Why would alien Countries name present day Ghana Gold Coast, then abandon gold standard to back their promissory notes with mere printed paper? African currencies used to have some value under their rule before Independence. While they gave Independence, they would not relinquish economic independence. They have been able to exchange African resources with printed paper enhancing what Nkrumah titled Neo-colonialism. We have more American $100 bills outside than inside. Aliens never gave up African gold chase, they expand it to other resources.
Are you then surprised that Ghana have to sell its gold mine to aliens in order to gain economic freedom and become rich as western countries? Ghana is just a case in point, it is true for every African country and how their currencies became 500 or 1000 to one foreign currency. Nigeria’s naira used to be one and a half to one American dollar. Liberalized forex has made it worse!
They have been able to convince many African economists as their proponents to preach liberal market that hardly exist in their countries as a way for Africans to be rich or be threatened with the fate of Zimbabwe dollar. In order words, African countries must open markets to dump expensive finished products made from cheap Raw Materials. The irony is obvious; Africa cannot exchange enough currency or supply sufficient raw materials to buy inflated finished products.
Indeed, there are certain industries that are highly protected in western countries that other companies outside the country cannot buy. When China was allowed into the Rich Club as a trading partner to spite Russia, United States and Europe declared certain companies off limit for sale. Even companies on Bond and Wall streets that are traded daily, have limits and regulations on what can be sold. But African markets must have no limit and left unprotected.
Tsetse fly and malaria had prevented them from invading the rain forest where gold actually came from as they tried to displace the Mossi and Mandinka as middlemen supplier. The British got around that by ship along the coast. Today they resorted to devaluing African currencies to get the same gold, diamond, uranium and other essentials that cheaply subsidize their economy and lifestyle. Mwalimu Nyerere reacted to Pres Reagan when told men should be taught how to fish: how many tons of cocoa do Africans have to work for to buy one tractor in 1960s to 80s?
In spite of the fact that World Bank and International Monetary Fund publicly regretted policy of Structural Adjustment Program in Ghana that devastated and impoverished middleclass, they always find other ways to buy our resources cheap by devaluation. The same way Foreign Portfolio Investors drive African stock markets up and check out. Bitcoin or altcoin is next.
Meanwhile, their markets are heavily guarded and you have to be a member of the rich club to to trade with them. Even within the rich trading club, goods and services are regulated as long as it favors one another. There are always clauses to pull out once it is no longer bearable. United States, the richest debtor in the world has recently threatened to do so with its trading partners. However, African countries must leave their markets wide open for dumping.
They preached liberalized markets to Africans that in most cases only have one or two raw materials to sell. Since they want to buy these raw materials as cheap as possible, they asked each African country to devalue its currency. With a little foreign currency, they could buy the biggest farm cheaply. Usually, if you have junk like China to sell to a trading partner, you can devalue your money so that these countries could buy more of your finished faked products.
So, why cry or condemn devalued currency in China that has cheap labor, plastics and imitated fake finished products to sell but encourage devaluation for Africans with REAL raw materials?
When China penetrated the Rich Club with devalued currency so that Europe and American could buy more of their plastics, steel and other manmade finished products competing with their local companies at home, they cried out against China’s manipulation and devaluation of its currency. Recently, China tightened up when their privileged class started using loopholes and abusing devaluation that reduced its foreign reserve. Point is China can control its currency.
If African countries have manmade materials to sell to the Rich Countries Club like Japan and China, there would be no problem devaluing African currency. But African countries have no trading privileges and the only material they can sell are dictated by the rich countries to their detriment because that policy drains and depletes African gold, diamond, uranium, coffee, cocoa etc. Since Africa have the most arable land, they are buying up the cheap arable land too.
It boils down to predatory mentality of exploiting the ignorant and the poor with colo-mentality that appreciate alien products more. The fact that you have well trained Africans in their most prestigious universities as their proponent preaching liberalized market to African countries but not access to Rich Countries Market, worsen the situation. Prime Minister Indira Gandhi it was, that used to preach that India did not want aid but access to western market to trade.
African countries love foreign educated economists or those specializing in principles of African domination theories preached by their alien mentors. They are showered with appointments and awards in foreign countries as if they have delivered a single economic miracle to a single developing country. The younger generation must ask them what exactly it is these economists have done since independence apart from echoing their masters’ voices.
The glut of steel in the world market is an indication why Ajaokuta Steel never actually took off in Nigeria. Russia was called to help build it after the western capitalist countries procrastinated and eventually refused. All countries are looking for where to dump or sell their steel including Russia that never completed the Steel industry in Nigeria. China has been accused in United States of dumping their cheap steel in their market.
The logical way is to make sure raw materials produced in a country has secondary industry to produce finished products. Since 1957 oil discovery, Nigeria oil industry has not been able to fully develop its secondary industry so that all the oil produced and its byproduct like gas are enhanced to the full maximum potential. Therefore, gas is still flared and wasted since western corporate bodies do not see the benefit of making an African country less dependent on them.
Written by Farouk Martins Aresa