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OL’ MAN RIVER AND THE DAM STATE: The secret life of ASAL river basins

16 min read.

In this final part of a three-part series, PAUL GOLDSMITH traces the rise and fall of the lowland-coastal regions of East Africa and the Horn and examines why water management in these regions exemplifies the imbalance between the centre and the periphery. He argues that the Kenyan government’s failure to adopt indigenous knowledge and technological innovations has resulted in white elephant projects that have done little to solve the country’s water crisis.

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OL’ MAN RIVER AND THE DAM STATE: The secret life of ASAL river basins
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Major river systems are intrinsic to the long economic histories of the regions they transect. However, although the Tana River basin covers 20 per cent of Kenya’s land mass, the river itself, in terms of water volume and vital economic functions, is not the kind of waterway one associates with the world’s famous rivers. This, however, does not diminish the Tana River’s historical importance, which is critical to understanding the larger background against which the High Grand Falls Dam project is being framed.

Insofar as the three major rivers spanning the eastern highland-lowland gradient share the same highland water catchments and are also linked within the Vision 2030 policy framework, the case of the Tana cannot be examined in isolation from the Athi-Galana and Waso Nyiro North systems. The Athi-Galana takes a route similar to the Tana, skirting the contours of Kenya’s eastern highland-lowland gradient, but is often only a trickle by the time it reaches Malindi. The flow has been further reduced following the establishment of the one-million-acre Galana irrigation scheme bordering Tsavo East National Park. For people depending on Malindi’s tourism sector, this is a positive development as the drop in volume reduces the siltation of local beaches, a problem that contributed to the rise of Watamu as an alternative beach holiday destination. Before the scheme started, tourism sector stakeholders were advocating a plan to reroute the river to an outlet north of Mambrui.

The historical evidence indicates that most of the seasonal streams of northern Kenya and the coastal hinterland were permanent rivers before Africa’s shift to the drier climatic regime that occurred around the middle of the 13th century. The Waso Nyiro was once this region’s mightiest river, judging by the large watercourses like the Malgis laga (Swahili for dry watercourse) descending from the highland areas of Samburu and Marsabit that fed into it and the channels it carved out north of Magogoni in Lamu. Both Magogoni and Dodori, both of which are next to the site of a proposed coal-powered plant, are much larger than the channel where the present-day Tana River meets the sea. This may also be due to the fact that some of the lower Tana’s waters disappear into the lakes and wetlands of the Tana Delta. The Delta is a uniquely varied ecosystem that supports a wide variety of habitats, including riverine forest, grassland, woodland, bushland, lakes, mangroves, dunes, beaches, estuaries and coastal waters.

The historical evidence indicates that most of the seasonal streams of northern Kenya and the coastal hinterland were permanent rivers before Africa’s shift to the drier climatic regime that occurred around the middle of the 13th century. The Waso Nyiro was once this region’s mightiest river…

The Waso Nyiro now terminates at the Lorian swamp near Modo Gashe, but this too has changed over the past three decades. Its water often fails to reach Lorian due to the expansion of commercial farms and small-scale irrigation upstream. During most years, it often ends at a small outpost called Gotu; during extended droughts the flow is so reduced that animals in Samburu, Shaba, and Buffalo Springs reserves upstream can be seen drinking from puddles along its banks. The 1000-kilometre-long Tana River’s greatest attribute, against this backdrop, may be that it continues as a permanent watercourse transecting a long stretch of semi-arid lowlands before reaching the coast.

The rise and fall of coastal settlements 

The current condition of the three rivers linking Kenya’s eastern gradient to the Indian Ocean and the current focus on exploiting them close to their highland sources distract both from their important role historically and equally critical contribution to the livelihoods of the diverse communities downstream.

A thousand years ago, the region these rivers bisect were connected to the Shungwaya economy, whose main hub was located at Bur Gao, now a small town across the Kenya-Somalia border. Although colonial historians described Shungwaya as a kingdom, later work established that it was actually a trade network that linked the early Swahili city-states to the African interior as far as Lake Turkana.

OL’ MAN RIVER AND THE DAM STATE: Kenya’s misguided Big Water policy

Read also: OL’ MAN RIVER AND THE DAM STATE: Kenya’s misguided Big Water policy

The volume of water these rivers carried was less important than their role as conveyors of people and their domestic animals, and trade. The Shungwaya economy catalysed the shift of coastal settlements to a maritime culture around a thousand years ago, when they became part of the growing Western Indian Ocean economy. All of this contributed to the process of creative syntheses giving rise to the Swahili language and culture, a distinctively African urban society characterised by its strong tradition of co-evolutionary interaction.

The decline of Shungwaya, attributed to the climatic shift mentioned above, coincided with the 13th century rise of the Ajuran Sultanate, a centralised state that exploited the Juba and Shebelle rivers to develop Africa’s only case of a hydraulic empire. The Ajuran presided over extensive irrigation works and constructed an extensive system of wells and cisterns that allowed them to control their nomadic Somali and Orma neighbours and a swathe of territory extending across much of southern Somalia to eastern Ethiopia. The Sultanate, whose capital was located at Afgoye, collapsed during the 17th century, but the system of agricultural production and taxation remained in place until the 19th century.

The large volume of agricultural produce and other commodities supported the rise of Swahili port towns like Mogadishu, Merca, and Barawa on the Benadir coast. The inland networks that expanded through the influence of Shungwaya and the Ajuran Sultanate funneled a range of products to coastal towns that were exported to metropolitan hubs like Baghdad and Cairo; before long the commodities began reaching India, and eventually found their way to Venice and Lisbon. The codification of mercantile capitalism under Islam was an important enabling factor in both cases.

The wealth and reputation accompanying the growth of coastal settlements arising across the eastern Africa littoral between Mogadishu in the north and the Rovuma River in the south attracted the interest of the Chinese. The forty-ship fleets of large vessels commanded by the famous Admiral Zheng He, who led two expeditions between 1417 and 1422 to the region the Arabs dubbed the Land of Zinj, was significant even by today’s standards.

The large volume of agricultural produce and other commodities supported the rise of Swahili port towns like Mogadishu, Merca, and Barawa on the Benadir coast. The inland networks that expanded through the influence of Shungwaya and the Ajuran Sultanate funneled a range of products to coastal towns that were exported to metropolitan hubs like Baghdad and Cairo; before long the commodities began reaching India, and eventually found their way to Venice and Lisbon. The codification of mercantile capitalism under Islam was an important enabling factor in both cases.

The rivers also played a role in the migrations of the proto-Meru, who abandoned their settlement on Manda Island following the onset of Portuguese hegemony. Their migration up the Tana covering several generations, and the interactions en route and after their crossing of the Tana into what is now Tharaka, underpinned their own process of creative syntheses, leading to the development of what is arguably Africa’s most sophisticated agro-permaculture system based on a multigenerational concept of environmental resource management that predated the Western embrace of sustainability by over two hundred years.

