a capitalist failure

Thousands of needless deaths occurred from famine in East Africa last year because the international community failed to heed early warnings. Oxfam and Save the Children say it took more than six months for aid agencies to act on warnings of imminent famine.

"Many donors wanted proof of a humanitarian catastrophe before acting to prevent one," the report says. "Sophisticated early warning systems first forecast a likely emergency as early as August 2010, but the full-scale response was not launched until July 2011." By that time it says, "malnutrition rates in parts of East Africa had gone far beyond the emergency threshold and there was high profile media coverage of the crisis"

Between 50,000 and 100,000 people died in Kenya, Ethiopia and Somalia. At one stage during the famine the United Nations estimated that 10 million people were in need of humanitarian assistance.

Oxfam's Chief Executive, Barbara Stocking said "It is shocking that the poorest people are still bearing the brunt of a failure to respond swiftly and decisively."

Save the Children's Chief Executive, Justin Forsyth, said clear warnings had been ignored. "We can no longer allow this grotesque situation to continue; where the world knows an emergency is coming but ignores it until confronted with TV pictures of desperately malnourished children"

the real drug problem

Malaria kills nearly a million people each year, mainly young children and pregnant women. Hopes of controlling malaria in Africa could be wrecked by criminals who are circulating counterfeit and substandard drugs, threatening millions of lives, scientists are warning. Large parts of Africa are threatened by the distribution of fake and poor quality anti-malarials made illicitly in China.

Some of the fake drugs contain artemisinin, but not enough to kill all the parasites in a child's body. Not only will the child struggle to recover, but the parasites that survive may become resistant to the drug and spread a form of the disease that ACTs (artemisinin combination therapy) will no longer cure. Analysis also showed some counterfeits contained a mixture of wrong active pharmaceutical ingredients, some of which may initially alleviate malaria symptoms but would not cure malaria. Worse still, these unexpected ingredients could cause potentially serious side effects, particularly if they were to interact with other medication that the patient was taking, such as anti-retroviral therapies for HIV.

It will be very hard for the affected African countries to tackle the problem, however. WHO has said that 30% of drug regulatory authorities don't function. They don't list which they are but logically they are likely to be in economically poor, malarious countries.

http://www.guardian.co.uk/society/2012/jan/16/fake-poor-quality-malaria-drugs-africa

ANC elite

In his Communist Manifesto Karl Marx wrote that, 'Each step in the development of the bourgeoisie was accompanied by a corresponding political advance of that class...The executive of the modern state is but a committee for managing the affairs of the bourgeoisie'. Here Marx is referring to the ability of the bourgeois to translate economic power into state power, thus reducing our governments to mere managers acting in the interests of capital and not the people. This has happened to governments around the world. But here our politicians are not mere managers. They are, like in Russia or India, a predatory elite with their own class interests and they support capital and repress the people as long as they can get their own share...

...The commanding heights of the economy continue to reside in the hands of a tiny elite, most of which is white. Unemployment is skyrocketing. Most young people have never worked. Anyone can see that there is an excessive amount of poverty in South Africa. There are shacks everywhere. In fact, poverty reigns supreme in our country. Every year Jacob Zuma promises to create new jobs and every year unemployment grows....

...Poverty and inequality are getting worse. The government is increasingly criminalising poverty instead of treating it as a political problem. When people try to organise they are always presented as a third force being used to undermine democracy and bring back racism. But it is the ANC that has failed to develop any plans to democratise the economy. It is the ANC that has failed to develop any plans to democratise the media. It is the ANC that disciplines the people for the bourgeoisie - a role that they are very comfortable to play! It is the ANC that follows the line of the World Bank and the International Monetary Fund. It is our local leaders who are taking the leap from their old bosses, stealing from us, treating us with contempt, acting like the former colonial government and oppressing us. During the struggle our leaders embodied the aspirations of the people. But once they took state power they didn't need us any more. We were sent home. We are only called out to vote or attend rallies. But all the time our people are evicted from farms, paving way for animals as farms are turned into game reserves under the pretext of tourism. Our people are evicted from cities. Our people are denied decent education. The party has become a mixture of what Marx would call an instrument of power in the hands of the bourgeoisie and what Fanon would call a means of private advancement.

Biko wrote that 'This is one country where it would be possible to create a capitalist black society, if whites were intelligent, if the nationalists were intelligent. And that capitalist black society, black middle class, would be very effective ... South Africa could succeed in putting across to the world a pretty convincing, integrated picture, with still 70 percent of the population being underdogs.'...

