Wednesday, June 22, 2011

No Benefit from Growth for the Poor

The high economic growth enjoyed by many African states during the 2000s have not led to poverty elimination. This is because the growth did not happen in the sectors where poor people work, as in agriculture, or in the rural areas where poor people live, or simply did not involve labour provided by poor people.

Economist Jan Rielaender explained good economic performance due to investment in oil and other extractive industries has had little effect on poverty. Around 75 percent of foreign investment in Africa has been in oil-rich countries and in so-called extractive industries with few links with the rest of the domestic economy or with poor people.

From 2001 to 2009 only three of the 14 African countries, where the annual gross domestic product growth rates were higher than the regional average of 5.3 percent, registered substantial poverty reduction rates.

The African continent registered a growth rate of 4.7 percent in 2010, and is estimated to rise to 5.0 percent in 2011.
"This is good news for Africa, but not good enough for millions of people who are yet to feel the benefits of prosperity in their daily lives," a joint report released last month, the U.N. Economic Commission for Africa (ECA) and the African Union Commission said

Monday, June 20, 2011

can't pay - can't eat

Oxfam's Pan Africa Director from Kenya, noted that Africa is capable of producing enough food to ensure all of its citizens have enough to eat. Yet in many African countries prices are already at an all time high and even staple foods are unaffordable to many people.

"Food is about power - those with power and money can eat, those without cannot. Africa is abundant with resources, yet governments fail to invest effectively in its biggest resources - its people and its land," Irungu Houghton said.

Oxfam's campaign laid out key areas for Africa's movement to achieve food independence and feed a growing population. These include stopping "land grabs" by rich nations, trans-national corporations and local elites which the aid agency noted are giving away the key resources that the people of Africa need for food production. Women and other small-scale producers it says must have stronger rights to land and resources. According to the report land rights are of particular concern in Africa with fertile farmland and grazing land often being given over to corporate interests and used for tourism, large-scale agriculture for exports rather than feeding local people.

Sunday, June 19, 2011

Ghana - bling versus blight

Ghana's Gini coefficient – a measure of income distribution in which zero indicates perfect equality and 1 corresponds with perfect inequality – is 0.41. Ghana is one of the world's most unequal countries and the inequality is worsening. Under Ghana's new status as a Middle Level Income Country is the fact that most of the benefits of the economic growth over the years have gone to a fairly small elites that live in places like East Legon and Airport Residential Area, with ritzy surroundings inside walled enclaves. It is easy to see the latest expensive cars roaming around and the floating of the famed African bling.

Inequality among Ghanaians is seen more at the country being at the 130th position of the 2010 UN Human Development Index ranked among 169 countries for their wellbeing. Though Ghana is at the medium human development, issues of life expectancy, literacy, education, child welfare, healthcare, energy, access to water, toilets/sanitation and general standards of living aren't equally distributed. The human wellbeing inadequacies do not affect the rich who can easily afford the basic necessities in life and can easily send members of their families abroad for better services. That makes Ghanaians unequal.

Polls from Gallop revealed that since 2008, 12.7 million Ghanaians, who represent 53 percent of the 24 million population, “cannot afford the cost of food …Those who admit to living comfortably have dropped from 20% in 2007 to 4% of the population in 2010. In 2007, 11 percent of Ghanaians said they were suffering under severe economic hardships.”

The Sub Metro Director of Okaikoi South, an Accra subburb, Nathaniel Adzotor, says “about one-third of residents in Accra live in slums and as a result do not enjoy adequate social services.”
Only 13 percent of Ghanaians have access to toilets. In Accra, the capital, 90 percent of its population have no access to toilets. As of 2009, life expectancy at birth is about 59 years for males and 60 years for females with infant mortality at 51 per 1000 live births. In a country of 24 million, there are only about 15 physicians and 93 nurses per 100,000 persons. Press reports say there are only four psychiatrists in a country of 24 million. In most rural areas, there are no medical doctors and medical facilities aren't there.

There are the new found oilfields, which may contain over 3 billion barrels of light oil. Hess Corp announced that it has hit oil and gas deposits off the coast of Ghana. Earlier, Texas-based Kosmos Energy had discovered more oil and gas at Cape Three Points. The expanding oil and gas finds are gradually positioning Ghana as major oil and gas producer. But how majority of Ghanaians will benefit from the oil and gas find depend on the degree of democratic growth.

Monday, June 13, 2011

surviving childhood

A third of youngsters in Sierra Leone are underweight and another third have stunted growth. Poverty plays a big part.

In 2008, a demographic health survey suggested one in seven (140 per 1,000) died before the age of five.

Pneumonia and diarrhoea account for 40% of child deaths in Sierra Leone, vaccine-preventable infections.

http://www.bbc.co.uk/news/health-13740128

Sunday, June 12, 2011

There Is No Idle Land In Africa


Vandana Shiva puts it, “We are seeing dispossession on a massive scale. It means less food is available and local people will have less. There will be more conflict and political instability and cultures will be uprooted. The small farmers of Africa are the basis of food security. The food availability of the planet will decline.”

The new scramble for African land has visited a multitude of problems on ordinary Africans and set the stage for ecological crisis and widespread hunger. African governments have falsely claimed that land available for sale is unused. Some defend the investors' acquisition of land in their countries, saying it is “virgin” or “under-utilized” or “uncultivated” or “degraded” land.In many cases, farmers and pastoralists have worked the land for centuries. However, governments are claiming this land is idle in order to more easily sell or lease it to private investors. Experts in the field, however, affirm that there is no such thing as idle land in Africa. According to Michael Taylor, a policy specialist at the International Land Coalition, “If land in Africa hasn't been planted, it's probably for a reason. Maybe it's used to graze livestock or deliberately left fallow to prevent nutrient depletion and erosion. Anybody who has seen these areas identified as unused understands that there is no land…that has no owners and users.” The land has a real purpose: it may support corridors for pastoralists; provide fallow space for soil regeneration; provide access to limited water sources; be reserved for future generations; or enable local farmers to increase production. The fact that rich and emerging economies do not have or do not respect pastoralists or use land for age-old customs does not mean we have a right to label this land unused.

Large-scale land acquisition poses massive ecological threats to the African environment. The dangers are numerous: hazardous pesticides and fertilizers cause water contamination from their runoff, the introduction of genetically modified seeds and other problems. Land previously left to lie fallow is now threatened with overuse from intensified agricultural development, a trend further exacerbated by speculative investment and the drive for short-term profits. Yet deals transferring vast tracts of land are typically taking place far removed from local farmers and villagers with virtually no accountability.

Investors have been quoted as saying they will employ 10,000 people and use high-tech, high-production farming techniques. The two promises are completely incongruous - high-tech, high production devices are appealing precisely because they reduce labor. Investors will not hire significant numbers of people and simultaneously scale-up their production techniques. And if they choose the former, they are likely to create low-paying jobs and poor working conditions.

Nations with large amounts of land sold or leased to foreign owners are often food importers, and their inability to feed their own populations is exacerbated by the displacement of food producers who grow for local use. The UN Conference on Trade and Development (UNCTAD) reports that Africa has lost 20 percent of its capacity to feed itself over the past four decades. Ethiopia alone has 13 million people in immediate need of food assistance, yet its government has put over 7 million acres of land up for sale.
From here

Saturday, June 11, 2011

the health exodus


The global shortage of health workers is estimated at 4.2 million by the World Health Organization (WHO), but the migration of doctors, nurses, midwives and pharmacists from poor to rich countries means the shortfall is not evenly distributed - of the 57 nations identified as having reached a crisis point, 36 are in sub-Saharan Africa.

In some countries with fragile health systems and heavy disease burdens, over half of all highly trained health workers have left for job opportunities abroad. In some of the worst cases rural hospitals have been left with just one doctor and a handful of nurses to attend to thousands of patients. Skilled professionals whose salaries are so low that they have to struggle to make ends meet will obviously look for better paying opportunities elsewhere, either in the private or NGO sectors, or overseas. Some have pointed out that the Global Code of Practice, as well as other interventions designed to reduce health personnel migration, infringe on the right of health workers to leave their countries like any other workers in search of a better life. Martha Kwataine of the Malawi Health Equity Network described it as a potential abuse of human rights. “Why should we make agreements just for health workers?” she said. “As human beings, they have a right to seek employment where they want.”

More money is not usually enough to keep an overworked, under-supported nurse in a rural clinic where she lacks the essential drugs and equipment to do her job properly, there are no good schools to send her children, and no opportunities for further training or career advancement.

