Growing African economies that will work for African people

African market
Women at an African market

Tanzania just announced that it will dump English as its official language in schools, opting for Kiswahili instead. This morning, I read this article that somehow appears to suggest that this is a bad idea.

I must say I disagree, and below I’ll try to explain why.

When the colonial powers came to Africa, one of the first things they did was to impose their own languages as the language of learning in their territories. France imposed French in the various west African territories it colonised, Portugal imposed Portuguese, Holland imposed Dutch and Britain imposed English and so on. This had the effect of dividing communities which were otherwise related. The overall effect was to stop any hope of large countries the size of the Democratic Republic of Congo from ever emerging out of Africa. It was divide and rule of the purest form. Fragmentation – a cruel tactic designed to tie the future of those then colonies forever to the colonial powers.

So the english taught was not necessarily to be a conduit of knowledge transfer that would empower the colonies as some people would have you believe. Instead, it was a move to make sure that schools produced compliant subjects which could easily be manipulated, and do the bidding of the colonial masters in Europe.

And that is reason enough in my view for Tanzania to change the official language to Kiswahili, because the motive of colonised Tanzania having to communicate in foreign languages was entirely driven by foreign interests.

Secondly, groups of people often associate and define themselves as an ethnicity on various terms, but one of the most common denominators, other than ancestry is language. You identify as Chewa because your parents are Chewa and they spoke Chichewa, they lived in the land of the Chewa, their village was in the Chewa belt. Therefore you are Chewa.

This is the norm, not the exception.

So as Tanzanians, the question which the above article answers is that Kiswahili is a unifying force in Tanzania. It holds together the people, even though they are made up of 130 different ethnicities.

So why then should they conduct their lives based on an imported language when they have a language of their own?

Who’s interests does having English as an official language of education ultimately serve?

Why teach in English when students could learn in their own African language? Are people not proud of being African?

If the US, Britain or Spain is unlikely to begin teaching their students in Nyanja or Kiswahili which are African languages, why is it somewhat acceptable or expected for Africans to teach their students in foreign languages?!?

In any case, shouldn’t Tanzania develop an economy that first and foremost works for Tanzanians (if you can allow me to temporarily step out of my usual Pan-African shoes), people who are citizens of a sovereign country?

In the above article, the author quotes Ahmed Salim, a senior Associate at Teneo Intelligence, a political risk consultancy that works with U.S investors, who makes what I consider to be a hopelessly narrow-minded point:

However, in terms of overall impact, the main challenge will be felt long-term when companies set up shop in Tanzania and are left with hiring staff that are either bilingual Tanzanians or from neighboring Kenya or Uganda. This will somewhat hinder Tanzania’s competitive advantage in the future.”

Now, I’m not saying they should stop teaching English altogether, or that English isn’t an important international language. That’s not what I’m saying. Instead the argument for English is tied to this over-emphasis on foreign investment (money coming from the outside of Africa) to help and rescue Africans, to give them jobs and create an economy – as if Africans themselves couldn’t use their own resources to create economies that work for the benefit of African countries.

Tanzania has many natural resources including natural gas (See the following links Tanzania’s Natural Gas Reserves Almost Triple on New Finds ; Statoil makes another natural gas find offshore Tanzania ;  BG Group touts Pweza as its largest Tanzania gas find ). The country’s economy is growing at a rate of 7% which is quite high and above the international average. If those resources are utilised properly by the government of Tanzania for the benefit of the country’s citizens (as opposed to liberally auctioned-off to the highest corporate bidder) they could be a source of some serious economic development that would create jobs for young Tanzanians, investment into security, and used for infrastructure development, investment in Education, Healthcare and women’s issues.

That investment, derived from wholly Tanzanian owned resources, could be a serious game changer if utilised wisely.

But if some corporation is allowed to own a majority stake, or lions share of Tanzania’s Natural Gas resources, I can tell you now what difference it will make to the Tanzanian economy in the long run:

NONE.

The profits that corporation makes will be wired out of Tanzania to already developed and rich countries. Countries that needs the benefit of the resource much less, and that have billions in cash reserves to fall back on. And those profits will find their way into the fat pockets of already rich shareholders in those rich countries. Ultimately such funds will trickle down to contribute to the tax system of those already rich countries, benefitting their economies.

