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On the Road: Food Sovereignty in Tunisia

Ray Bush reports on an extraordinary tour of Tunisia organised by an innovative and exciting NGO focused on promoting food sovereignty and positive environmental transformation. The ‘food sovereignty days’ involved a journey into the breadth and range of small farmer struggles for autonomy and improved livelihoods throughout the country, focusing on the areas between the capital and the South East. 

By Ray Bush

The Observatoire de la Souveraineté Alimentaire et de l’Environnement (OSAE) is a new innovative and exciting NGO focused on promoting food sovereignty, positive environmental transformation and they do this with ideas and actions of small-scale family farmers.  Based in Tunis, the brainchild of Habib Ayeb, it has a small staff of engaged activists who in September organised food sovereignty days.  This was an amazing journey into the breadth and range of small farmer struggles for autonomy and improved livelihoods throughout Tunisia focusing on the areas between the capital and the South East Oasis town on Gabes and beyond.

The seven principles of food sovereignty are well known, or should be by now.  They are food as a basic human right; agrarian reform; protection of natural resources, reorganisation of food trade, the prioritisation of production for local consumption; the ending of globalised hunger; social peace and democratic control. The principles constitute what some have called an ‘epistemic shift’ from the mainstream preoccupation with chemicalised food production, mainly for export rather than local consumption.

The Journées de la Souveraineté Alimentaire et de l’Environnement, in English ‘food sovereignty days’, began with the important and challenging introduction to the Tunisian National Genetic Bank (BNG).  Participants from across Tunisia, Morocco, Lebanon, Europe and US heard about the significance of ‘heirloom varieties’, why and how they were being protected including a visit to the sub-zero store rooms.  Participants heard from Amine Slim an agronomist researcher at BNG and coordinator of local seeds programme. He discussed the important work that he and his colleagues do visiting farmers to discuss and collect local seed varieties and how access and availability can be secured. The participants were then treated to a showing of Habib Ayeb’s evocative and dynamic film Couscous: Seeds of Dignity.  The film shows the life cycle of wheat production to couscous production, the labour processes involved from the field to the plate, its gendered dimensions and labour involved in harvesting and preparing Tunisia’s national dish and the problems farmers have in fighting off the pollution of hybrid or genetically modified seeds.

                                                                              Inside the Seed Bank

The road trip south then commenced – two coaches stuffed with eager and committed activists wanting to discover more about food sovereignty in general and its particular dynamics in Tunisia.  The road trip provided an opportunity to visit many of the locations and informants that were part of the Ayeb’s film.  This was important.  It enabled participants to interrogate farmers across the range of landholdings both in terms of size and across the ecological regions of Tunisia that have contributed to combined and uneven development. As we made our way to the South east of the country we visited a women’s agricultural development group, at Oued Sbaihya  – Zaghouan Goveronorate – a collective that produces bread, handicrafts and honey. Local variety seed was used for bread making, the women had links with the seed bank and they lamented that they could produce more wheat, and sell more locally produced items if only they had a local market with effective demand.  It became a theme of the week’s conversations with farmers. They could scale up production if they had more land, improved farming infrastructure and local market access, but the market had to also be effective, there had to be local or regional buyers to boost local production.  Currently the women we met noted how they were inhibited from expanding their production and marketing, and therefore also the expansion of their group’s collective interests, because the local market was dominated by more powerful merchants and traders.  How could they scale-up their activities in the context of a subordinate and uneven incorporation into local markets?

                                                                            Products from Gabes Oasis

Gabes was the groups base for four nights.  It provided a regional focus and the comprehensive framework for understanding Tunisia’s contrasting landscape and the country’s agro-ecological contradictions. It also provided a base for travelling much further South exploring new frontier farming and communities made famous by the filming of the original Star War film and where farming was constrained by very low rainfall and poor central resource allocation for, in the case of Toujane, 250 families split between two communities. Yet the 2000-year-old Berber communities in Toujane, past Matmata, have been decimated by outward migration, absence of local water and an extreme climate. Despite these adverse conditions, we found strong community organisations with impressive solidarity, water user associations and a determination to keep their children in schools despite the long distances they have to travel, which means the school-day stretches from 7am to 6pm. The community is trying to attract tourism to sell crafts, carpets and olive oil to sustain a dwindling local population. These initiatives will not necessarily save the communities but they provide a strong message for food sovereignty to embrace communities that seem forgotten as the state ignores the population in Tunisia’s most marginal arid countryside.

The Oasis in Gabes reflects the contradictions and negative dynamics of capitalist development.  These are highlighted in Ayeb’s film Gabes Labes. The Oasis is unique for its proximity to the sea. It is the world’s only coastal oasis and it is the site of a complex ecology.  It ‘grows’ as respondents who farmed there for generations told us. But it has also been dramatically, and negatively transformed in the last 40 years. With a population of about 300,000 it combines production of semolina from the steppe where there is 150-250 mm of rainfall, there is also communal and private access to land and date palms and vegetables nearer the coast. The negative transformation of the oasis is almost entirely due to the location of a phosphate plant on the coast between the sea and the Oasis. Three wells dug for the plant take 50% of the local supply of water. Wells which were of a depth of 50 metres in the 1970s are now at a minimum depth of 150 metres. The mining of water is not only the result of the two phosphate factories but also the result of private investors in the steppe.

According to local fishers the plant has spewed out 6,000 tonnes of toxic waste into the sea following the transformation of raw phosphate mined and then transported from Gasfa, in the west of Tunisia. Pollution has poisoned the sea.  We were told by local fishers and trade unionists of the time when boats would be tethered all along the coast.  Not any more.  Just one month prior to our visit the fishermen described how there had been a dump of ammonia into the sea and the coastal waters were filled with dead fish. The air too sears the throat. After only 15 minutes during our seaside inspection we had each developed sore throats from the plants pungent odour. The local hospital, we were told, is inundated with child and the elderly suffering from respiratory complaints but the authorities, locals believe, are under instruction not to report the complaints as phosphate poisoning.

                                                   Listening to how pollution has destroyed fishing

Gabes was the centre for a vibrant fishing community before the plant and there were clear links and relationships between farmers and fishers and multiple occupational roles that sustained each activity.  Fishing is still an important component of the local political economy but boats are forced to motor much further offshore to find fish stocks and local crews face tough competition from boats from the EU. The need to be at sea for longer, also necessitates larger vessels at extra cost.  As a consequence, fishers inevitably have increased their indebtedness, while many who used to fish are now simply unemployed. The phosphate plant closed for four months after the 2010/2011 uprisings and in that short time the sea returned to its previous azure colour.

Perhaps the most evocative moments of the tour took place with a visit to a local seed collector and preserver of heirloom varieties.  A respondent in the Oasis town of Chenini has collected local variety seeds for decades. He described to me on a former visit, during the making of the film Fellahin (made with Habib Ayeb) how important the Oasis is for the preservation of life. He reinforces his organic relationship with the Oasis by committing his life to ensuring that local seed varieties predominate in the Oasis. He makes his seeds available at local markets where they are popular among local farmers because they are resilient, productive and can be reproduced. This resilience is crucial to a small farmer’s autonomy and family survival. For if the seed that is produced cannot be re-produced, stored and re-planted in the next growing season  rural livelihoods will be increasingly vulnerable. GMO seeds, produced by big parma to expand corporate market share, are not viable for small scale local farmers. In contrast, small and medium farmers all noted how local heirloom variety seeds were more resilient and stable than imported varieties while the crops that the local seed produced tasted better.  Productivity, taste, stability and resilience were words that farmers used repeatedly in engaged conversations over six days. Ensuring a sustainable access to local seeds at a cost that is affordable is clearly a central plank in food sovereignty.

                                                                        Phosphate production at Gabes

The contrast between the Oasis and Tunisia’s new frontier developments is immense.  The contrast is one of scale, market power and wealth. It reflects a contrast between food security and food sovereignty.  New investors in the frontier lands of Limaoua near Gabes in the steppe reminded us of the need for patience and a large wallet. Buying new land in the steppe, funding over 150 meters deep well digging and maintenance and accessing equipment is extremely expensive.  Costs could be shared if there were more than one farming family.  The investor we spoke to shared land with three brothers and he estimated the set-up costs for his farm of peppers, melons and citrus cost him €60,000. Well digging now exceeded 160 metres with immense cost to non-reusable aquifers. We imagined how a dozen families could work the land these three brothers farmed and how that could be possible with appropriate state support and reformed local markets.

These were captivating days, framed by the showing in Gabes of Soraya el Kahiaoui’s moving film Landless Morrocans. A horror story of the dispossession of the collective lands of Guich Loudaya (Rabat). The dispossession of 400 hectares by the Moroccan state and the dramatic transformation of a communities’ life and livelihoods. The film stunned and shocked.

On the last day we went further South, and well off the main roads to the village of Demmer.  It is where Habib Ayeb has his family ancestral home, here we ate lamb cooked traditionally in underground ovens, with bread and vegetables: food sovereignty at its very best.  While seemingly off the beaten track, certainly on the ‘roads’ that we navigated, Demmer offers another dimension to understanding food sovereignty. The traditional undergound house, now renovated, illustrates how livelihoods historically worked directly alongside and as part of the rhythms of the agricultural calendar and the relationship between farmers, livestock and arable farming.  Demmer also shows the promise of a possible sustainable food sovereignty map where agricultural initiatives, struggle to keep land in the hands of local families rather than absentee landlords, can put a break on the destructive aspects of modernity.

We were promised that these days will be repeated next year.  The schedule will vary but the issues will remain, but we hope the range of contacts will enlarge as the messages regarding the benefits of food sovereignty are heard.  Food sovereignty is the agenda for change in the contemporary moment of capitalist crisis.  We know that without its embrace, and the rural transformations and necessary urban adjustments needed to deliver it, hunger will continue, and the planet’s survival jeopardised.  OSAE is helping set an agenda for change.

Ray Bush is Professor of African Studies at the School of Politics and International Studies (POLIS) at the University of Leeds. He is also a member of the Leeds University Centre for African Studies (LUCAS) advisory board and member of the Review of African Political Economy’s Editorial Working Group.

All photographs were taken by Ray Bush.

Did the Russian Revolution Matter for Africa? (Part II)

In the second part of Matt Swagler’s blogpost on the Russian Revolution, he focuses on how Marxist ideas became central to African political organizing from the late 1940s through the 1970s—a development which took place at the same time that the Soviet Union emerged as a new global superpower. In the first part of Swagler’s article posted on roape.net last year he argued that the 1917 Russian Revolution had important repercussions in Africa, notably in the new connections formed between Black Marxists from the Americas and trade unionists and anti-colonial figures on the African continent. In the second part of the post he looks at how the USSR (and Soviet doctrines of Communism) began to exert the most profound influence in Africa precisely at the time when the incredible emancipatory potential of the 1917 Russian Revolution had been obliterated by Joseph Stalin’s campaigns of mass state violence. What was left—the Soviet model of coercive, state-led economic development—was nevertheless appealing to many emerging African leaders who organized newly independent states.

Did the Russian Revolution Matter for Africa? (Part II)

By Matt Swagler

The first part of this article argued that the 1917 Russian Revolution had important repercussions in Africa, notably in the new connections formed between Black Marxists from the Americas and trade unionists and anti-colonial figures on the African continent. These links were primarily forged through the Comintern, the international body created in 1919 to coordinate the activity of revolutionary Marxists from across the globe. In the early years of the Comintern, representatives emphasized that the defeat of capitalism was impossible without a simultaneous struggle against both imperialism and racism on a global scale. As outlined in Part I, the Comintern backed multiple Pan-African initiatives that aimed to undermine European colonialism in Africa—and also challenged many white Communists in Europe who were reluctant to organize campaigns against racism and imperialism.

However, outside of South Africa and Egypt, the influence of the Communist movement in Africa before World War II remained extremely limited. Although the Comintern became an important resource for influential African intellectuals and trade unionists like Lamine Senghor and I.T.A. Wallace-Johnson, their organizational initiatives were often short-lived due to colonial repression.

The Second World War created a dramatically new context, where anti-colonial movements burst through bounds of colonial illegality. This part of the article focuses on how Marxist ideas became central to African political organizing from the late 1940s through the 1970s—a development which took place at the same time that the Soviet Union emerged as a new global superpower.

I argue that the USSR (and Soviet doctrines of Communism) began to exert the most profound influence in Africa precisely at the time when the incredible emancipatory potential of the 1917 Russian Revolution had been obliterated by Joseph Stalin’s campaigns of mass state violence. What was left—the Soviet model of coercive, state-led economic development—was nevertheless appealing to many emerging African leaders who organized newly independent states under the banner of African Socialism in the 1960s.

As I show below, African Marxists, workers, and students often rejected the limits of African Socialism, and led repeated mass uprisings and strike waves in the 1960s and 1970s. Nevertheless, this oppositional left usually failed to gain a substantial and sustained audience—both because of state repression and because they too struggled to break from the top-down models of ‘really existing socialism.’

The collapse of the Soviet Union in 1989 greatly debilitated African Marxist organizations at a time when the imposition of neoliberalism by Western powers was ravaging African lives. But the past decade’s explosive wave of popular struggles has created the space for a return of Marxist organizations unfettered by the same Cold War frameworks.

Weakened Empires, Emboldened Anti-Colonialists, and a Revived Communist Movement

World War II created an opening for new waves of anti-colonial agitation around the world.  Although most of the major imperial powers in Africa emerged victorious from the war (France, Britain, and Belgium), they nevertheless came out militarily and economically weakened. Moreover, the legitimacy of foreign occupation and systematic racism was being questioned on an international scale after the German conquest of Europe and the horrors of the Nazi-orchestrated genocide. The Allied powers now had to justify why their pledges to eradicate such injustice in Europe did not apply to their colonies—where forced labor, the absence of legal rights, and racial discrimination remained codified.

Having suffered exactions at home during the war and brutality on Europe’s battlefields in the name of defeating tyranny, many Africans believed that their sacrifices should be recognized with greater rights. (More than a million African troops joined or were forcibly conscripted into the French, British, and Belgian militaries.) During and immediately after the war, the continent was rocked by militant general strikes, boycotts of European stores, protests led by African war veterans, farmers withholding cash crops, campaigns demanding access to schools, and armed responses to settler colonialism—most notably the Mau Mau rebellion in Kenya.

As space for political mobilization was pried open by these actions, many African activists turned to Marxist critiques of capitalism and imperialism. In part, this was due to the unique position held by the Soviet Union at the end of the war: it had been a part the Allied mobilization against the fascist powers, but at the same time claimed to represent an alternative to the exploitative practices of Western European colonial powers. Moreover, Communist Parties had played a major role in the resistance to fascism in Europe, most concretely in France, Italy, and Belgium—and in these places became mass political parties in the aftermath of the war. Their newfound popularity in Europe was also key to their appeal for African activists, who sought a viable alternative to the metropolitan parties who had overseen the colonial project up to that point, including Social Democratic parties. Thus, the Soviet Union and associated Communist organizations in Europe were the dominant representatives of ‘Marxism’ that most new African activists engaged with.

With the Comintern disbanded by Stalin in 1943 to ease Soviet relations with the West, concrete connections between African activists and Communist organizations largely took place through colonial metropoles. The tiny fraction of African students who were permitted to study at universities in Europe often engaged with the local left and read Marxist literature unavailable to them in Africa because of colonial censorship. African students abroad formed their own organizations, most notably the West African Students Association (WASU) in Britain and the Federation of the Black African Students in France (FEANF), which became venues for political debate and anti-colonial organizing in the 1950s.

As these groups established connections to Communist organizations, students gained scholarships to study in the Eastern Bloc, the Soviet Union, and China. It was through these links, for example, that a young Senegalese student, Majhemout Diop, spent three years in Romania in the mid-1950s where he began reading Marxist and Soviet writers in study groups. Upon returning to Senegal, Diop led the nascent Parti africain de l’indépendance (PAI), the country’s first revolutionary Marxist political party, and the first to call for complete independence from France. As I note below, the PAI and its youth section played a key role in the decade that followed, training a core of new activists, even in the face of great repression, first from colonial authorities and then the Senegalese state.

Similarly, the Portuguese Communist Party played a major role in training the future leaders of anti-colonial movements in Cape Verde/Guinea-Bissau (Amilcar Cabral) and Angola (Agostinho Neto). At the same time, the growing ranks of African trade union militants attended trainings and conferences alongside European Communists. In the French colonies, Communist functionaries and trade unionists stationed in Africa were able to briefly organize openly after the war and created Communist Study Groups (GECs) across France’s African empire. In these multi-racial groups, future African leaders like Modibo Keita, Madeira Keita, Sékou Touré, Gabrielle Lisette, and Ouezzin Coulibaly studied politics and theory with Communist activists from France. Moreover, as the French bowed to activist pressure and allowed a limited African electorate to choose representatives for the French National Assembly, the first pan-territorial party, the Rassemblement Démocratique Africaine (RDA) entered into a parliamentary alliance with the French Communist Party.

Emerging African political leaders and intellectuals had diverse reasons for allying with the Communists movement. The Soviet Union, with its anti-colonial and egalitarian roots in the Russian Revolution, seemed to offer a different model from Western European capitalism, which had produced little more than colonial pillage in Africa. Marxist analyses, particularly Lenin’s Imperialism: The Highest Stage of Capitalism (1917), which describes imperialism as the automatic outgrowth of the economic competition between capitalist states, resonated with many young African intellectuals and activists who passed around mimeographed copies.

Moreover, Communist prestige was enhanced by the Chinese Revolution of 1949, the Cuban revolution of 1960, and the armed struggle for Vietnamese independence led by Ho Chi Minh—a Communist who had worked alongside African Marxists like Lamine Senghor in the 1920s in Paris. These examples provided new evidence of Communist relevance for the colonized world just as most of Africa’s colonies became formally independent countries in the late 1950s and early 1960s.

