The Politics of the CFA Franc Zone

This is from the Economist:

Where some see an anchor, others see a millstone. To maintain the euro peg, notes Ndongo Samba Sylla, a Senegalese economist, these very poor countries must track the hawkish monetary policy of the European Central Bank. Since the introduction of the euro, income per person in the franc zone has grown at 1.4% a year, compared with 2.5% in all of sub-Saharan Africa.

More on this here.

People like Cameroonian president Paul Biya love the CFA. With good reason.

Yet elites do rather well out of the system, which makes it easier to send wealth abroad. And a weaker currency would increase the cost of imported goods. The only devaluation, in 1994, sparked riots.

The disappearing Lake Chad, 1963-2001

 

I have been looking at the African Development Bank’s long term strategy (available here) and one of the figures that caught my eye was the extent to which Lake Chad has shrunk over the last 50 years. Wow.

Image

There is no way around the basics: Development will take time

I just read Chris Blattman’s response to the UK Prime Minister’s op-ed in the Journal. It reminded me of a lot of the things that I have been reading lately in preparation for my fieldwork (My dissertation will tackle the subject of legislative (under)development in Africa, with a focus on the Kenyan and Zambian legislatures).

Cameron’s sentiments in the op-ed are emblematic of the problems of development assistance. Like in all kinds of foreign intervention, developed states often try to externalize their institutions (and more generally, ways of doing things). These attempts often ignore the lived realities of the countries being assisted.

Forgetting the history of his own country (think autocratic monarchs, monopolies, limited suffrage), Cameron thinks that democracy, human rights and free markets (all great things) will magically create jobs in the developing states of the world. They don’t. In fact, they often lag the job creation process. For development assistance to be effective it must eschew these feel-good approaches to the problem of underdevelopment.

Blattman is spot on on a number of points:

  1. Unchecked leaders are bad for economic development (this is why I am so much into PARLIAMENTS!!!): Also, democracy is NOT synonymous with limited government. Heads of state like Queen Victoria or Hu Jintao or Bismarck or even Seretse Khama were in no measure democrats. However, they ruled under systems with strong (sometimes extra-constitutional) checks to their power. That made a difference.
  2. Institutions rule, yes, but the right kinds of institutions: 1688 moments do not drop out of the sky. They are often preceded by decades if not centuries of civil strife, economic change and plain old learning. Institutional development takes time. Plus each society requires its own unique and appropriate mix of institutional arrangements to meet unique economic and social needs. A procrustean approach to institutional development (embodied in global capacity building) will inevitably fail. Institutional development must never be allowed to be captured by those who think that we can transform Chad simply by having them adopt Swedish institutions.
  3. Growth will require creation of jobs, i.e. industrial development: The poor countries of the world need real jobs for high school-leavers and other less educated people. The present focus on the “sexy” entrepreneurial sectors – whether they are small businesses for the poor or tech hubs for the very highly educated – as the engines for growth in the developing world is misguided. I reiterate, starting a business is a very risky venture that should be left to the wealthy and the occasional dare devil. The poor in the global south need stable 9-5 jobs. Lots of them.

And lastly, where do strong institutions come from? There is no easy answer to this question. What we know is:

  1. History matters: Present countries with a long history of stateness have a better track record of building strong institutions for development. Yes, they may not always be democratic, but countries with a long history of centralized rule have strong states (and institutions) that deliver for their people (for more on this see Englebert and Gennaioli and Rainer).
  2. Democracy does not always create strong institutions: Since 1945 many have chosen to forget the fact that universal suffrage is a pretty recent phenomenon in the political history of the world. For the longest time world polities were ruled by power barons who held de facto power (as opposed to the procedural de jure power in democracies). When democracy came along after the Enlightenment the resulting structures of rule often reflected these de facto configurations of power. Over time institutions in these countries were cemented enough to allow for complete outsiders like say the current president of the United States to be elected without upsetting the balance of power (in another era he would have had to have mounted a coup). This is the challenge of the democratization in the new post-WWII states. How do you make democracy serve the interests of the people, rather that purely that of the elite? How do you use democracy to create strong institutions? Is this even possible? And if not, what other options do we have?

