All that glitters is not gold

Ludicrous/Lucrative - The title for Europe's African Empire Domination

In the early 1950's Britain's noted public schools had courses in running African Empires. Young men were trained to take on positions running Kenya or Uganda of wherever the British flag still waved. British students picked out the foreign post to pursue upon completing the classic studies. That all ended when the African Empires sought independence from the British.

In 1800 the Western empires claimed 55 per cent of the Earth's surface. By 1878 the proportion held was 67 per cent, and by 1914 had come to hold 85 per cent of the Earth as colonies, protectorates, dominions and commonwealths. Of these powers, Britain and France were pre-eminent, holding between them Canada, Australia, New Zealand, colonies in North and South America and the Caribbean, most of Africa, the Middle East, the Far East as well as the Indian subcontinent in its entirety.

As for oil, Nigeria is a major player. Its high quality petroleum, in light of the instability in the Persian Gulf, is vital to America and the West. Nearby Gabon also has vast, untapped fuel stocks. And Algeria, Libya, Egypt and Angola are also significant oil producers. The Democratic Republic of the Congo (DRC) has the world’s largest supply of industrial diamonds, and Namibia is the globe’s greatest source of gemstones.

However, these riches are a mixed blessing. They often engender bitter struggles for a nation’s resources, fueled by outside interests and the weaponry these resources enable the combatants to obtain. This is exactly the scenario in Sierra Leone, Liberia, Angola and the Democratic Republic of the Congo at the present time.

Precious minerals also fuel corruption. Often rulers simply pocket the profits. In fact, the people usually don't even know how much their leaders are being paid by outside interests to access their nation's wealth.

As of late, though, there have come calls for "financial transparency," that is, publishing the actual fees paid, and to whom by the foreign companies. This would enable the people to better hold those who represent them to account, and thus help alleviate the corruption, and the conflict, surrounding the extraction of Africa's mineral wealth. At one point, British companies seemed ready to agree to operate transparently, but they began to pull back when the American oil companies were reluctant to follow suit.

President Bush has said he's extremely interested in Africa's welfare. If he simply used his influence to pressure his acquaintances in the oil, and other extractive industries, to agree to transparency, this would help achieve the goals he professes. And it wouldn't cost the American taxpayers, consumers or oil companies anything more. (Curiously, this vital initiative is yet to be even mentioned in the American news media.)

In addition to war and corruption, indebtedness is another cost of being "blessed’ with resources. International banks are always eager to extend loans for economic development projects, with a country’s resources held as collateral. Naturally, the nations with the largest resources are eligible for the largest loans.

These "development" projects, however, are usually, ill-conceived and poorly executed. And they furnish ample opportunity for further corruption. Even when more responsible governments come to power (as in the case of Nigeria) the old unpaid debts remain continuing to accrue interest, and increasingly weighing down the entire economy.

Finally, look at the sharp contrast in how two key African minerals, coltan and tanzanite, are being handled. Coltan is a very rare metal, found in the Democratic Republic of the Congo that is vital in cell phone construction. The struggle to control it is now fueling some of the deadliest fighting going on in the DRC.

Tanzanite, perhaps the most precious of all gemstones, is found only in Tanzania. It is being mined slowly and carefully, not by a single large concern, but by a multitude of small, reputable companies. And all transactions and fees paid are open to public scrutiny.

So we see that Africa’s minerals can be handled wisely, and used to enrich and uplift, not impoverish and demolish. The Tanzanian case, and similar examples, and the principles they employ, need to be publicized worldwide to enlist the sentiments of the public to make them normal business practices in Africa and throughout this our global village...