However, the relationship between African leaders and Communist organizations was quickly strained by the onset of the Cold War and the expulsion of Communists from Western European governments in the late 1940s. Some Africa anti-colonial leaders, like the leadership of the RDA, responded by dropping their alliance with European Communists, in exchange for mitigating state repression against their local trade unions and parties. But for a vocal minority, increased animosity toward Communists and the Soviet Union from the same governments that oversaw empires in Africa was interpreted as a reason to move closer to the Communist movement.

Exporting the Soviet Model

Even for new African political leaders who distanced themselves from Communist networks, the USSR still appealed as a model because it had cast aside its quasi-feudal inheritance to become an industrial and military superpower in just a few decades. The Soviet Union seemingly showed a way for colonized parts of the globe to rapidly overcome their impoverished and subordinate position in the global system.

The meteoric rise of the Soviet Union (and later China), however, had come about precisely through the abandonment of the principles of the 1917 Russian Revolution.

The Russian Revolution—as an emancipatory, democratic, mass revolution—lasted only a few years. Its collapse was rooted in two main factors: First, the civil war that was necessarily fought to defend the revolution devastated the Russian industrial economy and the working class—the social base that had led the Revolution. Second, the defeat of socialist revolutions outside of Russia in the decade that followed left the new state economically and militarily isolated. In the turmoil, Bolshevik leaders took a greater hand in state decision making, hoping in time to rebuild the democratic base of the Revolution.

But without functioning soviets (worker’s councils), state bureaucrats held increased influence over the economy by 1923. At the close of the decade, a section of the bureaucracy led by Stalin had vanquished their opponents, often by violence, and silenced open debate within the ruling party.

In 1924, Stalin and his erstwhile ally Bukharin, had proclaimed the Soviet vision as ‘socialism in one country’—a direct repudiation Lenin and Trotsky’s insistence that Russia’s socialist revolution was doomed if it could not spread to other countries. Instead, Lenin’s ideas were posthumously distorted into Stalin’s ‘Marxism-Leninisn,’ which claimed that the resources of a single nation were enough to create a full-fledged socialist society, even when those resources were highly underdeveloped, as in Russia. By the end of the 1930s, ‘socialism in one country’ in the USSR amounted to state-led economic growth through many of the same brutal means as capitalism: the forcible expropriation of peasants from their land, the creation of a brutalized and exploited working class, and the use of massive prison labor systems.

Youth contingent marching in Brazzaville, Congo, circa 1966, with placards featuring Mao Zedong, Ho Chi Minh, Che Guevara and other Third World leaders

Stalin justified these violent acts in a 1931 speech to industrial managers by concluding: ‘We are fifty or a hundred years behind the advanced countries. We must make good this lag in ten years. Either we do it, or they crush us.’

Stalin’s urgency was a response to trying to squeeze ‘socialism in one country’ into a system of global capitalism. The Soviet Union competed internationally with foes that were much more powerful in terms of both military and economic strength, and this forced the regime to generate its own accelerated processes of mass dispossession and exploitation in order to successfully compete.

To export ‘socialism in one country’ to the colonized world, Stalin began promoting two linked concepts in 1926: revolution by ‘stages’ and the ‘bloc of four classes’ (the latter popularized by Mao Zedong). These theories argued that since the creation of an indigenous bourgeoisie had been stifled by colonial rule, nations coming out of colonialism first needed to pass through a ‘bourgeois-democratic’ (or ‘national democratic’) stage of development. This required Communists to forge a strategic bloc that brought together intellectuals, peasants, workers, and the emerging ‘nationalist bourgeoisie.’ In this framework, class differences in the colonized world were secondary to cross-class alliances against imperialism.[1]

After Stalin’s death, his theory was replaced with the concept of the ‘non-capitalist path to development,’ which like Mao’s theory of ‘New Democracy’ sought to soften the distinctions between the ‘national democratic’ stage and the implementation of socialism. However, the concept of ‘stages’ of development and the necessity of an alliance with the ‘nationalist bourgeoisie’ remained strongly embedded ideas among most African Marxists.

The impact of Stalin and Mao’s frameworks was twofold. First, Communist organizations in Africa (most importantly, in South Africa) tended to back the limited goals of the ‘nationalist bourgeoisie,’ while subsuming socialist demands that would have challenged them. Second, African Marxists often equated socialism with coercive state intervention aimed at rapidly increasing national revenue. As the following sections show, this core belief was shared both by post-colonial state leaders committed to ‘African Socialism’ and their ‘Marxist-Leninist’ critics, often reducing the struggle to a battle over who would control key positions within the state.

African Socialism(s)

Despite the appeal of the Soviet Union as a model for rapid national development and an alternative to Western hegemony, none of the incoming heads-of-state in sub-Saharan African countries identified themselves as Communists. This was no accident. Where possible, colonial powers attempted to facilitate a transfer of power to African leaders in the 1960s who were willing to safeguard the economic and diplomatic interests of the former metropole.

But even new state leaders who had held close connections to Communist networks in the 1940s and 1950s had reasons to be wary of the Soviet Union. The weakening of Western European empires had allowed Stalin to show his true colors as he expanded his empire by setting up subservient regimes across Eastern Europe after the war. In Africa, Stalin had even attempted to claim a Soviet mandate over Libya after the defeat of Italy. Perhaps more importantly, Stalin’s attempts, since the late 1930s, to create an alliance with Britain and France in the face of a German threat had produced a strategy of downplaying former Comintern critiques of British and French imperialism. As a result, after World War II, European Communist parties were often important allies for African campaigns against certain brutal colonial practices—but ultimately defended ‘their’ empires in Africa. Moreover, the Soviet Union played little direct role in supporting anti-colonial movements in Africa until after Stalin’s death in 1953.

Thus, wary of being forced to accept the tutelage of either of the major Cold War superpowers, African leaders like Gamel Abdel Nasser (Egypt), Kwame Nkrumah (Ghana), and Kenneth Kaunda (Zambia), played important roles in the formation of an alternative: the Third World movement.

The Third World project brought together new heads of state from across the former colonized world in the late 1950s and early 1960s, with the aim of creating a bloc of newly-independent governments that could withstand the pressures of being dragged into either the United States’ or the Soviet Union’s Cold War spheres. The project sought to foster economic collaboration between member countries, spread decolonization, and offset the growing threat of nuclear annihilation.[2]

Across Africa, the Third World movement’s commitment to Cold War non-alignment was translated into parallel domestic ideologies—usually under the umbrella term ‘African Socialism’—that were adopted by more than two dozen African states in the early 1960s. In most cases, state leaders defined their vision as an amalgam of ‘traditional’ communal African social relations, Marxism, and Christian or Islamic values. African socialisms sought to propose a distinctly African response to the challenges of decolonization, one that did not fit into the ideologies of either West or East.

Nevertheless, African Socialisms were a response to the exploitative nature of colonial capitalism and reflected an openness to the anti-capitalist ideas of Marxism. Equally significant, by framing African Socialism as a revival of past egalitarian social structures and invoking shared religious values, state leaders used it to make calls for national (or even continental) unity as they took the helm of former colonies whose borders had been carved out by European powers with little regard for the boundaries of pre-colonial societies.

Fundamental to these visions of African Socialism were two common tenets: a) pre-colonial African societies had been essentially communal and undivided by social class and b) colonial capitalism had not fundamentally changed this dynamic, having purposely refused to allow for the creation of an African bourgeoisie, and having created a relatively small industrial working class.

Crucially, this entailed a rejection of the notion that class struggle was a necessary component of establishing socialism in Africa. The state could thus bring socialism because it transcended class. The only ‘class’ struggle was instead between rich and poor countries.

African Socialisms thus embodied both the desire to withstand being pulled into a Communist Cold War sphere and the allure of the Soviet and Chinese models, which seemed to hold the key lessons for how to drive rapid economic development without a reliance on Western capital. The experience of two of the boldest advocates of African socialism—Nkrumah in Ghana and Julius Nyerere in Tanzania—illustrate the limits of this framework.

Nkrumah’s Revolution

In 1951, Nkrumah and his Convention People’s Party (CPP) rode a wave of popular protest to secure limited self-government in the British colony of the Gold Coast. Six years later, the colony became the first to become a new sovereign nation in sub-Saharan Africa, which Nkrumah, as head of state, renamed Ghana.

For the first decade of Nkrumah and the CPP’s dominance in Ghanaian politics (1951-1961), the party sought to maintain enough pressure on colonial authorities to assure an eventual transfer of political power, while simultaneously assuring both colonial authorities and foreign businesses that they would be ‘responsible’ successors. This entailed two important actions: First, non-interference in the economy controlled by foreign businesses and cocoa trading companies; and second, the elimination of Communists and other radicals from the ranks of the party and their suppression in the trade unions.[3]

Despite Nkrumah’s call for industrialization, the modernization of agriculture, and the diversification of the economy, the CPP left these tasks to private investors. The cocoa boom of the 1950s brought in huge amounts of revenue for the new administration, which, like the previous colonial marketing board, set the price paid to farmers at less than the price of cocoa on the international market. Some of this income was used to build up public services in the cities and towns (where the CPP was strongest) and buy the allegiance of small farmers for the CPP, but the administration decided to keep most of the revenue as reserves in British banks to appease British authorities. Paradoxically, while this national income was sequestered abroad, Nkrumah struggled to attract foreign investors.

Nevertheless, by 1960, CPP leaders had parlayed their increasing political power into economic gain. Even if the Ghanaian economy’s wealth lay primarily in the hands of foreign businesses and traders, its activity was still managed by the state through customs, tariffs, taxes and the awarding of contracts. As CPP leaders increasingly took over these ‘gatekeeping’ functions of the colonial state, the party became the vehicle for creating a new African ruling class in Ghana.

In 1960-61, Nkrumah pronounced the need for a ‘second revolution,’ heavy in Marxist-Leninist rhetoric, which was to consist of a push toward rapid industrialization, increased collaboration with the Communist world, and greater participation of the masses in national politics.  The ‘second revolution’ was partially intended to challenge the sclerosis of the CPP old guard, who had found great profit in their positions as state managers.

Nkrumah’s new push was troubled from the start. First, with international cocoa prices falling by the late 1950s, Nkrumah’s efforts to industrialize exposed the extent to which new African nations were still subject to the whims of private Western capital. In speeches during this time, he argued that if the country did not industrialize quickly, it would be strangled by neocolonialism.

Since the early 1950s, the cornerstone of Nkrumah’s vision had been a major dam project on the Volta River that would provide electricity for an integrated aluminum processing industry based on locally-mined bauxite. After partnerships with Canadian and British mining companies fell through, the Kennedy administration eventually backed a US investment in the dam that required Nkrumah to make a series of concessions to benefit US aluminum firms, thereby eviscerating Ghanaian goals for the project.[4]

Nkrumah had secured funding for the dam from the US by playing the Cold War superpowers off one another, but this strategy, more often than not, made potential funders on both sides more wary to commit. Although the Soviets were outspoken in their support for African independence and economic solidarity, in practice, they could not—or chose not to—compete with Western capital in Africa in the 1960s.

Nkrumah’s tenure as head of state was ultimately crippled not only by the fickleness of foreign investors, but by his personalization of power and elimination of democracy. Despite Nkrumah’s regular exhortation of the need to implement ‘Leninist’ party-building principles, his vision of ‘Leninism’ was not that of Lenin, but of Stalin’s rigidly authoritarian distortion. Thus, Nkrumah’s call in the 1960s for the increased participation of the masses entailed integrating mass organizations, notably the trade unions, into the CPP machinery. Far from giving the rank-and-file more say in government decisions, this move served to bring them increasingly under the weight of the CPP bureaucracy and eliminate their autonomy.

Simultaneously, Nkrumah’s means of challenging the entrenchment of the party’s ‘old guard’ was to elevate himself further above the bureaucrats. Dissenters of all political orientations—including leaders of the 1961 strike of rail and port workers—were repressed and/or co-opted into Nkrumah’s regime. In the early 1960s, Nkrumah clung to the belief that the CPP was the vehicle through which socialism could be brought to Ghana, but there was a crucial contradiction in his vision: The party had been created not as a party of social revolution, but of the Africanization of existing colonial institutions. Party leaders (Nkrumah included) had previously acted to silence those who had called for revolutionary change and the party was now home to most of the members of the new Ghanaian ruling class, who were happy to profit while Nkrumah called the shots.

In 1966, Nkrumah was overthrown in a military coup—with the connivance of CIA officials. But despite his immense consolidation of authority, there was little pushback against the coup. The trade unions and other mass organizations that could have defended Nkrumah had been demobilized and demoralized through their forced integration into the CPP and their exclusion from genuine political and economic decision making.

Nyerere’s Ujamaa

Nearly all of the newly independent African states faced Nkrumah’s dilemma: a desire to implement a national development plan, but a continued reliance on foreign investment. Julius Nyerere, the first Prime Minister, and then President, of Tanzania echoed many of Nkrumah’s ideas about the need for African unity to combat imperialism and neo-colonialism in Africa. Like Nkrumah, Nyerere critiqued the capitalist changes brought about by colonial rule and instead argued that ‘traditional African society’ provided a natural model for modern socialism. Thus, for Nyerere, socialism in post-colonial Africa would not be based on class struggle. Rather ‘true socialism [was] an attitude of mind’—borne of a personal commitment to unity, hard work, and the selflessness that he believed animated life before colonialism.

However, only with the Arusha Declaration in 1967 did Nyerere’s theory (Ujamaa, meaning ‘familyhood’ in Kiswahili) become more clearly bound to an economic program. Tanzania’s own frustrating dependence on foreign investors drove Nyerere to turn to the rural population as the driver of capital accumulation, in what he called a policy of ‘self-reliance.’ Like Nkrumah, he disparaged trade unionists whose incomes exceeded the national average, as well as urban ‘idlers,’ whom Nyerere argued had not existed in ‘traditional’ Africa. His attempt to reorganize the dispersed rural population into collective agricultural schemes (Ujamaa villages) began in 1968, rooted in Nyerere’s vision of creating voluntary, democratic villages as a means of improving production and distribution—with limited financial investment from the state.

For Nyerere, the Ujamaa village system was the way out of national poverty, and the need to implement it quickly was not up for debate. But most of rural population was not persuaded by the regime’s developmental paternalism, so between 1973 and 1975, millions were relocated by force. The turn to coercion—often directly under the president’s command—undermined any chance for the local empowerment that Nyerere had emphasized. Tanzania’s collectivization of agriculture failed to bring in the revenue that was needed to drive other development plans and the program soon collapsed. In less than a decade, the country had become more, not less, dependent on imported food and food aid; and by the 1980s, the country was mired in massive debt.[5]

                   Youth organizations rally following the revolution in Brazzaville, Congo (1965)

Nkrumah and Nyerere’s visions of socialism shared many key components: a belief that socialism was inherent to African societies; that capitalism and class society had been introduced to Africa by European colonialism; and that therefore nationalism and socialism could be merged into a single project.

In practice, the policies of African Socialism in Ghana and Tanzania mirrored much of the thinking behind ‘socialism in one country’—that a single-party state could forcibly implement development programs that would allow Africa to ‘catch up’ with the West.  While Nyerere was deeply hostile to the Soviet Union, his policies drew directly from a similar model of rural sacrifice—that of China’s ultimately disastrous Great Leap Forward (1958-60). In the final instance, due to the fickle nature of foreign investment, he believed that the state’s capital accumulation needed to be achieved through the ‘sacrifices’ of workers and farmers.

These policies required the suppression of any political or economic forces that might disrupt this accumulation—independent trade unions, uncooperative farmers, student associations, rival political parties, and ethnic nationalists. Thus, proponents of African Socialism sought to use their newfound authority and economic clout to remake colonies into more equitable and prosperous independent nations, but they did so with the belief that only unquestioning allegiance to their vision would make this possible.

Avowedly socialist regimes like Nkrumah’s and Nyerere’s spent a substantial amount of state revenue on social services, the expansion of education, and medical care. But such spending, as crucial as it was, could hardly make up for decades of colonial neglect and an ever-growing demand. They also attempted to develop state-run industries, but most collapsed by the end of the 1970s as they were unable to compete with inexpensive foreign imports. To make matters worse, the value of most African exports (agricultural and mineral) dropped on the international market during the crises of that decade, which further undermined national budgets.[6]

Despite the limitations of their domestic policies, the value of Nkrumah’s and Nyerere’s commitment to supporting other anti-colonial struggles in Africa was incalculable—as was their role in popularizing ideas of socialism in Africa. Moreover, because of their efforts, Pan-Africanism and Socialism became deeply intertwined on a global scale for the first time since the 1920s and 1930s, as struggles for Black liberation in Africa nourished struggles in the diaspora and vice-versa.[7]

Marxist Critiques of African Socialism

By the late 1960s, theories of African Socialism had come under increasing criticism from African Marxists—particularly those in student organizations and trade unions. Many had questioned the precepts of African Socialism even before independence and by the middle of the decade these small groups of radicals across the continent generally organized around two common grievances. First, they argued that the leaders of single-party regimes in Africa had used control of the state to accumulate wealth, thereby becoming a new African ruling class—often decried as a ‘bureaucratic bourgeoisie.’ For these critics, growing inequality in post-colonial societies gave the lie to the claim made by leaders like Nyerere that class differences within new African states were inconsequential.  Second, Marxists and other radicals were often the most vocal opponents of the suppression of democratic rights under ‘socialist’ governments (including fighting for the right to organize outside of the single-party apparatus).

Although these oppositional currents had existed even before formal independence, radicals found new audiences after independence, particularly among the growing populations of urban students, school-leavers and unemployed young men who were dissatisfied with the failure of African Socialism to substantially raise living standards.

