Thursday 23rd of May 2013 07:12:07 PM
 
 
 
Home The Last Word The Last Word Africa’s political risk profile

Africa’s political risk profile

Email Print PDF

How realistic is the risk of political upheaval in Africa and what can be done about it?

Two weeks ago, I was in Nairobi, Kenya to attend a conference on Africa’s political risk profile. The moderator of the first session posed four questions for discussion: Is stability more important than freedom? Is the raw material for the Arab Spring available in Africa? Has the Arab Spring changed the political risk profile of Africa and how? How do you invest in Africa in the context of crony capitalism? These were challenging questions whose answers depend as much on the objective conditions on our continent as on the attitudes and agenda of any analyst.

Africa needs both stability and freedom. Stability is the mother of freedom. Without a stable political order, you cannot have freedom – you have anarchy. Ironically, the first precondition of freedom is its limitation. If a society were to make an either/or choice, it would pick stability over freedom. This is because if you did not have freedom, at least you have stability. But if you don’t have stability, you lose freedom too. So Africa has to invest in stability as a top priority.

Are the objective conditions for an Arab Spring present in Africa? Yes and no. By the spring of 2011, Arab nations had sustained economic growth for almost two decades, had invested heavily in education, facilitated the penetration of modern communication technology like mobile phones and internet, but were facing a youth bulge, increasing joblessness among the youths and social and political frustrations among their middle class. In many ways, these conditions exist in Africa today in varying degrees.

However, the existence of the right structural conditions does not automatically create mass uprisings. You need agency (leaders or demagogues and political organisation) to generate an uprising. Structural conditions are social dynamite; leadership and organisation, the detonator. Hence, popular discontent needs to find or produce organised political expression for it to lead to revolution.

Now, the right structural conditions do not automatically produce agency i.e. the demand for revolution does not inevitably produce the supply of leaders and political organisations to guide it. Sometimes, popular discontent can generate political agitation and disturbance. But without organised political expression and effective leadership, mass insurrection would be little more than mob action. Mobs don’t build things; they destroy them. Of course mob anger can create the right incentives for people with leadership and organisational skills to join and guide it purposefully towards a particular political objective. But this is not automatic.

The definitive issue is actually political adaptation. Revolutions tend to ignite in countries with inflexible political institutions. Some political systems are very rigid. Technological changes tend to lead to economic dynamism, which tends to produce new social forces. These begin to make demands upon the political system largely aimed at expanding participation. The stability of any political system facing new demands from emergent social forces will always depend on its flexibility to accommodate them.

This was the challenge facing the Ancient regime in France in 1789 and Tsarist Russia in 1917. Both these systems had become archaic relative to the structural transformation taking place in their societies. Their survival depended on their ability to adapt – a lesson from the United Kingdom. The conditions in France and Britain in 1789 were almost similar. However, the major difference was in their political institutions; the UK system was flexible, a factor that allowed it to give concessions to the demands of new and emergent social forces. Political flexibility mitigated pressure for revolution in UK while inflexibility did the opposite in France.

It seems the Arab-Spring is less likely in Africa because political systems are fairly flexible. We have multi-party political systems. Regardless of their one million and one imperfections, the systems provide a minimum level of political participation and a large dose of contestation. In some countries, power changes from ruling to opposition party – Ghana, Senegal, Malawi, Zambia etc. This allows them to accommodate new demands. Therefore, even though most countries on our continent are facing the same structural imperatives as the regimes in the Arab world, revolution is less likely. This is not because of lack of leaders and organisations but because there is space for accommodating emergent demands from new social forces.

Africa’s political risk profile is a product of both objective conditions obtaining on our continent and existing biases and prejudices among observers. I talked to an equity fund manager in London just before going to Nairobi. She told me that if a fund manager invested in ten projects in China and seven went burst, he/she could easily retain their job. If he/she invested in ten projects in Africa and three went burst, he/she is likely to lose their job. The reason is obvious: investing in China is seen as the right thing to do. So the risks are accepted. Investment in Africa is seen as a wrong decision. Any slight mistake is punished severely.

The point is that in discussing Africa’s political risk profile, we cannot ignore the centrality of the prejudices of the observer. These prejudices are generated by our own dysfunctions over the decades – so they are not pulled out of thin air. But they are worsened by how we African elites articulate them and thereby help feed the monster of prejudice that hangs around our continent’s neck. For example, crony capitalism is rampant in East Asia and China. But it has not stopped the evolution of dynamic economies. It is still rampant in most of Africa, yet our continent is the second fastest growing region on the planet after China.

Because most of Africa has sustained growth for two decades now, investors are beginning to take it seriously as a destination for investment. And because of the emergence of China and India as exporters of investment capital, Africa is beginning to see more investors from them. China and India do not have the deeply entrenched prejudices about Africa of Western Europe and its offshoots in North America, Australia and New Zeeland. Finally, the crisis of the Eurozone, coupled with sluggish growth in the United States, is making investors look for new areas to invest their money. Africa now has a real chance, let us not waste it.

