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Debt Relief: Sporting Game & Crushing Burden

*Sporting Game of the Powerful & the Corrupt - Crushing Burden of the Poor Masses.


- Oguchi Nkwocha, MD.

(Monday, February 14, 2005)

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"For this game to work, the loaner has to find a vulnerable country, usually with adequate resources—resources of interest to the loaner." -Dr. Oguchi Nkwocha


An African proverb states something like “when two elephants fight, the grass below suffers terribly.” The nuance in the interpretation of this proverb is that elephants never kill off themselves in their fights; but the trampled undergrowth certainly dies.

To hear General Obasanjo harp on his pet peeve, “debt relief for ‘poor’ African countries,” one would never suspect—never mind understand—that there is a game going on here, and that General Obasanjo himself is one of the players. While the “Paris Club” represents the Powerful, General Obasanjo represents the Corrupt, in this game; and while they enjoy their sport, the masses—that is, ordinary Africans, which is 99.99% of the populace—carry the unrelenting and crushing burden on their backs. This sport is definitely at the expense of hapless masses, that is.

It may come as a surprise to the reader to learn that the IMF loans to these “poor” African countries were never designed to be entirely paid off—any time, period. While one may argue that the IMF which only acts as a debt-collector, loan-disburser and contract-enforcer of the program may not be aware of such intent on the part of the loaner, the borrower-signatory to these loans understands that this is “a pact with the devil”: there is no way out. The loaner is the Powerful in our game; the borrower-signatory is the Corrupt. Each knows the score, as they say. How does this all work?

Let’s use General Obasanjo as an example, and this is perfect because plays his part in the game so well, and cherishes the sport immensely; of course, the profound victimization of the peoples suffering and dying in Nigeria as a result of Obasanjo-promulgated loan-related policies completes the sordid picture.

For this game to work, the loaner has to find a vulnerable country, usually with adequate resources—resources of interest to the loaner. (Nigeria; Oil). The goal of the loaner is to configure the loan package in such a way as to forever keep the borrower-country indebted to it; and force an expedient alignment of the country (for economic, political and diplomatic actions), with the loaner whenever the loaner commands it. With this type of contract—usually constructed legally and entered into legally—the borrower-country is compelled to practically hand over her national resources and their management to the loaner. Since the debt cannot be paid off in full, by contractual specifications and agreement, the term is, to say the least, long: very long.

Which country would be foolish enough to enter into such a suicidal and exploitative arrangement? The quick, short and accurate answer: None! How is it then, that there are borrower-countries in existence today? That’s where the likes of General Obasanjo come in. In each of these countries, there are so-called leaders and “principalities” who sign “on behalf of the country.” In actuality, these entities sign for themselves—for what they will personally get out of the deal. The loaners know the profiles and vulnerabilities of these so-called African leaders and principalities; such vulnerabilities are easily and methodically exploited, using mostly bribery and other monetary inducements, including corrupt practices, intimidation and blackmail, and sometimes, even outright assassination and or coups and dethronements. The end-result is that these “leaders” and other “persons of importance” get their pockets well-lined and deliberately overflowing with raw cash; they sign-off on the deal, and pass on the debt to the country in question as a national loan. As such, the loaners now have them on a tight leash. To protect themselves and appear to be on the side of the now burdened and perplexed masses, the paid-off officials and their cronies are “allowed” to shout about “debt relief” to the peoples and to the world, just like Obasanjo and his administration are doing now. It is not to be forgotten that the loaners need these corrupted operators alive and in charge of their country in order for the lopsided deal to remain in effect.

So, there is General Obasanjo running around pretending to be interested in debt relief for African countries, all the while, in full understanding of what is really going on. Oh yes, he can be sincere, or fake sincerity—that’s all part of the act, and the Paris Club allows and understands that. Part of General Obasanjo’s profile is egotism: he nurses the ambition to either be “President-for-Life” of Nigeria, or President-for-Life for the African Union, or both. Failing that, he wants to write his own history as a (self-appointed) Hero of Africa who will be credited with extracting from the Paris Club debt-forgiveness for Africa. Nevertheless, as expected, the Paris Club has found a way to use General Obasanjo’s personal ambitions and egotism in the ongoing implementation of its plans.

