Monday, December 23, 2024

World Bank/IMF ripping off Africa through fabricated statistics and hidden agendas

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World bank building in Washington

By Richard Mgamba

The author is an award winning journalist who won the CNN Africa Journalist award in 2008 following his article about the controversial Buzwagi gold Mine deal. He was also Africa’s overall winner for the European Journalism award for human rights, democracy and development (Lorenzo Natal Journalism) in 2009. He is currently managing editor of The Guardian on Sunday.

I came across an email that was being circulated about two months ago which was somewhat offensive to blacks, but was a true reflection of who we are and why we are where we are today:

The email was written by a Zambian journalist, Field Ruwe, currently living in the United States of America, who recounted the brutal details resulting from a conversation he had with a passenger sitting next to him on a transatlantic flight. His companion, a white man, introduced himself with a very disturbing revelation that he had visited Zambia three years ago as part of an IMF delegation “that came to rip you guys off !”

The white man further revealed that he was no longer with the IMF, but with another organisation “with similar intentions.” He told the Zambian journalist that the broker he worked for had acquired a chunk of the country’s debt.

I have carefully chosen some quotes quoting the conversations between Ruwe and his companion, a white man, written by the very same Zambian journalist to help my readers get a clear message of this story.

“My name is Walter,” he extended his hand as soon as I settled in my seat.

“I spent three years in Zambia in the 1980s,” he continued. “I wined and dined with Luke Mwananshiku, Willa Mungomba, Dr Siteke Mwale, and many other highly intelligent Zambians.” He lowered his voice. “I was part of the IMF group that came to rip you guys off.” He smirked. “Your government put me in a million-dollar mansion overlooking a shanty called Kalingalinga. From my patio I saw it all – the rich and the poor, the ailing, the dead, and the healthy.”

“Are you still with the IMF?” I asked.[pullquote]“We come in with our large boats and fish your minerals and your wildlife and leave morsels—crumbs. That’s your staple food, crumbs. That corn-meal you eat, that’s crumbs, the small tilapia fish you call Kapenta is crumbs. We, the Bwanas (whites) take the catfish. I am the Bwana and you are the Muntu. I get what I want and you get what you deserve, crumbs.”[/pullquote]

“I have since moved to yet another group with similar intentions. In the next few months my colleagues and I will be in Lusaka to hypnotize the cobra. I work for the broker that has acquired a chunk of your debt. Your government owes not the World Bank, but us, millions of dollars. We’ll be in Lusaka to offer your president a couple of millions and fly back with a check twenty times greater.”

“No, you won’t,” I said. “King Cobra is incorruptible. He is …”

He was laughing. “Says who? Give me an African president, just one, who has not fallen for the carrot and stick.”

Quett Masire’s name popped up.

“Oh, him, well, we never got to him because he turned down the IMF and the World Bank. It was perhaps the smartest thing for him to do.”

At midnight we were airborne. The captain wished us a happy 2012 and urged us to watch the fireworks across Los Angeles.

“Isn’t that beautiful,” Walter said looking down.From my middle seat, I took a glance and nodded admirably.

“That’s a white man’s country,” he said. “We came here on Mayflower and turned Indian land into a paradise and now the most powerful nation on earth. We discovered the bulb, and built this aircraft to fly us to pleasure resorts like Lake Zambia.”

I grinned. “There is no Lake Zambia.”

He curled his lips into a smug smile. “That’s what we call your country. You guys are as stagnant as water in the lake. We come in with our large boats and fish your minerals and your wildlife and leave morsels—crumbs. That’s your staple food, crumbs. That corn-meal you eat, that’s crumbs, the small tilapia fish you call Kapenta is crumbs. We the Bwanas (whites) take the catfish. I am the Bwana and you are the Muntu. I get what I want and you get what you deserve, crumbs. That’s what lazy people get—Zambians, Africans, the entire Third World.”

The smile vanished from my face.

“I see you are getting pissed off,” Walter said and lowered his voice. “You are thinking this Bwana is a racist. That’s how most Zambians respond when I tell them the truth. They go ballistic. Okay. Let’s for a moment put our skin pigmentations, this black and white crap, aside. Tell me, my friend, what is the difference between you and me?”

“There’s no difference.”

“Absolutely none,” he exclaimed. “Scientists in the Human Genome Project have proved that. It took them thirteen years to determine the complete sequence of the three billion DNA subunits. After they were all done it was clear that 99.9 per cent of nucleotide bases were exactly the same in you and me. We are the same people. All white, Asian, Latino, and black people on this aircraft are the same.”

I gladly nodded.

“And yet I feel superior,” he smiled fatalistically. “Every white person on this plane feels superior to a black person. The white guy who picks up garbage, the homeless white trash on drugs, feels superior to you no matter his status or education. I can pick up a nincompoop from the New York streets, clean him up, and take him to Lusaka and you will all be crowding around him chanting muzungu, muzungu, and yet he’s a riffraff. Tell me why, my angry friend.”

“Wake up you all!” he exclaimed, attracting the attention of nearby passengers. “You should be busy lifting ideas, formulae, recipes, and diagrammes from American manufacturing factories and sending them to your own factories. All those research findings and dissertation papers you compile should be your country’s treasure. Why do you think the Asians are a force to reckon with? They stole our ideas and turned them into their own. Look at Japan, China, India, just look at them.”

File: Deplorable state of Konkola Copper Mine (KCM) roads despite huge profits gained from the sale of copper.This is a road leading to the mine area

In explaining the story of Tanzania’s natural resources and how the Britton Woods institutions forced us to accept a raw deal that will finally leave us with crumbs, I chose the conversation between the Zambian journalist and his companion, a white man.

