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Fiddling, while Kenya burns

8 min read.

The Jubilee administration gambled on mega-infrastructure projects to expand the economy. It has borrowed heavily to finance them. Over the past five years, it has conjured up a misleading set of economic data that paints a rosier picture than the grim reality now confronting the country. What is this fantasy in aid of? By DAVID NDII

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Fiddling, While Kenya Burns
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After all the hullaballoo, and the brazen manipulation of the vote on Uhuru Kenyatta’s presidential veto of parliaments proposal to defer VAT on fuel for another two years, you would be forgiven to think that the government scored big in the battle to shore up its terrible and rapidly deteriorating finances. It did not. Much to the contrary, the melodrama was an inconsequential sideshow.

Alongside the president’s memorandum, the Treasury tabled a supplementary (i.e. revised) budget that which elicited screaming headlines: the government had “slashed” by a whopping 55 billion shillings from Sh. 3.026 trillion to 2.971 trillion. A critical reader would immediately have noticed that a 1.8 percent reduction hardly qualifies to be a “slashing” — trimming would have been accurate. Of note, the supplementary budget the Treasury did not provide a complete budget revision, but only a high level expenditure summary with five budget lines.

But the Treasury also published its regular Budget Review and Outlook (BROP) paper that contains the detailed budget data. As is customary with our National Treasury, the numbers in the two tables are not identical. Even the numbers in different tables of the BROP are not identical, although the differences are not material— it’s mostly sloppiness, and occasionally, sleight of hand. I follow the BROP figures (See table below) as they are more comprehensive and also the more up to date of the two, if only by two days. Two things to note.

First, the expenditure cuts are less than the revenue forecast which is revised downwards by Sh. 96 billion, while expenditure is revised downwards by Sh. 83 billion. Even though the 10 billion difference is not such a big sum, it’s unclear why the government would go to such lengths to table an austerity budget that increases the deficit.

More significantly, the revenue forecast is still unrealistic. The budget was based on revenue growth of 31 percent, comprising of 30 percent and 36 percent increase in tax and non-tax revenues respectively, which has now been scaled down to 25 percent, with tax and non-tax revenue forecast down to 24 and 28 percent respectively. These forecasts are out of touch with reality. Tax revenues increased only three percent and non-tax by 12 percent for a total revenue increase of four percent. This, as we will see shortly, is not an anomaly—it is a significant trend.

The budget was based on revenue growth of 31 percent, comprising 30 percent and 36 percent increase in tax and non-tax revenues respectively, which has now been scaled down to 25 percent, with tax and non tax revenue forecast down to 24 and 28 percent respectively. These forecasts are out of touch with reality.

In its current financial circumstances, it is not just sensible that the government be prudent, it is imperative. There will be no harm done if revenue exceeds target, but unrealistic revenue forecasts result in government spending money it does not have. This is how the government ends up accumulating pending bills, which, according to the private sector lobby KEPSA, are now in the order of Sh. 200 billion.

Trend growth gives you a revenue forecast of Sh. 1.55 billion. An optimistic one, assuming a most favorable economy and factoring in tax rises, would double the growth rate to 8 percent, still comes to Sh. 1.62 trillion. I would work with Sh.1.6 trillion.

In its current financial circumstances, it is not just sensible that the government be prudent, it is imperative…Unrealistic revenue forecasts result in government spending money it does not have…The government ends up accumulating pending bills… now in the order of KSh 200 billion.

Herein lies the problem. The Sh.1.6 trillion revenue forecast is Sh. 250 billion short of the revised recurrent budget. Interest cost (Sh. 400 billion), pensions (Sh. 90 billion) are non-discretionary (i.e. mandatory) and the wage bill (Sh. 444 billion) which does not give you much room to manoeuvre already add up to Sh. 930 billion. This leaves a balance of Ksh. 660 billion to fund counties (Sh. 367) and the national government’s operations and maintenance (O&M) outlays (Sh. 530 billion) totaling Ksh. 960 billion.