“One of the biggest de-motivators - if you’re trained to provide care and save lives - is to find yourself in a remote, under-resourced location and your hands are tied by a lack of equipment, personnel and drugs,” said Dr George Pariyo of the Global Health Workforce Alliance.

In South Africa there are about 67 doctors per 100,000 people, but only 22 of those work in the public sector and a mere 5 are in rural public health facilities, despite the introduction of special allowances for health professionals working in rural areas.

http://www.irinnews.org/Report.aspx?ReportID=92949

Thursday, June 09, 2011

south africa grabs the congo

Land concession agreements have proliferated across Africa and elsewhere, leading to concerns that the promised benefits for locals - especially jobs - are never realized, while potential environmental and political damages are undersold. A 2011 World Bank report studied the increasing number of land deals from the past two years and concluded that "the risks are often large. Case studies demonstrate that even some of the profitable projects do not generate satisfactory local benefits, while, of course, none of the unprofitable or non-cooperational ones do."

"Congo has been waiting for an investment initiative like this, the creation of thousands of jobs. More than anything else, the country is expecting abundant food since the South African farmers will produce crops and raise livestock,"
said Minister of Land Affairs and Public Domain Pierre Mabiala.

40 South African farmers are leasing government-owned land for 30 years, with the provision to extend it for two terms. The farmlands include 63,000ha in Niari and 17,000ha in Bouenza, in the southwest.

Arable land occupies just 11 per cent of the Earth’s surface at present. As James Heartfield has argued ‘Between 1982 and 2003, national parks grew from nine million square kilometres to 19million, 12.5 per cent of the earth’s surface – or more than the combined land of China and South-East Asia. In the US more than one billion acres of agricultural land is lying fallow.’ In Europe, farmers have received payments to not grow food - ‘set-aside’ (although the practice has effectively been suspended since 2008, after food prices rose sharply that year). Meanwhile, developing countries are starting to act to turn once-infertile land into farmland. In Brazil, a huge area of dry savannah called the cerrado has been converted into productive land. The amount of land we have available for food is flexible.

There are 10 to 12 million hectares of land with agricultural potential in Congo, according to government data, but only 2 percent is farmed.

Wynand du Toit, vice-president of the Association of South African farmers who signed the deal explained "Our priority is to help produce enough to feed the country - we are not looking at exports for at least two or three years and then only if we produce a surplus which we cannot sell to the domestic market. If we do end up producing more than we can sell here then we might consider selling to neighbouring Gabon and the Central African Republic." Du Toit said the farmers viewed the acquisition as a business venture, and a way of diversifying investments.

Critics say bringing in foreign farmers is not the way to address food insecurity in the country. "We don't actually need operators or farmers from elsewhere to nourish us. We have a clear problem: our authorities do not assist our own farmers as they should," complained Dieudonné Mingui, head of the NGO Initiatives for Development and Progress. "Farmers right here don't lack initiative, they lack the means to develop large projects,"

Joseph Moutanda Kassao, president of a cooperative of 320 growers based in Brazzaville said "If the South African farmers are really coming to produce and sell all the produce on the local market, it's a good thing. But if they're coming for their own interests, it will be a shame...Let's wait and see."

Lets wait and see...can the capitalist leopard change its spots?

MORE ON LAND GRABBING

Once again Socialist Banner reports on the Great Land Grab of Africa. "The same financial firms that drove us into a global recession by inflating the real estate bubble through risky financial manoeuvres are now doing the same with the world's food supply,"

Hedge funds are behind "land grabs" in Africa to boost their profits in the food and biofuel sectors, a US think-tank says.

The Oakland Institute said hedge funds and other foreign firms had acquired large swathes of African land, often without proper contracts. It said the acquisitions had displaced millions of small farmers. Foreign firms farm the land to consolidate their hold over global food markets, the report said. They also use land to "make room" for export commodities such as biofuels and cut flowers.

It said hedge funds and other speculators had, in 2009 alone, bought or leased nearly 60m hectares of land in Africa - an area the size of France. It added that some firms obtained land after deals with gullible traditional leaders or corrupt government officials. The contracts gave investors a range of incentives, from unlimited water rights to tax waivers.

"The research exposed investors who said it is easy to make a deal - that they could usually get what they wanted in exchange for giving a poor tribal chief a bottle of Johnnie Walker whisky" said Anuradha Mittal, executive director of the Oakland Institute. "When these investors promise progress and jobs to local chiefs it sounds great, but they don't deliver.

"No-one should believe that these investors are there to feed starving Africans.These deals only lead to dollars in the pockets of corrupt leaders and foreign investors," said Obang Metho of Solidarity Movement for New Ethiopia, a non-governmental organisation in Addis Ababa.

In Tanzania, the memorandum of understanding between the local government and US-based farm development corporation AgriSol Energy, which is working with Iowa University, stipulates that the two main locations – Katumba and Mishamo – for their project are refugee settlements holding as many as 162,000 people that will have to be closed before the $700m project can start. The refugees have been farming this land for 40 years.

In Ethiopia, a process of "villagisation" by the government is moving tens of thousands of people from traditional lands into new centres while big land deals are being struck with international companies.

The largest land deal in South Sudan, where as much as 9% of the land is said by Norwegian analysts to have been bought in the last few years, was negotiated between a Texas-based firm, Nile Trading and Development and a local co-operative run by absent chiefs. The 49-year lease of 400,000 hectares of central Equatoria for around $25,000 (£15,000) allows the company to exploit all natural resources including oil and timber. The company says it intends to apply for UN-backed carbon credits that could provide it with millions of pounds a year in revenues.

In Mozambique, where up to 7m hectares of land is potentially available for investors, western hedge funds are said in the report to be working with South Africans businesses to buy vast tracts of forest and farmland for investors in Europe and the US. The contracts show the government will waive taxes for up to 25 years, but few jobs will be created.

"The scale of the land deals being struck is shocking" said Mittal. "The conversion of African small farms and forests into a natural-asset-based, high-return investment strategy can drive up food prices and increase the risks of climate change."

This is what Marx described in Capital in 1867 as "primitive accumulation" and as he it: "The expropriation of the agricultural producer, of the peasant, from the soil, is the basis of the whole process." Deprived of their land, their homes, their traditional surroundings and the protection of the law, the expropriated African farmers are left to sell the one thing they possessed - their ability to work.

As Honore de Balzac, the French novelist wrote back in the 19th century, “Behind every great fortune lies a great theft.” !!






Tuesday, June 07, 2011

Talking in comfort

Equatorial Guinea has built a multimillion-pound deluxe "city" to host African leaders while the majority of its people live in dire poverty.

Sipopo boasts 52 luxury presidential villas, a conference hall, artificial beach, luxury hotel and the county's first 18-hole golf course. It was built over two years to host an African Union (AU) summit that will last just a week. An official website says the complex also has a landing strip, heliport, hospital and buildings for banquets and events.

"It's definitely a misplaced priority by the Equatorial Guinea government," said Tutu Alicante, executive director of EG Justice, a group focused on human rights in the west African nation. "This is a country where 75% of people are living on less than $1 (60p) a day. This attempt to give an image of prosperity is totally misguided."

http://www.guardian.co.uk/world/2011/jun/07/equatorial-guinea-luxury-resort-sipopo

Monday, June 06, 2011

Walmart arrives

The South African government approved Wal-Mart's $2.4 billion deal to buy local chain Massmart, opening the door to expansion throughout the continent. Wal-Mart itself plans to expand deeper into the 53 other countries of the African continent. Critics say the move will cost thousands of jobs. South African unions announced plans to strike at Massmart stores. According to a government witness at the Com­petition Tribunal, shifting just 1 percent of Massmart's product line from local goods to imported goods would cost South Africa 4,000 jobs

The country’s largest union group, the Congress of South African Trade Unions (COSATU) said “Wal-Mart is more likely to destroy jobs by using its competitive advantage to force its competitors out of business” by selling goods made in “sweatshops by nonunion workers.”

"We've looked at Wal-Mart's record, we know their story in the US, and we know what impact they have on the employment, and on the market," says Christy Hoffman of UNI Global Union, the worldwide union federation representing 20 million workers, in an interview. "A lot of the evidence we submitted to the Competition [Tribunal] shows what is the impact of Wal-Mart in the communities where they operate, and overall there is a decline in wages, there is a slight decline in employment, and the supply chains are put under substantial pressure. Small and medium-sized businesses cannot compete with Wal-Mart." According to Ms. Hoffman, Wal-Mart essentially pulled out of the German markets because German authorities discovered that Wal-Mart was selling milk at below cost, and this was affecting other businesses. "They were told by the German authorities they couldn't operate this way in Germany, using their business model, so they left."