In his insightful 1989 book, Identities on the Move, Gunter Schlee documents how similar dynamics influenced pastoralist clans and niche adaptations in northern Kenya. Herders in the Lake Turkana area established contacts with the coast centuries ago, and following a large environmental calamity overtaking present-day Marsabit County over five hundred years ago, a number of clans sought refuge on the coast. This interaction left an imprint on the indigenous orientation of coastal Islam, which in turn is reflected in the religious practices of the Gabra and Rendille, who integrated the five daily Islamic prayer cycle into their own monotheistic belief system. There are three Bajuni clans of northern Kenya origin, and the Bajuni sorio purification ritual is a variation of the Rendille ceremony known by the same name, even though there has been no contact between the two communities for several hundred years. By the same measure, when Meru miraa traders began showing up in Lamu after independence, the Bajuni welcomed them as watu wa Pwani in recognition of their coastal origins.

The false Kenya A-Kenya B dichotomy

The details of these historical interactions preserved in the traditions of these communities are indicative of the dynamic qualities of the cultural ecologies and pre-colonial political economy that developed in the river basins linking the coast to the mainland. The coast-mainland divide instilled during the colonial interlude is a false dichotomy in contrast, and these examples are also cited in order to posit that there is an alternative developmental model to the top-down planning imported by the colonial state.

The Tana River inscribes a long arc defining the border separating modern Kenya from the vast lowland expanses of “Kenya B” (a terminology used by the inhabitants living north of the river to describe themselves when making a distinction between them and “Kenya A” inhabitants south of the river). The region’s diverse cultural groups formed an economic mosaic that was beginning to enter a phase of proto-state formation during the late pre-colonial era. Similar developments were beginning to gather speed across much of what is modern day Kenya during the latter half of the 19th century. Imperial intervention short-circuited these processes, and with far-reaching ramifications for the inhabitants of Kenya B.

In the case of the coast and the lower Tana River hinterland, the unremarkable village of Kipini is emblematic of the lower Tana hinterland’s decline following the destruction of the Witu Sultanate and its satellite settlements in 1895 by a British expeditionary force. The population living within Witu’s fortified town walls was more than 50,000 at the time. The prosperous Sultanate welcomed slaves running away from the plantations run by the pro-Busaidi Lamu elite, and minted its own currency and postage stamps.

The irony of the Sultanate’s fall is that its demolition was triggered by the death of German loggers during an altercation that broke out after they racially abused their Swahili co-workers. The British were not happy that Witu had engaged their imperial competitors, but the killing of Europeans was a precedent they could not allow to go unpunished. Eliminating the Witu Sultanate solved two problems: it eliminated opposition to their imperial intrusion, while the agricultural collapse that followed allowed the British to annex the Lamu mainland as Crown Land.

The reduction of Witu’s population to just a few thousand people a century after its destruction is indicative of the malaise that spread across the larger region following the imposition of colonial rule. Decades of stasis became the basis for the region’s post-colonial marginalisation and social exclusion.

A similar trend overtook the ecologically and historically similar Juba River basin to the north in Somalia, with the exception of the commercial banana production that became Somalia’s only agricultural export industry. While traditional pastoralism dominated the large expanse between the Tana River and northern Somalia, these island ecologies contributed to the symbiotic relationships sustaining the livestock economy.

Prioritising dam building and state irrigation schemes over the livelihoods of communities long present in the region is a variation on the mono-culture developmental model Syad Barre attempted to implement in Somalia’s Juba River basin. Michael Maren elucidated the resulting conflicts in his book, The Road to Hell: The Ravaging Effects of Foreign Aid and International Charity, and things went further downhill after its publication in 1997.

The current highland-lowland division symbolised by the Kenya A-Kenya B dichotomy is an anomaly in regards to the socio-economic dynamics illuminating the historical record. It manifests in the problematic record of large-scale projects and other planned interventions across the region. The simple fact of the matter is that the larger lowland-coastal economic landscape discussed here once attracted settlers and refugees from across the seas rather than being an incubator for famines, clan warfare, and political turbulence. This explains one observer’s speculations that life in southern Somalia may have better four hundred years ago than it is now.

There are indications that the larger region bordering the Ethiopian and Kenyan highlands is recovering its mojo. However, many of the problems and historical injustices addressed by Kenya’s new constitution could have been avoided if the policy prioritising investment in high potential areas had been extended to the high potential economic sectors in Kenya’s neglected regions. But they were not, and if the Vision 2030 Big Water policy dominates the template for the area falling north of the Tana River, it may turn out to be a case of the worst is yet to come.

The current highland-lowland division symbolised by the Kenya A-Kenya B dichotomy is an anomaly in regards to the socio-economic dynamics illuminating the historical record…The simple fact of the matter is that the larger lowland-coastal economic landscape discussed here once attracted settlers and refugees from across the seas rather than being an incubator for famines, clan warfare, and political turbulence. This explains one observer’s speculations that life in southern Somalia may have better four hundred years ago than it is now.

We can only imagine the counterfactual scenarios that may have occurred if the local societies were in a position to manage the transition on their own terms.

Hydraulic states and rain-based social organisation

Water has been used as a mechanism of control since the rise of the earliest state systems. In a book called Oriental Despotism, Karl August Wittfogel developed the concept of hydraulic empires, which were expansionary states that flourished in the ancient world. Hydraulic states emerged in ancient Mespotamia, the Indus Valley, pre-Columbian Mexico and Peru, and Egypt. These states’ power was based on their control of water. Hydraulic states gave rise to impressive public works and statuaries that remain up to this time, and transformed kings into demi-gods and pharaohs.

OL’ MAN RIVER AND THE DAM STATE: Kenya’s misguided Big Water policy

Read also: OL’ MAN RIVER AND THE DAM STATE: Why the High Grand Falls Dam project is a bad idea

The hydraulic state is best understood as an ideal type based on environmental determinism. Debates generated by the concept led critics to argue that the hydraulic empires of antiquity were based on pre-existing central political organisation that enabled the rulers to expand their power through irrigation and water infrastructure. Marx and Engels’ Asiatic Mode of Production is another variation on the theme that emphasises a rigid and impersonal state’s monopoly of land ownership, political and military power, or control over irrigation systems.

Water has been used as a mechanism of control since the rise of the earliest state systems. In a book called Oriental Despotism, Karl August Wittfogel developed the concept of hydraulic empires, which were expansionary states that flourished in the ancient world. Hydraulic states emerged in ancient Mespotamia, the Indus Valley, pre-Columbian Mexico and Peru, and Egypt. These states’ power was based on their control of water.

Regardless of the order of events, domination through the control of water is a recurring idea that has resurfaced in science fiction like the Dune series and post-Apocalypse scenarios like Mad Max: Fury Road and contributes to the growing genre of eco-disaster films and other works of fiction.

Areas dependent on rain, in contrast to these examples, tended to give rise to decentralised social structures based on clans, segmentary lineages, age-set organisation, local councils, and other horizontal structures. This kind of organisation supported mobility, resilience, and the sharing of risk-spreading and coping strategies across diverse communities. Range scientists have associated the problem of unpredictable rainfall and high levels of uncertainty with the opportunistic exploitation of natural resources—a proclivity that comes with an obligation to share and redistribute. While this opportunism is embedded in pastoralist societies, variations on the same “make hay while the sun is shining” meme, is also observable among their neighbours, and in discussions with civil servants and politicians.

