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Steakholders vs Smallholders: The Political Economy of Kenya’s Sugar Industry

Western Kenya’s sugar industry has a productivity problem. Fortunate to have been given several reprieves by COMESA, growers, millers and policymakers have still been unable to move away from the protectionist thinking on which the industry was originally built. But time is running out. Can the industry survive without state protection? By DAVID NDII.

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Steakholders vs Smallholders: The Political Economy of Kenya’s Sugar Industry.

Kenya’s sugar industry circus continues. Late last year, the government formed a task force to look into the industry’s never-ending woes. Last week, a farmers lobby group formed a parallel task force, which is already convening in western Kenya and collecting views. The government has dismissed the private task force, and vice versa. Farmers seem to be behind the private one. Ironically, both are talking the same language— reviewing law and policy.

For more than a decade now, Kenya has been granted reprieves by the COMESA trade block to reform its sugar industry. Last year, the reprieve was extended for a further two years to 2020. The COMESA region has some very competitive sugar producers including Sudan and Malawi. Kenya runs a huge trade surplus with COMESA. Kenya’s excuses are wearing thin. This time round, the trade block set up a committee to supervise the implementation of the deal.

It is a tall order. Kenya’s sugar industry has a productivity problem. This has two components, low farm productivity and low sugar recovery. We have the lowest cane yields in the COMESA region (and the other COMESA countries have some of the highest yields in the world). The recovery rates are between 9 and 11 percent, that is, a tonne of cane produces between 90 – 110 kilos of sugar, while western Kenya manages to recover only 6 percent.

Why are cane yields in western Kenya so low? Simply put, this is because cane sugar production is a land and capital intensive crop. Western Kenya smallholders are land and capital poor. They don’t have the capital to invest in irrigation and high tech agronomy, or the scale to make such investments pay off. We do not leave the country to benchmark. Kwale International Sugar, the Mauritian investors who revived Ramisi Sugar report that they are harvesting 60 tonnes per hectare on rain fed cane, and 140 tonnes per hectare on irrigated fields. They describe their irrigation system as a “state-of-the art technology that includes a sub-surface drip-fed irrigation system which delivers 40 percent water saving.

We have the lowest cane yields in the COMESA region…the other COMESA countries have some of the highest in the world…

Assuming the rest of the agronomy is the same, irrigation alone more than doubles the cane yield. In fact, at 60 tonnes per hectare the rain-fed yield in Kwale is the same as western Kenya. However, cane at the coast matures faster, 12 months as compared to 15 to 18 months in western. This makes for significant productivity differences. In western, it translates to 120 tonnes per hectare over a three year cycle, which brings down the average annual production per hectare to 40, while in Kwale the yield and annual production remain at 60 tonnes per hectare. So, though we have 220,000 hectares planted, we only harvest 80,000 a year on average, which is just over a third of the planted acreage. To see the difference this makes, we produce on average 600,000 metric ton of sugar on 200,000 acres (440,000 acres) of land. Mauritius produces a similar about of sugar on 72,000 hectares (158,000 acres).

In economics, we think of resource allocation in terms of opportunity cost. The economic value of an industry is what it produces over the next best alternative use of the scarce resources that it employs. Kenya is a land-poor country. Only a third of the land is arable without considerable investment in irrigation and land improvement. The sugar belt is some of Kenya’s most productive rain-fed cropland. If the land under sugarcane could be made as productive as tea, it would generate $1.3 billion ( Sh.130 billion) at current exchange rates, compared to US$ 180 million worth of sugar currently.

By misallocating resources, western Kenya is losing KSh 100 billion worth of agricultural productivity. As a country we are losing more. Average ex-factory price of sugar is currently quoted at KSh 4,000 per 50-kg bag (KSh 80 per kilo) which translates to US$ 800 per tonne. Sugar is trading at about $280 a tonne, or KSh 30 per kilo in the world market. Kenyan consumers are paying more than double the world price. With current consumption at 80 kilos per household, the sugar industry protection works out to KSh 4,000 per household per year. If we were buying sugar at the world price, the savings would be enough to buy every Kenyan household a kilo of meat every month.

By misallocating resources, western Kenya is losing KSh 100 billion worth of agricultural productivity.

We pay western Kenya more than double the world price of sugar, but it has not made the region prosperous. All the public sugar companies are insolvent. The government and stakeholders continue to go round in circles. Waswahili have a popular saying “ukiona vialea vimeundua” (ships/vessels float because they are build to), meaning there are reasons why things are what they are.

After independence, the government set about identifying cash crops that smallholders could grow in the different “high potential” agro-ecological zones. Central Kenya had coffee, tea and pyrethrum. The white highlands had their cereals and dairy. In line with the import substitution industrialization strategy of the time, sugar and cotton were identified as ideal cash crops for the lake region. It is the misfortune of western Kenya that both crops were unsuited for a smallholder out-grower production system. To be sure, it is pure good luck that tea turned out to be suited for the model. In fact, the World Bank strongly advised the government against it, as there was no precedent of smallholder tea production anywhere in the world.

The sugar industry thrived behind the tariff barriers of import substitution industrialization. But by the mid-seventies, the structural and economic challenges that now plague the industry were already in place. Prof. Stephen Mbogoh, one of the country’s leading agricultural economists, who studied the sugar industry for his doctorate observed:

“At the macro-level planners are interested in other aspects of an enterprise, besides the profitability aspect. The potential for an enterprise to create employment in Kenya, particularly in the rural areas, is an important consideration. Cane production is found to be the most profitable enterprise, but it does not generate as much capacity for absorbing the rural unemployed as the alternative enterprises.” (Mbogoh, Stephen Gichovi. An Economic Analysis of Kenya’s Sugar Industry with Special Reference to the Self-Sufficiency Production Policy PhD Thesis. University of Alberta. 1980)

Sugarcane Yields - metric tonnes/hectare

Mbogoh’s analysis showed that sugar had the highest income per worker, but the lowest job creation potential of the competing alternatives (See table). But this analysis does not bring the import protection factor to bear. Even then sugar was the most highly protected of the alternatives. From Mbogoh’s data sugar was retailing at KSh. 4.50 per kilo in 1976, which works out to US$ 750 per tonne, against a world price of US$ 250 per tonne— the same as now. If both the domestic resource cost (i.e. the cost of protection) and job creation were taken into account, the maize/groundnut combination would have come out on top. It is worth noting that even with import protection, the maize/groundnut gross revenue is comparable to sugarcane.