Saturday, June 04, 2011

IMF Kills

In Kenya, the IMF insisted the government introduce fees to see the doctor – so the number of women seeking help or advice on STDs fell by 65 per cent, in one of the countries worst affected by AIDS in the world.

In Ghana, the IMF insisted the government introduce fees for going to school – and the number of rural families who could afford to send their kids crashed by two-thirds.

In Zambia, the IMF insisted they slash health spending – and the number of babies who died doubled.

The Nobel Prize winning economist Joseph Stiglitz worked closely with the IMF for over a decade “When the IMF arrives in a country, they are interested in only one thing. How do we make sure the banks and financial institutions are paid?... It is the IMF that keeps the financial speculators in business. They’re not interested in development, or what helps a country to get out of poverty.”

In the 1990s, the small country of Malawi in south-eastern Africa was facing severe economic problems after enduring one of the worst HIV-AIDS epidemics in the world and surviving a horrific dictatorship. They had to ask the IMF for help. They said they would only give assistance if Malawi agreed to the ‘structural adjustments’ the IMF demanded. They ordered Malawi to sell off almost everything the state owned to private companies and speculators, and to slash spending on the population. They demanded they stop subsidising fertilizer, even though it was the only thing that made it possible for farmers – most of the population – to grow anything in the country’s feeble and depleted soil. They told them to prioritise giving money to international bankers over giving money to the Malawian people. So when in 2001 the IMF found out the Malawian government had built up large stockpiles of grain in case there was a crop failure, they ordered them to sell it off to private companies at once. They told Malawi to get their priorities straight by using the proceeds to pay off a loan from a large bank the IMF had told them to take out in the first place, at a 56 per cent annual rate of interest. The Malawian president protested and said this was dangerous. But he had little choice. The grain was sold. The banks were paid.

The next year, the crops failed. The Malawian government had almost nothing to hand out. The starving population was reduced to eating the bark off the trees, and any rats they could capture. The BBC described it as Malawi’s “worst ever famine.” There had been a much worse crop failure in 1991-2, but there was no famine because then the government had grain stocks to distribute. So at least a thousand innocent people starved to death.

At the height of the starvation, the IMF suspended $47m in aid, because the government had ‘slowed’ in implementing the marketeering ‘reforms’ that had led to the disaster. ActionAid, the leading provider of help on the ground, conducted an autopsy into the famine. They concluded that the IMF “bears responsibility for the disaster.”

Then, in the starved wreckage, Malawi did something poor countries are not supposed to do. They told the IMF to get out. Suddenly free to answer to their own people rather than foreign bankers, Malawi disregarded all the IMF’s ‘advice’, and brought back subsidies for the fertiliser, along with a range of other services to ordinary people. Within two years, the country was transformed from being a beggar to being so abundant they were supplying food aid to Uganda and Zimbabwe.

Subordinating the interests of ordinary people to bankers and speculators causeds starvation .

Friday, June 03, 2011

Knowing your enemy

The political uprisings that have taken place in North Africa and Syria bring to mind the political uprisings of 1848 in Europe – they are calls for political, social and economic reforms. The nature of all these political revolutions emerges from an economic background in which wealth exists side by side with poverty. That is to say that workers and students in oil-producing nations have risen against their aristocratic rulers demanding political freedom and economic empowerment. We in the WSM have come to notice one important thing from the nature of these political uprisings in Libya, Bahrain and Syria. Mass demonstrations that are not well equipped are being met with brutal resistance from the armed forces. This is a political lesson to those who advocate revolution through unparliamentary methods.

It is feared in Zambia today that if the Patriotic Front fails to win the presidential election (2011), mass demonstrations will take place. But mass demonstrations in Zambia are characterised by mob violence – stoning vehicles and looting private property. The Zambia police will react and innocent lives will be lost. To contemplate of a political failure in Zambia will in itself be a bad omen for parliamentary democracy conceived under multi-partyism. Political change brings with it social and economic collapse.

This was the case when the MMD came into power in 1991. The privatisation of the mining giant ZCCM has led to massive job losses and economic dislocation on the Copperbelt mining towns. New mining companies rely on foreign sourced labour and contractors. The new private mining companies create few jobs and are thus capital intensive. This is very common in Chinese-owned mines – walking in the Zambian cities today it is common to find that many educated workers and general workers have a natural respect for the British and white South African investors than with the Chinese. The Chinese have a habit of punching and shooting at striking workers. The labour relations in Chinese-owned mines remain very poor. Because nearly all the copper mining companies are owned by foreign conglomerates, the recent rise in copper prices on the London stock exchange has meant these favourable balance of payments have not translated into increased incomes and social development.
Indeed, structural unemployment exists on the Copperbelt when one looks at the kind of jobs being on offer on the labour market.

The ruling MMD is haunted by the political largesse of the late President Mwanawasa in the sense that President Rupiah Banda is expected to accomplish the political and economic benchmarks left by Mwanawasa. The fight against corruption and the implementation of a new and lasting constitution are among the foremost tasks Banda must contend with. But the rejection of a new Constitution Bill in parliament has sent wrong signals to the survival of the MMD. When the majority demand for political change at any price – parliamentary democracy remains very perplexing in the sense that a wrong leader may come to power was the case in Germany¸ when the Nazi Party come to power.

Though I may seem so hard in lampooning the political misfortunes of the MMD, yet we in the WSM do not envisage a political alternative to capitalism in Zambia apart from formulating the long-standing political and economic demand for an end to wage slavery and the exploitation of man by man. Personally, I find Banda to be an honest fellow trapped in the dirty politics of capitalism – dogged like everyone else by the brutal forces of ethnic and tribal loyalties. Power and wealth in most African countries remains under the legacy of conventional politics – politics is a crust of social and economic privileges.

In Zambia the political opposition parties have quickly likened the political events taking place in North Africa to the situation prevailing in Zambia today. Indeed there is a reluctance by the MMD leadership to resolve the 51 percent clause demanded by the majority in the New Constitution. By this means it is believed a presidential election needs to be re-run whenever a contender fails to win a 51 percent margin. The ruling MMD has deleted the clause from the proposed and amended Constitution.

Because Zambia will face a tripartite general election in 2011, the church and political opposition parties are demanding the setting up of a parallel voting tabulation (PVT) so that voters may know in advance who has won or lost an election. Banda has warned those advocating PVT in that it was illegal and was not enshrined in the current Zambian Constitution. The demise of the PF-UNDP political pact has given strength to the MMD – this must be glimpsed behind the ethnic and tribal loyalties that tend to determine voting patterns. The PF is strongly supported in Luapola, Northern, Copperbelt and Lusaka provinces. The MMD is widely supported in Central, Eastern and Western provinces. The UPND under Hakainde Hichilema remains strongly based in Southern Province. Recent parliamentary elections have seen the PF gaining a foothold in North Western, Eastern and Western Provinces. The ruling MMD, though crippled by corruption has done well in building new roads and opening up mines in rural areas. The PF has become the second and largest political party in Zambia today – and given the flamboyant personality of its leader Michael Sata, it may seem that many people in Zambia are interested in regime change in the sense that the MMD has been in power since 1991.

But what they do not contemplate is the plain fact that political and economic reforms being advocated by PF president Sata will evaporate into thin air once the PF comes into office. The voters are only used as cannon fodder by the political parties. The WSM remains politically defensive when dealing with amorphous political revolutions taking place in North Africa and elsewhere. Political revolutions do not change the existing economic and political status quo – it is a mere change in political bosses.
K. MULENGA, Zambia

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.

Wednesday, June 01, 2011

THE CHAINS TIGHTEN

China’s attraction to Africa is clear. Africa has great promise. It is well known that Africa is rich in a wide variety of minerals from oil to copper. Africa’s vast amount of land could fit the entire land mass of not only China but also India, the United States, Mexico, France, Italy and a number of other countries. Besides land, and more importantly, Africa has huge resources of water essential for bountiful harvests. China’s burgeoning economy is demanding more and more natural mineral resources whether it is oil, copper, nickel or gold. The demands of China’s more sophisticated diets means that imports of food is increasing as well. Africa’s exports to China are about 80 per cent raw materials like oil but increasingly it is also manufactured and agricultural such as Egyptian oranges, South African wines, Ghana’s cocoa beans, Ugandan coffee, Tunisian olive oil and more.