Revolutionary Marxists were often able to have a significant impact on the direction of national and regional politics in the 1960s and 1970s disproportionate to their small numbers. This stemmed in part from their influence among the ranks of university students, civil servants, teachers, industrial and financial workers, all of whom were necessary components in state plans for advancing ‘national development.’ A serious strike in any of these sectors—even at universities—was nothing short of a direct attack on the government. Moreover, because formal political opposition parties in most post-colonial Africa states were outlawed, protests led by student and trade union organizations (where Marxists were often the most rooted) generally became the vehicle for popular grievances that found no place for expression in single-party apparatuses.

Cairo University students crossing the Qasr El-Aini Bridge on their way to Parliament on 24 February 1968

The first remarkable example took place in Congo-Brazzaville. In 1963, trade unions called mass demonstrations to prevent the formation of a single-party state that within days had forced the resignation of the entire government under President Fulbert Youlou. In the political vacuum that was created, a small group of students, recent graduates, and young civil servants in their twenties began to position themselves as the intellectual leaders of Congo’s revolution. Through their newspaper, Dipanda, and the organization of mass independent youth organizations, they promoted a Marxist transformation in Congo that was in tension with the new president’s version of African Socialism. In just a few years, they had recruited thousands of youth activists some who were elevated into positions within the government, and pushed through a number of changes: the expulsion of French troops based in Congo; the nationalization of the education system (previously under the control of foreign administrators and missionaries); and the nationalization of the French companies that had held a monopoly over the provision of water and electricity.[8]

After 1968, a quasi-military coup resulted in the suppression of Congo’s autonomous Marxist youth organizations. But that same year mass uprisings swept the globe—including in Africa. In May 1968, university students in Senegal called a general strike in response to government proposals to cut their scholarships. It was not the first time students had openly challenged the regime of Léopold Senghor, who claimed to adhere to a version of African Socialism. But this time, the brutal response of the police triggered a nationwide strike of secondary students, a general strike of workers in the capital of Dakar and an explosion of street battles with police in Dakar’s African neighborhoods. Although Senghor eventually regained control of the situation, (in part due to the intervention of the French military), he was forced to grant a number of concessions to both the students and trade unions in the years that followed. Central to the student and trade union actions were activists who were associated with (or had been trained by) the Parti Africaine de l’independence (PAI) or its youth wing—the outlawed ‘Marxist-Leninist’ party that had been formed by Majhemout Diop in the late 1950s, noted above.[9]

That same year, in Egypt multiple upheavals led by industrial workers and students offered the first real popular challenge to the regime of Gamal Adbel Nasser. Nasser controlled a single-party state operating under the banner of Arab Socialism—a formulation with similarities to African Socialism. Nasser combined highly authoritarian rule with policies that greatly expanded educational opportunities and social services, nationalized and expanded industry and sought to make Egypt a beacon of Third World solidarity. But these gains from above could not prevent frustrations from boiling over: Egypt’s military defeat to Israel in 1967 and government proposals to limit the number of students who could advance to the country’s universities triggered two waves of strikes and demonstrations that quickly turned into movements for greater political freedom, with small groups of Marxist critics of Nasser playing a significant role.

In Nyerere’s Tanzania, a circle of leftist students from across Africa formed the University Students African Revolutionary Front (USARF) at the University of Dar es Salaam in 1967. The USARF was inspired in part by the presence of Marxist faculty like Walter Rodney and visiting speakers including Samir Amin, Angela Davis and the C.L.R. James. The USARF’s publication, Cheche, meant ‘spark’ in Kiswahili—a reference to the revolutionary newspaper of the same name originally managed by Vladimir Lenin.[10] The paper attempted to popularize the ideas of Fanon, Lenin, Mao, and the Marxist anti-colonial leader of Guinea-Bissau, Amilcar Cabral. Moreover, it took direct aim at ‘the so-called ‘African Socialism[s]’ that have sprouted up everywhere in Africa,’ including publishing Issa Shivji’s trenchant critique of the Arusha Declaration.

The government responded by banning the magazine and the USARF. An article in the state newspaper on the banning was particularly revealing: ‘The youth of Tanzania can be as radical and as revolutionary as they wish, provided they do this through the institutionalized organs of the people’; i.e. through the official organs of the party-state.[11] Yet, struggles continued to shake Nyerere’s regime. In response to a new set of party guidelines in 1971, workers in state-owned as well as private industries launched a two-year wave of strikes (illegal at the time), expelled managers, and occupied factories—until Nyerere unequivocally condemned the workers and evicted them by force.

The history of these and similar struggles in the 1960s and 1970s reveal three recurring themes. First, there was a marked shift among many young activists away from ideas of African Socialism and toward what they often termed Marxism-Leninism (the term carried a slightly different connotation than Stalin’s original formulation). In the thinking of many young African radicals at the time, their Marxism-Leninism was based on the idea that class struggle was necessary both to challenge neo-colonial powers and new African ruling classes. Moreover, it was a rejection of the supposedly cultural roots of ‘African Socialism’ in favor of a more universal path toward socialism that derived from the examples of the Soviet Union, China, and Cuba.

This turn was partially a response to the failures of African Socialist governments to deliver equality and rising living standards—leading many young people to find new inspiration in the China’s ‘Cultural Revolution’ and the Cuban Revolution. But also the increasingly polarizing impact of Cold War interventions in Africa made any attempt to remain on a ‘third’ path increasingly difficult. The threat of outside intervention, particularly from the West, pushed many Marxists into one or another Communist camp.

As many radicals argued that there were class differences and a class struggle to be waged within African countries, they also argued that the model of a single ‘mass’ party, open to all, was counterproductive. Instead, many promoted a model whereby smaller parties of ‘genuine’ revolutionaries needed to gain control of the state to set it on a truly Marxist orientation. However, critics of African Socialism generally shared a key belief with those they opposed: that socialism was a top-down, state-centered project—not one truly based on mass democracy in the sense that Marx (and Lenin) had argued. Consequently, they generally hoped to sweep into positions of authority on the back of mass uprisings or through military actions.

The notion that socialism could be orchestrated by small minority ‘on behalf’ of people was perhaps the cruelest legacy of the collapse of the Russian Revolution of 1917 and the rise of the bureaucracy around Stalin. To be clear, by the 1960s, the Soviet Union no longer monopolized concepts of Marxism: China, Cuba, Trotskyism, and hybrid interpretations of Marxism that blended aspects of these and an internationalist Black Power framework all claimed to be following in the footsteps of Lenin and the Bolsheviks of 1917. Thus, the ranks of independent Marxists also expanded sharply in the 1960s—with Issa Shivji in Tanzania, Amady Aly Dieng in Senegal, Ange Diawara in Congo, and the Trotskyist Edwin Madunagu in Nigeria being only a few of the many who became well known during this period through their writings and organizing.

By the early 1970s, Marxist opposition currents had become strong enough to force African governments to not only attempt to co-opt individuals (which became common practice in Nigeria) but also entire revolutionary movements. Such was the case in Congo-Brazzaville when a group of young military officers took control of the Congolese revolution and suppressed the independent organizing of students and workers in the name of creating a ‘Marxist-Leninist’ government. Even more devastating was the loss of the 1974 popular revolution in Ethiopia, as power fell to a military junta, the Derg, that coopted the radicalism of the workers strikes and student protests to create a new authoritarian state that also claimed to represent Marxism-Leninism.[12]

Armed Struggles and the Role of the Communist World

The development of oppositional Marxist currents in independent African countries in the 1960s both inspired and were inspired by armed struggles led by avowed Marxists in places still under colonial rule. By the middle of the decade, anti-colonial agitation had shaken off French, Belgian and British rule in most of Africa; but in some parts of the continent, colonial and white-minority regimes remained unwilling to concede anything more than symbolic reforms. This was notably true in the Portuguese colonies of Angola, Mozambique, and Guinea-Bissau, the settler states of Southern Rhodesia (Zimbabwe) and South Africa—and South Africa’s own colony, Southwest Africa (Namibia).

Given the weakness of the domestic Portuguese economy, the rigid, fascist Portuguese dictatorship refused to envision a future without its African colonies—particularly resource-rich Angola. Similarly, the white-minority regimes in Southern Africa were determined to maintain their authority after witnessing the defeat of white settler communities in Kenya and Algeria at the hands of guerrilla movements.

Thus, while formal colonial rule in most of Africa was coming to an end by the late 1950s, African agitation through petitions, strikes, and peaceful protest in the Portuguese and settler colonies was still met with bloody repression—infamously demonstrated by the massacre of students in Sharpeville, South Africa in March 1960. Similarly, between 1956 and 1959, the leading anti-colonial party in Guinea-Bissau, the Partido Africano da Independência da Guiné e Cabo Verde (PAIGC), focused on the mobilization of urban residents in the capital, culminating in a port strike in 1959. The Portuguese refused to negotiate and instead killed at least fifty of the strikers in Bissau.

Facing the entrenched violence of the regimes, anti-colonial activists in the Portuguese and settler colonies felt that they had few strategic options. Most adopted a two pronged approach in the early 1960s: rural-based guerrilla struggle alongside international diplomatic campaigns. Following the massacre of strikers in Bissau, the small PAIGC, under the leadership of Amilcar Cabral, took refuge in neighboring Guinea-Conakry and began to organize incursions into Guinea-Bissau in order to launch a rural insurgency—a strategy that was adopted at nearly the same time by anti-colonial organizations in Angola, Mozambique, and South Africa.

Although African proponents of armed struggle came from diverse political backgrounds, Marxists were central. The interconnected turn toward Marxism-Leninism and armed struggle by the late 1960s was influenced by a few important factors. First, the Cuban and Vietnamese examples seemed to offer evidence that a small core of radicals could develop a rural army and defeat more powerful militaries in order to bring Marxism to the Third World. Second, Cold War rivalries that pitted the Soviet Union and Cuba, on the one hand, against the United States and South Africa, on the other, were increasingly playing out as ‘hot’ wars in Africa.

                                                   Amilcar Cabral of the PAIGC and Fidel Castro

The United States had already established friendly regimes by violent means—most notably by backing the assassination of Congo’s Prime Minister Patrice Lumumba in 1961 and supporting the rise of General Joseph Mobutu. The continued US alliance with the Portuguese dictatorship (who the US saw as a bulwark against Communism) amounted to support for its colonial wars. Meanwhile, the Cubans had been active in backing leftist forces in central Africa since the early 1960s. By the late 1960s the Soviet Union (often via Cuba) began to seriously back viable armed groups that could gain state power in Southern Africa.

The armed struggles in Portugal’s African colonies, particularly the success of the PAIGC eventually triggered a revolutionary upsurge in Portugal that resulted in the overthrow of the dictatorship and the independence of the colonies in 1974-75. In Angola in particular, the new situation brought about direct intervention from competing Cold War powers, as each supported opposing forces vying for control over the new national government. This was more than a proxy war—a massive Cuban force of tens of thousands of troops (brought to Angola by the Soviet Union and equipped with Soviet weapons) fought against South African troops backed by the CIA—as well as against Chinese-supported forces in the north. The Cuban/Soviet intervention eventually secured the hegemony of a faction of the Movimento Popular de Libertação de Angola (MPLA) behind Aghostino Neto—which remains Angola’s ruling party today.[13]

It is important to note that as with the oppositional Marxist organizations of the 1960s, the self-proclaimed Marxist organizations leading armed struggles in the 1970s were not the product of foreign intervention. Quite to the contrary, the Soviet Union usually found itself having to respond to African Marxists who reached out to them (or operated independently). And the Soviet regime’s decision to back these forces was not largely due to ideological agreement. Rather, the Soviets felt more comfortable backing a small core of fighters—with whom they could more easily negotiate—than mass, democratic opposition movements.

Unfortunately, the post-independence records of the PAIGC in Guinea-Bissau, the MPLA in Angola, and FRELIMO in Mozambique are beyond the scope of this piece, but nevertheless followed a familiar pattern: ‘socialism’ as the implementation of policies by a small group of enlightened state leaders coupled with the suppression of popular organizations and demands outside state control. By late 1970s, a number of purportedly ‘Marxist-Leninist’ governments, from Angola to Ethiopia, operated in Africa, but were increasingly divorced from any connection to popular struggle or even any discernable commitment to socialism.

The Collapse of the Cold War Left and the Seeds of Socialism Revival

Although the Soviet Union had been slow to commit to the financial and diplomatic backing of new African governments in the initial years after independence, by the 1980s, it had developed a number of African client regimes who relied on Soviet support. The collapse of the East Bloc and then the Soviet Union at the end of the 1980s dealt a swift blow to these governments, as well as other leftist organizations on the continent who also relied on Soviet patronage. At the same time, African governments on both sides of the Cold War divide had been driven more and more deeply into debt and by the 1980s following the financial crises of the 1970s. They soon faced pressure from international lenders—notably Western financial institutions like the International Monetary Fund and the World Bank—to gut social services, lay off huge swathes of public sector workers, devalue currencies, and privatize national industries in order to receive desperately needed loans to keep their governments operational.

The impact of these ‘structural adjustment programs’ on the vast majority of Africans was devastating. As protests swept Eastern Europe and the Soviet Union at the beginning of the 1990s, Africans too were in revolt, often led by trade unionists that forced an end (at least temporarily) to single-party rule both in regimes allied to both the United States and those allied to the USSR. While these mass upheavals certainly represented a rejection of the decades-long suppression of democratic rights, they were equally spurred by anger over the effects of structural adjustment. But at the time, Marxist ideas in Africa had been largely discredited—both by the collapse of the Soviet Union and the use of ‘Marxism-Leninism’ as a cover for some authoritarian African states. Thus, this moment of great possibilities in Africa at the early 1990s generally deteriorated into a deeper implementation of neoliberalism, a new imperial scramble for African resources, even greater levels of social inequality, civil wars, and the return of single-party rule.[14]

The past twenty-five years, however, have set the stage for revivals of socialist organization in Africa.[15] Despite their contradictions, the legacies of Nkrumah and Nyerere have become touchstones for young activists and workers across the continent who have evoked a return to some form of socialism as an alternative to the horrors of neoliberalism.[16] Similarly, the legacy of Thomas Sankara, the outspoken Marxist leader of Burkina Faso (1983-1987), was invoked by protesters and strikers in the 2011 and 2014 upheavals that finally forced reviled president Blaise Campaoré to resign after 27 years in power. And as Adam Mayer has recently documented, the impact of diverse Nigerian Marxists has carried on into present-day labor and gender organizing—most notably in Nigeria’s nine general strikes in the past twenty years.[17]

The current decade has seen struggles erupt across the continent led by working people against the suppression of democratic rights and the poverty induced by decades of neoliberal economic policies. These movements have put front-and-center the questions of how social equality and an end to imperialism (in all its forms) can truly become realizable. In these struggles, socialist ideas and organizations have space to grow (or emerge) without the weight of the top-down frameworks adopted by African Socialist governments (as well as most of their left-wing opponents) in the past. The ideological influence of Stalin and Mao is no longer, and that has created more space for visions of socialism in Africa based in mass struggle and democratic participation—the same revolutionary principles that made the 1917 Russian Revolution such an inspiring touchstone for Marxists around the globe one hundred years ago.

But the Bolsheviks of 1917 also argued that since imperialism and colonialism were global in nature, socialist states—especially those with minority working classes—could not simply delink from such exploitative relationships. Nor could they rely on the formation of alternative blocs of states that were then forced to compete on an international capitalist market with stronger powers. Such measures could perhaps stave off the collapse of a revolution, but not sustain it without forcing socialist countries to adapt to the demands of capitalist competition.

Instead, the internationalism of the early Comintern insisted that the liberation of the masses of people on opposite ends of the colonial relationship was bound together into a joint struggle against capitalism. In the terms of post-colonial Africa, this has meant that the struggles against capitalism in the imperialist centers and those against ruling classes in Africa need to be fought in tandem through links of solidarity and shared interests. That principle from 1917 is also still critical today.

Matt Swagler is an activist and writer on African history and politics, he completed his PhD at Columbia University and is currently Visiting Assistant Professor in history at Williams College. Matt is active in Palestinian solidarity and socialist politics in New York.

Featured Photograph: W. E. B. Du Bois, Shirley Graham Du Bois, Majhemout Diop, Zhou Yang and Mao Dun at the Afro-Asian Writers Conference in Tashkent, October 1958.

Notes

[1] Michael Löwy argues that the principles of revolution by stages and the bloc of four classes ‘became so strongly rooted in the thinking of non-Western communist parties that, after Stalin’s dissolution of the Comintern in 1943, they remained accepted theory even by those communists such as Mao and Ho who departed from them in practice.’ See Löwy’s The Politics of Combined and Uneven Development:

The Theory of Permanent Revolution (Haymarket, 2010), p. 83-84.

[2] When Ghana became independent in 1957, Nkrumah linked the goals of the Third World project to his call for the unification of the continent in the form of a ‘United States of Africa’—which he promoted by hosting a congress of anti-colonial parties from across Africa in 1958 in Accra.

[3] Former ROAPE editor Jitendra Mohan’s ‘Nkrumah and Nkrumaism,’ in Socialist Register (1967) remains an important assessment of the Nkrumah era, as does Jeffrey Ahlman’s recent Living with Nkrumahism (2017).

[4] US funders required the dam project to be greatly scaled back and required concessions: US companies would not process alumina from Ghana, but bring in their own supplies from Jamaica, ending the dream of a fully integrated national aluminum industry; the Ghanaian government was required to provide electricity at deeply discounted rates to the new US plants; and Nkrumah had to agree to tone down his anti-imperial rhetoric before the Kennedy administration would sign on. See Stephan Miescher, ‘‘Nkrumah’s Baby’’: the Akosombo Dam and the Dream of Development in Ghana, 1952–1966’ (2014).

[5] Issa Shivji’s ‘Mwalimu and Marx in Contestation: Dialogue or Diatribe?’ (2017) provides an excellent introduction to Nyerere’s political relationship to Marxism as well as his Marxist critics. Recent works by Priya Lal and Leander Schneider have been valuable for understanding the relationship between Ujamaa in theory and in practice.

