Democratic Corruption: The Case of Nigeria, By Ogunmakin Oyewumi

Democracy or democratic system of government is one of the most reputable system of government that gives values and recognition to the citizens of a particular country on how to shape their destiny or government through periodic franchise or referendum without being under duress or any intimidation. It is the most widely used system of government since the fall of the Berlin Wall in 1991 because there is no alternative to it. Thus, this in my own opinion is why the concept lack a unique definition because. James Bryce in his two monumental works, The American Commonwealth (1893) and Modern Democracies (1921), defined democracy as “the rule of the people expressing their sovereign will through their votes”. However, the road to democracy in Nigeria was arduous, but we finally re-adopted the system in 1999. Hence, we have been witnessing an ‘unhindered’ democratic system of government since then.

Corruption on the other hand is regarded as an immoral and illegitimate use of public power for the benefit of private interest is one of the main problems threatening the developments of this country. Thus, it is not news that corruption is one of the pains in the neck of Nigeria democratic development. It is institutionalized in every Ministries, Departments and Agencies of government and it is systemic. The question is how is the Nigerian state corrupt using democracy as the basis of our analysis? To what extent can democracy as a system of government develop the Nigerian state? To what extent can or will the political class deviates from corruption? Continue reading “Democratic Corruption: The Case of Nigeria, By Ogunmakin Oyewumi”

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Stealing Is Not Corruption: Why Nigeria Is a Case Study in Absurdity (Part Two)

 By Darasimi Oshodi

In my last post, I started giving reasons why I think Nigeria is a case study in absurdity. The first reason I gave was the way our politicians change parties without caution. They even seem to get a kick out of their actions. I cited the examples of Nuhu Ribadu, Atiku Abubakar, Femi Fani-Kayode, Rotimi Amaechi and many others. I mentioned the governor of Ondo State, Olusegun Mimiko and likened him to Nicolas Anelka due to the way he has been hopping from one party to another. And to justify this name I gave him, the governor last week decamped again. He has returned to the Peoples Democratic Party (PDP). In a related development, former governor of Plateau State, Joshua Dariye has revealed he is also returning to PDP. With the rate at which defections are taking place now in Nigeria, it seems the political transfer window is now open and the political clubs with the biggest offers are likely to sign on new players for the 2015 political season. Didn’t our president go for medicals in Germany recently? I am not insinuating that he wants to transfer to another political club but maybe his current club wants to be sure of his fitness in order to avoid a very costly mistake it made some seasons, sorry, years, ago when it fielded an obviously physically unfit person as its presidential candidate.

In this post I will be exemplifying another phenomenon which makes our country a case study in absurdity. A senior friend had suggested that instead of ‘absurdity’ in the title of the last post I should have used ‘wrong norm’. His argument was that I can only call a situation ‘absurd’ if I can provide counterfactual evidences. He posited that what we have in Nigeria is the acceptance of wrong norms. That is, we have come to acknowledge the wrong norms as right. So anyone who attempts to observe the right norms will be seen as the abnormal person. But I am sticking to ‘absurd’ in the title of this post because it’s a continuation of the last post. So my second reason for saying Nigeria is a case study in absurdity is because in Nigeria we celebrate questionable characters, corruption and criminality. I present below instances to substantiate my assertion. Continue reading “Stealing Is Not Corruption: Why Nigeria Is a Case Study in Absurdity (Part Two)”

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Unprofessionalism: The Nigerian Experience, by Yinka Ogunlana

by Yinka Ogunlana

The effects of professionalism can never be over-emphasized in developed nations around the world. In this vein, it is imperative to look into Nigeria; the biggest, largest, most populous and biggest oil-rich country in Africa, which is equally blessed with both immense human and natural resources. Most times, one begins to ponder on the devastating, dehumanizing and deteriorating conditions faced by Nigerians and even the country as a whole despite its wealth and enviable resources. One of the major challenges which is not only affecting the growth of the country but is also a dent on the nation’s
integrity is unprofessionalism.

It is disheartening to note that a country with about 170 million people and to some reasonable extent values education as it records over 7,000 graduates and 2,000 M.Sc. holders every year is unable to
boast a reasonable  level of manpower in most of its sectors. But then, for Nigeria to record the desirable success in every of facet of her national life, it is my thinking that professionalism is crucial
towards re-branding and rebuilding the country.

