Maasai Warrior

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Articles

THE ONTOLOGY OF AFRICAN MISERY: THE IMF UNDRESSED By Miyere ole Miyandazi & Ngunyi Wambugu The International Monetary Fund (IMF) is an organization of 184 countries, that claims to work towards the fostering of global monetary cooperation, securing financial stability, facilitating international trade, promoting high employment and sustainable economic growth, and reducing poverty. It came into existence in 1945 and prides itself as the referee and, when the need arises, rescuer of the world's financial system. Nearly all U.N. member states either participate directly in the IMF or are represented by other member states. But has this organiozation really bettered the economies and by extension, the lives of Africans in general? The answer would be a resounding NO! Firstly, in its quest to alledgedly alleviate the economies of most African states, the IMF claims that their interventions are meant to foster financial stability as well as political stability. Simply put, the IMF would love us African folks to believe that it is looking out for us. Really? Unfortunately it has to be said that this organization has been the main culprit in the etrenchement of corruption in numerous African states, not to mention the propping up of capitalistic military dictatorships friendly to American and European corporations. This vessel of the neo-colonialists who always harp on about the lack of democracy and human rights in African states, is charged of lying in the same bed with the despots who stand accused of these failings. The IMF has to be blamed for creating moral hazard and in effect encouraging governments to behave recklessy by offering them reason to expect that if things go array the IMF will organise a bail-out. And thus, inter alia, banana republics are born, socio-economic disparities are widened, the working class is denied social mobility and kleptocrats are created by the day. For example before IMF got involved in Kenya, the Central Bank of Kenya oversaw all currency movement in and out of the country. IMF mandated that Central Bank of Kenya had to allow easier currency movement. Nonetheless, the adjustment resulted in very little foreign investment, but on the other hand allowed Kamlesh Manusuklal Damji Pattni, with the aid of corrupt government officials, to syphon out billions of Kenya shillings in what came to be known as the Goldenberg Scandal, leaving the country in a state worse than that which it was in before the IMF reforms were implemented. Another case in time, is when the IMF suspended the key $205 million aid package to Kenya in July 1997, citing official corruption and poor governance. The move led foreign investors to pull out of the country and other donor nations cut their aid packages. In order for the Kenya government to get any form of help from the IMF, it was given a conditionality that stipulated the downsizing its 225,916 employees in the civil service. The procedure set out in effecting this scheme was to offer the retrenched workers a "golden handshake", or retirement payout, as some would term it. The exact amount of money required for these "golden handshakes" was approximately Ksh13.72 billion ($185.4 million). The IMF offered to meet the costs of the lay offs through its proxies namely the U.K. and the U.S.A. Thus, workers were laid off, given peanut payouts, yet they lacked appropriate skills to manage these monies nor were they given any guidance on how to invest them. Subsequently, a majority of these individuals misappropriated these payouts and were left worse off than they were initially. In addition, corrupt government dipped into the very payout coffers, compounding the fiscal status of the nation. IMF has indeed made Africa poorer and vulnerable to corruption, hunger and all manner of afflictions. We concur that without such corrupt governments, it would have been extremely difficult for the IMF to remain in business. This is why it is crucial for the youth in Africa to arise and advocate for change. For the old cronies in power are not for the betterment of the masses, but are puppets of such organizations; gleefuly draining our economic life blood pool. Mobutu Seseko was buttressed by the same IMF that calls countries to order when "human rights" are violated. Which we suspect is mere a lip-service PR mechanism for positive media reviews. The myth we have been feed all this while is that without the endless support of the IMF, our economies would crumble, and our cretin leaders make a good job of pushing this skewed propaganda home. Many an economist can attest to the demerits of IMF presence in African states. There is empirical evidence to back this up. Question is, what are the Africans who wake up everyday hoping that that day will herald the "big-break" they have been longing for so long (which never arrives anyway) have to live for? If we acknowledge the inherent parasitism exuded by the IMF, then what are we doing to make sure our progeny do not get sucked into this web of destituion? One Rafael Ernesto Guevara de la Serna said, " The revolution is like an apple, you don't wait for it fall; you have to make it fall". Case closed.