Connect with us

Op-Eds

Of Tigers, Debt Merchants and 2020 Vision

8 min read.

The former president of the African Development Bank, Donald Kaberuka, has dismissed as “nonsensical” any suggestion that Africa may have over-borrowed, saying instead that with better debt management and higher domestic revenue mobilisation, the continent can take on more debt. But Kaberuka fails to make the link between the increased borrowing and the revenue problem.

Published

on

Of Tigers, Debt Merchants and 2020 Vision
Download PDFPrint Article

The public debt burden has dominated economic debate in 2019. Public debt is likely to be even more topical in 2020, both domestically and globally. As at end November 2019, 31 out of 70 countries in the IMF’s roster of low-income countries are listed as either in or at high risk of debt distress. Another 26 are listed as being at moderate risk, leaving only 13 that are still at low risk. Last week, the IMF approved a $2.9b bailout for Ethiopia, one of the high distress risk countries.

I first called out the Jubilee administration’s borrowing binge six years ago. Up until two years ago, the IMF and the World Bank were still giving it the thumbs up. (Very often we forget that these institutions are lenders and therefore conflicted on matters debt.) A few weeks ago Donald Kaberuka, the immediate former president of the African Development Bank (AfDB) and erstwhile Finance Minister of Rwanda, dismissed as “nonsensical” any suggestion that Africa may have over-borrowed:

“The idea that Africa is drowning in debt is nonsensical . . . If we can improve on our own domestic revenue mobilization, if we can improve on our public debt management and if we can improve on our debt management capabilities, the continent is able to take a bit more debt, especially at this time when the markets are looking for yield.”

This is an interesting argument. You may also have heard it from the Jubilee administration—the problem is not too much debt; it is the Kenya Revenue Authority (KRA) that is failing to meet revenue targets.

Kaberuka, who I gather is an economist, wittingly or otherwise, fails to make the connection between the borrowing binge and the revenue problem. Only a most incurious economist would look at revenue and debt trends such as ours (see chart) and conclude that they are completely unconnected. Although I have written about the connection on more than one occasion, it is worth recapping. There are two dimensions to the connection: an accounting one and an economic one.

Let’s start with the accounting. Let’s say we start with a GDP of Sh10 trillion which is 80 per cent private economy and 20 per cent government. Let’s then say the government is raising Sh2 trillion, which is 20 per cent of GDP, in tax revenue. Suppose the government goes to China and buys a railway worth Sh500 billion on credit. The GDP will now be Sh10.5 trillion. We will be told that the economy has grown by 5 per cent. But the railway has not added anything to the economy, and nor is it paying tax, so the government still collects Sh2 trillion, but which is now 19 per cent of the Sh10.5 trillion GDP. If this is repeated every year, by year five, the GDP will have expanded to Sh12.8 trillion and the tax revenue-to-GDP ratio will be down to 15.7 per cent.

This is a purely accounting view, which assumes that government investment is neutral, neither helping nor harming the economy. This is not as far-fetched as it might at first appear. For example, it could simply reflect government investments with long gestation periods. Indeed, we have been told that the new Standard Gauge Railway (SGR) is one such long-term visionary project whose benefits will be realised by our grandchildren. But for no harm to occur, two conditions need to obtain. First, all the borrowing needs to be foreign. Use of domestic resources means diverting these from the private economy, and that is harmful. We call this crowding out. Second, there are no repayments, because repayment of foreign debt amounts to sucking money out of the economy, also harmful. Neither obtains.

Let us start with repayments. This year, we have budgeted to pay Sh139 billion ($1.39 billion) in foreign interest, a tenfold-plus increase from Sh11b ($130m) in the 2012-2013 financial year, the last year of the Grand National Coalition government. And this does not include the hefty payments of the principal on the SGR loans that kicked in this year. The use of domestic resources is also a very significant factor. Half the debt that the Jubilee administration has accumulated is domestic. The crowding out extends beyond credit. With so much money to spend liberally, trading with the government becomes the most profitable business, diverting other economic services away from, and inflating the costs for the private sector. This could not be better demonstrated than by the case of Kenya’s banking industry.