Very soon, Tanzania will start producing natural gas and, if God wishes, in the next few years we shall have black gold or oil if you like. That’s why I feel obliged to remind my fellow Tanzanians, Africans and especially our leaders, about what IMF and the World Bank did for this country in the early 1990s during the rush for gold.

Hopefully, I will have enough time to narrate the current rush for natural gas and oil and how Tanzanians can avoid the previous mistakes done by the Benjamin Mkapa regime in the name of attracting foreign direct investments.

Behind the statistics

The World Bank and the International Monetary Fund measure economic prosperity by statistics, sometimes fabricated to justify their agendas or are ill-prepared. However, in reality, these statistics are misleading and contradict the actual situation on the ground.
For instance, a local English tabloid quoting statistics from the WB reported last month that gold was the number-one foreign exchange earner, having overtaken tourism.

This is because gold exports, buoyed by the surging price, grew to $2.2 billion by the end of last year, up from $1.48 billion earned in 2010. During 2011, according to a Bank of Tanzania report, gold accounted for 32 per cent of Tanzania’s $6.7 billion exports in 2011.

Now, these are shameful lies because, according to the available details, gold is mined and exported from Tanzania, but in reality the money earned by foreign companies doesn’t come back to this country. It’s therefore misleading to say that gold was the number-one foreign exchange earner for the Tanzanian economy while in reality that wasn’t the case.

African Barrack Gold operates only in Tanzania where it controls about 60 per cent of the lucrative gold industry, but its headquarters is in London while its financial hub is in Johannesburg.

Whatever earnings that ABG or Anglo Gold Ashanti get from their gold exports go to their foreign or offshore accounts. To the Tanzanian economy, what comes back is just a small chunk called operational cost.

I have always argued that if, for instance, $2.2 billion was returning to the local banking system, the impacts would have been felt and our currency would have been very strong. It’s therefore appalling to see the WB, IMF and sometimes even our central bank (BoT) shamelessly claiming that gold is now the number-one foreign exchange earner for Tanzania.

In theory these statistics are correct but, in reality, they are wishful thinking.

Though we are told by economists that statistics don’t lie in most cases they actually do. When we boast of being the third largest gold producer in Africa we are normally supported by statistics but, in reality, we are far from the truth.

The gold that makes us number three in Africa comes from Nyamongo, Geita, Kahama, Biharamulo and Nzega. Now do the living conditions in these areas reflect the statistics issued by the WB, IMF and BoT?[pullquote]This is the curse of statistics often cited by the WB, IMF and their local puppets to justify their failed economic theories in Africa.[/pullquote]

It’s the same old story of Ogoniland in Nigeria, the land of black gold famously known as oil, but which shelters the poorest people in Nigeria. It’s the same story of the Democratic Republic of Congo whose, we are told, total value of its minerals is equal to the combined gross domestic product (GDP) of the United States of America and Europe in a single year.

But, in reality, DRC is the poorest country in Africa, having seen more guns and soldiers than teachers and books or doctors. This is the curse of statistics often cited by the WB, IMF and their local puppets to justify their failed economic theories in Africa.

Nigeria is the third largest oil producer in Africa, but imports more oil than the countries which don’t have oil. If statistics don’t bring bread and butter to the table, or pay school fees for the poor, then there’s no growth.[pullquote]There’s no WB or IMF in the United Arab Emirates, but still the Arabs have managed to turn their desert land into a prosperous nation, thanks to the proper management of the oil billions[/pullquote].

For instance, Geita hosts Africa’s largest open-cut gold mine, but its schools and health centres reflect the opposite. It’s the same situation in all minerals-rich areas in Tanzania and elsewhere in Africa, except Johannesburg and Royal Bafokeng Province in South Africa.
What people don’t know is that there wasn’t any WB or IMF in these areas, let alone in South Africa, until the 1990s during the end of apartheid but, still, the people managed to use their resources, mainly minerals, to bring development.

Johannesburg is known as ‘Egoli’ or a place of gold, while Royal Bafokeng is called the Platinum Province. These are some of the very rare examples in Africa where proceeds from minerals have been used to build the local economy.

There’s no WB or IMF in the United Arab Emirates, but still the Arabs have managed to turn their desert land into a prosperous nation, thanks to the proper management of the oil billions.

Show me one country that was developed by the WB and IMF policies and I will tell you hundreds which have been devastated by their policies. When the World Bank and International Monetary Fund were pushing Tanzania into the controversial Mineral Policy, it wasn’t in the best interest of this country but in the best interests of the Britton Woods institutions.

For instance, the biggest lender of foreign mining companies which came to Tanzania was the International Finance Corporation, which is the lending arm of the World Bank. At the same time, the company that acted as insurer or guarantor of these companies was none other than the Multilateral Investments Guarantee Agency (MIGA), which is another branch of the WB.

In their article, ‘Why the Developing World Hates the World Bank’, Rayal Parekh and Oren Weinrib wrote, “The World Bank was created in July 1944 with the aim of creating a stable global economic system. It quickly became the dominant financial institution for lending to developing countries. It usually acts by making long-term loans to governments for projects such as dams or bridges, or to support economic reform programmes.

“The World Bank has 177 member countries, but the governing structure of the Bank is not democratic. The principle: one dollar, one vote. Therefore, China and India represents 39 percent of the world’s population but have only 5 percent of the total votes. Six countries — the United States, Canada, Japan, Germany, the United Kingdom and France — control about 45 per cent of the decision-making power. The Bank works under a veil of secrecy and is not required to reveal its internal documents.”

According to a research conducted by the Heinrich Böll Stiftung/Foundation (HBF), the World Bank and the International Monetary Fund have played significant roles in the general economic path taken by Tanzania since the 1980s and were central in developing the blueprint for the country’s mining sector and the financing of large-scale mining activities.