The only way to truly honour the struggles of the past is to stand up for what is right, now. The struggle continues and will continue until we are all free.

Ayanda Kota chairperson of Unemployed People's Movement in South Africa.

Full article at http://allafrica.com/stories/201201130953.html

Micro-debt slavery

Lending by microfinance organisations is pushing the poor deeper into the poverty, a new study says.

Hailed as the saviour to the poor, the microfinance model works in simple way – it gathers many low-income earners, gets them to form a group, and then loans them small amounts of money payable over flexible periods. It supposedly works for the poor in that it does away with the need for the collateral needed to secure normal commercial loans. The small loans are meant to help them set up income-generating projects to enable them to earn and pull themselves out of poverty. Acceptance by a group is said to deter entry to those deep in poverty. The oft-cited loan repayment rates of about 90 to 100 per cent – much higher than repayment rates at commercial banks – hide the blood, sweat and tears of microfinance borrowers. And the fact that they are unregulated means the microfinance institutions operate under their own rules, and some border on being shylocks.

The study by the University of Nairobi economics lecturer Joy Kiiru in collaboration with similar research done in Uganda by Flavian Zeija dismisses the notion that lending small amounts normally co-secured by a group is “a positive poverty eradication tool and potentially powerful engine of growth for the economy.” Instead, they say, the practice may be condemning millions to abject poverty.

The problem, the studies say, is lack of understanding by borrowers on what the loan contract entails and exploitation by microfinance of this ignorance.

“In fact, many clients only ask where to sign because they urgently need the money. Even those who can read and write do not bother to read the documents. They never question anything,” a Uganda microfinance credit officer is quoted saying in the report. Multiple borrowing pushing the repayment beyond the borrower’s ability to repay has also been cited as major problem. Multiple borrowing kicks in when a borrower has difficulty repaying a loan and borrows to avoid default. The loan then balloons, and by the time the credit bubble bursts, the borrower will have nothing left when the group decides to sell the property for default. In some instances, borrowers are forced to sell their household goods to repay loans, and as it recently happened in Makueni, others are forced to surrender their children to the group as a form of blackmail to bring in relatives to help repay the loan.

“Peers in a group will not allow very poor people to join them because the poor are likely to use their loans for consumption and therefore risk default,” said Ms Kiiru. This is so because unlike the normal commercial loan given to an individual, a microfinance loan given to a group is jointly guaranteed by all members, and default by one member has consequences for the entire group. “This finding implies that microfinance may be useful for the better-off poor, but it is simply not an option to the poorest,” she said.

The other problem cited is that the funds really poor people borrow are usually diverted to purposes other than what they were meant for. The money is used to meet domestic needs like food, clothing, rent, and school fees with very little left over to invest in their small businesses. Then there is the question of insufficient loans, either because the borrower underestimated the money needed or simply that the lender declined to lend the amount requested. The intended project ends up failing, and the borrower has to turn to the little she had to repay for failed business.

Only 17 per cent were able to repay their loans from their business returns. The majority, 62 per cent of borrowers, repaid their loans under duress – repayment due to excessive peer pressure. Another 17 per cent had to sell their pre-existing assets, while four per cent had their property confiscated by their peers.

petrol protests

Protests all over Nigeria are against poverty. The new price of petrol gives a platform for the protest. Millions of Nigerians are managing to survive, in a situation easily blamed on the global economic crisis, but conveniently ignores the fact that poverty thrived in Nigeria when the global economy boomed.

With a minimum wage of N18, 000 (about $109) monthly, a Nigerian who spends all his salary on petrol will purchase about 124 litres of petrol. If he lives where it sells at N200 per litre, he can buy only 90 litres. Yet N18, 000 (N600 daily) is not enough for the Nigerian to generate his electricity needs, assuming that is all his monthly salary does. Maybe electricity is a luxury the poor should shun hence government refuses to provide it. Things are worse since millions of Nigerians are unemployed and there is no social security system. Those earning the minimum wage represent less than one per cent of the population.

