My Beauty Best Teacher

The successful KenGen IPO has strenghthened Kenya's ability to domestically finance projects, Peter Munaita writes about the spillover effects across their fixed income markets:

In April investors put down Ksh26 billion ($361 million) for the initial public offer by the Kenya Electricity Generating Company (KenGen) which was oversubscribed by Ksh18 million ($250,000)..."this"...opened the door for corporations like the Kenya Pipeline Company, Kenya Airports Authority, the Kenya Ports Authority, the Kenya Roads Board and the Kenya Railways Corporation to sell their creditworthiness to investors...The optimism about the success of infrastructure bonds follows the successful flotation of similar instruments by cash-rich corporates, the latest being the second tranche of Shelter Afrique's Ksh500 million ($6.9 million) medium term note arranged by Stanbic Bank. Shelter Afrique raised Ksh200 million ($2.8 million) from the market in January on a floating rate basis to finance housing development in the country. The company finances developers with medium term loans to build housing, creating a vital link between individual borrowers and mortgage lenders.

Over at the Corner at National Review Online, Andy McCarthy writes an interesting piece commenting on Obama's surprising connection with Kenyan strongman Raila Odinga. Mark Levin also wrote about this (link here), and McCarthy draws heavily on a post from Mark Hyman of the Washington Times (link here).

The connection is very troubling between these two people. Once again, Obama has a connection to an anti-American thug willing to do violence, much like Ayers. Obama again has questions raised about his views on religion, as he supported for President in Kenya a Muslim whose followers slaughtered many Christians. Again, Obama has questions raised about his 'citizen of the world status'- why would he support the enemy of a government friendly to the US? Again we see Obama willing to associate himself willingly with socialists. And again Obama connects himself to someone pushing policies of division.

Here is how Odinga is linked to Obama:

Odinga evidently has a very close relationship with Obama. He is native of Kenya's Luo tribe, the same one to which Obama's father belonged. In fact, in early 2008, Odinga told the BBC he is Obama's cousin (i.e., that Obama's father was Odinga's "maternal uncle").

Odinga sought the presidency in Kenya's December 2007 election. In 2006, Obama came to Kenya and campaigned for him, simultaneously voicing sharp criticism of the pro-American government. His comments will sound familiar to Americans. As Hyman writes, Obama declared, "The [Kenyan] people have to suffer over corruption perpetrated by government officials[.]... Kenyans are now yearning for change." Obama's visit, the culmination of consultations with Odinga that had gone on for years, vaulted Odinga's candidacy.(ACM — the outraged Kenyan government issued a rebuttal, greatly disturbed that Obama had represented that he was coming to Kenya to nurture Kenya/U.S. relations but, in fact, had used the trip as a platform to lecture to Kenya about social justice. Obama's interference in a foreign election, transparently designed to topple a government cooperative with the United States, comes close, to say the least, to violating the Logan Act, 18 U.S.C. 953.)

G. Pascal Zachary writes in FP:

Obamania in Kenya has gone on for years now, but the hype isn’t just about the president-elect’s roots. Rather, Kenya’s Obama fixation seems to represent a kind of escapist fantasy for an African country beset by political dysfunctionality. Still raw with the memory of the electoral violence that left hundreds dead last spring, Kenya is thirsty for exactly the sort of change Obama represents. Indeed, the Illinois senator seems to possess everything that Kenya’s political leaders lack: youthfulness, a conciliatory image, and the hope of transcending narrow ethnic identities in favor of a common national interest...[continue reading]

As Kenya descends further into institutionalized corruption, Richard Dowden profiles the work of the exiled anti-graft campaigner - John Githongo

In an attempt to recover the billions of pounds missing from the Kenya treasury, Githongo employed Kroll, the London-based "risk advisory" company, to trace the money through western banks. The Kenyan government made a formal request to the British government and a former MI6 officer who worked in east Africa was commissioned to follow the trail of bank deposits from Kenya to Britain, Switzerland, Frankfurt and the Gulf states. But extraordinarily Kroll gave the management of the project to a young member of a prominent white Kenyan family, thereby putting the family - and the whole project - at grave risk...It seems that back in Nairobi a deal had been done between members of the new Kenya government and Moi's sons. The Kibaki government was rapidly losing interest in past robbery anyway. It was too busy organising its own. In opposition Kibaki's alliance had helped draw up a new constitution that included checks and balances to the presidency. It was supposed to be put to a national referendum but what Kibaki and his cronies - known as the "Mount Kenya Mafia" - had supported in opposition, did not suit them in government. They drew up a new version that did not include the main changes. The only way they could get that through the electorate was by bribing the voters. They set up a fictitious company called Anglo Leasing, said to be developing a new passport system for Kenya, and stuffed millions into it.

