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2) wealth extraction: debt, capital flight. 3) Ecological Debt ... still too expensive for the poor, as large corporations get cheap electricity ... – PowerPoint PPT presentation

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Title: Why%20the%20World%20Bank%20and%20IMF%20should%20be%20nixed%20(not%20fixed)

Political economy, oil and social resistance in
Patrick Bond University of KwaZulu-Natal
School of Development Studies and Centre for
Civil Society, Durban Presentation to OilWatch
and groundWork, 11 September 2008 Durban
Africas oil map
  • Substantial oil reserves
  • Oil and wars Sudan, Angola, Chad, Congo
  • US imports 16 from Africa
  • In ten years will import 25
  • http//www.catholicrelief.org/images/oil/Africa-Ma
  • (credit Horace Campbell)

Africas resource curse Excessive fossil fuel
resources in a context of growing int'l interest
(US Africa Command, Chinese patrimonial politics,
EU EPAs, SA arms acquisitions, persistent coups)?
  • Which regions have used up their own oil
  • Source C.J.Campell, www.energycrisis.org

What is main concern about keep the oil in the
soil (or coal in the hole, or resources in
the ground)?Answer loss of financial
resources, jobs, opportunities for
developmentCan we argue that oil impoverishes
African countries that oil threatens the
climate and that in any case, the North owes the
South an ecological debt?Can activists make
these strategic arguments convincing and
establish formidable tactical tools of struggle?

1) traditions of African political economy 2)
wealth extraction debt, capital flight 3)
Ecological Debt 4) trends in aid, trade and
commodity prices 5) correcting GDP for
environment, society 6) energy rights 7) climate
1) Our traditions
Walter Rodneyon the production of poverty
The question as to who and what is responsible
for African underdevelopment can be answered at
two levels. Firstly, the answer is that the
operation of the imperialist system bears major
responsibility for African economic retardation
by draining African wealth and by making it
impossible to develop more rapidly the resources
of the continent. Secondly, one has to deal with
those who manipulate the system and those who are
either agents or unwitting accomplices of the
said system.
The national bourgeoisie will be quite content
with the role of the Western bourgeoisies
business agent, and it will play its part without
any complexes in a most dignified manner... In
its beginnings, the national bourgeoisie of the
colonial country identifies itself with the
decadence of the bourgeoisie of the West. We need
not think that it is jumping ahead it is in fact
beginning at the end. It is already senile before
it has come to know the petulance, the
fearlessness, or the will to succeed of
youth. Frantz Fanon, The Wretched of the Earth
African progressive leaders, political economists
and social justice strategists, including
  • Charles Abugre, Adebayo Adedeji, Jimi Adesina,
    Claude Ake, Neville Alexander, Samir Amin, Peter
    AnyangNyongo, A. M. Babu, Ahmed Ben Bella,
    Steve Biko, Dennis Brutus, Amilcar Cabral, Fantu
    Cheru, Jacques Depelchin, Demba Dembele, Yasmine
    Fall, Frantz Fanon, Ruth First, M. P. Giyose, Yao
    Graham, Gill Hart, Pauline Hountondji, Eboe
    Hutchful, Khafra Kambon, Dot Keet, Rene
    Loewenson, Sara Longwe, Patrice Lumumba, Samora
    Machel, Archie Mafeje, Ben Magubane, Amina Mama,
    Mahmood Mamdani, Guy Mhone, Darlene Miller,
    Thandika Mkandawire, Dani Nabudere, Léonce
    Ndikumana, Njoki Njehu, Kwame Nkrumah, Julius
    Nyerere, Georges Nzongola-Ntalaja, Oginga Odinga,
    Ike Okonto, Adebayo Olukoshi, Oduor Ongwen, Bade
    Onimode, Haroub Othman, Kwesi Prah, Eunice Sahle,
    Thomas Sankara, Issa Shivji, Yash Tandon, Riaz
    Tayob, Aminata Traoré, Dodzi Tsikata, Kwame Ture,
    Ernest Wamba dia Wamba, Tunde Zack-Williams, Paul