Meanwhile, poor Tanzanians already struggling with poverty, low incomes, unemployment, high cost of living, government corruption, who do not own property, poor healthcare in hospitals and the lack of medicines, no electricity in most areas, deforestation, poaching and lack of clean water in the villages will not have benefitted proportionately from such natural gas deals. Instead they will have to continue receiving handouts, breadcrumbs from aid organisations – when their country possesses the natural resources that could be used to create wealth for them…all just because of greed of some corporations

How absurd and stupid is that?

So the scare mongering self-serving attitude against Tanzania choosing to teach their students in Kiswahili is wrong, It’s anti-African and I vehemently disagree with such dishonest views.

Africans and other developing countries have been stamped on for too long. We must end this corporate driven theft and madness and begin to create economies which are designed to serve and benefit us as Africans, just as others have been building economies to benefit their own economies, and their own people.

Wall Street isn’t happy with us

This article, a blog post by Senator Elizabeth Warren titled Wall Street isn’t happy with us is interesting and reveals the kind of greedy system the free world is up against. These people care only for profit…and sadly they have too much influence and control over the financial markets and capital that their decisions can affect things.

I’m very much inclined to replicate Senator Warren’s words on this blog:-

In 2008, the financial sector collapsed and nearly brought down our whole economy. What were the ingredients behind that crash? Recklessness on Wall Street and a willingness in Washington to play along with whatever the big banks wanted.  

Years have passed since the crisis and the bailout, but the big banks still swagger around town. And when Citigroup and the others don’t quite get their way or Washington doesn’t feel quite cozy enough, they quickly move to loud, public threats. Their latest move is a stunner. According to Reuters:

Big Wall Street banks are so upset with U.S. Democratic Senator Elizabeth Warren’s call for them to be broken up that some have discussed withholding campaign donations to Senate Democrats in symbolic protest, sources familiar with the discussions said.

Citigroup has decided to withhold donations for now to the Democratic Senatorial Campaign Committee over concerns that Senate Democrats could give Warren and lawmakers who share her views more power, sources inside the bank told Reuters.

JPMorgan representatives have met Democratic Party officials to emphasize the connection between its annual contribution and the need for a friendlier attitude toward the banks, a source familiar with JPMorgan’s donations said.

That’s right, the biggest banks on Wall Street have made it clear that they expect a return on their investment in Washington. Forget making the markets safer (where they can still make plenty of money) and forget the $700 billion taxpayer bailout that saved them and forget the need to build a strong economy for all Americans. Forget it all. The big banks want a Washington that works only for them and that puts their interests first – and they would like to get a little public fanny-kissing for their money too.

Well forget it. They can threaten or bully or say whatever they want, but we aren’t going to change our game plan. We do, however, need to respond.

According to this breaking news, our 2016 Democratic Senate candidates could lose at least $30,000 because of this decision. Can you help us raise $30,000 to match Wall Street’s money right now – and keep fighting for a Democratic Senate that will work for people instead of big banks?

Now let’s be clear: $30,000 is a drop in the bucket to JPMorgan and Citigroup. Heck, JPMorgan CEO Jamie Dimon makes more than $30,000 in just a few hours.

The big banks have thrown around money for years, spending more than a $1 million a day to hold off Dodd-Frank and the consumer agency. But they are moving out of the shadows. They have reached a new level of brazenness, demanding that Senate Democrats grovel before them.  

That kind of swagger is a warning shot. They want a showy way to tell Democrats across the country to be scared of speaking out, to be timid about standing up, and to stay away from fighting for what’s right.

Ok, they have taken their shot, but it will not work.

I’m not going to stop talking about the unprecedented grasp that Citigroup has on our government’s economic policymaking apparatus. I’m not going to stop talking about the settlement agreements that JPMorgan makes with our Justice Department that are so weak, the bank celebrates by giving their executives a raise. And I’m not going to pretend the work of financial reform is done, when the so-called “too big to fail” banks are even bigger now than they were in 2008.