In Kuweni Serious Njoki Ngumi writes:

Kenya is not just disgusting roads, bad mobile service providers that won’t let us send texts for free, prosperity-gospel preachers, ‘internationally-certified’ pseudo-universities giving poor quality education, HATEFUL POLITICIANS WHO FIGHT FOR THE NEWS CAMERAS AND PLAY GOLF TOGETHER ON WEEKENDS, narrow-minded mothers-in-law who frown upon marrying someone from another tribe, hospitals where they steal government supplies and sell them back to patients, KPLC publishing a power-rationing schedule then not sticking to it and the epidemic of married men and women with ‘mpango wa kando’.
Kenya is people. Individuals with a voice that can become a collective cry for change. Kenya is you. Kenya is me. Kenya is hating it, but getting up and saying you’ll try, grabbing your shovel to start the clean-up of the Crap Mountain, like all the inspiring people above have done and continue to do.

Africa has long been saddled with poor,even malevolent, leadership: predatory kleptocrats, military-installed autocrats,economic illiterates, and puffed-up posturers. By far the most egregious examples come from Nigeria, the Democratic Republic of the Congo, and Zimbabwe—countries that have been run into the ground despite their abundant natural resources. But these cases are by no means unrepresentative: by some measures, 90 percent of sub-Saharan African nations have experienced despotic rule in the last three decades. Such leaders use power as an end in itself, rather than for the public good; they are indifferent to the progress of their citizens (although anxious to receive their adulation); they are unswayed by reason and employ poisonous social or racial ideologies; and they are hypocrites, always shifting blame for their countries’ distress. Under the stewardship of these leaders,infrastructure in many African countries has fallen into disrepair, currencies have depreciated, and real prices have inflated dramatically, while job availability,health care, education standards, and life expectancy have declined. Ordinary life has become beleaguered: general security has deteriorated, crime and corruption have increased, much-needed public funds have flowed into hidden bank accounts, and offcially sanctioned ethnic discrimination—sometimes resulting in civil war—has become prevalent. This depressing picture is brought into even sharper relief by the few but striking examples of effective African leadership in recent decades. These leaders stand out because of their strength of character, their adherence to the principles of participatory democracy, and their ability to overcome deep-rooted challenges. The government of Mozambique, for example, brought about economic growth rates of more than ten percent between 1996 and 2003, following the economic catastrophe wrought by that country’s civil war (which ended in 1992). And in Kenya, President Mwai Kibaki has strengthened civil society, invested in education, and removed barriers to economic entrepreneurship instated during the repressive rule of Daniel arap Moi.The best example of good leadership in Africa is Botswana. Long before diamonds were discovered there, this former desert protectorate, which was neglected by the British under colonialism, demonstrated a knack for participatory democracy, integrity, tolerance, entrepreneurship, and the rule of law. The country has remained democratic in spirit as well as form continuously since its independence in 1966—an unmatched record in Africa. It has also defended human rights, encouraged civil liberties, and actively promoted its citizens’ social and economic development.
GOOD APPLES
What has enabled Botswana to succeed where so many other African nations have failed? Some observers point to the relative linguistic homogeneity of the country. But Somalia, which remains unstable despite a similar uniformity, shows that this factor is far from sufficient.Others point to the century-old teachings of the congregational London Missionary Society—the peaceful, pragmatic outlook that is inextricably bound up in the country’s political culture. But this explanation also fails to explain why the same positive effects have not been witnessed in other countries with a history of Christian teaching, such as in neighboring Zambia. Nor are Botswana’s plentiful diamond reserves responsible:Angola, Gabon, and Nigeria all have abundant natural resources, but none has seen comparable returns for its people.It is Botswana’s history of visionary leadership, especially in the years following independence, that best explains its success. Sir Seretse Khama, Botswana’s founding president, came from a family of Bamangwato chiefs well regarded for their benevolence and integrity.
