Dismantling and transcending colonialism’s legacy

In “decolonial” discourse, the African leadership landscape is flattened to the point of becoming a caricature. In an earlier variation of this caricature, Kwame Nkrumah’s injunction of “seek ye first the political kingdom” was presented by political scientist Ali Mazrui as a deficient obsession with political power to the neglect of the economic. In the current variation, the neglect of epistemic “decoloniality” is characterized as the deficient underbelly of the “nationalist” movement.

Kwame Nkrumah, Sédar Senghor, and Julius Nyerere are not only three of the most cerebral figures of Africa’s “nationalist” movement, but unlike Amilcar Cabral they lived to lead their countries in the aftermath of formal colonial rule.

Contrary declarations notwithstanding, Senghor, Nkrumah, and Nyerere were acutely aware of the colonial epistemological project and the need to transcend it. Indeed, philosopher Souleymane Bachir Diagne’s re-reading of Negritude as epistemology argued that its salience lies in the dissolution of the binary opposition of subject and object in the logic of René Descartes. Whatever one’s take on the specificity of Senghor’s claims of Africa’s modes of knowing—by insisting on the interconnectedness of subject and object—he deliberately sought to mark out what is deficient in modern European epistemology and valorize African systems of knowledge. This epistemological project is built on a distinct African ontological premise.

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Food and the struggle for Africa’s sovereignty

The COVID-19 crisis has highlighted the stark reality of Africa’s extreme dependence on imports to feed our populations. In West Africa, 40% of the rice consumed is imported; African countries do not produce enough processed agricultural products to sustain their populations, with the three highest agricultural imports being wheat, rice, and vegetable oil; and local agriculture across the continent is dependent on imported inputs for production and therefore dependent on foreign exchange.

For Africans to chart a course away from extreme dependence on food imports prevalent now, the policies and thinking of early post-independence Africa—countries like Ghana and Tanzania —and international peasant movements, like La Via Campesina—offer a wealth of lessons.

As key countries adopted restrictive measures in their attempts to manage the spread of COVID-19—including the closure of air, land, and sea borders, and agricultural export restrictions—Africa is seeing a significant disruption of the supply chain due to the resulting decrease in the volume of imports. If exporters of cereals and staple foods, also affected by the pandemic, were to suddenly cease production, the many African countries dependent on these imports would be unable to feed their populations.

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Big business’s response to the COVID-19 pandemic highlights a problem of incentives in South Africa

The COVID-19 pandemic has swept across the global economy, causing havoc and leaving many economies teetering on the brink of economic and social collapse. Moreover, the arrival of a second and now third wave of infections and a further mutation of the virus is driving the economy further into peril and uncertainty. The announcement by Cyril Ramaphosa, back in March 2019, that two of South Africa’s wealthiest families and the pinnacle of big business, the Rupert and Oppenheimer families, would be donating R1 billion each was met with admiration from all corners of the country. These commitments have since been matched by the Motsepe group of companies and Naspers, donating R1.5 billion. To date, the fund has amassed over R3.22 billion in pledges from a wide array of private, public, and political donors.

Responses of this type are understandable when combining the already bleak outlook for the South African economy with a significant and potentially catastrophic supply shock. However, a question that may be playing on many South Africans minds is: why, given the fact that South Africa’s economy has long struggled with growth and several structural issues, is this response from big business only coming now in the face of a global pandemic? An easy answer may be that there has not yet been an event of this magnitude for big business to respond. However, a counter to this argument is that businesses should continuously be re-investing their profits regardless of the economy’s health.

South Africa has a long history of the inefficient use of profits, which favours hording cash and conducting unproductive investments such as mergers and acquisitions. These uses of profits are a direct result of the skewed incentives facing the agents of many large companies. For instance, many CEOs are incentivised through sizeable bonus packages to maximise the shareholders’ value rather than focusing on the long-term health and sustainability of the business. This short-term view causes CEOs to opt to retain earnings rather than embark on risky research, development, and innovation endeavours that often fail but may result in enormous payoffs if they succeed economically and socially. Short-termism is a result of a corruption of the idea of value creation where price is associated too closely with true value, nuturing an entrenched system of extraction that contributrs to worsening economic and social conditions. This is something the professor in the Economics of Innovation and Public Value at University College London, and director of the Institute for Innovation and Public Value, Mariana Mazzucato laments in her book The Value of Everything.