As a matter of fact, unprofessionalism is unarguably that microscopic flu that has eaten deep down into the affairs of the nation and is on the verge of destroying the economy though many will easily look at
corruption as the bigger flu; but it’s important to know that corruption is a product of unprofessionalism. A right-thinking individual won’t expect an agriculturist to serve as a doctor; this
also applies to most of our leaders. It has become a chorus on almost everyone’s mouth that corruption is that common and infectious disease confronting the county but as an average professional Nigerian will not only help to re-build the economy but also make sure that there is an equitable distribution of resources as he won’t want to involve in corrupt acts. Continue reading “Unprofessionalism: The Nigerian Experience, by Yinka Ogunlana”

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The Controversial Nature of Politics in Nigeria, By Yinka Ogunlana,

 

By Yinka Ogunlana, Crawford University, Nigeria

POLITICS is ubiquitous; yet the question always on my mind is why its practice should be absurd in Nigeria. Over the years, political scientists have observed politics as an authoritative allocation of values in the society. Aside this, we should understand what the great Greek philosopher Aristotle meant when wrote that that man was by nature a political animal. He referred to man as a political animal in the sense that we all need to interact with one another which apparently means the essence of social existence is politics and he who does not need the state is either a god or beast which implies that nature has put man in a political situation.

But then, it is obvious that man has moved from being a political animal to an evil genius. It is a universal phenomenon that politics has to do with power but why should it be obtained by all means? As Jean Montesquieu noted, power corrupts and absolute power corrupts absolutely. In this vein, it is good to note that every man strives for power in Nigeria which shows everyone exercises the spirit of politics and at the same time expresses a competitive spirit towards striving for a good life. But, violent acts, murder, political assassination, corruption and killings do not portray the real nature of politics neither does it show what politics is or should be.

It is my opinion that Nigerians are yet to understand the great joy a country can possess by understanding and embracing what real politics is; a politics that entails healthy competition, free and fair elections, an independent judiciary, an independent electoral commission and a maximum security before, during and after elections, as this will not only promote the image of Nigeria as a country but will also give it a chance to redeem it’s lost glory in the world. The nature of politics should never be misconceived as it is currently been observed in Nigeria. Our leaders, and even we the governed have so misconstrued the nature of politics that many youths today now regard the politics of Nigeria  as a ‘dirty game’ due to the bare fact that we live in a seemingly climate of a vague nature of politics rather than the real light of governance; which politics from the ancient Greece connotes.

Majority of people in Nigeria think and practice politics in an evil, aggressive, heartless and wicked manner thereby making Nigeria’s politics so horrible.  Ideally, politics should be an activity to keep the county alive and not dead, it should be for the best and competent ones and not for the weak- minded, feeble, ignorant, novice and selfish as real politics concerns itself with setting collective goals in an institutionalised setting .The true nature of politics is a means to that expected end which every good Nigerian aspires. Until we get to realize and understand the real nature of politics, it might be difficult to talk about any meaningful development in 2020 and beyond. Furthermore, it is important to note that politics cannot be eradicated or killed because it is a natural phenomenon and at a higher level, its true nature forms the basis on which every reasonable, responsive and responsible government is built. Now, the question remains: when will politics become a clean game in Nigeria?

 

 

 

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Nigeria: Politics at a Pivotal Moment (analysis)

AllAfrica.com, by Peter M. Lewis

Washington, DC (USA) — The approach of elections next month in Nigeria has raised hopes and apprehension in almost equal measure.
In a dozen years of civilian rule, Nigerians have endured a string of votes of deteriorating quality and credibility. The last polls, in 2007, showed signs of entrenching a dominant party regime that exhibits uncertain leadership and little accountability.

Sporadic conflict, economic uncertainty and an extended political-succession crisis fostered serious concerns about the direction of the country.

Optimists fastened on Nigeria’s resilience, resources, and a tenuous legacy of reform. Pessimists have emphasized the country’s social fissures, profound inequities, weak institutions and recurring social violence.

The politics of the current electoral season pose new possibilities along with substantial risks. President Goodluck Jonathan’s promises of electoral reform, backed by fresh leadership at the country’s Independent National Electoral Commission (INEC), have lifted expectations for greater competition and transparency.

The political field is crowded with rivals within the ruling People’s Democratic Party (PDP), as well as prominent challengers in opposition parties. Having secured the PDP nomination, the president will enjoy the advantages of incumbency that will likely favor him in the general election.

However, the governing party could lose ground in legislative and state polls. It remains to be seen whether the political establishment – many of whom are focused on political spoils and schooled in the manipulation of elections – will engage in fair competition.

Regardless of the outcome, the popular validity of the election process will substantially influence Nigeria’s prospects during the next administration.

A legacy of electoral misconduct, eroded legitimacy and weakened governance shadows the nation’s politics. Another troubled political season could seriously impede the nation’s progress.

The administration to be inaugurated in May will face economic volatility, chronic problems of infrastructure, regional militancy and communal conflict. Legitimate leadership, at the center and in the localities, would be in a better position to meet these challenges.

