By: Crispy Kaheru When the East African Community (EAC) collapsed in 1977, it did so not just because Kenya demanded for more seats than Uganda and Tanzania in decision-making organs of EAC but because there was generally a lack of integrity, trust and selflessness among the leaders at that time.
With its restoration in 2000, the EAC is making strategic leaps towards political integration.
However the ultimate political integration is going to heavily depend on the extent through which the political leaders in Kenya, Uganda, Tanzania, Rwanda and Burundi seek to fulfill the core values of the regional bloc as opposed to undertaking individual self-seeking projects. While regional cooperation may be important in developing constructive relations between states, it cannot be assumed that pooling resources to provide public goods for populations and creating platforms for dialogue regarding shared interests will automatically follow.
Despite the high hopes raised by the re-ignition of the EAC concept, the region continues to suffer from deep-rooted mutual suspicions, as well as selfishness by some of its contemporary main political actors. The neatly woven suspicion and individualism amongst some of the regional political players might sooner than later pause a greater challenge to regional integration.
EAC Heads of State – From Left: Uganda’s Museveni, Kenya’s Kibaki, Rwanda’s Kagame, Tanzania’s Kikwete and Burundi’s Nkurunziza [ ENLARGE ]
The Kenyan Triton Oil Scandal of 2008/9 that led to the massive fuel shortage in the entire East African region is said to have been engineered by sections of political leadership in Kenya for self vested interests. Without naming names, considerable evidence unraveled after that fuel scandal pointed to key political figures issuing orders to the Triton management to hoard fuel in order to escalate the oil prices beyond the market rates for individual gains. To the best of luck of the proprietors of this fraud, the oil prices more than doubled in Kenya, Uganda and Rwanda for about a month in the later part of 2008.
Similarly, recent media reports have associated the current economic slowdown characterized by the skyrocketing inflation in the region to the artificially triggered fuel prices in Kenya whose brunt is now being intolerably felt by Uganda, Rwanda, and Burundi. Although initial explanations by the Ugandan, Rwandan and Burundian governments dwelt on the insurgency in North Africa and the Arab world, the focus has dramatically shifted to analyzing the costs levied on fuel between Mombasa port and Eldoret. In his swearing in speech, President Museveni last week actually revealed his intentions to start importing crude oil from Sudan as a measure of curbing the soaring prices of fuel. Although Uganda has time immemorial got its fuel from Mombasa, Museveni expressed concern on the costs charged on fuel products to Uganda by the Kenyan authorities.
Of course with the fuel fraud precedence that has been set, I would not be shocked if the economic crisis in East Africa is yet another individually engineered or exacerbated scam to amass quick wealth for just a few politicians who trade in oil at the expense of the ordinary citizens in the region who now cannot even afford one meal a day, due to the unbelievable commodity prices. Yes, this has happened before and it wouldn?t be shocking if the same game is being played by a cabal of cruel, self-minded leaders somewhere in the region.
Such politics of selfish interests will definitely serve to breakdown the foundation of trust between what are essentially supposed to be cooperating countries in the region. Interstate agreements on partnership relations of cooperation are supposed to be built on mutual trust, respect and confidence between the countries’ leaders.
It is imperative to note that regional cooperation, as a middle path between complete self-reliance and complete openness, gives countries increased room to maneuver in pursuing development. Therefore, the only way to maintain regional political stability and social and economic welfare is to have an altruistic attitude in administration rather than leadership that presages selfishness.
As long as Africa’s fates continue to be decided by capricious whims of individual despots, its people will continue to languish under poverty for decades to come. Transparency, accountability and good governance are unlikely to be achieved without well functioning and independent institutions that are able to hold any individual including the leaders accountable for their actions.
