The Economy of Democracy: Preserving Africa's Autonomy

Abstract

Economies and regulations are so intertwined, a debate on which follows the other is most likely to go infinitely low income countries in Africa are heavily borrowing in a bid to develop sustainable economies. Borrowing and assistance to countries promote diplomatic ties and propel sustainable development without any regional check on the borrowing. Just how much borrowing endangers the country and its assets? There is concern on external interferance with policies and democracy thereby endangering democracy and autonomy. Is it a case of whoever calls the piper picking the tune? Africans are barely decolonized posing a threat to the regional order.

This paper looks at the threat debts pose to regulations and external interference in governments and the need of a regional policy and institution on borrowing. The value of regulation in the growth and fall of economies cannot be over emphasised. Economies and regulations are so intertwined, a debate on which follows the other is most likely to go infinitely. This paper questions the over reliance on foreign aid and borrowing. It further points that debts are crippling the continent, turning it to a puppet continent with zero autonomy and the import of this on the economy and democracy. The colonialists might have left the continent on paper but have they really?

Introduction

There are several misconceptions surrounding the market economy including; a country must borrow to develop, there is no regulation in a free market, development is measured by industrialisation levels and good infrastructure, only broke countries borrow to debts indicate a failing economy. The annual United Nations General Assembly resolution on external debt has repeatedly stressed the importance of promoting responsible sovereign lending and borrowing. The wants and needs of countries vary as is their culture, population, geographical location, availability of natural resources and even the aims.

The United Nations in the declaration of the 2030 agenda noted, “Each country faces specific challenges in its pursuit of sustainable development. The most vulnerable countries and, in particular, African countries, least developed countries, landlocked developing countries and small island developing states deserve special attention, as do countries in situations of conflict and post-conflict countries. ” A standard measure and index of development is very problematic. The right to development is now codified but just what is it’s minimum core content?

The Sino-African relations can be analogised to a relationship of a young, beautiful and resourceful girl still struggling to achieve her dreams. An older man sees all the beauty she has and how much more he can bring out in her after injecting some money. The girl cares only that her bills are paid, her hair looks good and does not go hungry. That the man does not truly care for her but his lustful insatiable appetite is what drives him is not her concern. Not even that she will lose her dignity, respect and authority over her body worries her. Upon conceiving a beautiful baby but cannot keep up with the baby daddy she seeks to cut ties. It is too late. The man wants his seed, he so tirelessly laboured for it. He is influential and takes the baby away from the girl. Africa and her resources is the girl who is seduced by China. The baby is the many projects being financed by the baby daddy. Africa nations default and boom, the projects together with existing resources are forfeited to China.

It has been argued, that donor involvement in Africa often has been ambivalent or, in some cases, downright harmful. Failures in policy regulation and poor economies can greatly be attributed to African leaders. Sahr on democratization argues that in most African countries, the small number of individuals with power have managed to erode any semblance of accountability, legitimacy, democracy, and justice, which has been a basis of considerable disappointment to the planners, economists and policy makers who want African governments to introduce a reasonable and collective attack on poverty, disease, illiteracy, and other challenges to development.

This is however not to absolve extra-African influences of blame. A slave will always want to please the master. The few leaders engaging in talks with the extra African actors pledge too highly and even offer as security public resources which may end up forfeited in case of a default. It is alarming that Africa’s sovereignty is gradually being forfeited in the process. The leadership position is one of trust and the leaders are in a fiduciary relationship between them and the electorate. The case of Hambantota port in Sri Lanka that was forfeited should be an object lesson to the resourceful Africa. This is not only in reference to China which is on a lending spree but also to any other states which put the sovereignty of the borrowing nation at stake. The Centre for Strategic and International Studies-Africa Program identified 46 sub-Saharan African ports with financial, construction, or operational involvement by Chinese entities.

Through funding, China can solicit projects that further its policy objectives, feed corruption, and influence local politics. In addition, funding allows China to favor Chinese construction companies, negotiate operational control and access to resources, and potentially seek further concessions if African countries renege on debt payments.

The China lending spree makes Africa a subject of trade wars and subsequently a victim. The United States tries to protect its interests in Africa while fighting off any advantages China might have over it under the umbrella of shielding Africa against China the bully. Is it a resource scramble or sustainable economic development for African nations? A theoretical framework is key to understanding the Sino-African relationships.

Third-World Approach to International Economic Governance

The application of theory is a useful analytical exercise for gauging the past, understanding the present, and prognosticating the future. The Third World International economic approach is strongly related to Third World Approaches to International Law(TWAIL). TWAIL can be traced back to the 1990's. Shetty Vikrand described it as opposition to the unjust global order. Early writers have argued that third world countries could regulate the conditions under which foreign investors from certain sectors of the economy could enter Third World Economies; exclude foreign investors from certain sectors of the economy and regulate the permissibility.

