Sub-saharan Africa and IMF self-sufficiency reduction policy

A video of economist Prof. Howard Nicholas of the International Institute of Social Studies at The Hague giving a public speech about why Africa must remain impoverished for the sake of others has gone viral on social media. In our discussion recently about the video, a childhood friend, Ambassador Adebayo Kareem, an international law specialist with the Africa Union, has provided more insight into this video than anyone else. He claimed that Nicholas’ remarks mirrored the views of the World Bank, IMF, and WTO toward sub-Saharan Africa. By designating Sub-Saharan Africa (SSA) as a “raw materials’ producer,” the West (North America and Europe) is intent on keeping the region impoverished, as Adebayo aptly concurred with Howard. This is crucial to the prosperity of the West. All international institutions, economic structures, and academic programmes aim to keep Africa impoverished and dependent on the West.

Nonetheless, it is thought that the West will make every attempt to keep the SSA in its current role. The prosperity of everyone else depends on it. The premise is that everyone in Europe, North America, and Asia will have a lower standard of living if Africa industrialises, which is something they do not want. Africa must be prepared to fight the West, who believe they are the guardians of Africa’s fate and that Africa cannot do anything without their approval, to free itself from its shackles. According to Howard, because the West cannot afford it, Africa cannot be permitted to industrialise and start producing goods. To avoid it, they will do whatever it takes.

“This is crucial to the prosperity of the West. All international institutions, economic structures, and academic programmes aim to keep Africa impoverished and dependent on the West.”

Howard firmly believed, according to Adebayo’s, that the West used three strategies to accomplish its objectives: multinational corporations, aid and armaments, and ideological influence. The West views itself as a producer of ideologies. Apart from supporting Western agendas and keeping oppressive governments in power, universities, research centres, and academic institutions all contribute to the mindset that normalises Africa’s dependence on the West. To support the claim, George Bush Jr. boastfully stated in his book “Decision Point” that “we set the pace for them” because he believed their philosophy dominated the world in a conversation with former British Prime Minister Tony Blair. Truthfully, Western ideology rules the globe. Some African leaders in power were given money and weapons to fight themselves. He claims that the hypocrisy around “transparency and democracy” is “all bullshit.”

Once more, monopoly purchasing mechanisms and multinational firms collude while the WTO plays along and acts as though nothing is wrong. The following summary is supported by the story of Dangote and the National Oil Corporations. Another factor is the artificial borders established by the colonial masters, which resulted in the forcible union of unfriendly people to form nation states. Additionally, the lack of economic diversification caused many SSA countries to rely entirely on agriculture and mineral resources, the prices of which are set by the Western buyers.

While Nigerians are wailing over the agony and pain caused by President Bola Ahmed Tinubu’s (PBAT) reform policies, IMF officials commended the Nigerian government for a job well done and cautioned Nigerians to bear the brunt of the pain, assuring them that if the government can maintain the current pace of strict policy, the benefits of the removal of subsidies will begin to manifest in the next couple of years.

Nicholas goes on to say that if the IMF brings up “poverty alleviation” or “balance of payments,” they are beginning to play a new game. He thinks that the entire concept of IMF financing is a ruse and a trap to keep SSA nations perpetually under control. Most of the funds provided have been debt traps since the 1970s and 1980s, and each time these nations ask for additional aid, they are urged to take out new loans, which feeds the cycle of dependency.

All economic indicators and indices make it clear that a country that produces raw resources cannot advance past a certain point until it embraces industrialisation, which the West may purposefully oppose. The loan’s goal is to keep Sub-Saharan Africa (SSA) in slavery forever.

One of the tools used to manage the global economy is price control. The price of bauxite, gold, diamonds, crude oil, and other raw materials is set by the West. Even though Nigeria produces oil, the cost of petroleum goods is high since they are valued in US dollars.

While Europe and America provide subsidies to their farmers and other sectors, the World Bank and IMF discouraged the concept of subsidies altogether. Depending on the number of children, low-income individuals are eligible for monthly child subsidies. Additionally, Canadians can save for their children’s post-high school education through Registered Education Saving Plans (RESPs), which are long-term savings plans that cover trade schools, CEGEPs, colleges, universities, and apprenticeship programs. In the United States, it is known as the Qualified Tuition Program, or 529 plan. The government will contribute a specific percentage each month to supplement the amount that parents save into the account.

The Emergency Rental Assistance Program in the United States, Housing Benefit in the United Kingdom, and $500 Rent Assistance in Canada are available. A subsidy known as housing or rental aid is intended to pay your rent if you are unemployed or have a low income. Once more, students in grades 7–12 in Halifax, Canada, can use the Student Transit Pilot Pass Program to ride public transportation buses and ferries from the first day of classes until the end of the academic year. In the UK, it’s known as free school transportation. This is a subsidy to lower the cost of transportation for parents. Students are given ten-month tickets at the start of each school year, and they are renewable. The subsidies affect all tiers of human existence and are not restricted to the categories mentioned above. The West prospers despite the volatile price of petroleum. Another factor is the reliability of energy, which paved the way for the development of hybrid vehicles that use both fuel and electricity simultaneously.

For the SSA nations, the stakes are too high; to break this cycle, fundamental problems with power generation and transmission must be addressed to support robust industrial development. No country can prosper without producing enough electricity. We will always be dependent on the West and others for finished goods, and according to Nicholas, the IMF’s and World Bank’s primary objective is to reduce dependent nations’ “self-sufficiency.” Therefore, adhering to the IMF’s guidelines can have disastrous consequences. No economy will grow without subsidies. Unlimited taxes will impinge on development. The poor must breathe and survive; Nigerians are dying of hunger and lack of necessities of life.

Rotimi S. Bello, a public commentator, peace and conflict expert, and HR Advisor writes from Canada.