Economies conditioned by rainfall dominated across most of eastern Africa and the Horn, the exception being the secondary states represented by the intra-lacustrine kingdoms. The configuration of small states in present-day Uganda, Rwanda, and Burundi were the product of agro-pastoralist syntheses that, consistent with our discussion, were enabled by stable environmental conditions and plentiful water.

Areas dependent on rain..tended to give rise to decentralised social structures based on clans, segmentary lineages, age-set organisation, local councils, and other horizontal structures. This kind of organisation supported mobility, resilience, and the sharing of risk-spreading and coping strategies across diverse communities.

Such variations highlight the influence of environmental forces and shared social orientations on regional political economies. Hard-nosed planners and developmental experts will dismiss the narrative presented here as a historical fairy tale with no relevance for the present. There are, however, multiple examples of how the forces of nature and historical pathways reassert themselves during periods of system transitions, and there are multiple signs from all over the region that the region’s periphery is entering a phase transition that will render many of their plans and projects irrelevant.

Gunnar Myrdal released his influential book, Economic Theory and Under-developed Regions, around the same time Wittfogel published Oriental Despotism. In his analysis, the same elements of resource control central to hydraulic empire also guided Europe’s colonisation of much of the global South. Colonies were resource-rich areas located on the periphery, and the imperial project focused on the extraction and control of these resources. This was accomplished through a type of agro-managerial despotism that parallels the example of hydraulic empires.

The post-colonial states in this part of the world have become vehicles for a maladaptive combination of the opportunism embedded in rain-fed systems and the rigidity of hydraulic states. Kenya’s water management is symptomatic of the larger imbalance between the center and the periphery. This helps explain the militarisation of northern Kenya and why the Tana Delta became one of the primary incubators for the Mombasa Republican Council’s secessionist agenda.

Following the present state-based pathway is likely to lead to more of the same – not a good idea when alternatives exist.

Post-colonial water hangover

During the late 1970s, the Government of Kenya announced that it was committed to delivering potable water to every Kenyan household by the year 2000. This goal proved elusive and the target date passed without comment or controversy. The task appeared simpler than it actually was, and acknowledgement of this now comes with the awareness that management of water from above can also be a source of disease, death, and regime change.

The designation of water as a basic human right guaranteed by Article 43(1) of Kenya’s 2010 Constitution replaced that ambitious technocratic objective with a lofty principle but one that will not be attained because the operationalisation of water rights is a function of four factors: availability of the resource; investment in delivery and distribution systems; technological innovation; and the policy and planning process.

During the late 1970s, the Government of Kenya announced that it was committed to delivering potable water to every Kenyan household by the year 2000. This goal proved elusive and the target date passed without comment or controversy. The task appeared simpler than it actually was, and acknowledgement of this now comes with the awareness that management of water from above can also be a source of disease, death, and regime change.

Nailing the process should be the easy part, but this has not been the case as the first two installments of this series documented. Lessons learned for developing water resources cited in one USAID case study highlight the importance of exposing decision makers to alternative institutional arrangements and successful models of service delivery involving local stakeholders, embedding frameworks for mediating conflicts, and devolving management to local institutions.

The Kenya government’s US$25-billion LAPSSET corridor scheme, whose objectives include the transformation of the lower Tana River basin, is a product of the exact opposite mentality. The problem is not the roads and the infrastructure, but the hegemonic policies that have long treated the larger region as an unproductive expanse requiring developmental planning from both without and above.

The High Grand Falls Dams project on the Tana River reinforces this assumption by minimising the import of the project’s impact on the communities downstream, and failing to acknowledge the value of livelihood strategies fine-tuned to the region’s environmental and infrastructural conditions. The lack of consultation with minority communities appears to be standard procedure, even for non-controversial projects, like the expansion of geothermal electricity generation at Ol Karia.

Unlike electricity, water cannot be generated, only conserved. In the case of Kenya, the water is there. Developing the delivery and distribution infrastructure and maintenance is the hard part. Constructing local dams where appropriate is obviously an important option; to this end, the government identified a number of Arid and Semi Arid (ASAL) sites for water storage development.

Marsabit is an important highland island in the middle of a large desert. Residents suffer from protracted water shortages aggravated by degradation of the mountain’s cloud forest. The Badassa Dam was initiated in 2009 to alleviate the problem. It is an example of a worthy project that enjoyed the full support of the local community, especially after some 1,000 goats keeled over and died after drinking water from an old well. Like in the recent case where eleven rhinos died after being moved to the Tsavo, the problem was due to seasonally high concentrations of minerals, according to subsequent analyses. The dam became another case study of how badly things can go wrong.

Construction of the Badassa Dam, which is designed to hold 5 million cubic metres of water, stalled in 2011. Design flaws and the shoddy work of the government-appointed contractor led to a court case in 2013. Contrary to the ruling of one of several court cases, the wealthy Marsabit businessman who filed the suit ended up taking over the project. Things went badly again, resulting in major losses for the new contractor, who was forced to sell property in Nairobi to survive after being forced to go into hiding. In another stroke of irony reminiscent of the Tana River’s shift away from the Hola Irrigation Scheme, The Standard reported in 2014 that Badassa Dam’s source of water had dried up.

These finance-draining dam stories continue to pile up across the country. The Crocodile Jaws Dam in Isiolo presents another variation on the same theme. There’s no need to describe it – just watch the Oscar-winning animated film Rango. The movie shares the same water-grabbing plot line – the diversion of precious water away from the town to support the big money resort, or the LAPSSET tourist city in this case, but probably without the Hollywood-style ending.

Meanwhile, the flooding of the towns next to the Tana River earlier this year was not due to the heavy rains, but due to the siltation of the Masinga dam that has proceeded at a rate six times the level anticipated when the dam was built.

Smart technology and precision agriculture

The problem remains. A 2017 study reports the proportion of Kenyans with access to clean water is declining, in part due to population growth outstripping the government’s capacity to provide. This highlights the array of small-scale water catchment solutions now taking root in places like Makueni, Isiolo, Samburu, and even in Kusa along the shores of Lake Victoria that feature enhanced rocky outcrop water catchments, sand dams, and home water storage tanks and dams. Such scale- appropriate developments and growing pace of technological innovations across the world are revising path-dependent approaches to water.

The Slingshot water purifier can turn the water from Lake Turkana or the from the polluted Nairobi River into super purified medical quality water. The machine, which is the size of a crate of soda, can purify 1,000 litres per day and costs US $35. There are inexpensive nano filters for water bottles with pores small enough to catch viruses. This tech is the best bet for eliminating the ubiquitous plastic water bottles that actually do not guarantee safe water and are choking the oceans. Even the traditional toilet, a water wasting device that has not changed for 130 years, is being redesigned to recycle the water and to use the waste to recharge your mobile phone while sitting on the thrown.

