Monthly Archives: September 2021

by | 9 September 2021 · 4:39 am

Nigeria’s Smuggled Economy

From The Looting Machine: Warlords, Oligarchs, Corporations, Smugglers, and the Theft of Africa’s Wealth, by Tom Burgis (PublicAffairs, 2016), Kindle pp. 61-62, 65:

Weapons and unwilling human traffic cross Nigeria’s northern border covertly. But the flow of counterfeit Chinese-made textiles has grown so voluminous that it would be impossible to keep it secret even if secrecy were required to ensure its safe passage. All the same, most of the shipments go through under cover of darkness. Those who control the trade engage in highly organized “settling,” or bribing, of the border officials, smoothing the textiles’ transit.

The Nigerian stretch is just the final leg of a 6,200-mile journey. It begins in Chinese factories, churning out imitations of the textiles that Nigerians previously produced for themselves, with their signature prime colors and waxiness to the touch. By the boatload they arrive in west Africa’s ports, chiefly Cotonou, Benin’s biggest city, a tiny country beside Nigeria that has, like Montenegro in Europe or Paraguay in South America, become a state whose major economic activity is the trans-shipment of contraband. At the ports the counterfeit consignments are loaded onto trucks and either driven straight over the land border between Benin and western Nigeria or up through Niger and round to the border post with its taciturn chief. The trade is estimated to be worth about $2 billion a year, equivalent to about a fifth of all annual recorded imports of textiles, clothing, fabric, and yarn into the whole of sub-Saharan Africa.

Smuggling is a long-established profession here. Before colonial cartographers imposed the frontier, today’s smuggling routes were the byways of legitimate commerce. The border marks a delineation of what used to be British and French territory in west Africa, but no natural division of language or ethnicity exists. People on both sides speak Hausa, a tongue in which the word for smuggling, sumoga, strikes a less pejorative note than its English equivalent. The textile smuggling bosses are the oligarchs of the northern borderlands. For those in their pay, they can be generous benefactors.

…

The cheaper price of smuggled garments relative to locally produced ones was good news, superficially at least, for the traders’ hard-pressed customers but less so for the employees of Nigeria’s textile industry. “It is a pitiable situation,” said Hillary, apparently oblivious to his and his colleagues’ role in their compatriots’ downfall. “All the [textile factories] we have here have shut down. The workers are now on the streets.”

In the mid-1980s Nigeria had 175 textile mills. Over the quarter-century that followed, all but 25 shut down. Many of those that have struggled on do so only at a fraction of their capacity. Of the 350,000 people the industry employed in its heyday, making it comfortably Nigeria’s most important manufacturing sector, all but 25,000 have lost their jobs. Imports comprise 85 percent of the market, despite the fact that importing textiles is illegal. The World Bank has estimated that textiles smuggled into Nigeria through Benin are worth $2.2 billion a year, compared with local Nigerian production that has shriveled to $40 million annually. A team of experts working for the United Nations concluded in 2009, “The Nigerian textile industry is on the verge of a total collapse.” Given the power crisis, the near-impassable state of Nigeria’s roads, and the deluge of counterfeit clothes, it is a wonder that the industry kept going as long as it did.

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Filed under China, economics, industry, migration, military, Nigeria

by | 8 September 2021 · 6:29 am

Congo’s Tantalum Wealth

From The Looting Machine: Warlords, Oligarchs, Corporations, Smugglers, and the Theft of Africa’s Wealth, by Tom Burgis (PublicAffairs, 2016), Kindle p. 30:

The Congolese are consistently rated as the planet’s poorest people, significantly worse off than other destitute Africans. In the decade from 2000, the Congolese were the only nationality whose gross domestic product per capita, a rough measure of average incomes, was less than a dollar a day.

Tantalum’s extremely high melting point and conductivity mean that electronic components made from it can be much smaller than those made from other metals. It is because tantalum capacitors can be small that the designers of electronic gadgets have been able to make them ever more compact and, over the past couple of decades, ubiquitous.

Congo is not the only repository of tantalum-bearing ores. Campaigners and reporters perennially declare that eastern Congo holds 80 percent of known stocks, but the figure is without foundation. Based on what sketchy data there are, Michael Nest, the author of a study of coltan, calculates that Congo and surrounding countries have about 10 percent of known reserves of tantalum-bearing ores. The real figures might be much higher, given that reserves elsewhere have been much more comprehensively assessed. Nonetheless, Congo still ranks as the second-most important producer of tantalum ores, after Australia, accounting for what Nest estimates to be 20 percent of annual supplies. Depending on the vagaries of supply chains, if you have a PlayStation or a pacemaker, an iPod, a laptop, or a mobile phone, there is roughly a one-in-five chance that a tiny piece of eastern Congo is pulsing within it.