Should the elections be tainted by misconduct and violence, the emerging government will have to contend with deficits of legitimacy and local restiveness. However, if the upcoming polls are orderly and the results widely accepted, Nigeria’s fledgling democracy could benefit from a reservoir of popular support.

The stakes in the 2011 elections extend well beyond the immediate contest of personalities and party factions.

All of Nigeria’s post-independence elections have been problematic. Two previous civilian administrations – the First Republic in 1966 and the Second Republic in 1983 – failed in the wake of contested elections. Despite a credible presidential poll in June 1993, General Ibrahim Babangida annulled the results and the Third Republic was stillborn.

Since the inauguration of a Fourth Republic in 1999, elections have been marred by disarray, fraud and violence. Domestic and international observers deemed the transitional elections acceptable though flawed. The urgency of ushering in a civilian regime took priority over niceties of procedure.

Against hopes that the 2003 polls would be an improvement over the previous cycle,  those elections turned out to be markedly worse. Various observers and the Nigerian media documented widespread misconduct, falsification of results, violence and intimidation.

The ruling PDP increased its majority in the legislature and its control of the states, though many areas scarcely had recognizable elections. The discouraging trend prompted many calls for electoral reform, including some from within the PDP.

The 2007 cycle, however, defined a nadir in the country’s elections. Amidst chaotic preparations, registration lists were absent or inaccurate, ballots were delivered late or not at all, voters stayed away from fear or apathy, and ballot boxes were alternately stuffed or carried off. Much of the counting was conducted in secret, and results were posted in summary form that prevented verification.

Critics accused INEC, under its chairman, Maurice Iwu, of organizing elections that were “programmed to fail” in line with guidance from political barons. While misconduct was evidently widespread, political incumbents had unquestioned advantage.

The ruling party’s candidate, Shehu Musa Yar’Adua, garnered an implausible 70 percent majority, while the party again accumulated governorships and assembly seats. More than 300 people died during the election period, and observers largely questioned the validity of the polls.

The balloting was trailed by a stream of court challenges to state and national results. Many commentators suggested that a political oligarchy was quickly consolidating its dominance. This view was somewhat offset by the inclusive nature of the PDP, which had national presence, ethnically diverse leadership, and an informal principal of power sharing, known as “zoning,” that called for alternation of major offices among candidates from different regions.

President Yar’Adua, from the northwestern state of Katsina, succeeded two-term President Olusegun Obasanjo, a Yoruba from the southwest. Yar’Adua’s ticket was balanced with Vice President Goodluck Jonathan, who hailed from Bayelsa state in the Niger Delta to the south. Despite the election woes, the new administration was accepted by many Nigerians, who saw Yar’Adua as an honest individual and hoped for improvements in governance.

Such hopes were largely unfulfilled as the government grappled with significant problems, including a rapidly deteriorating security situation.

Insurgency in the oil-producing Niger Delta intensified, reflecting deep-seated community grievances mingled with economic agendas. By 2008, nearly half of Nigeria’s oil production was shuttered by militant activities, while theft siphoned further revenues.

Armed Islamist groups at odds with the political establishment emerged as a looming threat in northern states. Variously dubbed Boko Haram, Kala Kato, and Taleban – some groups comprising a few dozen people, others with members in the thousands – these sects clashed with security forces in several incidents across the region.

The diverse, middle-belt city of Jos, where ethnic and religious groups regularly clashed over land and economic rights, became another center of tension. Amid communal conflicts, the death toll climbed into the thousands.

The government attempted to address large-scale fraud and insolvency in the banking system, appointing an energetic new Central Bank Governor, Lamido Sunusi, who sought far-reaching reforms.

But the global economic downturn beginning in 2008 put major stress on government finances. The administration burned through half its prodigious foreign reserves and quickly ran up domestic debt.

Resources inherited from the previous government and a recovery of oil prices helped to shore up a shaky equilibrium. Still, there was little headway on a promised initiative to expand the country’s anemic power supply, as electricity output actually diminished.

These problems gained urgency as the country descended into a leadership succession crisis. President Yar’Adua’s fragile health took a turn for the worse in November 2009, when he left the country for medical care in Saudi Arabia. As weeks stretched into months, the president’s family and aides refused access to others and withheld medical information. The country was essentially without executive leadership until the National Assembly passed a February resolution designating Jonathan as acting president.

With the return of the ailing president to Nigeria a few days later, Jonathan served in an uncertain legal and political status until Yar’Adua died in May. At that point, Vice President Jonathan became president in accordance with the constitution.

As he attained executive authority, Goodluck Jonathan outlined a set of goals that suggested possibilities for reform.

Acknowledging entrenched problems, he stressed the need for credible and peaceful polls in 2011. Another priority was a consolidation of peace in the Niger Delta, where conflict subsided in the wake of an October 2009 amnesty initiative. Further, Jonathan promised to make headway on improving the decrepit electricity system.