Dr. Wolassa Kumo Introduction
Africa is endowed with rich and diverse natural resources ranging from oil and gas to various minerals including diamond, gold, uranium, copper, zinc, cobalt and so on. At the end of 2010, 17 of the 53 African countries produced and exported oil with Libya and Nigeria holding the world’s 8th and 10th biggest oil reserves respectively. Ghana became the latest African country to join the club of world oil producers in December 2010 when it pumped crude oil from an offshore field in the Gulf of Guinea for the first time. Other major oil producers include Angola, Equatorial Guinea, Egypt, Gabon, Chad, Sudan, Cameroon, the Central African Republic, and etcetera. Africa currently holds over 10% of the world’s oil reserves and supplies over 12% to the global market. Countries rich in mineral resources in Africa include South Africa, Democratic Republic of the Congo (DRC), Botswana, Namibia, Mozambique, Niger, Zambia, Mali, Sierra Leone, Mauritania, Liberia and etcetera. Oil, gas and minerals contribute up to 95% of the foreign exchange earnings in some of these resource rich African economies.
Nevertheless, the benefits from the abundant natural wealth have not adequately trickled down to the majority of the African population. As a result, about 40% of the continent’s 1 billion people still live below the poverty line, i.e. US$1.25 a day. For instance, in Nigeria, Africa’s second top oil producer, over 70% of the population lived below the poverty line according to the 2007 estimates. In Equatorial Guinea, another major oil producer in Africa, and the richest country in the continent in terms of per capita income, over 77% of the population lived below the poverty line according to the 2006 estimate. Almost all resource rich African economies are ravaged by high level of poverty and unemployment.
Globally, 3.5 billion people live in countries rich in oil, gas and minerals. However, many of them still suffer from poverty, corruption and conflict emanating from weak governance [1].
The correlation among the natural resource endowment, economic growth and poverty has been contentious for decades. Among the vast empirical and theoretical literature on the impact of natural resource endowments on economic development, two contrasting views dominate the debate. The first view emphasizes that the development performance in mineral and oil rich and dependent economies has remained worse compared to the economies less endowed with and less dependent on such resources and that natural resource endowment is a curse rather than a blessing. This view is dubbed by economists as The Natural Resources Curse Hypothesis. Another view considers natural resources as endowments that can potentially spur economic growth and development in these countries. This, however, hinges on four fundamental factors: (1) conducive policy, legal and regulatory framework for extraction and use of oil and mineral resources; (2) promoting linkages between the extractive industries and the other sectors of the economy; (3) full involvement of communities in the decision making processes pertaining to exploration, exploitation and use of incomes from extractive industries; and (4) institutional capability, good governance and management of the natural resource revenues. While all factors are fundamental to ensuring oil and mineral wealth makes a dent in poverty in resource rich economies, good governance, accountability and transparency remain the cornerstone. The following section scrutinizes the global efforts towards promoting transparency and accountability in extractive industries in developing economies.
In 2000 the World Bank commissioned a review on extractive industries (oil, gas and minerals), headed by Dr. Emil Salim (former Indonesian State Minster for population and Environment), which involved an independent stakeholder consultation process. The World Bank agreed with the recommendations of the review and endorsed its main message that extractive industries can contribute to sustainable development when there is strong governance and transparency; the benefits from industry reach the poor; and the rights of people affected by extractive industry investments are protected, among other things [2].
Following the results of the World Bank review of extractive industries, the Extractive Industries Transparency Initiative (EITI) was launched in Britain in June 2003. The United States endorsed the initiative in June 2004. The EITI is governed by board members drawn from implementing countries, supporting countries, civil society organizations and industry and investment companies.
