If we are to achieve some success as a continent, then we must achieve financial independence. The IMF and World Bank, and lately China, will not help us.
The IMF and World Bank were formed just after the second world war. There aim was simple. To reconstruct Europe and avoid Europe falling into the hands of the Soviet Union. To this end, Europe was lent 15 billion dollars( 100 billion dollars in today's value). To this day, the chief of the IMF is chosen from Europe, while the World Bank President is American.
When the IMF and World Bank extend a loan to us, it comes with conditions, which most Africans are not aware of. For instance, during the 1990s, the IMF and World Bank required that African countries lay off public servants like teachers and doctors. This as they termed, was to reduce the wage bill, which they claimed was stifling African economies. This had dire consequences. There were not enough doctors and nurses in our hospitals. Patients were dying. Pupils were not being taught. The illeteracy rates were going up instead of down. As any economist will tell you, economic growth rate of a country has a direct proportion with the literacy rates.
What's more, African governments were asked to privatise key sectors like energy and mining, leading to wealth concentration in a few hands. This was a bleeding ground for corruption of well connected government officials.
What we need is to self finance mega projects. We need a road highway from Cape to Cairo. We need the River Congo to power the whole of Africa with electricity. We can only do this if we self finance, not rely on the World Bank and IMF.
No comments:
Post a Comment