China is now Africa’s largest trading partner. Visit any shopping centre in any country in Africa and it is clear that China is flooding Africa with consumer goods, machinery, automobiles and electronic items. China has bilateral trade agreements with 45 African countries. Investment from China into Africa between 2003 and 2009 grew from $490 million to $9,300 billion.

http://www.businessdailyafrica.com/-/539546/1172524/-/nf8bog/-/

Tuesday, May 31, 2011

no money - no eat

This year at least 20 million people are suffering hunger in east Africa. From 2008-2010, the Red Cross launched four international appeals to respond to hunger in the Horn of Africa. However, a Red Cross review, highlights how such repeated large-scale appeals and relief operations are not the answer to addressing people’s food needs in the region. Hunger is a chronic and ongoing humanitarian issue in the Horn of Africa.

Distributing food aid, that is often purchased from abroad, is not usually the best option. Not only does this destabilise local markets, but is also costly and takes time to purchase and distribute. Repeated large-scale emergency appeals have failed to generate significant funds and in the current global financial situation it’s unlikely this will change any time soon.Repeated distributions of food aid every year do not help families get out of poverty – instead they lock them into dependency.

Socialist Banner reads that Mary Atkinson, British Red Cross economic security adviser, says “Most people living in hunger, even farmers, rely on purchasing most of their food. Food is usually available in the market but they cannot afford it, particularly now that food prices are so high. If they had more reliable sources of income, they often wouldn’t need to rely on food aid.” (our emphasis)
Cash is increasingly used as an alternative to food aid as it is easier and quicker to distribute and allows people to buy what they really need while supporting local markets.

rape is power

A new study published by the American Journal of Public Health indicates that nearly 2 million women in the Democratic Republic of Congo have been raped. Many rapes are a part of military operations, designed to terrorize and control the population. Rates of domestic rape and rape by civilians, however, also appear to be growing rapidly in the DRC. Last year, a study commissioned by Oxfam showed that incidents of domestic rape grew 17-fold between 2004 and 2008.

Dr. Guylain Mvuama, said the main reason rural Congolese women are such frequent victims of rape is simple. It is part of the war. Mvuama said armed groups raid and loot villages, raping women, children and sometimes babies or men to control the people though terror. The doctor says , what better way is there to keep everyone subdued, than to rape every man’s mother, sister or wife?

Congolese Army Colonel Seraphin Mirindi said soldiers still rape as a direct result of extreme poverty. Between low pay, and corruption among commanders, soldiers take home between $17 and $55 a month. About 30 percent of soldiers desert their posts, he said, and since they receive hardy any salaries, they also are immune from punishment when they leave. Most deserters, he said, also take their gun with them when they go and with almost no money, soldiers and deserters are tempted to rape because they are isolated deep in the forest, and cannot afford wives or prostitutes.

Attorney and victim’s rights activist Gilbert Kasereka
said that while soldiers do rape because they are isolated, poor or as part of an attack, many rapes also occur in Congo for more unusual reasons. With the absence of regular, informed medical care, many people believe they can gain power or good health by raping the young. Kasereka said some people believe military prowess can be derived from raping a teenager or someone who is an ethnic minority, like Congolese Pygmies. Others believe the rape of a baby will cure AIDs.

For some activists, no programs to reduce rape numbers will be completely effective without ending the conflict for good. They say as long as much of Eastern Congo continues to be overrun with militias fighting each other and the government, and battling for control of what is believed to be $24 trillion worth of mineral wealth under the ground, sexual violence will continue to be a fact of life.

Saturday, May 28, 2011

BEE in our bonnet

After 17 years of democracy and the promise of a land handover to blacks, only 7% of the land has been redistributed -- and it is said that 90% of agricultural development projects on this land have failed. It will take us at least 100 years at the current pace to return the promised 30% of land. At the same time farm workers are underpaid, overworked and suffer all kinds of gross human rights violations. The South African agricultural sector is driven by a racial feudal system under which black workers are mere ­factors of production and the environment is disrespected and harmed. This system can best be described as a commitment to the principle of "profits before people".

AgriBEE was designed to "bring in" black players to reap the benefits of slave labour. Conceptually AgriBEE was designed as a new avenue of accumulation by politically connected elites who skim the fat off the land. AgriBEE funds have been siphoned off through blatant corruption -- news reports have revealed how money meant for enterprise development has ended up buying soccer teams and being invested in golf courses. BEE has increasingly been associated with corruption. Corruption is not an aberration but a constitutive element of capitalism.
A related element of these legalised thieving practices is the general treatment of black workers, which has not improved under black-owned enterprises. Often it has worsened. Power relationships on farms have to be altered through the massive redistribution of land to the landless. The primary beneficiaries of the agricultural sector's transformation must be the farm workers to whom the Freedom Charter had promised that "the land shall be owned by those who work it". This transformation is impossible in the present frenzied state of white agricultural moguls, politically connected AgriBEE players and aspirants just aiming to make a quick buck.

20% of South Africans suffer an acute lack of food security. It highlights the priorities of the agriculture sector - maximisation of profit through exporting produce -- to the European Union and elsewhere.

Taken from here

Wednesday, May 25, 2011

“Blue Food Revolution”

“With Earth’s burgeoning human populations to feed, we must turn to the sea with new understanding and new technology,” Cousteau presciently predicted in his 1973 television show The Undersea World of Jacques Cousteau. “We need to farm it as we farm the land.”

According to the Food and Agriculture Organization of the United Nations (FAO), only about 2 percent of the world’s food is currently obtained from the sea with traditional marine fishing annually producing about 100 million tons. Simply maintaining current per capita consumption will require 1.6 million tons more fish every year by 2015, increasing to 4.2 million tons by 2030. Since 80 percent of the world’s fishing stocks are fully or over exploited, sea farming or marine aquaculture may be the only answer for filling the gap. Worldwide, half the fish consumed by humans are now produced by fish farms. Harvesting the sea is the fastest-growing form of food production in the world promising a “Blue Food Revolution” based upon greater productivity of the sea than that of land for feeding the future.

As a source of animal protein, farmed fish are a godsend in a grain-limited world. The estimated amounts of grain are far more economical for producing fish than for beef or pork and on par with that of chicken. Whereas seven kilograms of grain are required to produce each kilogram of beef, and four for each kilogram of pork, only two kilograms of grain are needed to produce one kilogram of either chicken or fish. In terms of how much of an animal is actually consumed by people, fish also trump: approximately 65 percent of the raw weight of finfish is eaten, compared with 50 percent of raw weight of chicken and pigs and 40 percent of sheep. This is because fish are supported by water so they don’t have to put as much of their growth energy into bone structure resulting in greater edible mass. Fish are also low in fat, cholesterol, and omega-3 fatty acids which helps reduce blood clotting and in turn the risk of heart attacks - all notable advantages over other meats.

300 million people, half living along the coast, populate the 16 states ensconcing the Gulf of Guinea and the livelihoods of millions are dependent on the fishing sector. Average per capita fish consumption is estimated at 20-25 kilograms, about double that of the world average, and marine fish provide over 80 percent of the supply. Annually, the region catches about 200,000 tons of fish, which is the same amount that it imports. Amazingly, there are no plans for the region to exploit its 2.6 million square kilometers of sea with a sustainable marine aquaculture industry. The Gulf of Guinea boasts one of the most bountiful Large Marine Ecosystems (LME) supporting significant biomasses of plankton, tuna, sardines, mackerel, shrimp and other species. However, the Gulf of Guinea’s LME is over-fished and terribly stressed creating a crisis for those who depend on fisheries for their livelihoods and jeopardizing food security for the region. j Since the Gulf of Guinea’s wild fisheries have reached or exceeded their maximum sustainable harvest, marine aquaculture should be given serious consideration for food security. Offshore marine farming operations contemplates cages deployed in pristine waters having optimum currents for cultivating “free range” fish not sequestered in polluted bays and estuaries. This concept softens the environmental footprint and reduces reliance on wild fishery resources.

By developing a modern marine aquaculture industry, the region could become a major producer of seafood for feeding its population and feed others. The Gulf of Guinea possesses the resources to capitalize on the sustainable Blue Food Revolution as its vast non-renewable petroleum resources are depleted.
http://www.ghanaweb.com/GhanaHomePage/NewsArchive/artikel.php?ID=208927

Protecting the oil

The Gulf of Guinea has emerged as the second largest pool of commercial petroleum resources in the world and recently surpassed the Persian Gulf as America’s largest supplier of crude oil. African oil tends to be of high quality, low in sulfur, and 2,000 miles closer to U. S. refining centers without maritime transit chokepoints. Unlike security concerns associated with Middle Eastern oil, offshore oil production is easier to protect from ground turmoil. Understandably, the Gulf of Guinea is a nexus of concern for U.S. energy policy since the region will supply 25 percent of its crude oil by 2015.

