NEPAD: Foothold for Corporate Globalization in Africa

 

By, Antonia Juhasz, Project Director, International Forum on Globalization

 

The “New Partnership for Africa’s Development” (NEPAD) was formally introduced to the world on October 23, 2001 in Abuja, Nigeria, by several African heads of state.  The NEPAD is already included in the Chairman’s text of the World Summit on Sustainable Development (WSSD) and will likely be a centerpiece of discussions there.  Unfortunately, NEPAD’s prominence rests not, as is claimed by its authors, in support from African people or in its likelihood to bring Africa environmental and social sustainability.  Rather, its prominence is derived from adoption of the economic globalization “development” model that is poised to over-take the Summit based on free trade, market liberalization, private investment and privatization of vital services.  Based on passed experience in Africa and around the world with such policies, critics predict that, if adopted, NEPAD will bring increased environmental devastation, poverty and social instability to Africa.

 

NEPAD’s main author and champion, South African President Thabo Mbeki, began writing a development plan for South Africa to attract both foreign aid and foreign investment in 1999.  He circulated it among heads of state at meetings of the G-8, transnational corporations at the World Economic Forum (WEF), and at the Seattle and Doha Ministerial meetings of the World Trade Organization (WTO). It was not circulated, however, among African civil society.  It is therefore not surprising that once the text of NEPAD was made public, statements and protests opposing it emerged from all sectors of South African society, including the South African Catholic Bishops’ Conference, the Congress of South African Trade Unions, and the Wildlife and Environment Society of South Africa.  The first public protest against NEPAD was led by Jubilee South Africa in June 2002, at the WEF’s Southern African regional meeting in Durban.

 

Civil Society Excluded

According to Patrick Bond, professor at the University of the Witwatersrand in Johannesburg, “During the formulation of NEPAD, no civil society, church, political-party, parliamentary, or other potentially democratic or progressive forces were consulted.”[i]  Furthermore, “NEPAD contains no concrete actions to be taken by the African peoples, no offer of organizational resources, and no civil-society implementation plan.  The document itself was available to African civil society only through internet websites [which are, in turn, only available to a limited number of  Africans].”[ii]

 

The lack of African civil society input is reflected in the fact that NEPAD rejects the multitude of alternative African development strategies that have emerged from civil society and academic movements over the past two decades.  These include the Lagos Plan of Action (1980) and the Abuja Treaty (1991), African Alternative Framework to Structural Adjustment Programmes (1989), the African Charter for Popular Participation and Development (Arusha Charter, 1990) and the Cairo Agenda (1994). Included in these policies are commitments, among others, to fully participatory democratic policy-making, rejection of the privatization of public services, redirection of resources from the private to the public sector, debt repudiation, increased exchange controls, protection of vital infant industries, greater regional cooperation and mobility of people across Africa and meaningful environmental sustainability that fully comprehends that the wealth of so-called developed nations was gained a huge environmental cost.

 

The rejection of these initiatives is reflected in NEPAD’s economic globalization policy-prescriptions derived from the World Bank, International Monetary Fund (IMF), WTO, AGOA and others.  Moreover, it also fits neatly within the guidelines of the newly proposed Bush Administration Millennium Challenge Account (MCA) for U.S. development aid.  One of the most obvious disconnects with civil society is NEPADs rejection of the demands for total debt cancellation – the starting point for most African models of development.  While the citizens of Africa have been risking their lives, rising up in protest and critical analysis against this globalization framework, NEPAD whole-heartedly and uncritically adopts it.

 

According to the “African Civil Society Statement on NEPAD” authored several groups, including the Economic Justice Network, Third World Network-Africa, the Secretariat of the Gender & Trade Network in Africa and the Alternative Information and Development Centre, “In essence, the document is an attempt to negotiate with Northern powers the terms of Africa’s integration into the world economy without challenging the systemic and structural dynamics by which globalization has further marginalized and created polarization within Africa, both within individual African countries and between them.”

 

Focus on Privatization

To achieve “sustainable” and “self” development, NEPAD calculates and builds a plan around achieving an annual growth rate of 7% for the next 15 years and securing financing of $64 billion per year to accomplish its development goals.  These resources will go into a series of key projects. NEPAD’s policies focus on privatization, particularly of infrastructure such as water, electricity, telecommunications and transport, largely in the form of “Public-Private Partnerships” between private industry and government – as does the World Bank, the Bush Administration’s MCA and, potentially, the WSSD itself.  Privatization in Africa, however, has been a marked by deadly failure in some of the most vital environmental and human need areas, including water and sanitation. 

 

For example, after the World Bank forced KwaZulu-Natal, South Africa to privatize its water, those who were too poor to pay were cut off.  They were then forced to resort to using polluted river water, resulting in an outbreak of cholera that has already claimed 32 lives.  In fact, due to privatization and other forces, cholera outbreaks affecting more than 140,000 people occurred in South Africa between the years 2000 and 20002.

 

The “African Civil Society Declaration on NEPAD” outlines, among others, the following specific problematic elements of NEPADs economic globalization policies: “[NEPAD] accepts export-led growth and the expansion of Africa’s traditional exports which has already aggravated the deteriorating terms of trade for Africa; endorses the aims of reciprocal free trade and other policy conditionalities demanded by the EU and US, such as privatization, labor deregulation, and investment liberalization in the Cotonou Agreement and the AGOA, respectively; and accepts the erroneous depiction of the “marginalization” of Africa, whereas Africa has long been deeply and disadvantageously integrated into the global economy...” 

 

Civil society groups are concerned that NEPADs focus on expanded export-led development will increase natural resource depletion without offering new environmental protections.  Groups such as the Wildlife and Environment Society of South Africa (WESSA), write that there is a lack of importance given to the ecological leg of sustainable development in the NEPAD, it “puts Africa on the path to destruction… What is needed is a development path which enables people to enjoy a good quality of life without destroying our life support systems such as clean water and air.”

 

Protest

There will be at least one formal day of protest against the NEPAD during the WSSD led by African civil society groups and joined by citizens of the world in the name of meaningful democratic policy development, creation and implementation for sustainable environmental and social development.

 

 

 

Antonia Juhasz

Project Director

International Forum on Globalization

1009 General Kennedy Avenue, #2

San Francisco, CA 94129

415-561-3490

www.ifg.org

 



[i] Bond, Patrick, “The New Partnership for Africa’s Development, An Annotated Critique.”  January 2002, p. 1.

[ii] Bond, Patrick, “The New Partnership for Africa’s Development: Social, Economic and Environmental Contradictions,” Capitalism, Nature, Socialism, June 2002, p.16.

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