governments in the advanced capitalist countries and with the backing of the IMF and World Bank Group’s subsidiary agencies like the International Finance Corporation (IFC).

In 2010 the IFC has invested an estimated $100 million for agribusiness in sub-Saharan Africa, compared with merely $18 million per year in the previous decade. Naturally, IFC and World Bank investment which runs into the billions focuses solely on corporate agriculture that displaces the small farmer. This despite the advice from experts in sub-Saharan countries who argued that the best use of farmland is to distribute it to villagers (about 12 hectares per family) and give them the means to cultivate it to end hunger while also generating a potential surplus for trade. Foreign-owned agribusiness backed by their governments and international financial organizations such as the IFC produce commercial crops for export, while the native population remains poverty-stricken. It should be noted that foreign aid for Africa's agriculture dropped by 75% since 1980, thus creating the need for private foreign investment in the sector. This is all in the name of furthering the goals of privatization that Western neo-liberal push across the world with devastating consequences for workers and peasants.

In the last one hundred years, agriculture in the industrialized countries has undergone a revolution that has resulted in just a small segment of the labor force earning its living from farming, animal husbandry and fishing. Technology and science applied to the sector has raised production and made agriculture less labor intensive just as specialization and concentration has resulted in higher productivity. Modernization of the primary sector of production entails that large commercial operations in the primary sector of production, backed by favorable government policies, have taken over the sector that requires expensive agrochemicals and machinery, and a distribution network to secure steady profits. In Africa’s case, only large invariably foreign-owned commercial enterprises are able to operate under this model of development, forcing the small farmers and peasants into poverty.

With each recessionary cycle more small farmers in Africa and around the world are squeezed out of the business, while neo-liberal apologists not just in the corporate board rooms and the media, but in government and UN continue to sing the praises of large scale commercial operations as the panacea for capitalism. The transition from subsistence to commercial agriculture in first in Western Europe and then in US freed the surplus labor force for the manufacturing and service sectors of production. In the case of Africa, however, there is no manufacturing or service sector large enough to absorb the surplus labor force that is uprooted from subsistence farming and animal husbandry.
The assumption by governments, banks, and mainstream economists is that commercial agriculture in the form of agribusiness is a necessary development of modernization. Another assumption is that only large-scale agribusiness, which is subsidized by government and international organizations like the World Bank and IFFC among others, can meet the rising demand the world's rising food demand while keeping costs low. After all, manufacturing is just around the corner for Africa, although it promises to be the kind of manufacturing we have seen in Bangladesh and other south Asian countries where living standards are very low and working conditions very poor.

Given the trend toward corporate agriculture, in the last fifteen years, governments and private firms from around the world have been investing in sub-Sahara Africa because corporations chase the highest return for the lowest possible investment under the most favorable conditions to capital possible. Besides agribusinesses acquiring more land, banks, hedge and pension funds, commodity traders, foundations and individual investors have been buying land as part of portfolio investments for an average of $1 per hectare. This is in an attempt to cash in on low-cost land and labor amid a growing demand for raw food products and bio-fuels. 

The EU is hoping to reduce carbon emissions by using at least 10% bio-fuel of all fuel products by 2020. The US is aiming to reduce its foreign dependence on oil by 70% in the next 15 years. With the help of the World Bank and IFC, the EU and the US have been looking to Africa - more than 700 million hectares appropriated for agribusiness - as the continent to invest in bio-fuels; this at a time that the Europeans have also been eyeing Africa as the next frontier for solar energy. Latin America is also a target for bio-fuel and other agrarian investment, but Africa offers even more attractive prospects in part because of the Arab and Chinese interest as well.

In the past decade, India, China, Japan, and Arab countries have joined the 21st century scramble for Africa, in some cases because governments are concerned about soil, water, and natural resources conservation in their own countries. Private investors and governments are aggressively seeking to partition Africa's rich agricultural land as the cost of agricultural commodities is expected to rise once the current recession ends. Saudi Arabia has set aside $5 billion in low-interest loans to Saudi agribusinesses to invest in agriculturally attractive countries.  Another reason for the new scramble for Africa is because of what the UN Food and Agricultural Organization calls 'spare land', areas not under cultivation, or underutilized.

