Saturday, November 10, 2012

Access for Food

History is riddled with examples of the poor dying of hunger when food was plentiful. Classic amongst these is the famine which wracked the West African Sahel during the early 1970s. While people were dying of hunger in Senegal, Mali and Niger, peanuts — a key sauce ingredient and source of protein across the region — were being exported to Europe.

Central to the philanthrocapitalist worldview is a belief that private enterprise is the fundamental agent of progressive change and that business acumen trumps other forms of expertise. It is also very convenient when a company’s profit motive lines up nicely with an initiative promoting the end of African hunger. The G8, the world’s richest democracies, launched the New Alliance for Food Security and Nutrition (NAFSN) last May. This $3 billion commitment by the G8 plus 21 African and 27 multinational companies aims to lift 50 million people in Africa out of poverty by 2022. Nearly 30 companies are involved with the NAFSN initiative (from Syngenta to Monsanto).

Cargill is a US-based large agricultural, financial and industrial corporation. Greg Page, Cargill’s chairman and chief executive, has been particularly active on the talk circuit and in the op-ed pages of American newspapers, articulating his support for NAFSN and similar initiatives. Cargill is a massive company, with revenues of $133.9 billion in 2012, which would rank No. 8 on the Fortune 500 list if it were publicly traded. It operates in 66 countries with some 133,000 employees. In voicing his support for the NAFSN approach, Mr Page outlines the need for free trade, growing crops where there is a comparative advantage to do so, property rights reform, and access to fertiliser, quality seed and mechanised equipment.

In a July 2012 speech in Minneapolis, US, Page compared Zambia and Mozambique. Cargill does a considerable amount of business in Zambia, which allows 99-year land-use permits that can be transferred between buyers and sellers, or transferred from one generation of farmers to the next, Page said. This type of policy encourages agricultural investment, spurring food production in the country, he argued. Last year Zambia produced a million more tonnes of maize than the country could eat — and Zambia is now a ‘net exporter in a continent of food shortage,’ he added.

In Mozambique, however, land-use rights are conferred for half the length of time and permits are non-transferable between parties, Page said. ‘If you look at the soil types, the rainfall patterns and everything else, there is no demonstrable reason that Mozambique should not produce more food than Zambia, and yet in the absence of the right legal frameworks, they’ve not been able to do that.’

What Page fails to understand is that producing more food in the aggregate is not synonymous with improving household food security. While Zambia may now be a food exporter, this does not necessarily mean that Zambia’s historically food insecure groups are better off. Instead, food insecurity remains a major issue for certain segments of the population, including child-headed households and those taking care of orphans (largely due to HIV/AIDS), the unemployed in urban areas, and smallholder farmers in the drought-prone, southern and western parts of the country (where an overreliance on drought-vulnerable maize has made the situation even worse). Furthermore, the Zambian government, because of its market-oriented land tenure legislation, has leased 8.8 percent of its agricultural land to foreign entities, according to the United Nations’ Food and Agriculture Organisation. These companies and foreign governments are primarily interested in producing food for export. Their interventions have done little to improve household food security amongst poor Zambians.

The best way to address food insecurity for the poor is emphasising access and not production.  The big money, for input providers, agro-processors and traders, is in building more capital-intensive and market-integrated African farming systems. There is little to no profit to be made from eradicating hunger.

The shell game

Africa is rich is natural resources that are being exploited for big profits, but the money is rarely used for the benefit of the people. Instead it goes to line the pockets of corrupt officials who then often smuggle it out to be deposited in secret offshore bank accounts in the developed world. But if the truth is to be told, it is also the transnational corporations that are doing most of the looting of Africa, and local politicians are small fish in this neo-colonial takeover agenda. The transnationals too have their shell companies where much greater amounts of money flow into undetected accounts.

The world's wealthy countries often criticise African nations for corruption - especially that perpetrated by those among the continent's government and business leaders who abuse their positions by looting tens of billions of dollars in national assets or the profits from state-owned enterprises that could otherwise be used to relieve the plight of some of the world's poorest peoples. Yet the West is culpable too in that it often looks the other way when that same dirty money is channelled into bank accounts in Europe and the US. International money laundering regulations are supposed to stop the proceeds of corruption being moved around the world in this way, but it seems the developed world's financial system is far more tempted by the prospect of large cash injections than it should be. Anonymous off-shore companies and investment entities, whose disguised ownership makes it too easy for the corrupt and dishonest to squirrel away stolen funds in bank accounts overseas. This makes them nigh on impossible for investigators to trace, let alone recover.