After independence, the government set about identifying cash crops that smallholders could grow in the different “high potential” agro-ecological zones. Central Kenya had coffee, tea and pyrethrum. The White Highlands had their cereals and dairy. In line with the import substitution industrialization strategy of the time, sugar and cotton were identified as ideal cash crops for the lake region. It is the misfortune of western Kenya that both crops were unsuited for a smallholder out-grower production system.

From an economic policy standpoint, gross revenue is a more important variable than the net profit because it captures all the incomes generated by an economic activity and not just the profit of that specific enterprise. The difference between gross and net income captures the multiplier effect of an enterprise. In this case, we see that while both sugarcane and the maize/groundnut option have roughly the same gross income, the maize/groundnut options buys 60 percent more (KSh 2,122) than sugarcane (KSh 1,296), which is indicative of a better distributional outcome than sugarcane.

By the mid-seventies, the structural and economic challenges that now plague the industry were already in place.

In summary the policymakers saddled western Kenya with an uncompetitive, capital intensive, low productivity, regressive (i.e. income concentrating) cash crop. One cannot help but wonder whether the predominance of western Kenya migrant labour in Nairobi has something to do with these policy choices.

In all fairness, this was not, as is sometimes insinuated, a conspiracy to impoverish the region. Rather, it was a reflection of the conviction behind import substitution industrialization. Indeed, the import substitution strategy was predicated on “export pessimism” – the idea that primary commodity exporters were condemned to deteriorating terms of trade (purchasing power vis-a-vis manufactured goods) in perpetuity. Viewed from this perspective, western Kenya with its sugar and cotton mills seemed brighter than that of primary commodity exporting central Kenya.

Policymakers saddled western Kenya with an uncompetitive, capital intensive, low productivity, regressive cash crop. One cannot help but wonder whether the predominance of western Kenya migrant labour in Nairobi has something to do with these policy choices.

By the end of the 70s, import substitution had run its course. Subsidies drained government coffers, and the imports of machinery and raw materials required to keep the industries afloat depleted foreign exchange without generating any. In Sessional Paper No.1 of 1986, Economic Management for Renewed Growth, the Moi government acknowledged that it was at the end of the road. Gradual liberalization began then, and ended with a bang in 1993. The textile industry, and cotton farming were wiped out.

But the sugar industry survived. How come? To the best of my knowledge, this question has not received much academic attention, but I have a theory. Cotton was by and large a poor man’s crop. Sugarcane outgrowers are both rich and poor. According to Prof. Mbogoh’s study, large scale outgrowers farming 40 to well over a 1000 hectares accounted for 40 percent of the outgrower acreage, and smallholders with between one and six hectares for the other 60 percent. I suppose that the sizes will have changed as land has become fragmented but the industry structure remains more or less the same.

Liberalization…ended with a bang in 1993. The textile industry, and cotton farming were wiped out. But the sugar industry survived. How come?

Because sugarcane production is capital intensive, the large scale outgrowers are able to achieve higher farm productivity than smallholders, but still benefit from the cane prices that are based on the smallholders cost structure. Moreover, the low husbandry requirements between planting and harvesting makes sugarcane very amenable to “telephone” farming by western Kenya elites. Additionally, the same said elites have preferential access to other business opportunities in the value chain, such as suppliers to the factories and sugar distribution. It is instructive that Mumias, which stands out by not having large scale outgrowers, was the only sugar company that was privatized, perhaps because there were no powerful elites with a vested interest in maintaining the status quo. From this vantage point, the private task force begins to look more like a “steak holder” than a stakeholder initiative.

Because sugarcane production is capital intensive, the large scale outgrowers are able to achieve higher farm productivity than smallholders, but still benefit from the cane prices that are based on the smallholders’ cost structure.

But western Kenya’s sugar industry cannot be protected from competition indefinitely. Sooner or later, the COMESA safeguards will come to an end. If not that, other domestic producers will follow KISCOL and cash in on the high prices with lower costs of production. And as long as the wedge between the international and domestic prices remains what it is, episodes of import deluges will continue to destabilize the industry. The time for western Kenya sugar industry to face reality is now.

Steak holders should let the people go.

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David Ndii

David Ndii is one of Kenya's leading economists and public intellectuals.

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Slaying the Monster: How to Win the War on Corruption in Kenya

The Judiciary is under sustained assault from the Executive branch of government and buck-passing has come to distinguish Kenya’s war on corruption. Beyond the blame games, there exist opportunities for Kenyans to break the yoke of oppressive corruption and chart a new course towards a liberated future argues WILLY MUTUNGA.

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The social cost of corruption in this country is incalculable. It has emptied our ethical contents, hemorrhaged our economy, corroded and destabilized our politics.  It must be confronted directly and boldly, employing the full panoply of instruments of public education, sanction and restitution. Both administrative and legal measures must be summoned in this fight.

One significant but often ignored truth is that fighting corruption is primarily a political project. The political will leading that fight will only succeed if it is credible. Vehemence, however boisterous and loud; righteous but false indignation, however shrill, are all “a tale told by an idiot full of sound and fury signifying nothing.”

We must ponder. Why did wananchi undertake citizens’ arrest of corrupt officers when NARC (National Rainbow Coalition) came to power? Why did harambees, land allocations and the attendant corruption around public land die during the Kibaki years? If the link between harambees and corruption had long been established (see several Transparency International reports on this subject), why did we resurrect them in 2013, sometimes in total disregard of the law that prohibits public servants from conducting them?

The big question we pose, is do the political elite now leading the fight against corruption have the moral standing sufficient to win public credibility? If they do not then how can they win? My view is the lifestyle audit from the top that was promised a year ago would have come close to conferring that credibility. And that credibility will be long in coming until we clear the dark clouds surrounding issues like Eurobond, the Afya House Scandal, Laptop and Medical equipment leasing to name but a few and make public the sovereign debt for debate.

So, which arm of state is the most corrupt?