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.

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.

Guinea’s Alpha Conde attacked

President Alpha Conde, Guinea’s first elected president since independence, appears to have survived a coup attempt in the early hours of Tuesday. Mr. Conde’s residence was hit by rocket fire in what appears to have been a coup attempt.

The latest turn of events makes one wonder if Paul Collier’s rather crazy unorthodox proposals might be worth a shot. [Collier, among other recommendations, proposes an international guarantee of sorts that democratically-elected governments that remain true to proper governance will be protected from the army and other armed thugs that might want to overthrow them.]

I believe that local horse-trading should always be given a chance before the internationals fly in to impose agreements on feuding factions. But when local factions have fought each other to a stalemate – as is the case in Chad, Central African Republic, Guinea, Guinea-Bissau and Somalia – it might be time for the international community to provide a helping hand. Millions of civilians should not be left to suffer simply because a few men cannot strike a stable deal. The interventions will be nuanced and complicated and messy – so I can’t spell out the terms here – but simply sitting back and watching is not an option.

Simply stated, the men with guns in Guinea are irresponsible.

Guinea is also a budding narco-state. I would not be surprised if the latest attack on the president is linked to the emerging drug problem in west Africa. It is common knowledge that the son of the immediate former president of Guinea, Ousmane Conte, has/had ties with the drug trade. President Joao Vieira of Guinea-Bissau and the country’s top military officer were killed in 2009 in what was rumored to be a drug-related feud.

Mr. Conde was elected in a run off with 52% of the vote. Two years earlier in 2008 the army carried out a coup following the death of the country’s second president, the late Lansana Conte. Mr. Conte himself came to power in a coup following the death of Guinea’s firebrand founding president Sekou Toure. Many hailed the generals’ decision to return to the barracks in 2010 as a new turn in Guinean politics. They were wrong.

The BBC reports that a former army chief, Nouhou Thiam, has been arrested in relation to the Tuesday morning attack.

Rants and Raves / Thoughts on the African Union

The African Union (AU) has had a rough few months. The diplomatic failures in Zimbabwe, Cote d’Ivoire, and Madagascar exposed the organization’s incompetence. The misguided anti-ICC crusade continues to cement the image of the organization as nothing more than a club of out-of-date and tone deaf autocrats. To many observers, calls for “African  Solutions to African Problems” amid all this failure has been seen as a cover of impunity and mediocre leadership on the African continent.

It says a lot that the current chairman of AU is President Theodore Obiang’ of Equatorial Guinea; a man who leads an oil-rich country of under 0.7 million people, with a per capita income of more than 30,000; but with more than 70% of its population living on less than $2 a day.

The epitome of the organization’s woes was the total snub it got from NATO before the military campaign against Libya’s Gaddafi, one of the AU’s main patrons. The AU was created by the Sirte Declaration, in Libya. Mr. Gaddafi’s influence ranged from his “African Kings” caucus (in which he was the King of Kings) to investments from Libya’s Sovereign wealth fund. I bet Gaddafi had a hand in the organization’s green flag.

So what ails the African Union?

The AU’s problems are legion. In my view, the following are some of the key ones.

  1. Lack of a regional hegemon(s): The AU faces massive collective action problems. With no regional hegemon(s) to act as the rudder of the organization, most of the organization’s resolutions are not worth the paper they get written on. The rotating chairmanship is a distraction from the real leadership needed in the organization. For instance, I had to google it to find out who’s currently in charge of the presidency of the EU (Poland). Everybody knows that France and Germany run the EU. Their word has gravitas in the Union. In the AU on the other hand, there is no leader. Could it be Navel-gaving South Africa or serially under-performing Nigeria?
  2. Too much political control: Most successful international organizations, despite having political principals, tend to have technical agents that are to some extent shielded from the principals. The AU is political through and through. The key decision-making body is the assembly of heads of state. The council of ministers does nothing. And the commission is all bark and no bite. Cronies of dictators staff most of the key positions in the organization.
  3. Disconnect from the masses: Most Africans have no idea what exactly the AU does. What is the point of the organization? Is it to preserve Africa’s borders? Is it to defend the likes of Gaddafi when the ICC’s Mr. Ocampo comes calling? Giving the people a voice in the Union might force the organization to do the people’s bidding, instead of being a protector of impunity in the name of African sovereignty.

