We are developing the social individualist meta-context for the future. From the very serious to the extremely frivolous... lets see what is on the mind of the Samizdata people.

Samizdata, derived from Samizdat /n. - a system of clandestine publication of banned literature in the USSR [Russ.,= self-publishing house]

Zimbabwean Canutes

What do you do when you have driven your economy off a cliff? Why, you raise taxes.

Zimbabwe’s finance minister has imposed a string of tax rises to bridge a huge spending shortfall and the effects of drought and slum clearances.
A tax on drinks and cigarettes has been increased by 50% and mobile phone airtime will also be subjected to a 22.5% tax, Herbert Murerwa said.

Zimbabwe is beset with shortages of food, fuel and foreign currency, and rampant unemployment and inflation.

An opposition MP said the extra budget showed that the government was “broke”.

The title is a forgivable slur on King Canute who recognised the natural limits of kingship. With reference to ZANU-PF, it is perhaps more acceptable to use the diminutive of his name, which is, of course, Cnut.

Ghana – trouble now but plenty of hope for the future

Franklin Cudjoe, Director of the Ghanaan think tank Imani, who has been visiting the UK in order to contest the nonsense being spouted about how to solve Africa’s problems by Live 8 etc., gave a fingerclickin’ good talk at my home on Friday. The fingerclickin’ being a reference to the amount of money stolen every second – $4,700 – by African governments. My thanks to Helen Szamuely for also reporting on this event.

Ghana sounds like a relatively prosperous and urbanised country, by African standards, and it was interesting to hear an African talking about the complications of airline deregulation and exactly how much members of parliament get paid per day (enough to keep them snugly on board the gravy train, no matter what they may have said at election time), rather than just famine, malnutrition, etc.

The anti-globalisation crowd say that multinational corporations are causing corruption in Africa. Actually, they often find it a huge barrier to trading in Africa. KLM wanted to run some flights from Ghana to neighbouring African countries, but the bribes demanded of them were too extortionate, and they pulled out. Travelling between countries in that part of Africa seems to involve choosing which bunch of state highwaymen you prefer to be shaken down by. It is understandable that, economically speaking, lots of colonial African countries used to look outwards, so to speak, with most of their trade being organised by their colonial masters. It is not so understandable why this is still the pattern.

I asked Franklin who in Ghana he thinks is doing the most to improve the place. His answer was the Ghana Centre for Democratic Development. What Africa needs is good government. And the way to start trying to get good government is to talk and write out loud with anyone who will listen – especially the next generation – about what that is and ought to be. There as here, in enterprises of this kind, the internet has helped

Franklin sounded a lot like Hayek – which is no coincidence, because he talked about how much Hayek had influenced his early thinking – in his insistence upon the intellectual struggle as the first step in trying to achieve anything more concrete. You get nowhere by nagging politicians direct. You have to change the assumptions within which they work. That takes time but it can be done, and by the sound of it he is doing his best.

Michael Jennings pointed out that all over the Far East, lots of those little upwardly mobile trading niches that used to be occupied by the Chinese diaspora are now occupied by the Ghanaan diaspora. Clearly there is nothing wrong with the talents of the Ghanaan people. They just need the right setting to flourish in.

The Guardian says Mugabe is not that bad

I have been waiting for the left to come out in support of Mugabe. After all, they worship Che Guevara, the warmonger and homophobe. They wear CCCP t-shirts even though that regime murdered 60 million people. So I was not at all surprised to read this John Vidal article in The Guardian this week:

It’s open season on the Harare regime and it appears that anyone can say anything they like without recourse to accuracy or reality. Whipped into a frenzy of hypocritical outrage, the EU, Britain and the US, as well as the World Bank – all of which have been responsible for millions of evictions in Africa and elsewhere as conditions of infrastructure projects – have rushed to condemn the “atrocities”.

The vilification of Mugabe is now out of control. The UN security council and the G8 have been asked to debate the evictions, and Mugabe is being compared to Pol Pot in Cambodia. Meanwhile, the evictions are mentioned in the same breath as the genocide in Rwanda and ethnic cleansing in the Balkans – although perhaps only three people have so far accidentally died. Only at the very end of some reports is it said that the Harare city authority’s stated reason for the evictions is to build better, legal houses for 150,000 people.

In other words, the Guardian is saying that Mugabe is not so bad after all. Remarkable.

