The 2013 Resource Governance Index

The 2013 Resource Governance Index (published by the Revenue Watch Institute) is out. The top performing African countries include Ghana, Liberia?, Zambia and South Africa, with partial fulfillment. The bottom performing countries are Equatorial Guinea, Zimbabwe, South Sudan, the Democratic Republic of Congo and Mozambique.

The 58 nations included in the report “produce 85 percent of the world’s petroleum, 90 percent of diamonds and 80 percent of copper.” Ghana, where we are doing some evaluation  work on extractive sector transparency initiatives, is the best performing African country on the list. Image

More here. 

And in related news, The Africa Progress Report was released last week. The report details the massive loss of revenue by African governments through mismanagement – either by commission and/or omission – of extractive resources. For instance:

The report details five deals between 2010 and 2012, which cost the Democratic Republic of the Congo over US$1.3 billion in revenues through the undervaluation of assets and sale to foreign investors. This sum represents twice the annual health and education budgets of a country with one of the worst child mortality rates in the world and seven million pupils out of school.

The DRC alone is estimated to have 24 trillion dollars worth of untapped mineral resources.

The most bizarre case of resource management in Africa is Equatorial Guinea, a coutnry that is ranked 43rd on the global per capital GNI index but ranks 136th on the Human Development Index (2011).

Below is a map showing flows related to Africa’s vast resources:

RESOURCE-MAP

Meles Zenawi, Prime Minister of Ethiopia, is dead at 57

The BBC reports:

Ethiopian Prime Minister Meles Zenawi has died at the age of 57, state media say, after weeks of illness. A government spokesman said Mr Meles had died in a hospital abroad – but did not say exactly where or give details of his ailment. Speculation about his health mounted when he missed an African Union summit in Addis Ababa last month.

Mr. Zenawi is believed to have died in a Belgian hospital – the Saint-Luc University Hospital in Brussels (where he was allegedly receiving treatment for an acute case of hematologic cancer). The last time he was seen in public was on the 19th of June 2012 at the G20 summit in Mexico.

For now the leadership transition in Ethiopia, Sub-Saharan Africa’s second most populous country, appears to have gone smoothly. According to the BBC report, the deputy Premier - Hailemariam Desalegn – will take over.

Mr. Desalegn is from the south of Ethiopia, away from the political centre of gravity of the country, which for centuries has been to the north – in Tigray and Amhara dominated areas.  

It is not yet clear if the smooth transition will stick. As the Economist reported a couple of weeks ago:

“power [in Ethiopia] has still rested with a clutch of Mr Meles’s comrades from his home area of Tigray in northern Ethiopia, many of them once members of a Marxist-Leninist group that used to admire Albania’s long-serving Communist leader, the late Enver Hoxha. This hard core, including the army’s chief of staff, General Samora Younis, retains a “paranoid and secretive leadership style”, according to a former American ambassador to Ethiopia, David Shinn. Were Mr Meles to leave in a hurry, relations between the young modernisers and the powerful old guard might fray.”

Under Mr. Zenawi (May 1991- Aug. 2012) Ethiopia was a mixed bag. His rule was characterized by one of the worst human rights records in the world. But he also brought some semblance of stability following the misguided and murderous Marxist-Leninist dictatorship of the Derg under Mengistu Haile Mariam; and presided over an economy with one of the fastest growth rates on the Continent.

It is also under Meles Zenawi that Ethiopia invaded Somalia to rid it of the Islamic Courts Union (ICU) which was beginning to spread Somalia’s chaos into Ethiopia’s Ogaden region (it helped that the U.S. also wanted the ICU ousted from Mogadishu because of their alleged links of al-Qaeda).

A recent profile in the Atlantic summarizes it all:

“for every Muammar Qaddafi there’s a Meles Zenawi, the shrewd, technocratic Prime Minister of Ethiopia. Inside of the country, he’s known for imprisoning his political opponents, withholding development assistance from restive areas, stealing elections, and cracking down on civil society NGOs. In the rest of the world, he’s often praised for his impressive economic record, though not for his human rights. Zenawi has attracted Western support by being a responsible steward of aid money, a security partner in a rough region, and a G20 summit invitee.”

