THEME: AFRICA MUST CONTROL ITS RESOURCES, RESISTING G8 AND FOREIGN POLITICAL PATRONAGE 

From Cairo to Cape Town, from Dakar to Mombasa, Africa lies pregnant with Baby Greatness, Prosperity, Joy and Glory. Africa is a treasure land of vast uninhabited space, natural resources and human genre yet to find and reach its full potential.  In short, Africa is a treasure land waiting for discovery, development and ordering for the fullness of joy for her peoples and the human race at large. This simply means that Africa is loaded with treasures and power for possession.   

This state of affairs not only calls for a competent midwife, careful and efficient post-natal care, and proper grooming for full development and glory.  The development of Africa would require selfless and loyal leadership of vision, boldness and courage, spirited governance, direction, and management of processes. It may be apparent in this regard that the choice of midwife, the manner of post-natal care and direction of the developmental process require a clear and well-developed vision, well formulated plans and spirited and dogged pursuit of the said vision.  

As is already known, the treasures of Africa, spiritual, physical and humans have been the subject of much speculation and activity for centuries.  The recent developments in the post-colonial post-cold war era are no exception.  The wars and the economic and political turmoil of Africa speak loudly and clearly.  

But be it as it may, it is necessary to point out this one thing.  That Africa, traumatized by self-defeat, dociled by foreign domination and confused by world ideological campaigns, is waking up from her slumber, trying to find and steady herself on her feet. 

That being the case, it may be safe to state that the issue of vision, courageous and effective leadership, proper determination, direction and management of the developmental process is a subject of vital and critical importance for Africa, particularly in the context of the challenges of the global village. 

In other words, there is an urgent need for clear vision and well-determined purposeful action in the ordering, governance and management of the affairs of the nations and continents of Africa.  

Having regard to this, it may also be appreciated that the real challenges posed by the demands of the new world order of global capitalism being spearheaded by the IMF/World Bank consortium and World Political Direction supervised by the G-8 and the UN Security Council. These new developments do not merely pose challenges for the governments and people of Africa; they in fact create a not so conducive and healthy environment for the waking giant trying to find his feet. 

In fact, the global capitalism technology of bank loans, donor country aid and multinational corporate investment, oiled with NGO pain diffusing cost minimizing efforts, has proved most inappropriate for the conditions of Africa. 

Indeed, this pathway of development and progress is fraught with dangerous land mines and waylaying hidden daggers. 

Already, Africa has begun to suffer the weight and pain of the IMF/World Bank arrangements.  Global capitalism is demonstrably proving to be an animal difficult to handle by the ill-equipped governments, management, business and labor force of Africa. 

The basic problem with the global capitalism technology is that the visions for the nations involved do not originate from Africa so as to inspire proper identification and effective participation in the processes.  In fact, the plans and goals of the active players, the banks and foreign investor community do not actually correspond with the true aspirations and expectations of the peoples of the host countries. 

Because of this lack of meaningful integration of foreign investment with the development process as well as the lack of proper identification with the people, the system and technology adopted tend to separate the approving African governments from their people.  Not only that, but the system also works to instigate the human survival instinct and promote a culture of survival, inordinate ambition and self-projection among Ministers of State and Officials in the unstable waters of Africa.  The result usually is high scale corruption, the abuse of power and low-level meaningful integration of foreign initiated ventures into the economic development and social advancement processes. 

At the end of the day, the real returns from the ventures by definition go to the benefit of the foreign lending agencies, the multinationals, their governments and people.  Any economic and social benefits accruing therefrom for the poor nations are only incidental and, in any case, do not constitute the prime purpose of the investments.  Hence calls for special poverty alleviation measures, NGO’s, etc.  

In this respect, the IMF/World Bank consortium seems to be still struggling to find the right investment formula that will harmonize the objectives of the foreign investor community with the aspirations, natural desires and expectations of host nations and peoples. For example, environmental issues apart from the provision of basic needs such as water, food and shelter do not find their prime importance and priority place if at all, in the calculations of the principal actors in the game.  Any such developments are only trade-offs.     

Even investments in infrastructure suffer from this.  The foreign investors’ motivations are the often-touted conditions for attracting foreign investment, namely, cheap primary products, cheap labor and tax concessions. 

It is a matter of great ideological and propaganda scoop, the third world accepting and holding these conditions as sacred cows in attracting foreign investment.  This makes the poor of the world prey, always for the wolves and roaring lions of the rich.  

This arrangement has worked to compel African governments to look elsewhere for funds for social infrastructure.  The low revenue base and the foreign aid of conditionalities have inevitably proved very inadequate for the heavy investment needed for social infrastructure, education and health, water, power and shelter. 

Meanwhile, the African countries are being strongly persuaded to cut down public expenditure, release skilled labor from the public sector for the labor market, while keeping wages on hold, revoke subsidies, adopt trade liberalization and currency devaluation, the “classical” capitalist road map for development and progress.  

Yet this road is fraught with many pitfalls and dangers, the disruption of domestic/national wealth creation, falling food and industrial production, the displacement of labor and rising unemployment (the classical cheap labor mechanism), the destabilizing of production and economic performance as a whole.  In this regime, there is also growing dominance of services, deepening negative terms of trade, fleeing populations and brain-drain, rising social costs, all affecting living conditions and quality of life, causing threats to political stability, peace and progress.  