The Paris Club can do this because it knows that General Obasanjo is on the list of the beneficiaries of the loan-fund monies that went straight and or indirectly to his and their personal accounts. The Paris Club knows the account numbers and which banks they are in. In fact, the Paris Club knows that if all the fraudulently obtained funds and the fund-derivatives are added up, there will be enough to pay off the debts: hence, one can appreciate and validate the earlier assertion that these loans were designed never to be paid off outrightly, any time, because if the Paris Club really wanted, it can find ways to legally impound such accounts and recoup its loan-due. While Obasanjo makes his speeches, the Paris Club is pleased to see him and his cronies get richer from the derivatives of these loans, even as we speak, and pats itself on the back for having profiled them well, seeing now how their greed has become as large or even larger than their hypocrisy. It truly is working out for them—what a sport!

But, wait a minute. General Obasanjo is upping the ante, and the sport may be taken out of the game. First, General Obasanjo was forced to ignore his strong prejudice and policy of denying Igbo-Biafrans any meaningful role in his government (or in Nigeria for that matter), by accepting IMF pressure to hire Okonji-Iweala, a well-respected and intelligent economist of International repute and IMF fame, as part of his Economy-Team. Well, Okonji-Iweala is working her magic; the economy is improving just a little—maybe?—but the IMF debt is not shrinking. So, General Obasanjo has returned the favor: he is now sending Okonji-Iweala to carry his debt-forgiveness begging message back to the Paris Club. Okonji-Iweala is now singing Obasanjo’s mantra to the IMF and Paris Club. Of course, the Paris Club’s response is only predictable, something like: “Oh we sympathize and want to be helpful, but we want to first make sure that the masses will be the beneficiaries of any debt-relief…” This is what the Paris Club says openly, while behind the scenes, there is wild laughter and chuckling, because it knows fully well that no borrower-country can meet such a condition—least of all, General Obasanjo’s Nigeria—for the mere reason and fact that all accruing financial benefits are snapped up, by deliberate design, by the leaders (including Obasanjo himself), principalities and cronies, leaving nothing for the masses. As if to prove the Paris Club right, right on cue, the Inspector-General of Police of Nigeria was credibly accused of, and is being investigated for, money laundering and fraudulent acquisition of very large funds; and General Obasanjo himself is reported to have ordered a soft-pedaling of further investigations and or future prosecution. No surprises here. The Paris Club is still laughing!

But, that is not all. General Obasanjo is trying to go toe-to-toe with the Paris Club. He has invited China, an arch, if not hostile, competitor to the Paris Club, into the economy (and governance?) of Nigeria. Then he invited North Korea to presumably man Nigeria’s fledgling totally unnecessary Nuclear program. Here, first, General Obasanjo gambles by assuming that he can get leverage against the Paris Club by getting Nigeria to join the Nuclear Club. Next, he asks North Korea to run it—a definite anathema to the Paris Club. Not quite done, General Obasanjo, taking Nigeria with him, started making overtures to Iran. None of these moves was really necessary, unless you have the profile and mindset of General Obasanjo. Maybe he is bluffing, or maybe he is really trying to set up a counter-Club, the condition for membership being an anti-Paris Club bent? You get the picture.

Even while the sporting was good, the masses in Nigeria suffered immensely. Now that the game is going to turn bloody (and it will), among or between the Paris Club and the “Corrupt Club,” things will still get hotter for the masses of hapless peoples living and dying in Nigeria, peoples whose lives are being ruined by the intrigues of corrupt and greedy officials lusting after money and power, unscrupulous persons who have no qualms about selling out and selling off the collective interest of the masses and mortgaging the latter’s future.

For sure, no average person living and dying in Nigeria can tell you that his or her consent was sought directly or indirectly before the loan was obtained by Nigeria’s foisted leaders—including General Obasanjo. Nor can such a person identify one thing of benefit to his or her life resulting from this loan. The typical, cultural, traditional ways of the various nations shackled together as Nigeria actually abhor borrowing of the sort, the people living by earning and saving up enough—if ever—to make a purchase. Debts are honored, and are to be paid in full, with interest when part of the agreement. Whining, pining and begging for debt-relief is not part of the original tradition and psyche of the different peoples living in Nigeria; rather, gratitude, propriety, duty and self-pride dictated that all debts be repaid as soon as possible. Now, these same peoples are saddled with a huge “national” debt which they did not ask for or negotiate, while their so-called leaders who have looted the funds have promulgated policies based on the loan conditions, and forced the policies on the peoples. These policies are best described by the peoples themselves as “anti-people.” General Obasanjo and his policies have already been placed in that category by the peoples presently suffering in Nigeria.