This is a false question that is at the core of the blame games being played over the “War on Corruption.”

Over two years ago when I still worked in the Judiciary, Hon Duale, the majority leader in the National Assembly and I, had an interesting spat on Twitter. He had posted a tweet decrying corruption in the Judiciary. I retorted that there was corruption in the Judiciary but not the magnitude found in Parliament. I believe very few people would doubt the enormity of corruption in the Executive and Legislative arms. One only needs to read the Auditor-General reports since independence to confirm this.

Historically, whereas the Judiciary has faced its own independent corruption challenges, part of this problem has been driven by the fact that the Judiciary has been an appendage of the colonial and postcolonial Executive. What is not common knowledge is that until 2010, the Judiciary was closely weaved into the structure and organization of government, listed as a Department of the Attorney General’s Office.

Staff were under the public service and the Judiciary was the place where ‘problematic’ civil servants were banished as punishment.

District Treasuries held Judiciary accounts (some are still in their control even though we began the delinking process). Ironically, since the Judiciary never dared stand up to the Executive, it did the latter’s bidding, but also created spaces for it to shake down litigants, the Judiciary well protected by the Executive in this form of corruption.

The state has always known who the corrupt judicial officers and staff are. The incorruptible ones have had to struggle against the pressure of the Executive and other forces to save their integrity. I believe that is the challenge the Judiciary faces in its quest for integrity and independence. Therefore, the issue is not which of the arms ( of government) is more corrupt but rather how the arms and their organs reflect the integrity and independence decreed by the Constitution.

“War on Corruption” is a National Project

For the “War on Corruption” to be operationally successful, it has to be a national project where the entire justice chain must work in coordination and in concert.  This requires that investigation (police), prosecution (Director of Public Prosecution), and the adjudication (Judiciary) should be seamless, effective, incorruptible, and focus on the national interest.

The National Council for the Administration of Justice (NCAJ), which the Honourable Chief Justice chairs, brings together representatives of the Executive (Attorney-General, DPP, Prisons, Inspector-General of Police) and representatives from civil society and the private sector. This provides the institutional framework for the attainment and monitoring of this objective.

It is the arena where approaches to the fight against corruption should be discussed and any outstanding issues resolved. If NCAJ worked properly, the public altercation that we have seen in this fight would not occur. It is the peer review chamber in the administration of justice where each of the agencies can be held to account.

There has been a consistent policy of blame games by the members of this chain for the administration of justice, that does not serve national interest. The investigations are supposed to be as thorough as the prosecution with the Judiciary promising no delays or compromises in its administration of justice. I believe it was also once suggested that the Inspector-General of Police, through the Director of Criminal Investigations, could utilize the services of the lawyers upfront to make sure that all the relevant and admissible evidence was collected. I believe it was also a practice that once the investigations were complete and the suspects given the chance to respond, the Office of the DPP would peruse the file to make sure the charges taken to court were in order and backed by evidence. Bail applications would be dealt with on this basis and there would be no applications for time to complete investigations, secure exhibits and so on. The NYS criminal prosecution (among others) clearly demonstrates the policies of the NCAJ, are not being adhered to.

The integrity of the organs and institutions in the entire chain for the Administration of Justice is premised on the integrity and independence of such organs and institutions. So who protects their independence? It is the organs and institutions themselves, the citizens, and other arms of state, the corporate sector, civil society and international interests.

All these organs and institutions face pressure from different quarters anyway, including ethnic communities, families, friends and other insidious demands. Politicians and their masters, the cartels and foreign interests, do not support the independence and integrity of these institutions and they seek continuously and consistently to capture and enslave them. Rarely, do they talk about their corruption, and politics of division and inhumanity. Indeed, when politicians attack institutions that have integrity they invariably do great job in guarding the integrity and independence of these institutions. The attacks by politicians can be construed as the frustration and failure on their part in their quest to enslave these institutions.

The Constitutional Oath of Office

Officers in the three arms and all organs of the State  swear to uphold the Constitution. Yet as soon as you are sworn in to serve, this duty seems to be constantly and summarily forgotten. Most politicians have not read the Constitution. If they did why would they argue publicly that one cannot be granted bail when charged with murder? Why would they be quiet about the right of appeal against decisions granting or denying bail? I am quite sure they could get basic constitutional education from the learned lawyers if they chose to be honest about the issue of bail. I have heard the two main ‘hand-shakers’ attack the Judiciary on issues of bail. How will they protect the integrity and independence of institutions if they constantly abuse and disrespect them? It seems using the Judiciary as a punching bag is not restricted to presidential petitions and their outcomes. The independence and integrity of institutions have to be nurtured by a culture of respect and dialogue.

The speeches of President Uhuru and the Right Honourable Raila Odinga in the recently concluded Multi-Sectoral National Anti-Corruption Conference profiled the Judiciary as the weakest link in the “War on Corruption.” It is a clearly predictable critique because the investigatory and prosecution processes are in the departments controlled by the Executive. Indeed, for the entire chain in the War on Corruption to work seamlessly and effectively the Executive must respect their integrity and independence. The Inspector-General of Police and the Office of the DPP must resist compromising their integrity and independence as decreed by the Constitution. Every institution under the Constitution has delegated powers from the Kenyan people. Protecting the human rights of the Kenyan people in the processes of investigating corruption and prosecuting it are cardinal considerations to bear in mind. Investigations and prosecutions must never be selective or politically motivated.

The speeches of President Uhuru and the Right Honourable Raila Odinga in the recently concluded Multi-Sectoral National Anti-Corruption Conference profiled the Judiciary as the weakest link in the “War on Corruption.”

It pains me when I hear Right Honourable Raila Odinga subvert the Constitution by arguing that suspects of murder and corruption must prove their innocence. The Constitution provides otherwise. Indeed, he knows that the provisions on bail in part are historically explained by the trials and tribulations he and other patriots went through in the courts captured by the Jomo Kenyatta-Moi-KANU dictatorships. I was shocked by his proposal in the said conference that suspects must prove their innocence and the courts, notwithstanding the provisions of the Constitution, must deny such suspects bail. President Uhuru, himself a beneficiary of soft bail from an international court that enabled him to run and campaign for office, earlier criticized the courts for giving soft bail terms. We are told that the courts must decide based on the will of the Executive notwithstanding the provisions of the Constitution and the Oath of Office taken by all judicial officers to uphold the Constitution and protect it. I hope that both our leaders never rue the day they uttered these words in the future. An independent Judiciary is critical to all politicians, as is indeed, to all citizens.