When Khama founded the Botswana Democratic Party in 1961 and led his country to independence, he was already dedicated to the principles of deliberative democracy and market economy that would allow his young country to flourish. Modest, unostentatious as a leader, and a genuine believer in popular rule, Khama forged a participatory and law-respecting political culture that has endured under his successors, Sir Ketumile Masire and Festus Mogae. Although operating in very differerent circumstances, Mauritius’ first leader,Sir Seewoosagur Ramgoolam, held to the same leadership codes as Khama.Ramgoolam gave Mauritius a robust democratic beginning, which has been sustained by a series of wise successors from different backgrounds and parties.Both Khama and Ramgoolam could have emulated many of their contemporaries by establishing strong, single-man, kleptocratic regimes. But they refused to do so.Effective leadership has proved the decisive factor in South Africa, too: without Nelson Mandela’s inclusive and visionary leadership, his adherence to the rule of law, his insistence on broadening the delivery of essential services, and his emphasis on moving from a commandeconomy toward a market-driven one, South Africa would probably have emerged from apartheid as a far more fractured and autocratic state than it did.Too few African leaders have followed the examples of Mandela, Khama, and foreign affairs . Ramgoolam. Ghana, Lesotho, Mali, and Senegal are all showing promise. But in many other African countries,leaders have begun their presidential careers as democrats only to end up, a term or two later, as corrupt autocrats: Bakili Muluzi of Malawi, Moi of Kenya,and, most dramatically of all, Robert Mugabe of Zimbabwe. Other leaders, such as Sam Nujoma of Namibia and Yoweri Museveni of Uganda, may be heading in the same direction.
A BOLD INITIATIVE
To build on the positive leadership examples, a select group of prominent past and present African leaders who met over the last year decided to confront the continent’s pathology of poor leadership with deeds as well as words. At the conclusion of a series of private meetings(the final one of which was held in Mombasa, Kenya), they established the African Leadership Council, promulgated a Code of African Leadership with 23 commandments, issued a Mombasa Declaration promoting better leadership,and proposed a series of courses to train their political successors in the art of good government.Members of the council believe that absolute standards of leadership are both appropriate and attainable. Good leaders deliver security of the state and of the person, the rule of law, good education and health services, and a framework conducive to economic growth. They ensure effective arteries of commerce and enshrine personal and human freedoms. They empower civil society and protect the environmental commons. Crucially, good leaders also provide their citizens with a sense of belonging to a national enterprise. Conscious that Africa’s poor are getting poorer and that good governance is essential for successful economic development, the council sees itself at
the vanguard of fundamental reform in the continent. Its approach certainly goes far beyond the New Partnership for Africa’s Development (nepad) and proposals for the African Union. The Code of African Leadership, for example, says in its first commandment that leaders should “offer a coherent vision of individual growth and national advancement with justice and dignity for all,” implying that most leaders today do not. Other commandments demand that African leaders encourage “broad participation,” adhere to the letter and spirit of their national constitutions (especially term limits), encourage dissent and disagreement, respect human rights and civil liberties, strengthen the rule of law, promote policies that eradicate poverty and improve the wellbeing of their citizens, ensure a strong code of ethics, refuse to use their offices
for personal gain, oppose corruption, and bolster essential personal freedoms. This uncommonly bold agenda seeks to avoid renewed patrimonial leadership debacles, such as those presided over by Mobutu Sese Seko in Zaire, Moi in Kenya, Idi Amin in Uganda, and Jean-Bedel Bokassa in the Central African Republic. The council is highly conscious,too, of the hijacking of Zimbabwe’s government by Mugabe, which has resulted in starvation and drastically reduced living standards.The council is chaired by former President Sir Ketumile Masire of Botswana and includes former Nigerian head of state General Yakubu Gowon,Vice President Moody Awori of Kenya, former Prime Minister Hage Geingob of Namibia, and a dozen other present and former prime ministers and cabinet ministers from Sierra Leone to Kenya, Malawi, and Uganda. All are regarded throughout Africa as men of unusual personal probity and esteem and as accomplished proponents of good governance. The council intends to recruit additional members from the ranks of Africa’s outstanding democratic leaders, Francophone and Anglophone, female and male. Together they will serve the continent by advising international organizations, individual countries, and donor agencies on how to improve leadership. The group stands ready to assist civil societies in countries undergoing serious leadership crises. It will also urge greedy national leaders to attack corrupt practices and adhere to term limits (the current presidents of Gabon, Malawi, Namibia,Uganda, and Zambia, for example, have all had pangs of desire for illegal third terms). Next year(2005), it expects to begin holding special seminars for cabinet ministers and others. The council’s curriculum emphasizes constitutionalism, the rule of law, ethics, accountability,diversity, good fiscal management, coalition building, and the fundamentals of modern micro- and macroeconomics. Training courses will soon be launched.Whether the efforts of the African Leadership Council will reduce bloodshed,diminish corruption, and encourage more prosperity for citizens across Africa is by no means certain. But as a unique African response to the continent’s immense needs, this innovative endeavor is a promising, dramatic step forward.