The changing ideology of rockonomics

At Hyde Park, Dido just introduced as the “African Ambassador for Music from Senegal”, Youssou N’Dour*, who she was “in awe” of, “not just because he has a wonderful voice, but because of his wonderful beliefs”. He came on stage to say:

“The debt cancellation is OK. The aid is OK. But, please, open your markets.”

There will be an awful lot of well-intentioned nonsense given unquestioning, reverential coverage today, with ignorance and platitudes dressed up as profundity. Maybe, however, for perhaps the first time at an event of this type and on this scale, a kernel of truth will wriggle its way onto TV.

I consider this a small but notable victory for the notion that, if you permit free speech and are prepared to tolerate every misguided and moronic idea, eventually the truth will out.

* [edit]: add correct spelling and link.

James Tooley on private sector education in Africa

I am watching a news report on Newsnight, broadcast by the BBC, about private education in Nigeria. The report is the work of Professor James Tooley, who I think is one of the most interesting public intellectuals in the world.

Tooley has been roaming the world in recent years, finding cheap, successful, private schools, which are everywhere outperforming the shoddy state provided schools. Nigeria is no different.

It is one thing to see white blokes in suits saying at some pro free market conference that the private sector is better than the public sector. Watching Nigerian parents explaining the same thing, to a BBC news camera, is something else again.

So why, Tooley is asking, is everyone in denial? There is no global crisis in education. The private sector is supplying higher standards at a fraction of the cost.

Now we are in white blokes discussing it all mode, and Professor Keith Lewin of Sussex University is explaining that what Tooley has spent the last decade scrutinising with his own eyes is all a figment of his, Tooley’s, imagination.

Tooley has the advantage over Lewin. He has been there. He has seen it. He has found schools which, until he and his colleagues found them, nobody not directly involved with the schools in question knew existed. This is market success, says Tooley, and we should celebrate it.

Tooley’s report showed an incandescently eloquent private sector teacher in action. And he also showed a state school teacher in a state school classroom, a classroom filled with state school pupils who were busy trying teaching one another, while he, the state school teacher, was fast asleep at his desk.

Lewin says that this is all a tragedy, because he sees state failure. The state is, or should be, the educator of last resort. Market success is important to Lewin only because as far as he is concerned market success equals state failure, and state failure is bad bad bad. Lewin refers to “his colleagues in Africa”, who agree with him and do not agree with Tooley.

Those, I would guess, would be the state education bureaucrats who, time and time again, do not even realise that there is a thriving educational private sector in their own country, pretty much right under their noses. The government bureaucrats whom Lewin (I suspect) spends most of his African research time communing with, have little idea about this ferment of private education. Insofar as they do know of it, they do not want to know of it, because it makes them feel irrelevant. This is because they are irrelevant. And if they are irrelevant then so is the living that Professor Keith Lewin of Sussex University makes helping to prepare all this state bureaucrats for their careers in state education.

Now Lewin is talking gibberish about why Britain nationalised its schools in 1870. What we have just seen, says Lewin, invites the withdrawal of the state from the provision of all public services. Well, yes.

The thing about Tooley is not just what he says. It is also the sincerity and enthusiasm with which he says it. He will never convert the Lewins of this world. But he does seriously contest what they say, and, just like the numerous private schools which he has found the world over – in Africa, in China, in India, in Pakistan, in fact everywhere he looks – he does it with a fraction of the resources that the Lewin side of this debate now commands.

For more about all this, read this Sunday Times article by Tooley, which I would never have found out about had it not been for the BBC.

The BBC, outrageously biased, rampant supplier of last resort of rampantly pro-capitalist propaganda.

Richard North on Bob Geldof

Richard B. North has a terrific set of articles about the current focus on Africa, debt-relief and poverty brought about partly by the efforts of Sir Bob “keep it off eBay” Geldof. It is fair to summarise that North is not totally blown away with admiration by the scruffy former lead singer of the Boomtown Rats, or indeed with the grandstanding of our own wonderful PM, Tony Blair.

Definitely not the sort of articles one would expect to get on a college degree reading list. How I wish the weblog existed when studying for my degree back in the 80s.

“A Good Working Relationship”

Laziness in blogging is defined as examining the attitude of the United Nations or any other NGO in regard to some humanitarian crisis caused by your common garden dictator. Easy and rich pickings. For this particular example, let us take Robert “Gay Gangster” Mugabe as an egregious example of dictatorial excess and the World Food Programme as your normal international bureaucracy.