Makau Mutua argues that political independence is largely illusory without economic independence. Three aspects are fronted under this theory, National Economic Control, New International Economic Order and Regime Bias Approach. Third world countries in a bid to enhance their autonomy and avoid repressive Western influences have come out strongly against various international law concepts.

The National Economic Control(NEC) as James Gathii explains, asserts national economic sovereignty and rejects external economic controls. The economic controls need not be particular economic international laws. Any other state which is not the subject state qualifies as a external economic control. This view viewed through Makau Mutua's lens leads to the premise that economical independence is key to political independence. Alleged political independence is not only nonexistent, a fallacy but also illusionary without economic independence. The analogy of the girl and the baby daddy sets in once more. The lady loses her rights to personal body integrity and dignity to the baby daddy for financial security.

NEC called for Calvo clauses whose effect among others was subjecting foreign investors to municipal courts of the host countries. The rule of equal treatment was the basis upon which the economic relations were founded. Many third world countries revolt against International economic law arguing they are Western and do not adhere to the doctrine of equal treatment.

Reminds me of the book Lamentations in the Holy Book. Africa is an unequal party who might be suffering from her past sins. There is still hope for her. It is unfair when in case of failure to repay the defaulting party will be subjected to the laws of China. It is a country one would not be excited to borrow jurisprudence from especially on democracy. What are laws without democracy? Governments unfortunately have jealously classified the contracts with China from the public. This not only offends the right to information but is in bad faith.

Right to Information

United Nations Conference on Trade and Development (UNCTAD) set principles of responsible lending and borrowing outlines among others agency, transparency of borrower’s decisions and disclosure of borrowings and responsible borrowing. The African Charter enshrines the right to information, a departure and a remedy from arbitrary governments to the detriment of the nation. Kenya's Constitution for example, enshrines the right to information but it largely remains a right on paper. Whatever terms the contracts provide is loudly speculated and the nation is left to wonder which assets will soon be forfeited.

Borrowing is not a crime. African nations actually need loans to develop. Do they really? Africa is very rich, with many resources which are yet to be exploited in the right way. Africa is home to unique precious minerals and it enjoys a favourable climate which ensures high food production. Well production calls for processing and value addition of food which consequently requires industries and labor. The European counterparts are more industrial but with less favourable climate. Guess who relies on the other for food imports?

The case of West Africa is a sad one that calls for lamentations. With the high demand of labour child trafficking has increased to supply cheap labour in cocoa plantations. This savagery and inhumane act not only violates the children's rights to education but condemns them to a poverty stricken life. The cocoa is exported to highly industrialised countries. Their children struggle with obesity as the African child struggles with hunger. If mechanisation is adopted, then production cost will rise. This will resultantly cause an increase in price which is good for exporters. With a reduced labor force, efficiency will be optimum. Children will be left at the comfort of their homes to competitively work their way up. Few workers means fewer wages, which in turn increases the profits. This should apply across all production industries whether in agriculture or mining. Africa's blessings have long been curses but it no longer need not be so.

There is a huge concern as to Africas fast increasing debt burden. The pressure to catch up with rest of the world in infrastructure and technology, industrialization, ensure food security while improving the countrys economy yields to borrowing. The Reports from the Department for Sustainable Development in the Africa Region of the World Bank indicate that Africa is large share of Africas infrastructure is domestically financed. We must not borrow. We have enough. The regulation in place is good. The implementation is wanting. Political will is lacking to seal loopholes that makes nations lose revenue. Corruption is so rampant that even the money being borrowed is misappropriated and/or embezzled. Is there a need to borrow just to steal?

Africa’s Institutional and Regulatory Framework: Africa’s Zero Autonomy

Autonomy enables a state come up with autochthonous leaders, chosen and elected by themselves and enables the states push after their own agenda without undue influence from other countries, especially owing countries.

Africa needs new regulation, free or with very little politics influence. This regulation will see the institution of a regional body whose roles will revolve around development and funding. The body will perform functions interalia; assessment of risk in taking loans, loan a country funds when at risk of forfeiture of assets and approve loans from without the continent. The body will be an organ of the AU thereby every country by virtue of being an AU member will be party to its regulations. Countries will be required to seek approval from the corpus when borrowing or receiving aid of a set threshold

The commissioners will be elected based on their expertise as opposed to popularity. Like directors of a company, they will be placed in a position of trust. They will have to promote the growth and development of Africa, avoid any conflict of interest, act without undue third party influence exercise sound judgement and treat member states equally, taking each case by it's merits.