The big banks have issued a threat, and it’s up to us to fight back. It’s up to us to fight back against a financial system that allows those who broke our economy to emerge from a crisis in record-setting shape while ordinary Americans continue to struggle. It’s up to us to fight back against a regulatory system that is so besieged by lobbyists – and their friends in Congress – that our regulators forget who they’re working for.

Let’s send the biggest banks on Wall Street our own message: We’re going to keep fighting, and your swagger and your threats won’t stop us. Help us match their $30,000 right now.

They represent everything that is wrong with capitalism, their behaviour is contemptible…and the words of Senator Warren proves it.

Frankly, after the 2008 credit crisis which has affected economies across the world, and hurt those at the bottom of the economic pyramid – almost everywhere, the world doesn’t need charlatans like these banks. If you can, please support Elizabeth Warren’s campaign because she is one of only a few legislators who are genuinely working for the people.

Finally, if they have the brazeness to treat the American people with so much contempt, after receiving a $700 billion bailout package from them, how do you think they (and their institutions) will treat Africans, and African governments?

Germany is trying to build the next Silicon Valley

http://www.businessinsider.com/germany-is-trying-to-build-the-next-silicon-valley-2015-3

This article is interesting.  Germany recognises what role a government should play in fostering a climate in which entrepreneurship can thrive. I’ve encountered many views on this, and from my own experiences with SMEs have formed parallel if not views that are convergent with those expressed in this article.

Unlike most African countries, Germany has a stable and dependable communications infrastructure which means people have affordable access to information and can communicate at reasonable cost – which is important when incubating new companies. In addition,  Germany has a dependable transport network (You can easily get to Germany’s regional cities from most major cities across the world ) which means entrepreneurs can travel easily when they need to – and at a reasonable cost. And finally Germany has reliable power supply.

Further,  there are many facilities in the form of business centres and institutions where newly formed companies can find cheap office space, in the early days when they are trying to minimise costs. To this add a supply of talent from good universities, and the availability of ample opportunities to be able to network with like-minded entrepreneurs. Looking at these factors alone the recipe for success is almost guaranteed, if it wasn’t for the constraints mentioned in the article above.
But assuming Germany did overcome those challenges, whether their industry would grow to match Silicon Valley is an entirely different question.

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However,  what our economies across Africa can learn from this is that to foster creativity and entrepreneurship in the IT sector,  these factors must be firmly addressed. In addition, there must be an increase in access to Venture Capital and our countries need to have functional property rights laws that work for both small companies and big companies. To this end, some lessons can be learned from Kenya, which is making incredible strides in the IT sector.

Part of the problem or Part of the Solution?

Remember my post on Boris Johnson, titled What Boris Johnson’s ‘Greed’ speech reveals about the rot in Politics‘, over a year ago, in which I argued that the mayor of London was part of the problem by virtue of a speech he gave in which he said Greed was good?

This video right here by Russell Brand makes a similar point, although not word for word, except this time its in relation to terrorism, and a whole loads of other things that cause extremism.

Please watch it …

 

My name is Louis Nthenda (a Malawi national, now aged 72 and living in Japan) the young black man talking to the girl inthe photo behind and to the right of Malcom X

My name is Louis Nthenda (a Malawi national, now aged 72 and living in Japan) the young black man talking to the girl inthe photo behind and to the right of Malcom X    (liberatormagazine.com)

Selling Malawi for Peanuts

In whatever we do as a country, we need to make sure that the development path we take should be sustainable for the inter-generational cause. Our generation inherited a beautiful country and as the current custodians of this land, it is our duty to safeguard the interests of current and future generations of native Malawians.

It is my belief that those who fought to extricate colonialism were driven with the fervent desire to see this country independent of foreign dominion that was British Imperialism. It is therefore our duty to honour the wishes of those who fought and died for our Malawi by making sure that native Malawians are the drivers of development in Malawi.

David Korten, one of the leading proponents of alternative development once wrote,

The survival of our civilization, and perhaps our very lives, depends on committing ourselves to an alternative development practice guided by the three basic principles of authentic development: justice, sustainability and inclusiveness-each of which is routinely and systematically violated by current practice‘.

