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Why Rich Nations Are

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By Linda McQuaig

Toronto Star
June 16, 2002
It must all be very perplexing to Africans. Rock star Bono just went across the continent doing free concerts to promote development; with him was U.S. Treasury Secretary Paul O'Neill and the international media. Later this month, the world's most powerful political group, the G8, has vowed to put Africa at the top of its agenda. What's next — the David Letterman show? After decades of neglect, suddenly Africans are in the spotlight. Now, if they could just get something to eat over there ...

African poverty is such a hot subject this month, one could easily get the impression that world leaders have finally become concerned about the hunger and AIDS crises sweeping that continent. This isn't likely the case. Rather, the sudden interest in African poverty seems to have been prompted by the rise of the huge international protest movement — sometimes called the "anti-globalization" movement — which has pushed the issue of the unfairness of the global economic system so doggedly that those in charge of the world have felt compelled to respond to the charges.


It's no accident that the decision to discuss Africa at this year's G8 summit — to be held later this month in Kananaskis, Alberta — was made at last year's G8 summit in Genoa, where world leaders were confronted by hundreds of thousands of protesters. These protesters — and others in Seattle, Washington, Quebec City, etc. — were getting worldwide attention with their message that the global economic system is increasing world poverty, particularly in Africa. The days of leisurely dine-and-golf summits were clearly numbered; something had to be done.

One solution was to hold future summits in hermetically-sealed locations, like Kananaskis. Another was to appear concerned about African poverty.

Of course, the main response from the political, business and media elite so far has been to vigorously defend the global economic order and insist that Africa's problems can be blamed on just about anything else.

To be fair, Africa's problems didn't begin with the emergence of the new global economic system, which strengthens corporate rights and weakens government. Even before the new system emerged in the early 1980s, Africa had severe problems. But it's interesting to note that, since 1980, economic growth has slowed dramatically in just about every corner of the developing world, particularly in Africa. The timing could be a coincidence, but should we assume that?

The growing inequality between the developed and developing world is an annoying detail for the promoters of today's economy. Some, like Dinesh D'Souza, a research scholar at the American Enterprise Institute in Washington, simply deny it, with no proof beyond their own enthusiasm for the new capitalism. According to D'Souza: "We are living in an astonishing moment in history in which the problem of scarcity, which has plagued our species since the dawn of mankind, is vanishing before our eyes." (This is true only if you leave out the 800 million people currently starving.)

More dangerous, perhaps, are those who appear eager to help, like O'Neill, the U.S. Treasury secretary. Sitting beneath a mango tree in Uganda during his recent African tour, he told the assembled media how impressed he was by the hard-working locals. He went on to muse about how quickly clean water could be made available to everyone in Uganda, if only the rich countries could be reassured that their aid would be properly spent, not siphoned off by corrupt authorities. (What, Groupaction has offices in Africa, too?)

It was a great photo op, and it cast the Treasury secretary in a human light. If only there was some way he could reach out and help these industrious villagers! But the touching vignette was misleading, given that O'Neill is the ultimate enforcer of a global economic system that has done a great deal to prevent Ugandans from gaining access to clean drinking water, among other things.

As Treasury Secretary, O'Neill effectively presides over the two most important international financial institutions — the IMF and the World Bank — which use their clout to force poor countries to open up their markets to western corporate and financial interests.

So, for instance, the IMF and the World Bank have insisted that Uganda privatize its water supply and sanitation systems, thereby creating lucrative opportunities for western corporations. Uganda has been given until next March to remove existing government subsidies that enable its people to buy water. With these subsidies removed, Ugandans — like those industrious villagers clustered around O'Neill under the mango tree — will find it a lot more difficult to afford clean drinking water.

So, there's no need to rely on corrupt officials to block access to clean water in Uganda; the global economic system is taking care of that all on its own.


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FAIR USE NOTICE: This page contains copyrighted material the use of which has not been specifically authorized by the copyright owner. Global Policy Forum distributes this material without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. We believe this constitutes a fair use of any such copyrighted material as provided for in 17 U.S.C § 107. If you wish to use copyrighted material from this site for purposes of your own that go beyond fair use, you must obtain permission from the copyright owner.