Developed countries have used Africa for its raw materials and as a consumer of imported manufactured products and foreign business services, but not as roughly equal trading partners as is France and Germany. Rather, Africa has been the victim of unequal terms of trade, and external control of its key extractive sectors. In short, Africa remains semi-colonial and continues to become increasingly dependent on developed countries for overvalued manufactured products and services while exporting raw materials at prices commodities markets in the West determine based on speculative interest. 

One is favorably impressed by the rhetoric regarding “sustainable development” that the media, governments, the World Bank, and even corporations promise as though such development translates into social justice. After all, the hypocrisy of corporate responsibility regarding the eco-system has been exposed repeatedly not just by oil companies operating in Nigeria, but even by Volkswagen as its flagrant scandal regarding emissions manipulation proved in October 2015. The EU and US quest for bio-fuel development in Africa, and for that matter in Latin America, has nothing to do with 'sustainable development' or engendering greater 'self-sufficiency' or helping to 'develop' Africa - rhetoric that the UN, World Bank, western governments and multinational corporations are using to make 'the new scramble for Africa' more palatable to the world. The rhetoric is obligatory to placate the masses to retain their trust in the corporate world.

Will the people of Africa solve the chronic problems of poverty and disease as a result of the exploitation of land and labor to satisfy the demand for food and bio-fuels in Western nations? Africa's food requirements will double in the next two to three decades, a point that foreign agribusinesses, governments and IFC and World Bank are using to justify the commercialization of agriculture under foreign ownership. In the process of the neo-colonial land-grab, evictions of peasants and small farmers, entire villages uprooted, civil unrest, and citizens' complaints of 'land grabbing' have been common. Protests owing to social injustice do not stop governments from approving agribusiness deals backed by powerful forces. One common justification used for the new scramble for Africa is that the acquired territories are not utilized or 'wasteland'. Governments often do not charge agribusiness for the water they use. Just a single agribusiness belonging to an Arab investor in Ethiopia, for example, uses as much water as 100,000 people - water of course is the most precious commodity in many parts of Africa. This is the reality of agribusiness and its role in drought-ridden East Africa. 

One reason for the rise of the informal economy that includes everything from hand-carved wood statues to cocaine from Colombia and heroin from Afghanistan using West and East Africa as hubs before sending the product to Europe is that the neo-liberal model of development has failed. In fact, it has failed so miserably that young impoverished Africans join rebel groups inspired by radical Islam or tribal loyalty. At the same time the combination of rebel activity, and violence linked to narcotics as well as human trafficking and weapons, also linked to radical Islam and tribal allegiances in some cases, is a reflection of a neo-colonial system, no matter the lofty claims by Western governments, NGOs, media, the UN and World Bank that they are looking after the interests of African people.

NARCOTICS TRADE IN AFRICA

Africa's structural problems have contributed to a thriving narcotics trade through the Western and Eastern areas because of geographical considerations. Given that in sub-Saharan countries the percentage of labor force involved in agriculture, animal husbandry and fisheries ranges from 50 to 75, the result of agribusiness is to create a larger percentage of wage laborers instead of engaged in the subsistence economy. A percentage of this population will choose to make a living in illegal activities – human trafficking, weapons, and narcotics trade; others in piracy, still others in the thriving teenage prostitution business that has a ready market around the world.
All of this is an integral part of an informal economy that according to the African Development Bank contributes 55% of GDP in the sub-Sahara region and accounts for 80% of the labor force. “Nine in 10 rural and urban workers have informal jobs in Africa and most employees are women and youth. The prominence of the informal sector in most African economies stems from the opportunities it offers to the most vulnerable populations such as the poorest, women and youth.” http://www.afdb.org/en/blogs/afdb-championing-inclusive-growth-across-africa/post/recognizing-africas-informal-sector-11645/