Just of few years ago, the U.S. military was all but absent from the oil-rich waters of West Africa’s Gulf of Guinea. This year, it plans to be there every day. Consequently, the Pentagon has forged both bilateral and regional military partnerships with every African nation in the region with the exception of the Ivory Coast. A report recommends the development of a “regional maritime security network” with U.S. and international security assistance efforts, including planning support, asset donation, and training. A regional maritime security network would help secure oil supplies in the Gulf of Guinea for quelling America’s concerns while strengthening cooperation and geopolitics for the region’s political stability and economic prosperity.
http://www.ghanaweb.com/GhanaHomePage/NewsArchive/artikel.php?ID=208927

Monday, May 23, 2011

Never a follower be

This article touches on a topic that Socialist Banner finds close to its heart (see here)

"Before we fix Africa, however, we must understand what ails it. The easy answer is always to blame the leadership we've had to date. Change our leaders, and we'll change Africa and give it its pride back. True, Africa's loss of pride is caused primarily by its grotesque leadership choices and its disdain for good governance and probity. But underlying all of those issues is a singular driving force. It is the one thing we need in order to get Africa's pride back, and it can be stated in two words: voter discernment. We are in the mess we are in because the average person does not have the faintest clue about selecting leaders. We elect and appoint leaders on the most spurious of grounds: that they come from around the same river we do; that they make loud noise and entertain us at rallies; that they throw money around; that they have big stomachs and big cars and big wives. In other words, it is not our leaders we should be most worried about; it is the choices made by their followers. Africa's leaders only reflect the values and wishes of most of its people...We need root-and-branch overhaul of governance systems. We need to run the election process with foolproof institutions. We need to install all the infrastructure that powers up and connects the scattered people of the continent. We need all that and more. But we also need to fix the human capital: we must make Africa's ordinary people wiser, more knowledgeable and more informed in the choices they make...Our leaders won't do this for us -- it is in their interest to have armies of idle, ignorant people available to vote as directed. It is in their interest to have unquestioning, sheep-like people at their disposal." writes Sunny Bindra

Each of us can be our own leader. The greatest command is that over oneself. The leaders we are asked to support, and sometimes choose between, are a myth, created and maintained by--leaders. They are poor examples of honesty, integrity, even of humanity. They are not interested in truth, justice, or any of the grand notions they spout about. They exist, have always existed, will always exist, for one purpose only: to line their own pockets and empty yours. They are parasites on the social body, unwanted, unnecessary and destructive. To follow leaders is to hand over your heart on a platter, with knife and fork attached. It is an admission of defeat, acceptance that you are inadequate, in and of yourself. It is an act of submission and indeed an act of cowardice unworthy of the human animal.
To refuse to follow leaders is a liberating step. Socialists are their own leaders, and they follow nobody but themselves. "Neither a follower, nor a leader be." So the next time you are asked to vote for a leader, do yourself a big favour. Don't.

Thursday, May 19, 2011

Poor in Nigeria

The National Coordinator, National Poverty Eradication Programme (NAPEP), Dr. Magnus Kpakol has disclosed that 80 million Nigerians from a population of about 160 million people live below the poverty line.

There are states where 12.5 per cent of children below 16 years cannot read or write


Wednesday, May 18, 2011

FLYING HIGH

Amidst plenty and natural endowment, Nigeria still accounts for the highest rate of people living below the acceptable poverty level in Africa. Rich Nigerians purchased six private jets worth a total value of more the $25 million. The acquisitions increased the number of private jets in the country to around 70, according to reporters. The luxury jets were bought by renowned individuals in the Area: Aliko Dangote, Mike Adenuga and David Oyedepo.
http://www.privatejetdaily.com/201105182486/latest/rich-nigerians-buy-private-jets.html

Thursday, May 12, 2011

The Rape of the Congo

A study by US scientists has concluded that an average of 48 women and girls are raped every hour in the Democratic Republic of Congo. The study, in the American Journal of Public Health, found that 400,000 females aged 15-49 were raped over a 12-month period in 2006 and 2007.

The highest numbers of rapes were found in war-ravaged North Kivu, where an average of 67 women out of 1,000 have been raped at least once. However, the report said sexual violence was also widespread outside the conflict zones of eastern Congo.Amber Peterman, leading author of the study, said:

"Our results confirm that previous estimates of rape and sexual violence are severe underestimates of the true prevalence of sexual violence occurring in the DRC.Even these new, much higher figures still represent a conservative estimate of the true prevalence of sexual violence because of chronic underreporting due to stigma, shame, perceived impunity, and exclusion of younger and older age groups as well as men,"

Wednesday, May 11, 2011

BANGLADESH GRAB THEIR PIECE OF LAND

The global food crisis of 2007 and 2008 had forced many governments of food deficit countries to redesign their food security strategies. And as a part of that strategy, they fixed their eyes on countries having unexploited or under-utilized vast tracts of fertile arable land as sources of food supply. Even affluent nations found it hard to import food for their populations as a number of countries, including India, Russia, Argentina and Vietnam, imposed ban on export of food grains in 2007 and 2008 when food prices in the international market had gone all-time high.

Land acquisition is not an entirely new phenomenon. The 19th century colonialism was all about taking control over land in other countries. And western food companies have owned or leased land in other countries for many years. But following the food and fuel prices shocks in 2007-08, less traditional actors -- companies from countries like China, Saudi Arabia, and South Korea -- have entered the race for growing food or fuel crops. State-owned or private investors from wealthy Arab and Southeast Asian countries, including Japan and South Korea and China, are now approaching many poor Southeast Asian and African nations in their quest for building up cooperative activities in the agriculture sector. Many investment banks, hurt by the crisis in the banking and property sectors, which were looking for new sources of investment outside the banking and property sector, saw opportunities in agricultural land markets, expecting the value of both food and fertile land to increase.

Bangladesh has set its eye on African land where millions of hectares of land have remained either fallow or highly under-utilised for decades after decades. A high-profile official team recently visited a number of African countries to explore scopes for sending Bangladesh manpower and expand areas of cooperation in various fields, including agriculture. The newly appointed ambassador of Bangladesh to Kenya prior to his departure for that country called on President Zillur Rahman last Monday and broke a piece of good news -- Kenya and Uganda have agreed to lease their land to Bangladesh government for farming. Kenya will offer land on lease for 99 years at a cheap price of 99 cents per bigha annually while Uganda wanted 20 per cent of the produce, no annual fees. No agreement between Bangladesh and two African nations have been signed yet. Prior to signing of the agreements, the policymakers here would have to examine a lot of issues, including those relating to sending of farmhands there and their security, input prices and the ways to bring home the farm goods produced in these countries.

http://www.thefinancialexpress-bd.com/more.php?news_id=135254&date=2011-05-11

Tuesday, May 10, 2011

food for thought

Agriculture is the mainstay of most African economies and experts insist that Africa has what it takes to produce food for its population of about one billion people and even export food to other regions of the world. The continent, which is blessed with good weather and geographical conditions, has the capacity to produce food to feed its inhabitants, all things being equal. Only 4 percent of the cultivated land in sub-Saharan Africa is currently equipped for irrigation. Nearly 90 percent of African food is produced from rain-fed agriculture. However, United Nations World Food Program on Thursday said it fears crop production in Africa will get slashed by 50 percent in less than a decade due to climate change. Just in the next eight years rain fed agriculture in Africa will be reduced by 50 percent.”

It’s often said that Kenya has potential to produce enough food for its population. A large part of the country is arable. It has the memory of what has worked or failed in the past, a sizeable amount of research findings, and a robust human resource base to meet the challenges involved in food production.

"Conservation agriculture is the core of climate-smart agriculture for both mitigation and adaptation," said FAO Senior Officer Theodor Friedrich. "And it is worldwide, growing exponentially." CA integrates technology in agricultural production and environmental management through three basic practices: crop rotation, maintenance of soil cover, and minimum soil disturbance. While the first two methods promote diverse and healthy produce, the third reduces manual and mechanical tilling and plowing, significantly cutting cost and consumption of fossil fuel. Friedrich explains that this practice mitigates climate change by sequestering carbon in the soil, thereby reducing greenhouse gas (GHG) emissions from the use of fossil fuel, fertilizers, and other agricultural inputs. CA features adaptive technology, including a water infiltration system that adjusts to extreme weather conditions. In dry periods, it reduces the water requirements of crops by 30 percent, enhancing soil fertility to withstand extended droughts. During rainy periods, this method facilitates the course of rain water to prevent soil erosion and flooding.

