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A Holistic Grasp of Northern Drylands Is Key To Unlocking Potential

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Despite the potential of the arid and semi-arid areas, the majority of the population in the drylands of northern Kenya lives in deep rural poverty.

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One afternoon in the heart of the Waso rangelands in Isiolo County, I was debating with Borana elders on the best measures to mitigate the effects of the recurrent droughts. An elder rose and gave wise counsel, saying he was nostalgic about the good old days, “when we had plenty of milk and households in Waso could effortlessly fend for themselves without help”.

The elder said that because of climate change and “external help”, they slaughter and sell part of the herd at a low price to be eaten by others for nutritional gain. He concluded, “if they share our concern, tell the external agents to outwit the vultures and come earlier”, implying that most support arrives too late, at the height of an emergency, when herds have been partly decimated by the drought and the vultures have already arrived to scavenge for carcasses.

While said tongue-in-cheek, the elder’s request underscores the frustration felt by the “beneficiaries” because of the external agencies’ apparent lack of a basic understanding of dryland dynamics and the challenges of getting needs right.

The drylands

The drylands are an extremely heterogeneous environment characterised by among others, low erratic rainfall, high inter-annual climate variability and ecological uncertainty. Globally, drylands occupy 41 per cent of the earth’s land surface and are home to approximately 35 per cent of its population. The dominant livelihood systems in the drylands are pastoralism, agro-pastoralism, and some rain-fed agriculture where the local communities tap into their knowledge to live with uncertainty. In Sub-Saharan Africa alone, an estimated 50 million pastoralists rely on the drylands environment for their livelihoods.

Although historically these regions are considered to be of low economic potential, their diverse pastoral groups play an important role in the modern economy. For example, livestock production in the drylands contributes over 35 per cent of the agricultural sector’s contribution to Kenya’s GDP and accounts for over 80 per cent of household income in the drier regions, employing thousands of people in livestock production and marketing.

Yet despite the potential of the arid and semi-arid areas, the majority of the population in this regions of Kenya lives in deep rural poverty. According to a recently published socio-economic blueprint for Frontier Counties, about 20.5 per cent of Kenya’s poor live in the frontier counties and 64.2 per cent of this population lives below the poverty line, compared to a national average of 36.1 per cent.

The reasons for this lie in both how national planners and policymakers view dryland areas and how investment decisions are made in these regions. Although there have been some changes in some drylands counties following devolution, the knowledge base that has shaped development in this region largely remains the same.

Common misconceptions

Knowledge is key in the interaction of humans with the ecological system, especially in arid areas. However, understanding the challenges facing this important region has been impeded by a number of misconceptions including that: compared with other areas which have traditionally been recognised as “high potential areas”, drylands are remote, poor and degraded and are of little potential except for tourism; dryland areas have low biological productivity compared to the highlands and as such, they are of little economic value apart from providing a means of subsistence to those who live there; dryland communities are a helpless group with weak means and a low adaptive capacity to manage uncertainty; drylands cannot yield a satisfactory return on investment due to the climate risk associated with variable and erratic rainfall; dryland communities are weakly integrated into markets because of their remoteness, their poverty and their reluctance to sell their animals.

Most externally-driven technical solutions continue to be based on misconceptions, including critical elements of planning which are based on partial values of these areas, rather than their total economic value. Being unable to place a value on marketable assets in the arid and semi-arid areas of Kenya, decision-makers dwell much more on the erroneous narrative that pastoralists are not market-oriented. Substantial resources are spent on trying to make pastoralists responsive to the market without addressing the underlying structural challenges of the livestock value chains.

Over the years, the government’s attempts to tap the livestock wealth of pastoralists have not been systematic but have come in waves. These attempts started in the mid-1930s and provoked the famous Akamba Political Protest against forced destocking and the failed attempts to develop stock auctions. Then came the era of the ecological argument that is based on the carrying capacity of the range, and the efforts to force a higher offtake rate in the second half of the 1950s. There followed a number of disjointed livestock development programmes in the late 1960s and early 1970s. Scholars argue that “unfair terms of trade” made these government-led initiatives unattractive.

Pastoralist value chains

Although livestock has traditionally constituted an important currency in most African societies, this is no longer the case in Kenya which has a “crop bias” where agricultural products like tea and coffee are priority export crops and are therefore given the necessary policy support.

This bias was introduced during the colonial era where the settler-occupied “White Highlands” constituted the political and economic core. While there was a fair demand for livestock products in the downcountry, the market was tailored to the needs of the white settlers who influenced the location of key infrastructure, regulations, and governance that barred African herd owners from integrating into the national marketing structure. A good example is the location and operation of the Kenya Meat Commission, which was purposely designed to support the movement of animals slaughtered by white settlers and had little consideration for African herd owners.

Little has changed since independence and post-liberalisation. Persisting elements of colonial legislation such as restrictive livestock movement permits, unfavourable movement schedules and restrictions on trading licences have historically skewed the pastoralist’s relationship to the market.

To date, markets are largely controlled through the organisation of ethnic trade networks where some non-pastoralist groups have better connections to the urban space and a more supportive business environment and subsequently control important activities downstream of the chain.

A good example is the trade network for sheep and goats that extends from Moyale to Kariobangi in Nairobi that systematically locks other pastoralist groups out of the downstream trade at the terminal market. The ownership of slaughter facilities and connection to specific clients for largescale slaughter offers members of this trade network certain preferential trade advantages.

Markets are largely controlled through the organisation of ethnic trade networks where some non-pastoralist groups have better connections to the urban space.

Generally, the trade in livestock from the arid north has always been risky and full of technical pitfalls. Even for today’s professionals, it is booby-trapped with many uncertainties that call for constant creativity and business shrewdness to survive the perennial losses.

The trade in live animals presents multiple risks in the form of quantity losses (reduced weight and number) and quality losses such as altered physical appearance. Animals have a limited shelf life, particularly in the urban environment; after being taken out of their production environment, their appearance deteriorates due to the different climatic conditions and lack of proper forage, which reduces their potential selling price. At times, major losses occur when the animals cannot be sold immediately and their upkeep at the terminal markets leads to high transaction costs.