By
Robert I. Rotberg

Reprinted with permission
Copyrighted 2004 Council on Foreign relations Inc. All Rights Reserved

Ethan Zuckerman writing about his recent visit to iHub Nairobi:

Kenya’s not just part of the narrative behind Ushahidi, a platform used globally but developed by Kenyans to respond to a domestic political crisis. Kenya matters because it’s one of the places where the future of technology is coming into focus, where a generation of creative people are building the future, one experiment at a time. iHub makes sense because it’s the physical manifestation of the creative collaboration that took Ushahidi from idea to project to platform within months. I had to go to Nairobi before I really got it. And now I don’t want to leave.

Image via WikipediaIndigenous methods of conflict resolution make a strong international debut. Scott Baldauf at CS Monitor examines the role of elders in the recent Kenya crisis:

At a time when Kenya's angry "young turks" were whipping up the emotions that fed violence, these African elders had the calming influence of a stern grandparent, in front of whom one doesn't misbehave.
"I came in at a time when there was so much mistrust," recalls Koffi Annan in an interview later. "The two blocks had dug in. One felt they had won the elections fair and square, the other maintained 'you stole it.' "
"With that sort of attitude, getting them to come together, and getting them to begin to think of coming together, and ... thinking in terms that we are all Kenyans and we are one Kenya, and we need to work together to put it back together, was not an easy task," he says with a large dose of understatement.Today, five months later, an uneasy alliance is holding...[continue reading]

The FT writes about the impact of Kenya's political turmoil on investor perceptions:

The explosion of violence that has met Mwai Kibaki’s disputed election in what was considered one of Africa’s most stable countries threatens to undermine not only Kenya’s reputation but also the continent’s.Charlemagne Capital, an emerging market specialist, said Kenya’s place “at the centre of the renaissance in eastern Africa seemed assured”. The worst-case scenarios for the country now threatened to “wipe it off the map from the point of view of international investors”.

Michael Holman writes in the FT about the Kenyan political crisis:

For the outside world, Kenya has been the acceptable face of Africa: a safe destination for a million tourists a year from Europe, Asia and North America to the country of surf and safari; a reliable base, in a tough neighbourhood, for a burgeoning aid industry; regional headquarters for the United Nations; and – less well-known – a country whose military pacts with the US and Britain have made it a crucial ally in the “war against terror”.

They did not believe it was ultimately in their interests to have a showdown with the barons of corruption. They did not want to upset what they saw as a regional “island of stability” from which the UN and other international relief agencies, including hundreds of foreign non-governmental organisations, operate – a thriving business that accounts for a fifth of Kenya’s annual foreign exchange earnings.

The NYTimes reports on a regional infrastructure initiative:

Kenya and Uganda plan to build a new railway from the Indian Ocean port of Mombasa to cope with increased trade among the East African countries and their landlocked neighbors, officials said. The two countries are now served by a meter-gauge track built at the turn of the 20th century and officials say it carries less than 6 percent of freight destined for Kenya’s interior and countries in the region...[continue reading]

From the TED website:

Joseph Lekuton, a member of Kenya's parliament, tells the story of his own extraordinary education, and then a parable of how Africa itself can grow. His message of hope for Kenya in particular has never been more relevant.

CS Monitor reports:

Just a few weeks ago, Kenya remained an oasis of stability surrounded by nations at war. The tourist-friendly country is East Africa's economic engine, a hub for global trade, and a base for international humanitarian work. It has been a been a model of what other African countries could achieve if they worked hard, developed their economies, and embraced free democracy. So the explosion of violence that has left more than 750 people dead – including more than 100 in the past few days – and forced a quarter-million to flee their homes since the disputed Dec. 27 presidential election came as a shock to many. But under the placid surface, Kenya boils with deep ethnic resentment that some observers say has been ignored for too long.