I remain cautiously optimistic that the Ethiopian ruling elite will pull through the rocky transition period. The next elections are due in 2015. In the current parliament the ruling party, the EPRDF, and its allies control nearly all of the 547 seats.

Beyond Ethiopia’s borders, the absence of Mr. Zenawi will certainly be felt in Somalia (which is presently struggling to get on its feet after decades of total anarchy and whose government partly depends on Ethiopian troops for security) and South Sudan (where Addis Ababa has been a broker in past conflicts between Khartoum and Juba). Ethiopia’s hostile relationship with Eritrea might also experience some change, most likely for the worse as whichever faction emerges victorious in Addis engages in sabre rattling in an attempt to prove their hold on power.

Reason for African Petro-Rulers to be Worried

Africa’s petrorulers (heads of state of Angola, Cameroon, Chad, Congo-Brazzaville, Equatorial Guinea, Gabon, Ghana, Nigeria, South Sudan, and Sudan) may be headed for tough times later this year. According to a piece by (Steve Levine) over at FP, Saudi Arabia – the world’s leading oil producer – is considering flooding the global oil markets with the aim of sticking it to the Russians and Iranians. Saudi action of this nature could lower prices to as low as US $40 a barrel from the current $83.27.

With the exception of Ghana and Cameroon, such a drop in oil prices would almost certainly lead to political unrest in the rest of Africa’s oil producers. Sudan and South Sudan are already facing huge revenue shortfalls due to a dispute over the sharing of oil revenue.

More on “The Coming Oil Crash” here.

South Sudan to relocate capital to Ramciel

The Sudan Tribute reports:

“The survey for the proposed new capital of South Sudan, Ramciel, is expected to be completed within the next six months, reports the official in charge of the project.

resolved to suspend any construction of new public buildings for the national government in Juba.

Juba was disqualified for a number of reasons including administrative stalemate over which level of government its jurisdiction should fall under.”

That is the official reason.

Source: Political Geography Now

I know very little about the deliberations that resulted in the move but another reason could be that Juba was too far from the new nation’s centre of (ethno) political gravity (see maps; click on image to enlarge). Relocations of capitals almost invariably have political considerations. One only hopes that the Bari community whose ancestral homeland is around Juba will not suddenly find themselves completely abandoned by the central government.

The government should ensure that Ramciel does not suddenly suck in all the money. It could prove beneficial to decouple the political and economic capitals of the country.

Source: Gulf 2000 Project

On the plus side this is a sign that the new government in Juba is willing to try out new things. A fresh start in Ramciel might not be such a bad idea.

A Ugandan journalist and a politician respond to Kony 2012

Angelo Izama, Ugandan journalist (and a good friend of yours truly) has a thoughtful op-ed piece in the Times. He makes the case that:

Campaigns like “Kony 2012” aspire to frame the debate about these criminals and inspire action to stop them. Instead, they simply conscript our outrage to advance a specific political agenda — in this case, increased military action.

African leaders, after all, are adept at pursuing their own agendas by using the resources that foreign players inject and the narratives that they prefer — whether the post-9/11 war on terror or the anti-Kony crusade. And these campaigns succeed by abducting our anger and holding it hostage. Often they replace the fanaticism of evil men with our own arrogance, and, worse, ignorance. Moreover, they blind us by focusing on the agents of evil and not their principals.

At the same time over at FP Nobert Mao, politician from northern Uganda and former presidential candidate, has the following to say:

It’s clear that the aim of the video [Kony 2012] was never intellectual stimulation. I don’t think the founders of Invisible Children are the foremost analysts of the complicated political, historical and security dynamics in our troubled part of Africa. They certainly wouldn’t earn high marks in African Studies. But I will go to my grave convinced that they have the most beautiful trait on earth — compassion.