[6] To be clear, the problems and limitations outlined in the above section were not specific to ‘African Socialist’ governments. They were equally common among new African regimes who openly rejected any association with socialism.

[7] Excellent works on the importance of Nkrumah and Nyerere’s message for Black activists in the United States include Kevin Gaines’ American Africans in Ghana: Black Expatriates and the Civil Rights Era and Seth Markle’s A Motorcycle on Hell Run: Tanzania, Black Power, and the Uncertain Future of Pan-Africanism, 1964–1974.

[8] On this period of the Congolese Revolution see Matt Swagler and Héloïse Kiriakou, ‘Autonomous Youth Organizations’ Conquest of Political Power in Congo-Brazzaville, 1963-1968’ (2016) as well as the work of Jérôme Ollandet, Rémy Bazenguissa-Ganga, and Françoise Blum. Pedro Monaville has published important work on the actions of students and the Marxist left in neighboring Congo-Kinshasa during the same period.

[9] In addition to Abdoulaye Bathily’s groundbreaking analysis of 1968 in Senegal, recent research on 1968 has been published by Omar Gueye, Françoise Blum, Pascal Bianchini, Burleigh Hendrickson, and Matt Swagler.

[10] Similarly inspired by Iskra, a weekly paper named The Spark was established under Nkrumah in Ghana the early 1960s.

[11] Quoted in Andrew Ivaska, Cultured States: Youth, Gender, and Modern Style in 1960s Dar Es Salaam (2011), p 170. See Ivaska’s work and Shivji’s ‘Mwalimu and Marx’ for more on the tensions between radical students and the TANU government.

[12] It is equally important to note that strong Communist Parties in opposition, such as in South Africa and Sudan, were violently repressed in the 1950s and 1970s, respectively.

[13] Piero Gleijeses and Odd Arne Westad have recently provided important overviews of Cuban and Soviet interventions in Africa, respectively.

[14] Lee Wengraf’s Extracing Profit: Imperialism, Neoliberalism and the New Scramble for Africa, is essential reading on both the recent form of foreign exploitation in Africa, imperial competition between the US and China, and African resistance to both local and international ruling classes.

[15] Good resources are Leo Zeilig’s edited volume, Class Struggle and Resistance in Africa (2009) and Zeilig and Peter Dwyer’s African Struggles: Today Social Movements Since Independence (2012).

[16] This is particularly evident, for example, in the recent organizing of the bus drivers union in Tanzania, but also new activist groups like the Tanzanian Socialist Forum, who are drawing on Africa’s multiple traditions of revolutionary Marxism. See also Noosim Naimasiah’s ‘Azimio la Elimu: A reflection on education for self-reliance’: https://www.pambazuka.org/education/azimio-la-elimu-reflection-education-self-reliance. Also see the forthcoming special issue from ROAPE’s workshop in Dar es Salaam.

[17] See Adam Mayer, Naija Marxisms: Revolutionary Thought in Nigeria (2016). The same could be said for the small core of revolutionary Marxists in Tunisia and Egypt in the 2011 revolutions.

 

 

 

How NGOisation Provides Cover for the Murder of Shack Dwellers

In South Africa ten members of a militant shack dwellers organisation have been assassinated in the past six years. Yet many progressive organisations have distanced themselves from these militants. Jared Sacks exposes the complicity of a mainstream NGO that could have played an important role defending the movement against these political assassinations. Sacks argues that when movements refuse co-optation, repression, including assassination, become necessary to maintain power.

By Jared Sacks

On 12 June this year, at an Executive Committee meeting of the eThekwini Municipality (Durban, South Africa), the Mayor and Chief Whip made a number of veiled threats against the South African shack dweller movement Abahlali baseMjondolo (AbM). The threats included references to a conspiratorial ‘third hand’ controlling the movement, harkening back to apartheid intelligence services patronage of the right-wing nationalist Inkatha Freedom Party in what effectively turned KwaZulu Natal (KZN) into a war zone. After vilifying the movement, these African National Congress politicians also made it clear that it was now open seasons against Abahlali: ‘we will deal with them’, they said.

This was not the first time the movement had been directly threatened by politicians acting in their official capacity. Ten members have now been assassinated in the past six years. As recently as 22 May 2018, hitmen murdered S’fiso Ngcobo, the chairperson in their eKukhanyeni branch. Then, on 29 May, the movement’s president, S’bu Zikode, was nearly killed when he lost control of his car; mechanics later found that the vehicle was sabotaged in a clear attempt on his life. Zikode has now been forced to go underground to protect himself and his family after intelligence services warned that an attempted assassination was imminent.

One would think that civil society organisations and media outlets would come out in numbers to collectively condemn the continued targeting of Abahlali members. Indeed, given that the sector share a desire to target former president Jacob Zuma’s ANC for corruption and abuse of power, verbalising support for the basic rights of the largest independent social movement in the country should not be a controversial stance. However, beyond a handful of sympathetic organisations, such as the Right 2 Know Campaign and the Social Justice Coalition, most organisations have maintained an eerie silence.

There is a long history behind progressive organisations distancing themselves from Abahlali.

However, beyond left sectarianism, there is one significant mainstream NGO that could have played an important role defending the movement against these political assassinations: Shack Dwellers International. SDI is a top-structure NGO that funds a network of community-based organisations as well as various civil-society support and finance organisations. It claims a progressive politics that employs grassroots development strategies to fight poverty and upgrade shack settlements.

It is a shock to some, then, that when KZN politicians have refused to engage with Abahlali, even threatening its leaders, they have also made a point to foreground SDI and its collection of support organisations as a reasonable alternative ‘movement’ of shack dwellers. In 2007, the provincial housing department ordered Abahlali members to join SDI or be arrested. Within days of refusing, beatings and arrests of members began. And on 12 June this year, while vilifying Abahlali, Mayor Zandile Gumede said that the municipality would work instead with SDI. Recent press statements by AbM have made clear that they expect violence against the movement to increase.

For its part, SDI has been more than happy to steer clear of this ‘conflict’; their approach is overwhelmingly technocratic, seeing it as necessary to circumvent politics and act as a conduit for dialogue and collaboration with government. Indeed, their idea of community participation in the development process is contingent on maintaining a positive working relationship with politicians and officials, rather than mobilising the collective political power of shack dwellers and other workers through protest and resistance. It is not surprising, then, that their board of directors have often featured government officials such as former Minister of Human Settlements Lindiwe Sisulu. This is also why they’re so willing to promote their partnerships with government rather than stand in solidarity with movements facing repression.

Reblocking and its discontents

Emblematic of SDI’s approach is a process called ‘reblocking, which it sees as a bottom-up in-situ development scheme that rearranges informal homes into a more ordered and institutionally legible formation. Reblocking, for them, is only possible with buy-in from community-based organisations. It is meant to provide significant benefits such as improved access to services, prevention of shack fires and flooding, while enabling the passage of emergency vehicles – all with minimal disturbance to residents.

However, this process has become contentious in shack settlements across the country. If reblocking is as participatory as SDI claims, why is it frustrating residents who stand to benefit from it?

In Estineni shack settlement in Tembisa near Johannesburg, hundreds of shack dwellers have been up in arms in response to the Ekurhuleni municipality’s attempts at reblocking. The effects on residents has been anything but beneficial.

Happy Ndebele’s home, for instance, was one of the nicer ones you might find – beautifully decorated with 6 small bedrooms, nice furniture, ceramic tiled floors and self-connected electricity. Their flush toilet stood out to me since the municipality had previously claimed that, without reblocking, plumbing was impossible to install in the settlement. Apparently, some families had gotten together and collectively installed their own sewage system.

After police and demolition crews arrived on 12 March, Ndebele’s home was completely demolished and her flush toilet uprooted to make way for another family as part of the municipality’s attempts at densifying the already over-crowded shack settlement. At the age of 59, she spent seven days sleeping outside in the rain until she was able to put together enough money to rebuild.

This is what reblocking often looks like to the poor; development as its antipode.

The problem with ‘participation’

SDI may very well respond that Estineni is a textbook case of top-down development and the pitfalls of failing to consult the community – something that is core to their development methodology. Yet a closer analysis shows that their concept of ‘participation’ is itself insufficient.

Resident Themba Nxumalo, a former member of the city councillor’s Ward Committee task team on upgrading the settlement, insists that consultation did in fact take place. He paints a more complicated picture of what seemed like an authentic participatory process until community members began opposing certain aspects of the reblocking. Fearing their control over the process would be undermined, the task team began to hide certain details from the community; eventually the councillor removed Nxumalo from the committee for asking too many questions. In other words, participation was only seen as a way to co-opt residents. This points to a much larger problem: SDI’s role as a conduit for government power.

In February and March of this year, reblocking went ahead until protests forced the police and construction crews to withdraw. If the Estineni community had the authority to direct the development process, they would have sought alternatives to reblocking. As community leader and Abahlali member, Melidah Ngcobo put it, ‘rebolocking was not needed.’ The problem, according to her, is the difference between ‘participation’ and ‘ownership.’ Mam’Ngcobo quipped that ‘they say we are undereducated; we don’t know anything about civilisation.’ The rise of a small Abahlali baseMjondolo branch in Estineni is indicative of resident’s refusal to participate in the ‘development game’ any longer.

Providing a cover for repression

The link might seem tenuous at first; what could SDI possibly have to do with the assassination of Abahlali members over the past ten years? The organisation certainly is not directly involved in attacks on the movement. It even released a press statement in 2009 condemning the armed gangs which attacked the movement in Kennedy Road (though they have kept quiet since then). So, they are unlikely to approve of the repression AbM continues to face.

Rather, it is in the role that SDI plays as a more amenable and amenable alternative to Abahlali, that we can comprehend its role in exonerating government repression. This is linked to a trend under neoliberal capitalism which social theorists refer to as the NGOization of social movement struggles.

Over the years, the NGO has worked to co-opt communities into a top-down planning process using strategies such as reblocking; a process which has divided communities which might otherwise be sympathetic to Abahlali’s more antagonistic method of resistance. SDI has therefore helped isolate the movement both at the grassroots level as well as amongst potential supporters in civil society. This is made manifest in their recent well-publicised memorandum of understanding with the eThekwini municipality that has explicitly excluded Abahlali.

But just as significantly, SDI also allows politicians and officials to make a binary distinction between good and bad communities – those with whom they can engage versus those that they accuse of being unreasonable, uncivil, and ‘against development.’ Shack dwellers aligned to SDI are then positioned against those encumbered by retrogressive and even manipulative leaders that want to make the city ‘ungovernable.’ Within this theoretical framework shack dwellers become the new colonised population: violent, barbaric and irrational in the case of Abahlali, and the naive noble savage in the case of those affiliated to SDI.

Any resistance is unjustifiable because SDI – through ostensibly grassroots development strategies such as reblocking – corroborates the government’s argument that a reasonable, democratic, and participatory approach is realisable.

The very emergence of Abahlali as an uncivil political actor therefore constitutes what Lewis Gordon calls an illicit appearance; within this binary worldview, they are deemed violent, immediately inviting (and justifying) a belligerent counter-response. This reply takes the form of authoritative means of repression: the use of demolition crews, armed private security and police repression – as in the case of Estineni.

However, direct repression is rarely sufficient because it tends to have the effect of uniting grassroots structures; hence it becomes necessary to also divide communities through violent populist appeals as well targeted hits on community leaders. In the case of Abahlali we have seen the former in the tribalisation of housing delivery that lead to the 2009 attack on the movement in Kennedy Road. The latter has taken the form of political assassinations of movement leaders, such as S’fiso Ngcobo, Thuli Ndlovu, Nkululeko Gwala, and Sibonelo Mpeku.

In other words, when movements refuse co-optation, repression through various para-state means, including assassination, become necessary to maintain power. It is precisely this role of ‘good shack dwellers’ that SDI aims to inculcate on the one hand which justifies such violent responses on the other.

In post-Apartheid South Africa, Frantz Fanon’s colonial city has been redefined. When Mam’Ngcobo asserts that there ‘is no freedom in South Africa for the shack dwellers’, she is describing a bifurcated city that corresponds to this civil/uncivil binary. Here, the rule of law applies only to a portion of the population. SDI’s role here is to co-opt the ‘noble’ shack dwellers into believing they can operate within the conventions of civil society to which they have historically been excluded. In the process, their potential threat to the status quo is removed while their more subversive counterparts are delegitimised and therefore vulnerable to attack.

Yet, people like Ngcobo realise that they, as a subaltern underclass, are subjugated according to different rules of existence because of the very way in which society is structured. Because they are simultaneously marginalised while being subject to extra-legal means of repression, they have been forced to spurn the disciplinary power of NGOs like SDI and employ more uncivil means of resistance.

Jared Sacks is a PhD candidate in the Department of Middle Eastern, South Asian, and African Studies at Columbia University.

Featured Photograph: A protest by the Durban shack dwellers’ movement Abahlali baseMjondolo in 2006

 

Che Guevara and the Struggle for Western Sahara

David Seddon examines a largely unknown chapter in Che Guevara’s involvement in the revolutionary anti-imperialist movements in Africa. He focuses on the question of how far Guevara was involved in promoting and encouraging the liberation struggle in what was to become Western Sahara. Did he contribute to the development of the POLISARIO Front which even today continues its struggle for Western Saharan independence?

By David Seddon

In my piece on Che Guevara in the Congo on roape.net and Jacobin, I observed that ‘the earliest Cuban aid effort went to the 1961 Algerian liberation movement when Castro sent a large consignment of American weapons captured during the abortive Bay of Pigs invasion. After the Algerians won independence in July 1962, they reciprocated by helping train a group of Argentinian guerrillas, even sending two agents with the guerrillas from Algiers to Bolivia in June 1963’.

I also mentioned, in passing, Cuban support to both Algeria and to the liberation struggle in what was to become Western Sahara. In this piece, I focus on the question of how far Che Guevara was involved in promoting and encouraging the Saharawis, and thus in contributing to the development of the POLISARIO Front which, even today maintains its struggle for Western Saharan independence.

Che in Algeria

Che had already visited Morocco and Egypt, among other countries during a three month tour of mainly Bandung Pact countries, in June 1959. At the end of 1960, he had visited Czechoslovakia, the Soviet Union, North Korea, Hungary and East Germany. It was not until after Algerian independence, however, that he travelled to Algeria. The relationship between Guevara and the Algerians began in mid-July 1963, when he arrived for the first time in Algeria, according to Juan Vivés in his picaresque account of his 20 years in Castro’s secret service, ‘El Magnifico: 20 ans au service secret de Castro’.

Ben Bella, who was at that time the first president of newly independent Algeria, had just asked Ambassador Jorge ‘Papito’ Serguera if he could request Cuban aid for the struggle against Spanish colonialism that was just beginning in what was at that time the Spanish Sahara. Vivés claims that he was called upon by the ambassador to interpret in these discussions, in which Che Guevara was also involved. Ben Bella asked the Cubans if they would meet representatives of the Saharawis, who were already engaged in such a struggle. The Cubans immediately contacted Havana to obtain approval for such a meeting. The response was for them to ‘make contact but make no commitments, because of the delicate – indeed tense – relationship between Cuba and Spain’.

Che (and Vivés) rapidly informed themselves regarding the history of the Spanish Sahara and the struggle by the Saharawis since the late 1950s against the Spanish occupation, drawing on various sources including the KGB. Vivés states that Che decided that the Saharawis could be helped to form a political liberation movement which would have its headquarters in Algeria and, as a result, he claims, the Movement for the Liberation of the Sahara (MLS) was born. Most accounts of the origins of the Saharawi’s struggle for independence from Spain, however, make no mention of this involvement on the part of the Cubans, yet it was crucial.

Different Accounts

In his lengthy discussion of the ‘Origins of Saharawi Nationalism’, the acknowledged expert on the subject, Tony Hodges, suggests – as indeed do most accounts – that ‘it was a young Saharawi who had studied abroad, in the Middle East, who organized the first clandestine anti-colonial movement in Western Sahara…’ Mohammed Sidi Ibrahim Bassiri was born in 1943 in Tan Tan, then part of Spanish Southern Morocco, but soon afterwards moved south into the Spanish Sahara with his family to Lemsid, near El Ayoun. He was later one of several hundred Saharawi children evacuated by the guerrilla fighters of the Moroccan Army of Liberation (which included Saharawi contingents) in September 1957 to Morocco, where he entered a school in Casablanca on a scholarship.

After passing his baccalaureat, Bassiri studied in Cairo and Damascus, graduating with a diploma in journalism and returning to Morocco in 1966. There he founded a radical journal, ‘Al Chihab’ (‘The Torch’). Towards the end of 1967, however, he left Morocco and returned to the Spanish Sahara where he persuaded the authorities to issue him with a residence permit. He started to teach the Quran and Arabic at the mosque in Smara and used his influence as a teacher to recruit the nucleus of an underground anti-colonial movement.

This, according to Hodges, became known as the Harakat Tahrir Saguia el-Hamra wa Oued ed-Dahab (Organization for the Liberation of the Saguia el-Hamra and Oued ed-Dahab – the two main regions of Western Sahara). It was also known as al-Hizb al-Muslim (the Muslim Party). Hodges does not himself refer to it as the Movement for the Liberation of the Sahara (MLS), although it is entirely possible that it was also known by this name. The main difficulty is that the account by Vivés suggests that he and Che Guevara met various representatives of the Saharawi groups involved in the liberation struggle in mid-1963 and helped them establish a single movement (the MLS); but this was four years before Bassiri is said by most accounts to have formed ‘the nucleus of an underground anti-colonial movement’ in 1967.

The two accounts are not inherently incompatible but, if Vives is correct, then two important elements are missing from the ‘conventional wisdom’. First, there were groups involved in some form of anti-colonial activity before Bassiri returned to Smara and became active in the liberation struggle, and second that the Cubans, and Che Guevara in particular, were not only involved in supporting these groups from a much earlier stage but also effectively helped establish the first named liberation movement – the MLS.