In reality, “Mad Bob” has ruined his country, urinated on the poor and used food aid as a tool of oppression and death. In UNWorld, Comrade Bob is a welcome member of the international community. As James Morris, ‘United Nations Special Envoy for Humanitarian Affairs for Southern Africa’ (such a big title for an oh-so important man), stated recently:

Mr Morris said the President told him that Zimbabwe welcomed assistance that was purely humanitarian.

“We have had a very positive discussion with President Mugabe. We have had a very good working relationship for several years. The President said he welcomed food assistance that comes with humanitarian commitment,” said Mr Morris.

He said Zimbabwe and the World Food Programme (WFP), a UN agency, had a good working relationship stretching over several years.

Mr Morris knows that this is the case because Comrade Mugabe is committed to agricultural reform.

The UN envoy said it emerged during his talks with Cde Mugabe that the President was committed to the development of agriculture and ensuring food security in Zimbabwe.

“I thank the President for his commitment to agriculture,” said Mr Morris.

The website of the World Food Programme is slightly better (or worse, if you think that a chink of reality can be damned by faint praise). Their “In Brief” on Mr Morris’s visit to Zimbabwe notes many contributing factors, but the state is not given the starring role it deserves:

Food production in Zimbabwe is affected by several factors, including erratic rains, shortages of inputs such as fertilizer and inadequate tillage.

It is also affected by the spread of HIV/AIDS, which commonly afflicts people in their most productive years.

Moreover, the centralized pricing structure for maize in Zimbabwe creates a disincentive for production above subsistence levels.

However, a key reason for food shortages this year will be drought.

The commercial farming sector, which declined as a result of land reform, previously provided an important stabilising factor in maize production, particularly during years of erratic rains, as the crop was mainly produced by irrigation.

While communal farms traditionally produce the greater portion of food, they are largely dependent on rainfall.

This post is the product of laziness or the United Nations is a turkey shoot! Take your pick!

Africa’s real enemies

There is an excellent article in the print version of The Economist describing the situation in the Congo.

That’s the Congo. Private cellphone networks work and private airlines work because the landlines do not and the bush has eaten the roads. Public servants serve mostly to make life difficult for the public, in the hope of squeezing some cash out of them. Congo is a police state, but without the benefits. The police have unchecked powers, but provide little security. Your correspondent needed three separate permits to visit the railway station in Kinshasa, where he was stopped and questioned six times in 45 minutes. Yet he found that all the seats, windows and light fixtures has been stolen from the trains.

I put this paragraph up for all those people who have not experienced this sort of thing first hand and cannot accept that the single biggest obstacle to ending poverty in Africa is the nature of African nation states. Until that changes, sending aid under all but the most controlled circumstances is more often than not either subsidising the very people who cause the problems in the first place or, at best, flushing 90¢ on the dollar down the toilet in terms of helping the people you really want to benefit from your largess.

The solution? Good question, but it sure as hell is not more of the same. In Africa even more than most other places, truly, the state is not your friend.

Three cheers for eBay

Sir Bob “Make Poverty History” Geldof is getting the vapours over the fact that tickets for his various supposed poverty-relief events have been put up for sale on that symbol of dark, rampant capitalism, eBay. In particular, he seems all upset that a big corporation like eBay should make any money from such a highminded event.

Horsefeathers, is all I can say. eBay, in my view, contributes vastly more to the sum total of human happiness and welfare than that preening stage army of hasbeens, wannabees and well-intentioned nitwits that have clustered around Sir Bob. As has already been recounted in detail here, Sir Bob Geldof is a man of infuriating contradictions, able to talk with piercing clarity and lack of cant about the corruption of African governments and yet also willing and able to spout the cheap pieties that seem to accompany many a post-colonial guiltfest such as Live8.

If Africa’s economy were run with the same brio, dash and entrepreneurial brilliance of eBay, Sir Bob and his ilk would have to spend a little more time on what they supposedly do best.

UPDATE: thinking this through in the light of watching Geldof on the television, I can certainly applaud his desire to steer as much revenue to the poor of the world as possible but there seems no awareness on the part of the Live 8 crowd that what Africa needs is precisely the sort of business acumen of which eBay is a modern example.

UPDATE 1: eBay has blocked sales of such tickets on its pages, according to the BBC.