Today, Malawi is slowly creating an economy which will become dependent on some foreigners who are only here on temporal basis to make a fortune. Native Malawians are slowly being excluded from many vast opportunities that this nation has to offer, and I believe that the development course taken today by us, will harm the interests of our children and future generations because of our shortsightedness.

The biggest issue that is worrisome in this country is the sale of lucrative land to foreigners. According to Watipaso Mzungu’s report in the Nation newspaper of 17th January, only 5 native Malawians own business land in Limbe. It is a sad development on our part because just about 3 decades ago, native Malawians owned lucrative land especially in the cities of Malawi.  At the rate we are going, native Malawians will end up being excluded in their own country because we only want to satisfy our current intra-generational needs. I am not saying that it is wrong for foreigners to invest in Malawi, but we need to exercise caution when prime land is being sold to foreigners without securing the interests of native Malawians. A good example is that of the conflict between the locals of Masasa in Mangochi and Mota Engil. The locals claim they were not consulted about the selling of their land by the government to Mota Engil. The traditional authority tried to coax the locals to give up their land to Mota Engil, a transnational corporation which has plans to build a 5 star hotel and golf course by the lake in Mangochi. In the end, the irate locals of Masasa fought with the T/A, councillor and the police which left 2 people dead and others seriously injured. These are the situations which are unsustainable for Malawi because we are ready to deprive our own people their lake which ancestors lived with for many generations. The 5 star hotel and golf course is a welcome investment but it should not be to the detriment of the locals at Masasa. I am sure the lake has many vacant tracts of land where this 5 star hotel can be built without displacing people. Development is about including a people’s livelihoods in projects which ensure that poor local communities are not excluded from benefitting from our natural resources.

Another worrying aspect of this land issue is that there are some unscrupulous chiefs who sell large tracts of valuable customary land to foreigners without securing the interests of future generations in their communities. Malawi has one of the most beautiful natural beaches in the world and there is need for us to limit and protect the sale of this land. The large swathes of land along Lake Malawi should be protected for our future generations’ livelihoods and investment opportunities. Future generations of Malawi might have the access to the much needed capital or funds to invest in these areas, and it is in our best interests that we preserve prime land along the lake shore. It would be very selfish of us to deprive our future compatriots of investment opportunities in their own country because of our ineptitude in prioritising national and indigenous interests. According to the Africa Conference on Land Grab’s research, over 55 million hectares of land in Africa has been “grabbed” since the year 2000. These land grabs are happening without any informed consent from development managers and thus millions of vulnerable communities in Africa are at risk of being displaced from their own lands.

Conflicts between Paladin the Australian mining company and the local people at the Kayelekera mining facility shows that Malawi is not ready to manage finite resources in a sustainable manner. Foreign investors scour the earth to find countries with surplus natural resources but with weak or ineffective environmental laws, because it reduces operating costs for firms.  Paladin has been mining uranium for years in Karonga but where do the proceeds go? Can anyone really point out any structure in this country that was built using proceeds from uranium mining? Uranium is a finite resource and if we are not careful, we will deplete our reserves with nothing to show for it. Once again, Malawians are handing out natural resources to the foreigner who will only continue to exploit us.

In the midst of conflicts between the locals and Paladin at Kayelekera, we hear that the government is busy employing foreign companies to explore the possibility of oil in Lake Malawi. Lake Malawi is a source of food and income for the poor living along the lake shore, and if there was to be an oil spillage, we risk the well-being and livelihoods of current and future lakeshore inhabitants. For centuries, our people have lived in harmony with this lake and it would be very selfish of our generation and our leaders to put others at risk because of our voracious greed. In terms of attraction for tourism, Lake Malawi is all we have. I’m sure no Malawian needs any reminder of what happened with Nyika National Park. If it was not for this lake, we would have no tourists coming to Malawi because Lake Malawi is the epitome of attraction in this country. I believe that oil drilling in Lake Malawi is not sustainable because oil is finite resource and also an environmental hazard that can destroy livelihoods and the lake’s Biodiversity. Lake Malawi provides 70 to 75 per cent of the animal protein consumed by both urban and rural communities. It would therefore be negligent for the government to sanction oil drilling in the lake which provides critical habitat for an amazing array of plants and animals including bacteria, fungi, algae, plankton, mussels, snails, crustaceans, insects, fish, amphibians, reptiles, birds and mammals.