The UN Office on Drugs and Crime has been warning for many years that a number of West and East African countries are now immersed in the international drug trade, a reality that has consequences for criminal activity and the overall subterranean economy and politics of Africa.  Because the drug trade is so lucrative, the income it generates is often larger than the entire GDP of some African countries. This is the case with Guinea-Bissau where the cocaine trade amounts to more than $2 billion and where violent crime in this former Portuguese colony has been rising steadily.  The situation is not very different in Senegal where the airport at Dakar has been used to transport cocaine from Latin America to Europe.

While West Africa is a hub for cocaine from Colombia and Peru, East Africa is a hub for heroin and cannabis coming to the region from South-East and Southwest Asia by air and sea, often onboard vessels that transport legitimate commodities, and often owned and operated by European shipping tycoons and of course European banks to launder drug money. A number of Greek shipping tycoons have been linked to the illegal narcotics trade in Africa, but they invariably enjoy European connections for distribution and laundering of enormous amounts of money considering the street value is 20 times higher than its original value when the products land in Africa.  

While the drug trade may appear that it is outside the mainstream of economic activity, it actually operates under the same laws of capitalism and in practice under similar routines. The laws of supply and demand apply as does the cooperation of government, albeit at a sub-level of illegality through bribery no different than when a multinational corporation bribes officials. Moreover, just as the extractive industries drain Africa of capital so does the narcotics trade. People involved in this business are in fact businessmen running operations of an illegal product but observing all other rules of the market within which they operate and which makes no distinction between drug money and corporate money. The bottom line for Africa is that both the corporate and drug business result in taking capital out of the area and leaving behind all the social and political problems.

 The process of de-capitalization, especially amid recessionary cycles in the world economy as in the current case of depressed commodity prices, only increases the problems with the informal economy that is a mere extension of the overall outward-oriented dependent economy and a colonial remnant that gives rise to illegal activities. East Africa around the Gulf of Aden is already the pirate center of the world, and this in addition to the weapons and human trafficking trade. Everything from illegal handicraft items to diamonds and gold are illegally traded. West Africa is slowly transforming itself into the new world center for South American narco-traffickers. Guinea, Mauritania, Guinea Bissau, Ghana, Benin, Sierra Leone, and Senegal are among the most significant intermediary narco-traffic countries linked to the Colombia-Venezuela coca trade.

 In the absence of official cooperation, everyone from custom officials, port authority, police, army and navy, all the way up to cabinet officials, the drug trade would not be possible. In short, the drug trade in Africa is an integral part of the political system and informal economy that enjoys protection from a wide variety of players. This makes transport low-risk in comparison with the Caribbean. With Russia as a new player in the international drug trade and oligarchs behind the regime, the activity has increased in the last decade.
During the "just say No!" campaign of the Reagan era the US had the highest per capita use--US population was around 4% but consumed 25 to 40% of the world's illegal drugs--and this is not to say that a legal pill-for-everything panacea in the US is not at its root a cultural trait. Today, however, both UK and Spain surpass the US in per capita use of cocaine, and both countries along with Portugal and France are the major destinations for coca that comes from Latin America through West Africa. 

Anecdotal evidence suggests that Somalia, currently in the process of establishing a central authority, is host to widespread illegal transactions, including drug and arms trafficking. There are two important international airports in the region, servicing the capitals' of Ethiopia and Kenya, which are used as transit points for drugs. Both airports have connections between West Africa and the heroin producing countries in South West and South East Asia. There is also an increasing use of postal and courier services for cocaine, heroin and hashish. 

Heroin trafficking from Pakistan, Thailand and India to East Africa has been rising in the last two decades. Some of this heroin finds its way to West Africa that also exports to Uganda, Tanzania and Kenya through Ethiopia. Increasing number of Tanzanians and Mozambicans are involved in the trafficking of heroin from Pakistan and Iran, given that there the limited options in the formal economy. West African and East African drug syndicates are inter-connected as they are to smugglers from Latin America and South Asia, reflecting high level of organization.  