Mired in grinding poverty and social destitution, Africa cries for help. A cacophonous galaxy of rock stars, anti-poverty activists, and heads of state are calling on the G-8 countries to cancel Africa’s $350 billion crippling foreign debt and double aid to the continent. British Prime Minister Tony Blair will make aid to Africa the centerpiece in Britain's presidency of the G-8 meeting in Gleneagles, Scotland in July. Live 8 is planned for July 2. After meeting with President Bush on June 10, modalities are being worked out to cancel at least $34 billion in debt of 27 of the world’s poorest nations, mostly African. Will this African Marshall Aid Plan work?

Africa’s plight follows a ten-year attention deficit cycle. Every decade or so, mega-plans are drawn up and rock concerts held to whip up international rescue mission for Africa. Acrimonious wrangling over financing modalities ensues. Years slip by, then a decade later, another grand Africa initiative is unveiled. Back in 1985, there was Live Aid and a “Special Session on Africa” held by the United Nations to boost aid to Africa. Then in March 1996, the U.N. launched a $25 billion Special Initiative for Africa. In September 2005, the plight of Africa will again take center-stage at a U.N. conference with clockwork precision. Expect another major initiative for Africa in 2015.

Helping Africa of course is noble but has now become a theater of the absurd – the blind leading the clueless. A recent IMF study estimated that Africans in the diaspora remit $32 billion annually back to Africa, with the main destinations being Ghana, Nigeria, and Kenya. About $7 billion is sent to southern Africa (Ghana News Agency, Accra, May 31, 2005). The amount Africans abroad remit back exceeds the $25 billion Tony Blair seeks to raise.

Nigerian President Olusegun Obasanjo says corrupt African leaders have stolen at least $140 billion (£95 billion) from their people since independence. The World Bank estimates that 40 per cent of wealth created in Africa is invested outside the continent. Even the African Union, in a stunning report last August, claimed that Africa loses an estimated $148 billion annually to corruption – or 25 percent of the continent's Gross Domestic Product (GDP). Rather than plug the huge hemorrhage, African leaders prefer to badger the West for more money. And the West, blinded by its own racial over-sensitivity and guilt over the iniquities of the slave trade and colonialism, obliges. This is the real tragedy of Africa.

Between 1960 and 1997, the West pumped more than $450 billion in foreign aid – the equivalent of four Marshall Aid Plans – into Africa with nothing to show for it. Contrary to popular misconception, foreign aid is not free but a soft loan. Outright debt relief and massive inflow of aid without any conditionalities, safeguards or monitoring mechanisms is absurd. It is akin to writing off the credit card debt of a drunken sailor and allowing him to keep the same credit cards. No African government has been called upon to give a full public accounting of who took what loan and for what purpose since many of Africa’s foreign loans taken in the past were misused and squandered. No government official has been held accountable; instead, irresponsible past borrowing behavior is being rewarded.

More distressing, much of the new aid money will flow directly into an African government budget – a huge black maze of vanishing tax receipts, extra-budgetary expenditure items, perks and off-budget “presidential privy accounts,” redolent with graft, patronage and waste. Over the past few decades, African budgets have careened out of control. State bureaucracies have swollen, packed with political supporters. Back in 1996, 20 percent of Ghana's public sector workforce was declared redundant by the Secretary of Finance and Guinea’s 50,000 civil servants were consuming 51 percent of the nation's wealth. In Kenya, civil service salaries take up half the budget; in Uganda, it is 40 percent. Zimbabwe has 54 ministers; Uganda with a population of 35 million has 70, while Ghana, with a population of 22 million, has 88 ministers and deputy ministers. With bloated bureaucracies, soaring expenditures and narrow tax bases, budget deficits have soared.

They are covered with World Bank loans and foreign aid (Ghana’s budget is 50 percent aid-financed and Uganda’s is 60 percent). If the aid is insufficient, the rest of the budget shortfall is financed by printing money. Even when is aid available for “budgetary support”, there is no guarantee that it will be used productively to generate a return to repay the soft loan. It could well be “consumed” when it pays for the salaries of civil servants. Writing off Uganda’s debt does not eliminate the aid dependency. In fact, when the World Bank canceled $650 million of Uganda’s debt in 1999, the first item President Yoweri Museveni purchased was a new presidential jet!


British Prime Minister thinks he can cajole or browbeat African leaders into curbing corruption and ensuring that resources released by debt relief are put to some good use – such as increased spending on education and health care. But the push for good governance and reform must come from within – from African civil society groups, organizations and the people. However, in country after country, chastened by diabolical restrictions, these groups have no freedom or political space to operate.