The main objective of the EITI is to increase transparency in financial transactions between governments and companies within the extractive industries so that revenue from natural resources are directed to government spending on health, education and other development priorities [1]. This would be achieved through a voluntary disclosure of revenue flows and payments by the government of and companies operating in implementing resource rich countries. Implementation of EITI must be consistent with the following criteria [1]:
a) Regular publication of all material oil, gas and mining payments by companies to governments (“payments”) and all material revenues received by governments from oil, gas and mining companies (“revenues”) to a wide audience in a publicly accessible, comprehensive and comprehensible manner.
b) Where such audits do not already exist, payments and revenues are the subject of a credible, independent audit, applying international auditing standards.
c) Payments and revenues are reconciled by a credible, independent administrator, applying international auditing standards and with publication of the administrator’s opinion regarding that reconciliation including discrepancies, should any be identified.
d) This approach is extended to all companies including state-owned enterprises.
e) Civil society is actively engaged as a participant in the design, monitoring and evaluation of this process and contributes towards public debate.
f) A public, financially sustainable work plan for all the above is developed by the host government, with assistance from the international financial institutions where required, including measurable targets, a timetable for implementation, and an assessment of potential capacity constraints.
There are two categories of EITI implementing countries: Candidate countries and compliant countries. To become a candidate country, a resource rich nation must sign up to implement EITI and meet the following four indicators: committing to implement the EITI; committing to work with civil society and private sector; appointing an individual to lead the implementation and producing a Work Plan that has been agreed with stakeholders. When countries fully implement the EITI they become compliant countries [1].
At present, globally, 35 countries have signed up to implement the EITI. Of these, 11 countries have fully complied with the EITI rules. These countries include: The Central African Republic, The Kyrgyz Republic, Niger, Nigeria, Norway, Yemen, Ghana, Liberia, Mongolia, Timor-Leste, and Azerbaijan.
Extractive Industry Transparency in Africa
Transparency in extractive industries has improved in Africa. Africa accounts for 5 of the 11 countries in the world that have fully complied with the rules of the EITI as of 2011. However, given the sheer size of natural resource endowments and the number of African countries holding these resources, the continent has a long way to go to achieve full transparency in the exploitation and use of these resources.
Outside of Nigeria, Niger, the Central African Republic, Ghana and Liberia which have fully complied with the EITI transparency requirements, 16 other African countries have signed up to implement the EITI initiative. These include: Burkina Faso, Cameroon, Chad, Cote d’Ivoire, DRC, Gabon, Guinea, Madagascar, Mali, Mauritania, Mozambique, Republic of the Congo, Sierra Leone, Tanzania, Togo, and Zambia.
Countries rich in mineral resources in Southern Africa such as South Africa, Botswana, and Namibia have not signed up for EITI. Nor have any of the oil and gas rich northern African countries such as Libya, Algeria and Egypt and the central African country of Equatorial Guinea. Although mineral and oil wealth have contributed to rapid economic progress in these economies during the past decades, high levels of poverty and unemployment still remain the biggest challenge. Ambitious and non-pragmatic new growth trajectories aimed at accelerated job creation being proposed in these economies may require more transparency and accountability in the exploitation and use of natural endowments than what the traditional practices entail.
This has become more evident since the onset of the Arab North Africa revolution that has toppled two regimes and is threatening to topple the third one. Post revolution and current evidences in these countries have demonstrated that in spite of some progresses in economic development, incomes from natural resources have been largely squandered by the political elites while 40-50% of the population languished below poverty line.
A 26 year old and unemployed young man, Mohammed Bouazizi, who sparked the revolution in Tunisia and the Arab world by setting himself on fire following the confiscation of unlicensed vegetable cart and its goods he used to sell for living in the streets by a policewoman, echoed the plight of not only Tunisian youth but millions of young college and high school graduates allover Africa and the Middle East. Mohammed Bouazizi has since become a legend in the Arab World and of course in the rest of freedom loving world. The Bouazizi Revolution is just only the beginning! Dictators who cling on to power and embezzle incomes from natural resources that belong to all citizens of a country will pay dearly sooner or later. The waves of democratic revolutions in the Arab world and its resounding successes within a relatively short period of time have exhilarated the quest for freedom, democracy, the rule of law and good governance in the rest of the Africa continent, the Middle East and the world at large.
