Wednesday, 14 August 2013
Application For Peace Revolution Regional Fellowships in Africa
Nigeria: A Country Too Corrupt To Be Given Aid Money
(By Michael Burleigh)
“It is at its most blatant, perhaps,in the oil industry, where 136 million barrels of crude oil worth $11 billion (£7. 79 billion) were illegally siphoned off in just two years from 2009 to2 011,while hundreds of millions of dollars in subsidies were given to fuel merchants to deliverpetrol that nevermaterialised.“
Nigeria is not quite the most corrupt country on earth.But according to Transparency International, which monitors international financial corruption, it is not far off — coming a shameful 172nd worst among the 2 15 nations surveyed. Only countries as dysfunctional, derelict and downright dangerous as Haiti or the Congo are more corrupt. In theory, Nigeria’s 170 million-strong population should be prospering in a country that in recent years has launched four satellites into space and now has a burgeoning space programme.
Frankly, we might as well flush our cash away or burn it for all the good it’s doing for ordinary Nigerians Moreover, Nigeria is sitting on crude oil reserves estimated at 3 5 billion barrels (enough to fuel the entire world formore than a year), not tomention 10 0 trillion cubic feet of natural gas. It also manages to pay its legislators the highest salaries in the world,with a basic wage of £1 22 , 000 , nearlydouble what British MPs earn and many hundreds of times that of the country’s ordinary citizens.
The oil industry is highly corrupt, with 13 6 million barrels of crude oil worth $1 1billion (£7 .7 9 billion) were illegally siphoned off in just two years from2 0 0 9 to 20 1 1 No wonder the ruling elite can afford luxury homes in London or Paris, and top-end cars that, across West Africa, have led to the sobriquet ‘Wabenzi’, or people of the Mercedes-Benz. Yet7 0 percent of Nigerians live below the poverty line of £1 .2 9 a day, struggling with a failing infrastructure and chronic fuel shortages because of a lack of petrol refining capacity, even though their country produces more crude oil than Texas. And that poverty is not for want of assistance from the wider world.
Since gaining its independence in 19 6 0, Nigeria has received $ 4 00 billion (£25 7 billion) in aid — six times what the U.S. pumped into reconstructing the whole of Western Europe after World War II. Nigeria suffers from what economists call the ‘resource curse’ — the paradox that developing countries with an abundance of natural reserves tend to enjoy worse economic growth than countries without minerals and fuels. The huge flow of oil wealth means the governmentdoes not rely on taxpayers for its income, so does not have to answer to the people — a situation that fosters rampant corruption and economic sclerosis because there is no investment in infrastructure as the country’s leaders cream off its wealth.
Nigerian police can often be easily bribed to look the other way in a country where corruption in Nigeria is endemic Corruption in Nigeria is endemic— from parents bribing teachers to get hold of exam papers for their children through clerks handed ‘dash’ money to get round the country’s stifling bureaucracy to policemen taking moneyfor turning a blind eye. It is at its most blatant, perhaps, in the oil industry, where1 3 6 million barrels of crude oil worth $ 11 billion (£7 .7 9 billion) were illegally siphoned off in just two years from 2009 to 2011 , while hundreds of millions of dollars in subsidies were given to fuel merchants to deliverpetrol thatnever materialised. Whether the country is ruled by civilians or soldiers, who invariably proclaim their burning desire to eradicate civilian corruption, itmakes absolutely no difference.
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The military ruled Nigeria between 1966 and 1979 and from 1 983 to 1999, but if anything, corruption was worse when they were in charge since they had a habit of killing anyone threatening to expose them. It is estimated that since 1960 , about $3 8 0 billion (£2 4 5 billion) of government money has been stolen — almost the total sum Nigeria has received in foreign aid. And that even when successive governments attempt to recover the stolen money, much of this is looted again.
In essence, 8 0 per cent of the country’s substantial oil revenues go tothe government, which disburses cash to individual governors and hundreds of their cronies, so effectively these huge sums remain in the hands of a mere1 percent of the Nigerian population. Political power is universally regarded as a chance to reap the fortunes of office by the ruling elite and its families and tribes. The most egregious example was President SaniAbacha, a military dictator who ruled in the Nineties and accrued a staggering $4 billion (£2 .5 8 billion) fortune by the time he died of a heart attack while in bed with two Indian prostitutes at his palace in the nation’s capital, Abuja, in 1 99 8 . Abacha’s business associates did nicely, too — one of them deposited £1 2 2 million in a Jersey offshore account after selling Nigerian army trucks for five times their worth. Publicoffice is so lucrative that people will kill to get it. Nigeria has 36 state governors, 31 of whom are under federal investigation for corruption. In one of the smallest states, a candidate for the governorship occupied by one Ayo Fayose received texts signed by the ‘Fayose MSquad’ — and it was clearthe ‘M’ was for ‘Murder’ when they stabbed and bludgeoned a third candidate to death in his own bed. By the end of its term of office, the British Government will have handed over £1 billion in aid toNigeria. Given the appalling levels of corruption in thatnation, this largesse is utterly sickening — for the money will only be recycled into bank accounts in the Channel Islands or Switzerland. Frankly, we might as well flush our cash away or burn it forall the good it’s doing for ordinary Nigerians. ( source :Dailymail)
Monday, 12 August 2013
IFC Ramps Up Work in Morocco, Helping Drive Economic Growth
AFRICAN MAIL —IFC, a member of the World Bank Group, has doubled its investments in Morocco during the last year, supporting the growth of the country's private sector and helping create jobs.