Chart 2Last year, the industry made a consolidated profit of Sh110b, and Sh119b in interest from government securities. Considering that lending to government is virtually costless and risk-free, this implies that banks made all their profits from the government, and lost Sh9b on the business they did with the rest of the economy. The contribution of interest on government securities has increased steadily from 37 per cent in 2013 to 108 per cent in 2018 (see chart). But we also see that the banks’ profitability has declined. Profits declined by 40 per cent in 2017, following the capping of interest rates in late 2016. In 2018 profits were 14 per cent lower than in 2013. If banks are not making money from the private economy, it stands to reason that government revenue will also take a hit.

How much public debt is too much?

Debt experts have sophisticated models that are supposed to tell us. These models are built around “present value.” Present value is the sum of a forecast, such as a cash flow, and in this case annual debt repayments, discounted by a rate of interest or other relevant discount factor, used to give an estimate of current worth. If two similar countries borrow the same amount of money on similar terms, one invests wisely, and the other plunders it all, the net present value of the debt will be the same. It should not surprise then that the IMF’s models were giving the Jubilee borrowing binge the thumbs-up even as the Eurobond went walkabout and one Josephine Kabura was mocking us with tall tales of cash stuffed in gunny bags.

Chart 3For the financial health of a country, a simple rule of thumb is to ensure that debt service does not grow faster than government revenue for too long. If the debt is invested productively, the investments expand the economy, the government generates more tax revenue from the expanding economy, which it then uses to service the debt. How long is too long? That is a matter of exercising sound judgement. As John Maynard Keynes famously quipped, in the long run, we are all dead. But the question becomes moot when the trend looks like what we see in the chart—debt service heading north, revenue heading south. You do not need present value calculations to see that this trend cannot go on for much longer. Sooner or later, something will have to give.

Expect to hear a lot about fiscal consolidation in 2020.

Fiscal consolidation is defined as policy measures that aim to reduce the deficit and stop the accumulation of debt. The substance of it is what we used to call structural adjustment but, following the 2007 financial crisis, it became necessary to invent a new name—it just wouldn’t do to speak of Spain, or the UK for that matter, as implementing structural adjustment.

A fiscal consolidation strategy is predicated on the expectation that governments can find ways of bringing down deficits without hurting growth. Budget deficits are, in essence, the pumping of money into the economy, which ought to stimulate growth. Conversely, fiscal consolidation amounts to withdrawing money from the economy, which would dampen growth. The problem is that economic slowdown hurts revenue, meaning that the government has to constrain expenditure even further to meet its deficit reduction targets.

The first strategy entails counteracting the contractionary effect of fiscal consolidation with expansionary monetary policy. Simply put, what the government takes away, the Central Bank puts back in circulation. The Central Bank has a couple of tools to do this, principally by buying bonds and lowering the cash ratio and liquidity requirements for the banks (the percentages of assets that banks are required to have in cash and near-cash assets such as Treasury bills and bonds). Shovelling money out of the door is also expected to reduce interest rates, which besides making borrowing attractive for businesses and consumers, can substantially lower the interest cost of domestic debt. But unlike fiscal stimulus where the government is the spender, monetary stimulus depends on market response. The policy makers hope the money will stimulate production, but it could just as well suck in imports, or leave the country to seek higher returns elsewhere, thereby depleting foreign exchange reserves and putting pressure on the currency.

The second strategy is to find “off-balance sheet” financing of public investment. The default alternative these days is the so-called public-private partnerships (PPPs). Simply put, PPPs are the public equivalent of equity financing. Instead of the government borrowing to build a hospital for instance, a private investor builds, and the government leases it. But PPPs have their drawbacks. First, to make them attractive to private investors, PPP projects are usually structured in such a way as to ensure that the investors cannot lose money—“de-risked” in financial lingo.

Second, PPPs are seldom commercially viable so, more often than not, the Government usually has to part-finance the project in order to achieve an attractive rate of return for investors. Third, PPP financing cherry picks projects with commercialisation potential, which typically will be projects that benefit more developed areas or better-off people in society. In economics, we call such policies “regressive”, meaning they transfer resources from the poor to the rich. Fourth, PPPs have a very high corruption risk—we need look no further than the stink that is the medical equipment leasing scheme known as the Managed Equipment Services (MES) project.