There are also economic losses, which represent the difference between the potential and the actual economic benefits. In effect, at almost every stage, the livestock entrepreneur is faced with the daunting task of making risky decisions mostly based on incomplete information and under duress.

A second technical problem is the lack of clear demand and supply specifications. Different markets favour different types of livestock while the retail prices fluctuate all the time in tandem with changes in these forces of supply and demand. A trader must make delicate decisions almost every day as to what kind of animals they should buy, in which areas they can buy the livestock, and which of these areas offer supplies at the lowest price. At the same time, the trader must also have some knowledge of which terminal market in the downcountry will offer him the widest profit margin.

As the trade network extends towards the terminal markets in Nairobi, trade relations between the pastoralist traders and the clients who could share more precise market information are further weakened, widening the gap between supply and demand and increasing the economic losses of the traders. It is thus essential that traders have accurate day-to-day information about the shifting supply and demand.

The third problem that faces traders are the unfavourable terms of trade along the pastoral livestock value chain due to the many structural challenges related to price volatility, information asymmetry along the chain, high transaction costs and weak livestock marketing policies.

The long absence of a comprehensive livestock marketing policy (the livestock and livestock product marketing board bill was only passed in 2019) set the stage for minimal investments in marketing infrastructure such as meat processing facilities, cold chains, logistics, and limited coordination among actors.

This has resulted in weak governance of the value chain and contributed to post-harvest losses. Although some marketing aspects were incorporated into the National Livestock Policy Sessional Paper no. 2 of 2008, it still does not specify in detail ways to streamline livestock marketing investments and the sustainable integration of pastoralist livestock producers into the value chains.

Inclusive value chain

As the northern arid areas increasingly become indispensable to the national economy in the face of the emerging oil boom and the expansion of infrastructure corridors, there is a need to realign the value chain agenda with government, donor, and private sector investment priorities.

Already, many county governments in arid and semi-arid counties are leaning towards the regionalisation of livestock markets through the construction of large-scale abattoirs (in Marsabit, Isiolo, Samburu, Wajir and Garissa Counties) and targeting of high-value meat export markets in the Arabian Peninsula. While such efforts are welcome, they should be preceded by discussions on the governance of the value chain, particularly on the position of pastoralist producers in the chain, models of the proposed trading arrangements and opportunities to tap into livestock traceability and other associated opportunities for premium pricing of pastoralist livestock.

The key to unlocking the pastoralist value chain is establishing standards and linkages. The coordination of the value chain from upstream to downstream, improving the flow of market information and price accuracy, and providing a wider choice of potential buyers to livestock entrepreneurs and producers from arid areas are all necessary interventions. In some countries, more transparent trading arrangements, such as livestock auctions, have been tested and have proven successful at improving price transparency, coordination of sales and offering price competitiveness to livestock producers. To this end, the earlier we embrace an ICT trading platform as a step towards improving access to livestock market information the better.

The key to unlocking the pastoralist value chain is in establishing standards and linkages.

In effect, it is important to invest in appropriate ICT technologies that can offer a mechanism to crowdsource market prices to make real-time price information available to buyers and sellers, create a platform for open purchase and sales, improve logistics by maximizing availability and use of transport, and publicise the availability of water, vaccinations, breeding and financial services, among others.

Although still in their early stages, online livestock trading platforms such as Cowsoko are emerging to fix supply-side issues, address limited demand-side market information and improve accessibility to quality cattle.

Invest to produce quality animals

Improvement in rangeland management is another important aspect that needs proper investment. This should start with participatory rangeland mapping to articulate priorities such as the protection of key grazing resources and seasonal access. This could be complemented with a Geographical Information System (GIS) to produce digital maps displaying high spatial precision resource distribution.

Empowering local level governance systems such as Dhedha — the highest geographical unit for resource management among Borana herders — should follow such participatory mapping exercises. County assemblies should support these local grazing management institutions by developing appropriate by-laws. This will necessitate capacity building in by-law formulation and facilitating the by-law development process by the county assemblies. Investment in rangeland governance through agreements and the development of enforcement mechanisms in selected arid and semi-arid counties will also reduce incidences of conflict and foster peaceful coexistence within an agreed governance framework.

The earlier we embrace an ICT trading platform as a step towards improving access to livestock market information the better.

To improve the quality of animals, interventions in animal production should focus on boosting inputs and extension services. Input markets are flooded with sub-standard products, which expose livestock producers and affect the quality of their product. There is a need to streamline production support by embracing modern e-financing tools such as through the e-voucher, a customised debit (ATM) card containing different “e-wallets” which livestock owners can use to make purchases from selected agro-vets, enabling them to access various inputs such as vaccines, medicines, feed, feed supplements, extension services, veterinary care, Artificial Insemination services, among others.

In this regard, valuable lessons can be learned from the IFAD-financed Kenya Cereal Enhancement Programme – Climate-Resilient Agricultural Livelihoods Window (KCEP-CRAL) project where an electronic “e-voucher” scheme was extensively utilised to improve farmers’ access to Agri-inputs and to offer coordinated solutions through Public-Private-Producer Partnerships.

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Guyo Malicha Roba is a researcher and expert on African pastoralism and livestock value chain.

Ideas

The Roaming of Colonial Phantoms and a History of Resource Plunder

Since colonization, Africa has provided its best raw materials for the global North. Can countries finally break this pattern?

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The struggle for control over Africa’s natural resources has raged since the colonization of the continent. It continues today as the forces that undermine Africa shift from the former colonizers to transnational corporations, and the ideology that underpins the global economic order morphs from blunt “flag” colonialism to the hegemony of neoliberalism. The effect is still the same: the underdevelopment of African economies and undermining of state capacity to meet peoples’ needs. The following unpacks the roots of this persisting problem and offers some lessons from the early post-independence era, when governments across Africa recognized these issues clearly and enacted revolutionary policies to confront them.

