Photo Below is of Zambian Vice President Guy Scott Capitalism and Privatisation is good for the west and others but dangerous for Africa. Case study Zambia. Zambia is one of the worlds largest copper belts, actually copper accounts to over 70% of Zambia GDP and revenues. In the early 90s, IMF and world bank serviced Zambia with so much loans just as they do every resource rich country. As soon as they noticed the Zambian government was not gonna be able to pay back the loans, the IMF & World bank came up with their predictable move of arm twisting Zambian government to privatize all their mining & resources. This move so european companies take ownership of almost all mine fields without paying any single taxes claiming that they were offsetting it from their investments. In the last 10 years alone Zambia has lost about 50 billion dollars worth of revenue because of privatization of their copper fields which benefit european countries more than it does Zambia. In Africa is common to see the most resource rich countries are also the poorest because they dont have ownership of their resources. Same privatization is whats hindering growth in SA where there are immense resources but its all owned by foreigners who make the money and stash it in switzerland or other european countries or America where they have more allegiance. With all these privatization we are poised to lose it all, once you privatize and the western companies takes over the mining rights, there is nothing you can do and any move to alter than would result into a REGIME CHANGE. Capitalism is also very bad for a resource rich continent like Africa. With the push for capitalism and greed of 30 millionaires and 30 million beggars, Africans even those in the village we find out that even that river flowing in your village has beed bought by some water corporate company and your cows, goats even camels wont drink from it without paying a fee. We have to be very smart or its for us all to lose what is rightfully our birth right. Even though Zambia is starting to see some positive growth with restructuring of the government, they could be doing even better than Angola had they not privatized their copper mines since Zambia is known to be a very democratic and peaceful country. When you nationalize your resources the whole country has a claim to it, when you privatize the resources then its each person for themselves (selected few) over resources that should be beneficial to the country as a whole.
Posted on: Fri, 14 Mar 2014 05:48:23 +0000
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