The Army of Liberation

To get to the bottom of this, we need to go back a little to the period when thousands of Saharawis became part of a broad, trans-frontier anti-colonial struggle (directed largely but not exclusively against the French) in 1957-58, when they responded to the insurrectionary appeals of the Moroccan Army of Liberation (Jaysh al-Tahrir), which in January 1956 had appointed Benhamou Mesfioui – who had previously led guerrilla actions against the Spanish in the north of Morocco – as commander of ‘the southern zone’.

On the eve of Moroccan independence (March 1956), Mesfioui took control of a huge area in the extreme south of Morocco. Hodges comments that ‘inspired by the success of the Moroccan independence struggle, Saharawis began to enrol in the Army of Liberation. In June 1956, its units began a series of attacks on French positions near Tindouf in southwest Algeria. By February 1957, they were operating far to the south in the extreme north of Mauritania.

In February 1958, however, the Army of Liberation was crushed by a combined Franco-Spanish counter-insurgency operation, known as Operation Ouragan (Operation Hurricane).  The remnants of the Army for the most part sought refuge in southern Morocco, where they were disarmed, disbanded and partially integrated into the Moroccan Forces Armées Royales (FAR), which had finally succeeded in establishing the authority of the new independent Moroccan government in the extreme south of Morocco. The Saharawi units of the Army of Liberation presumably disbanded themselves and disappeared into what remained, after all of this, the Spanish Sahara.

Early Opposition to Spanish Colonialism

Hodges suggests at one point that ‘the ensuing decade saw no significant expression of Saharawi opposition to Spain in the territory that remained under Spanish rule. However, this was to be a period of profound economic, social and political change and when a new anti-colonial movement did begin to take shape, at the end of the 1960s, it took a decidedly different form from the Saharawi units of the Army of Liberation’. This account seems to suggest that there was no ‘significant’ expression of Saharawi opposition until the late 1960s.

This does not fit with the account provided by Vivés in which he and Che Guevara met ‘representatives of the Saharawi liberation movement’ in the early 1960s. Nor is there any mention by Hodges of involvement in the Saharawi opposition, at any time in the 1960s, by the Cubans.

Hodges does accept that the late 1950s and early 1960s were a period of ‘profound change’ and explains how this included a series of political changes that saw the effective unification of Spanish Sahara between 1958 and 1962 as a ‘fully fledged province of Spain’, and the rapid urbanization in the early 1960s of the previously largely ‘nomadic’ Saharawis. He does not, however, as we have noted, identify ‘any significant expression of Saharawi opposition’ until the late 1960s, with the establishment of the Harakat Tahrir.

Vivés claims that Che not only promised the representatives of the Saharawi groups identified as constituting a ‘significant opposition’ the support of Cuba, but specifically proposed to Havana that some of these cadres could be sent to Cuba for political training (in Marxist theory and practice and in guerrilla strategy and tactics).  Language would not be a problem as these young men spoke good Spanish.

An issue might be the fact that they were Muslims. But Vivés describes how Che explained to the sceptical Cubans, on the basis of his own first-hand experience in Egypt, the way in which Nasser had established a form of Arab socialism in Egypt and that even the question of their religion might be managed.

Che’s Role

We know that throughout late 1963 and into 1964, while based in Algeria, Che Guevara, accompanied by Vivés, toured the African continent, visiting Mali, Congo Brazzaville, Guinée-Conakry, Dahomey, Tanzania and Egypt. Vivés make the point that after this extensive tour Che did not return to Cuba, but to Algeria. Then, after visiting Geneva in March 1964, he went to Russia, where he spent a month in Moscow celebrating the 47th anniversary of the October Revolution. In December, he was addressing the United Nations. He returned once again to Algeria, via Canada, and then travelled on to China to request military support for revolutionary movements in the Third World from Chou En Lai, before returning once more to Algeria, which now clearly served as his base.

In February 1965, on the occasion of the Afro-Asian Conference in Algiers, he made a rousing but controversial speech on the struggle against backwardness and poverty as well as for liberation and against imperialism, in which among other things he criticised what he called ‘white’ imperialism and the ‘exploitation of the Third World by the countries of the East’ – which caused a furore in Havana and Moscow, and led to his being effectively declared persona no grata in both capitals.

Vivés mentions the assassination in 1965 of Mehdi Ben Barka, a prominent leader of the left opposition to the royal regime in Morocco, and reports that Fidel Castro swore to punish Morocco for this ‘crime’. He suggests that a series of public anti-colonial demonstrations was organised, in response (presumably with some Cuban and Algerian input), with the MLS, as a result of which ‘hundreds of activists’ were thrown in prison. The last of these demonstrations was held in June 1970 and on this occasion the Spanish Foreign Legion opened fire on the protestors, killing and injuring ‘hundreds’, and arresting and detaining large numbers.

Vivés remarks that Castro decided at this point that a political movement alone was not enough. Military training camps were opened in Algeria.  Vivés also suggests that between 1971 and 1972, ‘the movement changed its name’ to refer to itself as the Popular Front for the Liberation of Saguia el Hamra and Rio de Oro (the POLISARIO Front).

Hodges’ version of things is somewhat different, although some elements are the same. He identifies the growth of the Harakat Tahrir between 1967 and 1970 and the growing concern on  the part of the Spanish authorities when, ‘by the spring of 1970, (they) had detected widespread support for the movement among urban Saharawis’ and the fact that the movement had begun to seek aid from neighbouring Arab governments. The organization was able, for example, in May 1970 to submit a memorandum setting out its goals to Algerian officials in Tindouf.

Then, on 17 June 1970, the movement responded to a government-sponsored rally in El Ayoun with a counter-demonstration – the demonstration to which Vivés also refers. The repression that followed the immediate shooting of the protestors ‘shattered the Harakat Tahrir’, according to Hodges. Hundreds were arrested, most of them being released after a few days but the leaders being detained for several months, some of them in the Canaries, and then deported to Morocco or Mauritania. As for Bassiri, he was arrested on the night of 17 June and was never seen again. The Spanish government later claimed that he had been deported to Morocco, but the Moroccan authorities deny that he ever arrived.

The POLISARIO Front

Hodges suggests that the POLISARIO Front was founded three years after the collapse of the Harakat Tahrir, in May 1973, by a different group of Saharawis, implying that there was not the organizational continuity to which Vivés alludes. He states that, by the early 1970s some forty or so Saharawi students had gained entry to Moroccan universities and that it was at Mohamed V University in Rabat that several of the students who were to play a part in the formation of the POLISARIO Front in 1973 first came together.

The most influential among them, according to Hodges, was a young man who was later to become the POLISARIO Front’s first secretary-general, El Ouali Mustapha Sayed (‘Lulei’). El Ouali was born in 1948 and settled with his family, about ten years later in Tan Tan, where Bassiri had been born a decade earlier. Although from a poor background, he was able to attend school, pass his baccalaureat and enter the faculty of law at the Université Mohamed V in Rabat.

These Saharawi students in Rabat first sought assistance from the Moroccan opposition, but soon realized that they could expect little effective support from this quarter. They also made contact with anti-colonialist Saharawis in the Spanish Sahara, many of whom, Hodges admits, were ‘former members or supporters of the Harakat Tahrir’, and with Saharawis further afield, in centres of the Saharawi diaspora, such as Zouerate in northern Maurtania and Tindouf in south west Algeria. A particular effort was made to recruit support from the Saharawis of southern Morocco.

By March 1972, Hodges remarks, ‘this student group’, as he calls it, was beginning to appeal for support from a range of Arab governments, notably that of Algeria. The group was by now also beginning to experience harassment from the Moroccan authorities, and in March and May 1972, anti-Spanish demonstrations by Saharawi students and other youth in Tan Tan (now part of Morocco) were broken up by the Moroccan police, and a number of the demonstrators, including El Ouali, were detained.

The Tan Tan incidents confirmed the group’s fears that the constitution of a Saharawi liberation movement within Morocco would carry serious political risks. El Ouali had already established links with another nucleus of Saharawi militants, including two veterans of the Army of Liberation who had also been active in the Harakat Tahrir, in Zouerate, and the Zouerate group was able to secure residence permits for El Ouali and some of his comrades.

So, it was in Mauritania, according to Hodges, that the final preparations for the establishment of the POLISARIO Front were made. The founding Congress was held somewhere near the Mauritanian-Spanish Sahara frontier on 10 May 1973. ‘The POLISARIO Front’, the Congress declared, ‘is born as a unique expression of the masses, opting for revolutionary violence and armed struggle as the means by which the Saharawi people can recover its total liberty and foil the manoeuvres of Spanish colonialism’. The first attack in what would become a protracted war of liberation took place only ten days after the founding of the Front.

Hodges comments that ‘some small-scale aid’ had been received by the POLISARIO Front from Libya, but notes specifically that Algeria ‘did not aid POLISARIO significantly until the spring of 1975’. He refers to the ‘self-reliant and exclusively Saharawi participation in this organizing work’ which he argues ‘tended also to encourage ideas of Saharawi distinctiveness and autonomy’.

The support that they had anticipated from other Arab governments was largely not forthcoming at this crucial early stage and the ‘self-reliance’ to which Hodges refers became a hall mark of the Saharawi struggle for liberation and for independence over the next 45 years. This ‘self-reliance’ did not, however, mean that the POLISARIO Front was isolated or cut off from the rest of the Arab world, or indeed from sub-Saharan Africa.

So, can we confirm the involvement of Che Guevara in the origins of the POLISARIO Front and the subsequent Saharawi struggle for liberation and independence, as Vivés suggests? He was certainly in Algeria in mid-1963, for the First Seminar on Planning (at which on 16 July he outlined the experiences of the Cuban Revolution) and it seems entirely possible that during this time he met and encouraged the representatives of the very earliest Saharawi anti-colonial militants, including those who went on to be the backbone of the Harakat Tahrir, some of whom were also, later, involved in the formation of the POLISARIO Front.

There seems to have been more continuity in the movement and in the liberation struggle between the ‘early’ participants and those who established the POLISARIO Front. In this sense, it could be argued, that Che was indirectly involved in the origins of the POLISARIO Front, even if the kind of support he envisaged and proposed was not realized and what military training was provided seems to have taken place in Algeria – possibly with Cuban assistance.

Che certainly used Algiers as his base during 1963 and 1964 as he toured the world making contact with anti-colonial movements across Africa and Asia. It is entirely possible that, during this time, he maintained contact with the Saharawis, although there is no direct evidence to this effect.

After April 1965, when Che renounced his positions in the Communist Party in Cuba, his rank of commandante and his Cuban citizenship, his focus moved elsewhere – to the Congo, where he had already identified a potential revolutionary situation and where he was to spend seven months supporting the rebellion against the neo-colonial regime in the country.

Hodges suggests that the growth of the Harakat Tahrir took place between 1967 and 1970 – well after Che had left Algeria, and indeed after his death. So, his direct involvement must, in any case, have come to an end in 1965.

But there can be little doubt that his own life and his involvement in the revolutionary anti-imperialist movement worldwide through the 1960s had an impact on generations of Saharawis fighting until the present day – for the status of Western Sahara remains a matter to be resolved even now, half a century and more since the struggle began – for liberation, for independence and for the revolutionary transformation of their society.

David Seddon is a researcher and political activist who has written extensively on social movements, class struggles and political transitions across the developing world.

Featured Photograph: Bob Marley and Che(e) Guevara on the back of truck in Ouagadougou – Burkina Faso (July, 2010).

 

Africa’s Dependency Curse: the Case of Botswana

In a major contribution to roape.net, Zsuzsánna Biedermann analyses the complex reasons behind the largely fruitless diversification efforts in Botswana. Many African countries abundant in non-renewable natural resources experience the harmful effects associated with the extensive role oil, mining or gas extraction plays in their economies. Even if Botswana’s initial development based on diamond mining was spectacular, there is mounting proof that the Botswana Democratic Party – the country’s governing party since independence – has been deeply intertwined with the De Beers diamond mining cartel. Development, industrialisation and diversification remains a frustrating and elusive goal for the country.

By Zsuzsánna Biedermann

African history has taught us that diversification is key for long-term economic development. Africa’s economic diversification has been on the agenda since most countries gained their independence in the 1960s. Yet efforts at diversifying economies or export portfolios have largely been unsuccessful: in three-quarters of African countries, primary commodity export earnings still make up 70 per cent or more of all earnings and many countries depend on a single resource. These countries are prone to external shocks lacking the cushion of a more diversified export basket.   

Why diversification efforts have mostly failed is a vital question. Windfall gains from natural resources have often caused governance problems, corruption and strengthened the empirical basis for the natural resource curse thesis. But it would be a mistake to attribute all diversification problems to internal factors.

A 2017 blogpost on roape.net by Christopher Hope points out that most analysts nowadays refrain from using the dependency approach. Certainly, as Hope explains in his short essay, dependency theory tries to interpret how global capitalist structure affects and sometimes impedes economic diversification in developing countries, ‘due to attempts by developed countries to maintain the global status quo.’

In an effort to understand the complex reasons behind largely fruitless diversification efforts in Africa, I will try to analyze the interplay between internal and external factors through the specific case study of Botswana, and its diamond ‘beneficiation’ programme (‘beneficiation’ is a process that improves or benefits the economic value of an ore by removing commercially valueless material, which results in a higher grade, and a more ‘processed’ product). 

Many developing countries abundant in non-renewable natural resources experience harmful effects associated with the extensive role oil, mining or gas extraction plays in their economies (Venezuela, Sierra Leone, Nigeria, Angola, etc.). On the other end of the spectrum, the economic history of several developed countries proves that it is possible to convert resource earnings to create a sustainable growth path (Australia, Norway, Sweden, Canada, etc.). Why do some countries succeed in resource-based development while others do not?

Most sub-Saharan African resource-abundant countries are unable to catch up with advanced economies and reach inclusive, sustainable economic growth. That is why the natural resource curse approach seems to be such a productive framework of analysis for sub-Saharan African countries.

Economic literature identifies several channels through which natural resource abundance can harm development. What are these development traps?

(1) The finite nature of exhaustible natural resources: transitory extra income allows increased consumption but only for a certain period of time.  What happens when the resource is depleted?

(2) Extreme price volatility:  since commodity prices affect royalties and taxes paid by extractive companies, government revenues are unpredictable, and can alter dramatically from year to year which makes planning the budget problematic (for example, commodity prices dropped substantially from June 2014 to April 2015 – oil 54%, iron ore 70%, copper 40%, coal 54%).

(3) The crowding out effect of extractive industries: when extraction starts local revenues increase, local currency appreciates, production shifts to the booming extractive sector and tends to sweep in workers from other areas. Tradable sectors – usually manufacturing and agricultural companies – suffer from currency appreciation and become less competitive internationally. The extractive sector usually works as an ‘enclave’ with few linkages with the rest of the domestic economy.

(4) Excessive role of the state, resulting in the spread of rent-seeking and corruption.

(5) Negative societal changes: natural resources are usually spatially concentrated and the interests of government, producing regions and rest of the country differ which might cause tension, unrest, even civil war.

The Case of Botswana

In spite of its resource abundance, Botswana has long been hailed as the African success story,  an example of a developing country that defies the resource curse thesis and is able to harness its natural resources for sustainable development.

Indeed, upper-middle income Botswana is characterized by low corruption rates compared to other sub-Saharan African countries, strong institutions, good governance, prudent budgetary policy and low societal tensions. The Tswana elite focused on development instead of a ‘wholesale pillage’ of resources and managed to prevent the accumulation of social tensions before the great discoveries of precious minerals. So, the Minerals Rights in Tribal Territories Act (1967) declared  all rights of ownership in minerals are vested in the state. The central redistribution of resources worked well, partly due to a tribal system called kgotla (regular public meetings where leaders are held accountable). Botswana also set up a sovereign wealth fund in 1994 to facilitate government spending, ease the problem of price fluctuations and save for future generations.

The country’s development based on diamond mining was spectacular, and managed to prevent most negative effects associated with resource-based development.

Dependency and Decline

However, Botswana’s diamond era is slowly but steadily approaching an end after five decades due to an escalation in diamond producing costs (after relatively superficial, surface mining, extraction now needs to go underground). Since 80 per cent of export earnings and 60 per cent of government tax revenues come from these precious stones, the negative effects on the domestic economy will be severe. A report by the Botswana Institute for Development Policy Analysis estimates that after diamond ‘depletion [between 2025 and 2027], GDP [will be] 47% below the non-depletion path.’ Thus, consumption patterns will need to be adjusted to these new GDP levels.

But why is the country still so dependent on diamond revenues when extraction started almost five decades ago and an economic diversification programme was conceived decades ago?

Diversification strategies have failed one after the other for various reasons. One example of a diversification programme is the local beneficiation of diamonds. The evolution of this downstream industry sheds light on the tight room for manoeuvre of the government.

Theodore Moran summarized assumptions of the dependency theory related to the role of multinationals’ in the Third World in his 1978 study Dependence and Dependency in the Global System. An important hypothesis of dependency theory suggests that multinational companies in the third world tend to co-opt local elites so that bargaining power shifts in their direction instead of in host country’s interests.

Like most countries stuck at the wrong end of global value chains, Botswana has been trying to pressurize its extracting company, De Beers  – one of the largest diamond producing companies of the world, producing approximately 35 per cent of rough diamonds worldwide – for many years to consider local processing of locally mined rough diamonds as well as consenting to transferring the rights to sell at least some part of the rough diamonds to the government.

Since diamond transport costs are negligible, ever since extraction started in Botswana, rough stones were flown out to leading diamond centres located in the US, Belgium, Israel, India and China for sorting, cutting, polishing and jewellery design and diamonds were sold exclusively through the De Beers Central Selling Organization.