The only question here should be where the axe falls. There are only two options either the axe falls on the national government, or to share the cuts with the counties. The latter is obviously more sensible than the former. The equitable way of doing this is to net out the counties wage bill which is about Sh.140 billion, and share the balance proportionately. This math works out to 33 percent of the national governments O&M budget and the transfer to counties net of wage bill which translates to national government O&M budget of Sh. 202 and counties Sh.78 which means that the transfers to counties reduce from Sh. 376 to Sh. 218 billion. This is the reality that the government has refused to face. It should also be readily apparent that the tax measures that the government rigged through parliament are not a solution to its financial woes.

The Jubilee administration bet the farm on mega-infrastructure projects to expand the economy and has borrowed heavily to finance them. Infrastructure investments are supposed to crowd in productive private investment which in turn expands the tax base, which in turn generates the revenue to pay the debts. But far from increasing, the tax take is falling. The preliminary data treasury has published shows a sharp decline to 15.4 percent last financial year, down from 17 percent in the previous one. A 1.6 percentage-point decline in a year looks improbable— it is more likely that they have over-estimated GDP. This and the reason why, will be confirmed shortly. Still even the one percentage-point decline from 18 to 17 percent in five years is itself a serious problem. It translates to a forgone revenue of Sh. 77 billion in FY16/17 (see chart below). If we assume that the 15.4 figure is an underestimate and instead apply a revenue yield of 17 percent last year, the revenue yield gap drops to a more plausible Sh. 80 billion. Why?

Revenue to GDP ratio, % (LHS) and implied revenue gap Sh. billion (RHS)

First, a lot of the borrowed money was stolen outright and many, perhaps all the projects have been done at highly inflated costs. We still do not have any physical evidence of what we spent the proceeds of the first eurobond, Sh.190 billion (US$ 2.2 billion) proceeds of the first eurobond issue on. Government claims that the money was channeled into the development budget and absorbed in one financial year. Not only is it simply not possible to build things at that rate, the funding for all the projects done for that year is accounted for without the eurobond money. This is the reason that the special audit of the eurobond has never come out.

A lot of the borrowed money was stolen outright and many, perhaps all, of the projects have been done at highly inflated costs. We still do not have any physical evidence of what we spent the proceeds of the first Eurobond on…

The national investment rate has remained stagnant at about 18 percent of GDP, against a requirement of 25-30 percent of GDP. We also know that credit to the private sector collapsed suddenly three years ago, and has been comatose since. The credit market has become a pyramid scheme, where interest on government securities is re-invested in government securities. As with all pyramid schemes, this one too will come to grief.

In short, the reason why the revenue yield has declined is because the productive base of the economy has not expanded. The Jubilee administration bet the farm on a state of the art milking machine, even built a brand new shed to go with it, and now expects the cows to produce more milk. It is the same cows. And now the debt repayments and electricity bills are eating into the working capital forcing the farmer to cut back on feed. They now lament that the milkman (KRA) has a new machine but is still unable to produce more milk.

But the National Treasury’s growth projections are as panglossian as ever. In the original budget forecast, the nominal GDP expands from 7.7 trillion in FY16/17 (the latest actual data) to Sh. 12.6 trillion in FY20/21 a growth of 64 percent or 17 percent per year. Nominal GDP is the denominator used to calculate budget financial ratios. This translates to a real economic growth rate of 7.4 percent per year (this is obtained by applying an inflation adjustment known as GDP deflator. I have applied the average deflator for the last five years). Average growth rate for the last five years—5.56 percent. Growth has topped seven percent only once in the last thirty years— 2007. Now comes the remarkable part. In the revised projections, nominal GDP has been adjusted upwards to just under Sh. 13 trillion in FY20/21. It is conceivable that the mandarins are factoring higher inflation— one hopes so because otherwise it translates to a delusional eight percent per year growth rate. The reason for the sharp fall in the revenue ratio last year is now clear— GDP has been inflated on purpose.

