Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 3.0 Unported License.  If you broadcast our audio commentaries please consider a recurring donation to Black Agenda Report.

Rethinking the Role of Global Investment in Africa’s Development

  • Sharebar
    Printer-friendly versionPrinter-friendly version

    by Yash Tandon

    So-called development “aid” from corporations and banks is inherently corrupt. Genuine development and independence can only be achieved by breaking as much as possible from the global capitalist web. “At the heart of the contemporary civilizational crisis is the reductionist logic that values everything in terms of money.”

    Rethinking the Role of Global Investment in Africa’s Development

    by Yash Tandon

    This article was previously published in Pambazuka News.

    There is no possibility of a ‘distributive solution’ within the present system, which is structurally engineered to produce inequality.”

    Much hope is placed on foreign direct investment to deliver development capital for African countries. Yet FDIs are part of the global financial capitalist system, which maintains and reproduces inequality and keeps African states dependent on Western countries and financial institutions

    Africa’s political leaders are under illusion to believe that foreign direct investments (FDIs) will get them out of their development crisis. This is not to dismiss FDIs but to provide a framework for an analytical and critical understanding of “capital,” how it is generated, and what its real function is.

    Money and Capital

    I am not breaking new ground in stating that capital is simply savings of the past used for production along with other factors of production such as land, labor and enterprise. It is not the same thing as money. Essentially, money is a system of credits and debts – two sides of an accountant's ledger. You create debts as you create credit.

    Capital, on the other hand, is money used to add value to production. Part of this added value goes to wages, part goes to restore wasted machinery and natural resources, but a good part goes to profit accumulation. In our times, Capitalism has reached a stage of what some call “financialized capitalism” where finance is privileged over production, everything is collateralized and securitized, and local and national markets are destroyed to the benefit of a couple of hundred global corporations and banks.

    The Social-Political Cost of Financialized Capitalism

    The world has become more unequal over the last 50 years than over the preceding one thousand. The 2011 study by the Organization for Economic Co-operation and Development (OECD) “Divided we Stand: Why Inequality Keeps Rising” revealed that globally, the rich-poor gap has widened in the last decade. Between nations this is clearly evident. But even within advanced countries – including the “egalitarian” states such as Germany, Denmark and Sweden – the rich-poor income and welfare gap is growing. What the study does not say is that there is no possibility of a “distributive solution” within the present system, which is structurally engineered to produce inequality.

    The political and social forces, even in the West, are weakening in relation to the power of global corporations and a global bankocracy.

    The Role of Aid and Investments

    In this context, the role of the so-called “development aid” is totally misunderstood or deliberately misrepresented. Aid is corruption. Why? Because it corrupts government policy. In return for “aid” governments in Africa are obliged to surrender policy space to the “donors” and the IMF. What can be more corrupt than that?
    Aid does something else besides corrupting democratic good governance. It creates space for foreign direct investments (FDIs). FDIs are a package comprising generally of money-capital (or a credit line), production or marketing knowhow and technology. FDIs don’t just drop from the sky; you have to negotiate the terms with the owners of capital. They are usually big corporations, banks including the World Bank, who come to negotiate with you with a phalanx of financial and legal experts. Negotiations can take months, even years. A strong country with a huge domestic market, such as China, can use its market power to negotiate a useful FDI package. But Africa is nowhere near China in negotiating such deals. Most of them are hostages to the global corporate owners of capital and technology.

    Bilateral Investment Treaties are an exercise in undermining the sovereignty of the capital-receiving countries.”

    The challenges to unpackage FDIs are formidable. Global corporations do not act alone. They bring the power of their mega-states to back up their negotiations. Investments are generally made within the framework of Bilateral Investment Treaties (BITs). It is now widely acknowledged, even in government circles, that BITs are an exercise in undermining the sovereignty of the capital-receiving countries. BITs invariably provide for extra-territorial rights for the owners of capital, including, typically, protection from expropriation; free transfer of exorbitant profits and royalties; and litigation under the jurisdiction of either the capital-exporting countries or international arbitration. At the time of writing, Uganda is being subjected to immense pressure by the U.S. government to sign a BIT. If signed, it will effectively undermine the sovereign rights of the people of Uganda.

    What, Then, is the Way Forward?

    There are three possible ways out of this kleptocratic capitalist quagmire. One is at the global level; the second at the level of the relations between Africa and the rich developed countries; and the third at the local, grassroots level of ordinary people.