The World Bank (1989) emphasised the strategic importance of Foreign Direct Investment and repeated attention was drawn to FDI as a critical component of formal private sector capital. Foreign capital was portrayed as the bearer of innovation, technical know-how and market intelligence. Dropping restrictions on foreign investment was thus a key ingredient of ensuring an “enabling environment”.

Significantly, according to the research, the World Bank strategies were hostile to small-scale or artisanal mining. The Bank downplayed the latter’s contribution to the GDP and employment and instead argued that artisanal mining was responsible for problems of law and order, safety, environmental degradation and loss in potential government revenue.

If the WB was really advocating economic empowerment to the people in the Third World then it wouldn’t have blessed and orchestrated the dismantling of small-scale mining in Tanzania.

I was surprised when I learnt three years ago that the WB was planning to give millions of dollars to the government of Tanzania in order to support the development of the small-scale mining sector, which it had dismantled about eighteen years ago.

To justify their motive, the WB has always used statistics to defend its wrongdoings or failed policies in many countries, especially in Africa. That’s why today, in terms of statistics, large-scale mining seems to have benefited the country.

But beyond these statistics lies a shocking reality. The Kigoma North MP, Zitto Kabwe, who is also chairman of the Parliamentary Public Organisations Accounts Committee, said recently that the country’s mining sector growth rate had declined from 30 per cent in 2000 to 1.7 percent presently.

Speaking at a stakeholders’ forum, Kabwe, who also doubles as shadow Finance minister, blamed the trend on the lack of significant local investment, especially in exploration. He said the growth of the sector had for a long time depended largely on foreign direct investment (FDIs), and now the country was witnessing a sharp drop of sector growth from double digit in the mid 2000s to hardly 2 percent.

The growth we want now isn’t about how much has been invested in the sector, but rather how does it bring economic prosperity to the country as claimed by the World Bank and IMF in their strategic paper of 1994. Obviously, we expected the investment to decline after completion of the acquisition of all rich minerals areas because the investment had reached its peak by the end of 2008, especially in gold mining.
By the end of 2010, total investments in mining, especially gold, reached $5 billion, or 60 per cent of Tanzania’s annual budget of 2011. However, the impacts of this huge amount of money to the people of Tanzania, as claimed by the WB, remained minimal.

For instance, while foreign mining firms invested a total of $5 billion between 1997 and 2010, mineral exports between 2009 and 2011 reached $4.55 billion, whereby the government earned only $196 million in taxes and royalties.
To put things into perspective, the total value of mineral exports between 2000 and 2011 is twice the total investments in the mining sector, and the battle is still far from over.
Those defending this sector have tried endlessly to give me statistics about how the economy has benefited, the number of people employed, taxes paid and the amount of money injected into the community through corporate social responsibility. They have mentioned the total foreign direct investments that came to Tanzania through the mining industry as well as the surging exports of gold revenues earned during the past decade.

In return, I have always advised them to go beyond the statistics. I have always urged them to see a bigger picture beyond the statistics in order to understand the story behind the numbers.

Tanzanians are not interested in statistics. They want to see positive results in their lives. They want to see modern roads, schools, medical centres and many more built by mining revenues so that one day they would tell their grandchildren that ‘once upon a time there was gold, diamond and tanzanite, which built what you see here today.”
I have visited all the mines except tanzanite mines, and what I saw was a contradicting image. While within the mining premises I saw modern life enjoyed by local and foreign workers, just a few kilometers from each mine I was confronted by devastated faces struggling to earn bread in a land of plenty.

I have met internally displaced residents whose land was grabbed by large-scale miners, but were either not compensated or were paid peanuts under the Land Act. I have seen the struggling local small-scale miners who are usually treated like criminals by the large-scale miners.
But I am yet to see the prosperity promised by the pimps of globalization during their campaign to push Third World countries like Tanzania to open its borders for the scramble for its resources.

Source: GUARDIAN ON SUNDAY

91 COMMENTS

  1. The author should clearly say, that is his opinion. To be honest your theory is flawed beyond comprehension and says it all really by your trying to justify your titles and ‘award winning’ prior to the article itself
    Flawed Ideology coming from someone with a lot of egoistic, self centered journalist who unfortunately will have people here that nod in awe of a ‘fantastic article’

    Another article LT that has spoiled my breakfast, SAD

    Thanks

    • Mushota i am sure you will agree with the fact that much of our “education” is irrelevant to solving Zambia`s problems.With more educated people than on the day of indepedance one would think our country would be better.I say the proplem is misapplication of education(if at all exists a carriculum addressing current pressing problems the country is facing)I
      n inference the author is right in stating that our educated masses,you incluive,only look at self and not national development.Though self developmet may be a starting point to national development,it must be at a pace it can suite in the evironment or else it collapses.

    • I really concur with you, what does all these mean to local Zambian/ Tanzanian and all African?? does he/she proposed us African to build next somali or Azimio la Arusha (Arusha declaration) will those help us moving forward or back tracking us usual? I was eager to learn what was the way forward and not the old stories that I have been hearing for the past 35yrs?

  2. true that, look at Brazil as its considered to be in the same category as Zambia its flourishing without any IMF and world bank links, ditch world bank and lets concentrate on resource management within the country

  3. This article makes me sad and angry.I think what the white guy told field Ruwe on the plane is a sad reality.The analysis of the World banks economic policies in Tanzania are alsoeye opening.I think Africa has brains but the people with brains are not in politics…..so the dull leaders we have sign off our minerals to the savvy businessmen of the West.The bible says the borrower is a slave to the lender.Why can’t we take a leaf from this?Our own Dambisa Moyo says the same thing.There an urgent need for the educated in Africa to take up leadership positions in Africa or this trend will continue

  4. Interesting Sunday morning read. Same message DAMBISA MOYO sings in book “Dead Aid”.

    What really drives the gist of this text is the very real experience of South Korea who decided to break away from World Bank / IMF debt. Today in a reversal of roles they actually lend money and capital to these instututions.

