News & Analysis
Watch Out, Africa ... The World Bank Has a 'Plan'
World Bank: Governance Key to Africa Growth ... The challenge of governance and leadership in Africa is "particularly acute" and had undermined the continent's improved economic performance over the past decade, the World Bank said Thursday. Tackling this issue was the foundation for the World Bank's new strategy plan for sub-Saharan Africa, aimed at increasing the competitiveness and strength of its economies, and making them more attractive to investment. – Wall Street Journal
Dominant Social Theme: Africa needs the help of wise institutions like the World Bank.
Free-Market Analysis: It is truly astonishing that in the 21st century the World Bank – which has inflicted ruin on nation-states across the globe – can confidently propose a pan-continental plan (see excerpt above) for one of the world's largest and most diverse regions without receiving even a modicum of pushback. Perhaps it is merely the predictability with which the World Bank approaches its destructive mandate that reduces debate.
In any event, the current strategy that the World Bank is proposing for Africa is in keeping with the larger economic illiteracy that informs Western world-spanning institutions generally. The World Bank is an agent of the Anglo-American power elite. Its real job is one of neo-colonialism. It propagates Anglo-American power by supporting "governance" – the various appurtenances of developing nation-states that are supposed to ensure that "investments" are implemented in the intended manner.
Actually, the creation of governance is intended to advance the way the Anglosphere keeps control of the developing world. Western powers-that-be operate via mercantilism; by pulling the levers of government behind the scenes. Without government there are no levers and thus no availability of control mechanisms. It is the World Bank's job, among others, to encourage Western-style regulatory democracy in developing countries to ensure that the West maintains its dominance. This approach, however, is dressed up in fancy language and the implementation of "plans" and "strategies." This article is a very good example of this sort of double-speak.
The Journal begins the article with Obiageli Ezekwesili, the World Bank's Vice President for Africa who was speaking to reporters "at the launch of the World Bank's new 10-year strategy for the world's poorest continent, which grew by an average of 5% over the past decade." Her quote: "All of the better performance over the period of a decade has not been sufficient to tackle deep development problems that challenge the continent." So what is needed? More government and ... more money. "The strategy will be financed by half of a $49 billion package agreed in December by the International Development Association, the World Bank's lending arm for poor countries."
We learn that two-thirds of the 30 countries classified as "fragile and conflict affected" are to be found in Africa. And what is the underlying problem? According to the Journal, "The Bank says this is worsened by the fact that public-sector capacity in those countries is exceptionally weak. A clear message from our consultations for this strategy ... was that governance and leadership were the most important factors driving Africa's future development," the World Bank said in its strategy report.
So the problem with Africa, in addition to a lack of money, is that it does not have enough government. (And you thought government in Africa was the PROBLEM, silly you!) The report does have the grace to point out that "regulation of labor and land often constrained business and undermined competitiveness," and that "Labor rules are seen by many as one of the biggest impediments to investment in South Africa, the continent's biggest economy."
An even bigger problem is a lack of infrastructure according to the World Bank. "Everything we do to address Africa's infrastructure will help to enable its competitiveness," Ms. Ezekwesili is reported as saying. "Businesses want to set up here with the hurdles to their activities eliminated as much as possible."
The article concludes with the vague threat that The World Bank "would intervene through partnerships, knowledge and technical assistance as well as support expertise and financing." Strangely, the Journal points out that, "The Bank didn't address any of the shortcomings of its previous strategy, the Africa Action Plan." This is probably because the previous plan didn't work. Nor will this plan work.
What will work, if we read all this correctly, is that Africa is going to be targeted for the world's next big monetary inflation. That's the reason for the World Bank's involvement now. Africa is to become, in our estimation, the world's next China. This has two advantages for the power elite. First, it creates an entity that can purchase yet more sovereign debt from the West – yet another buyer of last resort, a function that Japan once served and China as well.
Second, and just as important, the inflationary magic of central banking tends to blow up economies rather quickly, which gives the elite the ability to point to its ruinous system as a miraculous alleviator of poverty. What is not explained of course is that just as printing money-from-nothing can inflate an economy rather quickly, the after-effects are sour indeed. Argentina, Japan and now the US (with China to come) are left raped and helpless following such inflationary episodes, which may last as much as two decades, or even longer.
Inevitably, the economic imbalances that are left behind include massive unemployment, industries that have no outlet (or even purpose) and a ruinous decline in overall prosperity, equity and individual portfolios. The wealth of the nation is revealed as nothing more than monetary inflation and the wealth of individuals and families is suddenly drained away with the overall economic collapse. All this is, perhaps, in Africa's future.
