Category Archives: Africa

How Multinationals Dodge Taxes

From The Looting Machine: Warlords, Oligarchs, Corporations, Smugglers, and the Theft of Africa’s Wealth, by Tom Burgis (PublicAffairs, 2016), Kindle pp. 165-167:

Two-thirds of trade happens within multinational corporations. To a large extent those companies decide where to pay taxes on which portions of their earnings. That leaves ample scope to avoid paying taxes anywhere or to pay taxes at a rate far below what purely domestic companies pay.

Imagine a multinational company making rubber chickens, called Fowl Play Incorporated. Fowl Play’s headquarters and most of its customers are in the United States. A subsidiary, Fowl Play Cameroon, runs a rubber plantation in Cameroon. The rubber is shipped to a factory in China, owned by another subsidiary, Fowl Play China, where it is made into rubber chickens and packaged. The rubber chickens are shipped to Fowl Play’s parent company in the United States, which sells them to mainly US customers.

Fowl Play could simply pay taxes in each location based on an honest assessment of the proportion of its income that accrues there. But it has a duty to its shareholders to maximize returns, and its executives want the bonuses that come from turning big profits, so its accountants are instructed to minimize the effective tax rate Fowl Play pays by booking more revenues in places with low tax rates and fewer revenues in places with high tax rates. If, for example, Fowl Play wanted to reduce its tax liability in Cameroon and the United States by shifting profits to China, where it has been granted a tax holiday to build its factory, it would undervalue the price at which the rubber is sold from the Cameroonian subsidiary to the Chinese one, then overvalue the price at which the Chinese subsidiary sells the finished rubber chickens to the parent company in the United States. All this happens within one company and bears scant relation to the actual costs involved. The result is that the group’s overall effective tax rate is much lower than it would have been had it apportioned profits fairly. Many such tax maneuvers are perfectly legal. When it is done ethically “transfer pricing,” as the technique in this example is known, uses the same prices when selling goods and services within one company as when selling between companies at market rates. But the ruses to fiddle transfer pricing are legion. A mining company might tweak the value of machinery it ships in from abroad, or an oil company might charge a subsidiary a fortune to use the parent’s corporate logo.

Suppose Fowl Play gets even cannier. It creates another subsidiary, this time in the British Virgin Islands, one of the tax havens where the rate of corporation tax is zero. Fowl Play BVI extends a loan to the Cameroonian subsidiary at an astronomical interest rate. The Cameroonian subsidiary’s profits are canceled out by the interest payments on the loan, which accrue, untaxed, to Fowl Play BVI. And all the while Fowl Play and the rubber chicken industry’s lobbyists can loudly warn Cameroon, China, and the United States that, should they try to raise taxes or clamp down on fiddling, the company could move its business, and the attendant jobs, elsewhere. (The BVI company is only a piece of paper and doesn’t employ anyone, but then there is no need to threaten the British Virgin Islands—its tax rate could not be lower.)

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New African Infrastructure for Whom?

From The Looting Machine: Warlords, Oligarchs, Corporations, Smugglers, and the Theft of Africa’s Wealth, by Tom Burgis (PublicAffairs, 2016), Kindle pp. 147-149:

It is too simplistic to see China’s quest for African resources as a Manichean struggle for nature’s treasure between East and West. There is competition, but there is also cooperation in the business of resource extraction. And for all its increased attractiveness to rival investors from overseas, much of Africa remains locked at the foot of the global economy.

Ibrahim Iddi Ango, the industrialist who headed Niger’s chamber of commerce, told me that Niger’s rulers had sold the country short in their negotiations with the Chinese. “They need strategic resources. You must say, ‘You are interested in that? These are the conditions. First, you must use local labor. Second, all the needs you have—for example, the transit—you must use at a minimum 50 percent local operators.’ But when they came the government said none of this. The state took a percentage of the businesses and let the Chinese do what they want.” A brief window of opportunity to use China’s desire for African minerals to insist on securing for Niger the skills and infrastructure that might help to salve the resource curse by broadening the economy was closing. “To diversify, it’s central,” Iddi Ango said—and with good reason. Niger is among the African states most acutely dependent on a handful of raw commodity exports, their economic fortunes yoked to the whims of far-off consumers. On the African Development Bank’s index, where a higher score indicates a more diversified economy, relatively wealthy countries not shackled to the resource trade such as Mauritius and Morocco score 22 and 41, respectively. The average for the whole of Africa, including more prosperous North Africa, is 4.8. The most oil-dependent states, Angola and Chad, record the lowest scores, 1.1. Niger does only marginally better, with a score of 2.4.

