If capitalism has failed, what is Africa’s way forward?
International Monetary Fund, chief David Lipton recently said “there is no inherent flaw in capitalism; but, still, it needs course correction...” So according to him, there is an urgent need to ‘repair’ capitalism. However, what is important is the diagnosis: why does capitalism need ‘mending?’
Less than two decades into the twenty-first century, it is evident that capitalism has failed as a societal system.
The world is mired in economic stagnation, financialization, and the most extreme inequality in human history, accompanied by mass unemployment and underemployment, precariousness, poverty, hunger, wasted output and wasted lives - and what, at this point, can only be called a planetary ecological ‘death spiral!’
The digital revolution - the greatest technological advance of our time - has rapidly mutated from a promise of free communication and liberated production into new means of surveillance, control and displacement of the working population.
A few weeks back, I wrote on ‘wealth obesity,’ and this is the diagnosis: capitalism has created extreme inequality in human history. Unfortunately, African countries sought change to become ‘super-capitalists!’
Capitalism has enabled forty-two billionaires to enjoy as much wealth as half the world’s population.
More than 60 per cent of the world’s employed population, some two billion people, now work in the impoverished informal sector, forming a massive global proletariat.
So, I am thinking, if capitalism is a failure: why is there more migration to Europe and America from Africa? Ask youths in Africa what’s their dream - and the answer is to go to greener pastures in Europe or America. This is the reality - and another facet of the debate.
The reality is that, despite failure of capitalism what is currently available in Africa is more despicable than failed capitalism. Hence youths migrating to other places away from arduous conditions.
The political ideology and economic systems in Africa ‘imported’ from the West will not improve our situation, nor bring about the desired development. The ‘Democracy’ we are told to adopt is about multiparty politics, regular elections and limitation of presidential terms.
It is a well-known fact that political parties in Africa are generally along tribal lines and are a major cause of tribal divisions, rifts and civil unrest. Because of this, most populated tribes remain in power - and, thus, elections are hardly free, fair and reflective of national interests. Because elections become a parody, Presidential term limits do not mean much because someone from the tribal lineage will take over., anyway!
Names and faces change; but the interests of the nation are compromised. Stagnation happens, conditions deteriorate - and the youth become restless, wanting to migrate. This is becoming a vicious cycle.
So, this is a wake-up call for Africa: capitalism and its so-called ‘free market’ economy and ‘democracy’ are not working for Africa.
The economic system that Africa needs should be competitive, free market-based mode of production where accumulation of capital should be through ethical means and not the exploitation of workers, ‘labor power.’ The envisaged system should not favor any class or group and should be mindful of destruction of the natural environment and degradation of humans.
Everyone should have an equal opportunity to develop - thus growth of the society should be collective to ensure that there is no extreme gap or inequality within populations.
However, we should not legislate the poor into prosperity by legislating the wealthy out of prosperity. What one person receives without working for, another person must work for without receiving. You cannot multiply wealth by dividing it!
Specifically: two groups within the population are victims, the few rich snatch their opportunities or they are exploited to the teeth.
First, the rural population, which is surviving on subsistence agriculture, can easily be manipulated and oppressed.
The second is urban population, including slum dwellers who suffer from abject poverty in the midst of affluence.
The economic system for Africa should protect these two groups. So: who is responsible for doing this? It should be impartial politicians and the right political system.
In Africa, we need governments to be held accountable. Fair enough...But by whom? I don’t think a multitude of opposition political parties (I prefer ‘alternative’ parties) are the right way. One - or, at most: two - alternative parties should provide other options for the development agenda. The ruling party should also have an internal accountability unit. But , effective accountability lies with the citizens. For this to be realized, a free media is mandatory.
Africa needs a system wherein collective well-being is set above returns for individuals. This system should be subject to the guidance of “wise governance,” directed by technocrats, while being characterized by less ‘democracy,’ less market free-dom, rule of law, participation by citizens and a respect for human rights, sustainable economic opportunities, and human development. Is this utopian-thinking? I ask YOU!
Zulfiqarali Premji is a retired MUHAS professor. His career spans over 40 years in academia, research and public health.
