For Africa, the Only Way Out is Self-Reliance

Huriy Ghirmai (RadioAfrica)

The much-awaited report by the Commission for Africa has finally come out. ‘Much-awaited’ indeed – that, as if it would represent the ultimate manual to extricate Africa from all its misery.

If you haven’t read the report, then, unless you are the curious type, don’t – the two-page introduction plus the summary would be quite enough! The document does not raise any fresh tips about the condition Africans find themselves in. Suffice to say that, bar a bit of dressing, it is a repeat of what has been said about our continent already. 

The main task of the CFA, according to the commission is “to define the challenges facing Africa, and to provide clear recommendations on how to support the changes needed to reduce poverty.” This, as it were, is the challenge of the CFA and the rest is a mere document.  

Although the commission, by its own admission, would like to come across as a body dominated by Africans, only eight of the fifteen commissioners are African. Amongst the rest, there are two seasoned British politicians (the current Prime Minister and Chancellor of the Exchequer) and a former rock star in Bob Geldof – a man much interested in living up to his reputation as brutally outspoken while lacking an understanding of what Africa is all about.  

And in this respect, it is all a case of Africa un-represented.  

  • The Status Quo will Stay 

While the CFA was hot in the news, I remembered an article I read in the Guardian last year. The article was about how UK’s Foreign Aid to poor countries hampers the drive of poverty reduction. A report by Greenwich University for War on Want, a UK based anti-poverty charity, had found that conditional aid upsets the development prospects of some of the poorest countries in the world because of donor countries insistence on privatisation of social and public services such as water and electricity, education and healthcare. Such tied aid paves the way for multinational companies to buy public institutions in poor countries and run them for profit. 

This happens despite the fact that once privatised, public and social institutions are known to provide scandalous level of service to the poor. What is more, many of the poor in these countries can hardly afford the charges at any rate and are put at a great disadvantage as a result.  

Alarmingly, aid from the British government through DFID and other aid institutions to poor countries is either withheld or completely cut off should governments in receipt of aid fail to comply with the conditions put forward. This has gone on before the CFA and it looks like it will go on in the future unless of course rich countries expend a genuine effort to address this power imbalance.  

  • The Case of South Africa 

Take, for instance, the case of South Africa; as a result of tied aid put together and supported by the UK government and its front groups in the form of aid institutions like DFID, poor peoples access to water in Johannesburg now depends on how much they can afford.  

The water in Johannesburg is partly owned by the British firm Northumbrian Water and its French parent Suez Lyonnaise des Eaux. As a direct result of the company’s withholding service for non-payment of bills, residents of Orange Farm and Phiri, the poorest districts in Johannesburg, were at one point forced to draw water from rivers. This led to an outbreak of cholera that infected over 100,000 people with 260 dead. 

Of course, the presence of Northumbrian Water and Suez Lyonnaise des Eaux in South Africa is made possible through the intervention of the British government via DFID in pushing for privatisation and public-private partnerships. In fact, writes George Monbiot of the Guardian, DFID gave a privatisation lobby group, the Adam Smith Institute, £6.3m for public-sector reform in South Africa in 2004 alone. 

South Africa is just one example. There are many more countries that have fallen victim to conditional aid; governments in poor countries that depend on international aid for providing even the most basic of services the majority of which are African are often taken advantage of in terms of being pressurized to accept policies they know very well will harm their people.   

Donor countries, through their agencies, are still forcing detrimental policies on aid recipient governments by tying aid to dodgy conditions such as water and electricity privatisation.  

  • Hidden Conditionality 

Many governments of donor countries insist that the bulk of the materials and services needed to deliver assistance be purchased from their own companies. 

For instance, 70% of the aid Italy and the USA – two of the G8 countries – disburse is spent on purchasing goods and services from companies in these countries. This incurs a procurement cost of up to $7bn a year – money that could be spent on reviving the economies in recipient countries. A report of the Economic Commission of Africa (ECA) found that 25 to 40% of aid value goes to buying goods and services from companies based in donor countries.  

And according to Emira Woods of Foreign Policy in Focus, of the $350 million pledged by the United States government to tsunami relief, $248 million has to be spent in buying materials and services from U.S. companies. That is the condition the US government has placed for its pledge! 

  • Justified Conditionality 

It is of course very important that irresponsible governments are not allowed to squander money given in aid. It is only fair that donor countries should insist on transparency and accountability as far as the use of development assistance is concerned. In fact, some level of conditionality may be required to make sure that some governments do not divert aid for other purposes such us financing wars. 

Examples of such reckless use of aid are seen in many countries in Africa. In this regard, donor countries should focus on such problems as opposed to working as lobbying bodies on behalf of multinational corporations to affect policies that harm Africans but benefit wealthy CEOs and shareholders in the West.  

According to the Stockholm International Peace Research Institute (SIPRI), between 1998 and 2003, Ethiopia and Sudan, two countries amongst the biggest recipients of international aid in Africa, spent over $4.3 billion on military between them (Sudan about $1.5billion and Ethiopia $ 2.8 billion).  

However, despite the fact that Ethiopia’s military spending is disproportionately high compared to what it spends on health, education and society in general, British aid to Ethiopia has been recently expanded to £145 million for 2004/06 compared to £44 million in 2002/03. The aid programme includes direct budget support for the Ethiopian government to spend as it wills. In light of Ethiopia’s rejection of the Boundary Commission decision that legally delimited the border with, aid from the British government may well be used for war. 

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This sort of donor/recipient relationship based on skewed power balance, as well as that which is focussed on nourishing dangerous projects of client governments, places Africa under the shackles of subjugation akin to slavery. In such circumstances, Africans cannot realise their destiny since their priorities are constantly made to subserve those of the rich countries who are increasingly looking to Africa as a mere source of raw materials. 

Until Africa comes to terms with the fact that the only way forward is to rely on itself, the picture of Africa and Africans as eternal beggars will never change – CFA or no CFA.