What would reforming the AU entail?

  1. Radical restructuring: Like all inter-state organizations, the AU’s leadership should reflect regional power differences. The current assembly – in which Chad has the same power as Nigeria – makes no sense. There should be a smaller assembly of sub-regional representatives (West – Nigeria; East-Ethiopia; North – Egypt; and South-South Africa) with veto power and the mandate to implement the organization’s resolutions.
  2. Competent staffing: The practice of presidents appointing their sisters-in-law as AU representatives should go. An injection of competent expertise into the organization would go a long way in making it appear to be a more politically independent, competent and respectable organization.
  3. Direct elections to the AU parliament or no parliament at all: Instead of having the members’ parliaments elect representatives to the AU parliament, there should be direct elections. If that cannot happen then the parliament should be scrapped all together. A toothless and unrepresentative parliament is a waste of resources.
  4. Constructive and focused engagement with the rest of the world: Who is the AU chief foreign policy person? Are there permanent representatives in Beijing, Brussels, Brasilia, New Delhi and Washington? Why aren’t they trying to initiate a collective bargaining approach when dealing with these global powers (even if it is at the sub-regional level)? And what with the siege mentality? Not every condemnation of African leaders’ incompetence and mediocrity is a neo-colonial conspiracy, you know. For instance, instead of whining against the ICC’s Africa bias, the AU should clean up its own house. It doesn’t matter that George Bush is not being tried for crimes against Iraqis. The last time I checked none of the leaders of Switzerland was being tried for crimes committed in the German cantons.
  5. A more consistent commitment to progressive ideals: The AU is the only organization in the world that includes in its charter the provision to intervene in its member countries under the principle of responsibility to protect. If the AU were slightly more serious, the disasters in Zimbabwe, Cote Ivoire and Madagascar could have been nipped in the bud. As things stand it is only tiny Botswana that keeps shouting about the organization’s commitment to proper governance and responsibility to protect.

I am not a fan of the idea of the United States of Africa. That said, I believe that a regional organization like the AU can be a force for good. But in order for it to fulfill its purpose, it has to change. The change must reflect the regional power balance; it must increase the competence quotient in the AU and it must increase the voice of the average African within the organization.

the political economy of violence

The Economist reports:

YESTERDAY it was Afghanistan and Congo. Today it is Côte d’Ivoire and Libya. Violence, it seems, is always with us, like poverty. And that might seem all there is to be said: violence is bad, it is worse in poor countries and it makes them poorer.

But this year’s World Development Report, the flagship publication of the World Bank, suggests there is a lot more to say. Violence, the authors argue, is not just one cause of poverty among many: it is becoming the primary cause. Countries that are prey to violence are often trapped in it. Those that are not are escaping poverty. This has profound implications both for poor countries trying to pull themselves together and for rich ones trying to help.

Many think that development is mainly hampered by what is known as a “poverty trap”. Farmers do not buy fertiliser even though they know it will produce a better harvest. If there is no road, they reason, their bumper crop will just rot in the field. The way out of such a trap is to build a road. And if poor countries cannot build it themselves, rich donors should step in.

Yet the World Development Report suggests that the main constraint on development these days may not be a poverty trap but a violence trap. Peaceful countries are managing to escape poverty—which is becoming concentrated in countries riven by civil war, ethnic conflict and organised crime. Violence and bad government prevent them from escaping the trap.