Another scheme is to shift debt and deficit financing from the national government’s books to quasi-government agencies, such as has recently been done by amending the law to allow the Kenya Roads Board (KRB) to issue bonds leveraged on the fuel levy revenues that are earmarked for road construction. Assuming an interest rate of, say, 12 per cent, each shilling of fuel levy revenue can be leveraged to borrow 8 shillings. Already, the KRB has published an expression of interest for transaction advisors to raise Sh150 billion. Suffice it to say that Greece used financial gymnastics of this nature to first be admitted into the Eurozone and to subsequently fake compliance.

PPPs have a very high corruption risk—we need look no further than the stink that is the medical equipment leasing scheme known as the Managed Equipment Services (MES) project

How much public finance does development require? There is perhaps no better place to benchmark than with the Asian Tigers.

Chart 4In the 70s, Thailand and South Korea were raising 13 and 15 per cent of GDP in tax revenue, well below Kenya’s 18 per cent, while Malaysia and Singapore were doing better at just over 20 per cent (see chart). But where the East Asians stand apart is that each of them was able to put at least a third of their revenue into investment. The real miracle here is how they managed to keep their recurrent budget to a maximum of 10 per cent of GDP, out of which they were also heavily investing in education. As economists Mahbub ul Haq and Khadija Haq observed, beneath the East Asian economic miracle lay an education miracle.

Chart 5It is also a miracle of public finance, specifically, public thrift. We hear a lot about the high saving and investment rate part of the story. What we do not hear about is the role of government in that story. In the early seventies, East Asian and African countries had similar national savings rates, but even then East Asian governments were contributing more to national saving and investment, although African governments’ contribution was also significant (see chart). A decade later, East Asian governments were still contributing over a third of national investment, while for African and other LDC governments this contribution fell to 11 and 6 per cent respectively. Consequently, we turned to foreign resources. By the early 80s, Africa was investing 20 per cent of GDP more than half of which was foreign-financed, while the East Asians were investing 30 per cent, 90 per cent of which was domestically financed.

In the 70s, Thailand and South Korea were raising 13 and 15 per cent of GDP in tax revenue, well below Kenya’s 18 per cent, while Malaysia and Singapore were doing better at just over 20 per cent

The East Asian experience is telling us that when people were too poor to save much, it is the government, and not foreign resources, that closed the gap between private savings and investment requirements. In economics, we postulate that saving is determined primarily by income, and investment by rate of return. As these public investments paid off, they boosted private income and consequently private saving. When countries save more, they need less, not more foreign resources to finance investment. Donald Kaberuka is telling us that we need to raise more revenue to enable us to borrow more. Is he ignorant or dishonest?

During his tenure, the AfDB became the lightning rod for infrastructure-led growth, a fallacy that this column has discussed before. In fact, the nonsensical comments echo sentiments in the AfDB’s 2018 Africa Economic Review, to wit:

“For much of the past two decades, the global economy has been characterised by excess savings in many advanced countries. Those savings could be channeled into financing profitable infrastructure projects in developing regions, especially Africa, to achieve the G20’s industrialisation goal. That this mutually profitable global transaction is not taking place is one of the biggest paradoxes of current times.”

You may want to note that the objective is to “meet the G20’s industrialisation goal.” The irrepressibly prescient Franz Fanon read in the tea leaves:

“The national bourgeoisie will be quite content with the role of the Western bourgeoisie’s business agent, and it will play its part without any complexes in a most dignified manner.”

And therein lies the rub.

Support The Elephant.

The Elephant is helping to build a truly public platform, while producing consistent, quality investigations, opinions and analysis. The Elephant cannot survive and grow without your participation. Now, more than ever, it is vital for The Elephant to reach as many people as possible.

Your support helps protect The Elephant's independence and it means we can continue keeping the democratic space free, open and robust. Every contribution, however big or small, is so valuable for our collective future.

By

David Ndii is a leading Kenyan economist and public intellectual.