It is with this in mind that we view with great circumspect the New Partnership for African Development (NEPAD) being proposed for the waking giant. We are of the opinion that NEPAD, if not properly ordered and gingerly pursued, may well turn into an open-door policy for perpetual foreign economic and political control of Africa. By NEPAD, Africa seems to have bought the notion that Africa cannot make any progress outside economic and political alliance with others, the G-8 to wit. Hence, the argument that the time of aid is over. That Africa must this time open her doors for full access to her resources to the G-8.  

Now, since capitalism implies private investment and not public or government investment, it follows that the G-8 investment portfolio in NEPAD will be of private nature. If this proposition is accepted, we shall be creating a new world order of G-8 kingdom order, at least as far as Africa is concerned. The overly lopsided wealth distribution in the world is already complicating the head start advantage of the G-8 to its extreme. 

With that, the G-8 will by definition plant her feet firmly and squarely in the determination of the vision of Africa under construction, the process of development and social advancement consistent with the philosophy and practical demands of partnership. 

But it must be stated here that the victory of capitalism in the ideological war does not imply that Global Capitalism must be stage-managed, supervised and controlled by the G-8. If global capitalism stage-managed and supervised by the IMF/World Bank has had negative effects and is proving unacceptable to Africa and others, the salvation of the system cannot and should not be left to political patronage.  We contend that NEPAD in fact opens a door of political patronage which has a great potential for the take-over of the pie of Africa, both present and future by the G-8. 

The G-8 countries may employ their political, economic, financial and military might, to cause Africa to lose her control rights over her resources. 

The governments and leaders of Africa cannot leave the decision as to the vision and destiny of Africa with foreign partners, however well intended.  Africa’s developmental processes, social advancement and above all, the use and end of Africa’s resources and destiny of the continent and her peoples cannot be determined by a partnership meeting or conference of G-8 nations and a group of African nations, whether selected by the G-8, or nominated by all the nations of Africa, or the G-8 and ALL AFRICA seated at a table. 

Perhaps, it may be necessary to mention that the need for democracy and the rule of law in the affairs of nations and peoples is a universal human problem applicable to all the nations.  The Year 2000 US General Elections is a case in mind. 

Thus, be it as it may, moral strength and assistance given in this respect cannot justify the transfer of resources and the age-old imperial political patronage and economic control. 

In conclusion, we would humbly suggest that African countries approach the NEPAD negotiation table not only with a clear understanding of the strength and glory of Africa in her natural resources and the advantage of time but also have a clear Vision of Africa under construction.   

Africa must take full note of the political, economic and social implications in entering into a partnership at a time such as this when Africa is now trying to gain her feet.  African countries must not allow short-term political and economic considerations create a veil that will pare their vision for their countries and Africa in Restoration and Glory as a whole. 

In this connection, may we state that international trade and co-operation in resource exploitation and distribution is done and must be seen to be done from a point of strength and true and meaningful comparative advantage.  The present prey and victim system is unacceptable.  Africa must not seek partnership from a weak position. 

For example, the gold in the earth’s crust is of greater value than the machines and operational costs of mines.  Otherwise, the ventures will not be deemed profitable.  Thus, the ownership structure and financial arrangements to extract minerals should take account of both the value of the mineral in the ground, the short and long-term plans of the host country vis-à-vis the profit and revenue interests of the foreign partners. 

For example, the present “kalabule” control structure of commodity markets must cease. It must be remembered in this regard that historically, the G-8 countries have but little regard for the living conditions, well-being, development and aspirations of the people of Africa.  Indeed, the low-level incomes in Africa have consistently been preyed upon and exploited as a philosophy and practical policy orientation.  Thus, the prices of primary products have traditionally been kept low to keep faith with cheap primary produce, cheap labor, high returns, high profit, and high political weight. This system and mindset cannot change overnight. 

Meanwhile, marketing techniques, the demonstration effect of technological advances and the good life in the G-8 countries have been combined to extract further the rise in incomes resulting from ventures, thus expanding still further capital accumulation and gaps in income levels and standards of living. 

There is a great future for Africa.  Africa has virgin forests, minerals, vast populations, treasures of opportunities for high level returns on investment and golden market possibilities far greater and exceeding those prevailing in the G-8 countries. 

That is to say, the scale is balancing in favor of Africa. Africa should therefore not cheapen things with future sales of her resources mortgaging her future. NEPAD should not be allowed to turn Africa into the prairies of America or the virgin lands of Australia. 

At the best, NEPAD should concentrate on possibilities open with groupings such as ECOWAS and continental arrangements for the development and exploitation of Africa’s resources. There can be small, yet well-thought-out openings for foreign partners. Beyond that, Africa should step cautiously and guard towards the global capitalism tunes and music in general. 

Sharing Africa’s pie with other nations therefore should be reduced to what is needed to promote human co-operation, peace, and goodwill on Earth.  Whatever happens, let us not pay so dearly again for political patronage.  THERE IS HOPE FOR AFRICA. 

July 2002