 A few years ago rich deposits were discovered at the Marange diamond fields in the east of Zimbabwe. It held out the promise of billions of dollars of revenue that could have filled the public purse and from there have been spent on much needed improvements to roads, schools and hospitals. The surrounding region is one of the most impoverished in the country, desperate for the development that the profits from mining could bring. This much anticipated bounty never appeared. the mines are clearly in operation and producing billions of dollars worth of gems every year, little if any of it has ever been put into Zimbabwe's state coffers. 

Local and international non-governmental organisations say they believe this is because the money is actually being used to maintain President Robert Mugabe's ruling Zimbabwe African National Union - Patriotic Front (ZANU-PF) in power.

Capitalism, the private or state ownership of a country's resources including the labor of its inhabitants who are forced to work within that system for the benefit of the very few is what is the problem. It's a system maintained by force that no one who claims to espouse democracy can support. Production for need with the workers in control and running the means of production for societal benefit: spreading that wealth that under capitalism is concentrated in the hands of the few is the only way to reduce poverty, starvation and deprivation for the many. We are producing plenty of everything that is needed to ensure that every human being on this planet has the necessities for a fulfilling life.

See here

Friday, November 09, 2012

China in Africa

Navin Shah, a property developer in Kenya, stresses that the Chinese are not philanthropists, and that Chinese aid is not just a gift, but also serves to benefit the benefactor: "Ultimately, it is another imperial power pursuing its national interests." He explains "The early colonisers came to Africa with alcohol and useless gifts to lure the locals. China is doing the same with arms sales, especially to those African governments under threat owing to civil war, insurgency, or barred from obtaining weapons from traditional Western sources. In fact, no other major power has shown the same interest or muscle, or the sheer ability to cozy up to greedy African leaders,"

China's engagement with Africa is not 'new'. Its roots date back to the 1950s, when China fought the Soviet Union and the United States for Africa, which was then seen as an ideal terrain in the Cold War. Known as the "coolie trade", China focused its efforts on African mining, plantation and railway construction. The most notable being the construction of the TamZam railway between 1970 and 1975, which linked Zambia directly to Dar-es-Salaam, breaking the dependency on white-ruled Zimbabwe. It was during this period that the Sino-African relations became political. By 1978, China had established diplomatic relations with 43 African countries. At the end of the 1970s it decided to focus on its internal challenges, China's leadership forgot about Africa and  turned to outright neglect in the 1980s. The inauguration of the new leader, Deng Xiaoping, in 1978 led to a new political direction and the uncertainty of economic development in China. Economic aid to Africa was reduced, accompanied by a decline in bilateral trade. However, self-sufficiency - a central pillar of Chinese policy - could no longer be maintained in a host of vital areas including energy, forestry resources and even food production. By the end of 2011, Chinese investment in African countries totalled almost $90 billion (£55.4 billion), the third-largest recipient behind Asia and Europe. Oil is the top item imported from Angola, followed by hardwood timber from Liberia. Sudan exports two-thirds of its oil to China.

As Chinese investment in Africa increases, the emergence of small-scale Chinese retailers threatens to undermine existing local shops. In Huambo, Angola, Chinese shops have increased ten-fold, from two in 2002 to over 20 in 2006. In Oshikango, Namibia, the first Chinese shop was opened in 1999; by 2006, there were 75. The influx of Chinese trading shops has been met with a mix of enthusiasm and concern. . In South Africa, Chinese migrants are seen as intruders, even by those who buy at their shops. A street vendor in Kenya scornfully remarks: "The Chinese come here with promises of new jobs and better lifestyles, but they are taking away even the simple businesses like selling groceries. Yet, the government says we should celebrate Chinese investment?" Dipak Patel, former trade minister for Zambia: "Does Zambia need Chinese investors who sell shoes, clothes, food, chickens and eggs in our markets when the indigenous people can?" And in 2006, an opposition presidential candidate ran a "Zambia for Zambians" campaign aimed at expelling Chinese influence from his country.

