Category Archives: Angola

Negative Human Development in Resource States

From The Looting Machine: Warlords, Oligarchs, Corporations, Smugglers, and the Theft of Africa’s Wealth, by Tom Burgis (PublicAffairs, 2016), Kindle pp. 211-212:

In 1970, the year the Olympic movement expelled South Africa, the government passed legislation formally stripping blacks of their citizenship and restricting them to destitute “homelands,” and the authorities appointed a barbaric new commanding officer at Robben Island prison to watch over Mandela and his fellow inmates, South Africa produced some 62 percent of the gold mined worldwide. From the early 1970s to 1993 gold, diamonds, and other minerals accounted for between half and two-thirds of South Africa’s exports annually.

South Africa’s gold and diamonds provided the financial means for apartheid to exist. In that sense white rule was an extreme manifestation of the resource state: the harnessing of a national endowment of mineral wealth to ensure the power and prosperity of the few while the rest are cast into penury and impotence. None of Africa’s resource states today come close to the level of orchestrated subjugation of the majority that the apartheid regime achieved. Neither do they employ apartheid’s racial creed, even if ethnicity has combined poisonously with the struggle to capture resource rent in Nigeria, Angola, Guinea, and elsewhere. But as their rulers, in concert with the multinational corporations of the resource industry, horde the fruits of their nations’ oil and minerals, Africa’s resource states have come to bear a troubling resemblance to the divisions of apartheid.

While the children of eastern Congo, northern Nigeria, Guinea, and Niger waste away, the beneficiaries of the looting machine grow fat. Amartya Sen, the Nobel Prize–winning Indian economist who has examined with great insight why mass starvation occurs, writes, “The sense of distance between the ruler and the ruled—between ‘us’ and ‘them’—is a crucial feature of famines.” That same reasoning could be applied to the provision of other basic needs, including clean water and schooling. And rarely is the distance Sen describes as wide as in Africa’s resource states.

Many of Africa’s resource states experienced very high rates of economic growth during the commodity boom of the past decade. The usual measure of average incomes—GDP per head—has risen. But on closer examination such is the concentration of wealth in the hands of the ruling class that that growth has predominantly benefited those who were already rich and powerful, rendering the increase in GDP per head misleading. A more revealing picture comes from a different calculation. Each year the United Nations ranks all the countries for which it can gather sufficient data (186 in 2012) by their level of human development, things like rates of infant mortality and years of schooling. It also ranks them by GDP per head. If you subtract a country’s rank on the human development index from its rank on the GDP per head index, you get an indication of the extent to which economic growth is actually bettering the lot of the average person in that country. In countries that score zero—as Congo, Rwanda, Russia, and Portugal did in 2012—living standards are roughly where you might expect them to be, given that country’s GDP per head. People in countries with positive scores enjoy disproportionately pleasant living conditions relative to income—Cuba, Georgia, and Samoa top the table with scores of 44, 37, and 28, respectively. A negative score indicates a failure to turn national income into longer lives, better health, and more years of education for the population at large. Of the ten countries that come out worst, five are African resource states: Angola (–35), Gabon (–40), South Africa (–42), Botswana (–55), and Equatorial Guinea.

Equatorial Guinea’s score (–97), comfortably the worst in the world, is all the more remarkable because its GDP per head is close to $30,000 a year, not far below the level of Spain or New Zealand and seventy times that of Congo.

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Filed under Africa, Angola, Congo, democracy, economics, energy, Equatorial Guinea, industry, labor, nationalism, Nigeria, South Africa

Africa’s Resource Curse

From The Looting Machine: Warlords, Oligarchs, Corporations, Smugglers, and the Theft of Africa’s Wealth, by Tom Burgis (PublicAffairs, 2016), Kindle pp. 4-6:

The sheer number of people living in what are some of the planet’s richest states, as measured by natural resources, is staggering. According to the World Bank, the proportion of the population in extreme poverty, calculated as those living on $1.25 a day and adjusted for what that wretched sum will buy in each country, is 68 percent in Nigeria and 43 percent in Angola, respectively Africa’s first and second biggest oil and gas producers. In Zambia and Congo, whose shared border bisects Africa’s copper-belt, the extreme poverty rate is 75 percent and 88 percent, respectively. By way of comparison, 33 percent of Indians live in extreme poverty, 12 percent of Chinese, 0.7 percent of Mexicans, and 0.1 percent of Poles.