Prior to colonialism, the countries of Africa were economically, politically, and sociologically structured organically around their internal needs and demands, meeting internal material and social challenges. This is not to say these societies were devoid of internal contradictions, conflicts between them, or engagement with the wider world––indeed, trade routes certainly extended beyond the continent. But on the whole, the economic structures and relationships that developed were shaped by dynamics and demands within African societies.

This was forcefully upended with the onset of colonialism, as African economies were extroverted, destroyed, and fragmented. A new structure was put in place in which African economies were inserted in the global economic order as providers of raw materials for the development of other countries––basically for imperial Europe. This has relegated the vast majority of the continent to a political economy structure of primary commodity export dependence.

Within this structure, African countries became dependent on the export of a small basket of barely processed minerals, timber, and agricultural products (cocoa, coffee, bananas, etc.) as raw materials to feed the industries of the global North. In return, Africa became dependent for their consumption needs on the import of the goods manufactured in the North, most often made using African raw materials.

This enforced “unequal exchange” of unprocessed so-called “low-value” raw materials for “high-value” processed goods has become the basic mechanism of unequal economic relationships between Africa and the advanced industrial capitalist North, and the means of continued appropriation of the wealth created in Africa by the North. This undermines the accumulation of wealth in Africa and its reinvestment for renewing, upgrading, and expanding productive capabilities of the societies on the continent, and therefore of their ability to meet the changing needs of the people. On the contrary, African countries and opportunities for their people have become trapped in the vicissitudes of the global market for their commodities over which they have little control.

The colonial restructuring of Africa’s economies and their orientation to the external needs of European industrialization have devastating consequences for the internal dynamics of the economies and the societies, marked by two key features:

First, as products which were before used and processed for an internal economy came to serve merely as unprocessed raw materials for Europe, the internal usage of these products was subverted. Iron, which was processed into agricultural tools and other mechanical tools, was now mined only to be carted out in raw form. Agricultural products which before were processed in wide-ranging forms for food, clothes, shoes, were now only exported in their raw forms. As a result, the chain of processes, skills, and knowledge of these products and their uses through the domestic economy was broken. Instead of being maintained and upgraded over time, the capabilities and capacity have become degraded.

Second, the relationships that existed between different types of economic activity and “sectors” of the economy were fragmented. The chain of mining, smelting, and crafting iron to supply the technological need of agriculture, such as tools for farmers, was fragmented during the colonial economy. Agricultural supplies to iron crafters were also equally disrupted. This shifted the overall nature of African economies so that these sectors no longer met the needs of and reinforced one another, helped each other grow, or evolved according to African needs.

As different sectors of the economy were no longer “speaking to each other,” the range of internal exchanges became limited and the overall economy became more shallow and weaker. For instance, farmers who now only sold their products to an external (North) market didn’t necessarily have an internal market for their products so that they could also expand their production and opportunities for livelihood. This led to a common belief that African countries have small markets, erroneously attributed to small national populations, and that there is simply nothing that can be done about it. But contrast this with global North countries such as the Netherlands or Denmark: their populations are smaller than many African countries, but because of the coherence in their economies they are able to have a deeper domestic market which allows for expanded production. Their economies were not fragmented and reoriented in the same way.

Such internal fragmentation and consequent shallowness of the African economy is aggravated by the artificial borders inherited from colonialism. Before colonialism, what now constitutes the national border between Ghana and Togo was a common space of economic interaction among societies. By being forced to operate behind new artificial borders also limits the range of exchange and economic depth.

Historically, the mining sector has been the focal as well as entry point for the construction of the primary commodity export dependent political economy. From South Africa to Zimbabwe to Ghana, colonization was consolidated as a process of European companies, supported by their governments, exercising possession and ownership of Africa’s minerals and expropriating the locals. This was replicated as more minerals were discovered in addition to gold, diamond, coal, and oil, and every time a new mineral is demanded by the global North, this dynamic is asserted anew.

However, primary commodity export dependence is not simply a reduction to the specific mineral or agricultural or other natural resources involved. Rather, it is the totality of relationships and dynamics of the appropriation of wealth, the extroversion of the economic dynamics, and fragmentation of African economies. This allows us to see how these dynamics extend beyond natural resources to other economic sectors, such as tourism, telecommunications, and finance. In tourism, for example, it is widely known that the higher end of the value-chain is dominated by a handful of transnational operators, who then appropriate the overwhelming bulk of the wealth generated, leaving Africans little out of it.

In this neoliberal era, the problem of primary commodity export dependence has been ignored at best and celebrated at worst. Promoted first by neoliberal economists and North policy institutions, an insidious narrative has proliferated that African countries should rely on their “comparative advantage,” recommending that they make better and more efficient use of their export of primary commodities. The power of this narrative has ensured that the transformation of primary commodity export dependence and its attendant problems as outlined above has ceased to be a central aspect of African policy making in the neoliberal period.

Echoing the neoliberal suppression of policies aimed at dismantling primary commodity export dependence, at the onset of neoliberalism the World Bank told African governments to abandon any notion to use mineral resources to serve social priorities or developmental priorities, and give up their running and management of minerals and mineral wealth to transnational companies. As the Bank stated:

The recovery of the mining sector in Africa will require a shift in government objectives towards a primary objective of maximizing tax revenues from mining over the long term, rather than pursuing other economic or political objectives such as control of resources or enhancement of employment. This objective will be best achieved by a new policy emphasis whereby governments focus on industry regulation and promotion and private companies take the lead in operating, managing and owning mineral enterprises.

Paradoxically, even the revenue from the export of primary commodities has been undercut through World Bank-promoted programs of lowering corporate taxes and royalties, and giving many concessions and incentives to transnational mining companies in the name of attracting foreign investment.

