international AID to africa Archives

Former US Vice President and CEO of Halliburton

Corruption is a worldwide problem. For convenience sake, it has been widely associated with developing countries for the most part. It would be dishonest on my part to defend the developing world against charges of corruption. But the story is never complete when we only call the developing country like Ghana or Nigeria corrupt. That means we are only looking at one side of the coin.

Multi-national Corporations (MNCs) with roots in the developing world have a dominating role in propagating this disease in the developing world.

Last week, the Economic and Financial Crimes Commission (EFCC) of Nigeria announced plans to charge Dick Cheney, former Vice President (VP) of the US, with corruption. Mr. Cheney acted as the CEO of Halliburton from 1995 to 2000. Documents coming to light reveal that during that time, the company participated in corrupt and fraudulent activities in Nigeria. One source states that about $180 million was used by Halliburton to bride its way to acquire lucrative natural gas contacts in Nigeria.
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This is just one example of large companies who have the resources to hire experts who can cope with the bureaucratic hurdles normally characteristic of most African countries and obscure rules of play.

I’m very much aware of the situation in Ghana. Local entrepreneurs fight and give up in securing land and other licenses to start operating businesses while International Corporation can work around the system overnight and be in business the next morning. They have the means to “oil” the administrative machinery and speed up long drawn-out decision-making processes.

These corporations are not only infecting our system with the disease that we’ve been fighting for decades, in fact, some of them are directly or indirectly responsible for civil unrest and wars.

In the Democratic Republic of Congo (DRC), it is estimated that nearly five million people have died in wars, the primary drive of which is the fulfillment of the Western economies and people’s unquenchable craving for high-quality jewels and precious minerals such as diamond. Where do the rebels get their arms from? They’re surely not locally made.

The educated elite in Africa benefit from this serfdom. This has become a war of attrition. The system of corruption propagated by MNCs in collaboration with African politicians has become a type of civil war in which the man or woman on the street cannot distinguish between a friend and a foe. They know that these corporations and their local leaders are making fortunes but they see none of the benefits in their everyday lives. Gold and diamonds from Ghana, diamond from the DRC, oil from Nigeria, cocoa from Ivory Coast and the list goes on, but a tin of milk is a luxury to most families.

It is easy for richer countries to attribute African development problems to corruption by African leaders. That is just part of the story. The role multi-national Corporations play should be addressed by their respective governments if these governments really care about Africa. The Western media needs to do a better job covering their corporations doing business in Africa.

I trust that the Nigerian EFCC hold Halliburton according to the very letter of the laws of the land. I’ll also have my ears widely open with regard to what steps the US Department of State takes. If I find something that I think will interest you, I’ll report it as usual. After all, that’s the very purpose this website was built to serve. Please check back

By Kofi Annan

Ahead of today’s G20 Summit in South Korea, two issues stand out for those of us who take an interest in international

development.

First, the concepts of fairness, balance, and the common good have experienced a welcome renaissance as world leaders have had to remind each other of these universal principles to avoid a potentially devastating escalation of their disagreements on currency values and trade imbalances.

Second, while it remains to be seen to what extent it will help to bring countries’ contending economic strategies into line, this rediscovery of basic values comes just as the G20 is beginning to include international development issues in its deliberations. Naturally, it is my profound hope that the principles of fairness, balance and the common good which have become so popular with G20 leaders lately will also inform these discussions — and not only those on issues like undervalued currencies, lopsided trade statistics or skewed consumption patterns however important they may be.

Unfortunately, the signs are decidedly mixed. On the one hand, the global repercussions of the financial and economic crises have clearly nourished an understanding of the true extent and consequences of our interdependence. At least for a moment, there seems to have been a consensus that a world that restricts the benefits of globalization to a few at the expense of many is neither fair nor stable; that one cannot address trade imbalances without addressing the development imbalances that underlie them; and that it is in everyone’s interest to see the developing world graduate out of instability and economic dependence as soon as possible.

However, all these realizations have not yet led to the fundamentally different policies that are so urgently needed. In fact, in many G20 countries the crises, and particularly their effects on the world’s poor, appear already all but forgotten and business and politics have resumed with little regard to the damage caused, the trust destroyed, and the lessons learned. Several G20 members have even used the economic upheavals as an excuse to tighten protectionist policies in direct contrast to their repeated pledges to keep markets open. As so often, developing countries have been among the primary victims.

This is deeply unfortunate as, in my view, the G20 states, both individually and collectively, are the natural drivers of development. They are, by definition, the countries with the capacity, resources, influence and, thus, the moral obligation and responsibility to help those less fortunate.

Many of them have only recently graduated into major economies and their developmental experiences are still fresh. These countries understand that the key to development is not charity but equitable, job creating, and ideally green economic growth fueled by investment in the productive sectors, agriculture, infrastructure, renewable energy, trade, knowledge and technical skills. They also appreciate that the most important sources of development finance must be domestic revenues and private sector investment and that aid’s main value other than in meeting urgent humanitarian needs, is to increase capacities, reduce dependence upon external support, and to lubricate and leverage investment in the sources of growth and good governance.

It is thus encouraging that the development agenda proposed by the South Korean presidency speaks as much to these realities as to a new sense of partnership and genuine mutual accountability. The document, as far as it is known, covers all the right points, including the unblocking of existing initiatives and the need to complement the efforts of other actors such as the G8, the G77 and, of course, the United Nations. If the leaders assembled in Seoul decide to take it on with the same universal values in mind that they now invoke in the areas of trade and exchange rates, we will have gained much.

Having said all this, the implementation of the valuable ideas entailed in the Korean proposal should not be made dependent on the G20 taking them on as a group. While a renewed commitment to development by the world’s most powerful group would certainly be a major step in the right direction and send an important political signal to developing countries, it is of course not enough on its own to overcome the immense challenges that these countries face. Nor does it necessarily invalidate some of the concerns raised regarding the G20’s legitimacy and capacity.

What really counts is that each member of the group internalizes the concepts of fairness, balance, and the common good and adapts its behaviour accordingly. If the G20 setup can help them do so by playing to its unquestionable strengths of composition, reach and sheer economic prowess, this will be all the better and should not only be welcomed, but encouraged.

Kofi Annan is Former UN Secretary General & Chair of the Africa Progress Panel.

Tag: international AID to africa

Multi-National Corporations play it ‘dirty’ in Africa