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[Fwd: [a16-international-planning] South Africa news...]

by Chris Chase-Dunn

30 May 2000 15:33 UTC





Missed the action? See the video!

> > glad to see you are coming and with good comrades. unfortunately i am
> > going to be in salt lake city on important business leaving tuesday nite
> > and return monday the 17th. i feel bad about missing the action but it
> > could not be otherwise. aslso that i will not see you. i was on a local
> > radio program yesterday debating a guy from the bank. i think that went
> > well.
> > you nix and i will fix it.
> > chriscd

Anyone in Washington this Thursday? Don't miss this event!

------- Forwarded Message Follows -------
From:          "Michael Albert" <sysop@zmag.org>
To:            <znetcommentary@tao.ca>
Subject:       ZNet Commentary / May 29 / Patrick Bond / South Africa
Film

If you pass this comment along to others, please include an
explanation that Commentaries are a premium sent to Sustainer Donors
of Z/ZNet and that to learn more about the project folks can consult
ZNet (http://www.zmag.org) and specifically the Sustainer Pages
(http://www.zmag.org/Commentaries/donorform.htm.

And here is today's ZNet Commentary Delivery from Patrick Bond.

-----

New Film Projects South African Anti-Globalisation Struggle Onto
Washington By Patrick Bond

Those in the Z community anxious to hear organic voices from the South
debating global socio-economic injustice are probably aware that South
African rhetoric is especially hot these days. For evidence, check out
the documentary "Two Trevors Go To Washington," which gets its US
premier at noon on June 1 at the Institute for Policy Studies in
Washington.

The stars, Trevor Ngwane and Trevor Manuel, are both elected officials
of the South African government, but their perspectives on the
mid-April World Bank/International Monetary Fund (IMF) protests are
antithetical.

Ngwane is a humanist, rastafarian, street- fighting socialist from
Soweto who can claim two decades of intensive organising in unions,
community groups, the student movement and the African National
Congress.

Likewise, Manuel is a former activist from Western Cape townships who
boasts only a community- college degree in civil engineering but who
became so exceptionally talented at talking the talk that he was
recently named chair of the Board of Governors of the IMF and World
Bank. As SA finance minister since 1996, Manuel is credited with
jawboning African National Congress (ANC) constituents into
acquiescence to a failing structural adjustment programme which was
partially designed by Bank economists.

Independent filmmaker Ben Cashdan followed the two around for a week,
and in the process recorded a titillating, Pilgeresque unveiling of
global-local power relations.

The documentary may therefore serve as an antidote to SA president
Thabo Mbeki's US tour de force last week. Mbeki's appearances at
Ebenezer Church in Atlanta, Howard and Georgetown Universities in
Washington, the White House and the Bay Area received rave reviews, in
part because the news from Africa is usually filled with images of
barbarism.

And indeed Mbeki did two good things: attacked the World Bank, IMF and
World Trade Organisation at the World Affairs Council in San
Francisco, and finally began a partial climb-down on the indefensible
AIDS-drug policy adopted in the wake of his previous health minister's
courageous anti- corporate stance on pharmaceutical pricing last year
(watch this space in a month for more).

Mbeki told several hundred business executives, "Many of us are
punished by the development and trade structures in place, which
benefit the wealthy countries that wrote them and continue to impact
negatively on us." Yet in the same breath he also called for a
"broad-based development round at the WTO to address these issues"--in
direct contrast to African WTO delegates and social movements who have
consistently opposed any new round prior to an assessment and
"turnaround" on numerous existing disputes.

Mbeki's and Manuel's "talk-left, act-right" approach is a source of
enormous frustration for local activists. Ngwane, Jubilee 2000 SA and
the Campaign Against Neoliberalism in SA are debating how to implement
strategies and tactics similar to those described so well for US
activists in Bob Naiman's Z- Net commentary last week.

To this end, the documentary serves as a great educator and
confidence-builder. Filmed for SA Broadcasting Corporation's
investigative show "Special Assignment"--and screened nationally here
in early May (and at Covent Garden's Africa Centre in London on May
22)--the story takes us from Soweto's dusty Pimville district,
represented by city councillor Ngwane, to what are now weekly activist
workshops on globalisation in decaying central Jo'burg, to Manuel's
office suite in Cape Town, to myriad sites of confrontation in
Washington.