Many of the best tools to fight against dependency, such as development planning and import-substitution-industrialization, have either been actively repressed by programs like structural adjustment, or pushed into the margins by the dominance of neoliberal thought and “free market” policymaking practices. These tools were widely deployed by early post-independence governments to assert sovereignty over natural resources, before they were truncated by neoliberalism, which has reasserted extractive colonial dynamics.

In the early post-independence period, after formal decolonization, there was wide recognition from governments, across Africa and across ideologies, that the key task for development was to confront primary commodity dependence and its binding economic constraints. Kwame Nkrumah recognized the problem clearly in stating: “Africa is a paradox which illustrates and highlights neo-colonialism. Her earth is rich, yet the products that come from above and below the soil continue to enrich, not Africans predominantly, but groups and individuals who operate to Africa’s impoverishment.”

This recognition across the continent and the global South reverberated into mainstream policy institutions established in this era, such as the UN Conference on Trade and Development Planning or the African Institute for Development Planning. A key lesson from this era is the critical importance of restoring this recognition of the structure of African economies as a starting point for policy and activism.

Early post-independence governments worked to ensure that their economies accumulated for themselves by taking over the commanding heights of the economy strategically. This required asserting sovereignty, and therefore control, over their natural resources. The key mechanism for this was vesting the mineral wealth of their economies in the state. In Ghana, for instance, laws were implemented to declare that the mineral wealth or the wealth under the soil is vested in the Republic of Ghana and, it is the president who has custodianship.

Crucially, this nationalization extended beyond minerals to the mines themselves, even those already constructed. Taxation and royalties were also implemented to fund development and social programs, and the transfer of skills and technology was carefully facilitated.

Early post-independence leaders also saw beyond the hard economics of natural resource sovereignty to recognize its social dimensions. For instance, Kwame Nkrumah bought British mineral mines, which the UK had wanted to close as they did not make any profit. It came as a surprise to many that Nkrumah would purchase unprofitable mines, but his goal was not simple profit, but to create jobs as a social act to expand employment opportunities for the people.

This understanding of the social dimensions of dependency is key for the Post-Colonialisms Today project, as feminist politics is a central pillar. The basic recognition of dependency and its social dimensions, and the need to assert African agency over resources, provides a stronger basis to ensure power and agency for African women. At the same time, post-independence leaders must be critiqued for their patriarchal policies and tendency to sideline African women after independence despite their prominent role in anti-colonial struggles.

The early post-independence era also offers lessons on confronting the fragmentation of African economies. Their approach centered on industrialization: building African capacity to meet Africa’s needs rather than rely on the North to import high-value products.The key challenge many governments faced was generating the resources to support industrialization. Profits from exports from producing primary commodities were leveraged to support building factories, establishing institutional mechanisms, and funding social policies. The widespread use of tools such as the taxation of transnational corporations, protective tariffs, and royalties also generated resources.

However, a deeper problem often remained even as important efforts towards transformation were funded and planned: restoring internal linkages to African economies and making different sectors “speak” to each other once again. This challenge is particularly difficult and one many post-independence governments did not tackle sufficiently. As Post-Colonialisms Today researcher Akua Britum details, post-independence governments had to explore methods for funding development beyond taxation, such as reinforcing social programs to meet workers’ needs without reliance on large cash incomes.

Some countries paid particular attention to restoring these linkages. Post-independence Botswana, for instance, enacted policies to ensure the processing of minerals mined in the country must take place, at least in part, domestically. They also insisted that the procurement of inputs for mining must be sourced in Botswana. This meant that while the economy was temporarily reliant on producing minerals, they could still build up their industrial capacity and promote structural transformation.

There are limitations and layers of complexity to approaches in the post-independence era though: as Post-Colonialisms Today researchers Kareem Megahed and Omar Ghannam point out, post-independence land distribution in Egypt from landowning elite to the peasant class was reversed as peasants only received flimsy usufruct ownership. Under Kenneth Kaunda, Zambia nationalized their mines but still remained deeply controlled by international mineral value chains, meaning that even though they owned the copper mines outright, transnational copper companies managed to undermine their capacity.

Both the strengths and limitations of early post-independence policies offer a wealth of lessons for today’s struggles for control over Africa’s resources. Critically, the clarity in that period around the importance of African state control over natural resources offers a path forward for contemporary efforts––it must be wrestled away from transnational corporations today just as it was wrestled from colonial forces. With basic policies such as nationalization being halted outright, as seen recently in Zambia, this task remains as urgent as ever.

This article is part of the “Reclaiming Africa’s Early Post-Independence History” series from Post-Colonialisms Today (PCT), a research and advocacy project of activist-intellectuals on the continent, working to recapture progressive thought and policies from early post-independence Africa to address contemporary development challenges. It is adapted from a recent webinar on natural resource sovereignty which you can listen to here. Sign up for updates on the project here.

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Ideas

The Imperialist Soul of Social Democrats

Alfie Hancox writes how the apparently progressive post-war government in the UK which delivered unprecedented social security simultaneously undermined progressive political futures in the Global South – national liberation movements for land and resource sovereignty were thwarted. Hancox reveals Labour’s Aneurin Bevan’s role in deepening British imperialism.

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The working-class vision of socialism during this period may be blurred by the corruption of the ‘welfare state’—Kwame Nkrumah

As the popular national story goes, after the Second World War the British working class, seeking a just reward for their sacrifices, came together to win a fairer society by voting in the Labour government which built the welfare state. At the heart of this reputed ‘Spirit of ‘45’ was the architect of the National Health Service (NHS), Aneurin ‘Nye’ Bevan (1897–1960). Bevan has pride of place in the romanticised pantheon of the Labour left, and he is widely held to epitomise the party’s ‘socialist soul’. While often memorialised as a class warrior who once called for ‘the complete political extinction of the Tory Party’, behind ‘the myth of the miner prophet’ there lies a much more complex and contradictory picture of Bevan the statesman.

