Africa in the Global Economy: Capital Flight, Enablers, and Decolonial Responses (Advances in African Economic, Social and Political Development)

This book discusses the role played by powerful global institutions such as the IMF, the World Bank, the World Trade Organisation, multinational corporations, and the international credit rating agencies in keeping Africa marginalised in the world economy. The book focuses on the intrusive roles of these institutions as enablers and beneficiaries of capital outflows and financial subordination in Africa. Diverging from the official narrative that touts China and the other emerging economies as global reformers that are poised to partner Africa in its fight against financial subjugation, the book instead argues that, like the Western powers, the emerging economies are benefiting prodigiously from a rigged global financial system that keeps Africa as a net creditor to the rest of the world. The book draws its theoretical framework from the repressed heterodox theories including dependency, core-periphery, world systems and Marxist theories as well as the decolonial approach. It concludes with a call for a decolonial African agency that should champion an epistemic rebellion against the neo-liberal and neo-classic economic traditions that have been historically deployed to justify Africa’s subordinated position in the global economic governance. This book comes at moment in time when Africa is ready to become a Rule Maker not a Rule Taker. The analysis Dr. Moyo presents having been in the front line of public policy and international negotiations demonstrate the need for Africa to re-write the rules to foster our own Transformation. Jason Rosario Braganza, Executive Director, African Forum and Network on Debt and Development (AFRODAD) Acknowledgements About the Book Contents About the Author Abbreviations and Acronyms Chapter 1: Introduction: Entrapment of Africa in an Asymmetrical Global Economy Introduction The Rigged Global Financial Architecture Paradox of Wealth and Poverty Global Coloniality Financial Liberalisation Outline of the Chapters References Chapter 2: Multinational Corporations and Tax Havens as Beneficiaries of a Shadow Financial System Introduction Shadow Financial System Spotlighting the Tax Havens Multinational Corporations (MNCs) Implications of MNCs-Tax Havens Lukewarm Global Responses Towards Delinking Approaches Conclusion References Chapter 3: World Bank, IMF, and WTO as Agents of Financial Imperialism Introduction Gatekeepers of Global Capitalism Agents of Capital Flight “Reforming the Global Financial Institutions” A Decolonial Turn Conclusion References Chapter 4: The Tyranny of International Credit Rating Agencies (ICRAs) Introduction International Credit Rating Agencies in Context The Logic Behind Expanded Footprint of ICRAs Politics of Credit Rating Agencies Global Architecture of Unfairness Implications of Ratings on African Economies A Case for a Pan-African Credit Rating Agency (PACRA) Conclusion References Chapter 5: Global Financial Subordination and the Pathologies of Sovereign Debt Introduction International Financial Subordination Agents of Financial Subordination and Debt Slavery The Bane of Debt Servicing Wrong Diagnosis and Wrong Prescription Towards a Radical Transformation Conclusion References Chapter 6: Imperial Ecocide and the Bane of Global Climate Finance Introduction Imperial Ecocide: Accused Number 1 Imperial Ecocide: Accused Number 2 Global Climate Finance Imperialism Climate Finance Debt Traps Cost of Climate Crisis Contradictions of Global Climate Solutions Conclusion References Chapter 7: Africa and the Age of Global Elite: The Davos Class Introduction Global Elites Global Elite Interconnectedness The World Economic Forum (WEF) Davos Class in Africa Corporate Capture Towards an Anti-Systemic Global Decolonial Approach Conclusion References Chapter 8: African Elites as Clients of the Offshore World Introduction Africa’s Elite in Perspective Elite Capture and Mechanics of Collaboration African Elites and the Offshore World Classic Examples of Elite Corruption Implications to the Ordinary People Conclusion References Chapter 9: Conclusion: A Canvass for a Decolonial African Agency Introduction International Financial Subordination Contradictions Posed by the Emerged and Emerging Global Powers Epistemic Delinking and Decolonial Agency Global Solidarity Conclusion References Index