Considering that multinational corporations from Shell Oil to Siemens have a long history of bribing African officials as they do non-Africans, narcotics traffickers' mode of operation is no different than that of "legitimate" businesses. And if the opportunity presents itself to make a living why is "dirty money" any less valuable than "clean money," the latter of which seems to be less than $500 a year for most Africans? Judging on the basis of postwar recessions when per capita income has dropped as much as 50%, this means that in this current crisis Africa will not only suffer greater impoverishment than the rest of the world, but its economic problems will cause more ethnic and tribal conflict, more epidemics, more intra- and inter-continental emigration, and more political turmoil than any developed nation can expect. 

Such a climate is ideal for more piracy, more weapons and narcotics transfer, more human trafficking, and all of it part of the colonial and neo-colonial legacy of outward oriented economy benefiting the developed countries. Though the continent is in need of debt-relief and development assistance for the short-term, the solution for a small segment of unemployed and destitute young Africans is drugs, guns, and human trafficking that generates money, although most of that money does not stay in the region and creates violence that disrupts legitimate economic activity.

CONCLUSIONS


Using the pretext of “terrorism”, a guerrilla movement under the flag of jihadists in recent years, the West and pro-West regimes default all problems on such fanatics in Nigeria, Chad, Sudan, Somalia, Kenya, Niger, Cameroon, Mali, Uganda and Mauritania. In other words, the US and its European partners would have the public believe that for decades when there were no Islamic jihadists, sub-Sahara Africa under colonial and neo-colonial rule enjoyed social justice and upward social mobility under democratic regimes. Even more insulting is the implication that the Islamic militants are the cause and not the symptom of Western exploitation of Africa and that if they are eliminated the continent would have no problems. As counterproductive as jihadist warfare has been, and as futile in achieving its goals, it is not the cause but one more symptom of the neo-imperialist structure in the continent from Libya to South Africa, from Nigeria to Kenya.

Besides defaulting Africa’s problems on Islamic ‘terrorism’, there are also the advocates of the neo-Malthusian theory - too many people too few resources, rather than unequal income distribution. It is true that drought is a cyclical natural disaster in parts of Eastern and Southern Africa and generally a problem in a few other parts as well. However, does drought justify Malthusianism and does it explain structural impediments to African development? This is not say that a form of managed population control is not desirable, but this is a matter of resources and education for the general population. 


The social fabric disrupted yet again by 'the new scramble for Africa', continued political instability is a guarantee as much as a rise in crime and social unrest. Amazingly, the same institutions that contribute to Africa's devastation claim that they are acting in the name of 'progress, sustainable development and efficiency, helping to raise productivity and exports, to create jobs by bringing foreign investment,' etc.; the modern versions of "The White Man's Burden". The 'politically palatable' rhetoric of 'efficiency and sustainability' has resulted in an outward-oriented agrarian sector catering to foreign markets instead of inward-oriented economy designed to meet the rapidly rising population's food needs. In 16th century England, farmers switched to animal husbandry owing to rising demand for wool textiles. Peasants starved as the cost of grain increased, thus "sheep ate people". In this century, 'agribusinesses will be eating Africans'.

Apologists of agribusiness justify their support by various arguments including ‘no country has developed’ with two-thirds of its labor force living off the land and dependent on extractive industries. It is an interesting coincidence that just as sub-Sahara Africa has been targeted by drug lords in the last few years, it is also targeted by corporate farm investors whose mode of operation is to use the low-valued land and labor and corrupt public officials in order to serve foreign market demands. Rural poverty will rise as a result of foreign corporate investment in African agriculture.  Will the 'new scramble for Africa' by corporate investors and drug lords result in the elimination of famine and disease; will it result in higher rising living standards for the native population, or will it be another form of neo-colonialism in the name of progress?