Interesting piece. It is particularly important to note that violence affects everyone’s investment decisions, whether rich or poor.

The thing about poor places is that everyone is poor, elite or not.

No matter that Theodore Obiang’s son is buying the second most expensive boat in the world. If he has to hop on a plane to LA to have fun – instead of say, creating Africa’s Dubai in oil-rich Equatorial Guinea – he and his father remain tin pot dictators. The same applies for Idris Deby of Chad, Biya of Cameroon and many others. These dictators may have property abroad but the fact that they cannot accumulate property at home because of structural insecurity of their property rights (a coup is always a crazy junior officer away) continues to confine their countries to penury.

What do you do when even the dictator does not have stable property rights? How can you develop when no one is secure enough to invest in factories?

Sudan’s president bashir charged with genocide, icc issues new arrest warrant

President Omar al-Bashir just won’t shake the ICC off. The strongman of Khartoum already has an arrest warrant with his name on it for war crimes and crimes against humanity. To this the international criminal court has added three counts of genocide, the most serious charge in international law. It is interesting to see how friends of Khartoum, and African states in particular, will react to this new charge. The African Union chose to back Bashir the last time the ICC called for his arrest. Many African leaders have slighted the court for its disproportionate focus on African conflicts and human rights abuses.

Since 2003 Mr. Bashir has been waging a war against insurgents (led by the Chad-backed Justice and Equality Movement, JEM ) in the Darfur region in the west of the country. More than 200,000 people have been killed and millions displaced from their homes as a result.

failed states index

Foreign Policy, in its July/August issue has 2010’s failed states index. The Continent has 12 of the top 20 worst performers on this index, with Somalia, Chad, Sudan, Zimbabwe and the DRC being in the top five respectively. Kenya is 13th on this index, performing worse than Niger, Guinea-Bissau and Sierra Leone, among other basket cases. The substantive meaning of the rankings aside (I’d rather be in Kenya than in Sierra Leone on any day), the index is a grim reminder of how badly governed the Continent is. The best ranked mainland African state is Ghana, at number 54. Mauritius leads the Continent at number 30, out of 177.

Also in the FP issue is an exposé of Bozize’s Central African Republic. I used to think that he was doing a relatively good job. Turns out he is full of bucket-loads of horse manure:

“Bozizé has fared no better than his predecessors, ruling a territory the size of Texas with a GDP significantly smaller than that of Pine Bluff, Arkansas.”

And don’t miss out on Ayittey’s ranking of the world’s worst dictators. Our good friend Rob is second only to the crazy guy who runs North Korea.

Lastly, I must say something about my favorite punching bag Idriss Deby’s Chad. Idriss Deby is a study in ineffectual leadership and is on the list of Africa’s many ‘wasted dictatorships.’ In 2006 he successfully conned his way out of the World Bank brokered plan to use revenue from the Chad-Cameroon pipeline to reduce poverty among his country’s extremely impoverished 10.3 million souls. He now uses most of Chad’s oil revenue to fund his poorly-run security forces that remain vulnerable to any rebel group that can land its hands on a technical. But with over 1.5 billion barrels in reserves and a world thirsty for oil, it appears that this Zaghawa “warrior” is here to stay, his incompetence notwithstanding.

The HDI numbers tell it all. The literacy rate in Chad is at a dismal 25%. Life expectancy stands at 48 years. 80% of Chadian’s live on less than a dollar a day. The growth rate of the economy, -1% last year, -0.2% in 2008 and 0.6% in 2007, cannot keep up with the population growth rate of more than 2% (despite a rather high infant mortality rate of 97 deaths/1000 live births) – which means that Chadians’ living standards will continue to decline into the foreseeable future.  The bulk of Chadians (more than 80%) make do with subsistence agriculture. Oil, cotton, cattle and gum arabic are the country’s main export commodities.

sources: FP and The CIA World Factbook

comparative child mortality stats, and other news

The Continent still lags the rest of the world in the effort to reduce child mortality. Malaria and GI related illnesses (due to unclean water and what not) are still the number one killers of children in Africa.