Op-Eds

Twitter: Let It Burn!

Whether or not Twitter survives should be irrelevant to those committed to building a democratic public sphere.

Published

on

Twitter: Let It Burn!
Download PDFPrint Article

Elon Musk finally bought Twitter. Although everyone expected the move to quickly prove foolhardy, the speed of the implosion has been impressive. The latest gaffe is a failed attempt to monetize verification by requiring paid subscriptions for them, which has led to all manner of comical impersonations (one macabre highlight was a “verified” George W. Bush account tweeting “I miss killing Iraqis. “Tony Blair” responded with “Same tbh”). Some are watching with shock and horror and wondering if Twitter can be saved. But, when sulfur and fire rains, it is best not to look back.

Africa Is a Country managing editor, Boima Tucker, put it best some years ago: “Contrary to the utopian dreams of the early internet, the idea of a more democratic communications space has given way to a system of capitalist exploitation.” The thing to reckon with is the extent to which we have exaggerated the emancipatory potential of networked communication and social media, partly owing to our own psychic overinvestments in it. Which is not to deny that it has never shown democratic and egalitarian potential, but that’s never been what Twitter is forThere can be no right platform in the wrong world.

What was Twitter for then? In the New York Review of Books, Ben Tarnoff describes it as a “network of influence.” In a world characterized by the economization of everything, social media is the place to commodify the self, to transform one’s unique traits and personality into a product for public display. The main imperative online is to “stay on brand,” to cultivate an appealing enough persona in the endless “production of new genres of being human.”

The key contradiction of social media use, of course, is that even though these platforms appear to us as complete products that we participate in and consume, we are the ones responsible for ensuring their possibility in the first place. As the media scholar Christian Fuchs notes, “Digital work is the organization of human experiences with the help of the human brain, digital media and speech in such a way that new products are created. These products can be online information, meanings, social relations, artifacts or social systems.” Thus, it is us who create the value of these platforms.

In a better world, these digital communications platforms would be democratically owned and operated. But one also wonders if in a better world they would be as necessary. Perhaps, when we are less socially disaffected, living in societies with social provision, an abundance of recreational public goods and less exploitative, dignifying work, then we would all have less reason to be online. For now, the question is: in a time when this ideal is nowhere close to being within view, how best can we use platforms like Twitter as tools to get us to that world?

The possible answers here are murky. Twitter seems like a critical piece of infrastructure for modern political life. Musk is not alone in thinking of it as a marketplace of ideas, as something like a digital town square. Yet, and especially in Africa, Twitter is not as popular a platform, and even on it, a minority of Twiteratti exert an outsized influence in terms of setting the discursive agenda. But setting aside the question of who is excluded from the digitalized public sphere of which Twitter is a cornerstone, the important question is whether the quality of political debate that takes place is healthy or desirable at all. Granted, it can be fun and cathartic, but at the best of times, amounts to hyper-politics. In Anton Jager’s explanation, this:

can only occur at a discursive level or within the prism of mediatic politics: every major event is scrutinized for its ideological character, this produces controversies which play out among increasingly clearly delineated camps on social media platforms and are then rebounded through each side’s preferred media outlets. Through this process much is politicized, but little is achieved.

We would lack critical self-awareness if we did not admit that Africa Is A Country is a venue whose existence greatly benefits from an online presence—so it goes for every media outlet. Tarnoff points out that “… if Twitter is not all that populous in absolute terms, it does exert considerable power over popular and elite discourses.” To lack an online presence is to reconcile oneself to irrelevance. Although, the news cycle itself is a disorienting vortex of one topic du jour to the next. It makes difficult the kind of long, slow, and sustained discourse-over-time that is the lifeblood of politics, and instead reduces everything into fleeting soundbites.

Nowhere is the modern phenomenon of what Polish sociologist Zygmunt Bauman called “pointillist time” more apparent than on Twitter. For Bauman, pointillist time is the experience of temporality as a series of eternal instants, and the present moment’s connection to the past and future “turns into gaps—with no bridges, and hopefully unbridgeable.” The consequence of this, is that “there is no room for the idea of ‘progress.’” Living through a mode where everything seems to be happening all at once, is both to experience time as what Walter Benjamin called “a “time of possibilities, a random time, open at any moment to the unforeseeable irruption of the new,” but curiously, at the same time, for everything to feel inert, and for nothing to seem genuinely possible.

