EFFECTS OF THE ‘STRUCTURAL ADJUSTMENT’ IN AFRICA

In the early 80s, during the Thatcher's administration, the whole world was caught up in an economic euphoria. The term 'structural adjustment' became common as it punctuated the political and economic atmosphere with a sense of absoluteness. It prevailed because it is coming from the financial haven of the world; Britain. It first worked in the U.K and the New Zealand also adopted it then started spreading like a cancerous cell. It is an economic reform that encourages privatization and commercialization of State-Own-Enterprises which set State Enterprises on the field of the market economy. Where ever this reform has prevailed decentralization of economic and political powers has been felt. Apart from it benefits to Western economies, it became an initiative to help developing countries reform their malfunctioned economic structures. In fact, many African countries were externally influenced by the Bretton Woods institutions who only granted financial assistance to African countries that are ready to hold on to the structural adjustment policy and run with. Since, it cannot be imposed on African governments; it has to be economically manipulated to force African state to rest under its shadow.

Soon, many African leaders where standing behind the doors of the IMF and the World Bank knocking with their begging bowl, which leaks uncontrollably, out-stretched begging for loans to stabilize the economies they have destroyed through corruption, incompetence, and bad economic policies. Those who grants loans under the condition of privatization knows very well that Africa's begging bowl leaks yet they keep pouring money to Africa because they will have their interest not just in direct monetary terms but favorable working conditions as their companies are allowed in Africa to sift the wealth of the people too weak to speak and defend themselves and too uninformed to resist bad economic policies all in the name of privatization.

The concept of privatization has within in it a statement of government's incompetence to manage its public assets. This is an insult to the government and the people who voted them into power. Many State -Own-Enterprises has been privatized because there was a unanimous agreement between government and private sector actors (mainly Foreigners) that the state properties cannot be managed by those appointed to run them. If government is incompetent to run is business why vote them to power. The sad truth is, apart from corruption, our educational system, as Africans, does not raise technocrats and pragmatists but theorist and men of fatal idealism. There is something fundamentally wrong with Africa's educational system and this contributes significantly to incompetence of government to employ and enjoy its mental powers. Therefore, it is so that the philosophy of education in one generation will become the philosophy of government in another generation.

Apart from revealing the incompetence of African leadership, Privatization of State assets to foreign companies, especially, denies the African people full benefit from properties which were acquired by monies they paid as taxes. For example, when Vodafone took over Ghana Telecom some workers were laid off because the new authorities will have to raise their own team. Aside this, if all assets are privatized, under-employment and unemployment rate will shoot up. Already, educational system has been patterned after western philosophies, which our educational sector actors do not even understand. This system, because it is poorly understood, furnishes the mind of students with the thoughts of other men; it teaches students how to make money but not how to create wealth, it teaches student what to think and not how to think for themselves, and finally it eliminates completely the full essence of the African heritage. It does not raise students who are fully abreast of the African concept to life and the real issues facing the continents and how to solve them. Foreign companies come in and workers who lack entrepreneurial fortitude to get their lives on-going when they are laid-off from their jobs partly due to incompetence resort to social vices to survive. I am not so much against privatization of State companies to the indigenous African. Let wealth created in Africa stay in Africa. It has been revealed by the World Bank that 40% of the wealth created in Africa is not invested in Africa. Foreign Direct Investors send profits back to their countries; corrupt African leaders save and invest their monies in the World Bank. It is estimated that corrupting alone cause Africa over $100b imagine what could happen to Africa's economy if these monies are invested in Africa.

Which Country will cancel the debts of an African country for nothing? The resource war is emerging; countries like China are invading Africa to amass a lot of raw materials for themselves. They already control majority of sea-ways in the world. If China forgives Ghana its debt of say $I billion you think that is for nothing? As from the time the Europeans came to Ghana till now only 1/5th of gold has been mined from Ghanaian soil, according to a reliable source in the mining sector. There are many neo-colonialists hiding behind the smoke-screen of structural adjustment to sift way Africa's economic vitality. But, fresh breeds of Africans are emerging; we shall reform our own economies and set our political structures right without foreign intervention. If foreign countries want to help Africa they must stop treating the symptoms of Africa's problems but the causes. But, just like some of the African leaders these foreign helpers are altogether corrupt.

Fidel Y. Tetteh
Development / Accra / Ghana / Africa / Modernghana.com