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Neoliberalism in Africa, Apocalyptic
Failures and Business as Usual Practices
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George Caffentzis*
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We are not blinded by the moral reparation of I have been asked to speak about Neoliberal theory and its impact on
Africa, especially its political implications. Given the time constraints
I cannot go into the explanation of why neoliberalism replaced Keynesianism
in the late 1970s and early 1980s as the hegemonic economic paradigm in
the US and Europe. I will merely start medias res and give some defýnitions
of neoliberal theory and its typical policies, then I will go on to discuss
its impact on Africa in the last two decades. Neoliberal theory is the elaboration of a simple assumption: all human
activity is always already a commodity and the best way (leading to the
greatest satisfaction possible ) is to organize these activities through
a market. Some activities are already recognized as commodities (waged
labor), but the theorists of neoliberalism argue that much activity that
had previously been considered ''inalienable''-like child-bearing, love
making, health care decisions concerning organ transplants, leaming and
research, voting, and artistic work are really actions that are (in a
hidden way) and should be considered as of income-bearing activities.
The True, the Good, the Just, the Beautiful and every other capitalized
ideal become, in the neoliberal gaze, the many veiled form of the Commodity.
That is why opponents of neoliberalism have justly summarized their position
in the slogan, ''This World is Not for Sale!'' Neoliberal policies are ones that apply the basic assumption of neoliberal
theory to the social realm. A typical example of such policies are the
user-fees clauses of World Bank Structural Adjustment Programs (SAPs)
that require govemments to charge fees for the use of health care, education
and water ''services'' to the citizenry. Similar neoliberal policies now
have familiar acronyms like TRIPS (Trade Related Intellectual Property
Rights) and GATS (General Agreement on Trade in Services) for they put
the products of mental activities and the human behaviors that could be
qualified as "services'' into the framework of commodities and require
that they be offered on a market open to all (with the emphasis on all)
bidders. So literally every spoken sentence could be copyrighted and every
caress could be bid for. The logical conclusion of these policies is to apply commodity logic
even in fields where moral or psychological ''prejudices'' have so far
barred its application (Posner 1992). The Nobel Prize winning economist,
Gary S. Becker, is the epitome of a neoliberal economist and he summarizes
his approach as ''the combined assumptions of maximizing behavior, market
equilibrium and stable preferences, used unrelentlessly and unflinchingly''
(Becker 1976: 5). Hence an ideal neoliberal program would transfer almost
all social decision making onto individual ''consumers'' with a variety
of "budget constraints" competing on the market for a variety
of products and services open to all bidders. 1. In this talk I will show why African political economy has been more
debilitated by the introduction of neoliberal policies compared to the
rest of the Third World. Their policies have constituted a literal apocalypse
in the last twenty years in Africa. I will also reflect on the political
meaning of these consequences for a movement that is in opposition to
neoliberalism. Since the early 1980s there has been a continuous attempt by the World
Bank, the IMF and increasingly the G7 to introduce neoliberal programs
to ''solve'' the problems of the African economy. From the recommendations
of the Berg Report in the early 1980s, to the Structural Adjustment Programs
of the mid-1980s to the mid-1990s, to the Heavily Indebted Poor Country
(HIPC) and Poverty Reduction Strategy Papers initiatives of the late 1990s
and the early 21st century each of the neoliberal ''solutions" have
failed and failed again. These failures have left African countries and peoples with an apocalyptic
situation in terms of the indices of the quality of life (from falling
longevity, collapse of wages to increasing illiteracy). For example, Sub-
Saharan Africa has suffered a decline in longevity since the Iate 1980s
similar to the one suffered by Russia. As the editors of African Agenda
point out: *Life expectancy declined in no fewer than 31 African countries between
1995 and 1998. Indeed, whatever one's view about the causal connection between HIV infection
and AIDS, if one grants that there is a social correlation between them
then there is truly an apocalyptic situation in that swath of Africa (almost
from the Cape to Cairo) between South Africa and Ethiopia where there
are the following percentage of people, age 15-49, infected with HIV:
Botswana 36%; Swaziland 25%, Zimbabwe 25%; Lesotho 24%; Zambia 20%; South
Mrica 20%; Namibia 20%; Malawi 16%; Kenya 14%; Mozambique 13%; Burundi
11%; Rwanda 11%; Ethiopia 11%; Uganda 8%; Tanzania 8% (Philips 2000: A3).