Agriculture consumes 70 per cent of the world’s water. Experts predict a range of innovations from smart grids and self-repairing pipes to high-tech irrigation systems that will reduce the water used by over 30 per cent. These developments are fast tracking the growth of precision agriculture, an approach to production that utilises an array of components ranging from sensors to soil surveys and variable rate fertilization. The future of Kenya’s food security is precision agriculture, not large irrigation schemes. Large farms on the slopes of Mt Kenya are implementing precision agricultural methods, enabled by the growth of companies offering the requisite support services. Players in the contract-farming sector are introducing precision agricultural practices to medium-sized growers in the lower zones, and it is only a matter of time before this spreads to areas like the lower Tana River with its untapped potential for small- and medium-scale agro-pastoral development.

Agriculture consumes 70 per cent of the world’s water. Experts predict a range of innovations from smart grids and self-repairing pipes to high-tech irrigation systems that will reduce the water used by over 30 per cent. These developments are fast tracking the growth of precision agriculture, an approach to production that utilises an array of components ranging from sensors to soil surveys and variable rate fertilization.

Ari.Farm is an exemplar of developments of the new economy emerging in war-torn areas after decades of stasis and conflict. Using a very original business model based on subscriptions from the community, the firm is a magnet for diaspora capital that has established greenhouse farms and camel dairies in Somalia’s riverine area to supply Mogadishu. Ari.Farm also has a farm in Kenya that is delivering camel milk to Nairobi. The ubiquitous goat, which is resistant to capital-intensive mass production, is becoming the high-end animal protein of the future, and Ari.Farm just may turn out to be the dryland’s version of Eastleigh’s Garissa Lodge phenomenon.

Fourteen counties on Kenya’s periphery have come together to form The Frontier County Development Council, predicated on a “holistic and integrated approach to promote and strengthen inter-regional linkages”. The Council is one example of developments behind the region’s shifting system state. Human capital investment and provision of basic infrastructure in these high potential but historically marginalised zones, together with symbiotic linkages to pastoralist capital, can transform the larger region. The lower Tana and its invisible stakeholders should be given the chance to become part of the process leading over time to a new diversified river valley economy, and a sanctuary where all the bird watchers of the world will congregate.

This is only the beginning. The road will be difficult, but a dynamic confluence of capital, culture, and technology will see the influence of the post-post-colonial African mode of production in the former Shungwaya region become water under the bridge. This is the point in the process when the stakeholders can determine what form of upstream water management should be undertaken.

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Dr. Goldsmith is an American researcher and writer who has lived in Kenya for over 40 years.

Politics

The Axis-of-Evil Coalition in the Horn of Africa

The “Tripartite Agreement” signed between Ahmed Abiy of Ethiopia, Mohammed Abdullahi Farmajo of Somalia, and Isaias Afwerki of Eritrea is a “Trojan Horse” deal that could eventually destabilise the entire Horn of Africa region.

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The Axis-of-Evil Coalition in the Horn of Africa
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The political dynamics in the Horn of Africa have always been tense and volatile. Being a geographically strategic region, it has historically attracted competition among the big powers, with the region’s diversity in terms of population, norms, politics, and history rendering it susceptible to proxy politics emanating mainly from Western countries.

The countries of the Horn of Africa are Ethiopia, Somalia, Eritrea, Djibouti, Sudan, South Sudan, and by extension, Kenya, and Uganda. In this article, we focus on Ethiopia, Somalia, and Eritrea. More specifically, we shall examine how the incumbent leaders in Ethiopia, Somalia, and Eritrea have created a coalition to extend their terms of office under the pretence of “Horn of Africa Integration”.

The Horn of Africa region has been vulnerable to multipolar politics ever since, at the Berlin Conference of 1884-5, 13 European countries laid claim to Africa’s territories: Britain signed the Rodd Treaty with Menelik II of Ethiopia in 1897 that dominated the country’s administration, Djibouti came under French control while Italy took Somalia, Italian Somaliland, and Eritrea. By 1914, with the exception of Ethiopia and Liberia, all other African countries were under colonial rule.

Russia joined the race during the Cold War and supported the regimes in Somalia and Ethiopia, with President Siad Barre of Somalia and Prime Minister Mengistu Haile Mariam of Ethiopia becoming close allies of Russia. But despite their allegiance to the former Soviet Union, the two countries fought a vicious war from 1977 to 1978.

Somalia

From 1960 to 1969, Somalia was a fledgling democracy led by civilian governments established through peaceful transfer power. The military seized power in 1969, led by Siad Barre who ruled with an iron fist until he was ousted in 1991, leaving in his wake a civil war that killed thousands of Somalis, and pushed thousands more into exile. In 2000, Djibouti called a reconciliation conference that brought together civil society groups and culminated in the formation of the first government since the beginning of the civilian war. The new government was short-lived, however, as the warlords who controlled most of the south-central regions resisted and revolted. In 2004, the second government was formed under the Transitional Federal Government of Somalia under the leadership of the late President Abdullahi Yusuf.

However, this government made the same mistakes as its predecessor, calling on the African Union to send troops to support President Yusuf’s government and escort him to the capital, Mogadishu. The new government and the Islamic Courts Union (ICU)—which controlled most of the south-central region—held several meetings in Sudan to try to reach an agreement, but the talks failed. A military confrontation between troops of the Islamic Courts Union the Transitional Federal Government backed by Ethiopian forces ensued and, after a bitter fight and great loss of life, the TFG entered Mogadishu. Following a political fallout between the president and his prime minister, President Abdullahi Yusuf resigned, and the leader of the ICU, Sheekh Sharif, succeed Yusuf after negotiations between the leader of the ICU and the international community.

The first elections since the outbreak of the civil war were held under President Sheekh Sharif and Hassan Sheikh Mohamud, a civilian and veteran academic, was elected. Somalia became a federal state with five federal member states under President Hassan who oversaw the implementation of the provisional constitution which had been adopted in August 2012.

Although there were allegations of corruption, President Hassan’s government was relatively stable. One person one vote elections were scheduled to take place in 2016, but they were postponed for various reasons, including the insecurity caused by the Al-Shabaab and disagreement between the federal government and the leaders of the federal member states and others. Despite the challenges, however, President Hassan Sheikh’s administration pioneered indirect parliamentary elections where 51 delegates from each clan would each elect the members of parliament. Although the process was not considered a fair fight, the transition was smooth. In February 2017, Hassan Sheikh lost his re-election bid, and President Mohamed Abdullahi Farmajo became his successor. President Farmajo received a warm welcome from the public and many accolades from the international community and the neighbouring countries. Indeed, many Somalis believed that he would be better than his predecessors and would deliver the one person, one vote in 2021.

The situation turned when the government extradited Ogaden National Liberation Front (ONLF) commander Abdikarim Qalbi Dhagah to Ethiopia, leading to a public backlash, protests, and fierce criticism of the government. It was the first time that a Somali person had been extradited to Ethiopia, a country that many Somalis consider the archenemy. Since then, public support for the government has plummeted. Intimidation, attacks, smear campaigns, extrajudicial actions, and incarceration have become the modus operandi of the current government and the Somali people’s hope in Farmajo’s government has declined dramatically. Meanwhile, Farmajo’s government declared the UN Ambassador to Somalia persona non grata and expelled him, leading to international condemnation of his government. The government of Somalia also cut ties with Kenya, a country which has hosted the largest number of Somali refugees since 1991.