What is this fantasy in aid of? Their purpose is to reduce the budget financial ratios without budget cuts. This way, they are able to “get away” with fiddling with the actual budget figures and still achieve “fiscal consolidation.” This year, the deficit in the revised budget is adjusted upwards by 14b from 603 to 622 billion but it as a ratio to GDP it declines from 6.3 to 6.1 percent on account of GDP being adjusted upwards by 321 billion. In FY21/22 the nominal GDP projection is jerked up 17 percent which excluding an inflation surge, brings the real growth rate for the period to 8.4 percent. This enables the mandarin to “bring down” the budget deficit 3.4 percent, even as expenditure grows by Sh.750 billion. A serious sensible projection would have projected 5 percent real growth. A 3.4 percent of GDP deficit based on this would have required expenditure to be adjusted downwards by Sh. 400 billion, or revenue to rise by similar amount or a combination of the two.

The budget, both the original and supplementary one, is best summed as “do nothing” strategy. If you are not up to changing reality, change the numbers.

We are compelled to wonder who this tomfoolery is meant for? It is not the public, they don’t get to see these numbers, let alone read and understand them. It cannot possibly be the IMF, the credit rating agencies or the markets. If anything, this is nothing short of showing the markets a middle finger. That to my mind, leaves only one constituency— their political bosses. The mandarins are telling them what they, the political bosses, want to hear.

My first column calling out the Jubilee’s administration fiscal recklessness, published in August 2014 was subtitled “Lessons from Ghana”.

Three days ago, the Ghanaian government announced that it was planning to issue $50 billion “century bonds” over the next few years, starting with a five to ten billion issue by the end of the year. A “century bond” is a bond with a hundred year maturity. Only three developing countries—China, Mexico and Argentina_ have sold century bonds. Ghana’s issue will be the biggest. A 10 billion dollar issue is a fifth of Ghana’s GDP and would cost a billion dollars in interest a year. The markets did not like the news. Immediately, the yields on Ghana’s eurobond yields shot up (which is another way of saying the value of its bonds fell) and the Cedi fell 2.6 percent. The Financial Times summed it up thus: “In capital market terms, this is no this is not just a moon shot, it’s a mission to Mars.” The FT story was headlined, “Someone tell Ghana this it isn’t 2017 anymore.”

If you are not up to changing reality, change the numbers. We are compelled to wonder who this tomfoolery is meant for? It is not the public, they don’t get to see these numbers, let alone read and understand them. It cannot possibly be the IMF, the credit rating agencies or the markets. If anything, this is nothing short of showing the markets the middle finger. That to my mind, leaves only one constituency— their political bosses. The mandarins are telling them what they, the political bosses, want to hear.

Argentina issued its century bond last May. The issue was oversubscribed four times. A year down the road, Argentina is in the grip of another financial meltdown. Inflation is raging at 3.5 percent a month, the Central Bank has raised the benchmark interest rate to 60 percent and the Peso, down 52 percent on the dollar this year, is still falling. What changed? In 2015 Argentina elected a new president who promised to impose macroeconomic discipline. Argentina’s legendary fiscal laxity has led to eight debt defaults, including the biggest sovereign default in history in 2002. The markets took the new president seriously. Earlier this year, he showed signs of backtracking — revising inflation target upwards and lowering interest rates. Market sentiment turned. Argentina had plenty of foreign exchange reserves, but within weeks it was looking for lifelines everywhere including its perpetual nemesis the IMF which it has approached for a US$ 50 billion bailout.

Someone needs to tell Jubilee this isn’t 2017 anymore.

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Lava Jato: The CIA’s Poisoned Gift to Brazil

Recently leaked conversations show shocking levels of US involvement in Brazil’s Lava Jato corruption case against former president Lula da Silva.

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Lava Jato: The CIA’s Poisoned Gift to Brazil
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“I’m going to celebrate today.”— Laura Tessler

“A gift from the CIA.”— Deltan Dallagnol

These recently leaked quotes refer to the arrest and jailing of former Brazilian President Lula da Silva in April 2018 that changed the course of the country’s history. It opened the door to far-right candidate Jair Bolsonaro, who came to power with the support of the United States and powerful corporate interests.

Although US involvement in the once heralded anti-corruption investigation operation Lava Jato has been publicly known for some time, leaked conversations between its prosecutors like Tessler and Dallagnol and Judge Sergio Moro have revealed a level of collusion that has shocked even the keenest observers.