The insatiable demand for consumer electronics has exacted a terrible price. The coltan trade has helped fund local militias and foreign armies that have terrorized eastern Congo for two decades, turning what should be a paradise into a crucible of war.

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Filed under Australia, Congo, economics, industry, labor, military, war

by | 7 September 2021 · 7:20 am

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

by | 6 September 2021 · 6:06 am

Political Economy of the Roadblock

From The Looting Machine: Warlords, Oligarchs, Corporations, Smugglers, and the Theft of Africa’s Wealth, by Tom Burgis (PublicAffairs, 2016), Kindle pp. 44-45:

Our two-jeep convoy slowed as it approached a roadblock deep in the tropical forests of one of eastern Congo’s national parks. Manning the roadblock were soldiers from the Congolese army, theoretically the institution that should safeguard the state’s monopoly on the use of force but, in practice, chiefly just another predator on civilians. As my Congolese companions negotiated nervously with the soldiers, I stepped away to take advantage of a break in a very long drive and relieve myself, only to sense someone rushing toward me. Hurriedly zipping up my fly, I turned to see a fast-approaching soldier brandishing his AK47. With a voice that signified a grave transgression, he declared, “It is forbidden to piss in the park.” Human urine, the soldier asserted, posed a threat to eastern Congo’s gorillas. I thought it best not to retort that the poor creatures had been poached close to extinction by, among others, the army nor that the park attracted far more militiamen than gorilla-watching tourists.

My crime, it transpired, carried a financial penalty. My companions took the soldier aside, and the matter was settled. Perhaps they talked him down, using the presence of a foreign journalist as leverage. Perhaps they slipped him a few dollars. As we drove away it occurred to me that we had witnessed the Congolese state in microcosm. The soldier was following the example set by Kabila, Katumba, Mwangachuchu, and Nkunda: capture a piece of territory, be it a remote intersection of potholed road, a vast copper concession, or the presidency itself; protect your claim with a gun, a threat, a semblance of law, or a shibboleth; and extract rent from it. The political economy of the roadblock has taken hold. The more the state crumbles, the greater the need for each individual to make ends meet however they can; the greater the looting, the more the authority of the state withers.

While we were visiting my historian brother during his sabbatical in Cameroon, we hired a driver to take us into the Southern Region. As we approached Lolodorf (a name dating back to German Kamerun), I stepped out of the car to take a photo of the sign. As I got back in the car, a policeman, who had been sitting in his car in the shade across the road, came over to tell us it was forbidden to take photos of road signs. After we politely asked why, he began to find fault with the windshield documentation required for the hired car. He went back and forth to his car several times, supposedly checking with his superiors, while we quietly waited to see how much of a bribe it would take to get free of him. He asked for all our IDs, and we gave him anything except our passports. After perhaps 20 minutes of quiet back and forth, we were able to pay him a “fine” equivalent to about US$10, enough for him to buy more beer for his afternoon in the shade.

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Filed under Cameroon, Congo, democracy, economics, labor, migration, military

by | 4 September 2021 · 6:46 am

Collapse of Lebanon’s Second Republic

From Beirut 2020: Diary of the Collapse, by Charif Majdalani (Other Press, 2021), Kindle pp. xii-xiv (preface to the English-language edition, which provides very helpful context for the diary entries, which I will refrain from excerpting):

But the main issue was that the war chiefs–turned–political leaders seized control of the government and public sector, in concert with the generals of the Syrian occupying forces, and together they developed a system of governance that was entirely based on clientelistic mafia practices. They took advantage of the huge public works program for the reconstruction of the country, and of the bountiful financial manna this generated, to shamelessly enrich themselves and to entrench corruption as a system of government and a way of life, with the culpable consent of a powerful caste of arrogant bankers. Nevertheless, this was the beginning of thirty years of renewed opulence, euphoria, creativity, and vitality, when the population shamefully closed their eyes to the actions of this noxious political class.

In 2005, the Sunni prime minister Rafic Hariri, the only politician who was not a former war chief and who showed himself to be extremely hostile to the Syrian control of the country, was assassinated by the Syrians with the help of Hezbollah. This sparked a huge insurrection, which forced the Syrians to withdraw. Those previously banished (Michel Aoun) or who were political prisoners (Samir Geagea) returned. But former allies of Syria, such as Berri, Jumblatt, and the Hezbollah chiefs, managed to stay in power. New alliances sprang up between them and those who had returned, which led to the persistence of the same clientelism and corruption in political practices as under the occupation. This finally brought about the collapse of the country in 2020—a disaster which the present diary documents from day to day.