It was the first time that a Somali person had been extradited to Ethiopia, a country that many Somalis consider the archenemy.

The mandate of the sitting president ended on 8 February 2021 without elections being held for a successor government. In March 2021, the Somali parliament unilaterally extended the term of the president for another two years, which resulted in a confrontation and a split within the National army. After two weeks of chaos, the parliament reversed its decision.

The long-awaited one person one vote elections became a pipedream and indirect parliamentary elections were maintained albeit with an increase in the number of the delegates from 51 to 101. The May 2022 parliamentary elections were been mired in fraud, favouritism, rigging, and massive irregularities and the country has been plunged into uncertainty.

Ethiopia 

Historically, Ethiopia has never held free and fair elections. On the contrary, the country has lived under a political dynasty and patrimonial leadership interspersed with coups. There has always been a power struggle between Ethiopia’s diverse communities. The Amhara, who collaborated with the colonial powers, enjoyed the support of the British Administration under the Rodd Treaty of 1897 agreement, and dominated the country’s politics. Both Menelik II and Haile Selassie marginalized other communities, especially the Oromo, the Somali, and Tigrayans. In 1974, Mengistu Haile Mariam overthrew Haile Selassie in a coup d’état and moved the country’s allegiance away from the West to the Soviet Union, leading to a proxy war in Ethiopia between the US and Russia. Mengistu was ruthless to his critics, especially the Oromo, Tigray, and Somali; he was known as the “Butcher of Addis Ababa” and the “Red Terror.”

Led by Meles Zenawi, the Tigray People’s Liberation Front (TPLF) ousted Mengistu’s regime in 1991 and Ethiopia adopted federalism under the Ethiopian People’s Revolutionary Democratic Front (EPRDF) coalition party made up of the TPLF, Amhara, Oromo, and the Southern Nations and Nationalities. The first mistake committed by the Zenawi regime was to disregard other communities, particularly the Somalis, who are the third largest community in terms of population. The second mistake was to nullify the results of the elections in the Somali region where the Ogaden National Liberation Front (ONLF) had won by a landslide, resulting in a confrontation between the Zenawi regime and the ONLF. After three years of demonstrations emanating from the Oromo region and spreading to the Amhara region, Prime Minister Haile Mariam Desalegn resigned in 2018. It was the first time in Ethiopia that a public office holder had resigned due to pressure from the citizens. Abiy Ahmed took over as prime minister in April 2018.

Eritrea 

Eritrea was an Italian colony before World War II, but after Italy was defeated in the war in 1952, the United Nations tried to federate Eritrea to Ethiopia to as a compromise for Ethiopia’s claim of sovereignty and Eritrea’s desire for independence. Unfortunately, after nine years, Haile Selassie dissolved the federation annexed and annexed Eritrea.

As a result, the Eritrean Liberation Front (ELF), which was created in 1961, revolted against Haile Selassie. When Haile Selassie was dethroned by the Derg regime, former Prime Minister Mengistu Haile Mariam, who had led the revolution, tried to reach a settlement with the Eritrean Liberation Front (ELF) and the Eritrean People’s Liberation Front (EPLF) without success and insurgencies against his rule increased. In 1991, when Mengistu was ousted by the rebel movements led by Tigray People’s Liberation Front (TPLF), Prime Minister Meles Zenawi tried to keep Eritrea as part of Ethiopia, leading to renewed conflict with the rebel groups. After two years of fierce fighting Eritrea gained its independence in 1993 but the country has never held an election since; Isaias Afwerki, the first president, is still at the helm. After five years of a territorial dispute between Ethiopia and Eritrea, the Badme War erupted in 1998, lasting until 2000 and claiming more than 100,000 lives.

Mengistu was ruthless to his critics, especially the Oromo, Tigray, and Somali; he was known as the “Butcher of Addis Ababa” and the “Red Terror.”

Several peace agreements were brokered, including by the United Nations Mission in Ethiopia and Eritrea (UNMEE), the Algiers Comprehensive Peace Accord (ACPA), the Eritrea-Ethiopia Boundary Commission (EEBC), all culminating in deadlock, and Addis Ababa and Asmara remaining at loggerheads.

Horn of Africa Integration Project

With the exception of April 2018, when the former Prime Minister Haile Mariam Desalegn resigned following three years of demonstrations against EPRDF rule, Ethiopia had never experienced a peaceful transition of power. Abiy Ahmed, who was part of the EPRDF rule, succeeded Desalegn.

In the beginning, under Prime Minister Abiy, Ethiopia enjoyed relative press freedom, there was greater inclusion of women in politics, and the 20 years of animosity between Ethiopia and Eritrea came to an end, paving the way for Abiy to receive the Nobel Peace Prize in 2019. Abiy Ahmed visited Mogadishu in June 2018, where he met his counterpart President Farmajo. In a joint statement, the two leaders talked about strengthening diplomatic and trade relations between their two countries, with Ethiopia pledging to invest in Somalia’s port facilities. But apart from that brief statement, nobody knows precisely what the agenda of Abiy’s meeting with Farmajo was. President Farmajo has also visited Addis Ababa several times, but has not informed Somalia’s parliament what has been agreed between the two leaders. In December 2018, Eritrean president Afwerki visited Mogadishu and had talks with president Farmajo; the agenda of the meeting between the two leaders remains unknown. Somalia’s president also paid a visit to Asmara in July 2018.

Eritrea used to supply weapons and ammunition to the ICU during its conflict with the Somali government of the late President Abdullahi Yusuf, leading the Somali government to accuse Eritrea of supporting the extremist Al-Shabaab rebel group and as a result, the United Nations imposed an embargo on Eritrea in 2009. The UN lifted sanctions on Eritrea in November 2018 after the country reconciled with Ethiopia and Somalia. The leaders of the three countries, Abiy, Farmajo, and Afwerki, signed a little-known “Tripartite Agreement”. In hindsight, Abiy’s reconciliation with Afwerki was to enable Ethiopia to ostracize Ethiopia’s Tigrayan community and launch an attack on the Tigray region. Abiy’s secret agenda came out into the open on 4 November 2020 when he attacked the Tigray region backed by Eritrean troops. The coalition forces have committed gross human rights violations in the Tigray region, which has led to international condemnation against the brutality of the coalition troops and calls for Eritrean forces to withdraw from the Tigray region.

In hindsight, Abiy’s reconciliation with Afwerki was to enable Ethiopia to ostracize Ethiopia’s Tigrayan community and launch an attack on the Tigray region.

Meanwhile, although there is no smoking gun, there is a strong possibility that the Somali troops being trained in Eritrea are involved in the Tigray war. The Somali government had denied that Somali soldiers were sent to Eritrea for training but later confirmed this.

Despite the ongoing civil war and the political discontent in Ethiopia resulting from the delayed polls that were supposed to take place in September 2020, Abiy has decided to remain at the helm by hook or by crook.