A petition filed with the Federal Supreme Court (STF) by the defence of ex-president Lula presents such new evidence that ex-judge Sergio Moro colluded with foreign authorities in conducting the process which led to the arrest of the Workers Party leader, and his subsequent barring from a run for the presidency in 2018.

In the latest leaked Telegram conversations, which are now official court documents, the level of illegal collaboration visible between the Lava Jato task force and the internationally promoted judge is the most flagrant yet, and more valuable for Lula’s defence than chats first published by the Intercept in 2019.

The latest excerpts could result in the politically motivated case against Lula being annulled.

Ex-judge Sergio Moro and head of the Lava Jato task force Deltan Dallagnol have been accused of “treason” for their illegal collusion with United States authorities. In 2017, deputy US attorney general Kenneth Blanco boasted at an Atlantic Council event of informal (illegal) collaboration with Brazilian prosecutors on the Lula case, citing it as a success story. In 2019 the U.S. Department of Justice attempted to pay the Lava Jato task force a $682 million dollar kickback, ostensibly for them to set up a “private foundation to fight corruption”.

On April 5, 2018, the day Lula was arrested by Moro, prosecutor Isabel Grobba revealed the news: “Moro orders Lula to be arrested,” and Deltan Dallagnol replied: “Before MA (Supreme Court Justice Marco Aurélio) screws everything up.” Dallagnol was referring to what Marco Aurélio was then preparing; a Supreme Court vote which would potentially see defendants such as Lula freed from jail pending their second appeal.

Had this passed, it would’ve enabled Lula to run for president at the 2018 election. Polling at that point showed him twenty points ahead of nearest rival, U.S. backed far right candidate Jair Bolsonaro.

After coming to power, Jair Bolsonaro and Sergio Moro — who had been appointed as Bolsonaro’s Justice Minister — made an unprecedented visit to CIA headquarters in Langleywith the backing of Wall Street. The FBI has also massively increased its reach in Brazil since the election and was in direct, legal and illegal collaboration with Lava Jato task force since its inception, with its main liaison and now head of FBI’s international corruption unit, Leslie Backschies, boasting that it had “toppled Presidents in Brazil”.

Cooperation between Brazilian and United States authorities, including the use of FBI hackers to break encrypted files, had become clear long before the arrest of the ex-president. Messages from August 31, 2016, when Dilma Rousseff faced her final impeachment hearing, already prove this.

FBI use of hackers in Brazil dates back to 2012 when they encouraged a group from ‘Anonymous’ to attack Brazilian government and corporate institutions and online infrastructure, in a staged protest against “corruption”. Sérgio Bruno revealed: “Janot (Prosecutor General) was with people from the US Embassy last week and it seems that he commented on this [breaking into files via illegal means], without going into details (sic)”.

On the same day, Brazilian prosecutor Roberson Pozzobon also mentions the task force’s cooperation with FBI hackers: “We asked to see if the FBI has the expertise to break (into encrypted files)”.

The following year, Janot toured the world promoting Operation Lava Jato at investor events, both in the United States, and at the World Economic Forum in Davos, describing the now-disgraced anti-corruption operation as “pro-market”, a political position it was not supposed to have. Cooperation with Swiss and Swedish authorities is also evident from the leaked conversations.

A recent announcement has stated that Lava Jato, or Car Wash, as it was relentlessly promoted in the English-speaking media, will be shut down completely later this year, having helped wreck Brazil’s economy and eviscerate its democracy.

Editorial note: The following is an edited version of the article originally published by Brasil Wire. It has been amended to provide context for the recent developments in the Lava Jato corruption case. You can find all of Brasil Wire’s articles on operation Lava Jato here.

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Is Balkanisation the Solution to Somalia’s Governance Woes?

Thirty years after the civil war of 1991, Somalia has still not been able to develop a functional governance structure that delivers services to the people. Federalism has also not delivered political stability. Is it time for Somalia to break up into independent clan-based states?