What has always surprised me is how those who attack and refuse to nurture the integrity and independence of institutions forget that they need those institutions more than the ordinary citizens. If as a politician or a cartel you enslave an institution, what guarantees you that your enemies, once in the same privileged position as you, will not use the institution against you? In this regard, all politicians and other interest groups should not influence (in any way) the integrity and independence of the Judiciary. They will not have to yell from the rooftops that “money has been poured (sic) or we are being finished” when their turn comes to answer the crimes they have committed. Judiciaries are temples of justice where the oppressed, discriminated, bullied, tortured, and intimidated run to. You do not want to run there and find your worst enemy at the entrance of the temple of justice!

Paying Lip Service to Corruption

Let us not pay lip service to War on Corruption. Let us not be selective in the prosecutions. Let us be consistent in our narratives in support of the War. What became of lifestyle audits that would start from the very top of our political leadership? Why, in the observation of the constitutional values of integrity, transparency, and accountability should we not make accessible all management and loan agreements, and details of our sovereign debt? Why do citizens have to go to court under Article 35 (freedom of information) of the Constitution to get these agreements and details? What is being hidden from the Kenyan public? It is on the basis of this disclosure that we can have a national dialogue on what these debts are, and who will ultimately pay for them.

I believe some are not even legally recoverable.

Under the 2010 Constitution, the State cannot live to its historical reputation of “Siri Kali/Vicious Secret” on matters of finance, security, investments, and the use of people’s resources. Kenyans must still demand the implementation of the Constitution in its entirety in their quest to change our unacceptable and unsustainable status quo.

The War on Corruption in Kenya is also an intra-elite struggle about looting, succession, corruption, and how fruits of corruption are shared. The War is also about struggles between national cartels and foreign interests. Like any other war it is an industry where profits are found in buying elections, oiling the machinery of state violence, and investing the ill-gotten gains internally and externally. The corrupt have no loyalty to any country or relationship. The elite hate the people they rule. How does one view all these merchants of death in any other way? The so-called illicit economy (money laundering, piracy, terrorism, human trafficking, trafficking in human body parts, counterfeit, corruption, wildlife crimes) co-exists with legitimate ones – there is no distinction. Legal corruption (such as exploitation) is a twin of illegal corruption reflected in the illicit economy. Ultimately, a system that puts profits before people controls and owns both legal and illegal corruption.

Under the 2010 Constitution, the State cannot live to its historical reputation of “Siri Kali/Vicious Secret” on matters of finance, security, investments, and the use of people’s resources.

The War on Corruption must extend to foreign interests and forces (economic, social, military, financial, communications and surveillance, the entire system of imperialism of the West and East) if the War is to be won.

What can we do in the short-term?

Political leaderships the world over and the interests they serve (economic, social, military, financial) are the root cause of corruption. The joint control of resources by leaders and their interests mean that only by bringing, by all means possible, leaderships that are alternative to the current ones can we hope to end corruption, or at least start mitigating it.

In the case of Kenya, we are yet to even occupy the vacuum that exists for authentic opposition. Such opposition is the beginning of this struggle. We have many uncoordinated social movements that need to come together in a national convention against corruption and their delegates elect interim leaders to start the People’s War on Corruption.

This will be a national convention by delegates of all social movements and non-baronial parties and their affiliates. I believe there has been enough discussion on the critiques and consequences of corruption on our development. The national convention should collate and coordinate solutions and actions to achieve them. We have various precedents of national conventions. We had one in Limuru in April 1997. There have been other formats like the one adopted by the Kenya Tuitakayo Initiative.

Public intellectuals will definitely play an important role.

We have many uncoordinated social movements that need to come together in a national convention against corruption and their delegates elect interim leaders to start the People’s War on Corruption.

The convention will also draw a four-year program of activities by social movements and parties and the holding of a yearly national convention. It will have sub-committees to deal with specific issues. I believe all these initiatives can be funded by Kenyans. The convention will determine a funding strategy. And there are many more issues to come out of the convention such as its manifesto, ideology, politics, and membership. It is not rocket science.

The time to end the baronial politics narratives that only the rich who can rule this country is now. The time to reject baronial promises on fighting corruption is now.

We need to protect and secure our national resources. Out of these movements, and political parties that are not captured by baronial elites, a national progressive party can be formed to contest political power over the next ten years. The window of opportunity is now. The time for the politics of issues is now. The opportunity for implementing the Constitution, particularly its fundamental pillars are now. The time to end the baronial politics narratives that only the rich who can rule this country is now. The time to reject baronial promises on fighting corruption is now. This can only be done by political formations that will contest political power and wrestle it away from the barons.

Kenya gained its nominal independence because of the Mau Mau War of Independence and the collapse of the British Empire. There followed the second liberation that resurrected multipartyism. There was the third liberation brought about by the promulgation and implementation of the 2010 Constitution. Together with citizens of the world, we must bring about a humane, peaceful, non-violent and non-militaristic planet that is ecologically safe, equitable, The fourth liberation is about consolidating the gains of all these liberations, rescuing their fundamental weaknesses, and bringing the end of baronial rule in Kenya. just and prosperous.

The fourth liberation is about consolidating the gains of all these liberations, rescuing their fundamental weaknesses, and bringing the end of baronial rule in Kenya.

We in Kenya must start our effort for an alternative world. Let us think freedom and emancipation of our country, our continent, and our planet. To do so we must imagine the defeat of the imperialism of West and East. Such a world cannot exist under these current corrupt systems. Our Constitution’s vision is socially democratic and its implementation will put us into the trajectory of the fourth liberation forming the basis of the fifth liberation to come.