A series of high-level appointments underscored these commitments. Most visible was the removal of Maurice Iwu as head of INEC and his replacement in June by Professor Attahiru Jega, a widely respected academic and democratic activist. Jega’s high profile and reputation for integrity won accolades throughout Nigeria and abroad.

While Professor Jega projected an energetic stance, a simple change of leadership was clearly insufficient to ensure better polls. Many analysts pointed to problems of corruption and capacity extending throughout the electoral commission. Former Governor Donald Duke of Cross River state published an expose on rigging elections, which detailed frequent collusion between state governors and election officials.

Credible elections depend upon coordination among INEC, the political parties, incumbent leaders, the security agencies and civic groups. Jega took up his posting with a short time line, scarce resources, and an uncertain mandate.

Preparations for the vote have followed an uneven course.

The National Assembly was fairly quick to grant INEC’s funding request of more than $600 million. Longer deliberations over the enabling legislation for primaries and the general elections followed.

Party primaries commenced in January with the PDP’s nominating contest. While the actual voting appeared transparent, money was freely disbursed to delegates by all contenders, according to widespread media reports and the accounts of participants.

President Jonathan secured the party’s nomination with nearly eighty percent of the votes, swamping his challenger, former Vice President Atiku Abubakar, who contested as a northern “consensus” candidate.

The registration exercise, a litmus test of INEC’s capacity and its intent to enfranchise voters, was fraught by delays and technical difficulties. Officials opted for a process that relied on electronic devices for recording and managing data, despite the complexity of the system and shortages of electricity nationwide.

Registration of voters was deferred until January, and then extended, to iron out glitches and improve access. Civil society observers noted improvements in performance throughout the exercise, although many Nigerians related stories of long lines, failing equipment, and confusion at registration sites.

INEC eventually announced that about 73.5 million citizens had registered – possibly more than ninety-five percent of eligible voters. Skeptical Nigerians have questioned how such efficiency was achieved amidst the evident problems of infrastructural and organizational difficulties. Posting of the register is said to be underway, though hard copies are not available at all locations.

Apart from logistical and administrative challenges, the political party landscape is contentious and fluid. Although Nigeria claims 63 registered political parties, only a few compete effectively at national or even at state levels.

Through expedient politics, the governing PDP has accommodated diverse elites and strengthened its grip on power. With few distinctive programs or political philosophy, the party has coalesced around its ability to capture elections and the promise of parceling out state-mediated largesse from the prodigious oil economy.

The power-sharing principal embodied in “zoning” has been the cornerstone of the PDP’s claim to inclusiveness. Now, Goodluck Jonathan’s succession from the short-lived Yar’Adua presidency could upset that informal compact.

When Jonathan announced his candidacy in September 2010, disgruntled PDP members from northern states mounted a challenge. Several contenders emerged, including former military ruler Ibrahim Babangida; former Vice President Atiku Abubakar; a former high security official, Aliyu Gusau; and the Kwara State Governor, Bukola Saraki. Each has notable assets along with political baggage.

After lengthy consultations the Northern Leaders’ Political Forum (NLPF), an informal caucus of notables selected Abubakar as the consensus northern candidate within the PDP.

Interestingly, Atiku Abubakar’s defeat in the PDP primaries did not incite sectional rancor or a violent regional schism of the party. Abubakar himself joined President Jonathan’s campaign committee, as did principal figures in several other northern candidates’ campaigns and some leading members of the NLPF.

Former military ruler Muhammadu Buhari, who enjoys a reputation for integrity and is widely popular in the north, is again competing for the presidency after unsuccessful campaigns in two previous elections. He is the candidate of the Congress for Progressive Change (CPC) and has balanced his ticket with Tunde Bakare, a Yoruba from the south who is a Pentecostal minister and prominent democratic activist.

The All Nigeria People’s Party (ANPP), a perennial rival to the PDP, with a significant following in the north, has nominated Kano State Governor Ibrahim Shekarau to head its presidential ticket.

Nuhu Ribadu, the former head of Nigeria’s leading anti-corruption body, the Economic and Financial Crimes Commission (EFCC), has entered the race under the banner of the Action Congress of Nigeria (ACN), a party with a reform profile and electoral strength in the southwest. All three of these prominent challengers are Muslims from the northern states.

The PDP retains a durable national organization, linkages to influential governors in most areas of the country, and substantial advantages of incumbency. Yet the internal tensions and external challenges have opened the way for significant gains by opposition parties in legislative, state and local races.

Some analysts have even conjectured that the presidency could be won through a plurality rather than an outright majority – a possibility under Nigeria’s constitution. While outcomes are uncertain, many Nigerians have been heartened by a new sense of competition and diversity.