Any of the 30,000 folk who supported the Mobilization for Global
Justice will recognise and celebrate the drama of protest preparation
and the human-scale commitments evoked by demonstrators from both
South and North. The radical-participatory democracy in the
spokescouncil meetings and the Convergence Center creativity had
Ngwane gasping in delighted disbelief, "This is where the revolution
is being constructed, man!"

In return, he teaches crowds the uniquely South African activist
war-dance, the toyi-toyi, to his chant: "The World Bank! Haai! Is the
Devil! Haai haai!"

But the film also offers an insider-peek at Bank president James
Wolfensohn, acting IMF managing director Stanley Fischer (who was born
in colonial Zambia and raised in Cape Town) and British finance
minister Gordon Brown, who together pile up the fibs for public
consumption but let down their hair amongst friends.

Manuel, for instance, claims in an interview that one of his key
objectives is to wrest away the veto power the US exercises over the
IMF and Bank with its 17.8% shareholding (an 85% majority is required
to override vetoes). Responding in the next clip, as guests tuck into
an expensive lunch, Wolfensohn giggles conspiratorially: "This is a
problem I'll have to leave to my successor. If I did raise it, I'm
sure I would get a quick successor, harh harh harh!" Manuel laughs
too, as if it's all just a rhetorical game.

Which it is for these big boys, unaccustomed--as Global Exchange's
Kevin Danaher (the hilarious narrator of protest logistics throughout
the film) puts it--to having their snake-like institutions dragged out
from under the rock for all to see.

Sometimes you catch them in honest moments, like Fischer circling his
finger while conceding to Brown in a tet-a-tet that "We had to go
around and around" the 90-block cordoned no-go zone before finding a
way past the protesters early on the main lockdown day, April 16.
Brown then steps up to the podium and lies: "We didn't hear the
protesters and we got in as normal."

Next comes the unmistakable growl of the BBC's Richard Quest, who pops
the question to Fischer: "How worried are you that the word
globalisation is becoming a dirty word? The IMF does seem to be losing
the PR battle." Smirking, Fischer concedes, "I think the word
globalisation could become a problem. But the process it represents...
that process is fine."

How has the film gone down in South Africa? ANC bigwigs are
predictably defensive. "It is very fashionable for people to say that
the macroeconomic policy of the country was dictated by the
International Monetary Fund or the World Bank," complained the party's
general-secretary, Kgalema Motlanthe, a few days later in a Mail and
Guardian newspaper interview.

The verb "dictate" insinuates unwillingness, and so may be a red
herring. Pretoria and Washington enjoy a revolving door that leads
deep into the Department of Finance, as witnessed not only by Manuel's
role but that of other bureaucrats who move seamlessly between the
World Bank, Pretoria and the Johannesburg banks.

One of Wolfensohn's top deputies, just appointed to head the Bank's
social development division, is Mamphele Ramphele, once a radical
black-consciousness associate of Steve Biko but more recently
president of the University of Cape Town where she broke the staff
union during a massive outsourcing drive.

No matter that some forget their roots in search of top Bank jobs,
struggle history remains crucial. Going back a few decades, it is easy
to understand why so many South Africans remain furious at the Bank
and IMF.

To illustrate, a National Reparations Conference opened by Archbishop
Njongonkulu Ndungane in early May resolved to demand the World Bank
and IMF repay black South Africans for apartheid loans. From 1951- 67,
the Bank lent Pretoria more than $200 million, about half of which
went to support electricity generation in dirty coal-fired plants. Yet
black townships and rural areas were denied electricity due to
apartheid.

As late as 1966, the Bank granted $20 million in apartheid loans even
after Albert Luthuli and Rev. Martin Luther King called for
anti-apartheid financial sanctions. In 1986, the Bank again busted
sanctions by indirectly lending to Pretoria, via the Lesotho Highlands
Water Project, using a special London trust fund account to accomplish
the stunt.

The IMF continued its apartheid lending into the early 1980s,
including $2 billion in loans after the Soweto uprising began hurting
Pretoria's credit rating. After the IMF was prohibited from lending by
the US Congress in 1983, it continued to give the apartheid state
economic advice: to adopt "neoliberal" (free market) policies during
the late 1980s and early 1990s, including privatization, extremely
high interest rates, export-oriented strategies and the unpopular
Value Added Tax.

After liberation in 1994, little changed. Quite a con game is needed
to disguise the elite-pacting process. Continued Motlanthe in the
interview, "We're not accountable to the IMF or World Bank, as we have
not borrowed from them."