    We need leadership that with the pathological willpower to break us free from the enslaving conditions of all these lenders. None in site, but perhaps by 2016 someone would have heeded the call, the ancient wisdom that the borrower is the slave of the lender and that it is better to teach a man to fish than give him one.

    We need to break away from the shameful culture of a donation being headline news. We should be taking cover behind sofas or the garden shrubs in shame.

    •  Don’t even start with Dambisa Moyo. She is just like any other business person out there. Dambisa Moyo has never lived what she has been preaching. 

  5. This is just upsetting. When is africa going to discard the york of dependancy on the WB/IMF. I can speak for Zambia, how many times have we been told to restructure our economy and reduce spending on social and public institutions, and what has been the result?

  6. If only we had as many Think Tanks ( forward looking ) as those Commissions Of Inquiry ( backward looking ) we could be moving somewhere. How sad nearly fifty years after independence we are so dependent and stuck.

  7. the issue of statistics is wel known.thats why some of us wl never appreciate the mmd of rb even beyond.for instance these chaps talk abt single digit inflation-has it made any sense to a poor zambian a big no!so called FDI oh $4bn has come thru,how many jobs ve bn created by this..only heaven knws.we need radical programes that wl have a fundamental bearing on the lives of an ordinarly zambian.take heed!

  8. Is this Deja vu? I have heard this story before here in Zambia. This is sadly, exactly what is also happening in our Motherland. What KK would call ‘exploitation of man by man’ 

  9. What is worrying is that the potential Zambian leaders of 2016, the generation who are the first children of Zambian political indepence (HH and Chipimo currently) do not have any aubidle policy agenda on debt management. With our copper and mineral resources and the Chinese lead high demand in these metals on the world market, we have the opportunity that comes once in a few generations to break free of IMF / World Bank debt.

    Once the Chinese bubble pops, copper prices will crash, so the day of opportunity is NOW. This is our present day KWACHA, NGWEE which our children will curse us for if we miss. The formula is simple:
    1.) Pay off ALL existing debt and criminalise further government borrowing
    2.) Diversify from dependence on copper
    3.) Reward professionalism not cadre-ism

    • Thumbs up.I have always said this is the opportune time when China is still hungry for our resources.If only we could clinch proper deals with China,we could move in right direction

    • We need a few rich Zambians that can call the shots in the background, that will be so influencial to the economic well being of the country that their voice will be heard and respected; that will have strong international and political connections to back them and harbour them from political persecution. Change the reins of economic dictatorship (which is what WB and IMF is) is what i am talking about here. Like the mafias of the early twentieth century in the west. That’s how they built their nations. Leaving it to the politicians to create an enabling environment that the diaspora would like before coming back to reinvest won’t work. Isn’t it amazing that a whole country can’t have a single real millionaire whose voice can influence the direction the country takes economically!

  10. #5 we need proper refined governance systems nt that we need only educated fellas.mutharika phd holder wat did u he do 4 malawi zero.we had & stl ve very educated ministers name them-magande only inflation(which we cant eat),situmbeko quite in critical donor meetings,sichinga stl campaigning and a whole lot of former unza dons wat have they done.. nothing!we need a better system otherwise the comedy,the corruption,the anguish of the poor zambians continues.take heed!

  11. Nice article. I agree with it enterely. I have been a victim of structural adjustiment programme by IMF in the late 90s. The IMF & WB will continue making us perpetual beggars due to poverty to justify their cause! African leaders need to wake up from their slumber if they are to record any development!!

  12. Thats why Isay say never trust a white man. never get mewrong, im not a racist but a white man is not to be trusted

    • We should also break out of the mentality of blaming someone else. Take responsibilty. IMF and World Bank are only here because they see a loop-hole in our mentality that worships and feels inferior to lighter skinned people be that Chinese, Caucasian or Jaribo monsters.

      TAKE RESPONSIBILITY BRO. Don’t blame anyone else for your poverty.

  13. In abundance of water, a fool is thirsty..! The solution is simple. Lets dig our copper and use it. In short lets make use of our engineers instead of just talk talk.

  14. Most whites are racists but I admire them because they are smarter than us whether we are educated with chains of degrees.

  15. If you are educated but you cant use your education for the benefit of human kind but just as a means of finding employment, then you are useless.

  16. “Confessions of an Economic Hit Man”

    John Perkins has audibly told developing nations for years now so has brother man Field Ruwe in his most resourceful intelligent articles in recent months. What more Africa needs to know? 

  17. This is emotional crap. Just concetrate on your own African problems. Let us take the example of Zambia: How can you expect to develop if you are voting in a government like this of Michael Sata???? Since he came into power he has not announced any strategy or vision he has for the country. It is not good enough to say we are fighting corruption, a government is voted into power primarily to grow the economy. When you give a farmland to a new farmer, the reason you have done that is not just for the new farmer to clear the land – the new farmer must also grow crops. Blaming the World Bank and IMF is stupid and cheap. There is hundreds of African technocrats who work at these institutions, there is no data being manufactured. Why don’t you do your own research then?

  18. Until we collectively pursue sustainability, independence, and equality the future for our grandchildren and their children is on the line for abyss of perpetual poverty and doom. Intelligent people with an intelligent Generational leadership can unite in our desire to create a socially and environmentally responsible economy and rid ourselves of the viral form of predatory  prescriptions. 

  19. Good afternoon

    A long article but it is worth reading because it opens our eyes to a lot of truths about what these institutions are all about.

    It has always been clear to me that the IMF & World Bank are nothing but instruments of the Western Capitalism System, which operates by continually oppressing poor nations and keeping Africa within their sphere of economic influence.