The danger in this is prima facie is interfering with a country's autonomy which we are striving to protect. This won't be the case however because members of the proposed commission will be elected by the member states. The powers of the committee will be merely advisory rather than mandatory (a more detailed framework on the proposed commission is discussed below). It is Africa for Africa, I am because we are, because we are, I am. If Kenya's port is forfeited, which Uganda, Ethiopia and Burundi as landlocked countries rely on, then they are all bound to suffer. If Zimbabwe produces food but exports it leaving little or no food for it's people then neighbouring countries will have to accommodate refugees to their detriment.

The legislative arm is the appropriate body tasked with loan approvals but they have become puppets of the executive arm. The role of the legislative arm, it is important to note, is not the same for every African nation. Montesquieu on separation of powers warned about the executive making and enforcing laws. y: ‘When the legislative and executive powers are united in the same person or body, there can be no liberty, because apprehensions might arise lest the same monarch or senate should enact tyrannical laws, to execute them in a tyrannical…. ’ When a government inflates project costs, borrows to embezzle then overburden the taxpayer then that government has failed. It is time to limit such freedom and sovereignty by allowing a transparent regional body work on loan approvals.

In instituting the African Union Financial institutions, one of the main concerns was the cost of sovereignty. In limiting rights, one of the factors considered is proportionality as in R v Oakes. The dreams of Muamar Gaddafi the visionary need not be realised by leaders suffering from white supremacy and over dependent on foreign aid. Why is it that we see the need to amend a piece of legislation (which we inherited from colonialists) just after the western nations have amended theirs? Do those laws work in the interest of the civilian? Concepts such as devolution, outlawing witchcraft, codifying economic and social rights which are not necessarily justiciable while ignoring cultural rights and thinking that the law is an answer to everything has crippled and left Africa under a stupor.

The education system is worrying. We are quick to teach children about the Cold war but not about the struggle other countries went through to be liberated. The socio-economic rights were an emphasis of the Soviet bloc. Does the economic strength of Russia match that of Africa? Now that the West is battling with mass shootings and gun control, do we also start seeking law enforcement on gun control? The insecurity that the children in African schools are facing is the education system itself. , which does not satisfy the minimum core content on the right to education. The adoption of a Western system which children cannot relate to has led to a mindset and misconceptions about jobs, which can partly explain the high unemployment rate. The making of weapons by iron Smith's if fully realised could be gradually industrialised to large scale of artillery and arsenal. But hey, Africans have to import such. This is a matter of national security. How sure are we that the arsenal is not made to fail? Weaving was a skill as well as leisure.

The world, especially with regard to the blue economy is turning away from plastic bags. With the available natural resources Africa can comfortably supply the rest of the world with environmental friendly carrier bags. But no, our youth must study to the Graduate level for a course they do not understand why they are pursuing. Remember the case of the Kenyatta university student who travelled to the UK for further research and use of their labs and that's how Kenya lost patent rights to her discovery. Objections to such work often come from activists who complain that Third World countries aren't properly compensated for microbes extracted from their deserts, mountains and sea shores. The concern with bio-prospecting is that the people who consider themselves to be the stewards of the biodioversity in a region often aren't consulted or are ignored, ' said Beth Burrows of the Edmonds Institute, a environmental nonprofit based in Edmonds, Wash. Since the more industrialised countries finance the research from mega diverse countries they end up controling the tune.

If anything Africa did not need a law to ensure food security. The beautiful climate, fertile soils and Ubuntu spirit saw that there was something for everyone. Today, life in the cities is false and artificial. The ‘inferior’ African adopted capitalism and decided to colonize fellow Africans after yielding power. Paulo Friere laments how the downtrodden become the oppressors when presented with power. Well, Africa has no one to bestow power and liberation upon her but herself. It is not all doom as the increased risk of cancer infections has caused many to rethink country living. The intense passion for money getting, the whirl of excitement and pleasure seeking, the thirst for display, the luxury and extravagance, all are forces that, with the great masses of mankind, are turning the mind from life’s true purpose. The tide of corruption and crime is continually swelling. Every day brings the record of violence, —robberies, murders, suicides, and crimes unnamable.

The law is very radical and that's just the beauty of it. However it needs not be the solution to everything. Legislating against a disease will not prevent it's spread. Changing the lifestyle can. It is inferiority complex that needs to be drained out of our minds. We need to embrace the differences realising unique plaques call for unique remedies. A specific country's population may not match that of China, in fact, no African country matches that population. Why would we then want to have same infrastructure as they do? Autonomy has been lost from within.

Not realising who we are, the uniqueness of our region, it's people and rich culture. We are quick to adopt that which a developed country seems good. Development, from the third world view is a very elusive concept incapable of a single measurement. With all the technological advancements and economic might, China is not a developed country. With a happy populace, many African nations are yet to be termed as developed. Human beings are gravely prejudiced owing to the different experiences and exposures. If one is born in a happy, well-fed and secure but poverty stricken home they are likely to consider a workaholic neighbor, driving a flashy car but with miserable children as developed. The indices applied in determination of statuses of countries are therefore susceptible to prejudice.