When our leaders go outside of this country, they are always selling Malawi to the world as a place of investment opportunities. Indeed Malawi is a peaceful country which offers cheap labour and less competition for businesses, and it is therefore a haven for foreign investors. What we have to remember is that a foreign investor is seeking to make maximum profits, and the only way to do this in a host economy is by “cost reduction”. In Malawi, a lot of native Malawians employed by some foreign companies are being underpaid and exploited for monetary gains which sometimes do not even benefit our economy. A lot of our able graduates are languishing without jobs because some of our so-called investors only employ their relatives in top-tier jobs while Malawians are employed in low-tier jobs. Foreign direct Investment (FDI) is important in modern-day economics and plays the largest part in the growth of economies in a globalised world. However, when FDI is benefiting the foreigner than the host country, there is need to improve the structures to combat unscrupulous employers exploiting the weak and poor. There are a lot of foreign owned companies in Malawi who are exploiting the local personnel simply because our institutional governance structures are either weak or corrupt.  Malawians should not just be used for menial jobs only because we have educated people in this country who can fill up higher positions in foreign owned businesses.

We also have foreign investors who travel hundreds or thousands of miles away to invest in salons, clothes shops or other small enterprise trading entities. As much as Malawi needs investors, I doubt that these small trading entities are bringing any meaningful monetary gains for the country. If our trading partners in the West were following our pattern and forms of foreign investment, it is highly unlikely that their economies would have grown to astronomical heights. Malawi is a poor country that has a high unemployment rate and there is need to protect local entrepreneurs with small business enterprises. If foreigners monopolise the smallholder business market, the local Malawian entrepreneur is at risk of losing his/her business.

If we are to sustain development, native Malawians need to be the primary drivers of the economy and not the other way round. When we give licences or contracts to transnational corporations, Malawians should also be included in these processes to ensure accountability and justice. The Kayelekera mine is a good example whereby we are giving away our uranium to foreigners without any visible gain for the country. If we cannot get a good deal with foreign mining companies, it is not wrong for us to preserve our uranium for our future generations who might be in a better position to manage such resources. In this modern age of technological advancement, uranium plays an important part in the generation of energy. As our population grows, our hydro-electrical plants will not be enough to sustain Malawi and who knows, the future generations of this country might have the capability of setting up nuclear plants! It is therefore important for us to always think for our future generations because they too have the right to enjoy the resources this country has today.

All in all, I believe that we are the generation that is supposed to build a strong foundation for the house of Malawi, and if we fail, our future compatriots will inherit a broken country with little or no promise. And don’t be surprised if at that time, your”investors” all flee, and the country is thrown into chaos and violence.

Development is about continuity and the little we can manage to do in our lifetime is enough for others to carry on. If we do not have the capability to extract natural resources today, then there is no need for us to entrust our wealth with foreigners who are only here exploit our God-granted gifts. We cannot do everything in our lifetime.

Paja amati kuthamanga sikufika!

10 Reasons to Love Uruguay’s President José Mujica

The following article was originally printed on Counterpunch here

José MujicaPresident José Mujica of Uruguay, a 78-year-old former Marxist guerrilla who spent 14 years in prison, mostly in solitary confinement, recently visited the United States to meet with President Obama and speak at a variety of venues. He told Obama that Americans should smoke less and learn more languages. He lectured a roomful of businessmen at the US Chamber of Commerce about the benefits of redistributing wealth and raising workers’ salaries. He told students at American University that there are no “just wars.” Whatever the audience, he spoke extemporaneously and with such brutal honesty that it was hard not to love the guy. Here are 10 reasons you, too, should love President Mujica.

1. He lives simply and rejects the perks of the presidency. Mujica has refused to live at the Presidential Palace or have a motorcade. He lives in a one-bedroom house on his wife’s farm and drives a 1987 Volkswagen. “There have been years when I would have been happy just to have a mattress,” said Mujica, referring to his time in prison. He donates over 90% of his $12,000/month salary to charity so he makes the same as the average citizen in Uruguay. When called “the poorest president in the world,” Mujica says he is not poor. “A poor person is not someone who has little but one who needs infinitely more, and more and more. I don’t live in poverty, I live in simplicity. There’s very little that I need to live.”