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Is Balkanisation the Solution to Somalia’s Governance Woes?
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When former prime minister Mohamed Abdullahi Farmaajo was elected president of the Federal Government of Somalia in 2017, many lauded his victory. Unlike his predecessors, Farmaajo was viewed as a leader who would unite the country because he had a nationalistic mindset and was someone who was not influenced by clan interests. Many believed that, unlike his predecessor, Hassan Sheikh, whose tenure was marred by corruption allegations and in-fighting, he would bring together a country that has remained fragmented along clan lines and endured internal conflicts for decades. He was also perceived to be someone who would address corruption that has been endemic in every Somali government since the days of President Siad Barre.

Sadly, Farmaajo’s tenure did not result in significant transformation of Somali governance structures or politics. On the contrary, his open hostility towards leaders of federal states – notably Jubbaland, where he is said to have interfered in elections by imposing his own candidate – and claims that corruption in his government had increased, not decreased, left many wondering if he had perhaps been over-rated. Now opposition groups have said that they will not recognise him as the head of state as he has failed to organise the much anticipated one-person-one-vote election that was due this month, which would have either extended or ended his term. This apparent power vacuum has caused some jitters in the international community, whose backing Farmaajo has enjoyed.

However, it would be naïve to assume that Farmaajo’s exit is a critical destabilising factor in Somalia, because, frankly, the president in present-day Somalia is merely a figurehead; he does not wield real power. The government in Mogadishu has had little control over the rest of the country, where clan-based fiefdoms and federal states do pretty much what they want, with little reference go Mogadishu. National security is largely in the hands of the African Union Mission in Somalia (AMISOM) forces, not the Somalia National Army.

The concept of a state that delivers services to citizens has also remained a mirage for most Somalis who are governed either by customary law known as xeer or the Sharia.  Some have even argued that with its strict codes and hold over populations through systems of “tax collection” or “protection fees” combined with service delivery, Al Shabaab actually offers a semblance of “governance” in the areas it controls – even if these taxes are collected through extortion or threats of violence.

In much of Somalia, services, such as health and education, are largely provided by foreign faith-based foundations, non-governmental organisations or the private sector, not the state. Many hospitals and schools are funded by foreign (mostly Arab) governments or religious institutions. This means that the state remains largely absent in people’s lives. And because NGOs and foundations can only do so much, much of the country remains unserviced, with the result that Somalia continues to remain one of the most underdeveloped countries in the world, with high levels of illiteracy (estimates indicate that the literacy rate is as low as 20 per cent). State institutions, such as the Central Bank and revenue collection authorities, are also either non-existent or dysfunctional.

Efforts by the United Nations and the international community to bring a semblance of governance by supporting governments that are heavily funded by Western and Arab countries have not helped to establish the institutions necessary for the government to run efficiently.  On the contrary, some might argue that that foreign aid has been counter-productive as it has entrenched corruption in government (as much of the aid is stolen by corrupt officials) and slowed down Somalia’s recovery.

Foreign governments have also been blamed for destabilising Somalia. The US-backed Ethiopian invasion of Somalia in 2006, which succeeded in ousting the Islamic Courts Union (ICU) – which had successfully brought about a semblance of governance in Somalia through a coalition of Muslim clerics and businessmen –  spawned radical groups like Al Shabaab, which have wreaked havoc in Somalia ever since.  Kenya’s misguided “incursion” into Somalia in 2011, had a similar effect: Al Shabaab unleashed its terror on Kenyan soil, and Kenya lost its standing as a neutral country that does not intervene militarily in neighbouring countries. Certain Arab countries, notably Qatar and the United Arab Emirates, have also been accused of interfering in Somalia’s elections by sponsoring favoured candidates.

All of Somalia’s governments since 2004, when a transitional government was established, have thus failed to re-build state institutions that were destroyed during the civil war or to deliver services to the Somali people. In its entire eight-year tenure, from October 2004 to August 2012, the Transitional Federal Government (TFG) did not have the capacity to become a fully functioning government, with a fully-fledged revenue collecting authority and robust ministries.  Ministers had no portfolios and ministries had skeletal staff. The national army was weak and under-funded, and since 2007, the government has relied almost exclusively on African Union soldiers for security, though some donors, notably Turkey, have attempted to revive the Somalia National Army.

