The Ugly Face of Canadian Capitalism

Canadian mining corporation Kinross Gold recently suspended work at its Tasiast mine in Mauritania  to protest against an instruction from its government to desist from employing ‘expatriates’ who  had no permission to work at the mine.

Union officials complained about the gap in pay between locals and foreigners. “There are 2,600 Mauritanian workers employed by the firm of whom 1,041 are permanent, costing the company $36 million, while there are 130 expatriate employees who cost $43 million,” workers’ spokesperson Bounenna Ould Sidi told AFP. Further irritating its Mauritanian staff, Kinross mostly houses ‘expatriate’ managers outside the country, in the Canary Islands. As with many other Canadian mining companies in Africa, Kinross has paid the country little and was accused of corruption.

On three occasions over the past five years the mineworkers have withdrawn their labour in a bid to force the world’s fifth biggest gold mining company to respect previous commitments to improve their pay and conditions. In 2011 the local workforce was angered by the company’s refusal to transfer seriously ill employees to the capital Nouakchott. When Kinross laid off 300 workers at the end of 2013 the union claimed it was done in violation of the country’s labour law and that one of those dismissed was still receiving medical treatment for a workplace injury. Demanding government action, the laid-off workers protested outside the presidential palace in Nouakchott 300 km away. After a multi-day sit-in the police raided their makeshift camp, arresting a dozen and injuring a similar number.

In 2010 two Tasiast employees were arrested after dumping toxic waste in an inhabited area near the mine. There was no independent environmental assessment of the multibillion-dollar mine and the Toronto-based company failed to certify Tasiast under the International Cyanide Management Code, a voluntary agreement that allows companies to demonstrate their commitment to properly manage the poisonous substance.

Allegations of bribery have been swirling around Kinross’ Mauritania operations for years. Late 2015 the US Department of launched an investigation into “improper payments made to government officials” at Kinross’ operations in Mauritania and Ghana. MiningWatch Canada and French anti-corruption association Sherpa submitted a long report detailing allegations of bribery and corruption to the RCMP and called for the police force to investigate Kinross’ apparent breaches of Canadian anti-corruption laws at its Mauritanian and Ghanian mines. Adding to the Mining Watch/Sherpa report, France’s Le Monde quoted a former member of the company’s African legal department saying, “the level of corruption was becoming grotesque.”

In March of this year the Globe and Mail revealed that Kinross gave a US $50 million contract to a French/Mauritanian partnership even though their bid wasn’t the lowest. The Mauritanian company was owned by a former top government official and an internal Kinross document noted the company “took into consideration the stated preference of officials of the Government of Mauritania that the logistics contract be awarded to” the French/Mauritanian consortium.

When President Mohamed Ould Abdel Aziz criticized the company’s meagre payments to the treasury in 2013, Kinross reportedly hired a couple of his cousins to important positions. A 2013 Africa Mining Intelligence article detailed the close familial and political ties between Kinross and Aziz, who came to power by overthrowing the country’s first elected president in 2008.

Canadian ruthless multinational bullies workers, ignores environmental standards and ‘buys’ politicians.

http://dissidentvoice.org/2016/07/the-ugly-canadian-kinross-gold/

Canadian Colonialism

With a mere 0.5 percent of the world’s population, Canada is home to half of all internationally listed mining companies operating in Africa. Many companies based have even taken African names. African Queen Mines, Tanzanian Royalty Exploration, Lake Victoria Mining Company, African Aura Resources, Katanga Mining, Société d’Exploitation Minière d’Afrique de l’Ouest (SEMAFO), Uganda Gold Mining, East Africa Metals, Timbuktu Gold, Sahelian Goldfields, African Gold Group and International African Mining Gold (IAMGOLD) are all Canadian. Active in 43 different African countries, Canadian mining firms have been responsible for dispossessing farmers, displacing communities, employing forced labour, devastating ecosystems and spurring human rights violations.

Canadian companies loot (legally and illegally) African resources. Canadian mining companies have been accused of bribing officials and evading taxes. Last year TSX-listed MagIndustries was accused of paying $100,000 to tax officials in a bid to avoid paying taxes on its $1.5-billion potash mine and processing facility in Congo (Brazzaville). In April, a Tanzanian tribunal ruled that Barrick Gold organized a “sophisticated scheme of tax evasion” in the East African country. As its Tanzanian operations delivered over US$400-million profit to shareholders between 2010 and 2013, the Toronto company failed to pay any corporate taxes, bilking the country out of $41.25 million.

Canada’s paternalism towards Africans is deeply rooted in its  political culture.  Gripped by a desire to rid “darkest Africa” of “nakedness” and “heathenism”, Canadian missionaries helped the European colonial powers penetrate African society. In 1893 a couple of Torontonians founded what later became the largest interdenominational Protestant mission on the continent and by the end of the colonial period as many as 2,500 Canadians were proselytizing across Africa. Today, all the media-anointed Africa “experts” promote a similarly paternalistic version of ‘aid’ and largely ignore Canadian companies’ role in pillaging the continent’s wealth.