The specter of violence is always present in Nigerian politics, and a string of incidents has raised concerns. Last week, a PDP senatorial office in Niger State was bombed, while a February blast in Bayelsa targeted the opposition Labour Party. These are the most visible in a series of bombings and killings in scattered parts of the country.

The violence, while not epidemic, contributes to public apprehension about security at the polls. As campaigns intensify, INEC and the police have pledged greater efforts to ensure a peaceful vote.

In the end, Nigeria’s political course could be influenced more by the conduct of the 2011 elections than by the actual results.

Few Nigerians expect polling to be free of administrative problems or even sporadic misconduct. Civic activists have urged “mandate protection” by voters at the polling stations to keep materials in sight and to prevent the falsification of results.

If elections are generally orderly and fairly counted – as verified by personal experience, local media, and domestic observers – both candidates and the public will likely accept the results or contest them peacefully through the courts.

However, if there is a widespread perception of disarray and manipulation, then popular disaffection and political rancor will trail the polls. Extra-judicial efforts to protest flawed results are likely, and violence cannot be discounted, especially in flashpoint areas where armed groups have been active.

President Jonathan has repeated his public commitment to open elections, including his willingness to accept a losing verdict at the polls. His assurances encouraged many Nigerians who have grown cynical about the nation’s political class.

The president’s intentions, however, are not the only factor in the vote’s conduct and credibility. Networks of politicians, party barons, and public institutions – including electoral officials and the courts – have been implicated in past election malpractices.

Should these elections be perceived as thwarting popular choice and consolidating an elite cartel, any future administration will find it difficult to arrest the drain of resources by self-interested politicians and cronies, to manage an economy meandering among shocks and turbulence, or to stabilize a national landscape marked by social violence.

In contrast, the achievement of popularly accepted elections would pave the way for restructuring Nigeria’s economy, promoting more broadly shared growth, improving the quality of governance and mitigating domestic conflict.

Friends of Africa’s most populous nation hope for that outcome.

* Peter M. Lewis is director of African Studies and associate professor at Johns Hopkins University, School of Advanced International Studies (SAIS). His published works on Nigeria include Growing Apart: Oil, Politics, and Economic Change in Indonesia and Nigeria.

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Why Politicians Don’t Deliver Electoral Promises

In case you do not have enough time to read this brief piece, the answer to the question raised above is: corruption. Yes, sounds familiar? I am talking about politicians in developing countries. In general terms, politicians in developed nations are not angels but they are structurally constrained to corner public monies to build private mansions and buy private jets. They hardly can stash away their taxpayers’ monies in ‘foreign accounts’. Any time a leader in Africa is removed, what you hear next is that his assets (and many of the guilty leaders are men) are being frozen in Switzerland or London. It still beats my imagination why someone entrusted with public trust will embezzle public monies and lodge same in private accounts in foreign lands.

Not all politicians make empty promises, and some of them do try to deliver. Human problems cannot be solved a hundred per cent. Some politicians sincerely want to make a difference in the lives of the electorate. Some want to genuinely improve the welfare of the people; build more roads to connect rural farmers to urban consumers, make drinking water available to millions who need it, make environment clean to reduce health hazards, and pay more wages to teachers, civil servants, doctors and nurses to deliver services. But public funds cannot duplicate themselves. As promises and plans are made, and contracts awarded, the same politicians or their cronies or their patrons are somewhere busy, planning and promising themselves and their concubines some big mansions and exotic cars and jets in Dubai, London, New York and Geneva. You see, out of nothing, nothing comes. And the cycle continues till the next election. To break such an ugly trend, people will generally need to wake up, vote right leaders into power and devise means to hold them accountable.

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Chinafrik –Economic Model and Blueprint for African Development.

CHINAFRIK as a concept is defined as ”the process wherein developing states in Africa adopt economic measures from China and localize such measures for their respective development.

While the developed countries of the world worry over the management of technological breakthroughs and volatile economic landscapes, many developing and underdeveloped nations are cringing in poverty, hunger and starvation, woeful health conditions, high maternal and child mortality rates, energy crisis, and high incidences of corruption, among others.

Most Africa countries, unfortunately, find themselves in the latter categories. The failure of African  nations to develop and match such countries as the Asian Tigers, who started the race to nationhood with us, is essentially a leadership problem, a self-imposed crisis of underdeveloped psyche that makes our leaders enslaved to primordial instincts. They focus on power acquisition as a means to self-aggrandizement; undoing and sometimes, complete elimination of perceived enemies.