Uniting and organizing at the grassroots to end racist neo-colonial exploitation whether in the form of the formal economy based on mineral and agricultural exports or in the informal economy that includes narcotics is the only solution for Africans. Working toward sustainable development can only come from indigenous movements that first change the externally-dependent political regimes and then undertake to change the social order that would engender economic growth under an inward-oriented model. Given the deep historical tribal and ethnic antagonisms in Africa for which westerners are largely to blame, and the even stronger western neo-colonial foundation that precludes horizontal development with the goal of raising living standards across the voard, the prospects of any of this taking place in the forthcoming decades is highly unlikely. Africa will remain the continent of contradictions with the world's poorest people, but some of the world's richest natural resources that foreign capitalists will continue to exploit.

Friday, 6 November 2015

AFRICA in the 21st Century: Legacy of Imperialism and Development Prospects PART II: China's Role in Africa



Is China threatening to displace the Europeans from Africa at some point in the second half of the 21st century, as the mass media in the US has been hinting since the global recession 0f 2008? Or is EU-Chinese capital so intertwined that what may be counted as China’s market share in Africa could very well be yielding profits for French, British and German multinational corporations? If capitalist China is such a threat to the West, why has the very Western World Bank been collaborating with China on a number of fronts? Is it merely the fear of the US that China as the inevitable number one economic power in the world will corner the most abundant and cheapest markets in Africa?

In 2010, the Wikileaks organization published the US concern about China helping to develop the infrastructure strategically in those countries in Africa where it plans to do business. Two things alarmed the US: a) no strings attached to infrastructural development, at least no direct strings as the US and EU always impose on the recipient country; and b) the clever way the Chinese are including the World Bank and European governments and EU-based multinational corporations. In short, China’s multilateralism as a strategy of secur5ing market share has been upsetting to American unilateralists who see a fiendish plan that would entail Africa transferring its historical dependence from the West to East. 

Another issue regarding China is the scope of its role in Africa in 2015, considering that the Western media present it as hegemonic and potentially threatening to “US and Western interests”, thus invoking national and trade bloc capitalism as a populist tactic. In reality, as we will see below, China currently has a small role while the Europeans, US and wealthier Gulf Arab states enjoying the lion’s share of the market.
What has alarmed the Western capitalists and politicians is the reality that African exports to China went from a mere 1% of world share in 2000 to 15% in 2012, and likely to continue rising for the indefinite future. Despite the inevitable cyclical economic slowdown in China, it is just as inevitable that by the 2030s we can safely predict much closer trade, investment and overall economic dependency of Africa on China. This in itself poses not just a threat to Western capitalism but to Western geopolitical designs on a continent with very rich in natural resources. Because the US does not compete with China in Africa using the same tools of economic integration, about the only response the US has is to flex its military muscle and secure as much as it can for US-based multinational corporations. 

Before we assume China’s role is benign, the issue of China as the panacea for Africa is one that many have emphasized, given that European and US economic, military and political roles throughout Africa have not resulted in improvements as judged by standards the West has been proclaiming – democracy, freedom, economic development and higher living standards. Some in and outside of Africa believe that China’s integration model which starts with infrastructural development that would help the domestic economy as well as forge greater regional integration while stimulating the export sector is promising. After all, the European imperialists had done nothing but pillage Africa from the start of the trans-Atlantic slave trade in the 15th century when the Portuguese landed until the more subtle late 20th century policies of assisting corporate exploitation of natural resources. Moreover, if China is so well integrated into the global economy and it is helping to forge a new integration model in Africa, this presents new opportunities for African counties, at least for those rich in natural resources. 

The bottom line is whether China will help Africa develop or merely perpetuate underdevelopment as did the Europeans and the US. Underdevelopment is a process just as development that takes place amid domestic and international political and economy dynamics. Development is not a matter of a country having a surplus labor force, or having near self-sufficiency in minerals and raw materials, or enjoying an infrastructure that can accommodate rapid development to buttress the capital-intensive export sector mostly of extractive industries.  Africa is one of the richest continents on the planet in natural resources and it certainly has a surplus labor force at the lowest cost on the planet in comparison with the other continents. Can Chinese investment do something with these cheap assets to help itself while also help Africa?