Recently, the Aga Khan Foundation Canada organized the World Partnership Walk in 10 cities across the country. In an article titled “How the World Partnership Walk” lets Canadians bring hope to African communities the organization’s International Development Champion, Attiya Hirj, writes about visiting Aga Khan Foundation and Global Affairs Canada sponsored projects in Tanzania and Mozambique. Hirj says her “trip really opened my eyes to what rural communities truly need, which is a sense of hope.” She suggests the situation can be remedied if enough Canadians come “together to fundraise and generate awareness through activities such as the World Partnership Walk.” There is no mention of the need for African resources to be controlled by and for Africans. Canadians concerned about African impoverishment should point their fingers at the Canadian firms controlling the continent’s resources and offer solidarity to those sisters and brothers fighting for African resources to be controlled by and for Africans.

http://dissidentvoice.org/2016/06/while-canadian-companies-exploit-african-resources/#more-62922

Canada, Another Plunderer of Africa

This blog has already highlighted the role of Canada in the exploitation of Africa’s natural resources:

http://socialistbanner.blogspot.com/2013/11/canadas-expanding-african-empire.html

http://socialistbanner.blogspot.com/2008/12/colonialist-canada.html

This article, ‘Harper’s Government Helping Canadian Mining Companies Plunder Africa’s Resources’, by the Canadian political commentator, Yves Engler, and it is well worth drawing attention to it.

The article begins:

 “Canadian policy in Africa can be summed up in nine words: Do what is good for Canadian-owned mining companies.

Despite rhetoric about aid to the poorest people in the world, the Harper Conservatives have worked assiduously to ensure that Canadian corporations profit from Africa’s vast mineral resources. Even widespread criticism of their operations has failed to dampen the Conservatives’ support for Canada’s many mining interests in Africa. Canadian mining companies have been accused of bribing officials, evading taxes, dispossessing farmers, displacing communities, employing forced labour, devastating eco-systems and spurring human rights violations.”

The articles ends:

“Canadian policy in Africa has become largely synonymous with the interests of Canadian mining companies. The Harper Conservatives have sought to ensure that the continent’s mining policy serves the interests of foreign corporations, the majority of Africans be damned.”

The full essay can be read here

Canada's expanding African Empire

According to Natural Resources Canada, a federal ministry, there were 155 Canadian companies with cumulative mining assets totalling more than C$31.6bn ($30.5bn) operating in 39 countries in Africa in 2011, the latest available figures. That was up from $26.9bn in 2010.

"Canada is a pretty large outward investor," says Pierre Gratton, president and chief executive of the Mining Association of Canada. "We're one of the larger players on the continent."

Canada's conservative Prime Minister Stephen Harper has negotiated investment promotion and protection agreements with a number of countries, including Benin, Cameroon, Mali, Nigeria, Senegal, Tanzania and Zambia.

In March 2013, Canada's government amalgamated the Canadian International Development Agency (CIDA), the arm of the government responsible for international aid, into the rebranded Department of Foreign Affairs, Trade and Development. But Stephen Brown, an associate professor of political science at the University of Ottawa, recently criticised the Harper government's move

“It does nothing to improve aid effectiveness," Brown argues. "It's really about rehabilitating the image of Canadian mining companies, distracting public attention away from their practices ... and transforming their image from resource extractors to humanitarian actors." Brown points out that 20 CIDA "countries of focus" have among the top 12 largest reserves of the six most important metals in the world.

Mining Watch Canada, an independent watchdog, cautions that there are very few laws governing the conduct of Canadian companies operating abroad. "In many instances, local governments simply do not have the capacity," Jamie Kneen, a coordinator for MiningWatch says. "There are serious risks for the environment and health of the nearby communities." While the Dodd-Frank legislation in the United States and the European Union's Accounting and Transparency Directives have put pressure on companies to disclose payments made to governments, no such legislation exists in Canada. For now, Canadian oil operations by firms including Canadian Resources and Sunco Energy in West and North Africa have remained largely below the radar.

canadian mining company's culpability

African Barrick, a subsidiary of Toronto’s Barrick Gold Corp. recently attained the news by shooting 5 African workers who had trespassed to collect bits of gold dust, something they regularly did to eke out their meager living.