The regimes in Addis Ababa, Mogadishu, and Asmara that I have called the axis-of-evil coalition have led the region astray through lack of an adequate response to the protracted drought, the unbridled corruption, the instability, and the internecine conflicts. The reasons behind the “Tripartite Agreement” between the three leaders were not and never have been to serve their respective people, enhance the trade relations, or improve security, but to keep a hold on power through their “Trojan horse” deal. This may lead to a revolt by the oppositions in the three countries that could finally destabilize the entire Horn of Africa region.

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Moving or Changing? Reframing the Migration Debate

The purpose of the mass and civilizational migrations of Western Europe was the same as now: not simply to move from one point to another, but also from one type of social status to another, to change one’s social standing in relation to the country of origin.

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Moving, or Changing?
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Do we move to change, or do we move to stay the same?

That seems to depend on who we were, to begin with. In most cases, it seems we move in an attempt to become even more of whatever we think we are.

A good Kenyan friend of mine once (deliberately) caused great offense in a Nairobi nightspot encounter with a group of Ugandans he came across seated at a table. There were six or seven of them, all clearly not just from the same country, but from the same part of the country.

“It always amazes me,” he said looking over their Western Uganda features, “how people will travel separately for thousands of miles only to meet up so as to recreate their villages.

He moved along quickly.

“Most African Migration Remains Intraregional” is a headline on the Africa Centre for Strategic Studies website:

Most African migration remains on the continent, continuing a long-established pattern. Around 21 million documented Africans live in another African country, a figure that is likely an undercount given that many African countries do not track migration. Urban areas in Nigeria, South Africa, and Egypt are the main destinations for this inter-African migration, reflecting the relative economic dynamism of these locales.

Among African migrants who have moved off the continent, some 11 million live in Europe, almost 5 million in the Middle East, and more than 3 million in America.

More Africans may be on the move now than at any time since the end of enslavement, or perhaps the two large European wars. Even within the African continent itself. They navigate hostilities in the cause of movement—war, poverty and environmental collapse.

The last 500 years have seen the greatest expression of the idea of migration for the purpose of staying the same (or shall we say, becoming even more of what one is). The world has been transformed by the movement of European peoples, who have left a very visible cultural-linguistic stamp on virtually all corners of the earth. It is rarely properly understood as a form of migration.

It took place in three forms. The first was a search for riches by late feudal Western European states, in a bid to solve their huge public debts, and also enrich the nobility. This was the era of state-sponsored piracy and wars of aggression for plunder against indigenous peoples. The second form was the migration of indentured Europeans to newly conquered colonial spaces. The third was the arrival of refugees fleeing persecution borne of feudal and industrial poverty, which often took religious overtones.

Certainly, new spaces often create new opportunities, but only if the migrants concerned are allowed to explore the fullness of their humanity and creativity. The historical record shows that some humans have done this at the expense of other humans.

A key story of the world today seems to be the story of how those that gained from the mass and civilizational migrations of Western Europe outwards remain determined to keep the world organised in a way that enables them to hold on to those gains at the expense of the places to which they have migrated.

We can understand the invention and development of the modern passport—or at least its modern application—as an earlier expression of that. Originally, passports were akin to visas, issued by authorities at a traveler’s intended destination as permission to move through the territory. However, as described by Giulia Pines in National Geographic, established in 1920 by the League of Nations, “a Western-centric organization trying to get a handle on a post-war world”, the current passport regime “was almost destined to be an object of freedom for the advantaged, and a burden for others”. Today the dominant immigration models (certainly from Europe) seem based around the idea of a fortress designed to keep people out, while allowing those keeping the people out to go into other places at will, and with privilege, to take out what they want.

Certainly, new spaces often create new opportunities, but only if the migrants concerned are allowed to explore the fullness of their humanity and creativity.

For me, the greatest contemporary expression of “migration as continuity” has to be the Five Eyes partnership. This was an information-sharing project based on a series of satellites owned by the United States, the United Kingdom, Australia, New Zealand and Canada. Its original name was “Echelon”, and it has grown to function as a space-based listening system, spying on telecommunications on a global scale – basically, space-based phone tapping.

All the countries concerned are the direct products of the global migration and settlement of specifically ethnic English Europeans throughout the so-called New World, plus their country of origin. The method of their settlement are now well known: genocide and all that this implies. The Five Eyes project represents their banding together to protect the gains of their global ethnic settlement project.

In the United States, many families that have become prominent in public life have a history rooted, at least in part, in the stories of immigrants. The Kennedys, who produced first an Ambassador to the United Kingdom, and then through his sons and grandsons, a president, an attorney general, and a few senators, made their fortune as part of a gang of Irish immigrants to America involved in the smuggling of illicit alcohol in the period when the alcohol trade was illegal in the United States.

Recent United States president Donald Trump is descended from a German grandfather who, having arrived in 1880s America as a teenage barber, went on to make money as a land forger, casino operator and brothel keeper. Franklin Delano Roosevelt, the 32nd president of the United States was the paternal grandson of a trader named Warren, a descendant of Dutch settlers who made his fortune smuggling opium into China in the 1890s.

While it is true that the entire story of how Europeans came to be settled in all the Americas is technically a story of criminality, whether referred to as such or not, the essential point here is that many of the ancestors of these now prominent Americans would not have passed the very same visa application requirements that they impose on present-day applicants.

The purpose of migrations then was the same as it is now: not simply to move from one point to another, but also from one type of social status to another. It was about finding wealth, and through that, buying a respectability that had not been accessible in the country of origin. So, the point of migration was in a sense, not to migrate, but to change one’s social standing.

And once that new situation has been established, then all that is left is to build a defensive ring around that new status. So, previously criminal American families use the proceeds of their crime to build large mansions, and fill the rooms with antiques and heirlooms, and seek the respectability (not to mention business opportunities) of public office.

Many of the ancestors of these now prominent Americans would not have passed the very same visa application requirements that they put to present-day applicants.

European countries that became rich through the plunder of what they now call the “developing world”, build immigration measures designed to keep brown people out while allowing the money keep coming in. They build large cities, monuments and museums, and also rewrote their histories just as the formerly criminal families have done.

Thus the powers that created a world built on migration cannot be taken seriously when they complain about present-day migration.

Migration is as much about the “here” you started from, as it about the “there” you are headed to. It is not about assimilating difference; it is about trying to keep the “here” unchanged, and then to re-allocate ourselves a new place in that old sameness. This is why we go “there”.

This may explain the “old-new” names so common to the mass European migration experience. They carry the names of their origins, and impose them on the new places. Sometimes, they add the word “New” before the old name, and use migrant-settler phrases like “the old country”, “back east”. They then seek to choose a new place to occupy in the old world they seek to recreate, that they could not occupy in the old world itself. But as long as the native still exists, then the settler remains a migrant. And the settler state remains a migrant project.

To recreate the old world, while creating a new place for themselves in it, , such migrants also strive to make the spaces adapt to this new understanding of their presence that they now seek to make real.