For more on the child mortality stats see Aidwatch.

In other news, IRIN reports that “Humanitarian officials will look to the Chad government to protect civilians and secure aid operations after the UN Security Council decided on 25 May to withdraw some 3,000 UN peacekeepers from the country’s volatile east.” Yeah right. The rather incompetent and grossly corrupt President Idris Deby of Chad has so far failed in his quest to eliminate the Union of Forces for Resistance (UFR) based in the East of the country and in Darfur, Sudan. In 2008 the rebels managed to stage a massive offensive in the Capital N’Djamena. Mr. Deby barely managed to repel them, possibly with French assistance. Government incapacity in Deby’s Chad, Francois Bozize’s Central African Republic and Joseph Kabila’s Democratic Republic of Congo continues to provide safe havens for rebel groups in the great lakes region. I am beginning to think that allowing countries with extra-territorial ambitions like Rwanda and Uganda to run AU-controlled mandates in segments of such countries might not be such a crazy idea.

chadian ban on charcoal ludicrous

charcoal1

On January 16th the government of Chad banned the use of charcoal in the country – without providing any sensible alternatives. Worried about desertification in the arid Central African state, the government announced that it was banning all charcoal making from freshly cut trees. Chadians can still make charcoal from dead wood.

While I appreciate the need to stop the southward spread of the Sahara, I think the government went too far on this one. It is ridiculous that the governmnet of Chad (of all countries) can suddenly wake up and decide that it is time to stop using charcoal fuel and switch to propane – or whatever other alternative for that matter. Banning charcoal use will not stem desertification. Planting trees, having a decent irrigation plan and being serious about population control and smart ways of using scarce water resources will. Merely banning people from using charcoal or firewood will not cut it. The truth of the matter is that the vast majority of Africans still depend on woodfuel for their daily energy needs. Switching to more environment-friendly fuel sources will take time.

I know that the Chadians and the other countries in the Sahel are especially on heightened alert with regard to desertification but this was surely not the way to go. How many Chadians can afford propane? How many Chadians have gas burners? How many Chadians have viable alternatives to charcoal? These are the questions the men in N’djamena should have asked before unilaterally banning the use of charcoal in the country.

chadian government may fall soon

Idriss Deby, the president of Chad, is in deep trouble. Rebel forces are reported to have entered the capital, Ndjamena, and are marching to the presidential palace “surprisingly easily.” The rebels have been waging a war against the government of Mr. Idriss Deby for some years now and this time they managed to march into the capital and seem to be ready to topple the government.

Many had expected that the French army was going to step in to help Mr. Deby but it seems like the French are taking a wait-and-see position on this one. Mr. Deby accuses the government of Sudan of supporting the Chadian rebels. Sudan on the other hand accuses Chad of sponsoring the Darfuri rebels that have given Khartoum very bad press since 2000.

The African Union has condemned the attempted violent seizure of power but done nothing else. As the rebels marched towards the capital no country within the organisation offered any kind of support for Mr. Deby.

It is a bit surprising and disturbing at the same time that the government of Chad is being toppled so easily by a rebel movement. The march to the capital was well known and documented by the international media yet the government seemed to lack the capacity to take the fight to the rebels in the North East before they reached the capital. May be the government ought to be removed – because it has proven to be weak and unable to protect its people against these marauding desert rebels.

It is unclear what the rebels intend to do once they seize power. The success rate of such movements in forming governments is very low. Only Museveni, Kagame, Kabila, Zenawi and Charles Taylor have ever pulled this off before. All the other coups on the continent have been carried out by disgruntled government soldiers.

Meanwhile, as the men fight it out for power in this hot and dusty country, hundreds of thousands of people face crises on both sides of the Sudan-Chad border. The refugee camps are crowded, disease infested and unsafe. Aid workers have scaled down most of their operations due to the security situation leaving thousands without much hope for a better life.