Carlos Cardoso, an investigative journalist, was murdered in November 2000 for uncovering a bank scandal in which about $14 million was looted from Mozambique's largest bank, BCM, on the eve of its privatization. The official in charge of banking supervision, Antonio Siba Siba, was also murdered while investigating the banking scandals. Such was also the fate of Norbert Zongo, a popular journalist in Burkina Faso, who was gunned down on Dec 13, 1998, while investigating official corruption. In September 2001, President Isaias Afwerki closed down all the independent media and arrested its staff, quashing calls for democratic reforms. In all, the government shut down eight private newspapers and arrested its journalists, picking them up in their newsrooms and homes and from the streets. They were held in a central jail until April, 2002, when they threatened to begin a hunger strike to protest their detention. They were then transferred to an undisclosed location.

In neighboring Ethiopia, President Meles Zenawi, a member of Tony Blair’s Africa Commission, just held fraudulent elections. Anticipating public outrage, he banned street demonstrations for one month and assumed full control of the country’s security forces. When the opposition rallied to protest the results dribbling in, the police opened fire, killing 26; opposition leaders have been placed under house arrest. Witness the election machinations in Egypt.

The paucity of good leadership has left a garish stain on the continent. Worse, the caliber of leadership has distressingly deteriorated over the decades to execrable depths. The likes of Charles Taylor of Liberia and Sani Abacha of Nigeria even make Mobutu Sese Seko of formerly Zaire look like a saint. In an unusual editorial, The Independent newspaper in Ghana wrote: "Most of the leaders in Africa are power-loving politicians, who in uniform or out of uniform, represent no good for the welfare of our people. These are harsh words to use on men and women who may mean well but lack the necessary vision and direction to uplift the status of their people (The Independent, Ghana, July 20, 2000; p.2).

The crisis in leadership remains a major obstacle to poverty reduction and has many manifestations. It is characterized, among others, by the following dispositions and failings: The "Big Man" syndrome, subordination of national interests to personal aggrandizement, super-inflated egos, misplaced priorities, poor judgment, reluctance to take responsibility for personal failures, and total lack of vision and understanding of even such basic and elementary concepts as "democracy," "fairness," "rule of law," "accountability," and "freedom" -- among other deficiencies. In some instances, the leadership is given to vituperative utterances, outright buffoonery, stubborn refusal to learn from past mistakes, and complete absence of cognitive pragmatism.

Believing that their countries belong to them and only them only, they cling to power at all costs. Their promises are worth less than Al Cappone’s. They stipulate constitutional term limits and then break them: Angola, Chad, Gabon, Guinea, and Uganda. African leaders themselves drew up a New Economic Partnership for Africa’s Development (NEPAD) in 2001, in which they inserted a Peer Review Mechanism (PRM), by which they were to evaluate the performance of fellow African leaders in terms of democratic governance. What happened? To be fair, they acted in reversing the “military coup” in Togo in February but went on vacation when elections were stolen in Zimbabwe and Togo.

Ask them to cut bloated state bureaucracies or government spending and they will set up a “Ministry of Less Government Spending.” Then there is the “Ministry of Good Governance” (Tanzania). They set up “Anti-Corruption Commissions” with no teeth and then sack the Commissioner if he gets too close to the fat cats (Kenya) or issue a Government White Paper to exonerate corrupt ministers (Ghana in 1996). To be sure, multi-party elections have been held in recent years in many African countries but the electoral process was so contumaciously manipulated to return incumbents to power. Four such “coconut elections” have so far been held this year: Zimbabwe, Togo, Congo (Brazzaville), and Ethiopia.

Ask them to place more reliance on the private sector and they will create a Ministry of Private Enterprise (Ghana). Ask them to privatize inefficient state-owned enterprises and they will sell them off at fire-sale prices to their cronies (Uganda). Or ask them to move a foot and they will demand foreign aid in order to do so. In 2003, some 30,000 ghost names were discovered on the payroll of the Ministry of Education, costing the government $1.2 million a month in salaries heisted by living workers. When Ghana demanded foreign aid to purge the payroll of these ghost names, Japan coughed up $5 million.

The reform process has stalled through vexatious chicanery, willful deception, and vaunted acrobatics. Only 16 out of the 54 African countries are democratic, fewer than 8 are “economic success stories,” only 8 have a free and independent media.