The views expressed are personal to the author and do not in any way reflect those the Office of the Former Chief Justice

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Battle of Ideas: The Social Responsibility of Intellectuals in Building Counter-Hegemonies

In a capitalist society divided into classes, you have broadly two types of intellectuals. There are those who produce rationalizations, justifications and mystifications to maintain and reproduce the status quo of inequality and inequity in favour of capital. Then there are those who question and challenge dominant knowledge and try to demystify and debunk hegemonic forms of knowledge and ideologies. Some go further to produce and articulate alternative forms of knowledge and ideologies to propel the struggle of the ruled, the oppressed and the downtrodden. They are involved in constructing counter-hegemonies. By ISSA SHIVJI

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Battle of Ideas: The Social Responsibility of Intellectuals in Building Counter-Hegemonies

Intellectuals pride themselves as producers of knowledge. They are also articulators of ideologies, a role they do not normally acknowledge. Respectable universities worth the name call themselves sites of knowledge production. I say “respectable” because these days many neo-liberalised universities have abandoned the role of knowledge production in favour of packaging disparate information and branding their “products” (students) to make them saleable on the market. That is a story for another day. Today I don’t want to talk about packaging factories. Today I want to address those intellectuals who still consider themselves producers of knowledge rather than assembly line supervisors of packaging industries.

In a capitalist society divided into classes, you have broadly two types of intellectuals. There are those who produce rationalizations, justifications and mystifications to maintain and reproduce the status quo of inequality and inequity in favour of capital. These are the producers and purveyors of what we call hegemonic ideologies. Then there are those who question and challenge dominant knowledge and try to demystify and debunk hegemonic forms of knowledge and ideologies. Some go further to produce and articulate alternative forms of knowledge and ideologies to propel the struggle of the ruled, the oppressed and the downtrodden. They are involved in constructing counter-hegemonies. Thus there is a battle of ideas. One of the foremost sites of the battle of ideas is the University. Battle of ideas precedes battle at the barricades.

Hegemony by definition means acceptance of an ideology voluntarily, by consent as opposed to, by coercion. It was Gramsci’s great insight that the bourgeoisie rule by mobilising consent through its ideological apparatuses, both in the state (for example, courts) but – and this is important to note – also in civil society, for example, institutions of education, media, CSOs, art, literature etc. The wheels of ideological apparatuses are always churning. They generate and refurbish hegemonic ideologies and make it the ‘common sense’ of the time. During normal times, therefore, the coercion of the bourgeois state does not appear on the surface. It is there – but always in the background. This is the case in normal times. What happens in times of crisis – in times when the underlying capitalist system itself is in the crisis of reproducing itself? It is the crisis that interests me most because, I believe, we are currently in such a crisis of the global imperialist-capitalist system. I will not go into the details of the economics of the crisis because I want to focus more on its ideological expressions.

Battle of ideas precedes battle at the barricades.

Today we are witnessing an upsurge of fascism, narrow nationalisms and parochialism (for short, I’ll call them “new nationalisms”) both in the Centres (the global North) and in the Peripheries (the global South). In the North, rightist parties and formations wave the flag of racism and nationalism against immigrants. Given the electoral victories of the right in recent times, even mainstream center and centre-left parties, fearing the erosion of their electoral base, buy into the anti-immigrant rhetoric. Brexist is one such example; the other is Trump’s laughable but tragic Mexican wall project.

In the South, there is a rise of demagogic and populist leaders who wave the flag of narrow ethnic, racist, religious and parochial patriotism. Modi of India, Duterte of Philippines and Bolsonaro of Brazil, well illustrate populist and demagogic languages. Modi waves the flag of Hindutva which is nothing but an assertion of Hindu supremacy. Inevitably this unleashes street violence against minorities – Muslims, Christians and Dalits. Bolsonaro deploys his populist slogans against Blacks, women and LGBT communities. In Latin America, another Bolsonaro is in the making. This is the gentleman called Juan Guaido who has “democratically” declared himself the president of Venezuela. He is supported by the “champions of democracy” in America and Europe and recognised, among others, by the only “democracy” in the Middle East – Israel. [Please note the term “democracy” and all its derivatives here are in inverted commas.]

Hegemony by definition means acceptance of an ideology voluntarily, by consent as opposed to, by coercion

I’d suggest that the upsurge of “new nationalisms” is a backlash to neoliberalism gone wild. Ironically, neo-liberalism itself paved the path for the rise of “new nationalisms”. Neo-liberal ideologies did not have a long staying power but for some four decades of its rule it caused havoc. Market and monetarism were its mantra. Neo-liberalism attacked bourgeois liberalism in the Centres and assaulted post-colonial, radical and progressive nationalism in the Peripheries. Socially, it rested on individuation as opposed to bourgeois individualism. The best description of individuation comes from Margaret Thatcher who rhetorically exclaimed: ‘Society, what society! There is no such thing as society!’ There are only disparate individuals. Bourgeois individuals stood for rights and obligations. Neo-liberal individuates don’t stand for anything – except for self-enrichment and aggrandizement. They will sell their rights and trample on others’ rights so long as they can “move on”. And ‘obligation’ has no place in their utterly self-centered mindsets.

On economic level, neo-liberalism is based on the endless creation of fictitious commodities and their privatisation. So public goods – education, health, water, energy and air are commodified and owned; so also flora and fauna, mountains, rivers and forests; bio resources and genetically modified life organisms become private property to be owned and traded for profit. Even languages and cultural practices get patented and owned. (Recently Walt Disney took out a patent on the Kiswahili phrase: Hakuna Matata!) Debt, including sovereign debt, becomes a commodity and is traded. Financial oligarchies offer cheap credit – so every one from individuals through households to states borrow heavily becoming indebted. Debt slavery has become a new kind of slavery. We all exist in debt to financial sharks, literally and figuratively. Descartes’ famous saying, “I think therefore I am” becomes “I am indebted therefore I am”. Underlying it all is rampant primitive accumulation by a small financial oligarchy overshadowing ‘accumulation by expansion’ in the productive sphere. Financialisation becomes the name of the game. Fictitious economy takes leave of real economy and begins to believe in self-regulation and self-reproduction. When the hiatus between the real and fictitious economy becomes unsustainable, the bubble bursts like the 2007-2008 prime mortgage crisis in the US that spread like wild fire to other countries. But the state pumps in trillions of dollars to save financial institutions, which duly resume their nefarious transactions. The outcome of the crisis is further concentration of wealth and power in fewer hands.