This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Comments (19)Add Comment
Africa condemned by Africans
written by rajab k, June 04, 2012
The first popular idea about Africa is also the first major misconception. The notion of Africa as a dark continent is a parochial European idea, which gained currency because Africa was the last of the continents to be opened to the gaze of the outside world, and because it was the last to experience that full impact of European people.
Africa condemned by Africans
written by rajab k, June 04, 2012
At the beginning of this modern period of history, Africa was far from the most backward of continents. The Australians, for example, when they were discovered by Europeans, were still living as hunters and gatherers and were still using stone tools comparable with those of the upper Palaeolithic cultures abandoned by most European and African peoples from six to nine thousand years before.
...
written by rajab k, June 04, 2012
At the beginning of the 16th century, a few of the American Indians were using polished stones and learning how to use metals. Many more were still Mesolithic hunter-gatherers. The Africans of the same period, on the other hand, with a few exceptions, were farmers equipped with tools of iron. Throughout the northern third of the continent most of them belonged to the urbanized civilization of Islam. True, much of Africa was unhealthy and inaccessible, but not more so than panama and Peru.
SO, HOW ARE WE THEN IN THIS SITUATION?
written by rajab k, June 04, 2012
Decolonisation was not something that could be embraced by the all the colonialist, so, contrary to many predictions, the actual transfer of power to the first cohort of independent Africa was smooth. Old flags were lowered and new ones raised, but many white civil servants and military officers remained at their posts. The educated elite was creamed off into diplomacy.
...
written by rajab k, June 04, 2012
The post independent governments have been generally characterized by a shift from parliamentary and single-party regimes towards personal governments, in which more and more decisions are taken by a single individual who assumes the role of fountainhead of goodness for the whole people. These leaders tend to be surrounded by courtiers rather than cabinets -courtiers who are rewarded less by salaries than by opportunities to take their cuts from the various projects which they sponsor for public contracts, planning permission, import licenses. The systems are perfectly familiar with monarchs of the 16 century Europe.
...
written by rajab k, June 04, 2012
Under such systems, if decisions do not work, it is not the leader who is to blame but institutional defects or less god-like individuals in the party or the bureaucracy that link the leader to the people. However, situations have presented themselves where shifting of responsibility is no longer acceptable, and this has often been the point at which the military would intervene in civil affairs, arguing that things had gone wrong that it was necessary to make a completely new start. It is apparently another matter, however, whether the soldiers are able to restore parliamentary or party government.
...
written by rajab k, June 04, 2012
The story has always been that the liberator would develop the same structural faults of inefficiency, indiscipline and corruption that had originally provided a justification for the development of personal rule. It stability or freedom? To me, this is a question of, 'egg and chick.'
Africa is a complex Continet ,Democarcy and Governance is good
written by Tina, June 04, 2012
Its a map it guides us on where to go Africans need to be handled with care and an iron hand bse chances of lossing it is high you know what happened in Kenya,Rwanda where there was uncalled for blood shedding. to avoid scenarios where the youth are easily instigated,Govt needs to reduce income inequality by,
1. Let the salaries of all CEOS and MPS be 6m
2.Youth who are in the age bracket of 25-38 and areunemployed can get an upkeep of 50k or 40 per month.
3.Each UPE child can be surprised with an egg or ban once a week for break.
4. Govt can fund Youth projects like poultry farms or bakeries in each sub county to feed the UPE pupils who will get a ban or an egg per week.
5. Improving all social services like roads, so that complaints and tantrums are not thrown at the Govt