Fish stocks in West Africa are declining drastically. And local fishermen are finding it increasingly difficult to sustain their livelihoods or feed their families. The best fish ends up on European plates, while the rest is turned into animal feed or discarded as bycatch. One large trawler can carry 15 million meals’ worth of frozen fish to Europe while many Africans go hungry, unable to access the fish from their own waters. Local artisan fishermen in West Africa now find themselves competing against the largest of European trawlers. In one day, these massive vessels can capture the same amount of fish as thirty or forty traditional pirogue boats would catch in one year. These foreign fishing fleets then take their giant catch to ports far from Africa, making millions of dollars, while Africa's coastal communities struggle and grow poorer.

Friday, May 06, 2011

class in africa

One in three Africans is middle class, a rising group of consumers to rival those of China and India, researchers have found. Mthuli Ncube, the African Development Bank's chief economist said the study used an absolute definition of middle class, meaning people who spend between $2 and $20 a day. Africa's middle class had risen to about 34% (313 million) of the continent's population but of those an estimated 21% earn only enough to spend $2 to $4 a day, about 180 million people vulnerable to economic shocks that could knock them out of the new middle class. 61% of Africa's population living on less than $2 a day.

However, at the top of the pyramid, there exists an elite of about 100,000 Africans who possess a collective net worth of 60% of the continent's gross domestic product in 2008, the report said.

As some economists are prone to do , Ncube uses a consumption pattern to define class, claiming record numbers of people in Africa own houses and cars, use mobile phones and the internet and send their children to private schools and foreign universities. Sales of fridges, TVs and mobile phones have surged in virtually every African country in recent years, the report said. Possession of cars and motorcycles in Ghana, for example, has gone up by 81% in the past five years. The add lifestyle to the definition. The Africa middle classes are more likely to have salaried jobs or own small businesses. They tend not to rely entirely on public health services, seeking more expensive medical care. The middle classes tend to have fewer children and spend more on their nutrition and schooling.

Socialist Banner however uses the Marxian method of defining class and challenges the whole concept of a "middle class". Anyone with no other choice but to sell their physical or mental labour power in order to earn money which provides the means necessary to sustain living is, no matter what the difference in their salary/wages, job description/ responsibility, a member of the working class. Sociological definitions based upon cultural preferences, job types (professional, salaried or blue collar, waged), or number of TVs or cars owned in more likely to reflect a false consciousness of one's actual class position.

Thursday, May 05, 2011

biofuel ban

To overcome two of Africa's most urgent problems, food insecurity and hunger, some are arguing for a ban on the production of food crops for bio fuel.

"Yes, there are droughts and floods, and yes, war and civil unrest have had a big impact on Africa's food security...," said Peter Brabeck-Letmanthe, chairman of the board at Nestle, during the World Economic Forum on Africa being held in Cape Town. "But bio fuel also has an important role to play when it comes to Africa's and the world's situation with food insecurity and hunger, as a large part of the world's agricultural production is used for the manufacturing of bio fuel," he explained. "Currently, 15% of the global maize production is turned into bio fuel. The same counts for 21.4% of the world's sugar and 45% of rapeseed. In the meantime, millions go hungry."

Food prices are higher now than at any time since 1984. Higher prices make life even more difficult for Africa's poorest, who already spend between 60 to 80 per cent of their income on food. Faced with reduced access to food and increased vulnerability to the seasonality of local food prices and markets, households are forced into unavoidable compromises, such as choosing cheaper (often less nutritious) food, selling productive assets, withdrawing children from school, forgoing healthcare, or simply eating less than they need.

The gap between the continent's domestic food supply and demand will widen as global consumption patterns continue to shift towards more profitable bio-fuels which supplant food crops.

Saturday, April 30, 2011

can't pay , can't have

"Finding food to put on the table for the whole family is becoming a nightmare. Commodities are unaffordable as prices increase day by day. People in Kony Paco [a slum] are cutting their meals and staying hungry because the money can’t buy adequate food. I have four children and we live in Kony Paco. We have one meal of cassava and beans every day in the evening and even then the food isn’t enough. There is no breakfast and lunch for my children because I cannot afford to buy food for three meals.Even house rents have shot up. I don’t know if I will raise the rent of USh20,000 [$8.30] for next month. There is no money even to pay my children’s fees next term.explained Christine Amony who ekes out a living by selling bananas in Gulu Town Street.

The Tourist Industry Profits, the People Don't

Despite the billions of shillings earned from tourism annually, communities around the world-famous Masai Mara Game Reserve still wallow in poverty. The poverty index is high and it is only a few people, hoteliers and tour proprietors who are reaping maximum benefits from the vibrant tourism industry.

"We are still waiting for the day when we will reap benefits from tourism. The situation is bad and it calls for urgent intervention," says Ben Kipeno, a community leader at Sekenani area of the reserve. Kipeno says it is only the Narok and Transmara County Council officials, hoteliers and tour companies’ proprietors who are pocketing millions of shillings, leaving behind too little to uplift the living standards of the locals who bear the brunt of human-wildlife conflict. "The locals who have conserved the ecosystem are spectators who just watch as the money is swindled," he says.

Sammy Nkoitoi, the chairman of Siana Wildlife Conservation Trust explains
"There is nothing to show of the billions of shilling accrued from tourism. There are no visible infrastructural developments like schools and health facilities that go along to ameliorate the hardships locals face...The annual migration of wildebeest from Serengeti in Tanzania to Mara has been named the seventh wonder of the world but the event which led to the increased tourist arrivals has not changed the living standards of the locals." He says people in the area die of treatable ailments because there are no health facilities and children have no access to education because there are few schools."Malaria, pneumonia and typhoid are claiming lives and there are a few and ill equipped schools in the place. To what benefit is this resource to the locals?" he wonders. Nkoitoi faults owners of lodges and camps in the reserve for not giving back to the communities yet they post millions of shillings in profits annually from tourism proceeds.

Sunday, April 24, 2011

'we export food in order to import food'

The price rises in global food has prompted certain countries to seek cheap and fertile farmland beyond their borders in order to guarantee food security for themselves. To achieve this goal such states are encouraging their domestic agro-businesses, tied to their national interests, to invest in countries like Ethiopia, Sudan, Madagascar, Tanzania and Argentina, to name a few. Capital invested in far-away farms will produce food cheaply, which will then be exported back to the country where the original capital came from. In this way, the volatility of the international food market can be avoided and national food security achieved. It is important to point out that some of these include states with dreadful human rights records such as Saudi Arabia.

To accomplish this goal, a key step is to convince developing nations to give up their fertile land to foreign investors. One of the baits designed for the purpose of persuasion is the promise of infrastructure and the sharing of information and technology in agricultural science. The other promise made to host nations is of capital gained from food exports, which can then be reinvested in the country. For underdeveloped countries, who face serious food insecurity, and who are often unable to feed their population, this may sound too good to pass by.

The government of Ethiopia promises this process will mitigate the nation's chronic food insecurity and allow domestic farmers to gain knowledge from the expertise of foreign agro-business. It also says dollars gained form exporting food can alleviate Ethiopia's endemic food crises. In Ethiopia, hundreds of foreign investors grabbing fertile land at incredibly low cost. The scale of the spree is unprecedented. Investors are describing the deal as 'green gold'. Ethiopia's untilled land, located in some of the most fertile parts of the country, is now being sold to foreign interests for less than its true worth. Foreign investors are given perks, tax holidays lasting years, and essentially they are exempt from any royalties. According to the government, these lands given to foreign investors were idle lands, ready to be gobbled up into the global food system without much disturbance. However, this view depends on one's definition of 'idle land'. Pastureland may seem idle, but its usefulness is undeniable. In an effort to rush through this controversial issue unimpeded, the government has sought to bypass all transparency. It is fully aware that an open discussion on the issue would expose the absurdities of its claim. Deals with foreign investors were approved backhandedly for this reason.

Although this issue of land-grabbing by foreign interests is new to Ethiopia, it is no stranger to other parts of the developing world. The history of foreign agro-business intrusion in some Latin American and Caribbean countries is enlightening to say the least. In northeastern Brazil, the region was extensively farmed by foreign agricultural interests for centuries. Unfortunately this region has nothing to show for it now. Today the region is the poorest part of the country with the least food security and one of the highest malnutrition rates in Latin America. Contrary to the promises made by companies that farmed Brazil's fertile soil, the outcome has been very grim. In his famous book 'Open Veins of Latin America', Eduardo Galliano, commenting on Brazil's northeast, says, 'Naturally fitted to produce food, it became a place of hunger. Where everything had bloomed exuberantly, the destructive and all dominating plantation left sterile rock, washed out soil, and eroded lands.' Are Ethiopia's own fertile lands headed for the same fate? What makes the current foreign agricultural adventure in Ethiopia any different?