Britain’s post-war welfare settlement emerged against the backdrop of negotiated decolonisation – which was by no means a peaceful or straightforward process – and class compromise within the bounds of the capitalist nation-state was mediated by an enduring relationship with Empire. For Bevan, socialism was above all a ‘language of priorities’, and a critical overview of his parliamentary career reveals that colonised peoples in Africa, Asia and the Caribbean were often a subordinate element in his considerations, despite his long-standing friendship with Indian independence leader Jawaharlal Nehru.

It is also often forgotten that the welfare state was serviced by a migrant workforce extracted from Britain’s colonial ‘dependencies’, who were greeted upon arrival with racial-exclusionary impulses which were at times reinforced by Bevan himself. Similar ‘nativist’ tendencies remained present in the recent social democratic revival, demonstrating the need for an interrogation of the traditional Labour movement’s entanglement with imperialism.

The welfare state as neocolonial compact

Social welfare reforms delivered by the state have a contradictory class character. On the one hand, they constitute immediate gains for workers, but at the same time they assist in the reproduction of a value-creating labour force and represent concessions which may boost the legitimacy of capitalism. Welfare measures thus play a mediatory function in the push and pull of class struggle, the surge forward and the reactive containment. Interwar Britain was not wholly immunised from the social convulsions that shook continental Europe, and one wartime Conservative Member of Parliament warned in a famous speech: ‘If you do not give the people social reform, they are going to give you social revolution.’

The reforming Labour government of 1945–51 adopted a carrot and stick approach to class compromise, as the expansion of social housing and public education, and advent of free healthcare, was accompanied with a consolidation of workplace discipline. Bevan claimed to have received his political training in Marxism, but his true faith was in parliamentary democracy, and he believed that national industrial management laid the foundations for the construction of socialism ‘from above’. As a member of Clement Attlee’s Ministerial Emergencies Committee, the erstwhile trade union militant helped defeat a strike wave in the newly nationalised industries (a response to efficiency drives), using the Supply and Transport Organisation which two decades earlier helped beat back the General Strike of 1926.

Britain’s post-war welfare settlement emerged against the backdrop of negotiated decolonisation – which was by no means a peaceful or straightforward process – and class compromise within the bounds of the capitalist nation-state was mediated by an enduring relationship with Empire

While welfare concessions reflect the domestic class balance of forces, this is only one part of the story. As the British New Left historian John Saville identified in 1957, ‘the flexibility and manoeuvrability of the ruling class’ in charting a new social consensus had ‘been derived from the possession of the world’s largest Empire.’ It was this situation which enabled the Labour government to square the circle of maintaining (relative) class peace at home, without eliminating capitalist exploitation. The Pan-Africanist Kwame Nkrumah, in his seminal 1965 study Neo-Colonialism, explained how the governing elite in Europe and North America found a means to deal with social demands at home after the war:

A deliberate attempt was made to divert colonial earnings from the wealthy class and use them instead generally to finance the ‘Welfare State’ … this was the method consciously adopted even by those working-class leaders who had before the war regarded the colonial peoples as their natural allies against their capitalist enemies at home.

Immediately following the war, Britain was facing a currency balances crisis that called Labour’s social plans into question. Bevan was not explicit about where the money for Attlee’s ‘New Jerusalem’ would come from, but his colleague Evelyn John Strachey, a former Marxist and Labour’s Minister of Food, was more forthright. During a parliamentary debate on a Colonial Development bill in 1948, the year of the NHS’s founding, Strachey concluded that ‘by hook or by crook, the development of primary production of all sorts, in the Colonial areas, Colonial territories and dependent areas in the Commonwealth … is, it is hardly too much to say, a life and death matter for the economy of this country.’

A deliberate attempt was made to divert colonial earnings from the wealthy class and use them instead generally to finance the ‘Welfare State’ … this was the method consciously adopted even by those working-class leaders who had before the war regarded the colonial peoples as their natural allies against their capitalist enemies at home.

The Attlee government essentially pursued a policy of issuing ‘IOUs’ to the colonies in return for the dollars earned from key exports such as rubber and tin from Malaya and cocoa from Ghana. Britain’s post-war reconstruction employed ‘a more systematic exploitation of colonies than at any previous time in imperial history’ – with the active support of the labour bureaucracy. The trade union leader, Ernest Bevin, declared: ‘I am not prepared to sacrifice the British empire [because] it would mean that the standard of life of our constituents would fall considerably.’ As the Trinidadian Marxist George Padmore put it, these labour lieutenants of imperialism wanted to turn the British working class into collective ‘shareholders of the Empire.’

British socialism’s civilising mission

Writing in the socialist newspaper Morning Starthe trade unionist and historian Graham Stevenson has attempted to defend the legacy of the welfare state, and detach it from Attlee’s imperialist adventures in Korea, Malaya and Iran, by arguing that ‘foreign policy was not in Nye Bevan’s remit’. It is well known, however, that Bevan had wanted the Colonial Office, and he was an influential voice in international affairs as the charismatic leader of the ‘soft left’ Tribune faction.

Though Bevan’s rejection of the pre-war colonial status quo did put him at variance with the Labour right, he nevertheless stressed he was ‘against any proposal for complete self-government’ until the colonised countries had endured sufficient tutelage under British parliamentary democracy. He believed in the civilising mission of the ‘Socialist Commonwealth’, and in 1948 declared that with the advent of the National Health Service Britain had achieved ‘the moral leadership of the world’. This paternalistic mindset, which smacked of the ‘white man’s burden’, was typical of the ethical socialist tradition in Labour, and distanced Bevan from the approach of the Comintern-affiliated League Against Imperialism and the Manchester Pan-African Congress, which both rejected the ‘Enlightened’ colonial doctrine of trusteeship.

Bevan never challenged the unequal economic relationship with the ‘dependencies’ which characterised Britain’s free trade imperialism, or what he preferred to call ‘the legitimate claims of world commerce’. The superior British capacity for ethicizing self-interest was shared by Bevan’s wife and fellow MP Jennie Lee, who said at Labour’s annual conference in 1956, without a hint of irony: ‘We have to work for the day when there will be a higher standard of living here, a higher standard of living in the colonies, and when as free and friendly nations they will want us to be their bankers.’