Someone forgot to inform the ANC leader of the December 1993 $850
million IMF loan signed by the interim government, known as the
Transitional Executive Council (TEC), purportedly for "drought relief"
(18 months after the drought ended). That loan bound Pretoria to
cutting government deficit spending (from 6.8% to 6% of GDP in 1994)
and reducing wages.

Perhaps Motlanthe doesn't know because the conditions were kept secret
until a Business Day leak in March 1994. That newspaper's top
financial journalist concluded that "The Reconstruction and
Development Programme [RDP, the ANC's populist campaign platform] and
the TEC statement of policies to the IMF are arguably the two most
important clues on future economic policy... The ANC, in signing the
statement of policies to the IMF, committed itself to promoting wage
restraint." The progressive sections of the RDP were subsequently
ditched.

Motlanthe was also not told, apparently, about a $46 million World
Bank loan to promote exports in 1997. Nor does he know of tens of
millions of dollars invested in South Africa by the Bank's private
sector subsidiary, the International Finance Corporation. These
include stakes in Dominos Pizza, in for-profit healthcare, in housing
securities to make high-income people's homes more affordable, and in
infrastructure privatization, none of which fight poverty (and all of
which add a US dollar liability to South Africa's stressed current
account).

More importantly, dozens of Bank missions have given policy advice to
post-apartheid government departments. The missions invariably promote
"market- oriented" strategies which undermine the positions of the
poor, women and children, the elderly, disabled people and the
environment.

To illustrate, the first major policy paper that the Bank contributed
to was the Urban Infrastructure Investment Framework, in late 1994.
That document called for pit latrines, not proper toilets, for
households with an income of less than $110 per month, who account for
a quarter of urban residents and nearly two fifths of rural folk.

The logic was simple: as water prices rise to market levels, poor
people can't afford to flush. Denying the poor even a small amount of
water--the RDP calls for a free 50 liters per person per day
"lifeline"--can only be done by pushing people into segregated pit
latrine settlements far away from town and job opportunities.

The Bank's 1999 "Country Assistance Strategy" bragged about its
"instrumental" role in post- apartheid water pricing policy. One Bank
economist egged on the government to approve cutoffs of household
water supplies, which increased to unprecedented levels beginning in
1997.

What does this mean on the ground, in Trevor Ngwane's Soweto
constituency? In Johannesburg, the city manager budgeted to spend
millions of dollars on pit latrines last year, using municipal
privatization proceeds. Ngwane fought the privatization and pit
latrine policy, and for his troubles was suspended from the ANC (for
which until last September he served as regional chairperson). Ngwane
is currently an independent councillor, enjoying extremely strong
grassroots support but facing local government elections in November
against a hostile Johannesburg ANC.

The problems Ngwane describes are not limited to ongoing
socio-economic indignity and a new kind of apartheid based not on the
race line but the water and sewage line. In addition, public health
and environmental hazards are emerging. North of Pretoria, a similar
early 1990s pit latrine plan led to dramatic outbreaks of cholera and
typhoid because of the E.coli bacteria, which enters the water table
through excrement.

For that reason, Jo'burg's privatization framework--"Egoli 2002,"
after the Zulu translation for City of Gold--was redubbed by Ngwane
and trade unionists as E.coli 2002. Thanks to the Bank, whose top
Pretoria staff and consultants are also advising Jo'burg on
privatization, Africa's richest municipality is fouling the
environment and threatening the public health, and in the process
transferring more caregiving responsibilities and costs to women.

The same development disaster is underway in rural areas, where Bank
advice was central to the failed land redistribution plan adopted in
1994. Instead of 30% land redistributed, as the RDP mandated, the ANC
government achieved less than 1%, because the minister--subsequently
fired--followed the Bank's free-market logic even in a context of the
worst inequality in the world.

The identical land distribution problems Zimbabwe currently faces are
now being seeded in South Africa, with the same Bank staff doing the
gardening, on parched, free-market lines.

The two Trevors went to Washington to make these global-local links,
which Mobilization for Global Justice protesters understood in their
gut and can now view in very personal terms.

***

Patrick Bond (pbond@wn.apc.org) is affiliated to the Alternative
Information and Development Centre (http://www.aidc.org.za). For
information about the video, contact Ben Cashdan at bcashdan@igc.org




 



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