Somalia’s first post-transition government was elected in 2012 under a United Nations-brokered constitution. Hassan Sheikh was elected as president with much enthusiasm and in the belief that things would be different under a government that had the goodwill of the people. In his first year in office, President Hassan Sheikh was named by TIME magazine as one of the world’s 100 most influential people. Somalia expert Ken Menkhaus called his election “a seismic event” that “electrified Somalis and both surprised and relieved the international community”. However, it would not be long before his government would also be marred by corruption allegations.

What governance model should Somalia adopt? 

There has been some debate about which type of governance model is most suitable for a country that is not just divided along clan/regional lines, but where lack of functioning secular institutions threaten nation-building.

Federalism, that is, regional autonomy within a single political system, has been proposed by the international community as the most suitable system for Somalia as it caters for deep clan divisions by allocating the major clans semi-autonomous regional territories.  The 4.5 formula for government representation proposed by the constitution based on the four largest clans (Darod, Hawiye, Dir and Rahanweyne) and 0.5 positions for minorities does acknowledge the reality of a clan-based society, but as Somalia’s recent history has shown, clan can be, and has been, manipulated for personal gain by politicians.  As dominant clans seek to gain power in a federated Somalia, there is also the danger that the new federal states will mimic the corruption and dysfunction that has prevailed at the centre, which will lead to more competition for territories among rival clans and, therefore, to more conflict.

Several experts have also proposed a building block approach, whereby the country is divided into six local administrative structures that would eventually resemble a patchwork of semi-autonomous territories defined in whole or in part by clan affiliation.. In one such proposal, the Isaaq clan would dominate Somaliland in the northwest; the Majerteen in present-day Puntland would dominate the northeast; the heterogeneous Jubbaland and Gedo regions bordering Kenya would have a mixture of clans (though there are now fears that the Ogaden, who are politically influential along the Kenya border, would eventually control the region); a Hawiye-dominated polity would dominate central Somalia; the Digil-Mirifle would centre around Bay and Bakol; and Mogadishu would remain a cosmopolitan administrative centre.

Somaliland offers important lessons on the governance models that could work in a strife-torn society divided along clan lines and where radical Islamist factions have taken root. Since it declared independence from Somalia in 1991, Somaliland has remained relatively peaceful and has had its own government and institutions that have worked quite well and brought a semblance of normality in this troubled region.

After Siad Barre ordered an attack on Hargeisa following opposition to his rule there, Somaliland decided to forge its own path and disassociate from the dysfunction that marked both the latter part of Barre’s regime and the warlordism that replaced it during the civil war. It then adopted a unique hybrid system of governance, which incorporates elements of traditional customary law, Sharia law and modern secular institutions, including a parliament, a judiciary, an army and a police force.  The Guurti, the upper house of Somaliland’s legislature, comprises traditional clan elders, religious leaders and ordinary citizens from various professions who are selected by their respective clans. The Guurti wields enormous decision-making powers and is considered one of the stabilising factors in Somaliland’s inclusive governance model. Michael Walls, the author of A Somali Nation-State: History, Culture and Somaliland’s Political Transition, has described Somaliland’s governance model as “the first indigenous modern African form of government” that fuses traditional forms of organisation with those of representative democracy.

However, Somaliland’s governance model is far from perfect: the consensual clan-based politics has hindered issue-based politics, eroded individual rights and led to the perception that some clans, such as the dominant Isaaq clan, are favoured over others. Tensions across its eastern border with Puntland also threaten its future stability.

In addition, because it is still not recognised internationally as a sovereign state, Somaliland is denied many of the opportunities that come with statehood. It cannot easily enter into bilateral agreements with other countries, get multinational companies to invest there or obtain loans from international financial institutions, though in recent years it has been able to overcome some of these obstacles.