Who supports the tradition?
  • For internet-based guide to the toughest
    contemporary arguments against imperial power
    emanating from the continent, there is no better
    web resource than fahamu.orgs Pambazuka weekly
    news and analytical service
  • at Africa World Press, Kassahun Checole puts many
    of these writers into print - as do Zed Books,
    the University of KwaZulu-Natal, Codesria in
  • International supporters of African poli econ
    include Hans Abrahamsson, Soren Ambrose, Michael
    Barratt-Brown, Salih Booker, Sarah Bracking,
    Victoria Brittain, Jan Burgess, Ray Bush, George
    Caffentzis, Horace Campbell, Claudia Carr, Lionel
    Cliffe, Carole Collins, Dan Connell, Fred Cooper,
    Imani Countess, Basil Davidson, Jennifer Davis,
    Silvia Federici, Bill Fletcher, James Ferguson,
    Reginald Green, Branwen Gruffwydd Jones, Joe
    Hanlon, Colin Leys, Bill Martin, Bill Minter,
    Giles Mohan, Jane Parpart, John S. Saul, Ann
    Seidman, Tim Shaw, Vladimir Shubin, Colin
    Stoneman, Carol Thompson, Meredith Turshen,
    Michael Watts, David Wiley, Gavin Williams, Anna
    Zalik and many others
  • Aside from solidarity activism, they work through
    radical academic associations (e.g. Association
    of Concerned African Scholars and the Committee
    for Academic Freedom in Africa), journals (e.g.
    the Review of African Political Economy) and
    solidarity groups (the Toronto Committee for the
    Liberation of Southern Africa was exemplary, as
    is Africa Action today).
  • Key funders Osisa, Rosa Luxemburg Stiftung,
    ActionAid, Oxfam

2) Wealth extraction debt and capital flight

Debt slavery includes the uncompensated
environmental goods and services that African
countries give to Northern countries which
along with Odious Debt that the North should
cancel, and capital flight that should be
repatriated, would result in substantial resource
transfers to the South
Odious debt (16 African countries)Source Eric
Capital flight from Africa, 1970-2004Source
James Boyce, Leonce Ndikumana
3) Ecological debt
Jubilee South ecological debt is the debt
accumulated by Northern, industrial countries
toward Third World countries on account of
resource plundering, environmental damages, and
the free occupation of environmental space to
deposit wastes, such as greenhouse gases, from
the industrial countries.
Types of ecological debt (Joan Martinez-Alier)
  • unpaid costs of reproduction or maintenance or
    sustainable management of the renewable resources
    that have been exported
  • actualised costs of the future lack of
    availability of destroyed natural resources
  • compensation for, or the costs of reparation
    (unpaid) of the local damages produced by exports
    (for example, the sulphur dioxide of copper
    smelters, the mine tailings, the harms to health
    from flower exports, the pollution of water by
    mining), or the actualised value of irreversible
  • (unpaid) amount corresponding to the commercial
    use of information and knowledge on genetic
    resources, when they have been appropriated
    gratis (biopiracy)
  • (unpaid) reparation costs or compensation for the
    impacts caused by imports of solid or liquid
    toxic waste and
  • lack of payment for environmental services or for
    disproportionate use of Environmental Space,
    e.g. (unpaid) costs of free disposal of gas
    residues (carbon dioxide, CFCs, etc) assuming
    equal rights to sinks and reservoirs (75
    billion/year) crucial for addressing climate
    crisis, which will hit Africa far worse than

Kiliminjaro melts 1970-2000
Lake Chad dries 1973-2001
Climate and African food
  • It is projected that there could be a possible
    reduction in yields in agriculture of 50 by
    2020 in some African countries... In Africa, crop
    net revenues could fall by as much as 90 by
    2100, with small-scale farmers being the most
  • Testimony to the US House of Reps. Select
    Committee on Energy Independence and Global
    Warming, by R.K. Pachauri, Chairman, United
    Nations Intergovernmental Panel on Climate
    Change, August 2007

4) Trends in aid, trade and commodity prices
AID Declining commitmentsSource ActionAid
Aid in contextFar less than military spending
Source UNDP HDR 2005
Trade not aid?Recent commodity price increases
But longer-term commodity exportvalue trends are

Africas exports (excluding SA)Source Africa
Export dependenceSource Africa Commission
Multinational corporate profits
Source UN Conference on Trade and Development
(2007), World Investment Report 2007, Geneva.
5) Correcting GDP for environment, society
It is time to correct GDP bias (global)for
pollution, resource extraction, etc?
  • A genuine progress indicator corrects the bias
    in GDP Source redefiningprogress.org