Next to become the lot of these peoples is the fallout from the implicitly “declared war” in the game between Obasanjo and Paris Club. With North Korea, Iran and China packed in Nigeria’s corner at Obasanjo’s invitation, the Paris Club will take the kid-gloves off. Obasanjo will not be the first victim of such a “war.” While Obasanjo thinks that he will be seen as a hero or worshipped as a martyr by the peoples, the fact is that at best, the people will see Obasanjo’s fate in the light that the Paris Club and Obasanjo deserve each other.

But the worst is this likely scenario: If the Paris Club dumps him and then chooses General Obasanjo’s successor (Obasanjo still thinks and brags about how he will select his own successor—and he is the self-acclaimed “Champion and Disciple of Democracy in Nigeria”?), Nigeria will end up with any one of the old military dictators who ruled and raped Nigeria. Remember, some of them have already visited with the Paris Club in connection with support for the Presidency of Nigeria come 2007: their role as the Corrupt in this game did not end just because they are out of power. This is a nightmare which the suffering peoples living in Nigeria will accept rather than join the Axis of North Korea / Iran / China, by whatever name and with all its implications. And, what a nightmare that would be!

General Obasanjo is gambling with the lives and fortunes (if there are any left) of the peoples whose initial serious misfortune in life is to have been born within the borders of a map drawn by Lord Luggard, later to be known as Nigeria. He is doing so by aligning Nigeria with North Korea, Iran and China, in order to pressure or spite the Paris Club in an initially sporting game now turning into a no-holds-barred melee. General Obasanjo hopes to achieve for himself a hero status, or even perhaps, a martyrdom. While he can buy the opinions and praise of his sycophants, neither the peoples suffering in Nigeria, nor other Africans following these events will accord him such a status. We see only an egotistic and ambitious overbearing corrupt dictator following the same path of previous small-minded dictators like him.

What needs to happen in Nigeria is a break up, along the lines of the original ethnic nations living there. Such nations can then decide how to associate with one another on an inter-national basis. To foist over these Nations ongoing Nigeria with different “Corrupt” leadership in order to satisfy the Paris Club is the worst possible scenario, right next to the continuation of Nigeria as presently structured even by its own so-called leaders, on their own without any further tampering by outside forces. The latter stands right next to Nigeria going North Korea / Iran / China-way: these are all terrible and horrendous options. A clean breakup is the only viable solution

When the nations go their own different ways, the Paris Club can forgive the debts, if it wants. Or, these nations can repay the loans on a renegotiated schedule with a full payoff plan. Any nation subsequently accepting an IMF loan would then have itself to blame for entering “the game” once again.

As for the rest of Africa, it is time for new leadership across the board, time to say, Goodbye to the Obasanjo’s, and time to restructure political boundaries along natural ethnic divides, with stability, cooperation, peaceful coexistence, equity and respect for one another and property as the operational principles. Then, Africa will never again have the sort of vulnerability that results in lope-sided IMF-type loans. As for outstanding loans, the IMF can be legally empowered by the new African nations to go after any and all loot taken from Africa by the known Corrupt to satisfy their debt repayment.

This sporting game by the Paris Club and the Corrupt leadership of African countries is bad enough for the masses who always bear the brunt of it all. When their fun turns into a rough game, as in this case of Obasanjo Versus the Paris Club, that’s even worse for the peoples of Africa / Nigeria. The solution is the Declaration: “Game over!” “Sport or war, no more!” To end the game, Africa must go through restructuring. No “country” is more ripe as an example for restructuring than Nigeria. That remains the only viable solution.

Related Links:- 
Nigerian decision on debt baffles investors
$170b owned by Nigerians in foreign banks
Odious Debts - Foreign debt: Nigeria's mill stone
Nigeria to push for debt relief
Why Nigeria’s Debt Should Be Cancelled
Nigeria: Debt, Loot and the Economy
Paris Club Website

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