For a while, notions of historical progress have been passé on the left, associated with Eurocentric theories of modernity. Now, more than ever, the idea is worth reclaiming. The Right today is no longer straightforwardly conservative, but nihilistic and anti-social, thriving on sowing deeper communal mistrust and paranoia. These are pathologies that flourish on Twitter. The alternative to media-fuelled hyper-politics and anti-politics is not real politics per some ideal type. Politics, in the first instance, is not defined by content, but by form. The reason our politics are empty and shallow is not because today’s political subject lacks virtues possessed by the subjects of yore. It’s because today’s political subject is barely one in the first place, lacking rootedness in those institutions that would have ordinarily shaped an individual’s clear sense of values and commitments. The alternative to digitized human association, as noted by many, is mass politics: only when the majority of citizens are meaningfully mobilized through civic and political organizations can we create a vibrant and substantive public sphere.

AIAC editor Sean Jacobs observed in his book, Media In Post-apartheid South Africa: “the larger context for the growing role of media in political processes is the decline of mass political parties and social movements.” Whether Twitter dies or not, and if it does, whether we should mourn it or not, should be beside the point for those committed to building a world of three-dimensional solidarity and justice.

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

Continue Reading

Op-Eds

COP 27: Climate Negotiations Repeatedly Flounder

The distribution of global pandemic deaths ignored existing country vulnerability assessments and dealt some of the heaviest blows to the best prepared countries in the world

Published

on

COP 27: Climate Negotiations Repeatedly Flounder
Download PDFPrint Article

As COP 27 in Egypt nears its end, I find it difficult, almost impossible, to talk to my children about climate change. The shame of our monumental failings as a global community to address the greatest crisis our planet has consciously faced weighs too heavy. The stakes have never been higher, the moral quivering of political leaders has never been more distressing.

“All animals are equal but some animals are more equal than others,” goes the famous commandment from George Orwell’s political allegory Animal Farm. It applies with particular acuity to international negotiations, where each country has a seat, but seats hold very different weights. The outcome of the Sharm-El-Sheik conference will in large part depend on what Western governments are willing to commit to and follow up on. Rich European and other Western countries are historically responsible for the bulk of carbon emissions. The moral case for them being the first-movers and the biggest movers on cutting emissions is crystal clear, and genuine commitments on their part may hold the key to opening up the floodgate of policy innovation towards decarbonization in other countries.

In this context, viewed from the Global South, recent events in the country that still held the COP presidency until it was handed over to Egypt appear as signs of the madness that grips societies before a fall. In her short time as head of government in the UK, Liz Truss spoke as if she lived on another planet that did not show signs of collapsing under the battering of models of economic growth birthed under the British Empire, gleefully pronouncing that her three priorities for Britain were “growth, growth and growth.” Her successor, Rishi Sunak, announced that he would not attend the COP 27 climate summit because he had to focus on the UK economy. The silver lining is that Truss did not last long and Sunak was shamed into reversing his decision. In a scathing rebuke, the Spanish environment minister called the shenanigans of British political leaders “absurd” and pointed out that elections in Brazil and Australia show that voters are starting to punish leaders who ignore climate change.

I see another silver lining. Last week, the World Meteorological Organization (WMO) announced that Europe was warming twice as fast as other parts of the world. A similar report was not issued for North America, but other studies indicate faster than average temperature increases across the continent’s northeastern coast, and its west coast was home to one of the most striking heat waves last year, with a memorable summer temperature peak of 49.6°C recorded in British Columbia, Canada.

Professor Petteri Taalas, the WMO secretary-general, emphasized that the findings highlighted that “even well-prepared societies are not safe from impacts of extreme weather events.” In other words, the report should make Europeans think it could happen to us, with “it” being devastating floods on the scale of what Pakistan and Bangladesh recently experienced, or the hunger-inducing droughts afflicting Madagascar and the Horn of Africa. While some may find it dismal that human beings remain relatively unmoved by the plight of other human beings considered too distant or too different, this is a part of human nature to reckon with. And reckoning with it can turn a sentiment of shared vulnerability into an opportunity for the planet.