In order to secure a segment of Africa’s natural resources for its own growth and development at the lowest possible cost, China has been investing in the continent and counting on it for rapid export growth in the 21st century. Despite its rich resources and new investment from China as well as Gulf Arab countries, Europe and US, the persistence of underdevelopment in Africa defies logic at least on the surface beyond the GDP growth numbers and marginal decline in extreme poverty. Why is there reason to believe the Chinese will change a history of five centuries of colonialism and neo-colonialism?

One could argue that the structural causes have everything to do with the corrupt and incompetent political regimes combined with the uneven development complicated by the periodic famines and droughts in a number of sub-Saharan regions. Another argument that the apologists of globalization and neoliberal politicians make is that Africa has not fully integrated into the world capitalist economy, leaving much of its productive capacities underutilized or outside the domain of international trade owing to persistence of tribalism. Is Africa’s problem underutilization of natural resources or uneven terms of trade, chronic exploitation of low labor values, massive capital concentration in the hand of very few comprador bourgeoisie linked to foreign capital, and of course corrupt politicians that foreign corporations bribe to secure contracts.

Another issue that Western analysts are constantly making is that there is instability owing to civil conflicts in a number of countries, from Sudan and Nigeria to Central and East Africa where rebels are an obstacle to stability and development. In the Islamic countries north of the Sahara, there is the instability caused by jihadist elements as there is in the East; activities which also impact Africa more broadly. However, Jihadist conditions, as we will see below, are of fairly recent origin and even so a reaction to neo-colonial conditions, among other causes related to tribal and religious differences. If we were to sum up, the Western analysts conclude that the fault for the absence of development in Africa rests squarely with internal dynamics and has absolutely nothing to do with Western imperialism as a chronic presence. 

When we examine the lofty promises of growth and development by the UN, World Bank and Western governments whose only interest is to assist corporate control of Africa’s resources and market share the result is that by 1995 25% of the people in the sub-Sahara region had no job and were homeless. Even more alarming, Africa’s agricultural growth rates have been declining since 1965. From an annual average of 2.2% (1965-1973), to 0.6% (1981-85), per capita food production continued to decline throughout the 1980s and 1990s, necessitating four times as much food aid. Why is anyone surprised that there is the level of rebel activity, including Jihadist as of late, when the question really ought to be why is there not more such activity given these conditions that people in the West would not tolerate and demand change?

There are those who argue that China’s presence actually helps to tame the sociopolitical mood throughout the continent. China is investing in everything - Hydro-power, dams, water and sanitation, ports, railroads, roads, mining, timber, fisheries and agriculture. At the same time, France and the rest of Europe as well as the US and the rich Arab countries have been competing with China and want to maintain market share. What exactly this entails for the people of Africa and the development model that would eventually lift the majority of the people from abject poverty is another story. 

The Chinese are not in Africa to lift living standards for the population but to strengthen their global competitive position. China will need Africa’s raw materials, everything from foodstuffs to minerals in order to remain a global economic power in the 21st century.  China accounts for about one-fifth of the planet’s population, but it only has 6 percent of the planet’s water and 9 percent arable land, forcing its government to look outside its borders to sustain its growth and development. Just as Africa provided cheap raw materials and cheap labor for Europe and the US from the era of colonialism until the rise of China as a global economic power, in the 21st century it will play a similar role with China competing for Africa’s cheap raw materials and labor. Investment has risen from a mere 210 million in 2000 to 3.17 billion 2011 and it is expected to skyrocket.