“But if you let China do what it wants—as many African countries have—they pay for the oil or the resources and use Chinese labor, Chinese trucks. It’s a big problem,” Iddi Ango said. “They are coming because the resources are here. This moment will not be repeated. We can’t miss it. When the uranium or the oil is finished, they will leave.”

The fall of Tandja demonstrated the limits of China’s readiness to get involved in domestic politics to protect African allies. But Xia Huang, the Chinese ambassador in Niamey, encapsulated how China’s readiness to spend and build allowed Beijing to gain a foothold sufficiently strong that its interests could withstand a coup against an ally. “Today there is a bridge between the two sides of the River Niger,” he told me. “But there is also a bridge that links China and Niger.”

Yet the true value of China’s offer to guide Africa on a path to economic diversification and industrialization—the road that led the rich world to prosperity—rests on whether its construction spree is geared primarily toward cultivating the rulers who govern access to resources or toward broadening the opportunities of the population at large. Neither railways that simply connect Chinese-owned mines to Chinese-built ports for the export of commodities nor vanity projects of great cost but little economic usefulness will lift resource states’ inhabitants from their poverty. Martyn Davies, the chief executive of a South African consultancy called Frontier Advisory who has worked as an adviser on Chinese deals in Africa, told me, “When you have a commodity-driven economy, where a lot of people are excluded, it’s a silo economy. It’s very difficult to build infrastructure that supports inclusive growth. Is Chinese-financed infrastructure going to provide diversification? Which comes first?” He added, “African governments should never assume that responsibility for the development of our continent has been outsourced to Beijing.”

Beijing appears to be undercutting its side of the deal. Chinese goods like the counterfeit textiles flooding into northern Nigeria drown out hopes for industrialization, regardless of how many roads and railways Chinese companies lay. Lamido Sanusi, governor of Nigeria’s central bank from 2009 to 2014, put it well: “So China takes our primary goods and sells us manufactured ones. This was also the essence of colonialism. The British went to Africa and India to secure raw materials and markets. Africa is now willingly opening itself up to a new form of imperialism.”

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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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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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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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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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Parade of Nations in Katakana Order

I don’t remember how Japan ordered the Parade of Nations when it hosted the Olympics in 1964 (when I was in high school there), but this year the nations were ordered according to how their Japanese names sounded in katakana, the Japanese syllabary used to render foreign names. A full list of the nations in Japanese order can be found in the NPR report about the parade.

Katakana order was used even when names contained kanji (Chinese characters). So Equatorial Guinea (赤道ギニア Sekidou Ginia, lit. ‘Redroad [=equator] Guinea’) appeared between Seychelles (セーシェル) and Senegal (セネガル) because they all start with the sound SE, written セ in katakana.

Similarly, Great Britain (英国 Eikoku, lit. ‘brave-country’) and the British Virgin Islands (英国ヴァージン諸島) appeared after Uruguay (ウルグァイ) and before Ecuador (エクアドル) because the katakana syllabary starts with the five vowels in the order A I U E O (アイウエオ), then proceeds to KA KI KU KE KO (カキクケコ). So the E+I of Eikoku precedes the E+KU of Ekuadoru. (In Chinese, where the name 英国 originated, the character 英 sounds much more like the first syllable of England.)

The last of the vowel-initial names are those that start with the sound O: Australia (オーストラリア Oosutoraria), Austria (オーストリア Oosutoria), Oman (オマーン Omaan), and the Netherlands (オランダ Oranda < Holland). I’ve transcribed the long vowels here as double vowels.

The order of the consonant-initial syllables is KA (カ), SA (サ), TA (タ), NA (ナ), HA (ハ), MA (マ), YA (ヤ), RA (ラ), WA (ワ), N (ン). Most, but not all, of these consonants occur with each vowel. The YA series has YA (ヤ), YU (ユ), and YO (ヨ), but YI and YE have been replaced by the vowels I and E. As a consequence, Yemen is written イェメン Iemen, and its team preceded Israel, Italy, Iraq, and Iran in the parade, while Jordan was relegated to near the end of the parade as the only name starting with Y, written ヨルダン Yorudan. The WA series only has WA (ワ) and WO (ヲ), with WI, WU, WE replaced by the vowels I, U, E. The final sound, N (ン) only occurs at the ends of syllables, as in Iemen and Yorudan.

