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Africa is not poor, we are stealing its wealth
by Nick Dearden
Global Justice Now, agencies
United Kingdom
 
Africa is poor, but we can try to help its people. It''s a simple statement, repeated through a thousand images, newspaper stories and charity appeals each year, so that it takes on the weight of truth. When we read it, we reinforce assumptions and stories about Africa that we''ve heard throughout our lives. We reconfirm our image of Africa.
 
Try something different. Africa is rich, but we steal its wealth. That''s the essence of a report (see link below) from several campaign groups released today. Based on a set of new figures, it finds that sub-Saharan Africa is a net creditor to the rest of the world to the tune of more than $41bn. Sure, there''s money going in: around $161bn a year in the form of loans, remittances (those working outside Africa and sending money back home), and aid.
 
But there''s also $203bn leaving the continent. Some of this is direct, such as $68bn in mainly dodged taxes. Essentially multinational corporations "steal" much of this - legally - by pretending they are really generating their wealth in tax havens. These so-called "illicit financial flows" amount to around 6.1 percent of the continent''s entire gross domestic product (GDP) - or three times what Africa receives in aid.
 
Then there''s the $30bn that these corporations "repatriate" - profits they make in Africa but send back to their home country, or elsewhere, to enjoy their wealth. The City of London is awash with profits extracted from the land and labour of Africa.
 
There are also more indirect means by which we pull wealth out of Africa. Today''s report estimates that $29bn a year is being stolen from Africa in illegal logging, fishing and trade in wildlife. $36bn is owed to Africa as a result of the damage that climate change will cause to their societies and economies as they are unable to use fossil fuels to develop in the way that Europe did. Our climate crisis was not caused by Africa, but Africans will feel the effect more than most others. Needless to say, the funds are not currently forthcoming.
 
If African countries are to benefit from foreign investment, they must be allowed to - even helped to - legally regulate that investment and the corporations that often bring it.
 
In fact, even this assessment is enormously generous, because it assumes that all of the wealth flowing into Africa is benefitting the people of that continent. But loans to governments and the private sector (at more than $50bn) can turn into unpayable and odious debt.
 
Ghana is losing 30 per cent of its government revenue to debt repayments, paying loans which were often made speculatively, based on high commodity prices, and carrying whopping rates of interest. One particularly odious aluminium smelter in Mozambique, built with loans and aid money, is currently costing the country £21 for every £1 that the Mozambique government received.
 
British aid, which is used to set up private schools and health centres, can undermine the creation of decent public services, which is why such private schools are being closed down in Uganda and Kenya. Of course, some Africans have benefitted from this economy. There are now around 165,000 very rich Africans, with combined holdings of $860bn.
 
But, given the way the economy works, where do these people mainly keep their wealth? In tax havens.
 
A 2014 estimate suggests that rich Africans were holding a massive $500bn in tax havens. Africa''s people are effectively robbed of wealth by an economy that enables a tiny minority of Africans to get rich by allowing wealth to flow out of Africa.
 
So what is the answer? Western governments would like to be seen as generous beneficiaries, doing what they can to "help those unable to help themselves". But the first task is to stop perpetuating the harm they are doing. Governments need to stop forcing African governments to open up their economy to privatisation, and their markets to unfair competition.
 
If African countries are to benefit from foreign investment, they must be allowed to - even helped to - legally regulate that investment and the corporations that often bring it. And they might want to think about not putting their faith in the extractives sector.
 
With few exceptions, countries with abundant mineral wealth experience poorer democracy, weaker economic growth, and worse development. To prevent tax dodging, governments must stop prevaricating on action to address tax havens. No country should tolerate companies with subsidiaries based in tax havens operating in their country.
 
Aid is tiny, and the very least it can do, if spent well, is to return some of Africa''s looted wealth. We should see it both as a form of reparations and redistribution, just as the tax system allows us to redistribute wealth from the richest to the poorest within individual societies. The same should be expected from the global "society".
 
To even begin to embark on such an ambitious programme, we must change the way we talk and think about Africa. It''s not about making people feel guilty, but correctly diagnosing a problem in order to provide a solution. We are not, currently, "helping" Africa. Africa is rich. Let''s stop making it poorer.
 