Despite this tormented history, Lebanon really had been, and perhaps could still be, a laboratory for some important political and social experiments. The first of these experiments is the management of multiculturalism and religious coexistence, which have endured despite violent convulsions, and lead every day to new forms of acculturation and cultural diversity. This small country has also been the laboratory where the processes of transforming family, clan, and community affiliation into a sense of citizenship are repeated on a daily basis. In other words, it is like a small-scale reenactment under a bell jar of the very genesis of any democracy.

Unfortunately these experiments have been slow to be reflected in political practice. They have suffered from being subverted or misappropriated by the ruling class, whose poor governance, corruption, and clientelization of the citizenry on the basis of community affiliation might also serve as a test case. The crisis in Lebanon in 2020 showed the dangers resulting from hyperliberal economic policies and the absence of any regulatory authority or control over the country’s social or economic life, which have turned political leaders into mafia bosses in their dealings with the nation’s citizens. The Lebanese people were forced to endure this hyperliberalism and the transformation of the public sector into a mafialike structure. They were obliged, day in and day out, to invent original forms of social and civic regulation and transaction, in the absence of any higher authority doing so. For several decades, they thought that this might also serve as a model, before they understood that a world where the banks and the super-wealthy seek to manage the life of ordinary citizens by depriving them of any official recourse to government was a complete disaster on all levels—be it social, economic, urban, or ecological. In this way as well, Lebanon’s recent history and collapse might serve as a forewarning and alarm bell for the entire planet.

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Filed under democracy, economics, Lebanon, migration, military, nationalism, religion, Syria

by | 3 September 2021 · 6:29 am

Lebanon’s Civil War and Its Aftermath

From Beirut 2020: Diary of the Collapse, by Charif Majdalani (Other Press, 2021), Kindle pp. x-xii (preface to the English-language edition, which provides very helpful context for the diary entries, which I will refrain from excerpting):

All this explains why the tensions between the large religious groups remained very strong, in particular because the constitution created in 1945 implicitly gave more power to the roles reserved for Christians than to those accorded to Muslims. The Muslims demanded reforms, but the Christians, fearing for their status and survival and continuing to believe that Lebanon was created for them, refused. Moreover, the Christians held great fears at the prospect of the rise in power and militarization of the Palestinian organizations that had sprung from the refugee communities in Lebanon in 1948, and that started demanding to play a role in internal Lebanese politics in 1969 and 1970. The strategy of these organizations consisted in giving their support to Lebanese Muslims. Faced with this coalition of Islamic-Palestinian interests, the Lebanese Christians took fright and armed themselves in turn, leading inevitably to the Lebanese civil war, which lasted from 1975 to 1990.

This was indeed a civil war, in that most of the fighting was between the Lebanese people themselves, but it was also very much a foreign war, because the Palestinians, Syrians, and Israelis were also involved. In 1982 the Palestinian militias were forced out of Lebanon by the Israeli invasion. But the Israelis had to evacuate the invaded Lebanese territories and confine themselves to the southern border regions adjacent to Israel. This opened Lebanon’s doors to the Syrians, who allied themselves with the Lebanese Muslims and Druzes, and with war chiefs such as the Druze Walid Jumblatt or the Shiite Nabih Berri, as well as with the Shiite Hezbollah organization, which was engaged in a war with Israel in the regions it still occupied. For their part, the Christians resisted the Syrians for years, under the command of men such as Bashir Gemayel and Samir Geagea. In 1989, the reckless and unruly Christian general Michel Aoun took it into his head to unite the Christian ranks, and threw himself into devastating wars against his rivals on the same side, notably Samir Geagea, which led to the collapse of the Christian camp in 1990 and to the entire country falling to Syrian control.

This marked the end of the civil war and the start of what is called the second Lebanese republic, which is divided into two eras. In the first, from 1990 to 2005, Syria dominated the country and its ruling class. The Muslim or Druze war chiefs, Jumblatt, Berri, along with the Hezbollah leaders, but also the less powerful Christian leaders who had pledged allegiance to the Syrians, all took over the controls. The other Christian leaders, such as Geagea and Aoun, found themselves respectively either in prison or in exile. The allocation of posts along religious lines was reinstated during this period, but with a notable difference: the dominant positions were given to Muslims and no longer to Christians.