    At the global level, it should be clear to all but the most dogmatic capitalist ideologue that the structural redistribution for global justice requires systemic transformation. Legal and institutional reform is insufficient, even misguided. Reform within the existing system can never achieve more than marginal redistribution, since structural and social (class) inequality is intrinsic to and necessary for the survival of the existing order. Hence the whole notion of investment needs to be redefined, away from the capitalist market logic.

    There is a seriously flawed logic in the mainstream notion that Africa suffers from a “savings gap,” which must be filled by aid or investments from the West. The reality is that Africa does have massive savings. But there are various ways in which savings are drained away – among them, for example, transfer pricing by the multinationals, corruption by state and corporate officials, and other so-called illicit financial flows (IFF). These lead to little, or even negative, domestic saving in Africa. A deeper, real-life analysis should lead to the conclusion that instead of looking for aid and foreign capital, Africa should focus on plugging this hole in its savings bucket.

    Reform within the existing system can never achieve more than marginal redistribution, since structural and social (class) inequality is intrinsic to and necessary for the survival of the existing order.”

    Finally, at the local or community level, ordinary people in the long run have to make a conscious effort to innovate ways and means of decoupling from the market-based iniquitous value system. Decoupling is not the same as autarchy. Autarchy is neither possible nor desirable. On the other hand, globalization is also not inevitable or desirable. At the heart of the contemporary civilizational crisis is the reductionist logic that values everything in terms of money. Everything, including the dignity of the individual – especially vulnerable women and children – is subject to the “law of value.” Everything is commoditized.

    However, in the interspaces of this globalised system there are heroic efforts by some communities to distance themselves from the system. These include innovative approaches, including production of goods and services based on exchanges without involving money. Also, where money is needed as a medium of exchange, communities have created “communal money” (a kind of labor voucher system) that is delinked from national currencies, which are notorious, especially in our times, to fluctuations and speculations.

    Conclusion: Where is the Problem?

    The problem is at two levels – one at the structural level and the other at the level of political leadership. The first is primarily economic, the second is primarily political or to use the currently fashionable term at the “governance” level.

    At the structural level, the problem stems from the global deformation of the capitalist system. In some of the newly industrializing countries of the South – such as China, India, Brazil and Turkey – capitalism is still substantially productive and still in its early stages. They continue to depend on technology and knowhow protected in the West by intellectual property monopoly rights. But capitalism has no future in Africa. Despite bold efforts to “Africanise” capitalism in some countries – such as South Africa, Kenya and Nigeria – these efforts over the last fifty years have largely failed. Admittedly, there are a couple of hundred multi-millionaire African crypto-capitalists with substantial control over some productive enterprises that operate nationally, regionally and even globally. But the rest of the economies of Africa are dominated by global corporations – especially in the mining, commodities, finance and service sectors. The post-1980s liberalization has decimated what little industrialization took place in the preceding twenty years. The much vaunted “growth” rates in Africa of 5-10 per cent is a conceptual and statistical trick played by global institutions such as the IMF and the World Bank and the ruling elites in Africa.

    Capitalism has no future in Africa.”

    But if capitalism has no future, socialism is a distant goal. It is going to be a long march. Self-reliance and not aid or FDIs is the way forward. And here is where the question of democratic governance and correct political leadership becomes a critical factor. Some of Africa’s past leaders, such as Julius Nyerere, attempted to innovate original approaches to Socialism, but they have been vilified by the dogmatic “Marxist” left, mainly in the West but also in Africa.

    The leadership question therefore is critical.

    Yash Tandon is a Ugandan academic, teacher, political thinker, rural development worker, civil society activist and institution builder. He is the author and editor of numerous books and articles. www.yashtandon.com

     