President Mbeki’s brother: only the private sector will make Africa rich

Moeletsi Mbeki, the brother of South Africa’s President, says that the private sector is key to modern economic development in Africa. But, he says, African leaders and Western donors are holding it back. On the website of his organization, the South African Institute of International Affairs, he argues that:

foreign donors could play a more constructive role than they are doing at present through their current efforts to sustain the political elites and African states with budgetary support and the like.

Instead of giving more money to African governments, Mbeki says donors should providing the expertise to help establish independent financial institutions like credit unions and savings banks and help shield them from political elites.

Moreover, African governments need less power and the private sector more:

Africa’s private sector is predominantly made up of peasants and secondly, of subsidiaries of foreign-owned multinational corporations. Neither of these two groups have the complete freedom to operate in the market place because they are both politically dominated by others – non-producers who control the state. Herein lay the weakness of the private sector in Africa that explains its inability to become the engine of economic development. Africa’s private sector lacks political power and is therefore not free to operate to maximize its objectives. Above all, it is not free to decide what happens to its savings.

→ Continue reading: President Mbeki’s brother: only the private sector will make Africa rich

Rewarding vice and punishing virtue

The decision to write off billions of dollars in debt for various Third World nations is in effect a subsidy for bad governance. Oh sure, the debt relief is tied to various conditions aimed at improving the kleptocratic ways that are the norm in the world’s various hellholes, but it is still just a way of saying that in the final analysis it is western taxpayers yet again who will be the ones picking up bill for the actions of various corrupt WaBenz bureaucrats.

And what of those poor nations who actually do repay their loans? What of those who keep corruption under control and who have a ruling class that does not see private businesses as a personal piggy bank to be raided as needed? What message is sent to them when they see the incompetent and corrupt rewarded with free money so that some celebrity activists can make economic illiterates feel good about themselves?

Which brings me to Geldof. I just cannot figure out this guy; on one hand he says self-evident sensible things like (emphasis added):

Bob Geldof admitted today no amount of aid to Africa could eradicate poverty on the continent while its Governments remain corrupt. The former singer was launching a 170-page compact summary of the Africa Commission’s report which will be presented to the G8 summit this July.

And the maverick Irishman repeated his call for ‘hundreds of thousands’ to converge on Edinburgh to coincide with the summit at Gleneagles. He said: “The issue governance is at the forefront of this compact. You can’t give aid to countries when they return it to us in debt payment, especially if you don’t allow them to trade with us. None of that will function unless there is a decent Government.”

But then says something as preposterous as:

Fears over corrupt African regimes should not be used to delay aid to the poverty-stricken continent, Bob Geldof said yesterday. Less than 48 hours after both Tony Blair and George W Bush insisted that corrupt regimes had to be tackled to ensure that aid was not wasted, the Live 8 organiser told them to “get off the corruption thing” and deliver the promised help.

So what is one to make of that? By his own admission, Africa’s appalling governance is a huge contributing factor to poverty and woe (not to mention the continent’s horrific record regarding civil liberties) yet we are urged to “get off the corruption thing”. So to use Geldof’s sort of language… what the fuck?

If governance is perhaps the single biggest factor (amongst several) that makes the Third World so damn poor, surely the Western taxpayers whose money Geldof is to keen to give away should indeed be asking if they really want their money to end up in someone else’s Swiss bank accounts via Kinshasa or Freetown.

Sadly for Africa, most of the things written about the causes and solutions of poverty in the Third World, or at least the articles that get serious column inches, are drivel by ‘celebrity activists’ who are ill-informed and arrogant in equal measure. A prime example being the mind numbingly ignorant Chris Martin for example, who thinks ‘shareholders’, the people who provide the capital to wealth creating businesses, which are the “great evil of this modern world” rather than, say, the governments of North Korea, Cuba and Burma. But then such folks do not concern themselves with actual benefits to poor people in various far off places but rather with pithy soundbites and causing emotional surges brought on by ‘doing something’, regardless of whether or not it actually improves anything for anyone other that a few Mercedes Benz dealers in sub-Saharan Africa and some portfolio managers in Zürich.

No, none of this really has anything to do with helping common people in the Third World.

Resistance growing in Zimbabwe

A general strike now… will it evolve into more forcefukl resistance to Mugabe’s thugs? I certainly hope so but do not underestimate the violence that Mugabe and his cotery will use to hang on to power (and their lives).