Employment offered by these farms is purported to be a benefit for local communities. Never mind that the main reason why locals seek this work is primarily because the agro-businesses have forced them to abandon their old pastoralist way of life. Take away this option of survival and people are left with no other choice but to accept slave wages working on foreign farms. In a way the agri-business creates the labour surplus for itself and manages to keep wages extremely low. The wage paid to workers, on average about $1.50 (25 Birr) for a day's work, is nowhere near enough to survive without additional food aid. According to a recent documentary, some farm workers in southern Ethiopia complained they were getting paid seven birr per day, instead of the 25 birr initially promised. That is about 50 cents a day in dollar terms. By these estimates the lives of these workers were considerably better before the introduction of foreign agri-business. Instead of food security, food insecurity is created, perhaps even serious malnutrition. To add insult to injury none of the produce from these farms will be available to local markets. However, there is talk of selling some of the produce to aid agencies. The World Food Program intends to buy some of this grain in order to assist hungry people. Ironically, this group of intended food aid recipients will include those working to produce it in the first place !!

The people of Ethiopia are being asked to believe absurdities such as 'we export food in order to import food' as a viable economic option to guarantee national food security. However, the most basic comprehension of economics tells us this is nearly impossible. Given Ethiopia's dwindling currency exchange, what sense is there in purchasing grain from the international market, while exporting domestic grain? Can exported grain used as a cash-crop generate enough capital to be able to import food affordably and sustainably? If Indian, Saudi, and Chinese companies are extending their reach beyond their national borders to secure national food security for their domestic economy, why can't Ethiopia do this within its own lands?

Taken from here

Saturday, April 09, 2011

swaziland inequality

The Swazi economy has all but collapsed - with devastating consequences for the poor. Swaziland is Southern Africa's second-smallest economy after Lesotho. Swaziland ranks as one of the most unequal societies in the world. The royal family consumes about 5 per cent of the annual budget while 70 per cent of Swazis live below the poverty line of US$1 per day. This reality exists despite the fact that Swaziland qualifies as a middle-income state due to a flattering per capita GDP. Swaziland is therefore not poor in strict economic terms. However, the country's glaringly skewed politics of distribution certainly are. The Swazi economy is therefore characterised by massive concentration in the hands of a tiny minority with land in the hands of a few (largely members of the royal family who are unable to use it for productive purposes). The economy is largely agro-based, with semi-feudal relations frustrating its development potential, as the majority produce for their landlords rather than for national or for their own benefit.

At the time of Swaziland's independence in 1968, the royal minority inherited a highly skewed colonial economy. The edges of the skewed nature of the economy were further sharpened through a royal 'bourgeoisification' process, with the establishment of a 'royal fund' through the vehicles of Tibiyo and Tisuka TakaNgwane. To date, royalties from mining as well as land held by the monarchy for the Swazi nation (utilised by the major sugar and forestry estates), accrue to the royal family through these institutions, and not to the state, lesser still to the people. This system is designed to ensure that the parasitic royal family maintains their huge, highly unproductive and unfettered share from government in the form of the Swazi National Treasury (SNT), an entity separate from central treasury. There has been the deliberate design of the Tinkhundla royal regime to monopolise national resources and allocate these for their own narrow interests, to the exclusion of the suffering majority of the people.

According to the United Nations Development Programme (UNDP), the Swazi economy is characterised by huge unequal distribution of income and living conditions, regional disparities in income and living conditions, skewed property income and land ownership, inequality in upward mobility and favouritism in social opportunities, unequal access to safe and clean water and sanitation facilities, massive rural and urban poverty and landlessness.

The enormity of the current crisis is spoken for when one looks at the facts surrounding Swaziland: life expectancy is now at 31.88 years, 30 per cent of all children are orphaned or vulnerable due to living with a critically ill parent, only 6 per cent of the national budget is allocated to health and 2.4 per cent to social services, 69 per cent of the population live in extreme poverty, 25 per cent of the population live on food aid donations and unemployment is estimated at over 40 per cent.

Meanwhile, the king has an estimated personal fortune of US$200 million. The Swazi monarchy is estimated to be wealthier than the country as a whole. The health and education budget for members of the royal family using expensive institutions outside the country continues to skyrocket, whilst education and health facilities in the country continue to deteriorate and collapse. Social expenditure, national development and the interests of ordinary people suffered as royal projects such as state-of-the-art royal villas and clinics received priority funding. This explains the deepening inequalities in income and opportunities for the poor majority, particularly for women and those living in rural areas.

For a long time, the royal regime openly flirted with the apartheid regime, benefitting from the sanctions against apartheid South Africa and acting as a sanctions buster, collaborating with the Pretoria regime and other such global forces. Swaziland was seen as an alternative destination, with apartheid South Africa products being branded as originating from Swaziland.

from here

Friday, April 08, 2011

More on Land Grabbing

Investment by big agribusinesses and foreign governments in the farmland of developing world countries is not the answer to increasing food production and reducing poverty in poor nations, a global conference on land grabbing heard.

Olivier de Schutter, the UN’s special rapporteur on the Right to Food, rejected arguments that collaboration and investment with big businesses is the only way food production can rise sufficiently to feed the world’s growing population. The private sector is driving a change towards large scale industrial agriculture in areas such as Africa. This is pushing out small scale farmers who can’t compete on price, deepening local poverty and driving deforestation and environmental degradation, he said. A key problem is that most developing world governments, particularly in Africa, lack laws to regulate market competition and control abuses of power by dominant multi-nationals, says de Schutter. In addition, many companies and governments looking to buy up foreign land target countries with weak governance, which often have food security problems of their own.

Ian Scoones, joint convenor of the Future Agricultures Consortium, a collaboration of African and UK scientists based at the Institute of Development Studies, Sussex University, explained that the international community should be “very concerned” about the increased rush for land in Africa. The impact of international land deals on farmers and poor communities often “remains hidden”, he said.

Thursday, April 07, 2011

Angola and corruption

Calculations provided by the Washington-based anti-corruption advocacy group Global Financial Integrity (GFI) suggest funds worth nearly a sixth of Angola's entire annual budget - $6 billion US - flowed illicitly out of the country .

The bulk of the flows was channelled abroad by a mechanism known as "trade mispricing." In this case, the way it typically works is that Angolan importers pretend to pay foreigners more for imports than they actually spend. The difference provides cash that can be discreetly put into banks or other assets abroad. Oil producers seem especially susceptible to this and other kinds of corruption and capital flight. Angola is Africa's largest oil producer after Nigeria and a strategic supplier of crude to the United States. Because of the role of trade mispricing, the figures also highlight the extent of commercial graft, which exacerbates the persistent problem of capital flight and hampers the country's chances of attracting non-oil foreign investment. The GFI calculations suggest an unaccounted $5.8 billion left Angola in 2009 -$4.6 billion through trade mispricing, and the rest probably via official corruption or criminal activities traced through balance of payments data.

The secretive governing elite at the top of the ruling MPLA party has long been accused of graft on a grand scale and of plundering the oil wealth of a nation where the vast majority of its 18.5 million inhabitants live in squalor and poverty.There is a tight oligarchy around President Jose Eduardo dos Santos, who has been in that office since 1979, making him one of Africa's longest-serving leaders.

On Transparency International's latest Corruption Perceptions Index, Angola ranked 168th out of 178 countries. And though most residents of the capital are all but destitute, more than one consulting firm ranks Luanda the world's dearest destination for foreigners.

GFI estimated that in 2009 $27.5 billion flowed illicitly out of Nigeria, Africa's largest oil producer and a country with eight times Angola's 18.5 million population.

As socialists we would like to say that the existence of corruption or how much there is of it in governments is not important to the working class. What is important is why it exists and the answer is because it is an inevitable part of capitalist society. Social inequality, poverty beside riches will guarantee its continued existence.

Wednesday, April 06, 2011

south african inequality increases

Inequality in South Africa has worsened to the point where it is now the widest in the world, Congress of SA Trade Unions General Secretary Zwelinzima Vavi said.