    Share this

    -- [...]???????????? -

    --
    [...]???????????? - ????????? ?????? ????????? ????????? ???????????????.[...]
    # fdpod.com
    ### 칭찬합시다 - 사용안함 - 박종범 영산 회장님 많은 후원 감사드립니다!
    ...etcetera. - Catalog al afacerilor
    ::대학원 연구실 소개:: - 김윤희교수의 ë””ì§€í„¸í†µì‹ ì—°êµ¬ì‹¤ 소개
    [***] [***]
    [主页]
    [続きを読む]
    [fdpod.com] fdpod.com
    [H]
    [Home]
    [I Agree, Let Me Go!]
    |
    >
    11/3/2014 4:38
    12 Things You’re Doing Wrong on OKCupid
    2012년도 수치계산 게시판 - 수치컴퓨팅 및 응용 ìˆ™ì œ2 openGL포함 소스코드
    2013_winter mechmath - [중요] 이준상 교수님 홈페이지에서 서식 다운받으십시오.
    38
    a podcast about sex
    ชมเว็บส่วนตัว
    ‘Pippi Longstocking’ Studio On Tami Erin Adult Picture
    【More...】
    「fdpod.com」
    » fdpod.com
    他サイトブログ
    參觀發表人的個人網站
    เข้าชมเว็บไซต์
    Accueil
    adult performer Siri and International Mr. Leather follow-up
    浏览发表者的主页
    Apsilankyti vartotojo tinklapyje
    Author\'s Website
    Avatar
    Bekijk de homepage
    Bekijk Webpagina
    Besøg brugerens webside
    Besøg Web siden
    Besøk innleggers hjemmeside
    Besøk Medlemmets Nettside
    Besök användarens hemsida
    Buy Real Cheap Facebook Likes
    Buy Vine Likes One Can Hire Providers To Get Help In Buying Facebook Likes
    瀏覽會員的個人網站
    続きを読む
    Cassandra
    chicago sex podcast
    chicago sex podcast - www.fdpod.com
    chicago sex podcast (not verified)
    chicago sex podcast’s avatar
    Chicago Sex Positive Podcast
    child porn
    child porn\'s Gravatar
    Clemmies Homepage besuchen
    Click here to visit this page
    Close this Frame.
    comedian and attending sex addict classes
    Content URL
    Сайт автора
    Daniels
    Deyoung
    DJ
    Посетить сайт автора
    Посетить Web Page автора
    Посетете сайта на потребителя
    괌여행팁 - 9ì›”10일부터 웨스틴 ìžìœ ì—¬í–‰ 상품을 이용시 ë¬´ë™ë ¥ í•´ì–‘ìŠ¤í¬ì¸ ê°€ 무료로...
    访问此网站
    访问该域名
    访问该网站
    êµì œ > 사진첩 - 2014ë…„ 4ì›” 야외예배2 - 동명초등학교
    êµíšŒì¼ì • - 2013ë…„ 05ì›” 교회 주요행사 안내
    Ecampus - http://www.afbcosmetics.fr/nike-air-max-1-c-6/nike-air-max-1-femme-c-6_8/
    Eric Barry Chicago
    Eric Barry Chicago sex
    Eric Barry Chicago sex offender
    eric barry is gay
    Facebook\'s Black Market Problem Revealed
    fdpod.com - www.fdpod.com
    fdpod.com (4个脚印)
    fdpod.com (not verified)
    fdpod.com fdpod.com
    fdpod.com guy porn
    fdpod.com guy porn - www.fdpod.com
    fdpod.com guy porn (не проверено)
    fdpod.com guy porn (not verified)
    fdpod.com Says :
    fdpod.com sucks
    fdpod.com trackbacked on October 26, 2014, 11:41 am
    fdpod.com&hellip
    fdpod.com/
    fdpod.com/RS=ADArOAi.qzaglV_tZhQlol6Gt0INKI-?mobile=no
    fdpod.com:fdpod.com
    free porn
    free pussy
    free sex
    free xxx porn
    free xxx porn - www.fdpod.com
    free xxx porn(free xxx porn)
    Fugazi Full Disclosure Lyrics
    Full Disclosure
    Full Disclosure podcast
    Full Disclosure Podcast with Eric Barry
    Full Disclosure website
    Full Disclosure: Chicago\'s Sex Positive Podcast - Chica[...]
    Full Disclosure: Chicago\'s Sex Positive Podcast - Chicago-based podcast dedicated to sex positive news, interviews, and comedy with comedian and writer Eric Barry.
    Full Disclosure: Chicago\'s Sex Positive Podcast - Chicago-based podcast dedicated to sex positive news, interviews, and comedy with comedian and writer Eric Barry. - Backlinks on ParaKOSTer - [fdpod.com]
    Getting Chance To Buy Facebook Likes Cheap
    Hendericks\'s homepage
    here
    here you go
    Holy Porn Poachers - Superman! Axel Braun Shows Sues 098 Superman XXX Thieves - 7
    Home Page
    Home Page Home Page
    home.gif
    Homepage
    Homepage besuchen
    Homepage des Autors besuchen
    How Facebook Likes Get Bought And Sold
    How To Buy Facebook Likes With Cheapest Price
    How To Find Authentic Jobs Classifieds