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Filed under democracy, Israel, Lebanon, migration, military, nationalism, religion, Syria, war

by | 2 September 2021 · 6:27 am

Foundations of Lebanon’s Exceptionalism

From Beirut 2020: Diary of the Collapse, by Charif Majdalani (Other Press, 2021), Kindle pp. viii-x (preface to the English-language edition, which provides very helpful context for the diary entries, which I will refrain from excerpting):

This peculiar identity could undoubtedly be considered as the source of all the conflicts to come, but it also proved to be Lebanon’s defining characteristic for many years: a nation straddling the great cultures of the East and the West, a crossroads, a herald of coexistence, openness, cultural exchange and integration. For the thirty years from 1945 to 1975, despite a few minor jolts, Lebanon also figured as something of an exception among its neighbors. It was the only country in the region not to fall prey to a nationalist military dictatorship, like Egypt under Nasser and Iraq or Syria under the Baath parties. It was the only democracy of the Arab world, and one of very few in what was then called the third world. It also developed a liberal economy which has endured to this day, within a region entirely dominated by so-called socialist models—models which, in Nasser’s Egypt and in Syria and Iraq, led to disastrous nationalizations, to the disappearance of their middle classes and the impoverishment of their populations. Lebanon thus lived for thirty years in unbelievable opulence and enjoyed exceptional cultural and economic vitality.

It now seems clear that it was precisely because of the diversity of its population and the complexity of its human institutions that Lebanon avoided dictatorship and the so-called socialist models that beset the rest of the Arab world between 1950 and 1975. Religious affiliation, which in Lebanon is more cultural than strictly faith-based, underpinned all political relationships and balances. This was made manifest in the strangest political system imaginable, called “confessionalism.” All government posts were allocated approximately equally between religious communities. Every single employment position in the public sector, from the highest level in a ministry to its lowest echelons, was reserved for one or another community, depending on its presumed importance. The president of the republic had to be a Maronite Christian, the prime minister a Sunni Muslim, and so on. This political system prevented any single community or individual from controlling the government, and averted any possibility of hegemony or coups.

All this nevertheless created something like an oligarchic system, where the political leaders were systematically elected from the most important family clans within the large religious groups. They ruled the country collegially, on the basis of elections where the focus was always on the interests of the various religious communities, rather than on political issues. And yet the social classes that divided society were strongly intercultural. A real middle class had arisen from both Muslim and Christian communities, in the face of wealthy upper classes that also recruited from various groups, just as the working classes had members from both sides of the religious divide. However, social identity and affiliation never produced true class consciousness, but were always dominated by a very strong sense of religious, cultural, and community affiliation.

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Filed under democracy, economics, Lebanon, Middle East, military, nationalism, religion

by | 1 September 2021 · 6:11 am

Lebanon Before Independence

From Beirut 2020: Diary of the Collapse, by Charif Majdalani (Other Press, 2021), Kindle pp. vi-viii (preface to the English-language edition, which provides very helpful context for the diary entries, which I will refrain from excerpting):

For centuries, the religious mosaic and cultural diversity thus introduced into the lands that would become Lebanon were more or less well managed by the central powers of the empires on which Lebanon and its neighbors depended. Of course, there were clashes and conflicts, but everything remained under the slightly manipulative control of the dominant powers, and notably, from the sixteenth to the beginning of the twentieth centuries, of the Ottoman Empire.

When that empire collapsed in 1918, victorious France and Great Britain divided up the Middle East. It was France that secured the mandate over Lebanon, thus fulfilling the wishes of part of its Christian population, which sought to place itself under French protection and to avoid British rule. It should be noted that the Christians had long felt closely connected to France. Many had adopted the French language and culture well before the period of the Mandate, and had dreamed of the French taking control of the country to rid them of the Ottoman occupation. This privileged relationship between the Christians of Lebanon and the French also explains why the Lebanese never felt any hostility toward France. In the Lebanese worldview, France was never seen as an occupying power, but rather as an ally. Only the highly ideological left-wing discourse of the 1970s attempted to represent France as a colonial power, which it never really was in Lebanon, despite some instances of very transient irregularities. In fact it was with the assistance of the Christians, and on their advice, that the French determined the current borders of Lebanon in 1920: they adjoined a long band of coastline and the interior plain of Beqaa to the original Lebanon Mountains, along with the northernmost part of Galilee in the south. The overriding aim was to unite as many regions as possible where the inhabitants were Christian. The Maronites, the Eastern-rite Catholics and Greek Orthodox communities actively worked toward the creation of the new nation in its present form, and considered it to have been founded for them alone, even though part of its population was Muslim or Druze. During a relatively soft Mandate that barely lasted twenty-five years, the French successfully managed the antagonisms between the various communities. But when Lebanon acquired independence in 1945, the foundations for discord were already laid, notably regarding the definition of the country’s identity. The Christians still felt closely connected to the West, the Muslims for their part felt they belonged more to the Arab world. Nevertheless, the two communities both demanded and obtained independence together, then found a way of avoiding conflict by decreeing that the new Lebanon was not a Western country, but nor did it belong to the Arab world. This was the famous affirmation of national identity by a double negative.

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Filed under Britain, France, language, Lebanon, Middle East, nationalism, religion, Turkey