There is a debate regarding China's practice of employing its own nationals. A study commissioned by the Angolan government showed that while non-Chinese employers were expected to pay between $3 (£1.85) and $4 a day to Angolan labourers, Chinese labourers were paid $1 day by their own employers. At the World Social Forum held in Nairobi, Kenya in 2007, Humphrey Pole-Pole, head of Tanzania Social Forum, declared: "First, Europe and America took our big businesses. Now China is driving our small and medium entrepreneurs to bankruptcy. You don't even contribute to employment because you bring in your own labour."

The general manager of China National Overseas Engineering Corporation, based in Lusaka, Zambia, attributes the differences to cultural barriers: "Chinese people can stand very hard work. They work until they finish and then rest. In Zambia, they are like the British; they work according to a plan. They have tea breaks and a lot of days off. For our construction company, that means that it costs a lot more."

While this low-cost model insinuates low wages, it has also become synonymous with bad working conditions, abusive practices and environmental degradation. In 2010, for example, 11 local employees of a coal mine in Sinazongwe, Zambia were sprayed with bullets by the Chinese managers while they were protesting about pay and working conditions. This followed a 2005 explosion in a Chinese copper mine in Chambishi, Zambia, which killed 46 workers. In 2007, the Nigerian government leased to China Nuclear International Uranium Company a tract of land belonging to ethnic Tuaregs, without compensating them. Legal and illegal timber logging has wreaked havoc on the prospects for sustainable forestry in Liberia and Mozambique. Dams built in Sudan and Mozambique have displaced thousands of local residents, while over-fishing off the eastern and southern African coasts has impaired communities dependant on fishing for their livelihood.

Fact of the Day

There are fewer people with internet access in the entire continent of Africa than in New York City alone.

Thursday, November 08, 2012

If Africa was a country

If Walmart were a country, its GDP (US$443.9bn) would be greater than that of South Africa's ($422bn). Visa would be bigger than Zimbabwe, Wells Fargo dwarfs Angola, and eBay, Amazon, Costco, Proctor & Gamble would swamp Madagascar, Kenya, Sudan and Libya respectively.

 If Africa were a country its GDP (US$1.184 trillion) would be only around a fifteenth of the United States' ($15.776 trillion). That's a whole continent - the world's second largest - and a continent where around 15 percent of the world's population share 1.5 percent of the planet's total gross domestic product of $78.95 trillion.

Source

Tuesday, November 06, 2012

Quote of the Day

"I fear poverty will kill me before HIV does"

"I have been swallowing ARVs for years now. I have followed all the instructions from the doctors. I have done everything I can to stay alive so that I can take care of my children, but it hurts me that even after I have tried to stave off AIDS-related death, another form of death awaits me. It is this house — this house will kill me sooner than I expect.”

The house in question slants and has a rusty, leaky roof. The eucalyptus poles holding the roof up are rotting, so a flour-like substance keeps falling off them on to the floor. The mud on the walls has fallen off, leaving the weak supporting poles bare. The house, which is now 10 years old, is likely to crumble any time. Whenever it rains, Nangendo folds her beddings to the side and watches in the dark as her troubles seep in from under the door. With its tiny windows, what is supposedly the sitting room is loaded with darkness. 

 “A small brick and sand house, for instance, even if it is one room, is all I want. I need help,” she pleads.

Sunday, November 04, 2012

Quote of the Day

 "[The South African] government is a capitalist government. It is a government for the rich. It is making some people very rich and it is slowly changing the colour of the people who are rich. It is always saying that there is a problem with the colour of the people that are rich but it never says that there is a problem which is that the rich, all of them together, have too much land, too much money and too much power...Land has to be distributed according to social need and not according to who has money."
Lindela S Figlan

Friday, November 02, 2012

The Spoils

The share of national income going to the richest 1% of Americans has doubled since 1980, from 10% to 20%, roughly where it was a century ago. Even more striking, the share going to the top 0.01%—some 16,000 families with an average income of $24m—has quadrupled, from just over 1% to almost 5%. That is a bigger slice of the national pie than the top 0.01% received 100 years ago.

