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An IMF Straightjacket Is a Fitting End to Jubilee’s Reign of Hubris, Blunder, Plunder, Squander and Abracadabra

8 min read.

Six years of fiscal profligacy have finally caught up with the Jubilee administration. Money is short, it now admits, and the begging bowl is out. The IMF has been in town and will be back again. But the cure could be worse than the disease as Jubilee prepares to don an IMF straightjacket for the remainder of its term.

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An IMF Straightjacket Is a Fitting End to the Jubilee’s Reign of Hubris, Blunder, Plunder, Squander and Abracadabra
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The economic management space has become rather lively of late. A few weeks ago, the National Treasury published an updated national debt register that spooked quite a few people. A couple of days later, it circulated a draft debt policy for comments in whose wake followed a stern memo from State House to all state agencies. The subject of the memo was austerity measures and the following three directives were addressed to state corporations: “(a) to immediately remit the entirety of identified surplus funds to the National Treasury; (b) to assign (transfer ownership) of all the Treasury Bills/Bonds currently held in the name/or for the benefit of the State Corporations/SAGAs to The National Treasury, including any accruing interest by Friday, 15 November 2018; (c) to remit the entirety of Appropriations-in-Aid (AiA) revenues to The National Treasury”

SAGAs stands for Semi-Autonomous Government Agencies. Appropriations-in-Aid is the money that government agencies raise from the public, usually in fees; court fines, licences and payments for services. This money is usually factored into their budgets—for instance, if an agency’s approved budget is Sh1 billion and it expects to collect Sh200 million, the Exchequer will budget to fund the balance of Sh800 million.

It turns out that this memo was the agenda of the event at which Uhuru Kenyatta made his “why are Kenyans broke?” faux pas. Evidently, he had summoned the state corporation bosses to read them the riot act on the directive. Hot on the heels of the State House meeting, it was reported that Parliament had passed an amendment to the Public Financial Management Act requiring that all public agencies centralise their banking with the Central Bank of Kenya.

Why the sudden zeal?

The answer may be found in a press release issued by the IMF on 22 November disclosing that the Fund had concluded a visit to the country to review recent economic developments. It also disclosed that another visit was planned for early next year “to hold discussions on a new precautionary stand-by facility.” A precautionary standby facility is a credit line that IMF member countries can draw on in the event of a shock that affects a country’s ability to meet its external payment obligations, for example, a petroleum price shock, or a global financial crisis of such severity that a country’s foreign exchange resources would not be sufficient to cover both imports and debt servicing.

The previous standby facility, which was due to expire in March 2018, was suspended in the run-up to the 2017 general election because of non-compliance. In early 2018, the administration sought and secured a six-month grace period during which it would negotiate a new one (with no money available during the grace period as the government was not compliant). The grace period was to expire in September, but in August the talks collapsed. Some of the conditions that the IMF sought were the removal of both the interest rate cap and the controversial VAT on fuel. The exchange rate policy may have been another sticking point, as the IMF claimed that the government was artificially propping up the shilling, a contention that the Central Bank has vigorously contested.

It turns out then that the sudden flurry of activity may be all about impressing the IMF. Indeed, the centralisation of government banking—known as the Treasury Single Account (TSA)—is one of the IMF’s latest fads, And just as with IFMIS before it, TSA is supposed to be the silver bullet that will put an end to financial control woes.

There are at least two other developments that are consistent with the sort of demands that we can expect from the IMF.

First, the government has started to make wage bill noises again. The acting Treasury Cabinet Secretary was heard to lament at a conference convened to discuss the wage bill that it is consuming 48 per cent of revenue, way above the maximum of 35 per cent stipulated in the Public Finance Management Act. This appears to be a case of giving a dog a bad name. The total wage bill for the entire public sector including commercial enterprises was Sh600 billion, about 40 per cent of national revenue. But even this is misleading because commercial parastatals (Kenya Pipeline, Kenya Airports Authority, Central Bank, etc.) do not depend on government revenue. The consolidated public sector wage bill as a percentage of consolidated revenues is in the order of 34 per cent. This is not the first time that the government is cooking the wage bill figures.

It has also been reported that Kenya Power has applied for a 20 per cent tariff increase, in part to cover for the national government subsidy for low-income consumers. The IMF takes a dim view of subsidies of this kind and although this has not come into the public domain, I would expect the IMF to similarly take a dim view of the operational subsidy made to the SGR, which is even less defensible than the tariff subsidy.

Given that the same Jubilee administration that found IMF conditions unpalatable last year now appears to be bending over backwards to secure a deal, we are compelled to ask: what has changed?

Money is short. This year the government plans to borrow Sh700 billion. It plans to borrow Sh450 billion domestically, and Sh250 billion from foreign sources. Soft loans from development lenders are budgeted at Sh50 billion, leaving the balance of Sh200 billion to be sourced from commercial lenders, either by way of issuing sovereign bonds (Eurobonds) or by arranging syndicated bank loans. The Sh200 billion foreign borrowing is “net”, that is, over and above what the government will borrow to pay the principal installments on foreign bank loans (e.g. the Exim Bank of China SGR loans), and to refinance or roll-over maturing syndicated loans (thankfully, there are no Eurobonds maturing this year) amounting to Sh131 billion, bringing the total borrowing to Sh331 billion. As a rule, interest payments are paid out of revenue while the government aims to pay the principal by rolling-over or refinancing.