    We Africans only have two options: either to organise ourselves properly and unite to fight against this new Imperialism or to do nothing and remain in this miserable condition we have been forced into as the wretched people of Planet Earth.

  20. At least I have known this for the past 30 years. My small library is thick with literature critical of the operations of the Bretton Woods institutions as fronts of the Washington Consensus. It is true that any third world leader who comes in contact with the Bank and the Fund is immediately contaminated with greed and the aura of the green buck. We in civil society have for a long time now been calling for the abolition of the two institutions. They cannot be reformed!

  21. This is absolute rubbish. If this chap has guts then he would have exposed the IMF and world bank properly. The only thing I agree with in this article is that yes we need to steel ideas and start developing this country ourselves. We do not need to wait for funding from government to build a road or sort out clean drinking water for everyone. This Muzungu may think he is chewing all the cat fish in Lake Zambia, well we have news for you. We are also busy looking for smart ways to take that T-borne steak back home from Lake Europe and that other big lake in America.

  22. UNZA has failed us. It produces economists who wallow in false policies on how to develop Zambia, and our civil service, especially in our finance ministry is full of washed out brains. They are gullible and love worshipping delegates from the IMF/WB.

    One only has to read on how Iran has developed itself regardless of its sanctions. We have Copper and other minerals but are too shitty scared to rejuvenate ZCCM to take charge of mining our own mines so that we can earn decent revenues on our own instead of waiting to tax and spend if at all given money by the foreign companies in mining. we have no leadership that cad seriously reverse our decline as a nation due to our servitude attitude and imbecility at all levels.

  23. do economics and u il understand how the manipulate and still from u.when u get a loan ,u pay million times what u got.abash world bank and imf.africa is the richest continent in natural resources.at the moment all these super power countries their eyes/hope is in africa.britain does not ve any minerals,natural resources but loook how it is.africans wake up and use  your heads.vote for great mind presidents who is free from corruption

  24. Probably u should ask ur self why Ireland and Greece never wanted a helping hand from the world bank and IMF, am not an economist but I had more questions than answers has to why. By the way I Stumbled on this article a few months ago, I was angered like any sane person would. I recommend u read book by John pilger titled the “Hidden Agender”. Work a up my people.

  25. China is a big threat to these chaps. It would not surprise me if this is just another technique to destabilise our continent because of fear of China’s none compromise approach to develop this continent in exchange of our raw materials. The western world prefer to give us aid than partner with us to develop. A strong and united Africa would threaten western civilisation and that’s why these chaps have hidden agendas to kill off any signs of self reliance.

  26. its a lesson to all u zedians in the diaspora, high time to open u ears, eyes and to change your ways of thinking, sad reality indeed

  27. a question we should ask ourselves is are these non-governmental(charity) organisations or profitable organisation.???if u can answer and define the terms in philosophical way n their deep meaning,u il find the answer to your xomplaint.not a bad idea for world bank and IMF.its up to those who are riped to open up their eyes and use their head.an economist his/herMAIN aim is to make profit.they say if u cant beat them ,then join them.i think finger pointing is not cool if u are not acting.blame not your friend,look also on your side.

  28. Hey, wake up. this article is very tauching. the bigest problem we are facing today is the brain drain. People who are supposed to help with the planing of the economy are been offered jobs by the same culprits and made to belive we are in the right direction. Please lets transform our education into developing our own economies.

  29. Botswana refused to take IMF conditions and they are still ok. Botswana has a 50% stake in the diamonds mined in that country and they have succeesfully convinced the world that diamond sorting can be done in that country. I first visited that country in 2001 but when i was there last year i was suprised at the imposing western type of buildings mushrooming along the road from the airport, those buildings i was told are mostly for diamond sorting and the like. Its a miracle that big firms in europe, america and asia are now setting up in Botswana. Really, were have we gone wrong in Zambia and other countries?

  30. #18 budweiser, the way forward is to elect bold, patriotic African leaders who are able to organise and unite their continent and stand their ground against the oppressive system of the West.
    One such leader was Gaddafi. He may have been a dictator but he fought for the rights of the African continent against Western imperialism. For instance, he was planning to establish a unified Gold Dinar currency across the African Union which would be measured directly in terms of gold. Considering the large gold reserves in Libya and across Africa, such a move would have brought an end to Western capitalist imperialism in Africa, paving a better future for the continent but in turn disrupting the dollar-dominated world economy which the IMF and World Bank thrive on.

  31. contd.

    This is the main reason why the Western world wanted Gaddafi out. He gave the third world hope for an alternative solution, where they didn’t need to follow the Western capitalist model and become victims of extortionate loans from the World Bank or IMF, but can become self-dependent and have their own continental system that benefits the poor majority rather than the rich minority. This is something that the World Bank, IMF, or NATO, clearly did not want so that they can continue exploiting Africa and the Middle East. This was obviously enough reason to take out Gaddafi, while backing up their action with propaganda to justify it like they have done in other similar cases.

  32. When physical slavery ended, capital slavery replaced it. It isd now time to start freeing ourselves from capital slavery. We need new brains in govt and not the recycled ones. we need educated brains to formulate stratergies and stick by them. we need a fresh start…….

  33. we tried in the 80s under Kaunda to go with the imf and look what happened to our road network and zccm!! they crumbled due to lack of investment

  34. We tried under Kaunda to do away with the imf and what happened? our road network crumbled and zccm stagnated due to a lack of investment

  35. whew! that is a lot to read! Until we can reach a stage when we can say to donors “go to hell”, we will never be independent, and we will never earn their respect.
    I’m not saying we should be Zimbabwe, but we should be like South Africa.