The wheels of ideological apparatuses are always churning. They generate and refurbish hegemonic ideologies and make it the ‘common sense’ of the time.

Inequality, unemployment, poverty, despair and hopelessness rise as wealth concentrates in a small minority. Angry masses become cannon fodder on which rising fascist and right-wing feed. In the absence of a feasible alternative, this is the way the masses hit back at neo-liberal excesses.

Neo-liberalism was primarily an ideological assault on radical nationalism and its relatively independent policies. It devastated our social fabric and the neo-liberalisation of our universities destroyed counter-hegemonic, progressive discourses and debates. The University structures were corporatized. Courses lost their integrity as they were semesterised and modularised. Short courses proliferated. Basic research was undermined as policy consultancy overwhelmed the faculty. Knowledge production was substituted by online information gathering. A few resisted but many surrendered. Voices of resistance from staff and students were stifled and suppressed. University authorities spent more on surveillance gadgets to keep students in check rather than on sanitation facilities in dorms to keep students healthy. This campus, once known for its intellectual salience, is today cited for its selective silence. The kind of discourse that I’m indulging in today, I bet, must sound Greek and Latin to our neo-liberal generation of both students and faculty. This is the story of many African campuses.

As a consequence, the rise of “new nationalisms” caught intellectuals by surprise. Neither did they anticipate it nor do they know how to react to it. The knee-jerk reaction on many African campuses – not all of course – has been to join the bandwagon either out of choice or because of lack of choice.

Today we are witnessing an upsurge of fascism, narrow nationalisms and parochialism both in the Centres and in the Peripheries. In the North, rightist parties and formations wave the flag of racism and nationalism against immigrants. Given the electoral victories of the right in recent times, even mainstream center and centre-left parties, fearing the erosion of their electoral base, buy into the anti-immigrant rhetoric.

“New nationalisms” across the global South share certain characteristics, albeit manifesting in different forms and languages, depending on concrete conditions. Some manifestations are undoubtedly progressive but are invariably eclectic.

Firstly, populism speaks in the name of the poor against the poor. Secondly, it privileges ‘God and country’ instead of peoples and nations. Thirdly, it concentrates power and destroys other potential centres of actual or potential power. Fourthly, it seeks legitimacy in “gods and ancestors” rather than its people. Fifthly, it makes fetish of “industrialisation-as-development” while marginalising agriculture and pillorying “development-as-freedom”. In Africa, no doubt, we need industrialisation to develop but development is more than industrialisation. Development, as Mwalimu Nyerere used to say, is a social process of enlarging the terrain of freedom and constricting the tyranny of necessity.

Sixthly, ”new nationalism” mounts a concerted assault on veritable centres of thinking, especially universities. My Indian friends from Jawaharlal Nehru University tell me that Modi’s regime has repeatedly tried to destroy radicalism at JNU, by slapping criminal charges on radical faculty and students, by mounting direct attacks by police on the Campus and by appointing regime’s stooges as vice-chancellors, and so on.

The upsurge of “new nationalisms” is a backlash to neoliberalism gone wild

Seventhly, the anti-imperialist rhetoric of “new nationalisms” is eclectic and selective. It is couched in the language of “they”, the foreigners, and “we”, the indigenous, rather than as an anti-systemic project.

Finally, in Africa, the “new nationalism” is singularly bereft of the Pan-African dimension. This is very much unlike the first wave of nationalism, which was born of Pan-Africanism and tried to keep it on the political radar in spite of its problems and shortcomings. Paraphrasing Mwalimu Nyerere, I would say that African nationalism could only be Pan-Africanism otherwise it becomes “the equivalent of tribalism in the context of our separate nation states.” (Nyerere)

Under the circumstances, it is squarely the social responsibility of intellectuals to construct a counter-hegemonic project that would resonate with the lives of the vast majority. Instead, African intellectuals have reacted to “new nationalisms” by falling back on the ideological rhetoric of bourgeois liberalism, which they know best but which, in my view, falls far short of giving the people a vision and a cause to fight for. The liberal language of political pluralism, social diversity, ideological identity and party politics is, in my view, inadequate and does not touch the hearts and minds of our people. We must always remember that it is liberalism constructed on capitalist foundations that created the soil for the rise of neo-liberalism and its offshoot “new nationalisms” in the first place.

One cannot construct a counter-hegemonic project in the abstract and I do not intend to do so. Such alternatives are built in the course of struggle. By way of conclusion, though, I’d like to suggest for our consideration that any counter-hegemonic project must be based on four building blocks. These are: popular livelihoodspopular participationpopular power and popular rights and freedoms.

‘Popular’ is used in two senses: one that it is anti-imperialist and two, that it is based on a ‘bloc of popular classes’, which together I call working people. The term popular helps us to distance ourselves from populisms emanating from the term ‘people’. The term popular livelihoods does not require any further explanation. Needless to say it has to be based on a people-centered development. (And by ‘people’ I mean working people.)

Popular participation is meant to interrogate the limits of parliamentary and party politics and rethink the institutions of the state. The idea is to posit a new mode of politics. Politics are where the masses are. And masses are in villages and urban ghettoes and neighbourhoods. So popular participation and popular power is meant to re-locate power and politics from the state to villages and neighbourhoods.

African intellectuals have reacted to “new nationalisms” by falling back on the ideological rhetoric of bourgeois liberalism, which they know best but which, in my view, falls far short of giving the people a vision and a cause to fight for.

In popular rights and freedoms I include two fundamental rights and four fundamental freedoms. The fundamental rights are right to human existence to live life with dignity and right to organise means that an organised working people are able to defend their interests themselves through their own organisations – whether these are trade unions, workers’ associations, working women’s organisations, peasant co-operatives or peasant parties. Forms of organisation arise from concrete conditions. People have always been innovative in organising themselves for resistance and for fighting for alternatives.

Four fundamental freedoms are: freedom from want, freedom from fearfreedom from violence (both state and social violence) and freedom from enforced silence – in other words, right to speak out. Time does not allow me to elaborate further on the building blocks of an alternative Project. My aim was simple: to jolt us from the slumber of silence. My hope is – and I’m eternally hopeful – that this type of discourses will morph us from the state of unthinking to the state of thinking.