It is fascinating to see what is planned. Already Africa suffers from a plague not just of national central banks but regional ones that administer currencies over as many as 6-8 countries. As we have pointed out in the past, the framework has been laid as well for an "African Union" and a full-on "African central bank." The arrogance of Western elites in this regard is staggering. The continent-building is barely disguised, nor is the contempt. Africa is to be broken open with the nutcracker of international finance. Monetary colonialism will take the place of the 18th century kind. The result will shatter even more lives than before.
Conclusion: Africa does not need more or better "governance." The idea that free-markets can only be built by better government is ludicrous. The only positives that we can see in regard to all this is that Africa may never experience the full force of what the World Bank and its Western elites have in mind. The way things are going, the world economy may collapse before the World Bank is able to implement its governmental and economic reconfigurations. In such a case, Africa might have the ability to go its own way. The pathologies that the West has already inflicted on that bleeding continent might be mitigated over time. As it stands now, the upcoming cure will be, eventually, far worse than the disease.
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Posted by Magda Van Der Walt on 03/07/11 06:31 AM
My dear, South Africa has already begun the taste of this!! Exactly as you describe it!!
Reply from The Daily Bell
Sorry to hear.
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Posted by Cat Writer on 03/05/11 06:11 PM
Does anyone here have any idea as to who is backing Robert Mugabe in Zimbabwe and why?
If any leader needs to be taken out, it is he.
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Posted by Clark on 03/05/11 03:17 AM
Usually I read The Daily Bell comments, this time I didn't. I just wanted a place to vent this time, where People could relate.
The world has gone stark raving mad. The End.
But, it doesn't end/.
Are the only things that are keeping things going the pretty girls, lust, and avarice? Or is it the hyenas/Kenites last chance?
The more I know, the more I don't,... who am I foolin'? I halfway get it, the jig is up, Biblical prophecy is playing out before our eyes and the old dudes who were born before 1948 are they key, they ain't passing until the process plays out. That's the game template, ignore it at your own peril.
The coolest thing about it, you get to decide. Pick a side and hope you're good enough to be a player.
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Posted by Vauung on 03/04/11 06:50 PM
Better be careful with those politically incorrect facts memehunter, you're in danger of being 'condescending'.
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Posted by Alexsemen on 03/04/11 04:58 PM
mr. Vauung is speking as he's master voice Mao the Big of the Big.
DB has you not noticed that mr. Vauung is not one person. He is they, a lot of Han new capitalist after Mao experiment.
If it was possible anything would be possible even the Maoist capitalism. Would you like a better nightmerry !?
There is non, nada, niets, nix, rien .... as the army of Vauung. The China system is perfect . Please ignore "him"don't let him to spread the Chinese supremacy propaganda.
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Posted by Memehunter on 03/04/11 04:25 PM
@DB:
I'm guessing from your discussion with Vauung that you are probably not too much into human biodiversity (HBD). This may be a somewhat controversial topic, but DB surely can't ignore the substantial amount of research that has been done in that area. So I would have to agree with Vauung that 'culture (or perhaps biology) matters'.
Click to view link
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Posted by Painted Outta Corner on 03/04/11 01:52 PM
@ ol' Grey Ghost..
Shocker of a link,-tho' we are foolish to think they are 'being altruistic' (to the people they are innoculating /jabbing) .
The real agenda cloaked by their legal helpers.
Seriously Evil ,-are the so called 'good-club'.
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Posted by Dave on 03/04/11 01:46 PM
Ol' Grey,
The intention has been clear. It's amazing how comfortable they are speaking of it.
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Posted by Ol' Grey Ghost on 03/04/11 12:38 PM
@ Dave and other interested parties,
Click to view link
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Posted by Dave on 03/04/11 12:21 PM
"through mandated sterilization"
Already happening through innoculations. Aids did a wonderful job too as it spread through their voluntary military, and back to their villages. Brothels were set up for the soldiers on R&R. Could the condoms that were distributed in the plain green wrapper have been laced with aids? Who knows what else?
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Posted by Ol' Grey Ghost on 03/04/11 12:08 PM
"So the problem with Africa, in addition to a lack of money, is that it does not have enough government. (And you thought government in Africa was the PROBLEM, silly you!)"
Silly me, I thought government was the cause of most of the problems in the West. Now they intend to export it to Africa.
The poor people of Africa want stable electricity, smooth highways, automobiles to drive on those highways, and some of the other technological wonders of the Western world.
The Greenzi's (green plus Nazi) of the West want Africa to develop all this with Green technology, which as most of us understand here, means sub-standard technology, if there is any at all. Of course they need more government to control them so they don't obtain this through the old-fashioned route of the free-market, right?
One does have to wonder if there isn't an element of eugenic methods to their madness. Watch for some suggestions of voluntary population control through mandated sterilization...