Consider a report by GOLDMAN SACHS: The rise of the BRICs(Brazil, Russia, India and China). Goldman Sachs had to say in its original report, ”Dreaming with BRICs: The path to 2050,” published in 2003; that: China’s economy will surpass Germany in the next few years, Japan by 2015 and the United States by 2041. India’s growth rate will be the highest – not China’s- and it will overtake Japan by 2032. Taken together, the BRICs could be larger than the United States and the developed economies of Europe within 40 years.

According to the Goldman Sach’s report, the economy of China overtook Germany’s a year earlier than expected, and has already overtaken Japan’s by July 2010. It is now believed that the Chinese economy will overtake the United States by 2027. And with India accounting for 10 of the 30 fastest growing urban areas in the world and 700 million people moving to cities by 2050, its influence on the world economy will be bigger and quicker than was implied in 2003 (source: Wikipedia).

Closely following the BRIC prediction is the 2004 Report on the NEXT ELEVEN (N-11), in which Nigeria is included among eleven nations also warming up to assert themselves in the global economic map. While China overtakes the United States as the greatest economic power in the world by 2047, Nigeria would become the 20th largest economy by 2025 and the 12th by 2050 ahead of G-7 giants, Italy and Canada.

Of interest to me is that the BRICs have gone through abject poverty, but armed with a strong demographic profile, vast natural resources and an adjusted purposeful leadership with vision, have asserted themselves in the new economic order where demography has become a major factor in a world of competitiveness. They planned for it, made it work and today are economically challenging the G-7 nations. The same story can be an economic reality for Africa if African leaders and the African people can show the same spirit of national interest, patriotism, and selfless devotion to the development of the continent.

The development of most western economies and the G-7 nations can be attributed to investments in science and technology. Nations such as the United States, Great Britain, Germany, Spain, Netherlands, Japan, Korea and China, among others, are economically developed today largely due to strong and dynamic technological-based system. Needless to say, science and technology are not the only basis for the attainment of economic growth and development around the world. There are economies that appear technologically disadvantaged but have been able to pride in their local resources or strength to achieve optimum development. In other words, they have learnt to globalize the local, and localize the global for their development. That is exactly what China did, and that is what needs be replicated locally by Africa nations. Today, the economies of China and India thrive, amongst others, on healthcare. Brazil has been able to develop soccer locally to a world-class level. Others have invested in the area of tourism for their economic development.

A call goes out in this respect to African leaders under the auspices of the African Union. As addressed in an earlier article titled ‘GLOCALISATION, in my view, African Union should positively challenge itself towards what China has been able to achieve today in economic terms. If nations such as Brazil, India and China who started the race to nationhood building with nations in Africa such as Nigeria, Ghana, and South-Africa can achieve this much economically, then the latter can do it with commitment and determination. To this end, the African Union should collaborate with sub-regional bodies such as ECOWAS, SADC in the actualization of CHINAFRIK locally. There is the need to locally identify what defines each region in terms of its resources and potentials. This should be followed by an integrated developmental framework, short or long-term, designed for each respective region out of the identified potentials therein. Such a framework or model needs to outlive any government in power in all the states concerned.

The end product we envisioned to see is an Africa with globally recognized in academic prowess and intellectual proficiency, an Africa with the North reckoned globally in sports and healthcare, the East recognized globally in tourism and athlete, and the South globally reckoned in international diplomacy and academics. Consolidating efforts by the AU and sub-regional bodies in this respect over a reasonable period of time will take the continent to her rightful position among the comity of nations. The common practice of employing the services of foreign expatriates in human and infrastructural projects needs to be discontinued henceforth by African leaders. Until we begin to believe and pride in ourselves as a people, much of our desired expectations will not begin to materialize. Juxtaposing and applying the principles inherent in both ‘Glocalization’ and CHINAFRIK will result in an African continent that the citizenry will be proud of. It is our individual and collective responsibility to make Africa a continent of global recognition in human and infrastructural development.

Let’s DO it NOW!

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Africa: Trading With the Enemy

Jason Hickel

The African Growth and Opportunity Act (AGOA) masquerades as a boost for Africa‘s development, but the reality is that it’s nothing less that a new scramble for Africa, writes Jason Hickel.

The last decade has seen a remarkable surge in US economic interest in the continent of Africa. Policymakers who once considered Africa the languid backwater of global economics are now rushing in to stake a claim in the continent’s enormous resource endowment.

Most of this effort operates with a rhetoric focused on ‘partnership’ and ‘development’, with the vision of using US trade and investment to lift Africans out of poverty. US Secretary of State Hillary Clinton exemplified this attitude when she spoke last year at a US-Africa trade policy forum, saying, ‘Let’s help each other make Africa all that it can be.’

But a quick look at the trade policy itself shows that this sugary rhetoric of American benevolence and concern for African welfare is deeply misleading. It does little more than cloak an agenda firmly rooted in economic realpolitik.