  36. If we had no intellectual property they would not have tried so hard to own and ‘reinvent’ it:) The theft and improvement of ideas was always an area of expertise for the west and ‘Walter’ was economical with the truth on this point. IP is still being sidelined in Zambia and the new constitution had better do far more than the draft. Teach IP in schools. Zambians tend to frown on creativity, ideas and ignore invention, innovation and protection of traditional knowledge, copyright etc. and do not make the most of patents and trademarks. Coming home to do my part in this arena before we lose out as a nation. Protect. Protect. Protect. For our national good. With comments such as todays I am hopeful it will not be a lost cause as IP is central to the tasks at hand.

  37. There is nothing racist about the conversation that Field Ruwe had with a white colleague on the plane. It was a candid discussion pregnant with facts.  One point of correction is that there is one country in Africa that never borrowed from IMF or WB and the country has reserves amounting up to US$100 billion and that country is the Islamic republic of Libya.Zambia has one basic problem – dull political leaders who lack exposure and think they know it all. When the western world is investing in synthetic biology, Sata went to India to negotiate for tractor companies to invest in Zambia. China and India are where they are because their governments respect professionals. Israel has a population of 5 million people yet they have the highest number of patents per capita.

  38. Mushota as my words of wisdom to people like you are “you are the reason why Africa has trailed behind”, as such we don’t need people like you. Please stay in the U.K forever. With respect to the article, very true. Africa’s routine dependence on others has led to lack of development. A simple example: we sell raw copper to china but we buy copper wiring from china or countries that china sells it to. What sense is that? Here we have a PRESIDENT WHO THINK HE IS DOING ZAMBIA GOOD BY GOING TO WOO INDIAN INVESTORS BUT CAN DONATE $10,000 AND $5M LITRES OF FUEL ALLOW UNNECESSARY BY ELECTIONS (INDEPENDENT THAT JOINED PF) AND SETUP UNNECESSARY COMMISSION OF INQUIRY HE LATER CALLS RUBBISH. WHEN ARE WE GOING TO START INVESTING IN OUR COUNTRY FOR OURSELVES, MR.SATA?

  39. LASTLY, THE AUTHOR IS TELLING THE TRUTH THE IMF/WORLD BANK ARE NO GOOD TO AFRICA NOR ARE THE CHINESE. THE GOOD TO AFRICA ARE AFRICANS AND WE NEED TO EMPOWER OUR PEOPLE AND TAKE COMPLETE CONTROL. WHAT THESE FOREIGNERS ARE DOING, CAN WE NOT DO? AS THE WHITE MAN SAID THERE IS NO DIFFERENCE BETWEEN ME, HIM OR A CHINESE BUT RATHER 

  40. we lack patrotism,professionals rush for green pastures overseas and we forget that we are the ones to contribute to the development of our mother zed.secondly ,frustration,professionals may stick around but if your boss is a standard nine he still wants you to implement the standard nine formula so that he can understand it because he can not comprehend the BEYOND THE BOOK FORMULAS OR VISUALISE the future by using the indepedent system.same applies to the current debate on the constitution were many pipo have asked to look at the model of other countries s constitution but why not create our own unique constitution.even the UNZA elite most of them are book worms lacking the practical approach.to be honest we need a leader who has WISDOM who can assemble a formdeble team ,both.pro &progmt

  41. THAT brings me back to question the motive of GLOBALIZATION,to exploit AFRICA and ALL the developing world out of its rich resourses to benefit the western societies.NOW we may question or blame on our presidents,ourselves,our type of education system,the educated africans in the diaspora ,.BUT there a the big question we are missing here.!! and this is the UNITY OF PURPOSE AS AFRICA AS A WHOLE. If we look at the western countries for exammple USA,EUROPE ,these are large institutions which have organised themselves in strategically interms of their GEO-POLITICAL and ECONOMICAL spheres,to bring down any sort of opposition to their GLOBAL agenda.NOW to fight such fierce economic and political war,AFRICA needs to UNITE a continental front just like CHINA ,BRAZIL,RUSSIA,and INDIA.lets unite

  42. Interesting. I dont think our African governments are ready to develop our countries taking Zambia for instance, i have tried personally to have foreign companies wanting to buy Zambian products- mining and other products made in Zambia such as bottled water etc. I tried doing this with the current Minister of commerce Bob Schinga, also with ZDA they dont seem to want to make things work. I have customers with big money and want long term business and also others who want to invest in Zambia to build as well as return most of profits to Zambia. However, apart from government, the ordinary Zambians working in marketing and different departments of various Zambian companies, say they dont like dealing with foreign companies. How can we develop with such a mentality? 

  43. An Excerpt from Confession of an Economic Hit man by John Perkos

    “These demands became especially urgent after September 11, 2001, when Washington feared
    that Middle Eastern supplies might cease. On top of that, Venezuela, our third-largest oil supplier,
    had recently elected a populist president, Hugo Chavez, who took a strong stand against what
    he referred to as U.S. imperialism; he threatened to cut off oil sales to the United States. The
    EHMs had failed in Iraq and Venezuela, but we had succeeded in Ecuador; now we would milk it
    for all it is worth.
    Ecuador is typical of countries around the world that EHMs have brought into the economicpolitical
    fold. “

  44. LETS brings back the JULIUS NYERERE’S “PAN AFRICANISM” AND GADDAFFI’S AFRICA COMMAND THAT OF HAVING A FEDERAL AFRICAN GOVT WITH POWERFUL BANKING INSTITUTIONS THAT SHALL HELP developing AFRICA.Currently we are hugely divided as a continent and that makes us very vulnerable to the western imperalialists as TOOLS TO BE EXPLOITED.SO, lets FORM UP JUST AS CHINA,BRAZIL,RUSSIA, has done.Even EUROPE they are so busy to solidify themselves as EUROPEAN UNION,just see how they got so busy bailing out the economic failing GREECE.They did that to solidify their GEO-POLITICAL AND ECONOMIC shere on the GLOBAL SCALE,struggling for supremacy which AFRICA Ought to be doing to find itself a place on the GLOBAL SCALE.Otherwise we will still remain down trodden if we wont UNITE!! LETS HAVE ONE AFRICA.

