Exploitation of Africa's Natural Resources

[robocop187]

M-A makes a good point... nationalization and privatization have generally had little impact, because either way the resources end up in the hands of the same elite groups, who manage them for their own benefit instead of the nation's benefit. Any company that wants to be involved has to cut a deal with those same elites.

It's an ugly reality but anyone who wants to change it has to face the prospect of massive interference in another nation's internal affairs... and, as J Wolfsberger says, of bringing brigades to the table, with all the political and financial costs that always involves.

Good morning all!!!! Great comments!! Appears that we all agree that a few greedy "haves" hoard profits from the "have nots". However I do not believe that we should give up on nationalization and privatization. Its current ineffectiveness is the result of a lack of middle-class presence- a solid body of productive citizens who realize their collective power to effect change in government and policy. This of course is a long term investment goal. At this point, the brigades Stan and J Wolfsberger call to bear reside in the international community. Key to successful employment of these brigades would be less focus on short term investment goals (business deals that only benifit a few African elites and foreign investors, band-aid fixes for wounds that really need turnicuits- these only perpetuate Africa's UNDERDEVELOPMENT) and more focus on fostering an environment where the middle-class will grow. As the Africa's people get stronger, the harvest of its natural resources will increase exponentially and drive costs down for the global community in the long run- a true win win situation!!!

[Dayuhan]

I do not believe that we should give up on nationalization and privatization.

Who is this "we" of whom you speak?

Investment policy and setting investment goals are the exclusive prerogative of the nation where the investments are taking place. Decisions on when and whether to invest are, in the West at least, up to private corporations. Neither are under control of the US or any Western government.

Any attempt to externally impose investment goals would have to include the elephant in the African foreign investment drawing room, China. What reason would they have to cooperate?

It would be lovely to see a middle class emerging across Africa, but if we're talking about building that into a foreign policy goal we have to first realistically assess our ability to make that happen.

When did it become our business to set investment goals for other countries... whoever "we" are meant to be in this case?

[bourbon]

Investment policy and setting investment goals are the exclusive prerogative of the nation where the investments are taking place.

This is true if the nation is not trying to receive or readjust a loan from the International Monetary Fund or World Bank. If they are trying to receive or readjust a loan, that prerogative can become a condition for structural adjustment.

[Dayuhan]

This is true if the nation is not trying to receive or readjust a loan from the International Monetary Fund or World Bank. If they are trying to receive or readjust a loan, that prerogative can become a condition for structural adjustment.

The ability of the IMF to enforce such conditions has always been questionable. Since the Chinese came on the scene offering loans and grants untied to domestic reforms that ability has been eroded even further. Chinese financing is of course directly tied to Chinese perceptions of their own interests, but that hasn't generally been a problem in coming to what might politely be called mutually satisfactory agreements with African elites.

The days when the IMF/WB clique could dictate policy to African nations are long gone. That may not be any great loss, as the attempts to impose policy were generally cheerfully distorted by African elites for their own benefit and the consequences for the populaces involved were less than wonderful, but it remains to be seen whether the new evolution will improve anything. I am not optimistic.

[M-A Lagrange]

The ability of the IMF to enforce such conditions has always been questionable. Since the Chinese came on the scene offering loans and grants untied to domestic reforms that ability has been eroded even further. Chinese financing is of course directly tied to Chinese perceptions of their own interests, but that hasn't generally been a problem in coming to what might politely be called mutually satisfactory agreements with African elites.

The days when the IMF/WB clique could dictate policy to African nations are long gone. That may not be any great loss, as the attempts to impose policy were generally cheerfully distorted by African elites for their own benefit and the consequences for the populaces involved were less than wonderful, but it remains to be seen whether the new evolution will improve anything. I am not optimistic.

This would be true if Hally Burton or Areva were not strategic industries and companies. If there was a complete cut between politic and economy. This is not the case...

Middle classes in Africa are facing a huge difficulty to rise, not because of external investors but because of domestic breaks. what economist call the Hyppo and Sheeta clash (Sheeta as the guepard, not the tarzan monkey). Old click, the Hyppo, do not want a middle class, the Sheeta, to emerge. Why?
Simply because youth in africa want stability, ROL, protective legal environment, fair taxes and is not willing to pay backshich. So,and I personnaly know some, as they cannot get this at home, and they try, they leave for a place where grass is for real greener: Europ, US, Asia...

[Stan]

M-A, Good points !
And just how do we even begin to turn around four decades of corruption at the middle-class level ? For years they have survived by innovating and cheating, making every cent count. I honestly can't imagine the DRC being able to turn off the last 40 years.

The huge military machines will not go down without a fight.

[J Wolfsberger]

M-A, Good points !
And just how do we even begin to turn around four decades of corruption at the middle-class level ? For years they have survived by innovating and cheating, making every cent count. I honestly can't imagine the DRC being able to turn off the last 40 years.

The huge military machines will not go down without a fight.

The obvious initial goal should be shutting down those military machines.

And as I started writing about the requirements for making that happen, and begin providing the kind of political environment M-A identifies as necessary, it became obvious what a gold plated bitch that effort would be.

Based on what I've read, especially from people who post here, at this time it seems as though "Heart of Darkness" was an optimistic view of sub Saharan Africa.

[M-A Lagrange]

M-A, Good points !
And just how do we even begin to turn around four decades of corruption at the middle-class level ? For years they have survived by innovating and cheating, making every cent count. I honestly can't imagine the DRC being able to turn off the last 40 years.

The huge military machines will not go down without a fight.

Well, if you first take all exCNDP to ICC then all the Mayi-mayi that are dummer than my @$s out... (May need some accidents having to happen...) You may have a pretty thine army that DRC gov can afford.

The trick in Rwanda and Uganda has been to convert all the idiots that lurk in the army into PMC watchmen. That would not work in DRC, that we both know. But there are solutions, many soldiers want a job, a real one with a pay at the end of the month that give them enough to eat, get drunk and send children to school. They actually do not want to stay in the army.

Same with South Sudan. people enter in the SPLA cause it's the only way to do business. But if you actually take out all the SPLA who are alcoolic then you end up with less than a handfull of good guys.

The problem of regime with huge armies in Africa is that they have it because they cannot afford either to have a good army or to buy peace spoilers. So they give them a title and the right to conduct illegal activities under the protection of a uniform.

[Dayuhan]

youth in africa want stability, ROL, protective legal environment, fair taxes and is not willing to pay backshich

Ironically that's also what the western multinationals want... ironic because so few people would expect African youth and western corporations to have overlapping interests.