World Bank estimates of tangible wealthsubsoil,
timber, not-timber forest resources, protected
areas, cropland, pastureland, produced capital,
urban land, intangible wealth - the cases of
Rwanda, Senegal, Seychelles, Singapore and South
Africa(per capita US measure Where is the
Wealth of Nations?, WB, 2006)
World Bank method for adjusting savings to
account for a countrys tangible wealth and
resource depletionThe case of Ghana, 2000(per
capita US measure)
Where is Africas wealth?World Bank recording of
African countries adjusted national wealth and
savings gaps, 2000
6) Energy rights
A typical rural African energy system

Energy Source
Energy Transmission
Energy Use
Electrification rates
World average
Developing countries average
Redirect resources to lifeline household
suppliesSAs Free Basic Electricity
  • African National Congress-led local government
    will provide all residents with a free basic
    amount of water, electricity and other municipal
    services, so as to help the poor. Those who use
    more than the basic amounts will pay for the
    extra they use.
  • (ANC campaign promise, 2000 municipal elections)

Two features
  • The promise is based on a universal entitlement
    -- basic needs should be met (regardless of our
    income), consistent with the SA Constitutions
    Bill of Rights to a clean environment
  • The promise also means that those who consume
    more should pay more per unit after the free
    basic supply, which promotes cross-subsidies
    (i.e., redistribution), and conservation.
  • Of course, in reality still too expensive for
    the poor, as large corporations get cheap

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7) Climate
Genuine climate change reformplug fossil fuel
consumptionleave the oil in the soil, the
coal in the hole, the resources in the ground
Enlightened establishmentThe Extractive
Industries Review
  • Phasing out lending in support of oil and coal
    and to invest its scarce development resources in
    renewable energy by setting lending targets of
    increasing renewable energy lending by 20 a year

I cant understand why there arent rings of
young people blocking bulldozers and preventing
them from constructing coal-fired power plants.
- Al Gore speaking privately, August 2007?
Petro-mineral resourcesLeave the oil in the
  • Alaska wilderness and California offshore
    drilling campaigners
  • Oil Watch
  • women of the Niger Delta, ERA, MEND
  • Australian Rising Tide v Newcastle coal exports
  • British Climate Camp
  • Attac, Norway
  • Alberta, Canada tar sands green indigenous
  • South Durban Community Environmental Alliance
    against new pipeline that will double petrol flow
    to Johannesburg
  • Ecuadoran indigenous activists, Accion Ecologia
    and Rafael Correa ?- who agree that Ecuadors
    main oil reserve (Ishpingo-Tiputini-Tambococha,
    in Yasuní National Park) should stay in the
    ground (August 2007)

Climate Justice Now!Bali, December 2007
  • La Vía Campesina
  • Durban Group for Climate Justice
  • Oilwatch
  • Pacific Indigenous Peoples Environment Coalition
  • Sustainable Energy and Economy Network (Institute
    for Policy Studies)
  • Indigenous Environmental Network
  • Third World Network
  • Indonesia Civil Society Organizations Forum on
    Climate Justice
  • World Rainforest Movement.
  • Carbon Trade Watch (a project of the
    Transnational Institute)
  • Center for Environmental Concerns
  • Focus on the Global South
  • Freedom from Debt Coalition, Philippines
  • Friends of the Earth International
  • Women for Climate Justice
  • Global Forest Coalition
  • Global Justice Ecology Project
  • International Forum on Globalization
  • Kalikasan-Peoples Network for the Environment

Climate Justice Now!Bali, December 2007Movement
  • leaving fossil fuels in the ground and investing
    in appropriate energy-efficiency and safe, clean
    and community-led renewable energy
  • rights-based resource conservation that enforces
    Indigenous land rights and promotes peoples
    sovereignty over energy, forests, land and water
  • sustainable family farming and peoples food
  • reduced consumption
  • huge financial transfers from North to South
    based on historical responsibility and ecological
    debt for adaptation and mitigation costs paid for
    by redirecting military budgets, innovative taxes
    and debt cancellation

Leave the Oil in the Soil! Nigerians campaign
against Shell and against drilling in new blocks,
June 2008
Is a green-red energy alliance possible? Leave
oil in soil plus electricity-as-a-right?
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