Africa is the world’s fastest growing continent for Foreign Direct Investment (FDI), but it starts out at such low levels that it can only go higher. While historically FDI went primarily to the extractive industries, there is new emphasis on manufacturing with energy as a key industry where revolutionary methods could make a difference in bringing electricity to more people than ever and make manufacturing even cheaper.  The continent’s global share of FDI rose from around 3% in 2007 to 5% in 2012, a period of global recession. Among the top 25 countries in the world with the highest incoming FDI, Africa is nowhere to be found; and if it were not for South Africa, the continent as a whole would be at the very bottom along with some of the Eurasian countries. As miraculous as it may appear, China’s share of overseas direct investment in Africa is a mere $26 billion, while France and UK continue to lead in this category. On the other hand, few would argue that China is poised to impose economic hegemony of some type over Africa under an integration model presumably better than what the French and the British had imposed after decolonization. 

By extending concessional loans – more generous terms and longer term – to the tune of $10 billion amid the global recession of 2009 to 2012, China bought itself enormous influence without literally dictating terms down to the minute detail as do the IMF and World Bank. Chinese President Xi Jinping doubled the concessional loan commitment to Africa from $10 billion to $20 billion in the 2013-2015 period, and the Chinese EXPORT-Import Bank announced an ambitious financing program of one trillion dollars by 2025; something that could be scaled back owing to the slowing Chinese economy in 2015. 

Although Africa accounts for such a small percentage of Chinese global investment, Africa has been a top foreign aid recipient. Aid donors have always used it as a policy instrument and leverage in every respect to influence not only investment and trade policy of the aid recipient but defense and foreign policy as well. In providing various types of aid to Africa, from medical and humanitarian to debt relief and development, China is investing in fact investing in good will diplomatically as well as economically for the future market share that it wants in Africa.  

Can we expect from China what we have seen on the part of the European and US companies in Africa since the 1960s? From the early 1960s to the present, large foreign companies secure public financing for privately-operated projects that have been uneconomic across Africa. However, the foreign firms risk no capital of their own because their loans to finance their operation are guaranteed by their governments or developments banks, as are interest and profits.  Because most of the investment is invariably in mining and commercial agriculture, involving multinational companies like Monsanto, the Carlyle Group, Shell, and other Wall Street and EU giants, the goal is to strengthen the export sector by taking advantage of cheap labor without much benefit for the broader economic diversification in a continent desperate for greater self-sufficiency. 

Although China has followed this pattern, its focus on developing the infrastructure in a number of African countries has the potential of laying the foundations for a sustainable diversified inward oriented economy.  After all, China has provided assistance for schools and some textile factories, but it often labels loans as “aid”, and most of its investments go to those countries rich in natural resources. 

Foreign investment in Africa, under terms no developed country would permit is virtually unregulated, thus constituting a drain of natural resource wealth. Suffering the lowest labor values on the planet, Africa attracts foreign capital investment because it is the next frontier to realize high profits. Moreover, foreign capital flows because foreign businesses demand that African countries provide local financing under government-guaranteed loans and very generous terms that include profit repatriation, liberal terms on the environment, and minimal labor protection. 


According to the World Bank that has partnered with China on many projects, the goals in Africa include (i) accelerating industrialization and manufacturing; (ii) making special economic zones (SEZs) and industrial parks work; (iii) infrastructure and trade logistics, including regional integration; (iv) creating the conditions to accelerate responsible private sector investment, (v) skills development for competitiveness and job creation, and vi) improving agricultural productivity and expanding agribusiness opportunities.

These are indeed lofty goals, and one could argue that all countries undergoing industrialization had to suffer, so must Africa, despite its unique relationship with industrialized nations. If we analyze each of the above points that the World Bank has outlined, we conclude that the goal in Africa is to create a climate conducive to foreign corporate investment under the best possible terms. There is nothing about protecting workers rights, collective bargaining, livable wages, appropriate affordable housing, hospitals and schools, and above all under a political regime that respects human rights and civil rights pursuant to principles of social justice. The only concern of the investors, governments, and international organizations assisting them in Africa is the investment itself not the social, cultural, economic and political welfare of the people.
(PART III will follow, dealing with narcotics and human trafficking, among other issues )