Reporters who went there to get a story were promptly arrested by government authorities. The Toronto Star reporter was charged with having photographs (of the victim’s relatives) that were dangerous to the security of the country, and engaging in journalism activities without permission, found guilty, fined, and deported. Others were not so lucky. A Tanzanian MP was arrested and beaten for guarding the victim’s bodies at the morgue. Barrick claimed innocence of any police wrongdoings, “African Barrick Gold does not have any control or influence over police in this respect.” No arrest of the murderers has been evident or reported thus far. Paul Klein, founder of a firm that specializes in the field of corporate social responsibility, commented, "The paradox is that the mining industry is improving itself in terms of trying to mitigate their environmental impacts and to improve their social impact. Yet there is the perception that they still aren’t doing the right thing.”
One must wonder where this perception arises then. You can always trust the government to do the right thing, for capital, that is.

A few years ago, the Sudan government, operating with mining industry handouts, bombed children at "school" under a tree. Among the mining companies investors was the Ontario Teachers’ Pension Fund.

Cab-Ride to Capitalism: Servitude by the Majority

Socialist Banner thought it worthwhile to re-post this article from the magazine Socialist Standard .

It only takes a cab ride in a city to see which class has the most power and influence in capitalist society
Everyday taxicab rides may appear to be lacklustre experiences that are quickly forgotten. However, this might not always be the case. Sometimes our views of events may become clouded and we cannot see things for what they really are. However, after taking many cab-rides in an urban city, I began to see things in a different way. On one of my jaunts in a taxicab I decided to investigate what it is that made people come to developed capitalist countries from less developed parts of the world.

In speaking to a cab driver, who left Ethiopia to come to Canada, I found my answer. I asked, “do people tend to be more happy in Western societies than in Ethiopia?” He answered that, “Ethiopia was a poor country.” In his words I could see the influence capitalism now had on his life: he equated how much money one has to how happy they are in life. This is reminiscent of one of the trademark idioms of capitalism that money can buy happiness. This is now disputed even by some who are otherwise supporters of capitalism, but if it were wholly refuted then this could undermine the entire capitalist system. Unfortunately, many people do believe that money can buy happiness in the owning class and force those who do not make as much money into the service industry, which in its very nature seeks to serve the owning class.

Your life is influenced by where you are born

Your life is partly determined by where you are born. For example, if you are born in Ethiopia then your life will be determined by Ethiopian standards and culture. In the United States, Canada or the UK your life is determined by a more developed capitalist system. Someone may come from Ethiopia to experience the “freedoms” countries like these employ, but there is another factor at work here: class. It is easy to show that the system boasts of false promises: Sally wishes to go to university, but Sally’s parents cannot afford to pay for it because in the capitalist system one must pay for everything. Sally’s life path has now been influenced by what class she was born into. Therefore, what the Ethiopian will notice is that “freedoms” have a price and are largely determined by what class one is born into.

Along the same lines, immigrants often receive low paying work in the service industry once they enter the developed capitalist system and they can never afford the education to gain higher paying jobs. As a result they stay in the service industry their entire lives, being some of the most lowly-paid members of the working class of wage and salary earners. It is education and money that allows one to move up in a capitalist society but even if one is to move up the ‘social ladder’, it is only usually to a less badly paid section of the same subservient class.

Finding and maintaining a job is difficult enough for people in poor countries and therefore receiving an education is but a luxury. In fact, the cab driver I spoke to said that he was working to make sure that his daughter would be able to go to university. He has to spend his years driving a car all day long so that his daughter will not have to do the same job and will have a better future. If someone cannot improve their station in life because they have no money to begin with, they also cannot afford to improve their station through higher education. This means that they are left work for the class that owns and controls society. This is because capitalism is not really based on merit, but on how much money one has. This is irrational as merit should never have a price, it should be free and depend on nothing but itself.

The capitalist system is marketed on its promises of equality and freedoms through purchasing power. Prospective immigrants are given rhetoric about how capitalism makes anything possible – if one has money. However, nothing appears possible, let alone free and equal about the owning class being served daily by an exploited working class, who are actually the majority and whose freedom is rationed and limited by their pay packets and salary cheques.

Moreover, how successful you will be in life is largely determined by what class you are born into, and is out of your control. The cab driver from Ethiopia realised that he, or his daughter, would not be able to influence society in a poor country because all of the rich capitalist countries such as those in the G8 are the most influential and have the highest standards of living. However, even though he came to one of these developed capitalist countries, he will almost inevitably remain in the service industry for the rest of his life. This is because capitalism is not based on talent or merit like a truly equal system would be such as socialism where everyone would have an equal opportunity to pursue their true interests in life. In capitalism, your success typically still depends on how rich a family or area you are born into and what kind of a reputation it has. If you are unlucky and are born into the majority, the working class, it is likely that you will remain there to serve the upper class for the duration of your life.

Capitalism Promises Freedoms, But for Who?