Somaliland is also not recognised by the Federal Government of Somalia, which believes that Somaliland will eventually relent and unite with Somalia, which seems highly unrealistic at this time.  This is one reason why the Somali government gets so upset when Kenyan leaders engage with Somaliland leaders, as happened recently when Mogadishu withdrew its ambassador from Nairobi after President Uhuru Kenyatta met with the Somaliland leader Musa Bihi Abdi at State House. Raila Odinga’s recent call to the international community to recognise Somaliland as an independent state has been welcomed by Somalilanders, but is viewed with suspicion by the federal government in Mogadishu

Nonetheless, there has been some debate about whether Somaliland’s hybrid governance model, which incorporates both customary and Western-style democracy, is perhaps the best governance model for Somalia. Is the current Western- and internationally-supported political dispensation in Somalia that has emerged after three decades of anarchy a “fake democracy”?  Can Somalia be salvaged through more home-grown solutions, like the one in Somaliland? Should Somalia break up into small autonomous states that are better able to govern themselves?

Balkanisation is usually a deprecated political term referring to, according to Wikipedia, the “disorderly or unpredictable fragmentation, or sub-fragmentation, of a larger region or state into smaller regions or states, which may be hostile or uncooperative with one another”. While usually associated with increasing instability and conflict, balkanisation could nonetheless still be the only solution for a country that has been unable to unite or to offer hope to its disillusioned citizens for more than three decades.

As Guled Ahmed of the Middle East Institute notes, “the 1995 Dayton accords, which ended the Bosnian war, paved the way for ethnic balkanisation of former Yugoslavia into six countries. This resulted in peace and stability and prosperity. So if Eastern European countries can separate along ethnicism, why not balkanise Somalia with multi-ethnicism just like the former Yugoslavia to achieve peace and stability and fair elections based on one person one vote?”, he said.

Ahmed told me that balkanisation would also eliminate Al Shabaab (which has been fighting the government in Mogadishu for the last 14 years) as the independent states created would be more vigilant about who controls their territories and also because people will have more ownership of their government. Somali refugees languishing in Kenya, Ethiopia and elsewhere might also be tempted to finally return home.

Balkanisation can, however, be messy – and bloody. But Somalia need not go down that route. A negotiated separation could still be arrived at peacefully with the blessing of the international community. If the international community is serious about peace and stability in Somalia, it should pave the way for these discussions. Sometimes divorce is preferable to an acrimonious marriage.

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The Danger of the Single Story and Africa’s Refugee Equilibrium

Africans’ lack of knowledge about our own shared refugee experiences continues to fuel hate and discrimination on the continent.

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The Danger of the Single Story and Africa’s Refugee Equilibrium
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For far too long, the global refugee situation has been misconstrued as static, with certain parts of the globe generating disproportionate numbers of refugees and others perpetually faced with the burden of hosting displaced peoples. In particular, Africa is seen as a producer rather than a receiver of refugees. To be clear, Africa is not a continent that feeds the world with refugees any less than it hosts them. Although Africa is seen as exceptional in terms of global refugee networks, the factors accounting for refugee crises can bedevil any region at any point in time. These factors include war, natural disasters, political upheavals, military coups, civil strife, religious or cultural persecutions, personal circumstances, economic hardship, terrorist activities, and many more.

African countries, as much as any other, have taken turns in both generating and hosting refugees, and if history is any measuring rod, will continue to do so. It is the African refugee equilibrium, a phenomenon whereby a country that at one moment in its history is feeding its neighbors with refugees can become, at another moment, the receiver of refugees from those same neighbors. Africa isn’t just feeding the world with migrants and refugees but is top on the list of hosts. As per the UNHCR statistics of 2018, 30% of the world’s 25.9 million registered refugees were being hosted in Africa. Yet, the numbers of Africans who make their way to the West as refugees and migrants occupy the headlines of international news, painting the continent and the people as a miserable “sea of humanity,” perpetually flooding the rest of the world, especially North America and Europe.

Examples of how Africa has been mutually hosting its own refugees and taking turns are unlimited. The regions of Central and West Africa have particularly exemplified the concept of the African refugee equilibrium, with many nations taking turns in generating and hosting refugees. Even in the days when it suffered refugee and migrant crises, few Equatorial Guineans left the continent; the vast majority fled to nearby Cameroon, Gabon, and Nigeria. During the First World War, the German colony of Kamerun fed the Spanish colony of Guinea with tens of thousands of refugees. But in the 1970s, Cameroon, in turn, hosted about 30,000 refugees from Equatorial Guinea. During the Nigerian Civil War, Nigeria fed several of its West and Central African neighbors with tens of thousands of refugees, including children, who ended up in countries such as Gabon and Ivory Coast. The post-civil war era has seen Nigeria host hundreds of thousands of refugees and migrants from its neighbors, even while Nigeria itself simultaneously feeds some of those neighbors with a new category of refugees.