According to Forbes magazine’s rich list, America has some 421 billionaires, Russia 96, China 95 and India 48. The world’s richest man is a Mexican (Carlos Slim, worth some $69 billion). The world’s largest new house belongs to an Indian. Mukesh Ambani’s 27-storey skyscraper in Mumbai occupies 400,000 square feet, making it 1,300 times bigger than the average shack in the slums that surround it.

 America’s Gini for disposable income is up by almost 30% since 1980, to 0.39. Sweden’s is up by a quarter, to 0.24. China’s has risen by around 50% to 0.42 (and by some measures to 0.48).

Britain 36 billionaires worth 4% of GDP
Germany 55 billionaires worth 7.2% of GDP
Russia 96 billionares worth 18.6% of GDP
China 95 billionaires worth 2.6% of GDP
India 48 billionaires worth 10.9% of GDP
Brazil 37 billionaires worth 6.2% of GDP
USA 421 billionaires worth 10.5% of GDP

Source

Wednesday, October 31, 2012

South Africa - the inequality didn't go away

South Africa’s first census in a decade shows wealth disparities between race groups that persist 18 years after the end of apartheid. While incomes for black households increased an average 169 percent over 10 years, their annual earnings are 60,613 rand ($6,987), or a sixth of that for whites.

Population growth and life expectancy have been curbed by one of the world’s worst AIDS epidemics. About one in nine people in South Africa are infected with HIV, the virus that causes the disease, according to the government. The census found 3.37 million children under the age of 17, or 19 percent of the total, had lost one or both parents, with AIDS cited as a major contributor.

“These figures tell us that at the bottom of the rung is the black majority who continue to be confronted by deep poverty, unemployment and inequality,”
President Jacob Zuma said.

The business of charity

A British charity which builds wells in Africa was refused overseas aid funding because its bid was not “innovative” - but the consultants who decide which charities should be helped were paid a million pounds.

 It is a small British charity with a simple goal – to supply clean water to villagers in some of Africa’s poorest countries.Just £3,000 can build a well  serving 4,000 people. A further £170 provides a latrine. Such straightforward schemes can save and transform lives. Operation WellFound has so far built more than 25 wells in four countries. WellFound has worked in Kenya, Senegal and Guinea Bissau, building sealed wells with hand pumps in areas where families previously sent their children many miles to fetch fresh water, or risked contracting dysentery, typhoid and cholera from contaminated shallow wells. WellFound requested £250,000 to build wells and latrines for 60,000 people in Burkina Faso, one of the most impoverished nations on Earth. The bid for funding was referred by the Department for International Development (DfID) to Triple Line Consulting, a London-based company which advises on overseas aid, to be examined in detail. The application was rejected. In an email sent by Triple Line to WellFound, the consultancy gave three reasons why the charity should not receive funding. The bid was considered not “sufficiently innovative”; it did not clearly explain how poverty would be alleviated; and it did not provide evidence of how the work could be replicated on a larger scale in the future.

 £29 million was paid in the past 12 months to Triple Line, whose main contract is to assess applications for grants from DfID’s Global Poverty Action Fund. The company passed on £27.1 million of the funding to aid providers it had vetted, while keeping the remaining £1.9 million as a fee for its services. Charities which are approved by Triple Line do not qualify for funding straight away. Instead, they are subjected to a second round of scrutiny by a different consultancy – this time a specialist branch of the global accounting firm KPMG. In the same 12 months, DfID paid KPMG more than £35 million. According to KPMG sources, most was passed on to aid providers and £3.5 million was kept as a fee.  

 Triple Line, based in Putney, south-west London, is owned by two directors who founded the company in 1999: Lydia Richardson, 42, a “socio-economist”, who lives with her husband in a £1 million house in Southfields, south-west London, and David Smith, 54, an economist, who lives with his family in a £750,000 house a few streets away. Triple Line – which states on its website “We operate on the principles of openness, transparency, accountability and trust” – is registered as a small company, meaning it is not required to publish its accounts. Last night its owners declined to disclose what the company’s income or profits were last year, or how much they were paid in salary or dividends.

A DfID spokesman said: “Operation WellFound was one of 238 applicants for a grant under the Global Poverty Action Fund. The top 20 will be awarded a grant. The nature of a competitive process means there will necessarily be a number of organisations that will just miss out.”