It is taught in school that capitalist countries are mosaic countries, small units of various cultures existing within a larger schema or government. This view is marketed so that potential immigrants will not have to leave their customs behind and still be able to reap the so-called rewards of capitalist society. In reality, what exists is a melting pot where these cultures are eventually assimilated. The opposite of a mosaic, melting pot, a term with a negative connotation, is often used to describe societies experiencing large-scale immigration from many different countries that seem to “melt” into the existing society. For example, Muslims are being assimilated into Western culture by way of developed capitalism. Only those who assimilate into the capitalist system are able to experience the "freedoms" it promises, but at often cost to their culture. It follows that people who come to developed capitalist countries work to serve the needs of the majority, who are of a different culture, often by forgoing their own so that they might fit in the prevailing market-driven norms.

Two of the most prominent examples of the melting-pot theory are the African Americans who were enslaved by white people through trade and the Native Americans who were wiped out, enslaved or displaced during European colonization. Though these cultures, mainly the African Americans, regained somewhat of their dignity many years later, they still lost the connection to their homeland, lost their culture and were forced to “melt” into the capitalist system.

The natives of North America are an example of not only assimilation to benefit the capitalist class but of the deception of such a system. The natives did not have money or a use for money until the European settlers arrived. These initiated trade and the natives would work hard to gather furs. They would sell their furs, specifically beaver pelts, which were very expensive items in European society at the time. In return they would receive trinkets such as forks as well detrimental items like firearms and liquor. Further, the economy that was run during colonization was one that the Europeans implemented and operated themselves, i.e. capitalism. Also, when the natives finally became wary of the situation, they lost their land. Treaties for land exchange were deceitfully created in a language foreign to them so that they could not have possibly known that they were signing away their land. They were taken advantage of and most importantly, lost their autonomy and freedom. Additionally, the native clans that do remain in North America are being assimilated, or waiting to be assimilated, into society. One way where this can be seen is through the media impact on younger generations who are lured into Western society with its market-driven imperatives and away from their cultural heritage.

Servitude

It seems almost unbelievable to think that servitude exists today in a society that is supposed to be ‘meritocratic’. This is because it is unnecessary that there should even be a servant class in society at all, even if the modern form of slavery is wage slavery.

There is no doubt that if one were to ask the Ethiopian cab driver if he would drive a cab all day if he didn’t have to, he would say no. The majority of people work unsatisfying and unchallenging jobs in the service industry and this is not necessary. It is socially demeaning and it is servitude, plain and simple. Capitalism has wrought its negative influences on the African Americans and North American natives. These people were exploited and subordinate classes until they melted into the capitalist society causing social alienation and loss of cultural identity. Further, those that work in the service industry today are not far off from these fates. Their lives may be better now that they can purchase “freedom” but it is at a great cost to their dignity as they spend their lives in servitude based on the amount of money they (do not) have instead of what talents they possess. Moreover, it only takes a cab ride in a city to see which class has the most power and influence in a capitalist society and chances are it isn’t the class of the Ethiopian behind the wheel.

JESSICA FORDHAM (Socialist Party of Canada)

colonialist canada

Canada is now a superpower in the African mining sector. According to the Ministry of Natural Resources Canada , only the Republic of South Africa, with over 35% of assets and investments, is just ahead of Canada in the African mining industry. But with South Africa’s assets concentrated on its own territory, Canada dominates the rest of the continent. In 2001, Canadian companies have operations in 35 countries . 91% of Canadian investments were concentrated in eight countries, with the order of countries’ importance being the following: South Africa (25.6%), DR Congo (17.8%), Madagascar (13.8%), Zambia (9.9%), Tanzania (9.5%), Ghana (6.5%), Burkina Faso (4.7%) and Mauritania (3%).
Africa represented 11% of Canada’s US$25.8 billion in cumulative mining assets in 2001, a proportion which had risen to 17% of the total $85.9 billion in the same assets by 2007.

Canadian diplomacy is very much at the service of business interests . In this regard, the country at times pursues objectives seemingly at odds with its development agenda, some examples of which include:

-In 1996, the Canadian High Commissioner in Tanzania intervened on several occasions to influence revisions to mining legislation as a means of promoting Canadian business interests. And, specifically, in order to counter the legal claims of local miners questioning the legitimacy of the mining company Sutton and designs on Bulyanhulu deposits
- In June 2008, the staff of the very same High Commission energetically intervened in Tanzanian parliamentary affairs to ensure that the country’s politicians rejected the conclusions of the Presidential Mining Sector Review Committee on revisions of the mining sector. The Committee had recommended a greater proportion of profits generated by higher prices be kept for the country itself
- In 2004, Canada’s ambassador to the United Nations had criticised a part of a report produced by the Panel of Experts on the Illegal Exploitation of Natural Resources in the DR Congo, in which nine Canadian companies were accused of violating OECD (Organisation for Economic Co-operation and Development) guidelines during the country’s protracted war.

Canada’s image as a moderate country and disinterested development partner in Africa is now thoroughly outdated.