Such sentiments matter, even today.  There are those who say the war is over in Northern Uganda. I say the guns are silent but the war is not over. The sky is overcast with an explosive mix of dubious oil deals, land grabs, arms proliferation, neglected ex-combatants, and a volatile neighborhood full of regimes determined to fish in troubled waters. What we have is a tentative peace. Our region is pregnant with the seeds of conflict. The military action in the jungles of Congo may capture Kony, but we need to do more to plant the seeds of peace founded on democracy, equitable development, and justice. Like peace, war too has its mothers, fathers, midwives, babysitters, and patrons. Perhaps Kony 2012 will help sort out the actors. The video has certainly shaken the fence, making fence-sitting very uncomfortable, indeed.

The two may disagree on the usefulness of tactics such as those that made the now famous video, but they certainly agree on the need to acknowledge agency of local actors in all these problems that require outside intervention.

My two cents on this is that there is definitely room for Africans to shape the narrative and tactics of advocacy in Western capitals (or elsewhere). Emotionally charged  mobilization tactics, like Kony 2012, are definitely a distraction from the real issues. But they also present an opportunity for African actors to leverage international attention and support against their own leaders who refuse to deal with problems that affect their daily lives. I am glad that in the case of Kony 2012 Ugandans have stepped in to provide perspective on the narrative and, hopefully, influence the eventual response by the relevant policymakers in DC.

Lest we forget…

There was a time when Somalia was different…

Democracy is also a deeply rooted Somali political principle which, I suspect, continues much as usual in the more remote parts of the nomadic interior. How long it will be before it reasserts itself in the central political life of the state remains to be seen.

We are still waiting.

For an account of the politics of the Siad Barre coup of 1969 check out Lewis (1972)

Tough trying to be good in a bad neighborhood

A few days ago a Kenyan judge ordered the government to arrest Sudanese President Omar al-Bashir if he ever sets foot in Kenya. Mr. Bashir has an outstanding arrest warrant against him from the ICC for crimes against humanity committed since 2003 in Darfur.

The ruling has since metastasized into a full blown diplomatic row; Khartoum expelled the Kenyan ambassador before rescinding the expulsion, and is now threatening to cut all trade ties with Kenya, expel Kenyans living in Sudan and deny any planes leaving or going to Kenya from flying in its airspace – if the government does not take back the ruling in two weeks.

The diplomatic row aside, the case has implications for the reform process in Kenya. The case is a test of the depth of the Kenyan judiciary’s new found independence from the executive.

According to Khartoum:

“al-Bashir expects Nairobi to scrap the arrest warrant within the next two weeks and not simply file an appeal.”

That is not how the judicial process works in a democracy. The executive cannot just scrap a judicial ruling. Within Kenya, for the sake of precedence the government must be seen to be complying with court rulings. The Chief Justice has already warned the executive against ignoring the court ruling saying that

“If a country chooses to live by anarchy, it must be ready to face the consequences of disregarding the law.”

It remains unclear what the executive will do given Khartoum’s two week ultimatum. Disregarding the court ruling will come with consequences for the individuals involved – in particular the Foreign Minister and the Commissioner of Police.

Kenyan Court Orders Bashir Arrest, Sudan Expels Kenyan Ambassador

UPDATE:

The BBC reports:

Sudan ordered the expulsion of the Kenyan ambassador after a Kenyan judge issued an arrest warrant for Sudan’s President Omar al-Bashir, Sudan’s foreign ministry has said.

Mr Bashir is wanted by the International Criminal Court (ICC) for alleged war crimes in Darfur.

Sudan has ordered the Kenyan ambassador to leave the country within 72 hours.

It has also ordered the Sudanese ambassador in Kenya to return to Khartoum.

*************************************************************

A Kenyan court has issued an arrest warrant for Sudan’s President Omar al-Bashir over alleged war crimes in Darfur.

The ruling came after Kenya allowed Mr Bashir to visit in August in defiance of an International Criminal Court (ICC) warrant for his arrest.

The judge said he should be arrested if he “ever set foot in Kenya” again, the AFP news agency reports.

Kenya is a signatory to the treaty which established the ICC in 2002.

The new Kenyan constitution requires that the government implements its international treaty obligations. The ruling, though without much bite – I doubt Bashir will need to be in Kenya any time soon, has immense symbolism in the region.