It was in his attitudes to the Middle East that Bevan’s more overtly imperialist leanings came to the fore. While opposing the Anglo-French invasion of Egypt, Bevan nonetheless expressed his outrage when President Gamel Abdel Nasser, who he racistly dubbed ‘Ali Baba’, nationalised the Suez Canal used to transport ‘our oil’. In justifying the Zionist colonial project that violently displaced 700,000 Palestinians, Bevan also argued in the Cabinet that ‘it was not necessarily true that we must avoid estranging Arab states. A friendly Jewish state would be a safer military base than any we should find in any Arab state’. He thought that Europeanised Jewish settlers could shake up the ‘semi-medieval institutions’ of the Arab world and prepare the grounds for socialist democracy, betraying a racialised view of civilisational development.

Bevan’s wavering stance on colonial liberation didn’t make him an outlier on the Labour left. For example, it was the former treasurer of the Movement for Colonial Freedom, Anthony Greenwood, who as Labour’s Colonial Secretary oversaw the ousting of British Guinea (Guyana)’s socialist Premier Cheddi Jagan. The Communist Party theoretician Rajani Palme Dutt identified this tried and test pattern of western social democracy, whereby ostensibly left-wing spokespersons are ‘given positions in the imperialist machine such as would not only gag them from expressing anti-imperialist sentiments but compel them to undertake the official duty of defending imperialist policies’.

As the British New Left historian John Saville identified in 1957, ‘the flexibility and manoeuvrability of the ruling class’ in charting a new social consensus had ‘been derived from the possession of the world’s largest Empire

Ultimately, the government that delivered unprecedented social security at home simultaneously thwarted progressive political futures in the Global South – national liberation movements for land and resource sovereignty, and regionalist aspirations like those fleetingly concretised in Nkrumah’s Union of African States. Labour’s inglorious colonial record came up one time when Bevan was lecturing the Conservatives on their imperial policy. When he mentioned the imprisonment of Nkrumah, Tory members opposite reminded him that the Attlee government he served in as Health Minister was responsible! Bevan brushed this off, replying: ‘Well, we shoved him in gaol. If honourable members will restrain their hilarity for a moment, I said that this is part of the classic story of these struggles.’ This glib response omitted the killing of unarmed protestors in Ghana, which took place months before the arrest of Nkrumah. The West African Students’ Union, of which Dr. Nkrumah was a former member, noted that US imperialism often appeared a lesser threat to colonial independence than ‘British Socialism’.

An additional pillar of Attlee’s foreign policy was the backing of Western Europe’s remilitarisation under the US Marshall Plan, enabling the British Communist Party to declare that Labour’s welfare state was really a ‘warfare state’. Before WWII, Bevan had alienated the Labour leadership by calling for a United Front with communists against the fascist threat in Europe. However, his sympathies had changed with the onset of the Cold War, as anti-colonial movements supported by the Soviet Union destabilised the hegemony of the western imperial powers; and the Bevanites became enmeshed in an ideological struggle pitting Occidental social democracy against Marxism-Leninism. Bevan’s 1951 ‘rebellion’ against Labour’s militarism was not a protest against the genocidal proportions of the Korean War – he had in fact fully supported the Anglo-American invasion of the Peninsula – but because bloated defence spending was now cutting into his health service.

Empire and the National Health

The welfare state also carried the imprint of Empire domestically. While healthcare is a basic social necessity, historically the state provisioning of medical services has been framed in terms of labour productivity and, from the late-nineteenth century, imperialist ideologies of racial hygiene. The Liberal economist William Beveridge’s 1942 blueprint for the welfare settlement recommended that ‘good stock should be allowed to breed while bad stock would be ameliorated through state intervention’, and similar eugenics-influenced sentiments permeated the Labour movement through the Fabian Society.

The nationalisation policies in 1945–51 were not in any meaningful sense socialist, being administered from above by the capitalist state. While Bevan described the National Health Service as ‘pure socialism’, it was compromised from the start by the continued existence of independent contractors and retention of private practice. Nevertheless, the post-war reforms were a step forward in terms of collective social security, and they boosted loyalty to the nation-state that administered them: welfare came ‘wrapped in the Union Jack’. The language of socialism was co-opted and degraded by what Tom Nairn termed Labour’s ‘nationalization of class’, and lost in the process of the patriotic social compact were the Marxist values of working class self-empowerment.

Notions of national belonging and entitlement in Britain became increasingly racialised after the war, and as Satnam Virdee reminds us, the apogee of British social democracy ‘was also the golden age of white supremacy [and] legal racist discrimination’. When migrant workers from the non-white ‘New Commonwealth’ were induced to bolster Britain’s public services and stagnating industries, they were met with a racist ‘colour bar’ in employment and housing, often reinforced by the white-dominated trade unions. In 1948, a year that saw violent attacks on Black residents in Liverpool, Bevan wrote that if ‘colonial subjects come here on their own responsibility’ they ‘cannot complain if it is not all plain sailing’.

An informal caste system was built into the NHS itself, with workers of colour restricted to the lowest-paid employment grades, regardless of their level of training. A Brixton-based Black feminist group described how the health service was like a colony in the way it was run: ‘in the head of the black nurse from the Caribbean is the echo of slavery; in the head of the Asian nurse is the servitude to Sahib and Memsahib.’ Britain was simultaneously draining skilled medical labour from developing countries, the effects of which were described in Walter Rodney’s How Europe Underdeveloped Africa. The hyper-exploited labour of Black and Brown women was unacknowledged by Bevan, who ascribed the NHS’s success to ‘the vitality and genius of the British people’.

Healthcare was quickly propelled to the centre of popular anti-immigrant discourses, and only a year after the NHS’s inception Bevan succumbed to nativist pressures by assuring voters that he’d ‘arranged for immigration officers to turn back aliens who were coming to this country to secure benefits off the Health Service’. The image of non-British ‘foreigners’ exploiting the NHS was a trope later deployed to great effect by Conservative MP Enoch Powell in his infamous ‘Rivers of Blood’ speech.