Climate negotiations have repeatedly floundered on the unwillingness of rich countries to pay developing countries loss and damages to fund their transitions to greener energies and build crucially needed climate adaptability to limit deaths. Underlying such a position is a centuries-old smug belief that Europe and North America will never need to depend on solidarity from other parts of the world. The WMO report calls into question such hubris, as did the Covid 19 pandemic before that.

The distribution of global pandemic deaths ignored existing country vulnerability assessments and dealt some of the heaviest blows to the best prepared countries in the world. Europe and North America, where barely 15% of the world population resides, accounted for more than half of COVID deaths. Turning the normal direction of disaster statistics upside down, high- and upper-middle-income countries accounted for four out of five Covid deaths globally. While some scientists still pose questions over the real death toll in low-income countries, I was grateful to not live in the West during the pandemic. In Burkina Faso, Kenya and Senegal where I spent most of my pandemic months, I often encountered “COVID refugees,” young Europeans who had temporarily relocated to work remotely from Africa to escape pandemic despair at home.

We are at a point in our failures to fight climate change where fiction writers and other experts of human nature are often more useful than scientists in indicating what our priorities should be. Many fiction writers have turned their focus on what will be necessary for humans to remain humane as societies crumble. Before we get to that stage, let us hope that political leaders and delegates keep remembering that climate disaster could very concretely befall them personally at any time. Let us hope that the sense of equal—or more cynically, unpredictable—vulnerability instills a sense of global solidarity and a platform to negotiate in true good faith. Let us hope that we can start talking to our children again about what we adults are doing to avert the disaster that looms over their futures.

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

Continue Reading

Op-Eds

The Specter of Foreign Forces in Haiti

The so-called ‘Haitian crisis’ is primarily about outsiders’ attempts force Haitians to live under an imposed order and the latter’s resistance to that order.

Published

on

The Specter of Foreign Forces in Haiti
Download PDFPrint Article

What actually happened on the nights of October 6th and 7th, 2022, remains unclear. What reverberated was the rather loud rumor of the resignation of Haiti’s acting prime minister  Ariel Henry. He was a member of President Jovenel Moïse’s pro-US Pati Ayisien Tèt Kale (PHTK) party. (Moïse was assassinated in July 2021.) Had Henry truly resigned? Or was it just a well-propagated rumor? Could it have perhaps been both at the same time: that Henry might have indeed resigned but had been coerced to stay, thus making the news of his resignation spread like gossip that the governmental communication machine had fabricated for public consumption?

Nevertheless, we witnessed the following the next day: in Henry’s address to the nation, he first requested the intervention of foreign military forces in Haiti. He then made a formal request to the United Nations. This call was picked up by international organizations, particularly the Secretary General of the United Nations, António Guterres. In the media coverage of the events, no relationship was established between the (rumored) resignation of the de facto Prime Minister and his request for military intervention. Was it a way to keep our minds occupied while waiting on a response from the international community? Or was the military intervention a promise made by the international community to Henry for the withdrawal of his letter of resignation?

Media coverage has seemingly obscured what happened on October 6th and 7th by choosing to focus solely on the request for military intervention, obscuring a chain of events in the process. Was the same request addressed to the UN and the US administration? Or were these two distinct approaches: one within a multilateral framework and the other within a bilateral framework? Supposing it was the latter, what does this tell us about the Haitian government’s domestic policy, about US foreign policy toward (or against) Haiti, or even about geopolitics (as part of a white-hot world order)—especially in light of US Assistant Secretary of State Brian Nichols’ visit to Haiti, his ensuing meetings, and the presence of US Coast Guard ships in Haitian waters?