2. He supported the nation’s groundbreaking legalization of marijuana. “In no part of the world has repression of drug consumption brought results. It’s time to try something different,” Mujica said. So this year, Uruguay became the first country in the world to regulate the legal production, sale, and consumption of marijuana. The law allows individuals to grow a certain amount each year and the government controls the price of marijuana sold at pharmacies. The law requires consumers, sellers, and distributors to be licensed by the government. Uruguay’s experience aims to take the market away from the ruthless drug traffickers and treat drug addiction as a public health issue. Their experiment will have reverberations worldwide.

3. In August 2013, Mujica signed the bill making Uruguay the second nation in Latin America (after Argentina) to legalize gay marriage. He said that legalizing gay marriage is simply recognizing reality. “Not to legalize it would be unnecessary torture for some people,” he said. In recent years, Uruguay has also moved to allow adoption by gay couples and openly gay people to serve in the armed forces.

4. He’s not afraid to confront corporate abuses, as evidenced by the epic struggle his government is waging against the American tobacco giant Philip Morris. A former smoker, Mujica says that tobacco is a killer that needs to be brought under control. But Philip Morris is suing Uruguay for $25 million at the World Bank’s International Center for Settlement of Investment Disputes because of the country’s tough smoking laws that prohibit smoking in enclosed public spaces and require warning labels, including graphic images of the health effects. Uruguay is the first Latin American country and the fifth nation worldwide to implement a ban on smoking in enclosed public places. Philip Morris, the largest cigarette manufacturer in the United States, has huge global business interests (and a well-paid army of lawyers). Uruguay’s battle against the tobacco Goliath will also have global repercussions.

5. He supported the legalization of abortion in Uruguay (his predecessor had vetoed the bill). The law is very limited, compared to laws in the US and Europe. It allows abortions within the first 12 weeks of the pregnancy and requires women to meet with a panel of doctors and social workers on the risks and possible effects of an abortion. But this law is the most liberal abortion law in socially conservative, Catholic Latin America and is clearly a step in the right direction for women’s reproductive rights.

6. He’s an environmentalist trying to limit needless consumption. At the Rio+20 Summit in 2012, he criticized the model of development pushed by affluent societies. “We can almost recycle everything now. If we lived within our means – by being prudent – the 7 billion people in the world could have everything they needed. Global politics should be moving in that direction,” he said. He also recently rejected a joint energy project with Brazil that would have provided his country with cheap coal energy because of his concern for the environment.

7. He has focusing on redistributing his nation’s wealth, claiming that his administration has reduced poverty from 37% to 11%. “Businesses just want to increase their profits; it’s up to the government to make sure they distribute enough of those profits so workers have the money to buy the goods they produce,” he told businessmen at the US Chamber of Commerce. “It’s no mystery–the less poverty, the more commerce. The most important investment we can make is in human resources.” His government’s redistributive policies include setting prices for essential commodities such as milk and providing free computers and education for every child.

8. He has offered to take detainees cleared for release from Guantanamo. Mujica has called the detention center at Guantanamo Bay a “disgrace” and insisted that Uruguay take responsibility to help close the facility. The proposal is unpopular in Uruguay, but Mujica, who was a political prisoner for 14 years, said he is “doing this for humanity.”

9. He is opposed to war and militarism. “The world spends $2 billion a minute on military spending,” he exclaimed in horror to the students at American University. “I used to think there were just, noble wars, but I don’t think that anymore,” said the former armed guerrilla. “Now I think the only solution is negotiations. The worst negotiation is better than the best war, and the only way to insure peace is to cultivate tolerance.”

10. He has an adorable three-legged dog, Manuela! Manuela lost a foot when Mujica accidentally ran over it with a tractor. Since then, Mujica and Manuela have been almost inseparable.

Mujica’s influence goes far beyond that of the leader of a tiny country of only 3 million people. In a world hungry for alternatives, the innovations that he and his colleagues are championing have put Uruguay on the map as one of the world’s most exciting experiments in creative, progressive governance.