Tuesday, October 30, 2012

private schools - private profits

Gems Education, a private school group operating in 10 countries, is embarking on a major expansion in Africa. In September, the company opened its first secondary school in Africa in Nairobi, Kenya. Further schools are planned in Nigeria, Uganda, Ghana, Mozambique, Tanzania and South Africa.

With fees starting at $1,700 a term, tuition at the Gems school in Nairobi will certainly be out of reach for the poorest people.

"Gems schools are geared to provision of high-cost education for Kenya's elite. Doubtless they will provide Mr Varkey and his shareholders with a healthy profit."
Kevin Watkins, a senior fellow at the Centre for Universal Education, declared.

Monday, October 29, 2012

The new slavery

If current trends continue the UN says there will still be about 190 million child labourers in eight years' time.  In the poorest parts of the world, the UN says, the numbers will rise: child labourers in sub-Saharan Africa will jump by around 15 million over the next decade, reaching 65 million by 2020.

 In Ethiopia almost 60% of children work. US chocolate companies had promised to educate all children in areas where it grew cocoa in west Africa – a commitment that would cost the industry $75m or 0.1% of annual sales. Instead it spent about $20m over eight years and reached just 4% of children in cocoa-growing communities in Ivory Coast and 30% in Ghana.

 Kevin Watkins, a former UN official who now works at the respected Washington-based thinktank the Brookings Institution, said: "The conditions of millions of child labourers would shock even the most hardened Victorian social reformers. National governments and international agencies are failing these kids, and reneging on their commitments."

Saturday, October 27, 2012

Africom's remote control war

Deadly US drone attacks in the Middle East and Northern Africa have greatly escalated in the past few years, thanks largely in part to a quickly expanding, yet remote, US base in the Horn of Africa.

Camp Lemonnier in Djibouti has operated as a central command for US attacks in the region for ten years, but in the past two years it has become the center of drone operations in the region. It is the busiest Predator drone base outside the Afghan war zone.

Camp Lemonnier, is home to over 1,666 drone and F-15E Strike Eagle fighter jet flights per month, double that of two years ago. 16 drones and four fighter jets take off or land at the Djibouti airfield each day on average. Some of the unmanned aircraft are bound for Somalia. Most of the armed drones, however, veer north across the Gulf of Aden to Yemen where they are being used in that increasingly deadly war.

Such flights are expected to increase. For the past decade, the Pentagon has labeled Lemonnier an “expeditionary,” or temporary, camp. But it is now hardening into the U.S. military’s first permanent drone war base. $1.4 billion in construction projects are now planned, including a massive housing compound holding up to 1,100 Special Operations forces. Last month, for example, the Defense Department awarded a $62 million contract to build an airport taxiway extension to handle increased drone traffic at Lemonnier, an ammunition storage site and a combat-loading area for bombs and missiles. It also awarded a contract to install portable lighting at the  backup site: a tiny, makeshift airstrip in the Djiboutian desert, several miles from Lemonnier. It represent the clear example of how the United States via AFRICOM is laying the groundwork to carry out these operations overseas for years to come. The U.S. military also flies drones from small civilian airports in Ethiopia and the Seychelles, but those operations pale in comparison to what is unfolding in Djibouti. The U.S. military pays $38 million a year to lease Camp Lemonnier from the Djiboutian government

 The UN's special rapporteur on counterterrorism and human rights announced that the Human Rights Council at the UN will likely initiate an investigation into civilian deaths caused by the CIA and US military's use of drones and other targeted killing programs, and said that if certain allegations against the US prove true, he considers them serious enough to call "war crimes". Since Obama took office at least 50 civilians were killed in follow-up strikes when they had gone to help victims and more than 20 civilians have also been attacked in deliberate strikes on funerals and mourners.

Details from here

Thursday, October 25, 2012

Africa can feed its people

Africa could feed itself if trade restrictions were reduced and fertile land was put to good use, according to the World Bank.

Just 5% of African cereal imports come from other African countries, it said. “The potential to increase agricultural production in Africa is enormous,” the bank said in the report. “Yields for many crops are a fraction of what farmers elsewhere in the world are achieving and output could easily increase two to three times if farmers were to use updated seeds and technologies.”

 "Too often borders get in the way of getting food to homes and communities which are struggling with too little to eat," said Makhtar Diop, World Bank vice-president for Africa.