During the 2013 fiscal year, which ended on June 30, IFC committed around $272 million in the country, up from $138 million in the preceding 12 months. Those investments were designed to bolster the financial sector, allow Moroccan companies to expand into new markets, and provide young people with the skills they need to find jobs. At the same time, IFC ramped up its advisory work, helping companies conserve resources, combat climate change, and resolve commercial disputes quickly.
“Morocco has tremendous economic potential, and the best way to unlock that is by supporting business, both large and small,” said Joumana Cobein, IFC’s head of the Maghreb region. “At a time when governments across the region are tightening their belts, the private sector must drive growth.”
To support that process, IFC and two funds managed by the organization invested $204 million in Banque Centrale Populaire. The investment will help the bank lend to a greater number of small businesses and allow it to expand into Sub-Saharan Africa, where many entrepreneurs struggle to get credit.
During the last year, IFC also invested $7 million in the Hautes Etudes de Management, helping the business and vocational accept more students, including those from low-income households. As well, IFC is spearheading a nearly $400 million facility that will provide loans to small business across the Middle East and North Africa, including in Morocco.
The organization is also working with a local partner to show companies how they can save water, reduce waste, and limit greenhouse gas emissions.
Teams are helping businesses improve their corporate governance and internal controls, which are vital for attracting investors. At the same time, IFC is supporting the practice of judicial mediation, which allows companies to settle commercial disputes quickly and amicably, outside of the court system.
IFC has also worked with one of the country's largest microfinance institutions, Fondep, to help mirco, small, and medium enterprises access credit.
The projects are part of a country-wide effort by IFC to support the private sector and drive economic growth. Since 2010, IFC’s investments in the country have increased almost 15-fold.
About IFC IFC, a member of the World Bank Group is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit www.ifc.org.
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Severe drought taking heavy toll in northern Namibia
Egypt Protesters Remain Despite Dispersal Threats
Kenya Airways puts loss from fire at $4m
Saturday, 10 August 2013
Africa’s Drinking Problem: Alcoholism on the Rise as Beverage Multinationals Circle
In Kenya,depending on whom you ask, John Mututho is either a hero or a villain, but in a country consuming ever more alcohol, he is certainly a household name. In 2010, Mututho won a battle with the beverage industry to implement Kenya’s first alcohol control act. It is known as “the Mututho law,” and honors his brother, who died as a result of alcoholism. After his brother’s death in 2007, Mututho dedicated himself to the issue with a focus and vigor rare in Kenyan politicians pursuing social goals. But instead of being celebrated, Mututho was punished. In the following elections this year, he didn’t even win his party ticket. A Nairobi social worker who focuses now on mopping up the damage of alcoholism, he chuckles fondly as he tells me this story, as if it encapsulates his country today. “Do we drink because we’re Kenyan or are we Kenyan because we drink?” he ponders. “That is the question.”
His concerns are not limited to Kenya. Africa has a drinking problem. It is the new darling of multinational beverage companies looking to drive profits in an increasingly booze-saturated world. The continent has the perfect emerging market conditions: a relatively small amount of commercial alcohol is being consumed; there is a rising middle class with disposable income; a huge market of young people is about to come of age; and there is an informal “moonshine” sector, up to 4 times the size of the commercial market, that governments would like to control.
But Africa is in no shape to cope with an influx of alcohol. Primary healthcare providers aren’t equipped to deal with the health effects. There is little or no recourse for irresponsible acts like driving while intoxicated. Chronic corruption means every new control measure is an opportunity for police to solicit bribes. While average per capita consumption figures (excluding South Africa) are very low, Africa has the highest proportion of binge drinkers in the world: 25% of those who drink, drink too much, according to the World Health Organization. Beverage companies dismiss that figure as poorly-sourced, and certainly the problem is under-researched.
Then there are the problems of demographics. The “youth bulge”—where a large share of the population is made up of children and young adults–helps ensure that many young drinkers are going to be unemployed. And the alcohol industry’s goal to get moonshine consumers drinking commercial brews is, according to critics, just a different version of the same problem.