Concluding Remarks
The sad reality about Africa is that it is so rich and yet it is so poor. This remains the most perturbing paradox of our time. The continent holds the world’s largest reserves of diamond and gold, and large reserves of copper, platinum, manganese, oil and gas, and millions of acres of fertile agricultural land, and yet its people remain the poorest in the world. Africa, a “Treasure Island” in the words of a world renowned Kenyan academic, Professor Ali Mazrui, remains an island of abject poverty, hunger, malnutrition, HIV/AIDS pandemic, civil unrest, corruption, nepotism, cronyism, and despotism.
As long as Africa’s fates continue to be decided by capricious whims of individual despots, its people will continue to languish under poverty for decades to come. Transparency, accountability and good governance are unlikely to be achieved without well functioning and independent institutions that are able to hold any individual including the leaders accountable for their actions.
While many African countries are moving in the right direction in this regard, some are regressing backwards. Political, religious, ethnic and racial intolerances are on the rise in several countries in the continent. Economic recovery from a sudden global shock caused by unfettered western capitalism hinges on political and social stability in the continent while inclusive economic development requires greater transparency and good governance. Where the continent’s despots make such transformation impossible, it is incumbent on the people of Africa to rise in unison and emulate the great people of Egypt, Tunisia, and Libya.
Obama whacks GOP in Pittsburgh: Last Wednesday at Carnegie Mellon University, Obama went on the summer offensive, accusing Republicans of sucking up to corporations, hewing to a bankrupt economic ideology and peddling tried-and-failed tax breaks for the rich.
“[A] good deal of the other party’s opposition to our agenda has also been rooted in their sincere and fundamental belief about government,” Obama said. “It’s a belief that government has little or no role to play in helping this nation meet our collective challenges. It’s an agenda that basically offers two answers to every problem we face: more tax breaks for the wealthy and fewer rules for corporations.”
Obama said most Republicans “have sat on the sidelines and shouted from the bleachers.” [ READ MORE ]
Meanwhile, Robert Miles writes: “The Israelis are good at it … using U.S. supplied tanks and attack helicopters they’ve been shooting up unarmed civilians in refugee camps for years. The UN has condemned this Israeli attack, global outrage decries this most recent offense against humanity … but, the reaction of the United States is totally predictable: America will block any UN resolution to formally censure or sanction Israel … why should the U.S. break its own record of support for any Israeli criminal activity?”
“Ariel Sharon once told the Israeli Knesset that ‘We (Israel) control America.’ That control must be broken, and American foreign policy must be reshaped to serve the American people as a whole, and not just an insistent, vocal, demanding minority.” [ READ MORE ]
Halliburton, the Texan oilfield services giant, has emerged as a key player in the Deepwater Horizon catastrophe. The controversial firm, once run by former vice president and Iraq war architect Dick Cheney, had been hired by BP to handle the cementing process on the doomed rig.
According to Transocean, the operator of the drilling platform, Halliburton workers had just finished pumping cement to fill the space between the pipe and the sides of the hole and had begun temporarily plugging the 18,000 ft well with cement shortly before the explosion that caused the rig to catch fire and ultimately to sink. [ READ MORE ]
Columnist – John Sammon I call for an immediate attack on Saudi Arabia to take over their oil and to install an American-backed regime in Riyadh friendlier to the United States. It’s been eight whole years, and we haven’t attacked a third country yet. We only attack countries weaker and smaller than ourselves. It was Saudi Arabia remember that supplied the hijackers that carried out 9-11.
Why do we love Saudi Arabia? We hate Moslems. Because of 9-11, we hate all Muslims, even those poor slobs in Indonesia, right?
We could make Saudi Arabia first an exploited colony garrisoned by American troops and ruled by an American viceroy who looks like John Wayne. He could saunter around with a pair of pistols and say to all the turban-heads, get out of my way, Pilgrim!
Eventually, we would annex Saudi Arabia and make it the 51st state in the union.
We would call it, Saudi America.