* Nick Dearden is the director of UK campaigning organisation Global Justice Now. He was previously the director of Jubilee Debt Campaign: http://bit.ly/2DS1upO
 
http://www.project-syndicate.org/commentary/china-sri-lanka-hambantota-port-debt-by-brahma-chellaney-2017-12


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Our offices were raided in Uganda. Here''s what to do if yours are, too.
by Arthur Larok
ActionAid Uganda, Devex
 
Last month, police raided the offices of ActionAid Uganda, the Great Lakes Institute (GLISS), and Solidarity Uganda. More raids on the offices of other NGOs have since followed. Every indication is that we should prepare for a long, drawn-out attack on Ugandan civil society.
 
Uganda is one of a growing number of countries experiencing a closing of civic space, putting at risk human rights defenders and the communities we serve and protect. The Civicus Monitor offers a disturbing depiction of the state of civic space globally, with the latest developments in Uganda earning the country a rating of “repressed” — one category above “closed,” in a five-category rating system.
 
In this instance, the offices of ActionAid Uganda, GLISS, and Solidarity Uganda were raided by police in a cordon and search operation. At ActionAid, staff were prevented from leaving for several hours as police thoroughly searched the premises; removing documents and confiscating phones and laptops. The search warrant claimed that all three organizations were involved in “illicit financial transactions” and “subversive activities to destabilize Uganda.” The severity of these accusations and subsequent raids on other NGOs indicate that an attack on civil society is underway.
 
As this encroachment continues, I reflect on possible motives behind these recent attacks; what they might mean for the future; and what lessons we can learn, as we prepare for further threats.
 
The office raid appears to be part of a wider crackdown on legitimate protests against the plan to remove the presidential age limit from the Ugandan Constitution, thus allowing the current president to remain in power indefinitely.
 
We think these attacks have ulterior motives.
 
1. To delegitimize civil society. Police raids on our offices immediately present us as subversive elements. This could affect our public image, and that of civil society in general. It could also scare away our funding partners and threaten the stability of our work.
 
2. To compromise our systems and information. These attacks disrupt our work, and potentially sow seeds for future surveillance by targeting our communications systems and infrastructure.
 
3. To disrupt and derail us from our mission. Part of our mission as civil society is to help articulate public positions. We are opposed to regressive constitutional amendments. We will invest in organizing citizens to resist attempts to remove the age-limit, even though we know this puts us in direct conflict with the ruling party.
 
4. To threaten and demoralize civil society. In the hopes of driving us into self-censorship, weakening our resolve, and preventing us from tackling injustice.
 
5. To provide a justification for further action. Such as halting activities of civil society under the pretext that investigations are still ongoing. We have already seen this happening in the case of ActionAid, where two field activities have been halted by the police.
 
What can we learn from these attacks and what should civil society do to defend ourselves in ongoing efforts to protect civic space? How can we ensure that we are not derailed in our mission to tackle injustice and poverty?
 
Here are some tips if your office is at risk of being raided.
 
1. Always keep your house in order. You must update and back up all institutional information and documentation. During the impromptu siege, the police demanded documents without delay. If we had failed to do so, it may have caused unnecessary suspicion.
 
2. Staff and board members must understand all processes in the organization. If interrogated, we do not want colleagues to inadvertently arouse suspicion by saying inconsistent things about how we organize ourselves and what our business processes are.
 
3. Rapid legal response is necessary. As civic and political space continues to shrink in Uganda and globally, we must strengthen our legal response capabilities. The presence of competent lawyers is extremely important.
 
4. A positive relationship with the media is essential. The media were very helpful in reporting the siege — and established relations meant they did so in a manner that was both supportive and objective. Social media platforms were of increased importance during this crisis, and future investment here is key.
 
5. Being relevant to civil society and wider citizens’ struggles. The immense show of solidarity from other civil society organizations, politicians, and the public at our time of need demonstrated our value and relevance to civil society. The more outward looking an NGO, the more likely it is to receive much-needed solidarity from others. We were able to call upon our supporters both in Uganda and across the world to amplify our voice and provide solidarity.
 
6. Beware of potential informers. Finally, we have learned that the forces that seek to undermine our work are in our midst. It is therefore important to better understand our internal environment and partners with whom we work. We must remain vigilant and transparent and have the confidence to defend what we stand for.
 
The threat to civil society is far-reaching. We must learn from these attacks and work together to protect and defend the legitimacy and effectiveness of the work that we do.
 
* Arthur Larok is the current country director of ActionAid Uganda. He is the current chairperson of the Uganda National NGO Forum, the largest NGO platform in Uganda. This story is part of a series by Devex - Civil space in peril, examining the shrinking civic space for NGOs.


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