In effect, agencies like the World Bank are literally writing much of
Africa out of existence along with hundreds of millions of Africans. (Indeed,
while appearing to be concerned about the plague, the World Bank is attempting
to monopolize the Ýnternational funds earmarked for AIDS in Africa.
) Even in terms of the purely economic variables that charted the offýcial
problem--debt--and the offýcial solution--increased exports and
inflow foreign direct investments-these neoliberal policies have been
resounding failures. SAPs were supposed to lead to a reduction of debt
by structurally adjusting African economies so that they would export
more and attract more foreign investment. A few statistics can clarify
the failure to accomplish these goals. Instead of decreasing the debt
burden, the era of SAPs had led to a 400% increase in debt (to $230 billion)
since 1980, so that as of 1996 sub-Saharan Africa had a higher debt as
percentage of GNP than any other major Third World region with Sub-S.aharan
Africa's at 73% while Middle East and North Africa's 36%, East Asia and
Pacific's 36%, Latin American and Caribbean's 34% and South Asia's 30%
(Fischer 2001) (African Agenda 2000). The era of SAPs has also witnessed a decline in the share of exports
or African countries. This has been especially pronounced in the 1990s
when there has been a dramatic increase in world exports from about 3.5
trillion in 1990 to 6.5 trillion US dollars in 2000 (about 85%). Although
there was a nomýnal increase in exports of about (35%) the share
of exports from African countries fell dramatically from 2.35% Ýn
1990 to 1.78% in 2000 (UNCTAD- on-line 2002: Table 1.1). Another yardstick of failure is in foreign direct investment (FDI). Although
there was a increase from $4 per capita of FDI which flowed into Africa
in 1990 to $11 per capita in 2000 this should be put into a historical
context for FDI literally exploded in this decade. In developed countries
the FDI which flowed inward went from $196 per capita to $1,126 while
even the world per capita FDI inward flow leaped from $41 to $210 in this
decade. That is, while developed countries and world FDI per capita inflow
increased by five times, the African inward FDI increased less than three
times and the absolute amount remained the lowest for all regions on the
planet (UNCf AD- on-line 2002: Table 4.4). If African economies performed so poorly, in such an unprecedented period
of increase in trade and FDI, then one can only declare that its ruling
economic policy is to blame, especially when this policy was to get its
egitimacy from its claim to reduce debt, increase FDI and export shares.
Notwithstanding these failures, the neoliberalism policies are still being
recommended, demanded and imposed on African governments. Why? in order
to effectively stop this banal insistence on apocalyptic failures we must
first understand what is the force behind it. 2. The explanation for this continuing insistence on failed policies
have been many. One of the most interesting and provocative was Susan
George's, for example, in her co-authored book, Faith and Credit, in the
mid-1990s where she ironically argued for a sort of theological one. Neoliberalism
had become a secular religious doctrine for the officials of the IMF,
the World Bank and the G7 (George and Sabelli 1994). Consequently, its
actual empirical success or failure had become irrelevant, even though
millions of people were suffering. From this perspective, Margaret Thatcher's
"There Is No Alternative" (or TINA) was similar to the exclusionary
commandments of the monotheistic religions. So the World Bank and IMF
become something like the Vatican of the neoliberal church. Since the Enlightenment, however, a healthy skepticism to religious explanations
of behavior has grown, for these explanations tend to take the viewpoint
of the believers as definitive. We no Ionger take the word of the Pope
as explanatory of the behavior of the Catholic Church, for example. This
skepticism also applies even to the ironic use of such explanations. Can
we take the "faith " of Wolfensohn to neoliberal fundamentals,
however earnestly believed, as explaining the path of the World Bank?