No amount of debt relief and increased aid will help Africa until Africa cleans up its own house. But the leadership is not interested in reform. Thus, without new leadership and genuine reform, debt relief and increased aid would compound Africa’s problems and more African countries will implode. The continent is stuck in a veritable conundrum. What can Western donors do?

Smart aid would do one of two things. One, bypass the vampire state and target the people, who produce Africa’s real wealth. An African economy consists of three sectors: the traditional, informal, and the modern sector. The people who produce Africa’s real wealth – cash crops, diamonds, gold and other minerals – live in the traditional and informal sectors. Meaningful development and poverty reduction cannot occur by ignoring these two sectors. But in the 1960s and 1970s, much Western development aid was channeled into the modern sector or the urban area, the abode of the parasitic elite minority. Industrialization was the rage and the two other sectors – especially agriculture – were neglected. Huge foreign loans were contracted to set up a dizzying array of state enterprises, which became towering edifices of gross inefficiency, waste and graft. Economic crises emerged in the 1980s and billions in foreign aid money were spent in an attempt to reform the dysfunctional modern sector. Between 1981 and 1994, for example, the World Bank spent more than $25 billion in Structural Adjustment loans to reform Africa’s dilapidated statist economic system. Only 6 out of the 29 “adjusting” African countries were adjudged to be “economic success stories” in 1994. Even then, the success list was phantasmagoric. Ghana, declared a “success story” in 1994, is now on HIPC life-support system.

At some point, even the most recklessly optimistic donor must come to terms with the law of diminishing returns: That pouring in more money to reform the modern sector is futile. Greater returns can be achieved elsewhere – by focusing on the traditional and informal sectors.

Second, smart aid would empower the African people (African civil society groups) to monitor how the aid money is being spent and to instigate reform from within. Empowerment requires arming the African people with information, the freedom and the institutional means to unchain themselves from the vicious grip of poverty and oppression.

Africa already has its own Charter of Human and Peoples’ Rights (the 1981 Banjul Charter), which recognizes the right to liberty and to the security of his person (Article 6); to receive information, to express and disseminate his opinions (Article 9); to free association (Article 10); to assemble freely with others (Article 11); and to participate freely in the government of his country, either directly or through freely chosen representatives in accordance with the provisions of the law (Article 13). Though the Charter enjoins African states to recognize these rights, few do so. When President Thabo Mbeki called on June 3, President Bush should have handed him a signed copy of this Charter to be delivered to President Robert Mugabe of ‘Zimbabwe.

The institutional tools Africans need are an independent central bank (to assure monetary stability and stanch capital flight), an independent judiciary (for the rule of law), a free and independent media (to ensure free flow of information), an independent Electoral Commission, an efficient and professional civil service, and a neutral and professional armed and security forces.

Recent events in Ukraine (November), Ghana (December), Zimbabwe (March), Lebanon (April), and Togo (April) unerringly underscore the critical importance of these institutions. Without them, President Bush’s plan to spread democracy may stall. Democracies are not built in a vacuum but in a “political space” in which the people can air their opinion, petition their government without being fired on by security forces and can choose who should rule them in elections that are rigged by electoral commissions packed with government goons.

On May 13, thousands of Egyptian judges, frustrated by government control over the judiciary, agitated for full independence from the executive in their oversight of the electoral process. “The institutions are presenting Mr. Mubarak with an unexpected challenge from within, one that will be difficult to dismiss. The fact is, major changes in this country are going to come out of those institutions, not from the streets," said Abdel Monem Said, director of the Ahram Center for Strategic Studies in Cairo.

In the past 24 years, Egypt has received more than $55 billion in U.S. aid in direct government-to-government transfers. Smart aid would assist civil society in instigating institutional reform. Since this approach carries some risks, the same objective can be achieved by funneling aid through diaspora Africans and their organizations, as was the case with Soviet dissidents during the Cold War.

Africa’s long term growth prospects do not lie in rock concerts and increased dependency on Western aid but on the ability of the African people or civil society groups to instigate reform from within. Assistance to such groups – both at home and abroad – constitutes much smarter aid to Africa than all the LIVE AID concerts Bob Geldof can organize.
______________

The writer, a native of Ghana, is a Distinguished Economist at American University and President of the Free Africa Foundation. His new book is Africa Unchained (Palgrave/MacMillan). This article is culled from his May 10 testimony before the Standing Committee on Foreign Relations of the Senate of Canada.