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Theory from the South, or Reading the Global Order from the Antipodes

By John and Jean Comaroff

There appears to be a growing echo, slowly reverberating around the world, that, for good, ill, or both, Africa is the future, a harbinger of Europe’s history-to-come. Experts may debate the reasons for this: among them, a significant population bulge heavily skewed toward youth; an urban “revolution” unique in the current era; burgeoning consumer markets, rising middle classes, and accelerating techno-development; also, a propensity to repurpose material practices both foreign and homegrown, thus to remake modernity for late modern times. Says Keith Hart (2017:2), basing his prediction on the long historical relationship between demography and economy, “Sooner or later, Africa and Europe will change rank order.” The former – Africa, the continent that once signified the West’s prehistoric past and remains a perennial “basket case” in the jaundiced eyes of Euro-America – is now frequently taken to prefigure what lies ahead for humanity at large.

A decade or so ago, our Theory from the South explored this proposition and its implications for the social sciences, one of them being that Africa, as an “ex-centric” location (Bhabha 1994) and ground-zero of the Global South, has become a privileged axis from which to theorize the emerging world order of the twenty-first century. In so doing, it provoked a great deal of argument and, among northern intellectuals unused to the idea that their hemisphere may not be the font of all knowledge and theory-work, frank skepticism.

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Investment, Sustainability, Decent Jobs: Challenges and Promises for the Sub Saharan African Auto Industry

In a comparative research recently conducted for IndustriALL Global Union/ FES South Africa, we[1] tried to shed light on the high potential of the automotive industry in Sub Saharan Africa. At the same time, we explored the key challenges and pressing issues that need to be addressed for a sustainable industrial development path in the region. Our research report focuses on seven countries, identified as promising, fast-growing or broadly committed to supporting their Auto sector: Ghana, Kenya, Ethiopia, Namibia, Nigeria, Rwanda and South Africa.

First and foremost, the report claims attention towards these economies, and industries,  that are still largely underexplored, that still enjoy very limited visibility, whereas the largest portion of research on industrial development and on the Automobile industry is often addressed to traditionally established industries in the Global North (Europe, US, Japan) or to emerging giants in the Global South (China, Mexico, Brazil etc.). Our objective was thus to emphasise the increasingly important role that these seven industries, and the Sub Saharan African region more broadly, can play within the Global Auto Industry. Despite structural weaknesses that do persist, and despite the heavy impact of the Covid-19 pandemic, these seven countries share a willingness to own their industrial development trajectory, and to widen their participation in Global Production Chains. In this regard, the local auto industry remains an important bet.

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Neoliberalism and Resistance in South Africa: Economic and Political Coalitions

In the first quarter of 2021, amidst the social and economic devastation wrought by the Covid-19 pandemic, the South African Treasury announced, and subsequently defended, its decision to refrain from increasing the country’s extensive social grant payments—which now reach 18 million impoverished citizens—beyond the growth in inflation. Treasury officials have argued that a larger increase in social welfare protection is simply not currently feasible given the country’s rapidly rising public debt—which has now breached 80% of the debt/GDP ratio—and investor demands for fiscal consolidation. This type of fiscal restraint is unfolding in a context of heightened wealth inequality and an official unemployment rate now above 30%.

Those familiar with the financialization scholarship pertaining to developing countries—that strand which portrays the global financial markets as a force that can alter committed policy trajectories on a whim (Koelble, 2004), as well as the more nuanced literature (Mosley, 2000; Hager, 2017; Streeck, 2014; Ansari, 2017)—may recognize the Treasury’s framing of South Africa’s fiscal dilemma. However, as much of the international development literature on industrial upgrading and state policy has noted (Wade, 2018; Alami, 2019; Rodrik, 2006), there is a third option available to policy-makers in developing countries beyond the binary of debt build-up vs. austerity; namely, comprehensive, employment generating state-led development.