Born-again robber baron

A hero of South Africa's struggle who is now a business tycoon has been accused of having the blood of Marikana mineworkers on his hands after the release of emails he sent to mine management and government ministries. Cyril Ramaphosa, who 25 years ago led the National Union of Mineworkers in a key strike against the white minority regime, was criticised for betraying the very people he used to represent.

 His business interests include a seat on the board of Lonmin, the company that owns the platinum mine where, two months ago, a wildcat strike led to a police massacre of 34 workers. Ramaphosa sought to intervene with senior government figures on Lonmin's behalf. On the eve of the killings, he called for action against miners engaged in "dastardly criminal" conduct.  Ramaphosa had called for action to deal with the "criminals", whose crime was to seek a wage increase. Ramaphosa warned the police minister, Nathi Mthethwa, to come down hard on the strikers, and was lobbied by Lonmin management to "influence" Shabangu and advised her that "silence and inaction" on the events was "bad for her and government". E-mails showed a direct collusion between Ramaphosa, Lonmin, mineral resources minister Susan Shabangu's department, the police ministry and state security agencies.

Co-author of the post-apartheid constitution, a patrician figure in the governing African National Congress Ramaphosa has been touted as a possible deputy to President Jacob Zuma in an ANC leadership election in December.

Monday, October 22, 2012

Greasing their palms

In a quiet amendment added to the Finance Bill late Thursday, members of Parliament approved a golden handshake of $110,000 each to be paid after their term ends early next year. The sweetener comes on top of an annual package worth $125,000, which is 70 times more than the average Kenyan worker takes home each year. It would take an average Kenyan worker 61 years to earn the sum that each of the country’s 222 lawmakers would be given under the bonus. The average annual per capital income is roughly $1,800.

 The move comes less than a fortnight after Kenya’s government said it could not afford to cover pay increases demanded by teachers and doctors, who had been on strike for three weeks in September. When the government said it had no money to pay them higher salaries, to then give themselves $25 million is beyond unreasonable. 

Southern Africa's food shortages

The United Nations Office for the Coordination of Humanitarian Affairs (OCHA) has warned that food insecurity and shortages continue to be a chronic problem in southern Africa. 

 “Southern Africa is facing a silent food insecurity emergency,” UN Assistant Secretary-General for Humanitarian Affairs and Deputy Emergency Relief Coordinator Catherine Bragg said
“In Lesotho, about a third of the population does not have enough food to eat or sell. In Zimbabwe, 1.6 million people are expected to be food insecure and many families are selling their own livestock to cope with this dire situation," Bragg noted.

Sunday, October 21, 2012

Growth? What Growth?

Innumerable Kenyans continue to wallow in abject poverty even as others swim in money. As a few drink Sh85,000 in posh restaurants, the majority live in slums. In Nairobi, for instance, while some are buying houses worth tens of millions of shillings, others continue living in informal settlements where the rent is around Sh800. Millions around the country cannot afford a meal every day. They have to trek long distances to look for menial jobs. 46 per cent still live on less than a dollar a day.

“I earn Sh5,000 and Sh1,200 goes to rent. The fare is Sh50 and there are no trains on my route. Where is this growth you people are talking about?”  Martin Kirema, a security guard, asked.

Silvia Wangeci, a shoeblack in the city, says she is yet to feel the growth. “You mean there are Kenyans who are drinking Sh85,000 in a night? I have never held Sh20,000 at once in my hands,” she said.

Her colleague Naomi Kilonzo says the money has gone into a few pockets. “That money has gone to the MPs and their business partners. If there are ordinary Kenyans who have gone from poverty to riches then it was by fluke,” she said.

Saturday, October 20, 2012

Botswana inequality

Various studies have shown that Botswana is one of the most unequal countries in the world. Botswana's income inequality, with a Gini Index in excess of 0.5, is one of the highest in the world.

At present, the highest paid senior public servant is the Permanent Secretary to the President (PSP), Eric Molale, who earns P47,380 per month. With the three percent increase, Molale will earn about P48,801.40. Permanent Secretaries currently earn P41,200 per month. With the three percent salary increase, they will smile all the way to the bank to rake in P42,436. This is in contrast to what the lowest paid public workers are remunerated. If these workers are lucky to get the three percent, they will have only P41 more than what they have been earning. At present, these workers earn about P1,351.67. With the increment, their earnings will total P1,392.67.

