--- Other Trade Links ---

:- World Trade Organisation

:- The Harvard Global
   Trade Negotiations Page

Tandon’s 15-point summary perspective of two day SEATINI workshop with Ugandas parliamentarians

1. “We can do it”. Don’t allow a sense of defeatism to paralyse action.

2. The philosophy of Realism sometimes leads to defeatism.  We must be realistic (for the world out there is real), but don’t let the odds out there overwhelm you. The “out there” can be challenged and changed.

3. The objective of development is Transformation, not simply Adaptation.  Defy existing power, not meekly conform and comply.  The main purpose of donor aid and technical assistance is to get Africa to adapt, conform and comply.

4. The Transformative philosophy is Visionary in the long run, and Practical in the short run.  There are many practical ways of defeating the system (see later). The Vision provides the Direction; the sense of the Practical provides the Means.

5. In the present global context, the long-term vision should be an Alternative Development Paradigm to the currently dominant and moribund Capital-led globalisation (witness collapse of Argentina, the country in the third world that is most “integrated” in the globalised economy).  An essential paradigm shift at the economic level is from the current Export-Led Growth (ELG) strategies (IMF/World Bank/WTO strategies) to a Domestic Demand Led  (DDL) strategies. ELG strategy subordinates human needs and human rights to Corporate greed and corporate profit.  DDL puts the needs and rights of the people upfront.

6. In the Medium Term (15-20 years), Africa’s only real option is to undertake a deliberately planned, phased, sequenced, and realistic withdrawal from the presently exploitative and totally unfair global system. The sequenced withdrawal should be based on national, regional and continental unity. Relink with the world when Africa is stronger. (China and India can negotiate with the Empire from a position of relative strength.  Fragmented Africa cannot.  It must first unite).

7. In the short and immediate term (starting today), delay the process of further integration into the global system to allow time and space to plan, to breathe, to dream.  Refuse to get on to the “fast track” of globalisation led by the IMF, WB, and the WTO.  Slow down the juggernaut of the WTO and Cotonou, and such other “partnership” schemes, for the globalisation train is crushing the poor in Africa under its wheels. Make the political leaders sitting in the First Class compartment of the globalisation train accountable to the people lying on the tracks. This is what real democracy consists of. (Ask them to step out of their luxury compartments and talk to the people on the tracks, and ask their views on what “development strategy” should be).

8. There are practical ways of slowing down the train.  For example, refuse to continue with Cotonou negotiations until studies (that the European Commission promised to finance but never did) are carried out on the implications of various options.  Refuse to continue with WTO negotiations (for example, on the Singapore issues) until the West has fulfilled their promises undertaken at Marrakesh (called Implementation Issues).  Demand compensation for the damage that the dumping of subsidised beef and cereals from Europe is causing to Africa’s economy. Demand of the West that they abandon double standards and hypocrisy, whereby protectionism and subsidies are good for them but bad for Africa.  Above all, refuse to sign agreements under the WTO without first understanding and analysing the implications. Unlike agreements made with the IMF and the World Bank those made under the WTO are not reversible, and are subject to judicial process of the WTO and unilateral sanctions by the powerful against the weak. (Avoid the mistake of Uruguay Round, which African leaders signed without debate in African parliaments or consultation with the people).  Dont be fooled by the so-called “theory of comparative advantages”.  It is a textbook invention of antiquity, and has little relevance to reality.  Today, 70% of world trade is intra-TNC trade. Free trade is a myth.  The theory of comparative advantage is replaced by the theory of comparative subsidies.  The bigger the subsidy, the bigger the clout in the global trade.
9. Realism demands avoiding recklessness. Don’t poke fingers in the eyes of the Empire, for the Empire will crush you (Avoid getting into an Iraq situation).  But passive submission to the Empire allows the Empire to crush you anyway.  There can be no genuine “partnership” between the Empire and the Colonies. That kind of partnership is between the fast-track train and the people lying on the tracks.  Don’t defy recklessly; don’t submit passively.

10. You cannot negotiate with the Empire when you depend on it for aid and capital. (How can you negotiate with the Empire when over 50% of your budget is funded by it?) There is more capital outflow  from Africa than inflow. Plug the outflows. Inflow of capital in a leaky bucket leaves no possibility for Domestic Capital Accumulation (DCA).  Remember Harry Belafonte: “There is a hole in the bucket. So fix it”.  Plug these holes before asking for capital and aid from outside.

11. The main source of development finance is Domestic Savings that, in the case of Africa especially, are mostly externalised through massive debt payments, transfer pricing, corruption and secular decline in Terms of Trade.  Plug these four holes, and Africa would not need foreign Money-Capital (see below for other forms of capital that we do need).  Refuse to pay all illegitimate debt (75% of Africa’s debt is illegitimate). Demand return of Africas looted wealth stored in West’s banks.  Demand compensation for colonial loot (Israel has successfully secured compensation for the massacres of the 1930s in Europe, why cant Africa?)   Africa does not need money capital from outside if it can plug all the leakages, refuse to pay illegitimate debt, and secure even 10% return of the colonial loot.

12. FDIs (foreign direct investments) are the biggest hoax of the century. In order not to “shy away” or “scare” FDIs most African leaders have timidly allowed their people to lie on the tracks of the train in the illusion that FDIs will bring “growth” which will then “trickle down” to the poor. Trickle down theories are based on flawed logic and on an inadequate understanding of the structure and processes of global economy. Meantime the train moves on, crushing the poor in its tracks.  The Structural Adjustment Programmes (SAPs) have failed and abandoned.  The Poverty Reduction Strategy Papers (PRSPs) are only disguised SAPs with “NGO participation”.  People are asked to be authors of their own exploitation.

13. Africa needs not Money-Capital, but some technology and knowhow.  Unpackage FDIs. FDIS are a bundle of money-capital (or finance capital), technology, knowhow, management, inputs, and market knowledge all tied up with a string of conditionalities.  Accept only those conditions that do not constrain policy options and national independence.  Use local knowledge and local resources instead of imported ones. Avoid foreign “experts”.  (When you encounter official IMF/WB/WTO/OECD “consultants” or “advisers” in your Government ministries or the Central Bank, or EAC/SADC/COMESA offices, hide; better still, run from the scene). Purchase appropriate technology off the shelf. Avoid patented technology.  (For example, produce generic drugs under compulsory licensing and parallel importing provisions of TRIPS instead of patented drugs).  Protect Africa’s knowledge, bio-diversity and communal ownership agreed under the CBD (Convention on Bio-Diversity), and refuse patenting of life-forms (provided for under TRIPS). Don’t swallow GMOs; you are mortgaging the health of future generations to unknown diseases (such as Ebola).

14. Tell our Governments that if they continue with current globalisation, they are crushing the people.  There is another form of globalisation alternative globalisation based on putting the needs and human rights of the people above corporate profit and greed.  

15. Stop the train.  Slow down the juggernaut.  Another world is possible. Another Africa is possible.  Another Uganda is possible.

Yash Tandon is the Director of SEATINI and Editor of the Bulletin.