In katakana, voiced consonants are distinguished from their voiced equivalents by a diacritic that looks a bit like a double quote mark: KA カ vs. GA ガ, TA タ vs. DA ダ, SA サ vs. ZA ザ. The consonants with and without diacritics are considered equivalent for ordering purposes. So Canada (Kanada), Gabon (Gabon), Cameroon (Kameruun), Gambia (Ganbia), Cambodia (Kanbojia) are in that order because of what follows their initial KA/GA syllables (-NA-, -BO-, -ME-, -NBI-, -NBO-, respectively). On the same principle, Zambia (Zanbia) precedes San Marino (Sanmarino) (-NBI- > -NMA-), while Singapore (Singaporu) precedes Zimbabwe (Zinbabue) (-NGA- > -NBA-) among the nations whose names start with S/Z.

The same principle applies to the three-way diacritical distinction between HA ハ, PA パ, and BA バ. So Bahrain (Baareen), Haiti (Haiti), and Pakistan (Pakisutan) begin the series of names beginning with HA ハ, which also include Vanuatu (Banuatu) because Japanese has no syllable VA. (However, the V can be represented by adding the voiced consonant diacritic ” to the vowel ウ U, as in ヴァージン Vuaajin for the Virgin Islands.)

Nor does Japanese have a syllable FA, but the syllable HU (フ) sounds close enough to FU to substitute for F in foreign words. So names beginning with F sounds fall into the same group as those beginning with H, P, and B. Thus, the next countries to enter after Fiji (フィジー Fuijii), Philippines (フィリピン Fuiripin), and Finland (フィンァンド Fuinrando) were Bhutan (ブータン Buutan) and Puerto Rico (プエルトリコ Pueruto Riko).

The TA/DA (タ/ダ) series is at least as complicated. When pronounced, the syllables TA TI TU TE TO (タチツテト) actually sound like Ta Chi Tsu Te To and are usually romanized that way in English, while DA DI DU DE DO (ダヂヅデド) sound like Da Ji Zu De Do. So nations whose names start with Ch or Ts sounds are ordered among those whose names start with T/D. So the teams for Chile (Chiri), Tuvalu (Tsubaru), Denmark (Denmaaku), and Germany (Doitsu < Deutsch) entered in katakana order チツテト (TI TU TE TO, which sound like Chi, Tsu, Te, To), keeping in mind that TE=DE and TO=DO for ordering purposes.

Just as the normally syllabic フ FU can be combined with イ I (in フィ) to represent the foreign syllable FI, normally syllabic チ TI/CHI can be combined into チャ (TI+ya=) CHA, チュ (TI+yu=) CHU, チェ (TI+e=) CHE, and チョ (TI+yo =) CHO to represent foreign syllables starting with those sounds, as in チャイナ Chaina (China) or チェコ Cheko (Czech). Foreign words starting with J- can be represented using similar combinations starting with ZI/JI. So ZI+ya = JA in ジャマイカ Jamaica and ZI+yo = JO in ジョージア Georgia, which are sandwiched between ジブチ Djibouti and シリア Syria in katakana order. (Jordan is written ヨルダン Yorudan.)

It’s interesting that the Republic of Korea, Chinese Taipei, and the People’s Republic of China all appear among the nations whose names start with T/D, and the Democratic People’s Republic of Korea would too, if it sent a team to this Olympics. The official name of South Korea in Chinese characters is 大韓民国 (Great Han Republic), which is pronounced in Japanese as Daikanminkoku. This name places South Korea immediately after Thailand (タイ Tai), which starts the T/D section of the parade of nations. Chinese Taipei (Chainiizu Taipei) and Tajikistan (Tajikisutan) immediately follow, so the former is ordered as if it were Taipei, not Chinese Taipei.

Tanzania, Czech (チェコ Cheko) Republic, Chad (チャド Chado), and the Central African Republic (中央アフリカ共和国 Chuuou Ahurika Kyouwakoku) precede China (中華人民共和国 Chuuka Jinmin Kyouwakoku ‘Chinese [‘Middle Splendor’] People’s Republic’) because the official names of both the CAR and PRC start with 中 ‘middle’, which in katakana is written チュウ Chuu. The official name of North Korea in Chinese characters is 朝鮮民主主義人民共和国, pronounced in Japanese as Chousen Minshuushugi Jinmin Kyouwakoku (‘Korean Democratic People’s Republic’). It would immediately follow Tunisia (Chunijia) because チュ Chu precedes チョ Cho in katakana order.