Regulation reclamation

‘... Foreign aid has increasingly been linked to a set of prescriptions for changes in both economic and political policies pursued by African governments. In the 1980’s, the international financial institutions announced that the implementation of structural adjustment and economic stabilisation programs would be conditions for their assistance to African governments. A robust African economy can and should be informed by Africans. The absence of demoracy is a principal reason for the persistent development challenges facing Africa.

A great challenge on loans is the misappropriation and poor utilisation of the funds. It is savagefor a government to borrow just to brutally waste a lump sum on selfish gain. Corruption is the cancer that is eating up the institutions trusted with bringing development. The loans regulation commission should work as an anti-corruption agency to deter corruption, promote accountability and punish perpetrators of such. National courts could prosecute such economic crimes but the judicial independence of many states is in question.

Kwasi on judicial independence alludes that ‘…Not only independent courts but the entire project of constitutionalism itself—the idea of government subject to countervailing checks or judicially enforceable limits—was quickly abandoned by Africa's postcolonial governments as a luxury their new “nations in a hurry” could ill afford. ’ The African Court of Justice and Human Rights, as established by the 2008 Protocol has no jurisdiction to deal with criminal matters. Corruption is primarily a criminal law breach which calls for a body with criminal law jurisdiction, which unfortunately Africa as a region lacks. The Malabo protocol is yet to be actualized but grants the African Court jurisdiction over matters referred to it by regional economic communities. It calls for the strengthening of the African financial institutions or totally creating a body with powers to impose sanctions on cases of corruption and misuse of public funds.

Africa's glory needs to be reclaimed. Legislation needs to be autochthonous, ministering to the needs of the people rather than the creditors. Not a trace of foreign influence should be found in the legislation. No state has the authority, whether moral or otherwise, to impose on a country enactment or repeal of legislation, especially on contentious issues. The financial institution set to approve loans should be as pure as Cesar's wife, beyond reproach. It is important to distinguish between the politics of globalization (the political drivers of the process of globalization) and the globalization of politics (the displacement of political responsibilities and capacities from the level of the nation state through the emergence of institutions and processes of global governance).

The Loans Regulation Commission (LRC)

The establishment of the Loans Regulation Commission, hereafter referred to as the commission could be brought about by enactment of a statute at the AU level. The Pan-African parliament is mandated with suggesting proposals on policies pertaining consolidation of democratic institutions, human rights, culture of democracy and promotion of good governance to the assembly. This body is to act in complimentarity with other regional and national laws, and institutions thereto.

It is trite to consider the commissioners of the LRC not only on their economic knowledge soundness but also criminal law expertise. They will not act as a judicial boidy per se, rather a quasi judicial body. The penalties could include attachment and sequestration of the criminal’s property. This is feasible through rapporteurs or inviting the public or Non-Governmental Organisations to lodge complaints with the LRC. This further emphasizes why intergrity need be a core foundation of this commission.

It is important to ensure the LRC does not serve as guarantor but a ‘knight in shinning armor ‘. It is an institution of last resort as opposed to a guarantor institution. This is because one of its objectives is discouraging over dependence on foreign aid and loans. Guarantor institutions mostly act to share the risks involved in taking up a loan. The LRC further is not established with a financial muscle to assume risks but help countries in cases of defaulting.

Conclusion

Africa is no doubt a well endowed nation with untold and untapped resources. The diverse culture, the democracy, the peace and the love we share is so rich yet so gravely endangered. One's dreams are not those of the next person and so is with development to countries. Development is the wheel that drives our dreams but we must awaken to reality. What we cannot afford to finance ourselves we may get aid, conditional or otherwise.

It is important to have external and independent evaluation of the need of the loan an subsequent approval before borrowing. Africa’s laws need to be jealously guarded to serve its people according to their needs. After many years of colonization, it is only fair that African’s lead independent lives. Natural law is the most esteemed theory of human rights because the position that everyone was created equal and thereby viewed in God’s image creates a duty to treat them with dignity.

The African people need not be burdened that they are deprived of happiness. There is more to life than development which is incapable of a single standard measurement unit. Many legislative arms as an extension of the executive arm have abused the public trust bestowed upon by the populace. As a unique region, it is important to cherish the ubuntu spirit, unite and check on other countries. This will ensure uniform growth for the region and happiness to many. A regional financial agency will not only authorise only justified loans but also help prevent forfeiture of defaulting countries.

The air we breathe is the same but our spirits are different. This should speak volumes to how autochthonous laws should be. We have institutions in place which need to be strengthened to serve us as visionaries intended. Africa needs the already existing institutions to work and so autonomously at that. This is not a call to third century living but a call to living that is autochthonous. The Western just isn't in this case. Williaam Blake makes a declaration that '“I must Create a System, or be enslaved by another man’s'.