Michael Battle, the US Ambassador to the African Union, has revealed the blunt urgency of this agenda in a candid but troubling statement: ‘If we don’t invest on the African continent now, we will find that China and India have absorbed its resources without us, and we will wake up and wonder what happened to our golden opportunity of investment.’

The centerpiece of US trade policy for Africa is the African Growth and Opportunity Act (AGOA). Signed into law by President Clinton in 2000, AGOA is, according to Congress, ‘perhaps the most significant American initiative on Africa in our country’s history’. It provides trade preferences for duty-free entry into the United States for certain goods from sub-Saharan Africa, which is touted as a way to boost African business by encouraging exports. President Bush signed the AGOA Acceleration Act of 2004, which extends the policy until 2015.

THE BIG CATCH

It’s hard to quarrel with the idea that reduced trade barriers around American markets would be a boon for African exporters. The quintessential example is Lesotho, whose textile industry has flourished since joining AGOA and now exports more than $400 million worth of garments to the United States annually.

But there’s a catch. The US president reserves the right to reevaluate each country for AGOA eligibility on an annual basis; 41 made the cut last year. In order to qualify, African countries have to meet a specific set of stringent ‘conditions’.

Topping the list is the requirement that the beneficiary promote ‘a market-based economy that protects private property rights … and minimises government interference in the economy through such measures as price controls, subsidies, and government ownership of economic assets.’ In addition – and here’s the big one – the beneficiary must make progress toward ‘the elimination of barriers to United States trade and investment’.

In other words, AGOA eligibility requires not just mild economic deregulation but the outright destruction of any and all tariff protections, flinging open African markets to a flood of American goods that inevitably undermine local industry. And African countries don’t really have a choice in the matter, for if they refuse to meet these conditions, they effectively forfeit their access to the American market.

For all of the positive spin that US policymakers put on AGOA, nobody ever so much as mentions these draconian measures, which are easily as destructive as the dreaded ‘structural adjustment’ conditions that the International Monetary Fund attaches to its loans. Essentially, AGOA amounts to a coercive free trade agreement with most of the subcontinent.

Given that AGOA requires its beneficiaries to eliminate barriers to US investment, it’s not surprising that the balance of trade comes out strongly in favour of the United States. Trade data shows that Benin, for example, has exported almost nothing to the United States since it became an AGOA member, but has imported some $600 million worth of US goods that have significantly undercut local producers. Some countries do actually export a great deal under AGOA rules – but only those with substantial petroleum and mineral deposits.

Take Angola, for instance; 99 per cent of all of Angola’s exports under AGOA have been energy-related. In the Congo, that number reaches closer to 100 per cent. The same is true of Nigeria, Botswana, and every other country with an oil and mineral portfolio. Indeed, more than 80 per cent of all exports under AGOA fall under this sector.

AGOA, in other words, is designed to pry open new markets for US goods while making it easier for the United States to extract oil and minerals. And since most of Africa’s oil and minerals are controlled by Western corporations like Exxon, Shell, and Anglo-American, this is hardly an arrangement designed to benefit African businesses.

DUBIOUS ELIGIBILITY

If that’s the tragedy, then here’s the farce. AGOA actually does include a number of progressive conditions for membership. In order to qualify, beneficiaries must develop ‘economic policies to reduce poverty’, uphold ‘the rule of law, political pluralism, and the right of due process, a fair trial, and equal protection’, construct ‘a system to combat corruption and bribery’, and refrain from ‘gross violations of human rights’.

In addition, beneficiaries must implement ‘the protection of worker rights, including the right to organize and bargain collectively, a prohibition on the use of any form of forced or compulsory labor, a minimum age for the employment of children, and acceptable conditions of work with respect to minimum wages, hours of work, and occupational safety and health.”

In practice, however, none of this actually applies. Countries renowned for corruption, human rights abuses, and labour law violations are routinely approved for AGOA eligibility. Indeed, the countries with the most flagrant abuses are those that trade the most under AGOA, giving blatant lie to the claim that good governance is a necessary precondition for successful US investment in Africa. Cameroon, for example, enjoys AGOA eligibility even though the government there rules an undemocratic, one-party state, regularly obstructs political meetings, harasses journalists, tortures human rights activists, and turns a blind eye to child labour. But it has a lot of oil.

Neighbouring Chad also enjoys AGOA eligibility, despite rampant corruption and a long tradition of arbitrary detentions and extra-judicial killings. But it has the Chad-Cameroon pipeline – the single biggest US investment in Sub-Saharan Africa – and Bush and Obama have been devoted to protecting the project’s US investors.

Eritrea is another example. In 2003, the UN named Eritrea one of the ‘World’s Most Repressive Regimes’. But it gets AGOA eligibility in exchange for having joined ‘the coalition of the willing’ during Bush’s war in Iraq. Burkina Faso, Angola, Swaziland, and the Congo all benefit from similar double standards.