This is especially true if we recognize that ''failure" itself is
ambiguous. There are failures and failures. Some kinds of failures are
simply irrelevant to the problems they are meant to solve. For example,
one's car does not start and the mechanic believes it has to do with the
electronic anti-theft device. S/he replaces the devise at great expense,
but still no motion. It is only after looking at the battery and discovering
that the leads are corroded that s/he sees that the source of the problem
and that the previous efforts were failures because they were irrelevant
to solving the real problem. On the other side, there are failures that actually aggravate the problem.
The failures of neoliberalism have been of the latter kind. For example,
at the very start of the AIDS pandemic in the early 1980s the World Bank
and IMF SAPs called for reduction of government funding in public health
initiatives and the introduction of fee-based system of health care in
societies that were suffering a dramatic fall in their wages and/or prices
for their food crops. The neoliberal model of public health as a collection
of individual decisions concerning one's own health translated onto a
health-care providing market inevitably led to a virulent AIDS-genic environment
The macro disease-vector of SAPs created the foundation of the epidemic.
This is not just a failure, it is an aggravated failure. A similar point can be made concerning the impact of neoliberal policies
on food export prices. One of the main imperatives of neoliberal policies
in agriculture is to shift production from subsistence crops or crops
for domestic market consumption to export crops. One of the favorites
in Africa was cocoa. Within a short time many governments throughout Africa
were being urged to incentivize cocoa production for the world market.
At first there was a slight rise in prices in the early 1980s but between
1986 and 1993 the price of African cocoa collapsed about 60% according
to the UNCTAD Trade and Development Report (quoted in African Agenda 2000:
24). Undoubtedly, there are many reasons why prices fluctuate, but there
is no doubt that the increased number of farmers incentivized in the period
before 1986 to turn to cocoa farming inevitably glutted the market and
drove the price down precipitously .This should have not been surprising,
since such a result would have been an elementary conclusion from anyone
versed in introductory economics. ( 1 ) 3. In this presentation I argue that the apocalyptic failure of neoliberalism
in Africa is actually planned and reminiscent of the paleo-liberal strategy
of the British state in the famines in Ireland and India and the Clearances
of the Scottish Highlands in the 19th century.(2) (Perhaps a position
George takes in her later Swiftian satire, The Lugano Report (George 1999)).
These policies were seen as ways to transform societies and peoples resistant
to being productive of capital (even though they were very productive
of life). In other words, the object of neoliberal policies is to commodify
the natural resources, labor and social organization of Africa and make
it directly productive for the interests of the former colonial powers.
Such transformations, of course, are driven by the Four Horsemen of the
Apocalypse spreading starvation, war, plague and death. When we hear talk
of irenic ''market forces" we must recognize the violence that creates
and sustains these markets.(3) 4. We can see this devastation in terms of the institutions of the land
and the mind in Africa. One of the key elements of neoliberal policies
is to turn communal land given over to subsistence into "private''
property at whatever cost. This ''Great Transformation'' or "New
Enclosure'' has been essential for all previous cycles of capitalist development
and, if there was to be growth and consistent profitability in Africa,
communalism and subsistence agriculture must be ended with prejudice (Federici
1992). It so happens, however, that Africa is the region of the planet
that subsistence agriculture and communal property had its most extensive
roots, and since the end of direct colonialism, has even expanded. Therefore,
neoliberalism systematically appllied with the force of the state behind
it would have its gravest consequences in the invaluable "entitlement"
rights to food in a regime where these rights were justified on the access
to land through communal times (Sen 1981 ). It would inevitably produce
a crisis of social reproduction whose causes one must trace in the often
invisible struggles of women and unwaged indigenous peoples resisting
the total imposition of the commodity form on their lives ( since such
an imposition would drive them out of existence ) (Caffentzis 1999) It is here that the neoliberal theory of the rational individual choosing
to maximize his/her utility has its most problematic consequences. Robert
Bates has made his career out of applying the essence of neoliberal theory
to African ''peasants" in the face of those who have claimed that
African have values that are somehow anthropological curiosities. There
is not doubt that African rural farmers are prudent and resourceful in
their efforts.(4) But, contra Bates, prudence and resourcefulness does
not make one a homo economicus , embracing the laws of the market as if
emanating from the gods only to be thwarted by governmental policies (Bates
1983: 107-133). On the contrary, it would be unreasonable for African
farmers not to resist having to pay rent on lands which they consider
their own, or having to repay loans which they did not contract, or having
to settle for wages not even sufficient for subsistence (Caffentzis 1995:
17). In fact, given their situation, it is quite rational for African
farmers (especially women) to show a preference for communal networks
of production, far from being sentimental throwbacks to pre-modern modes
of production, they are often the only guarantees they have of subsistence.
