The economic condition of Africa

Seth A.

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The economic condition of Africa

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Abstract

Africa, from what I've learned, seems to be a place of change, some for the better and some for the worse. With this change comes a lot of political turmoil and with that turmoil and the promise of riches at the expense of their country comes corruption. One country with which I've had a lot of interest in since reading about it last semester is Equatorial Guinea.

EG is one of the smallest countries in mainland Africa. It is run by President Teodoro Obiang Nguema Mbasago and the 1982 constitution (that was made while he was in power) gives him extensive powers, thereby making him unchallengeable in his rule of the country. He has the power of naming and dismissing members of the cabinet (just like the Leader instills fear in his government officials who continually try to please him by one upping each other), making laws by decree (as the Leader, whatever he says goes), dissolving the Chamber of Representatives (I'm sure if they threaten him too much), negotiating and ratifying treaties and calling legislative elections.

Introduction
Political unrest and the finding of oil
Riggs Bank and Equatorial Guinea
Investing in a foreign country
The issue of bribery
The country of EG
The conditions of citizens of EG
The role of the U.S. companies
Conclusion

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[...] A security team was then hired by Exxon Mobil owned by the president's brother, Armengol Ondo Nguema, who, as well, had been accused of human rights abuses within his security forces. In a report released in 1999, the State Department said that due to orders from Ondo, security forces “urinated on prisoners, kicked them in the ribs, sliced their ears with knives, and smeared oil over their naked bodies in order to attract stinging ants.” This sounds a lot like the Leaders trusted minister of the state Sikiokuu who has his political enemies (who seem to change from one moment to the next) locked in prison, beaten and just ghastly tortured with no checks from anyone to show that what he is doing is a crime against humanity. [...]

[...] The companies that violate these international corruption laws are often hard to pick out though because so much of the dealing is done under the table by equally corrupt U.S. businessmen. EG is run by the president, and as I said before, human rights activists have said that oil company payments have helped keep him in power since he took over in a military coup in 1979. State department reports have reported his regime for human rights violations such as torture (Tajirka), beatings and abuse of prisoners and suspects (Virjinnia), sometimes even resulting in death (the Ruler was ruthless often beating suspects to death and ordering death to any that opposed his rule). [...]

[...] From reading the books in class I got an idea of the types of goings on that happen in Africa: corruption, sexual abuse, etc, but at that time it was just a fictionalized account of what was really going on. But I can't even begin to imagine how hard life must really be for some of these people. It wasn't until I actually did in depth research on WOTC and for this paper that I realized that things were really that bad. [...]

[...] It's these human indecencies that keep countries in Africa from expanding out of the 3rd world countries they are. As I read more and more into this it's amazing to me how far the corruption can run, as the U.S. oil company Hess, paid nearly million for building leases, and then Hess and Triton Energy negotiated the lease of property from a 14 year old relative of the president worth $445,800, although he was “represented” by his mother. A U.S. [...]

[...] But recently an international coalition of groups, intent on finding out what is really happening with the money, have been lobbying for full disclosure of fees the companies pay to do business. According to one financer of the project it would pressure the oil companies and make it “more difficult to engage in those practices.” But it has not been totally successful as it doesn't seem to include payments made to government officials, and their family members and also the businesses they control, which would seem to be the main part of where they would focus this inquiry as that's where most of the corruption and money laundering take place. [...]

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