Neo-liberalism draws blood from our veins - Africans

by FUNMI KOMOLAFE

 

Mali, Bamako is regarded as one of the poorest nations in Africa. It was therefore no surprise that it was chosen as the African venue of the World Social Forum; the first to be held in Africa. The Forum was attended by over 20,000 delegates from over 230 countries. They all had a common view to express, “ The Alternative to Neo-Liberal Economic Policies”. Their message was clear and loud, ““ Another World is Possible””. Participants were largely non- governmental organisations, trade unions, youths, women, the aged, and other segments of the civil society. The participation of the Nigerian media and trade unions was facilitated by Friedrich Ebert Stiftung. This report gives an insight into deliberations at the World Forum and the expectations of delegates.

 

THE economy and its effects have  been the central issues in the last one week. In Davos, Switzerland, proponents of capitalism, including the Bretton Wood Institutions — the World Bank, International Monetary Fund, World Trade Organisation - meeting under the umbrella of the World Economic Summit (WES), deliberated on how to further build capital for the good of the people . In Bamako, Mali, another group under the auspices of (World Social Forum, WSF) Africa Group, also met to demand “ Another World”. To the latter group, neo-liberalism has not been of tremendous benefit to the people. They were therefore unanimous in their call for “ Another World” that emphasises  “ justice, fair trade, decent jobs, inclusion of the civil society in governance, etc”.  Incidentally, both groups expressed support for anti-corruption and good governance. The WSF, however, pointed out that some neo-liberal policies indeed encourage corruption and bad governance.

 

New Partnership for Africa’s Development ( NEPAD) has failed us- Africans

 

African delegates including participants from Nigeria at the Bamako parley took a second look at NEPAD and noted that the objectives of NEPAD which was initiated by Nigeria and South Africa include the “ promotion of the private sector as the leading factor in socio-economic development, promotion of free trade by calling for market access to industrialised countries, and integration of continental economies into the global economy” .

 

The WSF noted that previous economic development programmes such as the Lagos Plan of Action and the African Charter for Popular Participation called for the “ integration of African economies, cooperation with other Third World countries and collective self-reliance as the basis on which to approach the world economy”. The African civil society, in pointing out the limitations of neo-liberalism, identified “ consistent decline in profits of the capitalists, closure of plants as attempts are made to limit capacity utilisation, an unusually large number of unemployed workers, an explosive growth in indebtedness on the part of Third World Countries”, as the evidence of the failure of the neo-liberal policies.

 

The views expressed in Bamako are a sharp contract to those of the economic team of President Olusegun Obasanjo that foreign investment would boost jobs and that down-sizing of the Nigerian civil service would make it more efficient. The WSF was  held at a time that finance minister, Dr. Ngozi Okonjo-Iweala, has been commended for her role in Nigeria’s debt cancellation by the Paris Club. But the Altenative to Neo-liberalism in Southern Africa (ANSA)dismissed neo-liberalism on the grounds that the much talked about globalisation is a “myth”. ANSA’s position, supported by Nigerian delegates, was that “ contemporary globalisation is part of the strategy of trans national corporations backed by the military political and institutional including the World Bank, World Trade Organisation, the International Monetary Fund and the G8" all constituting the empire.

 

To us in the African continent, ANSA noted  capital led-globalisation is even at the root of the crisis in Africa. Poverty has not only been entrenched but it has also deepened, and the gap between the rich and the poor has increased”. Rev. Fr. John Patrick of the Justice, Development and Peace Commission in Nigeria described neo-liberalism as a religion with a god called PROFIT.”  In the opinion of his organisation, “ Everything is sacrificed for that god to survive. Those who believe in liberalism put in place policies that would meet the goals of the god called PROFIT. The organisation noted that the Federal Government had continuously left the civil society out of the national budget as a result of which provisions of the budget have always been to the disadvantage of the people. It noted that government would rather involve business men and women under the umbrella of the Organised Private Sector , describing neo- liberalism as ““ a jungle where the fittest survive””.

 

Apparently making reference to policies of the Federal Government such as privatisation of public enterprise, sale of government houses, commercialisation of education, the organisation said what Nigerians, indeed Africans, need is “ a system that guarantees us a right to education, health, etc”. To another official of ANSA, “ IMF has got Africa to reduce tariffs on trade and impossible taxes on the people. The World Bank/ IMF failed to ignore capital flight by multi-nationals”.

 

Economic dependence

 

Professor Yash Tandon, a political economist from Uganda, pointed out the contradiction in the pronouncement of African Heads of State. His words, “ African Heads of State call for liberation but they also call on the IMF for economic dependence. How can that be possible?” Generally, participants expressed concern about measures such as road tax and increase in VAT which the Federal Government plans. In their view, these measures would further impoverish the people.