Nigerians are too poor to bear additional burdens.

http://allafrica.com/stories/201201091388.html

ZIMBABWE’S INDIGENISATION PROGRAMME AND GLOBAL CAPITALISM

Right now Margaret “aka TINA’ Thatcher is well and still kicking - the then British Prime Minister the time Zimbabwe was granted independence from colonial regime in 1980. What if a Chilcot inquiry sort is staged between her and the Zimbabwe’s Zanu Pf regime headed by President Robert Mugabe on what precisely lies behind the facilitation of the 1979 Lancaster House peace accord grossly focusing on the “Land Question Boob’ that was shelved? Shelved, while the resolution agreed upon was to maintain a willing buyer, willing seller approach on land redistribution for the first 10 post-independence years! We demand this as we are tired of capitalism’s buying time hoax pen and paper agreements at the expense of the starving masses. Infact, it is quite important for politicians to stop fooling the world while taking their side of the coin be it Zanu PF or the MDC factions while grinning at Zimbabwe’s sob story being orchestrated by alarming poverty. Why was this not implemented as agreed after the specified duration? People of Zimbabwe are currently quite tired of suffering from bygones of the past events that benefited the minority who now has the economy at their hands.

For the past decade and so, we have seen a sea of Zimbabwean citizenry suffering and perishing from the imposed Anglo-Saxon sanctions while the political bickering remains a complete quest for self-aggrandisation at the expense of the workers and the majority populace. Despite this calamity, the global gods composing the US and Britain continues raising eyebrows by declaring that sanctions imposed do not affect ordinary Zimbabweans but few targeted individuals and companies. To our amazement, how can a targeted click with the economy at their hands feel the impact of the so called sanctions? Can capitalism succeed in restricting them to live indulgently? This total absurdity is simply a grave crime against humanity as the pinch of these inhuman sanctions is heavily impacted by only the poor peasantry and the workers! The period 2007 – 2008 really left indelible marks to surviving souls’ memories while the likes of the former BSAP employee now a business magnate Bla Fidza Chiyangwa roamed the CBD roads on posh cars proud to be possessing vast residential and industrial stands in the country’s capital city – preaching being an undisputable local fat cat. On the other hand, a wazzock female n’anga caught the watchful eye of the Western media propaganda by tempting the Mugabe regime’s hierarchical crew to believe that diesel was oozing from a rock in Chinhoyi which is part of the Mashonaland West Province. The event did not spare the carnage of fatty bulls to mark the orgy celebration of what was marked the manna from the ancestral spirit! In Shona language, a n’anga is a spirit medium. Diesel oozing from a rock, OPEC is this realistic! And momentarily, on another occurrence, the local popular musician, Alick Macheso has opted to splash huge sums of cash in a marriage spree and the nation wonders how all those women trust his health status. Three wives fit for the Chikopokopo genre who claims to be part of the local fat cats! However, thanks to the rival leaders who were forced by the status quo to reach a consensus to form a Government of National Unity from February 2009 up to now. That was a panacea to the economic crisis; the shortage of basic commodities… despite capitalism is ticking well in Zimbabwe.

As the time frame for the Government of National Unity has lapsed, it appears elections may take place anytime. As part of its campaign trait, the Mugabe regime has embarked on what it calls the last Chimurenga of the indigenisation of the country’s economy under the leadership of President Mugabe in which the sons of the soil are destined to own a 51% stake for them to take full control of the means of production in Zimbabwe’s economy as said. In Shona, Chimurenga means war and I wonder why they mark this sort of state control of the economy the last Chimurenga. In capitalism wars over the control of resources and economy quakes the planet willy-willy in the system’s quest for profit. For this reason, it boggles anybody’s mind on why this sort of economic reform is called the last chimurenga. To champion this the National Indigenisation and Economic Empowerment Board (NIEEB) has been established through the Indigenisation and Economic Empowerment Act (Chapter 14:33) of 2007 and commenced operation in 2010. The NIEEB’s sole mission is said to be focusing solely on implementing indigenisation and economic empowerment programmes through support of all economical sectors to ensure stability and security of the economic environment which according to the current Zimbabwe’s situation marred by the Anglo-Saxon imposed sanctions is difficult to induce. The appointed Board of Directors in Decembers 2009 includes 15 members including the Chief Executive Officer who would concurrently work with the Minister Kasukuwere on the government’s indigenization and economic empowerment strategies and to advise the ministry on appropriate measures for the implementation of the objectives of the Act. The indigenisation and economic empowerment programmes are said to have been designed to empower black Zimbabweans who were disadvantaged by unfair discrimination - on the grounds of his or her race or any descendant of such a person - prior to the country’s independence in April 1980. In praise of the so called Chimurenga, here is what the political scientist Professor Jonathan Moyo MP for Tsholothso who later re-joined Zanu Pf after going independent in 2008 March harmonized elections said:
“…As such, indigenization under the Last Chimurenga is not about empowering government structures under the State but about empowering the people of Zimbabwe the majority of whom are born-frees who shall be enabled to own majority equity across the national economy. This is for real and will be done technically, procedurally and legally to benefit the country’s youth whose time to be counted in revolutionary ways has come...” Sunday Mail, Mar 13-19, 2011

