Extracting profit : imperialism, neoliberalism and the new scramble for Africa

A piercing historical explanation of poverty and inequality in African societies today and the social impact of resource-driven growth, __Extracting Profit__ explains why Africa, in the first decade and a half of the twenty-first century, has undergone an economic boom. Rising global prices in oil and minerals have produced a scramble for Africa’s natural resources, led by investment from U.S., European and Chinese companies, and joined by emerging economies from around the globe. African economies have reached new heights, even outpacing rates of growth seen in much of the rest of the world. Examined through the lens of case studies of the oil fields of the Niger River Delta, the Chad-Cameroon Pipeline and the East African infrastructure boom, this period of “Africa rising” did not lead to the creation of jobs, but has instead fueled the extraction of natural resources, profits accruing to global capital, and an increasingly wealthy African ruling class. __Extracting Profit__ argues that the roots of today’s social and economic conditions lie in the historical legacies of colonialism and the imposition of so-called “reforms” by global financial institutions such as the World Bank and International Monetary Fund. The chokehold of debt and austerity of the late twentieth century paved the way for severe assaults on African working classes through neoliberal privatization and deregulation. And while the scramble for Africa’s resources has heightened the pace of ecological devastation, examples from Somalia and the West African Ebola outbreak reveal a frightening surge of militarization on the part of China and the U.S. Yet this “new scramble” has not gone unchallenged. With accounts of platinum workers’ struggles in South Africa, Nigerian labor organizing and pro-democracy upheavals in Uganda and Burkina Faso, __Extracting Profit__ offers several narratives of grassroots organizing and protest, pointing to the potential for resistance to global capital and fundamental change, in Africa and beyond. Front Cover 1 Acknowledgments 8 1. Intro & overview 10 1.1 Myths & realities of African 'underdevelopment' 16 1.2 The Marxist approach 20 1.3 The importance of Walter Rodney 25 1.4 The book ahead 37 2. Legacies of Colonialism 41 2.1 Past matters: Poverty in Africa today 41 2.2 Weak states & economic development 48 2.3 Lopsided economies 51 2.4 Imperial objectives in the Cold War era 54 2.5 National development 63 2.6 Nationalism and its limitations 68 3. Neoliberalism: Crisis, Debt, and Structural Adjustment 71 3.1 Origins of neoliberalism & debt crisis 74 3.2 Neoliberalism's arrival in Africa 76 3.3 Cuts to social programs 81 3.4 Economies geared for export & deindustrialization 83 3.5 Loss of capital controls 86 3.6 Net creditor to the world 87 3.7 Poverty & broken promises 89 3.8 Legacy of G8 Gleneagles Summit 98 3.9 Instability and civil war 102 3.10 Critique of Washington Consensus is not enough 106 4. “Rising Africa” 108 4.1 Financing for underdevelopment 110 4.2 Trade & economic agreements in neoliberal Africa 114 4.2.1 AGOA 114 4.2.2 EPAs 116 4.2.3 NEPAD 117 4.3 Open for business 118 4.4 Enter China: Dynamics of imperial competition 121 4.5 Second continent 126 4.6 LAPSSET Project - Land Grabbing 132 4.7 Africa rising myths & reality 137 4.8 Booming growht & diverse economies 138 4.9 African 'middle class' 142 4.10 End of poverty? 144 4.11 African boom 147 5. The New Scramble for Africa 151 5.1 Global boom & Africa's allure 155 5.2 Rising demand in unstable world 158 5.3 Features of Africa's new scramble 162 5.4 Capital-intensive extraction 163 5.5 Weak regulatory environment 169 5.6 Environmental hazards 172 5.7 Niger Delta - their oil & ours 176 5.8 Extraction in Africa 185 6. Resource Curse or Resource Wars? 187 6.1 Commodity crash & crisis 187 6.2 Resource curse & democracy deficit 192 6.3 Overcoming the resource curse: Chad-Cameroon pipeline 198 6.4 Transparency & good governance 202 6.5 Quantifying corruption 208 6.6 Kimberley Process & Dodd-Frank 210 6.7 Widening instability 212 7. Militarism and the Rise of AFRICOM 214 7.1 Marxism & imperialism 214 7.2 Cold War imperialism in Africa 217 7.3 Humanitarian intervention 221 7.4 Somalia & Operation Restore Hope 227 7.5 Secret bases & drone warfare: Obama in Africa 237 7.6 China's expanding military footprint 247 7.7 Ebola & militarization of social crisis 250 7.8 Competition & conflict 254 8. Class Struggle and Permanent Revolution 257 8.1 Permanent revolution 263 8.2 Point of extraction and beyond 266 8.3 Marikana massacre 269 8.4 Left's challenges 276 8.5 Challenging capitalism 278 Selected Bibliography 282 Notes 287 1 287 2 289 3 292 4 297 5 305 6 310 7 315 8 322 Index 325 A Historical Explanation Of Poverty And Inequality In African Societies Today And The Social Impact Of Resource-driven Growth, Extracting Profit Explains Why Africa Has Recently Undergone An Economic Boom Alongside Widespread Militarization. This Exploitation Has Not Gone Unchallenged, However. The Book Recounts Various Narratives Of Grassroots Organizing And Protest, From Platinum Workers' Struggles In South Africa And Nigerian Labor Organizing To Pro-democracy Upheavals In Burkina Faso. It Points To The Potential For Resistance To Global Capital And For Fundamental Change, In Africa And Beyond. Introduction And Overview -- Legacies Of Colonialism -- Neoliberalism : Crisis, Debt, And Structural Adjustment -- Rising Africa -- The New Scramble For Africa -- Resource Curse Or Resource Wars? -- Militarism And The Rise Of Africom -- Class Struggle And Permanent Revolution. Lee Wengraf. Includes Bibliographical References (pages 257-323) And Index. Provides a historical explanation of poverty and inequality in African societies today and the social impact of resource-driven growth, Wengraf explains why Africa has recently undergone an economic boom alongside widespread militarization. This exploitation has not gone unchallenged, however. Wengraf recounts various narratives of grassroots organizing and protest, from platinum workers' struggles in South Africa and Nigerian labor organizing to pro-democracy upheavals in Burkina Faso. She points to the potential for resistance to global capital and for fundamental change, in Africa and beyond. --From publisher description A piercing historical explanation for poverty and inequality in African societies today, and social impact of resource-driven growth.