I once witness a most ridiculous fight between three Ugandan immigrants in the UK. It took place on the landing of the social housing apartment of two of them, man and wife, against the third, until that moment, their intended house guest. As his contribution to their household, the guest had offered to bring a small refrigerator he owned. However, when the two men went to collect the fridge in a small hired van, the driver explained that traffic laws did not permit both to ride up front with him – one would have to ride in the back with the fridge. The fridge owner, knowing the route better, was nominated to sit up front, to which his friend took great and immediate exception; he certainly had not migrated to London to be consigned to the back of a van like a piece of cargo. After making his way home via public means, and discussing his humiliation with his good wife, the arrangement was called off – occasioning a bitter confrontation with the bewildered would-be guest.

There must have been so many understandings of the meaning of their migration to Britain, but like the Europeans of the New World, the Ugandans had settled on replicating the worst of what they were running from in an attempt to become what they were never going to be allowed to be back home.

A good case in point is the ethnic Irish communities in Boston and New York, whose new-found whiteness—having escaped desperate poverty, oppression and famine under British colonial rule on what were often referred to as “coffin ships” —saw them create some of the most racist and brutal police forces on the East Coast. They did not just migrate physically; they did so socially and economically as well.

It starts even with naming.

The word “migrant” seems to belong more to certain races than to others, although that also changes. When non-white, normally poor people are on the move, they can get labeled all sorts of things: refugees, economic migrants, immigrants, illegals, encroachments, wetbacks and the like.

With white-skinned people, the language was often different. Top of the linguistic league is the word “expatriate”, to refer to any number of European-origin people moving to, or through, or settling in, especially Africa.

According to news reports, some seven million Ukrainians fleeing the Russian invasion were absorbed by their neighboring European countries, most of which are members of the European Union. Another 8 million remain displaced within the war-torn country.

This is an outcome of which the Europeans are proud. They have even emphasized how the racial and cultural similarities between themselves and the Ukrainian refugees have made the process easier, if not a little obligatory.

This sparked off a storm of commentary in which comparisons were made with the troubles earlier sets of refugees (especially from the Middle East and Afghanistan) faced as the fled their own wars and tried to enter Western Europe.

And the greatest irony is that the worst treatment they received en-route was often in the countries of Eastern Europe.

Many European media houses were most explicit in expressing their shock that a war was taking place in Europe (they thought they were now beyond such things), and in supporting the position that the “white Christian” refugees from Ukraine should be welcomed with open arms, unlike the Afghans, Iraqis and Syrians before them.

Human migration was not always like this.

Pythagoras (570-495 BC), the scholar from Ancient Greece, is far less well remembered as a migrant and yet his development as a thinker is attributable to the 22 or so years he spent as a student and researcher in Ancient Egypt. The same applies to Plato, who spent13 years in Egypt.

There is not that much evidence to suggest that Pythagoras failed to explain where he got all his learning from. If anything, he seems to have been quite open in his own writing about his experiences, first as an apprentice and later a fellow scholar in the Egyptian knowledge systems. The racial make-up of Ancient Egypt, and its implications, was far from becoming the political battleground it is today.

Top of the linguistic league is the word “expatriate” to refer to any number of European-origin people moving to, or through, or settling in, especially Africa.

Classic migration was about fitting in. Colonial migration demands that the new space adapt to accommodate the migrant. The idea of migrants and modern migration needs to be looked at again from its proper wider 500-year perspective. People of European descent, with their record of having scattered and forcibly imposed themselves all over the world, should be the last people to express anxieties about immigrants and migration.

With climate change, pandemic cycles, and the economic collapse of the west in full swing, we should also focus on the future of migration. As was with the case for Europeans some two to three hundred years ago, life in Europe is becoming rapidly unlivable for the ordinary European. The combination of the health crisis, the energy crisis, the overall financial crisis and now a stubborn war, suggests that we may be on the threshold of a new wave of migration of poor Europeans, as they seek cheaper places to live.

The advantages to them are many. Large areas of the south of the planet are dominated physically, financially and culturally, by some level of Western values, certainly at a structural level. Just think how many countries in the world use the Greco-Latin origin word “police” to describe law enforcement. These southern spaces have already been sufficiently Westernized to enable a Westerner to live in them without too much of a cultural adjustment on their part. The Westerners are coming back.

This article is part of a series on migration and displacement in and from Africa, co-produced by the Elephant and the Heinrich Boll Foundation’s African Migration Hub, which is housed at its new Horn of Africa Office in Nairobi.

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The Iron Grip of the International Monetary System: CFA Franc, Hyper-Imperial Economies and the Democratization of Money

Cameroonian economist Joseph Tchundjang Pouemi died in 1984, either poisoned or by suicide. His ideas about the international monetary system and the CFA franc are worth revisiting.

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The Iron Grip of the International Monetary System: CFA Franc, Hyper-Imperial Economies and the Democratization of Money
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Despite being one of Africa’s greatest economists, Joseph Tchundjang Pouemi is little known outside Francophone intellectual circles. Writing in the 1970s, he offered a stinging rebuke of orthodox monetary theory and policy from an African perspective that remains relevant decades later. Especially powerful are his criticisms of the international monetary system and the CFA franc, the regional currency in West and Central Africa that has historically been pegged to the French currency—at first the franc, and now the euro.

Pouemi was born on November 13th, 1937, to a Bamiléké family in Bangoua, a village in western Cameroon. After obtaining his baccalaureate and working as a primary school teacher, Pouemi moved to France in 1960, where he studied law, mathematics, and economics at the University of Clermont-Ferrand. Pouemi then worked as a university professor and policy adviser in Cameroon and Cote d’Ivoire. In 1977, he joined the IMF but quit soon after, vehemently disagreeing with its policies. He returned to Cameroon and published his magnum opus, Money, Servitude, and Freedom, in 1980. The recently elected president of Cameroon, Paul Biya, appointed Pouemi head of the University of Douala in August 1983—then fired him a year later. On December 27th, 1984, Pouemi was found dead of an apparent suicide in a hotel room. Some of his friends and students argue he was poisoned by the Biya regime (which still governs Cameroon), while others believe that harassment by Biya’s cronies drove Pouemi to suicide.

International Monetary System

Writing in the turbulent 1970s after the breakdown of the Bretton Woods regime of fixed exchange rates, Pouemi anticipated the three “fundamental flaws” with the international monetary “non-system”: one, using a national currency, the US dollar, as global currency; two, placing the burden of adjustment exclusively on deficit nations; and, three, the “inequity bias” of the foreign reserve system, which makes it a form of “reverse aid.” All three issues have been highlighted by the economic impact of the COVID-19 pandemic.

Long recognized as a problem, the challenges with using the US dollar as the world’s currency have once again become apparent. Low- and middle-income countries (which include essentially all African countries) have to deal with the vicissitudes of the global financial cycles emanating from the center of the global capitalist system. As the Federal Reserve raises interest rates to combat inflation by engineering a recession—because if borrowing costs rise, people have less money to spend and prices will decrease—they are increasing the debt burden of African governments that have variable-rate loans in US dollars. Already, the World Bank has warned of a looming debt crisis and the potential for another “lost decade” like the 1980s. Moreover, higher interest rates in the US lead to the depreciation of African currencies, making imports more expensive and leading to even higher food and oil prices across the continent.