Finally, because Japanese R renders both R and L in foreign names, and katakana RA RI RU RE RO come near the end of the syllabary, Laos, Latvia, Lithuania, Libya, Liechtenstein, Liberia, Romania (Ruumania), Luxembourg, Rwanda, Lesotho, and Lebanon come after Jordan (Yorudan) at the tail end of the parade, just before the current and future Olympic host nations.

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Long History of People Exiled

From Orderly and Humane: The Expulsion of the Germans after the Second World War, by R. M. Douglas (Yale U. Press, 2012), Kindle p. 67:

The driving out of unwanted peoples, to be sure, is a practice almost as old as recorded history. The Old Testament tells the story of numerous forced migrations carried out by the Israelites and their neighbors against each other, the Babylonian Captivity being the most celebrated. Philip II of Macedonia was renowned for the scale of his population transfers in the fourth century B.C., a precedent that his son, Alexander the Great, appears to have intended to follow on a far more massive scale. The colonial era witnessed many more forced displacements, often accompanied or initiated by massacre. Some of these bore a distinctly “modern” tinge. The Act of Resettlement that followed Oliver Cromwell’s conquest of Ireland, for example, ordered Irish property owners in three-quarters of the island to remove themselves to the impoverished western province of Connacht by May 1, 1654, to make room for incoming English and Scottish colonists; those remaining east of the River Shannon after that date were to be killed wherever found. “The human misery involved,” in the judgment of Marcus Tanner, “probably equaled anything inflicted on Russia or Poland in the 1940s by Nazi Germany.” On a smaller scale, but proportionately just as lethal, was the United States’ forced relocation of part of the Cherokee nation from Tennessee, Georgia, and Alabama to eastern Oklahoma along the so-called “Trail of Tears” in 1838; perhaps a quarter of the fifteen thousand men, women, and children who were driven out perished, most of them while detained in assembly camps. Extensive forced migrations occurred in Africa and Asia also. In what is today Nigeria the Sokoto Caliphate, the largest independent state in nineteenth-century Africa, practiced slavery on a massive scale—by 1860 it possessed at least as many slaves as the United States—as an instrument of forced migration, the purpose being to increase the security of disputed border areas. “Enforced population displacement … was supposed to strengthen the Islamic state, which was achieved through demographic concentration.” On the western borderlands of China, the Qing Empire in the seventeenth and eighteenth centuries “used deportations and mass kidnappings to build a human resource base.”

Contemporary scholars agree, though, that the twentieth century has been the heyday of forcible population transfers. The rise of the nation-state, in place of the dynastic multinational empires of the earlier period, was both cause and effect of the ideological claim that political and ethnographic boundaries ought to be identical.

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Revival of the Boers, 1907

From Diamonds, Gold, and War: The British, the Boers, and the Making of South Africa, by Martin Meredith (PublicAffairs, 2008), Kindle pp. 492-493:

Lord Milner left South Africa in 1905 with little to show for his attempts to anglicise the Afrikaner population other than a few thousand British immigrants who had been established on the land and a depth of hostility among Afrikaners greater than anything that had existed before the war. A census in 1904 showed the total white population in the Transvaal to number 300,000; Johannesburg’s population had risen from 76,500 before the war to only 83,000; the Witwatersrand’s population now numbered 117,000; but the rural population gave Afrikaners an overall majority. In his final speech in Pretoria, Milner complained about the obstruction he faced from opponents, not from Afrikaners, but from British citizens. ‘Serious injury’ had been done to the ‘best interests’ of the Transvaal, he said, through ‘perpetual fault-finding, this steady drip, drip of deprecation, only diversified by occasional outbursts of hysterical abuse’.

Milner’s efforts were soon undone. In Britain, as the tide of jingoism receded, the Anglo-Boer war came to be seen more as a costly and inglorious episode rather than an imperial triumph. In parliament, the Liberal opposition criticised the use of low-paid Chinese labour in the gold mines, claiming it was tantamount to ‘Chinese slavery’. What made matters worse was the discovery that Milner had authorised the flogging of Chinese labourers – without reference to magistrates – in cases of violence and unruliness. ‘At the time,’ Milner told his successor, Lord Selborne, ‘it seemed to me so harmless that I really gave very little thought to the matter.’

