Why African gold cannot back African currencies? What African scholars did not learn in London School of Economics, Wharton School and others is that politics of western privileges comes before economics or Gold Standard. Politics dictates which economic theories they adhered to. English common laws are built on these privileged economic theories. So common laws upon which western economic laws are based shape policies where regulations are made or enacted.
Natural resources stolen before Independence deserve remuneration compared to those taken with the full cooperation of leaders. Repatriation of gold is different. It was a commodity, not humans, freely taken and royalties paid to another country. Some of us still remember the Gold Standard used to back currencies. Keeping gold reserve in other countries in “good hands” as credit. Try to abandon this global monetary system, a high destabilizing measure for western countries that only print paper money without the amount of gold found in Africa to back it up.
Africa is yet to gain equal entry into world Trading Club. Even when we are Banana Republic. By the ruling of World Trade Organization in 2012, small farmers in St. Vincent, St. Lucia, Grenada, Dominica and Martinique lost the banana trade war to our Latin American countries. If you are following the trade threats between United States and China, you know that China, despite its authoritarian and communist system, was allowed into the Rich Country Club to spite Russia.
In the Judeo-Christian Tradition of Capitalism on which these moral values are based, there is little moral obligations for serfs, slaves or captured non westerners by war or conversion into Judeo-Christian beliefs and culture. Clergies bless them for rewards in heaven. The Covenant of Good Faith and Fair Dealings curbed excessive greed within the western society, not outside of it. So while they preach moral obligations within, it does not extend to those “aliens”.
However, the liberals, unlike conservatives, argue otherwise. It must be stated that it was the old economic order, privileged class depended on everywhere. Even in Africa, men have their privileges over women. It has been reformed but custom still remains with “kinder and gentler” conservatives (good old days men) in the western world. This is the basis of the opposite views between conservative religious right and other religious bodies to the left and center doctrines.
The scramble for Africa was not by accident, but a well-executed plan in order to get raw materials for the sustenance and enrichment of the western world. Raw materials could only feed the industrial machines of the conquerors from which finished products are made. By the time finished goods are sold back to providers of raw material, excessive profits, jobs creation and growth at home but only crumbs paid back to Africa. China deals not as bad for alternative.
Indira Gandhi got India to the door of Rich Club after condemning “Aids”. She demanded equal Trade not “Aids”. Indeed, greed is a motivation for riches and it is not the means that matter but achievement of their goals. They eased India and Pakistan in with the prerequisite of Nuclear Power into the Trading Club. North Korea will finally get incentives not to go ballistic.
Many countries have been able to bring their gold back home after the wars that devastated their countries. Recently, Germany brought its gold back home from United States. Many other Asian and South American countries have done the same, keeping it out of the reach of enemies as in the case of Russia against East and West Germany.
However, Venezuela under Hugo Chavez brought its gold home in protest against capitalism with little effect trumped by western politics. More disconcerting to Europe and America was the cause championed by the former Strongman of Libya, Mohammed Gadhafi. He wanted the Gold Standard brought back to back each currency. He went further, proposed that most oil producing countries should change from United States dollar to dinar or oil currency.
Libya paid $2.7b for Pan Am Flight 103, which killed 270 people. Then, Gadhafi regime became tolerable to the western world since he was willing to give up his nuclear intelligence obtained from Pakistan. He actually became an “important ally”. He later became a target for regime change within a few years after proposing dinar for African oil producing countries.
This is 2018 and many African countries are still robbed of their natural resources in gold, diamond, cobalt, uranium, tin, cooper, oil and gas flared with cooperation of the local cabals without any accountabilities. When Zimbabwe asked for lithium refinery, agreement stalked. The Ghana Customs Division Revenue Authority (GRA), impounded 12 boxes at the Kotoka International Airport containing gold bullion weighing about 480kg, valued at US$18million.
Nigeria does not have a firm grip of the amount of crude oil leaving the country. Gas is still being flared after promises and ignored laws to capture it for energy because they would rather import refined oil and gas into the country. Recently some foreign citizens were arrested for illegal mining but only a few of them were convicted in Nigeria.
Ironically, Gold Standard to back currencies became a common demand between both right and left political wings. Western gold reserve banks are not backing their currencies with gold anymore while African currencies with more gold that western countries, are devalued into toilet papers. When challenged, Lumumba was murdered, Ujamaa in Tanzania was rubbished. Zimbabwe suddenly tumbled from the Queen dearest to a country whose currency was useless.
The use of vicious force and economics of privilege is clear. As other continents were found or discovered, indigenous people of Africa and America became subservient to western privileged class. Asia could not be swallowed fully, so they conquered the countries they could. Those that were not compliant were subdued by force as the use of Atomic Bomb in Japan. The subdued people were either captured, killed or used as slaves for their own privileged prosperity.
There was a country called Gold Coast, the present day Ghana, which lost its gold and royalties to England under a different circumstances in the days of colonialism. Most civilized countries now agreed that colonialism was as wrong as slavery. But they are not the same. In the case of slavery, Diaspora Africans are demanding repatriation in the form of compensation for free labor they performed in building western countries
Written by Farouk Martins Aresa.