The welfare state also carried the imprint of Empire domestically. While healthcare is a basic social necessity, historically the state provisioning of medical services has been framed in terms of labour productivity and, from the late-nineteenth century, imperialist ideologies of racial hygiene.

Bevan’s capitulation reflected a failure to offer a principled counter to anti-immigration rhetoric. His celebrated essay ‘In Place of Fear: A Free Health Service’ was riven by a tension between the defence of ‘the collective principle’ in terms of socialist universalism, and a cost-benefit approach that stressed immigrants’ contributions to ‘national revenues’, and the expenses that would be incurred by passport checks at hospitals. When Bevan rebuked the Trades Union Congress’s call for immigration restrictions after the 1958 racist riot in Notting Hill, this was not on grounds of proletarian internationalism, but the potential damage it would do to the image of the Commonwealth as ‘the greatest constitutional experiment in the history of nations’.

The legacy of Empire persists in the health service today, as demonstrated by the revival of medical racism in the Coronavirus context. The NHS is also still dependent on the labour of precarious migrant workers, now extracted from developing countries such as the Philippines and Nigeria. The present struggle to defend healthcare services in Britain thus needs to be coupled with a historical awareness of the inherent dangers of seeking social reform within the confines of the imperialist nation-state. We should look beyond the elitist parliamentary socialism of Bevan, to the alternative politics of metropolitan anti-colonialists like Dutt and Padmore who sought not a class settlement within the parameters of capitalist competition, but the levelling of wages and conditions across national and racial boundaries. The experiences of the 1970s–1980s further demonstrated that rank-and-file struggles in the health sector, often instigated by low-paid Black ancillary workers, can galvanise the labour movement in a profoundly progressive manner. We can draw on these lessons, and reconnect with more radical, worker and patient-driven visions of socialist healthcare which target the social roots of ill-health intrinsic to capitalist exploitation.

This article was first published in the Review of African Political Economy Journal.

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Neocolonial Components of Algorithmic Capitalism in Africa Today

More than half a century after Kwame Nkrumah first articulated his magisterial critique of neocolonialism, Scott Timcke argues his critique remains just as relevant in the analysis of present-day developments of capitalism in Africa.

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Neocolonial Components of Algorithmic Capitalism in Africa Today
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The present convergence of finance and wireless technology has generated considerable enthusiasm in development circles about the promise of connectivity and FinTech to improve quality of life and create wealth on the African continent. The prototypical example that proponents point to is M-Pesa, a service run in Kenya by Safaricom. Launched in 2007, M-Pesa is a form of mobile banking which uses cellphone accounts as a financial service, permitting transfers and credit extension facilities. Initially funded by the United Kingdom’s Department for International Development (DFID), the service was commercialized through a joint venture by Vodafone and Safaricom.

By 2018 there were 30 million customers and 6 billion yearly transactions. By most assessments, the service is a success. This blogpost revisits that conclusion by asking how these kinds of FinTech technologies, in their current configuration, perpetuate neocolonial relations. Replacing direct military rule, neocolonial relations can be understood as the coordinated exploitation of developing countries by advanced capitalist ones through their clout in international political economy. If such a claim at first appears like a stretch because it appears conspiratorial, it is worth recalling how European imperial and colonial practices were naturalized and normalized for most of modernity.

While ‘the methods of neo-colonialists are subtle and varied’ let us begin with the obvious. Desires to ‘bring Africa online’ in the 2000s had to confront stark realities born from both (i) the legacies of colonial infrastructure planned primarily to support resource extraction or settler communities, and (ii) the IMF imposed structural adjustment policies that slashed state maintenance budgets and social, economic, and political infrastructure. So, when digital neo-modernization advocates maintained that without access to the internet people in the Global South would face a digital divide which would exacerbate poverty that stemmed from the already asymmetrical relations in the global system, they overlooked the very history that gave rise to those inequalities and deficiencies in the first place. But this rhetoric of digital inclusion tended to overlook the historical materialist method at the heart of discussions about digital inequalities. Indeed the ‘connectivity paradigm’ currently promoted by the World Economic Forum and Facebook focuses on building infrastructure to create markets and customers, which will bridge the digital divide. However, this conceptualization ignores the insights of the scholarship around uneven and combined development or the research on the spatial fix required by capitalism to stall social problems in metropoles. In other words, for all the discussion about connectivity when digital neo-modernizers deny the connections of history; they deny how some polities are rich because others are poor.

Take the case of rising household over-indebtedness mediated by micro-lending platforms like M-Pesa. Sociological studies of the working-class in Kenya, like that by Kevin Donovan and Emma Park, demonstrate how these digitally mediated financial markets create debt traps for this class. In effect their earnings are used to pay off debts and more loans are taken against future earnings to service existing debts. This digitally mediated indebtedness of the working class is facilitated by the combination of the increase in the volume of rents extracted in the modern financial economy as well as, crucially, analysis of user generated data to assess their creditworthiness. In short, social reproduction is articulated through the logic of this financial system in turn causing severe maldistribution. Through this employment of FinTech ‘poverty is understood as a new frontier for profit-making and accumulation.’ These are the kinds of processes that Dan Kotliar and Abeba Birhane have in mind when they write about data orientalism and the algorithmic colonization of Africa respectively.

While the excellent critical literature on FinTech in Africa is growing, too often this work is lost in the analytical (and political) noise of neo-modernization. As the connectivity paradigm illustrates, this ideology has a naïve comprehension of technology as a social form. By contrast, when approached from a critical perspective, FinTech is not confined to reconfiguring or extending new services. Rather it involves creating new markets, introducing new machinery to reduce labor costs and more generally aiding inter-sector competition. But most importantly, FinTech is concerned with enclosing and capturing the value in existing informal lending practices the African working class has already built themselves. For example, South African informal saving networks are estimated to hold US$3 billion. To put it another way, the purpose of FinTech is to readjust the balance of power between capital and labor. This means that the central issue is not about the outcomes this technology produces, nor is it even a matter of access. The fundamental question is about how control rights of this technology reside with a minority of shareholders and how their interests are adjacent to the interests of their firms’ customers. And through indebtedness, FinTech is effectively creating a ‘digital-creditor-debtor-divide’ in Africa.