 

Construction Sector Transparency Initiative (CoST)

Construction Sector Transparency Initiative (CoST) is an initiative recently launched in Malawi

Launching the CoST Malawi website, on Monday evening, Vice President of Malawi Saulos Chilima said that:

“I hope that respective governance structures, project implementing agencies and construction industry stakeholders will take this as an opportunity to demonstrate to the world that Malawi can be a shining example of good governance and prove to ourselves that it is possible to develop our country”

Chilima said he was committed to ensure that reforms incorporate CoST principles so that disclosures cover the whole value chain of construction activities in Malawi.

This is an interesting development in the construction sector in Malawi because as some readers will know, the Cashgate corruption scandal badly portrayed the construction sector in Malawi.

So one can only hope that the sector will fully embrace these reforms, because clearly there are advantages be realised.

However, lets look at the issue in a bit more detail.

According to CoST’s international website:

It is estimated that upwards of $4 trillion annually is lost through mismanagement, inefficiency, and corruption in public infrastructure – on average 10 to 30 percent of a project’s value. These losses have a negative effect on the quality, safety, and value of the built environment. Specific investigations have found much larger losses in some cases, including projects that were paid for but never built and projects that collapsed with injury and loss of life. 

In terms of inefficiency and mismanagement one can understand why the stakeholders would want better efficiency and management. It would reduce waste and introduce a greater level of safety.

But when it comes to corruption, I’m not quite clear why a sector that has struggled with endemic corruption for decades would suddenly want to reform itself, simply because it is being asked to publish details of the procurement process?

Let me put it this way, publishing the pre-contractual process could make it harder for corrupt officials to hijack the procurement of public contracts, but does it shut the door to corruption in procurement altogether?

Consider this scenario:-

Suppose a procurement committee had a preferred provider of certain services prior to publishing of a tender, by virtue of an inside secret agreement between officials, their boss, and this particular provider. A deal that would be of financial benefit to the members of that committee. What is to stop some members of that committee from secretly assisting the preferred provider to submit the strongest bid, one that fulfills all the conditions of the tender, and is likely to be the most attractive? What is to stop officials doctoring the process behind closed doors to ensure the preferred provider’s success? Especially if the help given, is given in secret?  What will guard against such a scenario?

I think it is more logical for certain checks and balances to be established as part of this initiative, to make it more ‘foolproof’. The Vice President Saulos Chilima must ensure that some additional measures are implemented in all public procurement dealings. For example, this initiative could go much further by demanding that no prior conscious contact whatsoever must have taken place between the members of the awarding committee, or an employee of the awarding body or ministry, and prospective bidders, when they knew a contract has been published. Further, to ensure that committees awarding contracts are formed from competent yet unconnected individuals, who do not work together, and have no social relationships, awarding committees should be made up of people from different sectors, who do not know each other, who do not work together, who are not part of the same social circles, who come from across the country, and who critically have declared their political support( i.e. they support different political parties). All this is important to make it harder for a conflict of interests to arise.

So as an example, if the Ministry of Natural Resources, Energy and Mining is considering publishing an invitation to tender for some goods or services it requires, an awarding committee could be made up of nine individuals:- two from the ministry itself, three from Civil Society Organisations, one ordinary member of the public, one from a religious organisation and two diplomats from different foreign consulars.

In my view, awarding bodies composed of such a makeup, although operating at a cost to the government, are highly unlikely to award contracts on political or regional lines, or in situations where a conflict of interest exists.

Further, while best practices can be imported from other CoST implementations across the world, the threshold in selecting successful bidders should be improved, so that only those with the highest rating, and strongest bids, as agreed by a large majority (at least 7 out of the 9) of the committee are awarded the contracts.

Finally, smaller players need to have their own categories, so that they are not disadvantaged merely by their size, when pitted against larger companies.