...
written by Lt .Col Adam kifaliso, June 05, 2012
Andrew is now annoying me too much , I'm about to loose my cool , Arab spring started from the countries with flexible regimes,Mubarak used to win elections with same percentages like those of m7 and Kagame, North Korea is a stable regime but no freedom, what Andrew is trying to do is tell us that m7 and Kagame are invincible something not right , m7 has tried all to intimidate the opposition and make it worthless but the truth remains that m7 himself and his relatives are useless and hopeless ,Uganda needs a new beginning and Ugandans are now ready to fight for a new one ,look at 25 years of m7's wastage
The Stability in Uganda or Rwanda is Fake
written by Ocheto, June 05, 2012
The facade of stability imposed with coercion and brutality in Uganda is just that, fake and illusionary. As soon as Museveni exits and with it his iron fisted rule ends, and it will end soon, the false political stability will evaporate like like morning dew in the Sahara. As for the Eurozone, they are facing the same dilemmas that African countries have always had to contend with, namey that the multinations (derogatorily called tribes) that form these states cannot coexist as they are not only hostile to each other, but also hostile to their socalled state governments. That why for any central government to survive they have to arm themselves to the teeth and brutalize and oppress the aspirations of tribal or mutlinational entities. America suffers no such ills.
Mwenda a true "Confusing agent"
written by Steven Nsubuga, June 05, 2012
Sometimes I wonder who writes these opinions. Mwenda or Museveni? Mwenda amazess me by his reason which is text book dictatorship borrowing "logic". It may work with those who are limited in access regarding information and logic. But I would like to assume that most people who read Mwenda's articles are sophisticated in reasoning. Just like A.Kifaliso stipulated above about North Korea, the entire Mwenda arguement is shot down right there. Who has better order than North Korea? Yet how far has that taken North Korea?
...
written by Steven Nsubuga, June 05, 2012
Besides, of all the Arab States, Egypt was the more liberal and sophisticated hence the arrival of change. It's not because of inflexibility that the Arab Spring arrived in Egypt. What Mwenda is doing is called "Social engineering" on behalf of GOD FATHER M7, he is trying to condition Ugandans to forget about their agitation for change that M7 is invincible and change is a 'pie in sky"!
It is amazing how Mwenda still believes that he can deceive people who have the ability to read and reason on their own. Like I said above, this article may work with peasants but the majority of people who visit this website aren't peasants. Besides, even peasants today know thier rights, have shed fear and know what they want to get. At least they are getting there.
...
written by Steven Nsubuga, June 05, 2012
So I wish Mwenda would stop his bufoonery in thinkiong that he can deceive people with his archaic and deceitful reasoningthrough his opinions. I fully understand that he can't stop his blitz on the intelligence of most Ugandans but we shall not stop to rebutt his lies. I hate when he continuosly quotes from Europeans in almost each of his articles yet he never stops to assail western countries. If this is not oxymorone then someone tell me what is. Mwenda's logic must be undressed for he really is what he is, "a member of the crime family" which is fleecing Uganda tax payers.
Plagiarism thanks Nsubuga
written by Robert, June 06, 2012
Thanks Nsubuga! I have said before on this forum, that Andrew Mwenda Plagiarizes people's work. Basically copying and pasting ideas out of context, and without acknowledging the source of the facts, he wants us to believe are his. What sort of intellectualism are we perpetuating when we are led to debate plagiarized articles.
Great article!
written by D.Oduki, June 06, 2012
Great article!
Enjoyed reading very much
Thank you
...
written by Lt .Col Adam kifaliso, June 08, 2012
OK , I'm worried , the state of mind of Gen Aronda Nyakairima might be not in good health , Kayihura has managed to evade mental collapse by visiting a mental clinic in German, Gen Aronda might be getting really sick and the life of President m7 is at stake , bad people might take advantage of his mental status to cause ham to president m7 , which might be good or bad for Uganda , Andrew please can you follow up what is really wrong with Gen.Aronda the former kanyama now Army commander
MWENDA YOU ARE A DISGRACE
written by isaac, June 09, 2012
Did this guy study from Stanford? Really? He is a disgrace to the alumni of Stanford. There is something genetically wrong with Mwenda. we deserve alot better from in your practice of journalism than these crooked, twisted facts. there are minimum standards for those who practice journalism. even the blind can now realise that you are licking M7s ass. you can not justify M7s dictatorship whatsoever.
OVER TO U COL.
written by Morris, June 09, 2012
PSE Col. shade alittle more light on that. What is it with Aronda? POISONED??? Not again. Their intrigues wont spare them. But he is not known to be in the succession queue.
...
written by cheap designer sunglasses, June 12, 2012
For example, many people require a prescription in order to drive. These are primarily people who require correction for seeing things in the distance, although some farsighted people struggle as well and require glasses to drive. prescription sunglasses cheap On a bright day, driving without sunglasses can be dangerous and driving without a prescription can be illegal. Therefore, you will need a pair of prescription sunglasses.

Write comment

busy
 
 
 
 

Podcasts

Videos

You need Flash player 6+ and JavaScript enabled to view this video.





RECOMMENDED

Society
Getting the best from your battery A well maintained new battery should last for at least five years If you’ve ever suffered the frustration of trying to switch on your engine only to find a flat car battery, you know what a stressf...
 

MOST READ

LATEST COMMENTS

airline passengers bill of rights essentially on april 2915 Says:
2013-05-23 01:11:05
I'm pretty new at this place and adore the design, could you let me know me where you bought this theme? You can contact me on my e-mail...looking forward to hear from you

Hank Says:
2013-05-23 02:39:52
Those who believe its within Obamas Job description to remove African Head of states they assume are dictators are just Shallow minded and are still under the colonial spell. Wherever the US goes to

ON THE SHELVES
Banner
 

Cover: Muhoozi Project - The Inside Story.

News Analysis: DPP, Police row - A legal perspective.

Business: Few options for 2013/14 budget.


Name:

Email:

COMMENT
Free press for an engaged society Safe to Speak: Securing Freedom of Expression in All Media World Press Freedom Day is marked every May 3 to celebrate t...