The phenomenon that economists call the “resource curse” does not, of course, offer a universal explanation for the existence of war or hunger, in Africa or anywhere else: corruption and ethnic violence have also befallen African countries where the resource industries are a relatively insignificant part of the economy, such as Kenya. Nor is every resource-rich country doomed: just look at Norway. But more often than not, some unpleasant things happen in countries where the extractive industries, as the oil and mining businesses are known, dominate the economy. The rest of the economy becomes distorted, as dollars pour in to buy resources. The revenue that governments receive from their nations’ resources is unearned: states simply license foreign companies to pump crude or dig up ores. This kind of income is called “economic rent” and does not make for good management. It creates a pot of money at the disposal of those who control the state. At extreme levels the contract between rulers and the ruled breaks down because the ruling class does not need to tax the people to fund the government—so it has no need of their consent.

Unbeholden to the people, a resource-fueled regime tends to spend the national income on things that benefit its own interests: education spending falls as military budgets swell. The resource industry is hardwired for corruption. Kleptocracy, or government by theft, thrives. Once in power, there is little incentive to depart. An economy based on a central pot of resource revenue is a recipe for “big man” politics. The world’s four longest-serving rulers—Teodoro Obiang Nguema of Equatorial Guinea, José Eduardo dos Santos of Angola, Robert Mugabe of Zimbabwe, and Paul Biya of Cameroon—each preside over an African state rich in oil or minerals. Between them they have ruled for 136 years.

From Russia’s oil-fired oligarchs to the conquistadores who plundered Latin America’s silver and gold centuries ago, resource rents concentrate wealth and power in the hands of the few. They engender what Said Djinnit, an Algerian politician who, as the UN’s top official in west Africa, has served as a mediator in a succession of coups, calls “a struggle for survival at the highest level.” Survival means capturing that pot of rent. Often it means others must die.

The resource curse is not unique to Africa, but it is at its most virulent on the continent that is at once the world’s poorest and, arguably, its richest.

Africa accounts for 13 percent of the world’s population and just 2 percent of its cumulative gross domestic product, but it is the repository of 15 percent of the planet’s crude oil reserves, 40 percent of its gold, and 80 percent of its platinum—and that is probably an underestimate, given that the continent has been less thoroughly prospected than others. The richest diamond mines are in Africa, as are significant deposits of uranium, copper, iron ore, bauxite (the ore used to make aluminum), and practically every other fruit of volcanic geology. By one calculation Africa holds about a third of the world’s hydrocarbon and mineral resources.

Outsiders often think of Africa as a great drain of philanthropy, a continent that guzzles aid to no avail and contributes little to the global economy in return. But look more closely at the resource industry, and the relationship between Africa and the rest of the world looks rather different. In 2010 fuel and mineral exports from Africa were worth $333 billion, more than seven times the value of the aid that went in the opposite direction (and that is before you factor in the vast sums spirited out of the continent through corruption and tax fiddles). Yet the disparity between life in the places where those resources are found and the places where they are consumed gives an indication of where the benefits of the oil and mining trade accrue—and why most Africans still barely scrape by. For every woman who dies in childbirth in France, a hundred die in the desert nation of Niger, a prime source of the uranium that fuels France’s nuclear-powered economy. The average Finn or South Korean can expect to live to eighty, nurtured by economies among whose most valuable companies are, respectively, Nokia and Samsung, the world’s top two mobile phone manufacturers. By contrast, if you happen to be born in the Democratic Republic of Congo, home to some of the planet’s richest deposits of the minerals that are crucial to the manufacture of mobile phone batteries, you’ll be lucky to make it past fifty.

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Filed under Africa, democracy, migration, labor, education, economics, industry, energy, Zimbabwe, Cameroon, Congo, Angola, Equatorial Guinea

Katanga Surrenders, 1963

From Katanga 1960-63: Mercenaries, Spies and the African Nation that Waged War on the World, by Christopher Othen (History Press, 2015), Kindle Loc. ~4646:

On 21 January, Tshombe signed an official declaration that the secession had ended. Along with Munongo, Yav, Muke, Kimba and Kibwe, he dined with UN officials in Kolwezi.

‘Atmosphere friendly’, a UN man telegraphed to Léopoldville, ‘but throughout our conversation we felt Tshombe and Cabinet are extremely REPEAT extremely bitter about Europeans in general, Belgians in particular.’

Munongo publically renounced any further resistance or guerrilla warfare. Tshombe announced that he was prepared to work with Léopoldville to solve the Congo crisis. On Tuesday, Joseph Ileo arrived in Elisabethville to take over the province for the central government and Tshombe returned to the presidential palace to await his fate. UN and Congolese flags flew over Katangese towns.