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Posted by Dave on 03/04/11 12:05 PM
The draw into China is cheap labor. After a protracted period of beatings and starvation under communism, regulatory democracy is a godsend.
Africa is different, but the PE have an interest in the vast mineral and oil resources, not to mention diamonds. Labor is less important and the African people are less inclined to submit. Here, genocide, civil war, and the spread of disease better fits the bill.
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Posted by Ira on 03/04/11 11:46 AM
This is rather strange; the article so far as I understand is a critique or analysis of what may come as a result of the world bank continued involvement with Africa.
Yet, there are folks in the US who no matter what goes on are fixated on blaming Obama for anything. I can understand not agreeing with a political party for whatever reason, but what I don't get is the open vitriol against the man.
He is responsible for the collapse of the "American Dream"? He did all this in two years? And the citizenry consumer driven mentality of "wanting" has nothing to do with it? How about previous administration that hoodwinked us here in Britain to join them in a foolish war? Well,...
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Posted by Victor Barney on 03/04/11 11:21 AM
Africa? If one believes the 60's terrorist Chicago Weatherman Bill Ayers, it should help Africa work much better together to help give President Obama much more power through the U.N., especially after the Anglo-Saxon men gets the blame for this coming manufactured Marxist-led economic collapse! Watch! p.s., You should have seen what I saw at the laundry mat today when "they" had to raise cloth dryer prices to stay in business! And, this is only the beginning of "Jacob's trouble!" Again, it's coming soon and, in fact, it has already begun, so just watch as the "AMERICAN DREAM" continues to blow-up in smoke right before our eyes!!!
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Posted by Vauung on 03/04/11 11:13 AM
@ DB
"If you believe the Chinese economy is other than a fraudulent mimic of what Western free-market economies once were (a hundred years ago) we have bridge to sell you ..."
This might be right -- although I'm not really sure I understand it. Still, you underestimate the Chinese talent for capitalism IMHO. Look at Singapore, HK, Taiwan, or the Han diaspora if the mercantilist megamachine on the mainland is too monstrous to contemplate. Vibrant capitalism can't be conjured out of just anything. Culture matters.
Reply from The Daily Bell
Don't be so condescending to the Africans who invented market culture.
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Posted by Bionic Mosquito on 03/04/11 11:08 AM
DB: "Without government there are no levers and thus no availability of control mechanisms."
Very well and succinctly put (within the context of "government" as DB has described here). There are many lessons to be drawn from this simple observation.
Ms. Ezekwesili: "Businesses want to set up here with the hurdles to their activities eliminated as much as possible."
Of course they do. I also want to have my cake and eat it too, somewhere over the rainbow, way up high....
The businesses also want to be the recipients of this World Bank largesse to build out the infrastructure in the first place.
DB: "The only positives that we can see in regard to all this is that Africa may never experience the full force of what the World Bank and its Western elites have in mind."
This is correct; the game will not last the necessary 30 to 50 years. Lucky for them.
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Posted by Rastindian on 03/04/11 10:56 AM
The World Bank Has a 'Plan' : Buying more time perhaps as the pace of this unraveling is unsustainable,too many questions being asked you see..
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Posted by Bill Ross on 03/04/11 10:22 AM
DB: "The World Bank Has a 'Plan'"
Which is predicated on the "or else" (unintended consequences) choice NOT being taken and "obey or else" being encoded in wonderful, impartial, law, decreeing shifting of (other people's) debt to civilization at large, enforcing the "Plan", by our dutiful public employees and "servants", focused exclusively on "common interest".
Unfortunately, all of the "PLANS" (read: scams) have seriously and negatively affected the collective ability of people to survive, their basic "PLAN". Does not bode well for the "PLANNERS" whom assume "consent or, at least terror of the governed".
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Posted by Henri on 03/04/11 09:39 AM
The World Bank and IMF have certainly failed to help the masses. The have most certainly helped corporations. All of the leading industrialized nations have used "protectionism" in the infancy of their development. Now they impose free trade on those nations who need protected the most. The USA sold its "subsidized" corn to Mexican cheaper than they could grow it themselves. This resulted in a rise in unemployment and the increase of migration to the USA for work. This is hardly free trade. American cried foul when Walmart used this approach to drive small competitors out of business. Corporatocracy is indeed the great cancer on this planet.
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Posted by Theodorej on 03/04/11 07:23 AM
Greetings...A very clever way to hide the fact that Africa is the victim of a massive mineral and resource grab by China and the full complement of western industrial nations...In light of current events which show the frailty of existing governments or dictatorships to hold power the elites have decided to create a higher standard of living for africans while the piliging proceeds at warp speed...
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