Pouemi viewed the IMF’s attempt to create a global currency through the 1969 establishment of the special drawing rights (SDR) system as an inadequate response to the problems created by using the US dollar. The issuance of SDRs essentially drops money from the sky into the savings accounts of governments around the world. The IMF has only issued SDRs four times in its history, most recently in August 2021 in response to the COVID-19 pandemic. With African governments dealing with falling export earnings and the need to import greater amounts of personal protective equipment—and, eventually, vaccines—there was a clear need to bolster their savings, i.e., foreign reserves. The problem is that the current formula for allocating SDRs provides 60% of them to the richest countries—countries that do not need them, since they can and have borrowed in their own currencies. Of the new 456 billion SDR (approximately US$650 billion), the entire African continent received only 5% (about US$33 billion).

Decades ago, Pouemi had slammed SDRs as “arbitrary in three respects: the determination of their volume, their allocation and the calculation of their value.” Instead, Pouemi advocated for a truly global currency, one that could be issued by a global central bank in response to global recessions and that prioritized financing for the poorest countries. Such a reorientation of SDRs could provide a way of repaying African nations for colonialism and climate change.

Secondly, unable to get the financing they need, African governments with balance-of-payments deficits (when more money leaves a country than enters in a given year) have no choice but to shrink their economies. Pouemi strongly criticized the IMF, which he dubbed the “Instant Misery Fund” for applying the same “stereotypical, invariable remedies: reduce public expenditures, limit credit, do not subsidize nationalized enterprises” regardless of the source of a country’s deficits. Devaluing the currency is unlikely to work for small countries that are price takers in world markets and instead improves the trade balance by lowering domestic spending. The IMF has become “a veritable policeman to repress governments that attempt to offer their countries a minimum of welfare.” The current international monetary non-system then creates a global “deflationary bias,” since those countries with balance-of-payments deficits must reduce their spending, while those with large surpluses—like Germany, China, Japan, and the Netherlands—face little pressure to decrease their surpluses by spending more.

The third major issue with the current international monetary non-system is that developing countries have to accumulate foreign exchange reserves denominated in “hard” currencies like US dollars and euros, which means they are forced to transfer real resources to richer countries in return for financial assets—mere IOUs. Pouemi claimed that “if the international monetary system was not ‘rigged,’ reserves would be held as other goods like coffee or cocoa, gold for example. But the system is ‘rigged’; coffee reserves are quantified as dollars, pound sterling or non-convertible francs.” Instead, in the late 1970s, governments like that of Rwanda effectively lent coffee to the United States by using export earnings to purchase US treasury bills, whose real value was being quickly eroded by high inflation in the US. Hence, we live in a world where developing countries like China and Brazil lend money to rich governments like that of the US. As Pouemi explains: “The logic of the international monetary system wants the poor to lend to—what am I saying—give to the rich.”

CFA franc

Pouemi was also a harsh critic of the CFA franc, since maintaining the fixed exchange rate to the euro implies abandoning an autonomous monetary policy and the need to restrict commercial bank credit. Pouemi also argued that the potential benefits and costs of currency unions are different for rich and poor countries, and that therefore it is inappropriate to analyze African monetary unions through a European lens. His thoughts are especially relevant at a moment when the future of the CFA franc and West African monetary integration are up for debate.

In theory, by fixing the exchange rate to the euro, the two regional central banks that issue the CFA franc—the Banque centrale des états de l’Afrique de l’ouest (Central Bank of West African States) and the Banque centrale des états de l’Afrique centrale (Central Bank of Central African States)—have relinquished monetary policy autonomy. They have to mimic the European Central Bank’s policy rates instead of setting interest rates that reflect economic conditions in the CFA zone. The amount of CFA francs in circulation is also limited by the amount of foreign reserves each regional central bank holds in euros. Therefore, “the solidity of the CFA franc is based on restricting M [the money supply], a restriction not desired by the states, but one proceeding from the very architecture of the zone.” As a result, the economies of the CFA franc zone are starved of credit, especially farmers and small businesses, hindering growth and development. In Pouemi’s words, “There is no doubt, the CFA remains fundamentally a currency of the colonial type.”

When discussing the possibilities for a single currency for the Economic Community of West African States (ECOWAS), Pouemi stressed that the potential benefits and costs of currency union are different for rich and poor countries. “There is not only a difference of perception of the mechanisms of cooperation” between Europe and Africa, “there’s a difference of the conception of common life. Economic cooperation as it is conceived in the industrialized West is the Kennedy Round, North-South dialogue, the EEC, etc.—in other words, essentially ‘customs disarmament’ or common defense; armament is the rule, disarmament the exception.” In Africa, however, economic cooperation is a positive-sum game. Conventional economic theory argues against monetary integration among African countries, since they trade little with each other. But to Pouemi, the goal of monetary integration is precisely to get these countries to trade more with one another. He also questions the view that monetary integration should come last, following the same sequence as the European Union from free trade zone to customs union to common market and, finally, to currency union. “This view is not only imaginary, it is practically non-verified; we have seen examples. Theoretically, it is indefensible: a 10% decrease in tariffs could be … offset by a devaluation of 10%.”

Pouemi also dismissed arguments that Nigeria would dominate the proposed ECOWAS single currency as another example of the classic colonialist tactic of “divide and conquer.” While he acknowledged that “monetary union between unequal partners poses problems,” these are “only problems, open to solutions.” They do not make monetary integration unviable. Such integration need not limit sovereignty. In a regional or continental African monetary union, no “currency would be the reserve of others. Each country would have its own central bank, free to conduct the policy that best suits the directives judged necessary by the government. The only loss of sovereignty following such a union would be the respect of the collective balance. It would not be appropriated by anyone; it would be at the service of all. It would be, for that matter, less a loss of sovereignty than the collective discipline necessary to all communal life.”

Pouemi advocated for an African monetary union with fixed exchange rates between members, the pooling of foreign reserves, and a common unit of account—like the European Currency Unit that preceded the euro. He thought that the debate over whether the CFA franc is overvalued is misguided, since there is no a priori reason for its members to have the same exchange rate. Fixed but adjustable exchange rates—as in the Bretton Woods system or European Monetary System—would allow each nation greater monetary and exchange rate policy autonomy. Settling payments using a common unit of account instead of foreign exchange reserves would help economize on the latter. Moving toward the free movement of capital, goods and labor—as envisioned by the African Continental Free Trade Area—would help diffuse shocks through the monetary union. Finally, such a union would need to have a common policy on capital controls or at least collective supervision of international capital flows.

As Pouemi so eloquently lamented: “History will hold on to the fact that all of [Africa’s] children that have tried to make her respected have perished, one after the other, by African hands, without having the time to serve her.” We do not know what Pouemi could have accomplished had he had the time to serve Africa for longer. All we can do is heed his call that “in Africa, money needs to stop being the domain of a small number of ‘specialists’ pretending to be magicians.”

This post is from a partnership between Africa Is a Country and The Elephant. We will be publishing a series of posts from their site once a week.

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