 

So, who benefits from the neo-liberal policies? Some participants identified South-Africa as the new imperialist in Africa with the trans-national business investment which is usually at a high cost to citizens of the host countries. Corruption and good governance in Nigeria was the focal point at the forum. Participants acknowledged the role of the Economic and Financial Crimes Commission ( EFCC) but they summed Nigeria’s efforts this way: “It goes beyond that”. Tadon identified three types of corruption as, “the use of state power for personal gains, use of financial power to corrupt the state and systemic corruption”.

 

 He said, “In Africa, only the first is often talked about but not necessarily the most dangerous”. Privatisation is described as another form of corruption because “state enterprises are put in the hands of the market to enrich individuals. Market corruption which has become endemic is strongly embedded”. Mrs. Abiola Akiyode-Afolabi, chair of the Nigerian Social Forum, had harsh words for the privatisation programme of the Federal Government. She said, “We discussed how privatisation has taken over the whole of Nigeria and how that has also caused endemic poverty”. Mr. John Christensen, who commended the EFCC chairman for a good job, said for Nigeria to successfully tackle corruption, transparency in the taxation policy of Nigeria is crucial to the anti-corruption drive.

 

For instance, in Nigeria, oil companies have admitted that they cannot disclose the amount paid as taxes because of secrecy on the subject in their contract. He said, ““ We want a move from non-disclosure of tax information included in the contract of oil companies . I suspect that Nigeria loses hundreds of millions every year through tax evasion by oil companies. We want the accounts to be public knowledge in off shore financial transactions”.

 

Christensen went on: “What we want to reveal is that transparency must be complete not partial. Nigeria is losing a good part of its revenue through evasion of tax off-shore. It is the biggest form of corruption. Tax information is most essential”. Ms. Aminata Traore noted that the West is paying lip-service to corruption in Africa. She said to qualify for debt-relief, African countries must demonstrate good governance by embracing democracy and anti-corruption by parading corrupt public officials . She observed that “during election, leaders denounce corruption but once in power, the system continues as long as they comply with the requirements of the World Bank, IMF, Britain, America, the Paris Club, etc. Her words, “The World Bank tends to focus on petit (small) corruption such as a policeman demanding bribes but big time corruption is hardly exposed”.

 

It was however not all about what proponents of neo-liberalism would call “rhetorics of the civil society” as participants at the WSF stated in clear terms the kind of Africa they would like to have in terms of economic development. The Alternative to Neo-Liberalism in Southern Africa ( ANSA) forum articulated strategies for development in Africa having declared that “neo-liberal free market system cannot solve our problems”. As alternatives, it was suggested that African leaders should adopt people-led strategy as opposed to the IMF, World Bank, WTO donor- led and a production system based on domestic demand and human needs. TheTrade Union Working Group on International Economics and Regional Integration in West Africa whose meeting,  facilitated by the Friedrich Ebert Stiftung, focused on economic development in the West African region, suggested physical integration through infrastructural development in the area of energy, transport and communication.

 

They also want West African Heads of State to institute “a common external tariff which permits ECOWAS to better disburse or dispose off/ distribute resources that contribute to the financing of the ECOWAS agricultural policy ““ in order to boost the economy of the continent. Ms. Hauwa Mustapha of the Nigeria Labour Congress, who participated in the meeting, said the group wants West Africans to negotiate as a bloc. Her words: “We see the coming together within the context of the European Union for West African countries as strengthening trade within the region”. She explained that the group came to this conclusion because it has realised that “poverty cuts across all West African countries . Poverty in Nigeria is what we see as poverty in CoteD’Ivoire,  Senegal, etc “.

 

Our Expectations - Organisers, Stakeholders One of the organisers of the WSF, Mr. Dadie Dagnoko, said some parliamentarians attended the forum, saying: “We expect them to influence economic policies in their countries”. To Mrs. Akiyode-Afolabi, ““ The WSF has created a space for people to come together and speak with one voice to say that they are opposed to neo-liberalism. Capitalism has not benefitted the people of the world all over .

 

We need a new world order, a need a world that guarantees peace, a world that can put food on our tables, guarantee longevity. That is the kind of world we want and that can be seen everywhere”. She said the WSF would be represented at WES in Davos. Makona Lekalakala of South Africa said, “I expect the forum to be much more deliberative in terms of strategies . I think this forum is better off than when we had one World Social Forum because it will help us consolidate our strategies. We are here to look at this and the international financial institutions and the role they play because South Africa is not a sub-imperialist country that has been used to implement imperialist policies like the New Partnership for African Development ( NEPAD) which cannot be used to rebuild or reconstruct Africa”.

 

To Anthonio Tiyan of the Ibom Foundation in the Phillipines, ““ the only way by which we can win against globalisation is for farmers all over the world not just in Asia but Africa, Latin America etc to come together to fight globalisation and imperialism”. “ Another World Possible”: This was the message common to all participants at the WSF forum in Bamako. It was also the message in Venezuela in the Americas where the WSF was also held. But, are the leaders listening? The outcome of the World Economic Summit would be an indication of the extent to which leaders have listened to the civil society groups.

 

1/30/06

Vanguard Media


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