  45. “For every $100 of crude taken out of the Ecuadorian rain forests, the oil companies
    receive $75. Of the remaining S25, three-quarters must go to paying off the foreign debt. Most of
    the remainder covers military and other gov-ernment expenses — which leaves about $2.50 for
    health, education, and programs aimed at helping the poor.9 Thus, out of every $100 worth of oil
    torn from the Amazon, less than $3 goes to the people who need the money most, those whose
    lives have been so adversely impacted by the dams, the drilling, and the pipelines, and who are
    dying from lack of edible food and potable water.”

  46. Trigo I have had a similar experience.I tried setting up a programme that was going to benefit Students at UNZA.There was so much bureaucracy and lack of commitment that it failed to take off.I took the project to a South African university.Zambians need to change their mentality.The poverty mentality just has to go or else we will continue being ripped off by the West and now China

  47. @Trigo – Looking at history it was often individuals and small groupings that innovated and led new practices which are later credited to national psyche. For example the majority of people have never physically invented anything but credit can sometimes be taken by a country or continent. My point is don’t give up and look at other ways to achieve the same goal that does not depend on the mindset of another. They will come around once it works. Unfortunately seeing is believing is the mindset of non creatives and is an acceptable reality check but a pain in the a** for the one with an idea :)

  48. It’s all ILLUMINATI to me… You leaders can’t do jack about it… if they try sanctions are imposed or they are just JFKd if they get out of hand…. what are you doing about?

  49. I dined with Luke Mwananshiku, Willa Mungomba, Dr Siteke Mwale, and many other highly intelligent Zambians
    ……………..
    what saddens me is that Zambian Leaders have opted to receive envelopes and forget about the national development. That is why even simple a company as little as Lap green can openly reap zambians while your are watching. Honestly Renumerate professionals and demand focused ideas and results, give it 10 years zambia will be a different story. Those of us in the Diaspora still acquiring knowledge and those working but not home, they will tell you that Home is home, the solution is Invest in Research and education. make use of your research instutitute to develop formulations to aid in manufacturing rather than Importing even tomatoes source !!

  50. According to Field Luwe’s companion, they were to come and hypnotize the Cobra!! Have they already come? Look at the sudden back down from the much talked about windfall tax. Further, MC talked much against the Chinese while in opposition, but alas! They were the first race on earth to be hosted at state house immediately he ascended to power. What has changed so suddenly? Zambia which way???

  51. When I first read the article in an email from a friend I didn’t believe anyone would have the guts to tell anyone such explicits, I figured it was just a story that someone thought up…..after reading Capitalist Nigger or something. I would love to hear it from the horse’s mouth, Mr field Ruwe himself to be totally convinced the conversation actually took place. What I can’t deny though are the harsh realities of the content. And the truth is everywhere I have been if blacks are in majority, in total control, it reeks of poverty, dirty and anything short of the best. We are a people that are easily content with what we have; a people that learns to live with a problem instead of solving it. We need to put our heads together and do something. enough of this SHIT…excuse the language.

  52. I agree with scooby doo above, nobody is forcing us to betray ourselves and our own people. An african has a problem making basic decisions to beneffit his own family, regardless of education he may hold. So you have all these people with PHDs whose children are just useless, what do you expect them to do for a whole nation? Its the reason i always say the british colonised stupid nations. Never doubt the individual cognitive abilities of the nigga ( I went to nza and i know How fast they absorb information and understund it) but just watch what this african does with his education, its mediocre.

  53. This article I fine without the references it Field Ruwe and his ‘conversation’.

    The fact is that it has been clear for at least a decade that IMF policy prescriptions do not develop countries. They are a tool for globalisation, to create an economic New World Order.

    They open up people’s economy for foreign exploitation, and that exploitation occurs by fewer and fewer corporations, until there is only one corporation, one banking family left.

    That is the purpose of neoliberal economics – deregulation, privatisation and free trade. Through privatisation, they destroy the economic power of the state. Through free trade, they destroy local entrepreneurs and farmers.

  54. And through deregulation, they destroy the middle class and small-medium size companies for the benefit of fewer and fewer transnational corporations, and make the financial sector all powerful, until there is only one banking family left.

  55. lets unite as southern AFRICA and form one southern african country and the ecowas in west african form the western african country .similarly the east ,north should follow suit before we can finally unite and form UNITED STATES OF AFRICA with the federal govt and states being governed by governers.The west are using the divide and rule strategy to fully exploit AFRICA of its vast rich resources.WAKE UP AFRICA or else this will ALWAYS AND SHALL BE THE SCRAMBBLE FOR AFRICA PART 2. LETS UNITE AFRICA AND FORGET ABOUT BOADERS. FOR US TO HAVE A BIG VOICE ON THE WORLD GLOBAL SCALE!!! LETS STOP THE BLAME GAME BUT PUT FORWARD IDEAS OTHERWISE WE ARE COLLECTIVELY AS AFRICANS TO BLAME FOR THIS MASSIVE EXPLOITATION BY THE WEST. UNITY,UNITY,UNITY IS THE WAY TO FIGHT GLOBAL ECONOMIC INJUSTICE!!

  56. Dumbisa now sits on barrick board. And what will they be looking for in africa pr zambia? Mineral resources and faten the bottom line. I say the educated Zambians have betrayed us. I compare them to judas iscariot. Guy Scott made a great point today, buy Zambian but because we want to be classy we import and in the end we complain about having no jobs.most Zambians like to complain but never find a solution. Regarding IMF and world bank , even a gra two can understand that, they loan you money and they are in the business of giving loans. They operate just like any other institutions and want growth.