In 2001, then managing director Gary Ralfe argued against beneficiation in an interview, saying that ‘it would be national folly to prescribe that any percentage of their diamonds needed to be beneficiated locally.’ This sentence came to represent De Beers’  three-decade long stance on local processing.

Although Botswana is one of the least corrupt countries in sub-Saharan Africa, there is mounting proof that the Botswana Democratic Party – the country’s governing party since its independence – is intertwined with the De Beers cartel.

Former Botswana president Ketumile Masire’s – in office from 1980 to 1998-  company, GM5 was given financial assistance from De Beers on several occasions through ghost companies,  as early as during his first presidency. Masire was probably also paid to step down as president, after a consultancy report ordered by De Beers recommended a transfer of power to help the BDP win the 1999 elections.

David Magang, former Minister of Mineral Resources and Water Affairs from 1994 to 1997, mentions in his memoirs that Debswana – joint venture mining company of Botswana and De Beers – managing directors were always chosen by De Beers and later approved by the government, and their loyalties were primarily to De Beers. He remembers that ‘the probity of our representative board members [members of the Debswana mining company board] has at times been compromised. For instance, it is alleged that a Debswana MD, himself a member of the board, once circulated a memo in which he asked his compatriots to indicate whether they were interested in buying Debswana-owned houses at very relaxed rates. Who in his right mind would bother to probe an entity that gave such an advantage?’ Magang, advocating for local beneficiation publicly in 1997, was actually a very isolated figure – as he wrote, ‘I became the cabinet’s laughing-stock, being derided as “the only man in all of Botswana who dares advocate beneficiation.”‘

In 1999, BDP received 2.4 million BWP (the Botswanan currency) support from an unknown donor from a Swiss bank account that proved to have come from a De Beers subsidiary.

These few instances of corruption that became public often decades after they took place, show the immense influence De Beers had over Botswana and its governing elite. Chaim Even-Zohar, editor of a diamond magazine, wrote that ‘De Beers was, in those days [1997], so omnipotent in Botswana that no one got away with challenging their policies, which were basically the law of the land.’

So in Botswana’s case, the dependency thesis seems to have been proven. De Beers secured an intimate relationship with Tswana leaders who had a profound influence on the appointments of members of the political and economic elite, who, in turn, shifted policy in the company’s interests.

Due to a series of events, including De Beers’ involvement in ‘blood diamonds’, the influence of the company on the world diamond market has started to fade. As a consequence, the company depends increasingly on Botswana for 59 per cent of its production.

Diversification 

Due to this loss of power, Tswana pressure intensified and yielded significant results in recent years. So in 2011, De Beers agreed to move its aggregation and sorting centre to Gaborone – Botswana’s capital – and to reroute 15 per cent of its rough diamonds to the state-owned Okavango Diamond company. Therefore diamond sales are no longer confined exclusively to De Beers and the government can sell diamonds independently. Botswana’s aim is clear: become a diamond trading and production hub and create jobs for local workers in the process.

However, the problem is that government strategy to move actively towards diamond beneficiation has come too late. Too late for the economic life cycle of Tswana diamond mines. As Roman Grynberg writes, ‘Had these [developments] occurred in the 1980’s after the initial development of Jwaneng [mine], Botswana workers would have had 20 more years to develop the cutting and polishing skills and infrastructure needed in the industry.’

Today the entry to diamond beneficiation market is difficult for several reasons. Building a viable diamond processing industry, Botswana has to compete with lower Indian and Chinese prices and more expensive but experienced and knowledgeable US, Belgium, Canada and Israel who have numerous world-class ‘diamantaires’ with immense technical expertise.

Figure 1: This chart shows the per-polished carat cost of diamond processing in major diamond centres vs. Botswana’s processing costs (Source: Grigorián, 2012)

Why would an investor choose Botswana over other centres when its disadvantages are obvious? The question sits at the heart of the future of the beneficiation industry.

Currently, the beneficiation industry has created 3200 jobs and has become the largest manufacturing sub-sector. It will probably not become much larger unless we see the direct allocation of rough diamonds from the government to companies also increases. In a country of approximately two million people, this is a good starting point for industrialization but not enough to lower the persistently high unemployment rates and far from the situation in India where approximately 800.000 highly-skilled labourers work in the diamond cutting and polishing industry.

Until diamond production in Botswana is flourishing, the government has enough leverage to pull diamond companies into the country. If estimates are correct, the country has only a decade until mining at Jwaneng mine goes underground or continues with a considerably deeper mine. Extraction will continue afterwards, but with lower output.

Currently, there are major obstacles to success. Labour productivity is low but wages are relatively high compared to other diamond centres. However, in another 30-40 years with lower diamond output and a direct rough allocation system the country could acquire the necessary expertise to build the ancillary infrastructure. Conscious consumers could also play an important part, with diamond sellers emphasizing that locally beneficiated diamonds have contributed to Tswana capacity building and the fight against poverty and unemployment etc.

To conclude, Botswana is facing major difficulties related to the finite nature of diamond resources and the failure of economic diversification efforts. These problems result from the extreme influence the De Beers cartel has had on the country and the world diamond market for decades. The Tswana elite, largely co-opted, had failed to truly represent the country’s interests against the De Beers cartel. Diamond beneficiation might still take root in Botswana, but with a limited number of jobs it provides only a partial solution to further economic development.

Zsuzsánna Biedermann is research fellow at the Institute of World Economics of the Hungarian Academy of Sciences, she has written on the economic context of conflicts in the Great Lakes Region of Africa. Currently, she is working on the resource-curse and challenges of resource-rich sub-Saharan African economies. Biedermann is also editor and contributor of a major Hungarian blog on African economies: http://www.afrikablog.hu.

Featured Photograph: High-security administration building and transportation machinery at the Jwaneng Diamond Mine, Botswana.

Crisis and Resistance in Uganda

Ugandan pop star singer and politician, Robert Kyagulanyi aka Bobi Wine, has generated an unprecedented political buzz around the world. Exploring the background to the country’s crisis, Moses Khisa writes how Uganda is a country with endemic socioeconomic problems and exists in a distorted and parasitic capitalist economy. Khisa writes how the government is presided over by the visibly tired president, Yoweri Museveni, who claims weird and even messianic powers.

By Moses Khisa

A Ugandan pop star singer, cum politician, Robert Kyagulanyi aka Bobi Wine, has generated an unprecedented political buzz around the world. His arrest in the north-western town of Arua, in August, and alleged torture at the hands of security personnel thrust him in the international limelight arguably at a pace and intensity no other Ugandan politician has experienced.

From interviews with major international television networks, newspaper reports and Op-Eds in leading newspapers to official reactions from the European Union parliament and United States members of congress, Kyagulanyi overnight cast a shaper and arguably more vivid spotlight on Uganda than has previously been done by either the traditional political opposition or civil society activists. Needless to say, he is a political neophyte having only joined national politics last year. Such is the story of a country whose young population is in desperate need of political change, grappling with biting socioeconomic distress that has engulfed what was primed as a neoliberal economic African success story.

The Ugandan government has reacted with both panic and paranoia to the unprecedented rise and the challenge posed by Kyagulanyi. It initially attempted to stop him from leaving the country for further treatment in the United States following his alleged torture at the hands of the Special Forces Command (SFC) soldiers. With hindsight though, it appears that the government sensed something ominous: an anti-regime tidal wave was likely to fly along with Kyagulanyi to Washington and to the wider global community. And it did. His trip to the United States allowed him unfettered access to an international audience.

The attention and coverage he received over a couple of weeks instantly placed him at the top of the struggle against the Museveni regime. This raised the possibility of rallying a wider sentiment against the regime especially in the most important western capital – Washington. Notwithstanding his public utterances, often castigating or downplaying the west’s role, Washington has been Museveni’s patron and the president deeply cares about his relationship especially with the Department of Defence as a key source of military aid.

Regimes supporters especially on social media have drummed up the narrative that Kyagulanyi is a ‘fake’ foreign front, sponsored by actors bent on capturing Uganda for their own interests. There has been an uncanny suggestion that external interests have their eye on Uganda’s oil and want regime change to institute a puppet government. More generally, government officials have alluded to a supposed external hand in the growing political protest in Uganda. ‘There has been a marked pattern of pre-planned and well-executed violence, quite often with active financial and technical support from foreign groups operating in Uganda under the very guise of freedom of expression,’ Government spokesman, Ofwono Opondo, told the media on Monday 17 September in Kampala.  

The suggestion that opposition to the Museveni regime and the rise of youth insurgency, now coalescing around a youthful Kyagulanyi, is the handiwork of external forces is at best a laughable, hollow charge. If anything, arguably more than many of his contemporaries, Museveni and his government have hugely depended on external patrons and foreign forces for more than three decades to hold onto state power. From fighting America’s wars in Somalia against Al-Qaeda and its regional affiliate and being the proxy against a Sudanese Islamist threat in exchange for military aid.  

Economically, as the Washington Consensus’s leading African student, Museveni and his government have been the foremost agents of global capitalism with all its hideous vagaries. The hard economic conditions now propelling young people to follow populist young politicians like Kyagulanyi have in large part been powered by how neoliberal economic policies were pursued in Uganda at the behest of external actors. Uganda’s economy is a good example of African economies that do no more than service global capitalist interests – it is the place for hot speculative capital to make a quick buck today and get out tomorrow in a ‘free for all’ environment. Museveni and his government do not, therefore, have the moral authority to call out external influence in Ugandan politics.

At any rate, there is enough combustible material inside Uganda to fuel furry and propel protest. With massive youth unemployment, economic distress and a dire sense of hopelessness, Ugandan society is a powder keg. Hundreds of thousands of young people graduating from schools, colleges and university find nothing in the job market – the jobs are not there because the structure of the economy is not attuned to generating jobs. Politically, the average Ugandan, even one who ordinarily supports the Museveni regime or supported it the past, has become deeply disillusioned by one-man rule which has been extended once more.

Last year, reports, including from a national poll, showed that the majority of Ugandans were opposed to removing the age limit cap on the presidency and were in support of reinstating presidential term limits. Term limits were dubiously deleted from the constitution in 2005, and in blatant and total disregard of popular opposition, in December 2017, the parliament passed constitutional amendments that among other things removed the last remaining roadblock to Museveni’s project of a life-presidency. Museveni is now eligible to contest again in 2021 without age and term restrictions.

Since 2005 the popularity of the ruling National Resistance Movement (NRM) has hinged heavily on blatant use of state patronage and outright bribery – in effect, paying to rent support. The ruling party boosts of an overwhelming majority in the national legislature and control over most district councils. The president routinely reminds whoever questions his longevity in power by referring to the fact that he is being periodically and democratically elected leader. Museveni is on record in 1986 at his inaugural swearing in to have chastised African rulers who did not want to leave power.

But unlike other dominant ruling parties both in Africa and elsewhere, historically and at present, the NRM has no robust organisational presence beyond living off the state largesse. Its claim to supreme power is highly superficial and, outside of the control of state finances and state violence, untenable. The NRM lacks independent financial resources, has no extensive bureaucratic structure, no known long-term strategy of renewing its existence and institutional reproduction especially in terms of leadership.

What is more, while Museveni appeals to his being elected, the credibility of Uganda’s elections, especially presidential ones, have collapsed since 2006. Arguably, the last time he won an election fairly was in 1996, and if one really stretched it, legitimacy ended with the 2001 elections. The independence of the Electoral Commission is not guaranteed under the existing legal regime where the president, who is the most important candidate in every election cycle, decides who should head the commission and the other members appointed to oversee its work.

It is not surprising that such a commission has to do what the appointing authority wants when push comes to shove. Add to that the fact that the security forces are not neutral actors in the electoral processes, in fact the entire state apparatus comes to bear on the elections on behalf of the incumbent. This has always been the crux of the lack of credibility in African elections and the primary reason term limits were embraced in the new and rewritten constitutions during the period of democratisation on the continent in the 1990s.  It is almost impossible to compete against the incumbent except in countries like Ghana where electoral and state institutions have evolved to the point of relative autonomy.

At any rate, Museveni is ridding the tiger. He presides over a broken political system where the basic rules of the game are stridently contested by his opponents. The political tailspin appears to worsen with newer challengers, the latest being the political movement now dubbed ‘people power’ with Kyagulanyi as the symbolic head.

The government as a whole has increasingly become inept and the state’s institutional apparatus has decayed while the political elites are engaged in crony accumulation, and the state is unable to serve the wider public good. The healthcare system in Uganda has been under permanent sickness. While basic health indicators like infant mortality and life-expectancy have modestly improved, the overall public health services are decrepit. The same can be said of education where high enrollment figures at primary and secondary levels are countered by equally high drop rates and a rather mediocre education.

The crux of the problem is that the system has been anchored on political corruption which sustains the governmental system but undermines the public good – individuals who profit off the system, both in government and in the private sector, are incentivised to work hard to protect it. They buy-off regime critics and demobilise the political opposition, all at the expense of committing resources to critical public goods and services.

As matters stand today, it is near impossible for Museveni to run an efficient government that is based on merit and which can overcome the entrenched nepotism, crony capitalism and corruption precisely because the latter are the foundation upon which the regime sits. To be sure, the march of history is often difficult to predict, let alone stop. With rapidly changing demographics in an era of social media, the wheels of political change can shift uncontrollably and unconventionally. Today we are talking about a country with endemic socioeconomic problems in a distorted and parasitic market capitalist economy presided over by a visibly tired ruler who claims weird but not entirely unusual messianic powers.

Moses Khisa teaches politics and political development with a focus on contemporary Africa at North Carolina University in the United States. He was born and educated in Uganda and remains a prolific commentator of the country’s political scene, writing regularly for The Observer.

Featured Photograph: Ugandan independent MP Robert Kyagulanyi, known as Bobi Wine, at the magistrate court in northern Uganda, on August 23, 2018 (AFP Photo). 

 

Lifting the Veil on Capital Flight and Tax Havens in Africa

By Nataliya Mykhalchenko

Odd-Helge Fjeldstad, Sigrid Klæboe Jacobsen, Peter Henriksen Ringstad, Honest Prosper Ngowi Lifting the veil of secrecy: Perspectives on international taxation and capital flight from Africa (Bergen: Chr. Michelsen Institute, 2017). The book is available as open source and can be accessed here.

This is a timely collection. Published when newspapers are saturated with tax-related scandals and fraud allegations, the book analyses some of the main issues surrounding illicit financial flows, in particularly concerning tax heavens. The focus of the book is Africa – the continent that suffers most from capital outflow, not only but especially in terms of economic development. Targeted at, among others, policy makers, tax practitioners, civil society organisations, students and researchers, the aim of the book is to contribute to widening the debate around tax havens and offer policy-relevant data and findings.

The book starts by considering the scale of the problem. Loss to African countries in corporate tax evasion is higher than anywhere else in the world – with a tax system which enables tax avoidance. Particularly egregious is the behaviour of multinational companies in the extractive industry who pay absurdly small amount of tax by registering profits to tax havens. Among the continent’s rich wealth is frequently hidden in havens outside national tax authorities and beyond judicial reach.

As the book tells us, ‘the global network of offshore financial centres … popularly known as ‘tax havens’ or ‘secrecy jurisdictions’ … make it possible for rich elites and large multinational companies to drain large amounts of wealth out of Africa.’ Many of these tax havens are located in predictable places, small tropical islands such as the Cayman and the British Virgin Islands, but also in rich OECD countries such as Ireland, the Netherlands, Luxembourg, Singapore, and the United Kingdom.

Despite the notorious difficulties in assessing the scale of the problem, the authors present some shocking figures. Globally, there is approximately USD 8 trillion of personal financial wealth in offshore accounts. This figure rises to USD 32 trillion when tangible asset like property, artwork and jewellery are included. Yet as a proportion of total wealth, Africa is the most afflicted continent in the world. ‘Africans hold USD 500 billion in financial wealth offshore, amounting to 30% of all financial wealth held by Africans.’ In terms of lost taxation from this ‘flight’, it is suggested that African countries are deprived of an estimated annual figure of USD 15 billion. However, as the book states, ‘The inclusion of non-financial wealth, or higher estimates from available literature, could push this figure as high as USD 60 billion annually.’ In short, the situation is catastrophic.

One of the many strengths of the book, is the representation of experts from the Global South. This can be seen in the make-up of the team of this collection: Thirty in total, they include experts, academics, activist, political and economic advisors, and importantly come from a variety of backgrounds and geographies. As a few examples: Professor Annet Oguttu – first black woman to get a doctorate in tax law at the University of South Africa, where she later became the first female Professor; Dr Honest Prosper Ngowi – an Associate Professor of Economics at Mzumbe University in Tanzania; Professor Leonce Ndikumana – Professor of Economics University of Massachusetts at Amhest and Dr Caleb Fundanha – the Director of the Institute for Finance and Economics and Chief Executive Officer of Macroeconomic and Financial Management Institute of Eastern and Southern Africa.

The volume is organised into five sections: each one opens by introducing a topic and is then complimented by shorter articles with more in-depth discussion and case studies. Setting the scene in the introduction, the authors take up, what seems an unwieldy task: not only understand the impact that tax havens have in economic terms on the continent, but also explore ways in which the global networks of offshore financial centres affect domestic tax bases, political institutions, and citizen’s participation. To note briefly, there is no clear explanation as what kind, or in what, the ‘citizen’s participation’ is referred to.

After defining some important concepts and giving an overview of the historical evolvement of tax heavens, the book moves to talk about its estimated scale and impact on the African continent as well as about the intricate relationship between capital flight, global corporations, bank secrecy and the elites, i.e. the power-accumulation nexus.  Importantly, there is an acknowledgement of the difficulty in quantifying the exact amount of money being lost due to, amongst other things, the mismatch in trade statistics and often inaccurate methodologies used to estimate losses. This is an argument that is widely adopted by the international community as the search for more reliable methodologies continues. 