The government has access to three potential sources of this kind of money: budget support (also known as programme loans, issued by multilateral institutions, including the IMF itself), Eurobonds and syndicated loans. Of the three, the multilateral lenders are the cheapest, but they take long, come with conditions and usually require that an IMF programme be in place (although last year the World Bank did extend a programme loan without one).

Eurobonds are the next best option. The Government does not need an IMF deal to go to the sovereign bond market. Indeed, it did not have an IMF programme in place during its previous two bond issues: the debut issue in 2014 and the second one in February 2018. But circumstances do change. With as many as 20 African countries either already in or at high risk of debt distress, it may be that the market has signaled to the government that an IMF stand-by would be “an added advantage.” Indeed, the IMF itself has downgraded Kenya’s debt distress risk from low to medium.

Multilateral lenders are the cheapest, but they take long, come with conditions and usually require that an IMF programme be in place

For what it’s worth, the Jubilee administration is finally owning up to the fact that its finances are in a worse state than it has previously cared to admit. The new narrative heaps the blame on the now-suspended Treasury officials, Cabinet Secretary Rotich and Permanent Secretary Kamau Thugge. I was taken aback recently when a cabinet secretary who has a strong background in finance remarked that they were not aware how bad things were until Rotich and Thugge were booted out, while the central bank governor has been quoted blaming Rotich’s rosy revenue forecasts—which he has characterised as “abracadabra”—for encouraging the government to pile up debt. This is disingenuous because that is not how it is done. The borrowing is decided politically first, and then they cook the revenue numbers to show that we can afford it. The Governor has been part of the racket. It is also mean to mock one’s colleagues when they are in trouble, not to mention that the Central Bank has been deeply implicated in the Eurobond fraud cover-up under his watch. The Governor’s turn to be thrown under the bus may yet come, but I digress.

What is now inescapable is that six years of the most egregious fiscal profligacy has caught up with us. As this column argued a fortnight ago, the government is now hostage to fate—it can kick the can down the road and hope and pray that the crunch does not come this side of the election, in which case an IMF facility seems like a good cushion to have. But it comes with a health warning: the cure may be worse than the disease.

A couple of weeks ago, Lebanese people took to the streets and brought down the government in what has been dubbed the Whatsapp revolution. Those of us who are a bit long in the tooth remember Beirut as the byword for urban warfare. Lebanon’s sectarian warfare ended when its fractious and venal political elite worked out an inclusive eating arrangement of the kind that our equally venal eating chiefs are now crafting with handshakes, bridge building and whatnot. With no agencies of restraint, the chiefs finished the tax money and progressed to eating debt, chomping their way into a 150+ per cent of GDP debt (third highest in world after Japan and Greece) that is consuming half the government revenue in interest payments alone, and causing economic stagnation.

What is now inescapable is that six years of the most egregious fiscal profligacy has caught up with us

On its knees, the government passed an austerity budget in July. The austerity budget coincided with an IMF mission which recommended “a credible medium term fiscal plan aiming for a substantial and sustained primary fiscal surplus.” Primary fiscal balance is the difference between government revenue and recurrent expenditure excluding interest. It is achieved by raising more taxes and cutting wages and O&M (operations & maintenance) spending. These cuts usually fall most heavily on social spending.

As the government set about imposing more austerity and raising taxes, it unveiled a tax on voice-over-IP (VOIP) calls in October, the idea being to protect tax revenue from regular voice calls. It was the last straw. Evidently, the eating chiefs had not realised that this was the social lifeline for the youth. The people took to the streets. Two weeks later, the government fell. Lebanon is now in full financial meltdown. The IMF is nowhere to be seen.

Mozambique had an IMF programme in place when it ran into debt payment difficulties that forced the government to disclose more than a billion dollars of secret “Tuna bonds” debt. Now, the purpose of an IMF programme is to help a country in payment difficulties, but because the secret debt violated the terms of the IMF deal, instead of bailing Mozambique out, the IMF led the other donors in suspending aid to the country. Instead of helping put out the fire, the fire brigade decided that teaching the culprits a lesson was more important than saving the victims. Mozambique’s economy went into free fall, where it remains. This is the very same IMF that cooked our books to cover up the Eurobond theft.

The borrowing is decided politically first, and then they cook the revenue numbers to show that we can afford it

What alternative does Uhuru Kenyatta have? In economics, we talk of the orthodox and heterodox approaches to dealing with a sovereign financial crisis.

The orthodox approach is a formulaic one-size-fits-all approach which adheres to one economic school of thought known as neoclassical economics. Its prescriptions are fiscal austerity and doctrinaire free market ideology. It is, as is readily apparent, the IMF prescription. Heterodox is another name for unorthodox, and refers to a pragmatic strategy that draws from the entire spectrum of economic ideas from Austrian to Marxist political economy and everything in between.

The dilemma governments have to face is that the orthodox cure is sometimes worse than the disease, but it’s the one with the money behind it. Heterodox approaches work better, but they require a resolve and an imagination that many governments are unable to muster, especially when they have their backs against the wall.

Can the Jubilee administration muster the resolve for a heterodox response? Doubtful.

Four years ago I contemplated the Jubilee administration ending precisely where it is headed, to wit: “I cannot think of a more fitting epitaph for the Jubilee administration’s reign of hubris and blunder, plunder and squander, than the rest of the term spent savouring copious helpings of humble pie in an IMF straightjacket. Choices do have consequences. Sobering.

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David Ndii is a leading Kenyan economist and public intellectual.

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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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