At least one thing’s for sure. Since the request for formal intervention and the presence of the US in the form of its warships and its emissary, the question of military intervention has been swiftly framed as a discourse on the supposed “consensus between Haitians.” In reality, it refers to the convergence of interests between the representatives of the de facto Haitian government; the representatives of the Montana Accord (agreed on between civic and political groups in the wake of Moise’s assassination); and the president, Fritz Jean, and prime minister, Steven Benoit, agreed on as part of that accord. The message is clear: If you do not want a military intervention, side with Ariel Henry, who initiated the request himself. Any posture of self-determination must undergo review by Ariel Henry and his crew.

In these circumstances, there can be no self-determination. It is as though those truly responsible for the military intervention (which was already underway) aren’t those who asked for it, but rather those who were unable to thwart it by finding an agreement with the former group. In this sense, the “nationalist” label (the current catchall term which, among other things, is being made to include any praxis refuting the colonial apparatus) refers to doing everything possible to avoid military intervention—and that means doing exactly what the representatives of the “Colonial Capitalist Internationale” want.

American presence in Haiti—in the form of warships and a high-ranking emissary—takes after historical colonial endeavors such as the Napoleonic expedition for the reestablishment of slavery (1802) and King Charles X’s fleet, sent to demand ransom for Haiti’s independence (1825). Yet, in this case, the point is not to put pressure on those who hold the keys to institutions, but rather to avoid losing control in a context where those in government are not only misguided, but also display the greatest shortcomings in managing the lives of the population for the better. The US’s current presence thus more closely echoes the language of the English warship HMS Bulldog, sent to shell the city of Cap Haitien to support President Geffrard against the anti-government insurrection of Salnave.

The Henry government uses the same grammar as its tutelar powers to discuss the current situation. Much has been made of “efforts deployed by the United States and Canada”: they have consisted in flying police equipment into Haiti on Canadian and US military cargo aircraft. Henry and the Haitian National Police offered warm, public thanks for material paid for with Haitian funds some time ago; indeed, these deliveries have come very late, and only thanks to pressure from Haitian civil society actors. More problematic still, the presence of foreign military planes at the Toussaint Louverture Airport in Port-au-Prince has served both as evidence of an ongoing military intervention and as a subterfuge to obtain such an intervention.

This request for intervention, while it seeks to obfuscate this fact, nevertheless exposes the political illegitimacy of the Henry government—made up of members of Henry’s PHTK and former members of the opposition. Its illegitimacy doesn’t rest on the usual discussion (or lack thereof) and confrontation between the governors and the governed, nor on the classic power play between the political opposition and the authorities in place; rather, it is the result of the absolute rejection on the part of Haitians of an order controlled and engineered by the PHTK machine in Haiti for over 10 years with one purpose in mind: defending the neoliberal interests and projects of the Colonial Capitalist Internationale. The request for intervention reveals the fact that the rejection of the PHTK machine is but one part of a broader rejection of the neoliberal colonial order as it has manifested itself in various anti-popular economic projects, which themselves were made possible by many attempts at reconfiguring Haiti socially and constitutionally: consider, to name but a few, the financial project of privatization of the island of Gonâve, the referendum to replace the 1987 Constitution, and others.

For the first time since the US military intervention of 1915 (the centenary of which was silenced by the PHTK machine), we are witnessing a direct confrontation between the Colonial Capitalist Internationale and the Haitian people, as local political go-betweens aren’t in a position to mediate and local armed forces (whether the military, the militias, or the armed gangs) aren’t able to fully and totally repress unrest. In this colonial scenario—drafted in the past five years, maintained and fueled by the geopolitics of “natural disasters,” epidemics, pandemics, and the presence of gangs (simultaneously functioning as the armed extensions of political parties and materializing “disorder”)—the only possible solution to chaos is military intervention by foreign forces.

Yet one cannot pretend that such an intervention will help the Haitian people, and no agreement crafted in the language of the colonial system can stifle popular demands and aspirations which, in the past twelve years, have built what Haitian academic and activist Camille Chalmers calls a real “anti-imperialist conscience.”

What of late has breathlessly been labeled the “Haitian crisis” must instead be identified as the highest point of the contradiction which has brewed throughout the PHTK regime: between the International Colonial Capitalists’ will to force us to live under an imposed order and our resistance to that order.

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

Continue Reading

Trending