This is precisely the case I make in my new book, published by Palgrave (2021), Neoliberalism and Resistance in South Africa: Economic and Political Coalitions. In addition to documenting the onset of a financialized accumulation regime in post-apartheid South Africa since the democratic transition and the ANC’s adoption of economic liberalization, the monograph also highlights the missed opportunities that could have allowed the country to embark on a self-sustaining path of industrial up-grading, inclusive development, and internal revenue generation. Such missed opportunities include the early rejection by party leaders of the heterodox “Macro-Economic Research Group” (MERG) policy cluster, the removal of the trade unions from broader macro-policy-making processes, the rejection of a modest reconstruction and wealth tax, and the abandonment of much of the “Reconstruction and Development Program” (RDP) platform in favor of the orthodox “Growth, Employment, and Redistribution” (GEAR) package in 1996. Had some of these missed opportunities been pursued, South African state officials would likely be in a much better position to currently adopt expansionary fiscal policies, and perhaps could have lifted their citizens out of poverty via inclusive development instead of cash-transfers.

Yet, as my monograph further documents, since the democratic transition Treasury officials have continued, despite recommendations from other government ministries such as the Department of Trade and Industry (DTI), to veto or oppose heterodox policy proposals that could potentially offer South Africa a path away from the current neoliberal quagmire. Such proposed polices include capital controls, export taxes on raw materials, the utilization of foreign exchange reserves to capitalize State-Owned-Enterprises (SOEs), and targeting specific industrial sectors for subsidies and state promotion.

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Enduring Relevance: Samir Amin’s radical political economy

By Ingrid Harvold Kvangraven, Maria Dyveke Styve, Ushehwedu Kufakurinani and Ray Bush

In moments of great uncertainty there is refuge to be found in the work of intellectual titans like Samir Amin. After the sad news of his passing in August 2018 in Paris, aged 86, we began thinking about how best to explore the enduring relevance of his analysis and concepts to make sense of contemporary crises.

The pertinence and analytical heft of Amin’s work is particularly important in the contemporary period marked by the interconnected crises related to COVID-19, Black Lives Matter, the climate emergency, and looming debt crises across the periphery. In the years ahead, confronting these multiple and intertwined crises will require the kind of commitment to combining research with political engagement that Amin demonstrated.

Amin’s ability to weave together thorough analysis of the polarising effects of capitalism with concrete political projects for an international radical left makes his work particularly relevant in our quest to understand capitalism, its particularities across the world, and oppositions to it. There is a younger generation of scholars, of which we are a part, that is particularly hungry for Amin’s perspectives, one that came of age in a time where the universities have been thoroughly marketised and moulded by neoliberal processes, and where intellectual production and debates are not necessarily embedded within social struggles.

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The pathology of economics

COVID-19 exposes the deadly dominance of neoclassical economics in Africa.

On February 24, 2021 Ghana received a vaccine shipment (600,000 doses), the first to sub-Saharan Africa under the COVAX facility. It amounted to a tiny fraction of the hundreds of millions needed on a continent increasingly ravaged by the pandemic. Contrast this to the tens of millions already vaccinated in the UK and US. The optimism that Africa would be spared by “early lockdown”, “less dense population, “the effect of ultraviolet”, “a climate that meant people spent more time outside” and “Africa’s youthful population” has rapidly faded. Officially there are now more than 100,000 deaths on the continent, but the real numbers are much higher due to the paucity of testing and the lack of capacity to accurately track and evaluate causes of mortality.

The shortage of tests and vaccines are exacerbated by the West’s hyper-nationalism restricting the import of these two vital tools to combat the pandemic. The same forces have also generated a scarcity of personal protective equipment (PPE), the lack of monoclonal antibody and other treatments, and terrible shortages of medical oxygen so vital to keeping people alive. How is it possible, 60 years after independence, for African countries to be so highly dependent on the goodwill of the outside world for basic health goods? A good deal of the answer lies in the pathology of economics and related policies, which have spread like a pandemic globally and have come to dominate both the West and the continent of Africa. How did this come about? How does it relate to the strategies that have undermined African capacities to mitigate the effects of the pandemic on the health and welfare of its people? And what should be done?

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