UNPACKING POVERTY, THE PETULANT WOUND OF AFRICA

 

                     Image from Pexels by Kelly

The 1960s and 1970s stand out as the years when Africans in many countries were freed from the white man’s rule. These two decades marked the end of the era of colonialism. Whenever I watch the black and white film reel of the moment when the British Union Jack flag went down and the Kenyan flag was hoisted at Uhuru Gardens on December 12, 1963, I can only imagine the emotions that must have flooded the hearts of the elated onlookers as they shouted joyfully; filled with indescribable relief, immense satisfaction and immeasurable hope. Hope for a better future where poverty would be a thing of the past, for the vast resources whose benefits they had been robbed of for almost a century would revert back to them. A restoration of wealth. An economic system that seeks not to take away, but to ensure that every person is able to live comfortably by being able to afford the basic necessities of life namely, food and water, shelter and clothing, and is able to access quality education and healthcare services.

 

Let’s fast forward to present-day Africa. According to statistics, Africa is the poorest continent in the world, with its purchasing power parity (PPP) standing at $6,825, and millions of people living on less than one dollar per day- an indication of extreme poverty. Echoing the concern expressed by Burkina Faso’s de facto President Ibrahim Traore, “How can Africa, which has so much wealth, become the poorest continent in the world today?”

 

For most Africans, basic necessities have become unattainable luxuries. The cost of living never seems to fall to reasonable and affordable levels as commodities and services are being subjected to punitive taxes in the name of efforts to pay off public debts, almost robbing them of dignity as humans. While this happens, benefits of resources end up in the pockets of the political elite. Ultimately, the rich become richer and the poor become poorer, a man-eat-man society. It is no doubt that the greediness of a few people is one of the major reasons why Africa remains a poor continent despite its rich resources. It appears that leaders seeking mandate from the electorate, purporting to have their best interests at heart and promising to be their voice is a mockery of their trust and a fallacy at best, for as soon as they get into power, a life of extravagance and opulence with funds from public coffers seems to be the reason why they were elected into government. This not only robs the electorate and the citizenry in its entirety of what rightfully belongs to them, but also undermines the rule of law as well as democracy and exhibits total heedlessness to the social contract doctrine which informs the whole idea of a government.

 

As many would say, the economy to a nation is what blood is to the body. Therefore, challenges in the economic system of a nation are cancerous to the nation because they affect the everyday undertakings of a nation, impacting the livelihoods of people in terms of development, imposition of taxes, inflation and even wealth. One such challenge that has had effects on the wealth of African countries is the lack of economic independence.

 

A classic instance of this is the use of the CFA Franc (the Franc) currency in 14 countries of West and Central Africa, a region commonly known as the Franc zone. The Franc is tied to the Euro at a fixed exchange rate ensuring the stability of the Franc despite market conditions.  In order to secure this exchange rate, the countries in the Franc zone are required to deposit 50% of their foreign reserves with France. Advantageous as it may seem in tough economic times for the Franc to be pegged to the Euro, it limits the autonomy of the economy of the Franc zone during periods when the value of the Franc could potentially rise.

 

The value of the Franc also falls when the value of the Euro falls. In addition to that, these foreign reserves deposited with France do not accumulate interest and a country can only withdraw a certain limited amount of their reserves at a time. Some member states of the Franc zone have recently expressed their intention to do away with the Franc as it not only makes economic development difficult, but also appears as a form of French Imperialism, reminding them of colonialism, seeing as the currency was introduced in 1945 when West and Central Africa was under the rule of France. Instituting a new currency will ensure financial sovereignty and preserve the benefits of resources for the people of this region, thereby sustaining wealth and ultimately alleviating poverty.

 

It cannot go without notice that realization has dawned upon Africa and a new era of economic liberation and escape from poverty is in the wake. I believe that achieving our goals starts with the strengthening of governments in African countries by ensuring that leaders and those at the helm of influencing change act in a manner that not only conforms with the rule of law, but also protects and promotes the interest of the people. Also, learning from our past mistakes and present situation, it is time that we made better financial decisions as a continent for the improvement of our economic systems. There is, certainly, light at the end of the tunnel.

 

Valerie Moraa is a student of Law at the University of Nairobi.