The CEO of the National Development Bank earns about P1,172.608 per annum or about P97,717.333 per month.

It was reported earlier this year that two executive directors at Choppies earned P11 million while former president Festus Mogae - who is the company's chairman and non-executive director - pocketed half a million Pula in salaries and bonuses for the year ended June 30, 2011. The deputy chairperson of the Choppies Group, Farouk Ismail, raked in P5,057,000 in salaries and bonuses and a further P628,000 in benefits and bonuses, all of which total P5,685,000. Choppies director Ramachandran Ottaphathu pocketed P5,354,000 while former president Mogae was paid P529,000 in what is characterised as fees.

Friday, October 19, 2012

The Sierra Leone Election


Albert Margai left office in 1967, after three years as prime minister of Sierra Leone, he was worth an estimated US$250 million – despite receiving an annual salary of just US$4,000. In 1985, when President Siaka Stevens stood down, he is said to have amassed a fortune of US$500 million. The Bank of Sierra Leone, in contrast, held US$196,000 in its foreign reserve accounts. In the late 1980s, a common joke told on the streets of Freetown was: ‘What did Sierra Leoneans read by before they had candles? … Electricity!’ By then, life expectancy in Sierra Leone was one of the lowest in the world. Infant mortality was amongst the highest. The literacy rate was just 15 percent.  In 1991, the United Nations ranked Sierra Leone last of 160 countries in its Human Development Index.  A common joke told on the streets of Freetown was: ‘What did Sierra Leoneans read by before they had candles? … Electricity!’

Since the civil war officially ended in 2002, consecutive national elections have been won by different parties. When Ernest Bai Koroma and his All People’s Congress (APC) party were elected in 2007, the incumbent Sierra Leone People’s Party (SLPP) accepted defeat – albeit reluctantly. For many, elections – and the preceding campaigns – provide the true measure of how Sierra Leone has progressed. As yet the fundamental character of political competition in Sierra Leone has not been altered. Identity, not ideology or policy, remains the paramount factor. Ethnic and regional voting blocs – sustained by entrenched patronage networks and corruption – are as rigid as ever. The APC draws majority support from the Temne, Limba and other northern tribes, and Krios of the Western Area, while the SLPP are favoured by the Mende and tribes of the south-east. Elections are regarded as ‘winner takes all’ contests with defeat entailing exclusion and disadvantage for the losers, and their regions.

Political parties still use violent means to achieve political goals. Election campaigns for the 2007 elections were tarnished by clashes organised by the upper reaches of the APC and SLPP. A return to war was never probable, but President Ahmed Tejan Kabbah threatened to suspend the vote and impose a state of emergency. On 9 September 2011, during a ‘thank you tour’ to SLPP supporters, Julius Maada Bio’s convoy was pelted with rocks by mobs of APC supporters in the southern city of Bo. Maada Bio required stitches to the head. SLPP mobs retaliated by setting fire to the APC district office and residential properties. A public enquiry concluded that the violence was both premeditated and orchestrated by elites of both parties.

Sierra Leone’s 2012 elections are unlikely to reveal anything new about the country and its politics. President Koroma is expected to win a second term, but not because he has transformed the country’s economy. The incumbent has deployed clever tactics, co-opting proxy parties – including the Revolutionary United Front Party – to carry out political dirty work, and enticing high profile SLPP politicians to defect, most notably veteran Tom Nyuma formerly of the NPRC.

While the economy has grown, it is structurally little different to its pre-war incarnation. The purchasing power of low income earners has halved since 2007. Food prices have spiraled. A cholera epidemic concentrated in the slums of Freetown had killed 392 residents by September 2012. Youth unemployment remains endemic.  Sierra Leone’s government budget is minuscule, about US$500 million per annum, most of which is from donors who insist on democratic and liberal economic reforms in exchange. The government is not in a position to adopt political and economic policies that will inevitably be unpopular with donors. Nor does it possess the human capital or institutions to successfully implement such measures.

 Important progress has been made, particularly in the area of electoral management. But legacies of identity politics, violence, corruption and inequality have been – and will continue to be – harder to overcome. the imperatives of how to create employment and distribute wealth more equitably have been keenly avoided by Sierra Leone’s political class.

From here