"The workers' share of national income was 56% in 1995, but by 2009 had declined to 51%. There is no official poverty line for South Africa, yet the Minister of Finance has acknowledged that 50% of the population lives on 8% of national income," Vavi said. He added that on average, the poorest 10% of earners received 1,275 rand a month, which was 0.57% of total earnings, while the top 10% received 111,733 rand, which was 49.2% of the total.

The number of South African billionaires had nearly doubled, from 16 in 2009 to 31 in 2010, when the country's 20 richest men enjoyed a 45% increase in wealth.

"Pine Pienaar, CEO of Mvelaphanda Resources, made 63 million rand in 2009, which means he earns 1,875 times as much as the average worker.We must reject the notion that workers must be modest in their demands, tighten their belts and concede to ideas such as wage pacts, wage freezes and the youth wage subsidy. We must say to neoliberal think tanks and research institutes that to argue that workers must tighten their belts whilst a minority of people who do not even lift a finger to produce anything but know how to squander profits is criminal."


Thursday, March 31, 2011

FAME AND CHARITY

In Malawi, about $3.8m (£2.4m) has disappeared and a school has been left unbuilt. Alone, that story would never make international headlines. The project belonged to Madonna's charity Raising Malawi. The message from the failed project appears simple: good intentions are not enough, and money in the wrong hands can be worse than no money at all. But the unbuilt school also points to much deeper debates about how development happens: can it come from outside and above? Or must it come from inside and below? A heated land dispute pits villagers against the wealthy western donor and the Malawian government, which takes her side: "Don't you know better? You need a school. You should be grateful." Not long after, allegations follow of private jets being flown into the country, laden with luxuries (exercise machines and expensive wines). But the project only truly begins to falter after auditors uncover "outlandish expenses" – salaries, private cars and golf memberships – and the charity's executive director bows out. Amid the brewing controversy, the project is pulled by the wealthy donor, who hopes to cut her loses.

In the aftermath, staff members are suddenly left without jobs, and file suit for lost wages, unfair dismissal and non-payment of benefits. As the "mismanagement of funds" is said to have happened overseas, those among the general public who answered the charity's call for donations can do little to hold it to account. Though Madonna had chosen education as her cause, she has now been forced to share her spotlight with the much more complex development challenges of corruption, accountability and disenfranchisement.

The development economist William Easterly said that part of the new millennium's explosion of interest in "saving Africa" could be explained by the mass advocacy celebrity campaigns spearheaded by the Bonos and the Geldofs of the world. But aside from the Malawi project's star-studded cast – Tom Cruise and Gwyneth Paltrow were also among Madonna's backers. Today, celebrities are much more than pretty faces for charity appeals. They're also out and about, lobbying politicians and setting up their own foundations. But, according to William Easterly, celebrities have been too quick to rub shoulders and hobnob with the powerful. And they overstep the line, he says, by claiming expertise on the basis of their stardom. In the process, say critics, attention is diverted away from the tougher, more nuanced issues in development.
http://www.guardian.co.uk/commentisfree/2011/mar/30/madonna-malawi-charity

Monday, March 28, 2011

the asian scramble for africa

South Korea joins Beijing in the scramble for access to the continent's vast natural resources. Kim Sung-Hwan South Korea's foreign minister will travel to Gabon, the Democratic Republic of Congo and Ethiopia.

Talks will be held on oil exploration projects in Gabon and the building of infrastructure in Congo in return for energy deals, a ministry official said. "We plan to actively encourage South Korean companies take a plunge in Africa, the world's emerging economy rich with energy resources," the ministry said in a statement. "The trip... is aimed at helping South Korean companies win business deals there and sharing the experience of our economic development with Africa".

India has also been securing land and resource deals in Africa in a bid to maintain its growth.

SOUTH AFRICA'S SHAME

The Human Rights Commission's workshop on Equity in the Realisation of Children's Rights in South Africa revealed that 11,9million children live in poverty. It also revealed that a child growing up in deprived communities was two times less likely to have access to adequate sanitation and water, two times less likely to be exposed to early childhood development programmes, three times less likely to complete secondary education and 17 times more likely to experience hunger. African children are 12 times more likely to experience hunger than white children

About 1.7million children lived in shacks, 1.4million relied on rivers or streams as their main source of water, and 1.5million had no toilet in their home. "Most" causes of death of children under five were avoidable; and 61% of all child deaths were due to "health system failures" - inadequate care by doctors and nurses working at clinics and hospitals. One in five children is stunted by chronic malnutrition, and 100000 children who need antiretroviral drugs did not get them. Immunisation coverage across the country for killer diseases, including polio, hepatitis, measles, whooping cough, diphtheria and tuberculosis, has decreased to as little as 45% in some areas compared to 1994.

In education, 582000 children of high school age were not at school - 28% of them because their parents could not afford school fees. Four out of 10 children live in households in which none of the adults work.

Of the 49million people living in South Africa, 18million of them were children under the age of 18 and more than 60 percent of them were African children living in hunger. Of 56500 children who were victims of violent crime in 2009-2010, 27417 were raped or molested. Of those, 29% were under the age of 10 years

Aida Girma, Unicef's representative in South Africa, said the situation was similar to that in other developing countries, where "millions of the world's most disadvantaged, vulnerable and marginalised children" are left behind.

Thursday, March 24, 2011

stealing from peter to pay paul

Swaziland's government, feeling the pinch of a growing financial crisis, has suspended this quarter’s pensions for the elderly and redirected the money to pay the school fees of orphans and vulnerable children. About 5 percent of Swaziland's approximately one million people are 60 years old or older and eligible for pensions.

The pension stipends are indispensable for many of the elderly, as there is no alternative form of social security and private sector pensions are rare. The grants were increased two years ago from $21 per quarter to $85 and are paid four times a year. But a loaf of bread costs about $1, so most people subsist on maize-meal, supplemented by wild spinach, edible herbs, emasi (sour milk) and occasionally meat.

"You cannot live on such money as government provides but it can help you survive," said Gogo Khumalo, a 70-year-old widower in rural Mliba, 100km east of the capital, Mbabane.

Roughly two-thirds of Swazis live below the poverty line. Swaziland has the world's highest HIV prevalence rate - 26.1 percent - and one in four Swazis between the ages of 15 and 49 are living with the virus. Mbabane recently saw the largest anti-government protests in years, sparked by the construction of "vanity projects" like a new $1 billion international airport, built at the expense of social services.

"Taking from the elderly to meet the needs of orphans and vulnerable children is stealing from Peter to pay Paul," Solomon Thwala, a primary school teacher, told IRIN. "There are sources of funding other than putting the elderly in jeopardy."

http://www.irinnews.org/Report.aspx?ReportID=92263

Wednesday, March 02, 2011

Troubled Water - book review

Crude World. By Peter Maass.
The delta of the River Niger is an enormous wetland, once a flourishing ecosystem with a wide range of life forms. But now it is not a wildlife sanctuary: rather it is a horrendous landscape of ruined villages, devastated populations and roving armies. The reason for this is simply the delta’s vast oil reserves and the prospects for wealth and power that these entail.

This is but one clear example of the ‘resource curse’, which states that countries dependent on the export of resources such as oil are susceptible to more corruption and warfare but less freedom or economic growth. In this enlightening book, Peter Maass surveys a number of cases and shows how oil rarely produces benefits for those who live in the places where it is found.

In Equatorial Guinea, for instance, the discovery of offshore oil led to enormous riches for the dictator-president Teodoro Obiang. Few local workers were employed in the exploring and drilling work, and massive profits were made by American companies like Exxon. The US government, and various lobbying groups, played their part in supporting Obiang and keeping him friendly to American business. This is particularly important as Chinese companies start flexing their own oil-producing muscles.

In Ecuador Texaco was able to do more or less as it wished, since the officials of the newly-formed state oil company knew next to nothing about oil. The natural gas that came to the surface with the oil was just burned off, which can be deadly for both people and environment. Rivers and land have been contaminated and the government left with massive debts.

The profits, of course, go to the oil companies and their owners. Lee Raymond received $686 million for his thirteen years as chief executive of Exxon-Mobil, while billions went to share-holders. As Maass points out, oil companies in fact do not ‘produce’ oil, they simply take it from the ground. Extracting, purifying and transporting oil are complex tasks (performed by skilled workers), but selling oil to realise the profits is not difficult. What is needed in the first place is a licence from the local government to explore and extract oil, which is why the oil industry is usually rife with corruption and works closely with diplomats and generals to ensure this kind of access.

So a substance used to provide fuel and warmth also causes wars and destroys the environment. Inevitable consequences of a world that belongs to a privileged few and is driven by profit.

PB