West and Central Africa are not unique in this exchange. Since the 1960s, nations in East and Southern Africa have taken turns between hosting and generating refugees. In East Africa, the Kakuma refugee camp in the northwest of Kenya currently hosts about 200,000 refugees from more than 20  neighboring countries, including refugees from Ethiopia, Somalia, Sudan, South Sudan, Uganda, Democratic Republic of Congo, and Burundi, to name but a few. Uganda, which has sent refugees to its neighbors, including Kenya, hosts its own refugees and refugees from others. Uganda’s Bidibidi refugee camp currently ranks the second largest in the world.

Perhaps more interestingly is the fact that besides mutually hosting its own refugees, Africa has hosted refugees from other continents, including from Europe. While examples abound, a few here will suffice. During the late 19th century and the 20th century in the midst of anti-Semitism, a significant number of European Jews entered North and Eastern Africa as refugees, with some settling in as far as South Africa. On the eve of the First World War, there were already more than 40,000 Jewish migrants and refugees settled in South Africa. In the 1930s, South Africa again received more than 6,000 Jewish refugees from Nazi Germany. During the Second World War, in excess of 20,000 Polish refugees, who had been evicted from Russia and Eastern Europe following German invasion, were received and hosted in East and Southern Africa, including in modern day Tanzania, South Africa, and Zimbabwe. In the 1960s, the crisis of war and decolonization in the Congo caused the flight of several thousand whites from the Congo. They were hosted as refugees in a number of African countries, including South Africa, Congo-Brazzaville, Angola, the Central African Republic, Tanganyika, Rwanda, and Burundi.

The examples provided here only scratch the surface of the African refugee equilibrium, but they each demonstrate that we must pay attention to historical antecedents in refugee studies. In other words, we need to historicize African refugee studies. Only by so doing can we fully appreciate the important and diverse role that Africa plays. This approach clearly shows that if our neighbors are currently facing a refugee crisis and turn to us for assistance, we must view them with respect and compassion; it could soon be our turn and we could need them.

There are constant examples across Africa where our lack of knowledge of our own shared refugee experiences or sometimes outright denial of history continues to inform the way we treat fellow Africans with disdain and hostility. Xenophobia (better known as Afrophobia) in South Africa is just one example. The African Centre for Migration and Society (ACMS) has carefully documented xenophobic attacks against other African refugees and migrants in South Africa since 1994, establishing several cases where in many South African towns and cities, South Africans attacked, injured or even killed African refugees and migrants. If only an average South African knew that not too long ago many African countries were safe havens to many of their countrymen and women during the anti-Apartheid struggle, they would think twice before unleashing xenophobic attacks against other Africans. Even across West and Central Africa, there have been several instances of both civilian African populations and their governments treating other African refugees in their countries with unbelievable hostility. When oil was suddenly discovered in Equatorial Guinea in the late 1990s and early 2000s, Equatoguineans and the government alike, quickly forgot their shared refugee and migrant history with Cameroon, and began a series of hostilities against Cameroonian refugees and migrants who came to Equatorial Guinea for “greener pastures.” An informed knowledge about our collective refugee and migrant experiences would go miles in ensuring that Africans and African governments treat other African refugees and migrants in their countries in a friendlier and more accommodative fashion.

There is, however, hope on the horizon. Africanists are increasingly turning their attention to refugee studies and the African refugee equilibrium. Two special issues are forthcoming in the Canadian Journal of African Studies and in Africa Today, both of which showcase Africa’s shared and diverse refugee and migrant experiences. These issues are part of the efforts to redress the image of Africa and the misconceptions surrounding the continent regarding migrants and refugee movements.

What all of these means is that it is only a matter of time before the static image of African refugee dynamics and the African refugee equilibrium will displace these ahistorical ideas.

This post is from a new 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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