The actors involved in the network of tax heavens, including the so-called ‘Big Four’ (EY, Deloitte, PwC and KPMG) are explored in detail. These actors – also referred to as ‘lobbyists’ – according to the study, play one of the central roles in pushing for tax incentives and benefits for multinational companies, to the extent that this influences legislation in certain countries as explored by John Christensen here. The exploration of the extractives sector on the African continent and its relationship with tax havens is probably one of the most insightful parts of this collection. Detail-rich, it illustrates how multiple actors (including domestic players), navigate their way in interests-driven financial schemes in order to – to put in simple terms – squeeze as much revenue and pay as little tax.

The final section of the book gives an overview of some of the actors involved in trying to tackle issues associated with tax havens as well as the measures and initiatives these actors are supporting. The overview is comprehensive, covering the historical development of these initiatives, mentioning the current changes and importantly underlining the importance of building capacity in the African countries in tax administration, including taxpayer services and increasingly important e-tax systems.

Structurally, the book has various shortcomings. Due to the fact that some of the shorter articles in the five sections were not written specifically for this collection (but rather adapted), at times there is a sense that the information is fragmented. The lack of cross-referencing within sections and shorter articles throughout the book also adds to this effect. Moreover, there are several times where the same concepts are being defined and explained repeatedly, while it helps in our understanding, this repetition breaks the flow of the book.

What the structural inaccuracies also do is that they take away from effectively conveying the response to research objectives that were laid out at the start of the book. The data and analysis to further understand how tax havens affect domestic taxation bases, political institutions and ‘citizen participation’ gets somewhat diluted in lengthy explanations. While it is understandable that when trying to unveil the complex financial and political structures at play, there is a sense that there is not enough emphasis on how the material connects to the research questions. What is also lacking is a conclusion. The book seems to end abruptly and leaves the reader ‘hanging’; I would have liked to see the analysis being comprehensively concluded.

What the book does do however, it is it opens up a much-needed debate around the importance of looking beyond financial impacts of tax havens to start a wider discussion on its effects on domestic law-creation, people’s perceptions and attitudes toward taxation, in order to understand the mechanism and policy that can be used to deter the abuse of the global financial system. The book offers a solid grounding that can inform future research, studies and debates. Available as open source, graphically appealing and detail-rich, the book is an accessible resource for those interested in peering behind the veil of secrecy.

Lifting the Veil of Secrecy is available as open source and can be accessed here.

Nataliya Mykhalchenko graduated from the University of Leeds in International Development. Supported by ROAPE she researches anti-fraud initiatives on the African continent. Recently she has investigated anti-fraud measures in South Africa, Ghana, Botswana, Nigeria, Tanzania, Kenya, Malawi, Rwanda and Zambia. Working with ROAPE’s Jörg Wiegratz, Nataliya’s research is linked to the political economy of anti-fraud measures in the Global South. She is now based at the Social Research, Law and Legal Studies at Birkbeck University. 

Featured Photograph: From the article ‘Africa is Poor’ they said! on Quora

 

Farmers and Agricultural Development in Ghana’s Cocoa Industry

BRITAIN AND THE COMMONWEALTH OF NATIONS 1945 - 1975 (TR 4924) The Chief of Osino and his elders receive a report from a British colonial agiculture officer concerning an outbreak of swollen shoot disease which was endangering the local cocoa crop during the early 1950s. Osino was part of the Ashanti Protectorate in the Gold Coast, later part of the Republic of Ghana. Copyright: © IWM. Original Source: http://www.iwm.org.uk/collections/item/object/205189772

Looking at the cocoa industry in Ghana, Erik Jorgensen and Yukari Kanamori demonstrate how power asymmetry in the private cocoa industry and reduced institutional capacity have added to dependency. The Ghanaian Cocoa industry is an example of the disproportionate appropriation of rents by foreign firms in the downstream segments of the value chain which has not only halted agricultural development, but actually eroded the position of cocoa farmers in the country.

By Erik Jorgensen and Yukari Kanamori

In the rush to highlight the role of global value chains (GVCs) in structurally transforming agriculture, and more broadly in economies across sub-Saharan Africa, we must not lose sight of where benefits are being accrued. Much as settler agriculture under colonialism simultaneously transformed agriculture while excluding local producer, GVCs that vertically integrate smallholder farmers as producers of the raw good without investing in routine upgrading are more exploitative than they are developmentalist in rural spaces. In this blogpost for roape.net we look at the case of Ghana to demonstrate how power asymmetry in the private cocoa industry and reduced institutional capacity have added to dependency, and how firms have sought to mitigate this type of imbalance by stimulating agricultural development alongside that of agro-industry.

The increased prevalence of agro-industrial value chains around the world has encouraged development professionals and national leaders alike to reconsider the place of agriculture in the industrialisation process. Years of agro-Afro-pessimism is being questioned in policy discussions as national leaders increasingly come to view vertical integration of smallholder farmers into these GVCs as a means to agricultural and industrial development. President Akufo Addo’s Planting for Food and Jobs initiative implemented in 2017 in Ghana is an example of the dual mandate of stimulating agricultural and regional industrial development through a single policy. However, agricultural development should not be considered a natural outcome of value chain integration. Agricultural development happens in tandem with industrial development within agro-industrial value chains where rents are productively re-invested, either by the public or private actors, to improve farmers’ competitivity at the production level.

Here, we use the term GVCs to describe any international process of value addition through which an agricultural product is grown, processed, and sold by a firm or multiple firms. We concentrate specifically on the outgrower model used in cocoa industry, wherein the lead firm does not grow the crop but purchases from farmers or farmers groups. We define rents as the profits generated from relative comparative advantage in the respective field of production. 

While industrialisation relies on the perpetual reinvestment of rents into a firm or sector to increase productivity, agricultural development has historically relied on small income generation projects. These piecemeal projects have largely ignored the structural barriers that farmers face when looking to commercialise and—while they may generate surge in yields—rarely initiate a cycle of continued reinvestment and upgrading.

The Ghanaian Cocoa industry is a case in which the disproportionate appropriation of rents by foreign firms in the downstream segments of the value chain has not only halted agricultural development, but actually eroded the position of cocoa farmers in the country. The colonial government set up a marketing board in order to develop cocoa industry in the colony. As a government monopsony, it used the rents generated from selling cocoa in international markets for a number of functions: price stabilisation, research and development, extension services to farmers, and quality control—among others. The resulting spread of cocoa changed the very structure of agriculture in much of the southern half of Ghana, labour markets were created, and social mobility was amplified.

At the time of independence, unlike other African countries that suffered from fierce political and religious conflicts without having strong industrial foundations nor leadership, Ghana was in a relatively peculiar position. Although the country was underdeveloped, abundant foreign reserves from the colonial cocoa production and strong leadership of the country’s first Prime Minister and President Kwame Nkrumah enabled nation-wide aggressive industrialisation initiative. However, this did not necessarily develop with institutional reforms to effectively deprive the influence of clientelism, rather, it was to strengthen the nationalist ‘self-government’ of the independent government. As world cocoa prices fell in the 1960s, the government sought to diversify the economy. Import-substituting industrialisation was adopted as a central strategy, but a series of short-term governments and the persistence of clientelism limited the extent to which the government was able to address the firms’ competitivity, capacity improvement, and the overvalued exchange rate. Furthermore, the outbreak of oil shocks in the 1970s severely exacerbated the already severe fiscal deficit. By the early 1980s increased debt and inflation prompted the government to turn to the World Bank’s Structural Adjustment Programmes. The urgency to restore the economy and one-size-fits-all prescription of structural adjustment led to the immediate and substantial rollback of many of the marketing board key services. Multinational corporations filled in many of the roles formerly undertaken by the marketing boards, such as quality control, yet unlike public institutions they had less incentives to invest back into agriculture or industry. Research institutions’ reduced funding and shifting priorities caused yields to stagnate as they cut extension services and devoted an increasing share of funding to research and development of novel products rather than to improving agronomic performance.

The increased involvement of multinationals has not offset the state’s reduced re-investment into production but, instead, have devoted their research and development primarily to improving profitability in downstream segments of the value chain. Compounding the effect of reduced quality control services, novel grinding technologies developed by multinationals reduce the significance of bean quality and further erode the farmers’ ability to demand a quality premium. While these firms are industrialising and becoming increasingly efficient, the fact that most processing still takes place in developed countries or in Ghana’s export free zone inhibits the government’s ability to capture rents to reinvest in production. While the United Nations Industrial Development Organisation hosted the first ever ‘World Free and Special Economic Zones Summit’ in 2017, Ghana established its first EFZ in 1995 under President Rawlings. The stated intention of these zones was to increase foreign direct investment and expand the space of manufacturing in Ghanaian exports, this was accomplished through tax concessions and reduced emphasis on domestic involvement by allowing 100%-foreign-owned firms to operate with equal rights as domestic firms. While recent efforts have undoubtedly increased the prevalence of downstream cocoa processing within Ghanaian borders, nevertheless much of the benefits have been accrued by foreign firms at the expense of the domestic smallholder farmer.

Currently, Tree Global, a private organisation producing high-quality cocoa seedlings, is attempting to fill some of the agronomic research and development gap that has developed since the early 1980s. Using the most advanced genetics and production techniques, Tree Global markets high-quality seedlings to Ghanaian cocoa farmers. These seedlings are of a higher quality than those distributed by the government and produce pods more rapidly, providing such a favourable performance that smallholders have been willing to pay for seedlings in place of planting free lower-quality ones. While this boost in productivity does not guarantee a cyclical reinvestment into production for continued development, it does highlight the role that private, for-profit, organisations can have in promoting agricultural development. If the rents generated by this increase in productivity are captured and reinvested in further research and development, producers may be able to initiate a domestic cycle of rent investment that complements the advancements being made internationally by multinationals. Circumventing the reliance on rents from international chocolate processors and retailers has the potential to increase the competitivity and bargaining position of the producer.

While GVCs for cocoa have opened significant opportunities for agricultural development, the experience of Ghanaian cocoa industry emphasises the importance of the scale and destination of rent redistribution. For a process of continual agricultural development to coincide with the industrial development taking place in global agro-industrial value chains, investment in primary producers must be made at an extent capable of upgrading the systems of production. Where private industry fails to make this investment and the state is incapable of capturing rents to redirect to farmers due to the use of Export Free Zones, there must be a search for alternative markets for farmers and more localised cycles of rent production and reinvestment. New methods of value addition—such as adoption of traceability protocols, the establishment of single origin marketing, or enrolment in quality assurance schemes such as Fairtrade—and emphasis on developing novel products, like non-melting chocolate, for regional markets have potential for expanding bargaining power for Ghanaian farmers. This support to the farmer could be the difference between agricultural development and a race to the bottom in agricultural value chains.

This blog post is part of a series composed by Masters candidates on the African Development course at the London School of Economics and Political Science. They represent the views of an emerging body of critical young voices interested in radical structural transformation and growth in African economies. The series is featured in roape.net, Africa is a Country, Africa@LSE and ID@LSE blogs.

Erik Jorgensen completed a Masters in African Development at the London School of Economics. His research interests include vocational agricultural education and entrepreneurship, agricultural extension, and value chain integration for smallholder farmers.

Yukari Kanamori researches state and business relations, inclusive business, and business and human rights. She recently completed a Masters in Development Management at the London School of Economics.

Featured Photograph: The Chief of Osino and his elders receive a report from a British colonial agriculture officer concerning an outbreak of swollen shoot disease which was endangering the local cocoa crop in the Gold Coast during the early 1950s

The Dangerous Rise of the Digital Utopians Across Africa

After the manifest failure of microcredit to address poverty in Africa and everywhere else, the international development community has hit upon a new microcredit-related idea that, it claims, will do the job this time around: ‘fin-tech’, i.e. financial technology. As Milford Bateman argues in this blogpost fin-tech has the potential to gravely undermine the position of the poor and to increase inequality while, not coincidentally, vastly enriching a narrow elite.

By Milford Bateman

Financial technology, or ‘fin-tech’, has been defined as, ‘Computer programs and other technology used to support or enable banking and financial services.’ The pioneering fin-tech that so many development experts love is M-Pesa, Kenya’s agent-assisted, mobile phone-based, person-to-person payment and money transfer system. M-Pesa’s origins lie in a project funded by the UK’s Department for International Development (DFID) in 2000 to encourage the private sector to improve access to financial services. M-Pesa was launched in March 2007 and expected to specialise in providing microcredit, but it was found that clients were more interested in the transfer of money, and so this became the focus of its activity. M-Pesa operates through a network of agents that allow clients to put cash into their account and take it out. By changing cash into ‘e-balances’, it is possible to send cash to another account via an SMS message. M-Pesa is owned by Kenya’s largest and most profitable company Safaricom, which in turn is majority owned (including through its South African subsidiary) by the UK telecoms multinational Vodafone plc.

Kenya stands at the front of the fin-tech movement thanks to M-Pesa and M-Shwari – a lending application also within the Safaricom group. But, thanks to the support of the international development community, the fin-tech revolution is spreading right across Africa. Digital payments are being introduced in many African countries, while fin-tech savings and loan platforms are expanding very rapidly indeed. One of the leading examples is MyBucks, the South African-owned (but registered on the Frankfurt Stock exchange) financial institution. MyBucks has been purchasing non-profit microcredit institutions and other ‘bricks and mortar’ lending operations all across Africa in order to turn them into hugely profitable fin-tech platforms, not least expecting to benefit by significantly upping the amount of expensive microcredit it can make available through a mobile phone.

However, it is largely thanks to M-Pesa in Kenya that the international development community now argues that a new digital utopia has arrived in Africa, i.e. that the further introduction and growth of fin-tech applications will play a major role in addressing the pressing need for meaningful poverty reduction, job creation and sustainable local economic development.

Unfortunately, the debate over the real value of fin-tech, including M-Pesa, is hopelessly one-sided since the fin-tech lobby itself is leading it. By this I mean the World Bank and its International Finance Corporation arm, USAID and DFID. These international development agencies also work in conjunction with a range of other private institutions with a keen self-interest in seeing the fin-tech model spread across the Global South, centrally including many of the major financial institutions (CitiGroup especially), leading Silicon Valley tech investors and investment funds, the two major digital payments companies (Visa and Mastercard) and a handful of high-profile Silicon Valley philanthro-capitalists (especially Bill Gates through his Gates Foundation). This effort is then further backed up by a plethora of fake ‘astro-turf’ NGOs, such as the Better than Cash Alliance (BTCA), that were set up by the private institutions noted above and which quietly do their bidding while presenting themselves to the world as if they are really all about ‘helping the global poor’.

The interests of all of the above parties are patently clear. For the international development agencies, it is about promoting an ideologically preferable ‘pure’ market-driven form of financial intermediation, while also benefitting American and British multinationals. For the multinationals and investors involved, the prospect of fantastic profits in a growing under-regulated market is more than enough to wet their appetites.

The power of the US-based philanthro-capitalists here should also be considered. Some analysts see them as neutral bodies when it comes to promoting interventions designed to assist the global poor, always being careful to choose ‘what works best’. However, this is simply not so. Look carefully and one can find that they are actually primarily engaged in validating and extending the system that conferred upon them their great wealth and power at the expense of many around the world, especially the poor; they have no interest in trying to change this system at all. Philanthro-capitalists support the fin-tech model to preclude any fundamental challenge to African capitalism. The neoliberal model of capitalism supremely validates and celebrates their achievements, and they have no wish whatsoever to change this. Fin-tech is a useful innovation to support because it provides the appearance of great things for the poor, but no substance.

As Anand Giridharadas points out, ‘American elites generally seek to maintain the system that causes many of the problems they try to fix — and their helpfulness is part of how they pull it off. Thus their do-gooding is an accomplice to greater, if more invisible, harm … What their “change” leaves undisturbed is our winners-take-all economy, which siphons the gains from progress upward.’ Like microcredit the US government-led fin-tech movement involves significant downsides for the poor, and keeps off the table alternative pro-poor development models and institutions, while it provides a whole array of ideological and financial gains for global elites.

What is the real development impact of fin-tech on the ground?

Alarmingly, the driving force behind the fin-tech revolution in Africa – market fundamentalist ideology and the aggressive drive for profit – are the very same two noxious components in the US financial sector that gave rise to the multiple frauds that created the global financial crisis in 2008. This fact alone is more than enough to suggest extreme caution. But emerging facts on the ground confirm that extreme caution is very much warranted.

Consider first that in the last decade or so conventional microcredit institutions had already begun to create a worrying level of indebtedness in Kenya. Reckless lending became a pervasive feature of virtually all maturing microcredit sectors across Africa. The arrival of fin-tech has clearly begun to exacerbate this over-indebtedness problem. This was almost inevitable when, for instance, many fin-tech lenders advertise their services with the claim that it is now possible to obtain a new microloan ‘at the touch of a few buttons on your mobile phone’.

Even one-time microcredit advocates are now sounding the alarm bells. Perhaps the most notable of these voices is that of Graham Wright, the founder and Group Managing Director of Microsave, one of Africa’s most successful financial inclusion consultancy companies. Microsave has succeeded down the years by advising governments and the international development community on the need to embrace the commercialised microcredit model and then, when it began to become clear that the microcredit model had failed, how to promote the new financial inclusion agenda. Launched by the World Bank, the financial inclusion movement is an effort to protect and hide the failed microcredit model by incorporating it into a new and wider agenda that argues the poor now need a whole range of market-driven financial instruments in order to better cope with their poverty. 

Perhaps one of the worst aspects of the current over-indebtedness problems, however, is the impetus fin-tech has provided for the serious gambling problem currently afflicting Kenya and neighboring countries such as Rwanda, Uganda and Tanzania. Microcredit becomes the chance to be ‘in it to win it’ for so many of East Africa’s poor, offering them the hope of instantly escaping their poverty predicament, or at least a little excitement in an otherwise desperate daily struggle to survive. Young people are particularly susceptible to the allure of gambling, with all too many able to instantly access cash via M-Pesa and then sending it on to one of the many gambling sites. Entry inevitably starts with small sums, but regular gambling can result in major losses for those unable to quit.