We would flood the country with right wing duck hunters from Minnesota who still believe in Dick Cheney, and white power skin heads with confederate flags on their trucks from the Deep South. They would take to it because Saudi Arabia, (excuse me), Saudi America, is a sandy, ugly, God-forsaken country just like Texas, home for the rednecks. The new arrivals would establish grease-laden junk fast food takeout shops, tequila growing farms, tattoo parlors, condom dispensers, factories that make specially designed lingerie for transvestite congressmen, motorcycle parts stores, laminated fruit used as sex aids, DVD adult movie rental outlets, and back-yard cottage industries making affordable reproduction World War 2 German helmets for Republican tea-baggers complete with swastikas.
We could build the very first adult-and-selected-minors-only X-rated Disney theme park and call it Stud Mickey on the Dunes (as in Mickey Mouse with a huge phallus riding a dune buggy across the Saudi sands). The center piece of the park would be the largest reality roller coaster in the world, specifically built to eject randomly chosen senselessly singled out certain unsuspecting riders engaged in the act of intercourse at high speed headfirst into a tiled lagoon, the possibility of potential un-rehearsed home movie-style entertainment to be televised for the cruel enjoyment of ignorant and easily impressed visitors, and those who enjoy listening to Sarah Palin.
This could all be funded by raising the price of gasoline.
Think what we could do with that oil money. We could turn Mecca into a glittering casino city to rival Las Vegas or even Branson Missouri with Arabic symbols on the slot machines to help fleece native sucker common-as-dirt potential slaves and hook them hopelessly on gambling, diverting them from their current occupations, sheep herding and wife beating.
A new industry, the sales of genetically-engineered gnats, would be developed, as hotter global warming sand dunes are prefect breeding grounds for the pesky insects. A rapidly multiplying growth bio-organic type of farming, gnats would be exported from Saudi America all over the world as a way to, after introducing them into the mouth, cleaning (by the insects eating away) decaying food between the teeth, eliminating the need for floss. A black market illegal trade could also be set up to infest the homes and cars of ex-wives and disagreeable bosses, the product to be titled, “Revenge with a Buzz.” We could hire Glenn Beck as a spokesman.
A special tax will be set up levied on the families of American serial killers back home based on household income to fund the first non-interrupted, elevated freeway running from the coast of Florida to the new state of Saudi America. This will allow the free movement between continents of hordes of Social Security grabbing, leech-like-freebie-sucking salary-less elderly retired loafers, who think the world owes them for the simple act of living, a bunch of non-contributing, seasonal immigrant vagabonds who will flock to a newly-constructed upscale gated condominium development along the Red Sea to be titled, Moses Slept Here, Phase One.
The Saudi royal family will be moved out and given property in the fashionable Hamptons of New York State, and posh flats in London, the only things they ever really wanted in the first place. They can thus be rich and drive Rolls Royces and pretend they are successful Englishmen wearing robes.
The surrounding ocean would be denuded of all its sea life by over-fishing and the All-Sex Porno Channel cable TV station introduced all across the country to take the place of the native religion, which will be abolished. Every citizen who currently practices any form of religion including Islam, Catholic and Mormon, will be required to convert instead to the selling of Mary Kay Cosmetics, a religion all its own.
Solar powered computerized micro chip mechanical camels will be created to run on the world’s first water-gravity-flow-fed pneumatic tube monorail system, the water to be shipped by means of a specially constructed overhead pipeline from the Central Valley of California as that state totally falls apart and no longer needs it. Governor Arnold will attempt to avoid presiding over the California debacle and will seek office in Saudi America, but will be stripped of steroids and escorted to the border where he will be told to go visit long-neglected relatives in Austria who highly doubt his even minimal acting ability.
Arnold will find it hard not to put on one of the cottage industry teabag reproduction German helmets.
When the East African Community (EAC) collapsed in 1977, it did so not just because Kenya demanded for more seats than Uganda and Tanzania in decision-making organs of EAC but because there was generally a lack of integrity, trust and selflessness among the leaders at that time. 