In other words, they constitute a real use-value wealth that is not easily
turned into exchange value. 5. Neoliberalism's consequences for the institutions of the mind in Africa
can be seen in the devastation of the post-colonial university systems
which were literally created ab novo after the departure of the colonialists.
The neoliberal policies of the World Bank, for example, have consistently
attacked the access of the higher education of the working class youth
of Africa by demanding that universities slash subsidies to students and
dramatically increase tuition fees. For the neoliberal vision of education
is one which sees it as a commodity like any other and therefore should
be paid by the consumer (Alchian 1977). It has resulted in a policy of
academic exterminism in the context of Africa that was fought against
by students up and down the continent between 1985 and today in hundreds
of strikes demonstrations and riots (Federici and Caffentzis 2000). By insisting on allowing funding only for basic education and demanding
dramatic defunding of universities two results inevitably have followed.
First, the quantity and quality of teachers in the primary and secondary
schools, who are taught in the tertiary level, is threatened. As I pointed
out a decade ago:
Second, the defunding of indigenous and autonomous research and development
in the natural and social sciences has meant that scientists, in order
to carry on their work, have to become hired hands in research projects
determined by the interests of multinational pharmaceutical companies
or private European or North American foundations (like the Rockefeller
Foundation). As a consequence, the national universities are no longer
in a position to protect the indigenous knowledge of the environment,
the body and mind in different countries of Africa, since their personnel
often cannot get any funding from their own state to do the research vital
for the people of the land (Caffentzis 2000b). 6. The theft of land and knowledge that is the aim of neoliberal policies
has been proceeding quite effectively under the aegis of neoliberal policies,
but it has been challenged from the youths seizing control of the oil
rigs on the Niger Delta to the hundreds of university student strikes
and demonstrations against Structural Adjustment in the cities across
the African continent. This is an anti-globalization struggle coming from
the "grass roots'' that has been going on since the mid-1980s, long
before the ''Battle of Seattle " in 1999 and the subsequent demonstrations
in Washington, Prague, Quebec and Genoa. Its story shows us that the movement
against neoliberal globalization is no the expression of a small minority
of well-to-do Europeans and America but rather has its driving force in
a life-and-death struggle against the apocalyptic consequences of business-as-usual
practices. 7. This explanation of the banal insistence on apocalyptic consequences
puts the question of negotiations in a crisis. How can one negotiate with
those who knowingly have incorporated the death of millions as an element
in their strategy and deny their obvious complicity? Theirs is clearly
a strategy of ''terror from above'' and poses a deep ethical problem.
The representatives of the G6B must take into account age-old adage, ''One
cannot negotiate with terrorists,'' simply because genuine negotiations
involve the recognition of the autonomy of the other after the end of
the negotiation But according to this analysis, the officials of the World
Bank, the IMF and the G7 are those who bargain on the basis of terror
and do not recognize the right of others to live outside the commodified
logic of neoliberalism. This puts the ones who call for negotiations with
the World Bank, IMF and G7 in an ethical predicament.(5) It is this dilemma
that had led to the Seattle tactic of attempting to blockade the illegitimate
meetings of those conspiring to carry on their devastating campaigns against
the peoples and the environment of the planet. It expressed the determination
not to let the decisions of these gatherings to be given the tacit approval
of social silence. At the very least, the protesters can say , ''Not in
my name! " and have put a good faith effort, supported by natural
law theory , to stop a crime that is taking place before . But since the
escalation of the state repression last year in Gothenberg and Genoa and
the subsequent post-September 11 change in the legal environment, the
blockade tactic has been put into crisis (Federici and Caffentzis 2001).