Consider also those who choose to use their digitally-acquired microcredit for what it was originally intended – to create new microenterprises. This can only be good, right? Sadly, no. Rather than strengthening the local economy, such a trajectory often undermines it. For one thing, the sheer paucity of local demand means very many new enterprises simply cannot survive for very long; as many as 46 per cent of MSMEs in Kenya fail within a year after their establishment.

Worse still, even if enough new entrants are successful, their success will inevitably eat into the local demand that existing microenterprises were counting on to survive. This forces very many of these already struggling incumbents to contract or fail. Economists call this ‘job churn’, a highly unproductive entry and exit phenomenon that creates very few net sustainable jobs and generally makes the local economy structurally weaker. Further compounding the problem created, the ultra-competitive local market structure created by fin-tech lending helps to force average incomes down to the subsistence level. More of the poor might therefore be more active in their own new microenterprise, but all microenterprises in the community will tend to earn less on average, meaning that they are in work but poorer than ever. This was a huge problem in South Africa, when over 1997-2003 microcredit helped create many new informal microenterprises and some jobs, but this additional competition helped depress average incomes by a crushingly large 8 per cent per year. With the current high growth rate of fin-tech lending in Kenya and new fin-tech lenders emerging just about every day, it seems unlikely that such a negative scenario can be avoided there.

Academic Economists and Fin-Tech

But some academic economists say great things about fin-tech. By far the most talked-about contribution to date has been that by US-based economists Tavneet Suri and William Jack. Almost every article on the issue of fin-tech now quotes their astonishing headline claim that up to 194,00 households in Kenya (2 per cent of the total) were able to escape poverty between 2008 and 2014 thanks to their use of M-Pesa.

Unfortunately, this headline-grabbing claim by Suri and Jack is largely unfounded There are a surprisingly large number of defects in the work by Suri and Jack, which is somewhat surprising given that the two economists hold high academic positions in reputable US institutions. So where have they gone wrong?

First, Suri and Jack completely ignore the ‘job churn’ and lower average income effects just noted above. In spite of the clear evidence that failure rates of microenterprises are extremely high in Kenya, as everywhere in the Global South, they chose to assume that every women in Kenya who starts a tiny microenterprise with the help of M-Pesa must have succeeded. There is thus no need to explore in their analysis any of the familiar downside problems associated with the failure of a microenterprise. Of course, that is not to say that there are no positive impacts of new microenterprise entry in Kenya, but without looking at the impact of exit as well as entry we simply cannot tell. Inevitably, Suri and Jack also chose to ignore the displacement impacts affecting incumbent microenterprises. They conjured up instead a Disneyland-style world of perfect competition in which the local economy is sufficiently elastic to absorb any number of new microenterprises supplying lots more simple goods and services without creating any problems for anyone. It is not just sociologists and anthropologists, like Mike Davis, who well understand that such a rose-tinted model is fundamentally wrong, many development economists do too (notably the late great Alice Amsden).

Suri and Jack then compound their problematic analysis by also choosing to ignore the issue of the destructively high rates of individual over-indebtedness that now exist in Kenya. When it is evident to many economists (including surely their local researchers?) that M-Pesa has significantly extended this very serious problem, this is another major omission. And when leading financial analysts such as Graham Wright are vociferously arguing that the over-indebtedness situation is creating a huge problem, it is difficult to see why and how such a serious downside can be missed in any analysis of the development and poverty impact of M-Pesa.

Finally, as economists working in the neoclassical tradition, Suri and Jack dutifully refuse to consider issues related to the operations of power and imperialism in the sector and how they might shape markets in order to benefit above all one – the most powerful – side of any market transaction.

Accordingly, they have nothing to say about the fact that the majority owner of M-Pesa – the UK multinational telecoms giant Vodafone – is generating massive profits from its stake in M-Pesa, value that is ultimately harvested from the tiny and often desperate financial transactions and tiny business operations of Kenya’s poor. This profit stream is being repatriating back to already wealthy shareholders in the UK and in other global financial centres, just as in previous centuries, in fact, when mining and other activities allowed the UK’s colonial elites to extract significant wealth value from the country’s many colonial possessions.

All told, one really has to wonder if Suri and Jack’s work was ever meant to be a genuine effort to assess the value of fin-tech and M-Pesa. Or was it perhaps simply an output that was designed to provide a headline-grabbing claim that could then be used by the US-led international development community – notably the World Bank – to convince African governments into embracing fin-tech regardless of the hugely problematic impact it will have on their poor? We should remember that there is a track record of just this underhand tactic being used by certain sections of the international development community with regard to microcredit. In giving an unfeasibly positive view of the impact of microcredit in Bangladesh, two World Bank economists, Mark Pitt and Shahidur Khandker, nevertheless achieved the World Bank’s strategic goal of instantly validating microcredit in the eyes of the world, thus opening the way for its rapid expansion. When Pitt and Khandker’s analysis was later on largely debunked, this did not matter: its expansion around the Global South had been secured in the meantime and many financial corporations and investors in the leading financial centres in the rich countries were soon doing very well indeed from their profit flows originating in the Global South. So, are Suri and Jack the new Pitt and Khandker perhaps?

There is no doubt that fin-tech has the potential to liberate enormous value that could make the lives of the global poor immeasurably better; for example, allowing member-owned financial cooperatives and credit unions to provide better and cheaper services for their members while redistributing any profits from the operation right back to them. But the problem as it stands in Kenya – and wider still in Africa and the world – is that the bulk of the value being released by fin-tech is not designed to go to the poor, who will most likely be worse off: it is very clearly designed to go up into the hands of a narrow global financial-digital elite that are the main forces behind the fin-tech ‘revolution’.

The 2008 global financial crisis showed the world that an exciting new innovation said to be of huge benefit to America’s poor minority communities – sub-prime mortgages – was actually expressly designed to enrich a narrow Wall Street financial elite. If a similar deception is not to be perpetrated in Kenya and across Africa, then those genuinely committed to poverty reduction and social justice, must urgently take concrete action.

Milford Bateman is a Visiting Professor of Economics, Juraj Dobrila University of Pula, Croatia and Adjunct Professor of Development Studies, St Marys University, Halifax, Canada.

Featured Photograph: A poster advertising of the mobile payment service M-Pesa in Tanzania in 2008.

Black Consciousness and Anti-Capitalism: The Legacy of Steve Biko

Continuing our look at the life of Steve Biko, Heike Becker writes about two extraordinary events. The first was the formation of a Black organisation of student protest in 1968. The South African Student Organisation (SASO) was founded during a meeting exclusively attended by black students. Biko became the new organisation’s first President. The second was the astonishing friendship that developed between Steve Biko and Rick Turner. Together their political and philosophical ideas helped shape the massive strike wave in Durban in the early 1970s. Their murder – Biko in September 1977, and Turner in 1978 – put an end to the conversation between Black Consciousness and anti-capitalist notions of ‘participatory democracy’, which provided a brief glimpse of the possibilities of another South Africa.

By Heike Becker

In 2015 students at South African universities rose up in a mass revolt. Young women and men born after the end of apartheid in 1994 demanded free education; they forcefully insisted that tuition fees be scrapped, and also that the contents, methodologies and academic teachers reflect the post-apartheid ‘free’ South Africa.

In the new student movements the legacy of Steve Biko, who was murdered by the apartheid regime on 12 September 1977 became important again. Young students regarded Biko’s call to autonomous Black action as still relevant for contemporary South Africa. Black Consciousness philosophy gained significance again when students insisted upon the reform of curricula, which they said conveyed racist and colonialist forms of knowledge and ignored, even scorned African intellectual experience. Calls on black people to first free their own minds, become conscious of their own, and each other’s conditions and work together to change the material conditions of black students have been the guiding principles of the new South African student movements as they were for the generation of the 1970s.

A brush with the police: Biko’s early politicisation

Stephen Bantu (Steve) Biko was born in what is today the Eastern Cape province of South Africa on 18 December 1946. His father worked as a policeman, and later as a clerk in the King William’s Town Native Affairs office. He was also enrolled for legal studies at the University of South Africa (UNISA), the distance-learning university. Steve’s father died suddenly in 1950, when Steve was four years old. His mother subsequently raised the children on her own, working as a cook at a local hospital.

In 1962 Steve started his senior secondary schooling at the famous mission educational insitutiton in the Eastern Cape, Lovedale college, where his elder brother Khaya was already a student. Khaya, who was politically active with the Pan Africanist Congress (PAC), became a major influence on Steve’s introduction to resistance and liberation politics. A few months into Steve’s studies at Lovedale the Biko brothers were taken into custody by the police. Khaya, who was suspected of being involved with Poqo, the armed wing of the PAC, was charged and sentenced to two years imprisonment, with 15 months suspended. Steve was interrogated by the police and though released he was subsequently expelled from the school after only attending it for three months.

Though he was forced to return home he continued going to classes at Lovedale, where he became friends with Barney Pityana, at the time a student at the school. This friendship became significant in the formation of the Black Consciousness movement, and especially the South African Student Organisation (SASO).

Black Consciousness ideology and the formation of SASO

SASO arose out of profound revolts against apartheid and institutional racism, which spread across South African universities from the mid-1960s. In 1968 at Fort Hare, a fairly independent black institution for higher education, students boycotted the installation of the new rector Johannes Marthinus de Wet, a member of the Afrikaner broederbond (a secret society of male white nationalists). Later in the year the university was closed and 23 students, among them Barney Pityana were not allowed to come back. Significantly, a new organisation of student protest arose in the very last days of 1968 when SASO was founded during a meeting, exclusively attended by black students. This event took place at Mariannhill, a Catholic mission west of Durban, and the site of St. Francis College, a coeducational independent secondary school, which was the alma mater of Biko, from which he had matriculated with very good grades in 1965 and subsequently taken up studies at the ‘non-European’ medical school of the University of Natal. Biko became the new organisation’s first President when SASO was officially inaugurated at the Turfloop campus of the University of the North (UNIN) in July of the following year.

The developments that led to the formation of SASO need to be understood in the politics of South Africa’s 1968 moment, a reinvention of the politics of protest. The late 1960s and early 1970s saw the emergence of new repertoires of resistance in student protests. Yet SASO’s formation was also due to the complex relations of black students with the country’s long-existing national student organisation NUSAS (National Union of South African Students). NUSAS, which had been founded in 1924, was open to students of all races.

At the ‘black’ universities which had been established as apartheid institutions in the early 1960s small numbers of students joined NUSAS, and at some institutions battles took place for permission to form autonomous Student Representative Councils (SRC) and to affiliate to NUSAS. Yet there also was frustration about racist tendencies within the student association. At issue was that NUSAS despite its multiracial membership was essentially dominated and controlled by white students.

In 1968 Biko and others thus formed SASO, which for political reasons offered membership to students of all ‘black’ sections of the population, which included those assigned to the apartheid categories of ‘African’, ‘Coloured’ and ‘Indian’. In 1971 the SASO Policy Manifesto set out the Black Consciousness doctrine.

On the organisational level, the SASO activists held that to avoid domination by white ‘liberals’ black people had to organise independently. In 1970 Biko wrote in the SASO Newsletter, suggestively signing as ‘Frank Talk’:

The role of the white liberal in the black man’s history in South Africa is a curious one. Very few black organisations were not under white direction. True to their image, the white liberals always knew what was good for the blacks and told them so…

Nowhere is the arrogance of the liberal ideology demonstrated so well as in their insistence that the problems of the country can only be solved by a bilateral approach involving both black and white. This has, by and large, come to be taken in all seriousness as the modus operandi in South Africa by all those who claim they would like a change in the status quo. Hence the multiracial political organisations and parties and the ‘nonracial’ student organisations, all of which insist on integration not only as an end goal but also as a means. 

Black Consciousness as SASO’s official ideology was profoundly influenced by the SASO leadership’s reading of Frantz Fanon, particularly the militant philosopher’s Black Skin, White Masks and the African-American Black Power movement. In the early years the focus was on the psychological empowerment of black people; they believed that black people needed to rid themselves of any sense of racial inferiority, an idea they expressed by popularizing the slogan ‘black is beautiful’. As early as 1971, the SASO leadership discussed proposals to cast off the students-only attitude, including the formation of a Black Workers’ Council (later renamed the Black Workers Project) and launched the Black People’s Convention (BPC), a new political movement that would soon run alongside SASO. Practically the activists organised Black Community Programmes (BCPs).

In the early years of its existence, the all-black SASO was allowed space to grow at the black universities, in part because the government regarded the separate black student association and its emphasis on largely psychological-oriented black consciousness as quite compatible with the apartheid ideology. They were to learn soon that SASO, and more generally the ‘black conscious movement’ that Biko promoted, posed a major threat to the regime. But by the time that SASO began to be more active in political campaigns, from about 1972 onwards, the organisation had established already firm structural roots, which made it difficult for the government to entirely suppress it.

An early example of the dialectics of repression and radicalised politicization included the 1972 student protests at ‘Turfloop’ after the Student Representative Council (SRC) President, Onkgopotse Tiro, was expelled after speaking out against Bantu education during a graduation ceremony at the university. 1974 became a crucial year. In January SASO officially condemned the presence of the Apartheid forces in Namibia; the organisation also reaffirmed the non-collaboration stance of the Black Consciousness Movement and condemned the Bantustan leaders. In September of the same year a rally celebrated the ascension of FRELIMO (the Mozambican liberation movement under the leadership of Samora Machel) into power in Mozambique was held despite the refusal to grant permission for the action. 

Repression followed suit. Eighty SASO and BPC leaders were detained without trial for their support of the pro-FRELIMO rally and during the following year tried at the Supreme Court in Pretoria, eventually in 1976 they were sentenced and incarcerated on Robben Island. In 1974 SASO was listed as one of the affected organisation under the Affected Organisation Act of 1974. This prohibited it from receiving foreign funding to pursue its objectives. In July 1975 SASO held its annual conference under very difficult conditions. Only one member of the executive committee could attend the meeting. The rest of the executive members were either banned or had been arrested. Finally in October 1977, SASO and other Black Consciousness organisations were banned under the Internal Security Act. The most brutal example of repression of course was the murder of Steve Biko while in detention in September 1977.

The ‘Durban Moment’

As South African student politics radicalised, the protests initially confined to university politics grew beyond campus concerns; they became instrumental in laying the grounds for the new black trade unions that emerged in the 1970s. In some instances, black and white students, and a few younger, radical academics, worked together in these new-left politics. Radical academics were involved particularly in the efforts around strikes and black labour unions. The connection between students, radical academics, workers and other marginalised social groups becomes brilliantly apparent in the ‘Durban moment’, probably the most significant political development ensuing from South Africa’s 1968. The ‘Durban moment’ is often regarded as the beginning of the new wave of resistance that led to the Soweto uprising, the massive uprisings of the 1980s and eventually the demise of the regime.

Early 1973 saw a massive strike wave in the port town of Durban. By the end of March 1973, almost 100,000, mainly African workers, approximately half of the entire African workers employed in Durban, had come out on strike. Through songs and marches, workers made their demands heard – the first public mass action since the political activism of the 1950s. This was political action, and also more immediately a labour revolt; workers exercised the power of factory-based mass action.

What looked like spontaneous strikes, originated in a complex mix: low wages, the humiliation of pass laws and racism, the hardship of migrant labour, forced removals, and significantly the denial of black workers’ right to organize. The strikes signalled the growth of militant non-racial trade unionism, and in a wider sense a revived spirit of rebellion in the country.

There were links between the eruption of workers’ action and the underground liberation movements; the resurgence of Marxist thinking among a new generation came into play. There was however also, though this has sometimes been denied, decisive influence of the recently emerged Black Consciousness movements’ ideas. Of special importance was the links between activist intellectuals, who in different ways embodied South Africa’s 1968 moment, thinking in new ideological perspectives, and having tried out new methods of activism. Most significant here was the special political alliance, intellectual and personal friendship between Steve Biko and Richard (‘Rick’) Turner, a lecturer in political philosophy at the University of Natal, who held a doctorate on the political works of Jean-Paul Sartre, which he had completed at the Sorbonne in Paris. In the early 1970s Turner was a researcher into labour issues, and a community and labour organiser in Durban, deeply influenced by the French Left, including Althusserian readings of Marxism.

Turner’s and Biko’s philosophical and political ideas significantly shaped the massive strikes in Durban in the early 1970s and continued to impact on the resistance movement against apartheid in different ways throughout the 1980s. Biko’s radical emancipatory Black Consciousness ideology in conversation with Turner’s anti-capitalist notion of ‘participatory democracy’ provided a brief glimpse into the possibilities of another South Africa.

The murder of Biko while in police detention in September 1977, and the assassination of Turner a few months later, in January 1978 at his home in Durban were devastating for their families, friends and comrades. They were shattering too for the country’s politics of resistance, closing off new non-authoritarian radical forms of resistance. Biko’s (and Turner’s) imaginative power and creativity, and their reflection on alternatives to apartheid beyond the management of the state by the liberation movement in power remains a tremendous inspiration.

Heike Becker is a regular contributor to roape.net, she is an activist and writer. As a professor at the University of the Western Cape she teaches anthropology and writes on politics, culture, and social movements across the continent.

Featured Photograph: A poster produced to celebrate the Durban strike wave in 1973.

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For 50 years, ROAPE has brought our readers pathbreaking analysis on radical African political economy in our quarterly review, and for more than ten years on our website. Subscriptions and donations are essential to keeping our review and website alive.
We use cookies to collect and analyse information on site performance and usage, and to enhance and customise content. By clicking into any content on this site, you agree to allow cookies to be placed. To find out more see our