One of the most vocal of those critics is Bill Sinkele. A former alcoholic originally from the U.S., he has worked for 18-years with some of Kenya’s most marginalized groups, from prostitutes on the coast to alcoholic kids in the capital’s slums. He has just concluded research in Kenya for the World Health Organization that shows underage drinkers know what brand they’ll drink well before they hit the legal drinking age of 18. “The alcohol industry is prepping these kids!” he says. Billboards in the capital Nairobi present the “Snapp Sisters,” three shimmering women who look like a young Destiny’s Child drinking Snapp, a sugary apple-flavored alcopop. The advertisements are aimed at women, a group in which, according to Sinkele, alcoholism is rising alarmingly.
Governments are starting to address the issue, not least because it could damage their growing economies. Twelve percent of those aged between 15 and 24 are hooked on alcohol, Kenya’s President Uhuru Kenyatta announced at the country’s second alcohol and drug abuse conference in June. He says the country faces a critical challenge. But there is a disconnect between policy and implementation. Members of the audience at the conference took turns to stand up and berate a senior police officer following a panel discussion. According to industry delegates, alcoholism, protection rackets, and the fallout from 24-hour drinking “canteens” are all problems that exist within the Kenyan police force. If that’s the case, they argue, what hope is there for implementing laws? The debonair officer was unruffled: “If our officers are doing that and you’re not letting their bosses know, then you’re not assisting,” he said.
One of the things Sinkele finds most astonishing is that multinational companies are getting tax-breaks for selling beer to people on the breadline. While governments in the West are considering minimum pricing standards for alcohol, in nearly a dozen countries across Africa, amidst soaring food prices, governments are applying tax-breaks to booze, which, according to the World Health Organization, kills more people than AIDS or tuberculosis. ”It’s better assisted suicide,” Sinkele says.
In Kenya, multi-national beverage company Diageo’s second-best selling beer, Senator Keg, is served in 300 ml servings for 25 shillings (around 30 cents). The company, which reportedly controls a staggering 97% of the beer market, until June enjoyed a 100% tax exemption on Senator to keep it cheap. “This gave consumers a safer alternative to unregulated and bad quality brews which often lead to fatalities,” Diageo’s Group Corporate Relations Director Brenda Mbathi says. Sinkele says the new Government realized the tax break was nonsensical, which is why they rescinded it.
Deflecting allegations of exploitation, companies are operating a host of social enterprises, which also secure large tax-breaks. SABMiller, one of the world’s largest brewers, has pioneered “Impala,” the first beer made from cassava, a tough, drought-resistant root grown across Africa that boosts local economies. SABMiller says the product was designed to compete with illicit alcohol, not necessarily to provide a social service. SABMiller is also selling a brand of “chibuku” in ten markets, a popular fermented brew with a gruel-like texture. “If governments are looking to encourage a low alcohol society, then actually beer ought to play a substantial role in that,” SABMiller’s Nigel Fairbrass says. Beverage manufacturers don’t want alcoholics, after all–they want loyal customers for life.
Alcohol consumption is likely to increase, as seen in South Africa, one of the world’s heaviest drinking nations. The wealthier demographic, “rising” Africans, will have the means to cope with it, but the rest, those Oxford economist Paul Collier calls the “Bottom Billion,” might not. In Mathare, one of the Nairobi’s notorious slums, people are forced to pick over rubbish alongside pigs. The Mathare river running the length of the slum is not a water source but a toxic waste-laden vein. On the river’s southern bank, the largest of four illegal moonshine distilleries runs 24-hours-a-day, seven-days-a-week. “It’s the cash crop of Mathare,” says James Anunda, taking time out from manning the scalding barrels of distillate. He is only 18-years-old, but his swollen fingers attest to five years in the business.
This 50-proof moonshine, known as chang’aa, tastes filthy but nearly everybody here drinks it. The distillery exports to the neighboring province, turns over close to $1 million per year and employs more than 100 people. The lucky ones become “tycoons” and employ younger men to “cook.” Others atrophy. The filthy black mud of the riverbank is dotted with casualties of chang’aa, those either red-eyed and unsteady or fast asleep. Workers at the distillery claim never to have produced a fatal brew. It is later, they say, when it’s mixed with embalming fluid, fuel, or even anti-retrovirals, that the problems start. Police come to Anunda’s distillery every day to collect an average of 1,200 shillings, around $14.50. Occasionally they stage a raid, then return the next day for their bribe.
On a given night, little tin shacks with no windows are filled with drinkers seeking escape from their lives. A dollar buys you eight watered down shots. Drinkers measure their alcohol capacity in shillings. “I’m a hundred and fifty, then, blackout,” one man says, demonstrating it with a flourish. His regular objective, he says, is to accrue sufficient funds to reach that point.
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