In January 1906, a Liberal government under Sir Henry Campbell-Bannerman came to office, inclined to grant the Transvaal and the Orange River Colony self-government. General Smuts hastened to London to meet the new prime minister. ‘I put a simple case before him that night in 10 Downing Street,’ wrote Smuts. ‘It was in substance: Do you want friends or enemies?’

Five years after Britain had conquered the Boer republics, at a massive cost in lives, the Transvaal and the Orange River Colony were handed back to Afrikaner leaders. In February 1907, Het Volk won a clear majority over FitzPatrick’s Progressives and formed a government under Louis Botha as prime minister. In November 1907, Orangia Unie won all but eight seats in the legislative council and Abraham Fischer became prime minister. To Smuts, it was ‘a miracle of trust and magnanimity’.

To Milner, it was ‘a great betrayal’.

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Foreign Volunteers in the Boer War

From Diamonds, Gold, and War: The British, the Boers, and the Making of South Africa, by Martin Meredith (PublicAffairs, 2008), Kindle pp. 433-435:

Stung by accusations that the war had been mismanaged, the British government ordered a change of command and appointed as commander-in-chief Field Marshal Frederick Roberts – ‘Lord Bobs’ – a diminutive, 67-year-old war hero, blind in one eye; but it was decided to leave Buller in charge of the Natal army. Two more divisions – the last readily available – were despatched from England. The government also realised that it had been trying to fight the wrong kind of war, relying too much on slow-moving infantry battalions to deal with mounted Boer riflemen using highly mobile tactics; British mobility needed to match Boer mobility. Britain called for civilian volunteers to join a new ‘Imperial Yeomanry’. Some 20,000 men from the ‘hunting and shooting’ fraternity signed up, including thirty-four members of parliament and peers. The City of London paid for one thousand volunteers. Further reinforcements came from other parts of the empire – from Canada, Australia and New Zealand. By January 1900, the total number of troops Britain had shipped to South Africa had reached 110,000. Additional support was provided by uitlander refugees and colonial volunteers formed into two mounted corps of their own – the Imperial Light Horse and the South African Light Horse – financed in part by Wernher, Beit & Co.

Even members of the Indian community in Natal – originally immigrants employed as indentured labourers to work on sugar plantations – volunteered to serve as stretcher-bearers. Their organiser was a 28-year-old lawyer, Mohandas Gandhi, who had arrived from India in 1893, spending a year in Pretoria before settling in Durban. Gandhi expressed sympathy for the Boer cause but considered he was bound by loyalty to Britain. ‘I felt that, if I demanded rights as a British citizen, it was also my duty, as such, to participate in the defence of the British Empire.’ The Natal authorities at first turned down Gandhi’s offer. But after Black Week, their attitude changed. Gandhi’s ambulance corps of ‘free’ Indians and indentured labourers recruited 1,100 volunteers.

Just as the British won support from the empire, so Boer ranks were bolstered by foreign volunteers. Some 2,000 uitlanders – Germans, French, Dutch, Irish, Irish-Americans, Russians, Scandinavians, even some English – joined the Boer cause. Another 2,000 foreign volunteers arrived from abroad. A retired French army colonel, Count de Villebois-Mareuil, enlisted, hoping to capture Cecil Rhodes. ‘History will add a fresh flower to the glory of France,’ he wrote in his diary. ‘To take Kimberley and see the face of the Napoleon of the Cape.’ He rose to the rank of Vecht-generaal – combat general – but was killed in action in April 1900. In all, the Boer allies were able to raise armed forces totalling more than 70,000 men. In addition, about 10,000 Africans served as auxiliaries to Boer commandos – retainers, porters, gun-bearers and labourers – many of them conscripted under duress.

Yet early Boer advantages were soon frittered away by poor strategy. By committing such a large proportion of their forces to the siege of three towns, Boer generals lost the opportunity to drive deeper into Natal and the Cape Colony when both areas were highly vulnerable to mobile attack. As their forward thrusts began to ebb, they turned to a more defensive stance, preparing for a much tougher British assault. By December, the Boer offensive had reached its limits. Unlike 1881, there had been no crushing blow to induce the British to negotiate.

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