Twaweza's name means:

...“we can make it happen” in Swahili. It is a new citizen-centered initiative, focusing on large-scale change in East Africa. Twaweza believes that lasting change requires bottom-up action. We seek to foster conditions and expand opportunities through which millions of people can get information and make change happen in their own communities directly and by holding government to account.

From Pambazuka, The Kenyan Section of the International Commission of Jurists (ICJ Kenya) and the Konrad Adenaur Foundation invite contributions to be published in a Special Issue on Electoral Systems Reform in Sub Saharan Africa:

It is increasingly becoming a trend in Africa, that, whilst elections are supposed to anchor and ensure sustainable growth in democracies, in countries such as Kenya and Zimbabwe, elections have become a liability. Instead of institutionalising democracy, they have fueled political instability. Consequently, the essential question is: to what extend do electoral systems and institutions in Sub Saharan Africa turn into political assets and / or liabilities?

My mom passed this one on to me- apparently a group called the We the People Foundation has purchased a full-page ad in The Chicago Tribune today and Wednesday, calling their add an "Open Letter to Mr. Obama." It's described by the foundation as an opportunity for Obama to once and for all clarify whether or not he is in fact a natural born citizen of the United States, and thus able to fulfill the 'natural born citizen' clause of the Constitution of the United States of America.

Take a look at the story here at AOL News.

Although most people feel that Obama's birth certificate is authentic, there are a lot of suspicious things swirling around it that do lead people to question its legitimacy. For example, the certificate claims he was born in Hawaii- if that is so, then how come the Hawaii Dept of Health won't confirm Obama's assertion? How come there are legal affidavits stating Obama was actually born in Kenya. How come Obama's grandmother is recorded on tape saying she attended his birth in Kenya? And how come the Obama campaign posted on the Internet an "unsigned, forged and thoroughly discredited, computer-generated birth form created in 2007"?

If there was no fire and he is clearly naturally born in America, then there shouldn't be all this smoke. Now, it's probably not a full blaze- he probably is eligible to be President through his mother- but there is probably a spark here- doubts about her citizenship, doubts about her marriage, doubts about when he did acquire citizenship, etc.

There have been people who have brought court challenges over this, hoping Obama would just produce an undoctored original version of his birth certificate to reporters. But he won't, and the court challenges are thrown out of court because asking people to follow the Constitution is considered 'frivolous' by liberal judges. Other similar lawsuits have also been filed.

Here is a Q&A with the We The People Foundation Chairman Bob Schulz:

Q.) What sort of reaction have you received so far to the ads?
A.) We have experienced significant media interest from primarily talk shows and newspapers, including some well-known media entities. We have hoped that our ads would spur public debate on this topic and hopefully, this may have begun. In the end, there is no practical reason why Obama refuses to produce his original birth certificate. He is seeking the Office of President and has a duty to provide evidence that he meets the explicit requirements established by the Constitution.

Eric Osiakwan's AfricaCan lauds the alternative financing mechanism proposed for Kenya's National Fiber Network,commenting on a Balancing Act report that states:

The Kenya Government will have a 40 per cent holding in the project, Etisalat 20% and the remaining 40% will go to investors in the East African region. The Government has said it will organise an IPO on the Kenyan Stock Exchange. Several Kenyan companies have expressed interest and one said that the Government had told them it would “guarantee their loan”.

Thank God the Kenyans are experimenting with this approach where government owns part, private sector owns part, educational institutions should also own part, CSO owns part through IPO on the stock market.
The Kenyan government can actually raise the 40% from government bonds . I am not an expert on the stock market discipline of shares or bonds but this is where the financial experts need to come out with innovative solutions that can help raise much of this money locally - it is possible.

If you've been following the blogs, this information has been out for several months- I believe the Boston Globe broke it months ago, and last week the Times of London picked up on it. But the AP is reporting today that Obama's aunt from Kenya, referred to as "Aunti Zeituni" in Obama's memoir, is currently living illegally in US. Read the story here.

Some things that the AP story does not go into but are relevant. Obama knew about her illegal status and has done nothing. This suggests that he has no respect for our immigration laws and thinks that he is above the law of the United States.

Two, the fact that he has not helped his aunt shows that he no love for his own family members, as he coldly has done nothing to help his aunt, who is illegally living here in abject poverty while Obama has been living a wealthy lifestyle as an influential legislator for several years. He could have given her some welfare and spread his wealth around, or he could have pulled some strings to help her navigate the evils of government bureaucracy- both things that he preaches that he will do as President.

Lack of respect for law and utter cruelty to his own family- that's Obama.