The issue here is not just that the United States benefits from corrupt and repressive regimes, but that while AGOA claims to create incentives for political reform in Africa, it actually does the opposite. By encouraging the deregulation of oil and mineral based economies, AGOA contributes to the development of ‘rentier states’ that do not have to rely on income taxes for their revenue.

Such states have no incentive to build up a strong middle class, diversify their economies, or respond to the needs of their citizens. In turn, citizens have no incentive to scrutinise government priorities. As the social contract between citizens and the state erodes, endemic corruption inevitably follows, and states become increasingly repressive in order to maintain their grip on power.

This is what economists call ‘the resource curse’ or ‘the paradox of plenty’. An over-reliance on huge oil and mineral deposits ends up generating corruption, inequality, and widespread poverty instead of positive development outcomes. This pattern contradicts the common assumption that economic liberalisation translates into political freedom or democratic reforms.

WHO BENEFITS?

Although AGOA purports to leverage exports as a way of boosting economic development in Africa, it does not stipulate that the exporting companies must be African. Indeed, most of them are American, Chinese, and Indian. The vast majority of beneficiaries under AGOA are not impoverished Africans, but wealthy foreign corporations.

Indeed, AGOA’s insistence on the elimination of local trade barriers allows US companies to bid freely on things like mineral concessions and government contracts. And given that these companies have deep capital reserves, they can usually win, effectively blocking out their African competitors.

In addition, when it comes to industries like textile manufacturing, AGOA stipulates that producers must use US raw materials, which effectively blocks investment in local upstream sectors. Furthermore, because AGOA requires that goods exported to the United States ‘originate’ in the host country, Chinese and Indian clothing manufacturers frequently label their goods ‘Made in Kenya’ and transship them to the United States through Africa to get preferential treatment. The overall effect, then, is that AGOA does not create greater market share for African companies but actively diminishes it.

One might argue that regardless of where the investment comes from, at least it creates jobs. This may be true. But AGOA does not require that the new jobs go to Africans. Indeed, many of the extractive industries that benefit from AGOA import highly skilled labour from developed countries like the United States.

In Angola, for example, most of Exxon’s engineers are Americans. Furthermore, the jobs that AGOA does create for Africans are often deeply exploitative. AGOA has encouraged the development of Export Processing Zones (EPZs) across the continent, where labour laws are nearly non-existent and wages are rock-bottom in order to attract foreign manufacturers. In the textile industry, the net effect is that Asian sweatshops relocate to Africa to take advantage of AGOA incentives.

In Kenya in 2006, the average wage of EPZ workers in Asian sweatshops was a paltry 20 cents per hour, which amounts to barely more than a dollar a day – the lowest wages in the country. Most EPZ workers – the majority of whom are women and doubly vulnerable to exploitation – have to work excessive overtime just to meet their basic needs, and live in constant danger of being laid off without compensation.

CHANGING AGOA

It doesn’t have to be this way. With a few thoughtful changes, AGOA could be used to make trade work for everyday Africans.

First, the economic liberalisation condition should be dropped. Rich countries like the United States, Britain, Japan, and China initially used tariff protections and subsidies to promote their industries in the early stages of development; it’s cruel to deny those basic strategies to African countries desperately in need of development. Second, the political reform conditions should be taken seriously, and used to leverage best practices in human rights and labour law.

Third, local content rules should require that all US investments in Africa should tier up over a set period to at least 80 per cent local labour and local contracts – characterised by genuine registration – and should require investment in local capacity where it proves too poor to meet the necessary standards. Finally, targeted quotas should be used to channel foreign investment to where it’s needed most, rather than to where the regulations are most relaxed.

But changes of this order are not on the horizon, for – as I have demonstrated – the United States is concerned less about the well-being of Africans than about meeting its own energy needs and promoting the interests of American corporations. We need to cut through the deceptive rhetoric of US trade policy and ask the tough questions: Who really benefits from AGOA? Does AGOA enhance welfare and development, or facilitate extraction and exploitation?

As Ambassador Battle’s statement illustrates, the present trade arrangement between the United States and Africa is eerily reminiscent of the era of colonial conquest. In 1875, as Europe set its sights on Africa’s vast riches, King Leopold II of Belgium wrote to his ambassador in London, ‘I do not want to miss a good chance of getting us a slice of this magnificent African cake.’ It’s America’s turn now, and it appears that the Obama administration – like Bush before him – is driven by a similarly disturbing vision: a new scramble for Africa.

Foreign Policy In Focus contributor Jason Hickel is an instructor and PhD candidate in anthropology at the University of Virginia. His research focuses on trade, development, and political conflict in Sub-Saharan Africa.

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