    http://www.fdpod.com/2013/10/muni-monster-mash-etiquette-video-is-everything-amazing-and-terrible/
    http://www.fdpod.com/podcasts/episod...jennifer-best/
    http://www.fdpod.com/podcasts/episode-66-eric-goes-to-a-hippie-retreat-jennifer-best/
    http://www.fdpod.com/podcasts/episode-68-kendra-lust-sf-batkid/
    성경 Q&A - 대한민국 \"최초\" 프리미엄 릴 ㄱ ㅔ임 ì „ë¬¸ 싸 ã…‡ ㅣ트 릴넷 www.kr8899.net
    Επίσκεψη στην ιστοσελίδα του Συγγραφέα
    한방상식 - 반만년 역사속의 민간요법이 다 과학-ì•„ëª¨ë ˆí¼ì‹œí”½ ê¸°ìˆ ì—°êµ¬ì› 한방과학팀 박준성(36) 연구원
    IL Sexual Predator
    is not accepting his apology
    Jwinpartners\' announces - [Announcement] Jwinpartner\'s 5th Anniversary
    Käy lähettäjän sivustolla
    Lesbo Retro Adult Retrospective Tonight At IXFF Film Fest In SF
    Link Anchor
    listen to the interview
    LiveCamNetwork Nets XBiz Nomination
    Longwell
    Mabel@fdpod.com guy porn
    Miss Delaware Unfairly Outed By GirlsDoPorn aka Bubblegum Casting, A Shady Modeling Agency
    moment - 131125 tvN 制作发表会
    my sex-positive podcast called Full Disclosure
    Näytä web-sivu
    Naar website
    Nano-Photonics, KAIST - Baking 완료. SEM 사용재개
    notice - ★生日献礼★ 李东海29岁生日门板 3P
    انتقل الى صفحة المرسل
    صفحة الوب
    Odwied stron autora
    Odwiedź stronę autora
    ON 독서나눔방 - \'관계의 힘\'을 읽ê³
    Open website
    otevřít
    Página Principal
    Pastor Choi\'s Video Message - 2014.11.23 - 함께 나누며 감사하라(Thank the Lord with sharing)
    Persönliche Website von »NZachary« besuchen
    Persönliche Website von »PTVXR« besuchen
    photo - 140530 B.A.P 2014 L.O.E in Singapore Press Conference
    Podcast for young gay boys
    podcast host
    Pokaż stronę
    Positions Available - Immigration&Recruiting company looking Administrative manager
    Postati ofertele dvs. speciale aici 2009-09-28
    Pretty Emma Watson Pictures And Videos
    Read More
    Rough Sex Videos
    Seitz
    Selma
    sex podcas
    sex podcast
    sex podcast chicago
    Sexual Openness
    Site web Site web
    Strona WWW
    Sunday Sermon - The Naming of 12 Apostles
    Teleteria has been the leader while in the
    The comments are worth reading - members of the leather community, including people who were in attendance, some of whom were working the event and dealt with Mr. Barry personally have much to say.
    Tips To Help You Buy Proper Facebook Likes
    Trumble
    user-pic
    Vaata liikme veebilehte
    Vedi la pagina Web
    Ver Página Web
    Ver Páxina Web
    Video And chatsex Chat ChatSex Shows!
    View Original
    View Web Page
    Visa WEB-sidan
    Visit Podcast Home Page
    Visit posters website
    Visit poster\'s website
    Visit Website
    Visita il mio sito
    Visita sito
    Visitar a homepage do Usuário
    Visitar a página do Utilizador
    Visitar a página na web do utilizador
    Visitar o website do usuário
    Visitar Site
    Visitar Sitio
    Visitar sitio web del autor
    Visiter la Page Web
    Visiter le site
    Visiter le site web de l\'utilisateur
    Visiter le site web du posteur
    Viziteaza site-ul autorului
    Vizitează site-ul autorului
    Vizualizare Pagina Web
    Wannemaker
    Web
    Web Site
    Weboldal megktekintése
    Webseite
    Website
    Website bekijken
    Website dieses Benutzers besuchen
    Website_button
    Webstranu posjetiti
    When Should I Buy Facebook Likes?
    Why DoN\'t You To Use A Free Webhost
    Why Schools Are BuyingXxx Web Addresses
    Why Universities Are BuyingXxx Web Addresses
    Worldwide Adult Legislation Could Boost British Sector (Wired UK)
    Wrench
    www.fdpod.…
    www.fdpod.com
    www.fdpod.com favicons
    www.fdpod.com/
    xxx porn
    young teen sluts
    your company is still a business
    Zobraziť autorové WWW stránky
    Zobraziť autorove WWW stránky
    Zobrazit autorovi WWW stránky
    Zobrazit autorovy WWW stránky

    Clicky Web Analytics