  57. This is scramble part two for sure. I wonder why the world bank or IMF tell countries what to do. Who the hell would come and tell you how to run your home. Zambia like many other African countries are so wealthy beyond what an average person thinks. But we continue to listen to he statistics of gdp and alike, fabricated numbers. one of he many problems i found in africa is the inability of our bothers and sisters to get exposed and learn the value of the US dollar. If we found a way to get people exposed to knowing the value of things, resources, money, jobs, skills we would have solved half he problem.

  58. LADIES and gentlemen,i have started the revolution of first circulating this article to PROVOKE MY FELLOW COUNTRYMEN and AFRICANS. Secondly i will start to lobby from all well meaning africans to support OUR FELLOW WOMAN NIGERIAN “NGOZI IWELA” FOR THE POST OF PRESIDENT OF WORLD BANK where she is one of the shortlisted canditate for the post, WHERE the AMERICANS are also trying by all means to put their own man for the post. LETS support “ngozi iwela” who will spearhead the AFRICAN DEVELOPMENTAL AGENDA at least.

  59. Gud it came from muzungu to stear u up!whites,includg Gates r rushg to zed while blaks r flokg to Britain n their salaries is de change got frm their land n they call it “greena pastures.”Once mushota get a street white guy for a boyfrnd,she evn foget about home!

    • @Mama Africa – I can only speak for myself. I came to sit in the UK in order to own my intellectual property. Zambia was still following British 1911 law under which mineral, pharmaceutical and mining rights were mixed in the same statute. I was not protected by the Berne convention and my intellectual property was being spread across the globe. It was a hard decision but one I came to after a WIPO representative was flown in from Saitzerland and there was a meeting with the then Chief Justice and all the main stake holders. The ignorance was high but it was actually diplomatic advice from several embassies that encouraged me to protect my creations. IP governed my life from late teens and I studied it thoroughly and planned for how to give back to Zed. 

  60. Correction Switzerland. 

    The inferiority complexes evident by the fact so many appear to view this article as completely new fodder to chew on whilst everyday they fight over almost everything and today all stand in reverent agreement coz a guy called Walter sat with someone willing to listen to him crap from a very high height in a way while saying what is already debated on media and suddenly it sticks :) It is no coincidence the European inventions suddenly soared after greater and closer contacts with other communities and it took hundreds of years of giving themselves an unfair advantage for them to. give do called independence whilst never giving economic independence. Civics books read Zambia 51% Anglo American 49% and we took it…

  61. So the irony is I own what my own country did not think was important for me to own. It made me want to build a national archive, create learning aids to spread the importance of IP and provide scholarships to train a small team to handle what our government could be doing to assist people and Zambian owned companies as well as an online global team of creative industry specialists to help rebrand Zed. In conclusion it is hard to live abroad when your heart cries for home but it has helped me see that we are sold as a kid with fly on face for a reason. Change that perception and the journey begins.

  62. The above posts are for number 68 as a complete answer but read 68.1 if it is out of context. God bless Zed.

  63. WELCOME TO THE NEW WORLD ORDER, IMF/WORLD BANK, UNESCO. I always say it these organizations don’t care about Africa, infact they don’t even want you alive. They will go to great lengths to break you and get rid of you. But we Zambians are so shallow at times that we don’t look at the bigger picture. These guys have been plotting for decades, this is nothing new. As soon as Kaunda came in power they started plotting, they knew that copper was Zambia’s backbone, and we all know hat happened to the copper market in the early 70’s. It was a inside Job and they succeeded. Sheep in wolves skin, the IMF came to Zambia’s ‘rescue’ offered them money. Now the debt is huge that we have no say.They broke Zambia’s back and we are still paying for it.

  64. Zambians with very short memories!!!! WHAT WAS THE VERY FIRST THING THAT OUR CURRENT MOF UTTERED???? His words were “WE NEED TO START BORROWING VERY FAST!!!!!!”
    So all the mumblings above won’t make a dent in our current Gov FINANCIAL POLICY, till our DINOSAUR ECONOMIST FROM 1970’s or is it 1960’s goes for a refresher course! Rather, gets rid of all his textbooks from that era!!!

  65. Field Ruwe’s article, would best be described as “journalistic license”, for I find it improbable that this day & age, & IN THE USA of all places, someone would casually address someone in the manner the article narrated. Ruwe was just trying to bring a few facts home – IN A BREATH TAKING WAY!! If Ruwe was indeed addressed as he narrates, HE WOULD HAVE TO BE NUTS NOT TO SUE the fictitious “Walter”, for BLATANT RACIST ABUSE! It would be one way of getting back what is due to him from “Lake Zambia!!” 

    Ruwe succinctly PUTS IT IN OUR FACE, to obtain the punch that delivers that “guttural” scream from within us, to wake us up, to face reality & do something about it!!

  66. true article ,but don’t forget the curse of
    black muntu , We can’t manage anything 
    we have , we mismanage, IMF is nothing
    but a monitor ,breaking away from IMF is
    disaster,like Malawi. when we haven’t learned
    how to manage what God gave us

  67. 73 kamwendo,

    ” WHAT WAS THE VERY FIRST THING THAT OUR CURRENT MOF UTTERED???? His words were “WE NEED TO START BORROWING VERY FAST!!!!!!” ”

    The ideology of borrowing and getting into debt is based on neoliberal economics.

    The hidden agenda of neoliberalism it is an ideological front for the ultimate beneficiaries of globalisation, who are the trillionair banking dynasties.

    That is why neoliberal economics has never developed a single country. At the same time, it accumulates wealth for the shareholders of Anglo-American De Beers, Rio Tinto, Chevron, Shell Oil…

  68. Heya i’m for the first time here. I came across this board and I in finding It really helpful & it helped me out much. I hope to present one thing back and help others such as you aided me.

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