CoST Malawi is directed by a Multi-Stakeholder Group (MSG) that comprises representatives from:

  • Ministry of Irrigation and Water Development,
  • the National Audit Office,
  • Accountant General,
  • Director of Buildings,
  • Anti-Corruption Bureau,
  • Office of Director of Public Procurement,
  • Malawi Building, Civil and Allied Trades Association
  • Malawi Economic Justice Network,
  • Human Rights Consultative Committee,
  • Business Action Against Corruption,
  • African Institute of Corporate Citizens

All sounds good and well on the surface. Anyone can cobble together rhetoric and words that sound heroic and purposeful. But the implementation of this initiatives is what counts. The devil is always in the detail. In my view, the essential features  are not good enough. More needs to be done to prevent abuse of process like the scenario provided above.

Global Justice Now

http://www.globaljustice.org.uk/campaigns

Interesting website and community that has worthwhile campaigns worth looking at. I like their call to Activism which goes like this:

‘Global Justice Now is made up of a network of activists and local groups full of people like you who take action in their communities to challenge corporate power and the policies that cause poverty and inequality all over the world.

Whether it’s stopping water privatisation or unfair trade deals, campaigning by our local groups has been central to making sure the interests of ordinary people aren’t trampled by those of corporations.

Global Justice Now groups do creative street campaigning, lobby politicians, get media coverage and organise local events such as film screenings and talks.’

For the avoidance of doubt :

  • There are policies which some governments adopt which cause Poverty and Inequality. Having been born in a third world country, and having moved to Britain, and seen how deprived and disadvantaged people are treated here, having analysed and compared and contrasted… having observed and learned ‘how the world works’ I know this is true.
  • Similarly there are policies that worsen poverty and make escaping the debt trap much harder.
  • There are corporations out there trampling on poor people, and whose chief motive is the generation of as much profit as possible above all else. These are the kind of companies which are happy to have ‘tax arrangements’ in tax heavens hiding hundreds of billions, while the public purse suffers; with the result that poor people, including single parents, the disabled, old people, the unemployed and other disadvantaged groups are subjected to an austerity onslaught that worsens their situations even further. In a week where Britain’s Labour leader has been unfairly criticised by tax-avoiding business moguls, let me get this one point absolutely clear. Most Activists are not in favour of communism, or anarchy or an end to free market capitalism. Thats not what they want. The main contention of most activists is that the current system is not working for the majority, simply because it’s increasing inequality, and has given a license for certain sectors (banking, corporations) to abuse the public trust. With the government acting like a trafficker in the middle, facilitating the abuse. Thus, in my own case, I’d favour RESPONSIBLE CAPITALISM that has humane socialist elements in it. Elements that allow businesses to make money, but that sufficiently protect disadvantaged and poor; that protects the voiceless, and helps them become resourceful. Not the current system which attacks, demonises and victimises innocent people, and which ironically, works so hard to keep them in poverty. In other words why don’t we have a ‘do unto others as you’d like to be done unto’ system.
  • There are certain corporations who in concert with selfish, corrupt and greedy politicians create a toxic combination that leads to death, violence, crime, poverty and much suffering. Again, if in doubt ask any better-informed African.

Global Justice Now must be supported and commended for the hugely important work they are doing.

 

Zambia gov’t in talks with mining firms over sharing of mineral wealth – Xinhua | English.news.cn

http://news.xinhuanet.com/english/africa/2014-12/31/c_133890430.htm

Ok, so we’ll shut down the mine because of an 8% tax????!
Can you see how absurd that sounds? Are they saying that they make 8% in profit? The huge profits mining companies make (which BTW are wired out of the country) are not fairy distributed in the country that owns the resource,  yet they make it sound as if they are doing Zambians a favour??? The very definition of Greed… in other words,  we’ve got a contract,  our priority is to make as much profit,  we don’t care about the consequences of our tax evasion,  profit shifting or unfair contract terms on Zambia. If we can’t make the maximum possible profit, it’s not worth continuing the operation. 

Let the Canadian mining company leave. Let the Zambian government nationalise the mine, and take control of it. There are many educated people in Zambia,  they can manage. It will give them increased income and will help poor people in Zambia. Let them create a cooperative and provide employment to people who want to help African countries,  unlike wasting time with such leeches who only care for profit…
Also, I wonder whether they would have left if it were the government of Australia for example which increased the taxes. A part of me thinks it’s partly a bias towards African governments who are often bullied into accepting unfair contract terms, to the detriment of their people…