However, foreign owned companies murmur liquidation if this is implemented effectively and the Harare City Council has defied all the odds by awarding a tender to a South African Easihold company disregarding the so called national indigenization policy. Motorists are destined to fork out US$1/hour to park their vehicles in the bays of the city centre. USD1/hr while each day, 30 000 children dies as a result of extreme poverty; everyday while 50 000 people dies of hunger and preventable illnesses; yet 2, 8 billion people lives on less than US$1, 20 a day (2, 8 billion nearly half the world’s population); yet one in five survives in less than US65p per day…

Organisations like the Affirmative Action Group (AAG) and a youth empowerment group, Upfumi Kuvanhu are in immense opposition to the deal pointing out that it was done against the indigenisation law restricting local business people who have the rights to cherish the fruits gained from their hard fought independence. Here is what the Upfumi Kuvadiki spokesperson said:
“…The deal is not clearly explained. Why did they not look for a local company to manage the parking? We cannot sell our country because we lack the machines, it is not possible for us to sell our sovereignty to foreigners…”
But the Harare City Council Town Clerk, Dr Mahachi lashed out at this that the council has vowed the parking management deal is irreversible and was the best they could get in which the city gobbles 60% of the shares.
“..What we required when we signed the deal were the gadgets and the expertise and over a period of time all the shares and properties will belong to the city,” he said.

To resemble that capitalism doesn’t look back in sucking profits, Dr Mahachi simply said, “over a period of time.” And pathetically, the Easipark issued receipts bears a statement stating that all vehicles are parked at the parker’s risk and that the City of Harare, Easipark, their employees, agents & contractors are not liable for any loss or damage whether caused by their negligence or otherwise. What does this mean then? It’s downright ridiculous for motorists risking their pockets at $1/hr as well as their vehicles at the same time!

In a nut shell, all this ongoings in Zimbabwe and the world over is blatant state capitalism. Just as to the trafficking maverick Venezuelan President Hugo Chavez’s Nationalization cum Socialist Revolution of the 21st Century is the State Capitalism of the 20th Century all over again where government owns industry and workers remains being bossed in profit mongering. Truly services are not provided and commodities are not produced today to meet people’s needs. They are produced to make a profit and that is the cause of the problem we face. Under the profit system profits comes first, before providing basic services like health care, and transport, before improving conditions at work, and before protecting the environment. At the same time it encourages a get-rich-quick climate where competition to make money takes over from cooperation and community values. Everything is reduced to its cash value and people are judged, not for what they are but how much money they have. Having said this and taking note of how global imperialism championed by the Western jihad, continues dividing the people of Zimbabwe and the world over, the people of Zimbabwe should reconsider vying for a nonprofit production entity as an alternative to the current woes.

By B. Musemwa
A socialist residing in Zimbabwe and can be contacted via: msemwabm@yahoo.com

Class

The African Development Bank defines the African middle class as people who spend the equivalent of $2-$20 (£1.30-£13) a day. It acknowledged that many living on $2-$4 a day are "floating" and could easily slip back into poverty. Taking these people out of the equation, it put the "stable" middle class at 123 million, 13% of the population.

Yet economic growth does not necessarily mean shared growth: in some cases it means widening inequality, most vividly in South Africa.

There are now more than 100,000 Africans with at least $1m to invest. With an estimated fortune of $10.1bn (£6.5bn), the Nigerian cement tycoon Aliko Dangote is Africa's richest man and one of the continent's 16 billionaires. The South African diamond magnate Nicky Oppenheimer – who also owns the country's largest private game park, the Tswalu Kalahari reserve – comes second, with a $6.5bn fortune. Patrice Motsepe, a 40-year-old mining magnate, is South Africa's first and only black billionaire, with $2.5bn. Together, the combined wealth of Africa's 40 richest is $64.9bn – roughly twice the GDP of Kenya ($32bn) or Ghana ($31bn) in 2010.

http://www.guardian.co.uk/world/2011/dec/25/africas-middle-class-hope-continent

Nigerian poverty

Governor of Central Bank of Nigeria, Sanusi Lamido Sanusi has said 90 per cent of Nigeria live on less than $2 per day. 70 per cent are living on less than one dollar a day. Despite being a major oil producing nation, poverty, lack and deprivation reign supreme.

"...how come we have so many women dying in child birth, how come we have so many children that are out of school, how come life expectancy is down to 55 or 54. What has happened to us? We need to ask what have we done ?” Sanusi said.