It also matters for Kenyan domestic politics. Presently, a few high ranking Kenyan politicians – including the Finance minister, two former ministers and former police boss – are on trial at the ICC for crimes against humanity. The accused await judgment on the admissibility of their cases later this year or early next. The Bashir ruling means that if the charges against the “Ocampo Six” are confirmed but the government drags its feet in implementing an arrest warrant then the courts will step in.

More on the Bashir case here and here.

In other news, Uganda and Tanzania have rejected Khartoum’s petition to join the East African Community, citing “several issues like their democracy, the way they treat women and their religious politics.” Yeah right.

More on Eritrea and armed groups in eastern Africa

While Eritrea has in the past been repeatedly accused of supporting Somalia’s Islamist militia Al Shabaab, a charge it strenuously denies, the current report catalogues Afewerki’s growing notoriety in the world of terrorism finance, and in particular the global web through which these funds are routed, with Kenya serving as a global transaction distribution hub.

The report details the country’s activities in funding the terror group, following the money trail from its citizens in the diaspora in Europe and North America, through Dubai and the Eritrean embassy in Nairobi, and into the hands of Al Shabaab, all the while concealed in convoluted and opaque informal financial networks.

That is The East African reporting on Eritrea’s support for armed groups in the wider eastern African region. Mr. Afewerki’s actions are a threat to regional security for the following reasons:

1. Eritrea’s (opportunistic and cynically instrumental) use of Islam as a galvanizing force (against “Christian” Ethiopia) threatens to ignite a wider regional conflict that would probably include North Sudan and Egypt. The reason this is likely is because:

       (a) Remember that the use of the waters of the Nile continues to be a source of friction between Egypt and the riparian states of eastern Africa. Egypt itself has in the past been linked to armed groups in Somalia opposed to Ethiopian rule of the Ogaden region. Both countries have a history of funding rival clan militias in Somalia. In all of this the principle of my enemies’ enemies’ are my friends will most likely apply.

        (b) Because of its own problems with South Sudan, North Sudan might have an interest in using Eritrea’s networks to destabilize its southern neighbor. Recently the government of South Sudan banned all people of Somali origin from entering the country by land for security reasons. Juba clearly suspects either direct or indirect links between Khartoum and the myriad armed groups in war-torn Somalia

2. Given that the groups it supports (e.g. al-Shabaab) have other enemies besides Ethiopia, President Afewerki has effectively declared war on countries like Uganda, Burundi, South Sudan and Kenya that have also either been attacked or threatened by al-Shabaab. I wouldn’t be surprised if one or two of these EAC states decided to materially support the Ethiopian side the next time Addis and Asmara fight over their barren disputed border lands.

Quick hits

Guide to arguing on the internet (HT Lauren).

Speaking of arguing on the internet, I like the drama that is spats between economists and other academics on their respective blogs.

The Economist presents the faces of famine in the Horn. It is beyond sad that so many people should be condemned to suffer this man-made tragedy.

Brett Keller has posts here and here on Sam Childers (a.k.a. machine gun preacher), a gun-runner into the habit of doing morally and ethnically dubious things in the name of God. Keller says that Childers is “stockpiling arms at his orphanage and has admitted to selling weapons to unnamed armed factions in Sudan, Uganda, and Rwanda.”

In Zambia (where I shall be for the elections in Sept.) the politics of citizenship and belonging are yet to be settled 50 years after independence. We recently witnessed the dangers of de-legitimizing whole sections of countries as outsiders in Cote d’Ivoire. I hope that if Sata ever wins he will not do what incumbent Ivorians did to ignite a rebellion in the northern reaches of their country. For more on this check out this great book on the Ivorian collapse. I have read it and absolutely loved it.

A muddy few months ahead for the South African government. Infighting with the ANC top brass might mean an early exit for President Zuma. With over 60% of the votes in the last election, the ANC is essentially an oversize coalition prone to internal wrangles. It will be interesting to see how Zuma weathers the storm in the midst of challenges from both COSATU and Malema.

Lastly, the current issue of the Journal of African Economies looks at the impact of higher education in Africa. The main takeaway is that the low quality of education at lower levels (primary and secondary) has meant that the biggest bang for the buck on the Continent, as far as education is concerned, only comes with higher education. Too bad that many of those that get higher education are underpaid or out of the Continent all together.