There is considerable value in revisiting Kwame Nkrumah’s Neo-Colonialism, the Last Stage of Imperialism to understand the neocolonial components of algorithmic capitalism (informational or cybernetic capitalism). Published in 1965 and written in the wake of British Prime Minister Harold Macmillan’s 1960s Wind of Change speech in the Parliament of South Africa in which the Conservative British government signaled that is would no longer actively oppose independence movements, neocolonialism as Nkrumah described it, was a technique of indirect rule kept in place through a combination of economic arrangements and treaties, innovations in communication technology, and with the assistance of local sympathetic agents. In short, Nkrumah argued that European politicians like Macmillan and Charles de Gaulle offered disingenuous statements about the formal end of colonial rule, in part because newer mechanisms of colonial exploitation were possible to implement.

As a quick illustration of the durability of neocolonialism as a form of imperial rule, consider how, sixty years after formal political independence, the CFA franc has kept former French colonies under the influence of France monetary policy and structuring the economic relationship between France and these former colonies. Fanny Pigeaud and Ndongo Samba Sylla’s recently published Africa’s Last Colonial Currency concretely shows how 162 million people in 15 states have France mediate their monetary policy. When paired with the frequent military interventions that still take place, as Nkrumah accounted for, African populations continue to be subjects of scientific and financial experimentation by global powers.

Even reviewing Nkrumah’s sequence of chapters gives an early indication of the larger argumentation and stakes of his thesis. “Exercised through economic or monetary means” and “by a consortium of financial interests” imperialist finance and its currencies enable capitalists to establish corporations dedicated to extracting raw materials from concessions. By pressing labor—whose wages are artificially depressed through monopoly in economic sectors and the monopsony of labor (a market situation in which there is only one buyer) like in many African extractive economies—the profits of which are repatriated to metropoles through monetary zones and foreign banks. Indeed, at the time the book even caught the eye of the CIA in November of 1965. Nkrumah’s government would not last even four more months. It was deposed in February 1966 by a military coup. While it is difficult to adequately discuss Ghanaian politics in the 1960s in this venue (and more generally we must resist mono-causal explanations) it is nevertheless telling that Nkrumah’s removal set in motion a ‘diplomatic realignment’ that benefited the West.

Indeed, it is this kind of protracted material struggle between oppressor and oppressed that gave rise to the neocolonial critique. In the 1989 edition of The Black Jacobins, CLR James included an appendix ‘From Toussaint L’Ouverture to Fidel Castro’ in which he writes that about the intellectual encounter between the West Indians like Marcus Garvey and George Padmore and Africans like Jomo Kenyatta and Kwame Nkrumah. Calling this “one of the strangest stories in any period of history”, James described how encounters between sets of migrants in European cities led to the formation of groups like the International African Service Bureau, as Theo Williams has previously discussed on roape.net. Being in metropoles these Pan-Africanists had front row seats to witness the transition from ‘the old colonial system’  that had stood since the 1884-1885 Berlin Conference to ‘neocolonialism’ that emerged after World War Two. Through their ‘criticism of the weapon’—to employ a line from Marx’s Critique of Hegel’s Philosophy of Right—the Pan-Africans made their theory ‘a material force.’

While there are several tendencies in African studies, neocolonialism and neo-modernization represent two divergent conceptualizations of actions occurring on the continent. Despite protestations otherwise, neo-modernization is institutionally, philanthropically, and academically entrenched. It provides the initial frame of reference for design of empirical studies. And it is precisely “because they have already established a near monopoly of what is written on the subject” to enroll some of Walter Rodney’s remarks, that space is made for the neocolonial critique. This critique can, for example, show how local intermediaries facilitate neocolonial rule. Walter Rodney called these local agents’ allegiance to, or cynical cooperation with neocolonial powers, part of the ‘elementary conditions’ of neocolonial rule. For example, as it applies to algorithmic capitalism, the Kenyan government owns 35% of Safaricom. This means that the state gains revenues from the indebtedness of its citizens and the commodification of their data that Donovan and Park describe. But here arises a contradiction, because these revenues may be offset by costs spent to address the social consequences of indebtedness like homeless and mental illness. Indeed, depending upon their mandate, parts of the Kenyan bureaucracy are likely working at cross purposes from one another. This adds conflicting interests to any intra-governmental discussions on how (or if) to regulate lending apps like M-Pesa.

To recap, aside from the skews and parameters that arise from internal properties, it is true that there is nothing intrinsically exploitative about digital technology. That said, due to the global supremacy of the private property regime, the meaning and operation of these digital infrastructures is overdetermined by capitalist values. Accordingly, using neocolonialism in studies of digital sociology can help us focus less on the mechanisms of this or that platform, and more on how platforms are part of the basic forms of a society that shape social relations. In this vein, neocolonialism provides a different methodology—a counter-narrative that foregrounds the experience of the oppressed—that comes to vastly different conclusions to the neo-modernization perpetuated in the elite ‘fintech-philanthropy-development complex’.

This complex promotes platforms to advance economic liberalization and skirting existing regulations believing that such policy courses can nominally improve material conditions for Africans. However, in practice due to platform mediated financialization setting up conditions of perpetual insolvency, the lived-experience of the African working class is delimited by the interests of metropolitan capital, an arrangement that is reminiscent of the same kinds of subordination that Nkrumah described in the latter half of the 20th century. Much like in the 20th century this most recent iteration of neocolonialism will have long reverberations.

This article was first published in the Review of African Political Economy Journal.

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