This article adopted from a Keynote address at the University of Dar es Salaam was first published in Sauti ya Ujamaa on February, 2 2019.

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The Swan Song of Electoral Democracy: From Kenyatta to Kabila, the Rise of a New Impunity

The farcical rigging of the DR Congo election was only a surprise to the extent that fellow African presidents and international observer missions were not in on Joseph Kabila’s novel innovation: fixing the election for an opposition candidate. With 20 African elections set for 2019, does the threat of the Congolese example confirm a final retreat of electoral democracy on the continent? What is to be done? By MIRIAM ABRAHAM

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The Swan Song of Electoral Democracy: From Kenyatta to Kabila, the Rise of a New Impunity

The normalization of electoral pilferage in Africa is baffling. Election management bodies, long the political tools of incumbents, can’t stop outdoing each other in their mediocrity. And ready to legitimise these atrocities, are African presidents who compete to be the first to convey congratulatory messages. Not to be outdone, international and regional organizations continue to provide technical support for these sham processes, releasing bland observation reports that rubber-stamp electoral fraud. And the diplomats, who while investigations are launched on sabotage of elections in their own countries, undermine electoral justice in their host countries.

The recent charade in the Democratic Republic of Congo is only the latest in the disturbing trend. Similar processes in Zimbabwe, Cameroon, Rwanda and Kenya, in the past year or so, confirm this. In these four situations, the incumbent retained power, despite detention of political opponents, massive irregularities, blatant theft, intimidation of voters and in some cases, brutal murders by security operatives. With elections scheduled in more than 20 countries this year including Nigeria, Ethiopia, South Africa and Malawi, we should expect this trend to continue unabated.

Turning to the Democratic Republic of Congo: it has the world’s most complex and longest running humanitarian crisis. It is estimated that since 1996, violence has claimed over six million lives (without including the period between its independence from Belgium in 1960 to 1995). Historically, the country has never had a bloodless transfer of power. Former President, Joseph Kabila, who inherited the seat from his assassinated father, Laurent Kabila in 2001, managed to cling to power for 18 years. He could have probably postponed elections again, if the Congolese, led by the Catholic Church, did not keep the pressure on him finally to conduct them.

The recent charade in the Democratic Republic of Congo is only the latest in a disturbing trend. Similar processes in Zimbabwe, Cameroon, Rwanda and Kenya, in the past year or so, confirm this. With elections scheduled in more than 20 countries this year including Nigeria, Ethiopia, South Africa and Malawi, we should expect this trend to continue unabated.

With this background, most people would agree that the people of Congo need some semblance of stability (the strict meaning of which usually excludes the violence prosecuted by countries and multinationals pillaging Congo’s rich minerals and timber). But must electoral justice and political stability be mutually exclusive? Several colleagues, working in support of the Congolese election management body, CENI, have expressed their shock and disbelief at the swapping of the presidential results and the manipulation of the legislative vote. These are colleagues who are hardened electoral experts – they have seen it all, from Cambodia to Afghanistan and everything in between.

Most people would agree that the people of Congo need stability (the strict meaning of which usually excludes the violence prosecuted by countries and multinationals pillaging Congo’s rich minerals and timber). But must electoral justice and political stability be mutually exclusive?

In our conversations, I have sought to understand why the Congolese case gets them more perturbed than say, Kenya or Zimbabwe – places in which they recently worked. It is clear that it is because the game played by Kabila deviated from the usual script. These international organizations, complicit in aiding theft in favour of incumbents or their anointed successors, cannot relate to a situation where an incumbent does this in favour of an opposition candidate.

As one of my colleagues said to me, “The difference is that in Kenya, it was not as blatant, there was no paper trail.” I should have been shocked to hear this, that the Kenyans were more adept at creating a farce of an electoral process than the Congolese. What many of these colleagues of mine do not understand is that the end game is the same. In both cases, the will of the people was subverted. For the diplomats and international organizations, their private outrage was that the Congolese were too obvious in their deceit. Perhaps even more outrageous was that Kabila had excluded them from his game plan. They were checkmated with the rest of us. They were not among the usual plotters of the game plan. They were prepared to make a case for how the ruling party had won, because of the power of incumbency, the divisions among the opposition and the sheer constructed tyranny of numbers. They were not prepared for what author and journalist Charles Onyango-Obbo dubbed the ‘Kabila Method’. It partly explains why contradictory statements were issued by the African Union, SADC and some European capitals, in support of the legitimate winner of the race, Martin Fayulu, before capitulating and vowing to work with President Felix Tshisekedi.

I have sought to understand why the Congolese case gets my colleagues more perturbed than say, Kenya or Zimbabwe…It is because the game played by Kabila deviated from the usual script.

If elections are indeed ritual processes to confirm the incumbents or their chosen successors, then why should we invest our hopes, blood, emotions and resources in them? Would we not be best served by monarchs such as those in Morocco and Saudi Arabia? According to several sources, and data collected by ACE African countries rank among the highest in spending on organizing elections. (This does not include campaign financing, for which the United States is off the charts.) Curiously, the higher the amount of money handed over to the ‘independent’ election management body, the lower the country ranks in the Democracy-Index maintained by The Economist.

It is estimated that in 2017 Kenya spent $ 25.4 per registered voter (not including the repeat 26 October 2017 presidential election, petitions and by-elections) and ranks 98 out of 167 states in the Democracy-Index. Botswana ranks 28th in the Index and spends an average of $2.07 per voter, although this may increase in 2019 if the country proceeds with the use of Electronic Voting Machines (EVMs).

[International observers] were prepared to make a case for how the ruling party had won, because of the power of incumbency, the divisions among the opposition and the sheer constructed tyranny of numbers. They were not prepared for what author and journalist Charles Onyango-Obbo dubbed the ‘Kabila Method’.

African leaders are getting more emboldened in methods of securing legitimacy, even amidst blatant electoral theft. They know that they can rely on the African Union and other regional organizations such as IGAD and SADC to issue observation reports lauding their illegitimate electoral processes. Prime Ministers, Presidents (sometimes sprinkling onto their official delegations, erstwhile opposition leaders, recent victims of electoral theft now co-opted by the incumbent) will troop to their inauguration ceremonies. They can count on the United Nations to issue statements congratulating the people “for voting peacefully” (as if voters were ever the problem) and taking note of the decisions of the ‘constitutionally established institutions’, even when their own staff have concrete evidence of the foul play and state capture of these institutions.