8. The illegitimacy of these gatherings, however, remain. This is especially
true of the G7. It is important to note that the govemments of the G7
comprise most of those that met in 1885 in Berlin to divide Afrýca
up for colonial domination without instigating conflict among the colonizers.
That is not the end of the similarity for, in effect, the G7 gatherings
since the mid 1970s have been annual traveling Berlin Conferences meant
to divide up the planet (without provoking war between the 21st-century
colonizers). The G7 is as illegitimate now as its Berlin predecessor was
in 1885. One wonders what would have happened to the "Scramble for
Africa " if there was a fýrm effort at the 1885 Berlin Conference
or at the 1889 Anti-Slavery Conference in Brussels (which led to the enslavement
of millions of Congolese) by the already growing anti-imperialist movement
to stop the meetings from taking place. We have gathered in Calgary to oppose this illegitimate gathering and
pose other demands and alternatives for the future of the G6B. in the
light of the apocalyptic consequences of neoliberalism in Africa supported
and impelled by the G7, these demands cannot be more of the same business-as-usual. It is not my place, of course, to speak for Africa or Africans. I can
merely put forth two related demands that have emanated from Africa that
have widespread support there--the end of the debt and the payment of
reparations for the thefts of colonialism--which might be able to mark
a radical change in history. The international debt of African countries has been used to impose the
neoliberal policies on African people, consequently, the elimination of
the debt will not only make it possible for African goverments to stop
the extraction of enormous amounts of social surplus to pay off the interest
on debt that has often been contracted to merely pay off interest On previously
contracted debt! The elimination of the debt will also liberate Africans
from the whip that has been used to impose neoliberal, structural adjustment
policies on them with the threat that refusal will lead to their removal
from the world economy . This demand has been voiced in many ways and by many organizations in
the last decade. It has had an impact on the IMF, the World Bank and the
G7 , of course. The HIPC initiative and the new Bush Administration turn
to "grants'' instead of "loans" has been the most obvious
reaction to the struggles that have put forward these demands. But these
have been reforms in order to be able to continue business-as-usual and
put off the day of reckoning. 9. The demand for reparations for the theft of life, liberty and property
during colonialism (which, by the way, is not an ancient phenomenon since
most of the countries of Africa were "decolonized" between 1960
and 1975) is increasingýy being voiced in Africa as well. This
demand, of course, is an even more demanding not only in tenns of the
fýnancial exchanges involved, but also in its political meaning.
From its perspective the true debtors at the beginning of the 21st century
are not the African nations and peoples but those corporations and nations
which profýted from colonialism. It therefore puts the conceptual
basis of the Jubilee 2000 campaign into question. But even more importantly,
with the help of history, it stands neoliberalism on its head. That is,
in response to neoliberalism's claim that every human activity and product
is commodifýable, then surely the unrecompensed labor, land and
lost opportunities of Africans under the various colonial regimes constitute
a commodifýable package that, compounded, would mean that the major
(and some minor) countries of the EU , at least ought to be bankrupt if
they paid. In other words, the reparations demand says, "OK, if you
want to start counting, then don't start in 1960 ,but in 1500. "
Thus, the reparations demand totalizes the premises of neoliberalism and
ultimately destroys them. The demand for reparations has not yet had consequences in the policy
. reforms of the World Bank, the IMF and the G7 .This is not surprising,
for the consequences of even an formal apology would make the German government's
repamtions tothe survivors of the death camps appear modest. But the radical
character of the demand's perspective and the inevitable claims that ''There
Is No Possibility" (TINPOT) should not deter us from putting the
demand for repamtions the fýrst on our agenda. 10. The repamtions demand is important because it makes it clear that the anti -globalization movement is not going to be appeased by the nugatory reforms of the neoliberal reforms nor by the apocalyptic rhetoric of the "war against terrorism." There is a real apocalypse with activated "weapons of mass destruction" going on right now that make the exploit of shoe bombers and suicide pilots, however horrendous, trivial in comparison. * Coordinator of the Committee for Academic Freedom in Africa c/o Department of Philosophy University of Southern Maine. NOTES Bibliography
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