Since 1960, the UN had lost 135 men in the Congo, including fourteen Irish soldiers (nine of those killed by Baluba at Niemba), thirty-nine Indian, nineteen Swedish and forty-seven Ghanaian soldiers. Only around half the total died at the hands of the Katangese. Baluba, the Léopoldville ANC and Gizenga’s men killed the rest. On the other side, perhaps only thirty-two mercenaries were killed in action during the secession. No one counted dead gendarmes, but they must have been in the low thousands. Civilian deaths on all sides amounted to at least 10,000 and were probably much higher.

In Léopoldville’s boulevard Albert, 600 students chanted ‘Tshombe to the gallows!’ Others stormed the British embassy as Congolese police sat in their jeeps and laughed. Léopoldville agreed an amnesty for Tshombe and his men. The UN soon discovered that the gendarmes were only prepared to surrender if no ANC men were in the area. Kasa-Vubu gave a speech:

Officers, non-commissioned officers and men of the former Katangese Gendarmerie, in addressing myself particularly to you this evening, I do so on behalf of the entire country, the entire nation, to congratulate you and pay you a tribute for your patriotism because it was thanks to your understanding and to your refusal to use the murderous weapons placed in your hands by foreigners that the secession was ended, without too great a loss of human life or shedding of blood.

On 25 January, the last of the Katangese armed forces crossed the border into Portuguese Angola. They would return, but to fight for a different cause and against a different enemy. Katanga had failed as a country.

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Congo War Realignments, 1998

From Dancing in the Glory of Monsters: The Collapse of the Congo and the Great War of Africa, by Jason Stearns (Public Affairs, 2011), Kindle Loc. 3298-3323:

With a mutiny festering in the slums of Kinshasa, and rebels advancing rapidly from the west, Kabila knew that he would not be able to hold out without the support of the region. A regional summit of the South African Development Community was quickly called, and Rwanda, Uganda, Congo, Angola, and Zimbabwe glowered at each other across a table without coming to a conclusion.

It was a decisive moment in the war. In 1996, almost the whole region had jumped on the bandwagon against Mobutu, while world powers looked the other way. It had been a continental war, inspired by security interests but also by ideology. In 1998, the odds were stacked differently. The region split down the middle, with Rwanda, Uganda, and Burundi on one side and Angola, Namibia, Chad, and Zimbabwe on the other.

This time, the motives for deployed troops were less noble. Zimbabwe’s president, Robert Mugabe, for example, was of the same generation as Laurent Kabila and had provided arms and money for the first war effort; Kabila still owed him somewhere between $40 and $200 million dollars for this first engagement. More importantly, his own besieged government was fraying at the edges after eighteen years in power. A mixture of corruption, poor economic management, and the expropriation of 1,500 white farms had prompted food riots, a fiscal crisis, and international opprobrium. As expensive as the military adventure in the Congo was, it also offered many much-needed business opportunities for Mugabe’s inner cabal. Shortly after toppling Mobutu, his state ammunition factory obtained a $500,000 contract from Kabila’s government, a Zimbabwean businessman extended a loan for $45 million, and businessmen close to Mugabe began negotiating potentially lucrative transport, food, and mining deals with the Congolese. When Rwanda attempted anew to overthrow the regime in Kinshasa, this time without rallying a regional alliance around them, Mugabe saw his investments in jeopardy.

Angola’s interests were much more related to its twenty-three-year-old civil war with UNITA. For decades, the rebels had maintained rear bases in Kinshasa, where Savimbi had frequently met with Mobutu and CIA operatives and had sold tens of millions of dollars of diamonds. In May 1998, Jonas Savimbi’s rebels had scuppered a peace process that they saw as increasingly biased toward the government. They launched attacks throughout northern Angola, close to the border with the Congo. In addition, another Angolan rebel movement, the Front for the Liberation of the Enclave of Cabinda (FLEC), appeared to be making inroads in Cabinda, a tiny Angolan enclave just north of the Kitona airbase, where around 60 percent of Angola’s oil is drilled, providing it with about half of all national revenues. According to French government officials, FLEC had been in touch with the Rwandan government before the Kitona airlift.

The diplomatic tug-of-war continued for several days, with South African president Nelson Mandela attempting to mediate between the two sides to prevent a continent-wide war breaking out. His attempt earned him the scorn of Mugabe, who told him to shut up if he didn’t want to help defend the Congo. Kabila’s office was equally blunt, suggesting that “age had taken its toll” on the venerable African leader.

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Filed under Angola, Chad, Congo, economics, nationalism, Rwanda, South Africa, Uganda, war, Zimbabwe