These leaders are aware that they can use excessive violence and repression to silence their opponents with impunity. And if this does not work out, they will buy off the opposition with the proverbial thirty pieces of silver and repeat the charade in the next electoral cycle. Or they will promise their victims that, in joining government, the same system that rigged them out could well rig them in, next time. Which begs the question of why we spend billions on elections. Why do we put ourselves through the emotional wringer to end up with leaders we did not choose? Why participate in a charade that ends up keeping the political barons, as former Chief Justice Willy Mutunga calls them, in power?

Electoral disillusionment is not unique to Africa. One could argue that there exists today a global democracy deficit as acute in Europe and North America as it is in Africa. Political scientist Larry Diamond has produced many publications on the subject of ‘democratic recession’. Many more researchers have studied in detail whether democracy is in retreat or not. It is however safe to say that what we have recently seen in Latin America, the US, and Europe is a backlash against leftist policies that pushed the middle class to the edge, with leaders, perceived as unrepresentative and out of touch, playing xenophobic dog-whistle politics with immigrants. Many of these countries have ended up electing populist, nationalist and right-wing leaders, who as expected have not provided solutions to their woes but rather introduced divisive and polarizing politics and policies.

Electoral disillusionment is not unique to Africa. One could argue that there exists today a global democracy deficit as acute in Europe and North America as it is in Africa.

While one could question the quality of the electoral processes in these countries, these leaders are not in power because election results were swapped blatantly, either electronically, as was in Kenya, or manually as in the DRC. It is also evident that, as was the case in the mid-term elections in the US, voters are still determined to organize and repudiate values that they deem not representative of their views. The fact that a 70-year tradition of habitually low voter turn-outs was broken – turn-out was a record 60 percent, yielding the most diverse (youth, women, Muslims) US Congress ever – holds hope for electoral democracy elsewhere. Social movements are growing in Slovakia, Romania and even in Poland to push back against these populist tendencies.

There are examples galore in Africa of what happens when people lose hope in electoral democracy— a system – a strict definition is worth restating in these strange times – in which citizens, through universal suffrage, choose and replace their leaders in regular, free, fair, and meaningful elections. This stands true even in cases where there is a façade of democracy created by the autocrats, such as Kenya. From Algeria to Zimbabwe, political changes have taken place, mostly peacefully through social and political movements. Whether in Burkina Faso or The Gambia, citizens have proven their will and capacity to alter their political fate.

Electoral democracy requires patience and hard work, both of which are acutely deficient, especially as we fall victim of the establishment’s distractions. For now in Kenya, the ‘Ruto Bogeyman’ has been created. Instead of spending time nurturing alternative leadership, the public has consented to being used as State House’s battering ram against him. It’s worth recalling that between 2013 and 2017, we were subjected to the ‘Raila Bogeyman’ regime campaign. We have long forgotten about demanding a public inquiry into the 2017 electoral fiasco – or the 2013 debacle. Those who managed the 2017 electoral thuggery continue to receive public funding and tour the world in the name of exporting “lessons learned” from their experience of managing two presidential elections in less than a year! We are collectively distracted by the smoke and mirrors ‘fight’ against graft. We have even signed on to blaming the judiciary for its handling of poorly prosecuted corruption cases designed to fail. Our social media platforms still have messages appealing for unity against terrorists, without questioning why Al-Shabaab successfully targets Kenyan towns and cities, and fails to do so against Addis Ababa whose troops have been in Somalia longer than us. We even get to spend time celebrating or bemoaning (depending on your political stripe) that Cabinet Secretary Fred Matiang’i is now empowered to coordinate the achievement of the government’s agenda while all along his official title reads exactly that (CS, Interior and Coordination of National Government).

It is tempting to write off electoral democracy in Kenya, especially now. However, there may be still room to begin laying the foundations for overturning the ‘faux democracy’ of the past 50 years. It might be tempting to focus only on de-registering ourselves from the IEBC’s voters roll, which anyway by law needs to be discarded and a new voter registration process to be initiated before the 2022 election.

We owe it to our children to do more than this. To play our role in shaking the current system that has been controlled by the dynasties and elite political ‘barons’ for the past five decades. It requires organizing around a movement that advocates for a different type of leadership – a Third Liberation, if you will. This is an arduous task, requiring time and dedication. It requires going back to the basics of defining the kind of leadership we deserve as a people to end impunity, theft of public resources, to protect our environment and to guarantee public safety and security for all. This is possible. It has been done before in Kenya, with varying levels of success, and it can be done again.

We owe it to our children to do more than this. To play our role in shaking the current system that has been controlled by the dynasties and elite political ‘barons’ for the past five decades. It requires organizing around a movement that advocates for a different type of leadership – a Third Liberation, if you will.

But even as we chart this path, we must remember to hold the leaders of these movements accountable to the people. Most of today’s autocrats in Africa were yesterday’s defenders of democracy. Yoweri Museveni of Uganda toppled the Tito Okello military dictatorship 33 years ago; today, he ranks among Africa’s longest serving despots. In Guinea, President Alpha Condé, a long-time opposition leader, became the first democratically elected president in 2011 and appears to be preparing to remove term limits in addition to his ongoing repressive tendencies against his opponents. In Cote d’Ivoire, the hope that Alassane Dramane Ouattara embodied has long been replaced by the very same tactics of his predecessor Laurent Gbagbo. Closer home, one of the prominent leaders of the ‘second liberation’ Rt. Hon. Raila Odinga and the ‘Young Turks’ have joined forces with the ruling Jubilee Party to undermine the same values and aspirations they allegedly fought to protect.

The journey to real change, to electoral democracy, must advance by the dismantling of the entrenched structures that enable the rise of populism, divisive politics, corruption and impunity. It is a journey that we as a nation have really not yet begun. The jury is still out on how far we shall proceed before we are enjoined in the distractions set up by the political ‘barons’ and the dynasties. Until then, electoral democracy is a mirage. And ours will remain selection, not election processes. Just with more pomp, more pillaging and unfortunately, more deaths.

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