Letter to Museveni on Oil Refinery, Kilembe Mines: Review Infrastructure Financing Model

Dr Barnabas Taremwa Bwaniaga 

The President of Uganda, Your Excellency YK Museveni.

As I predicted in my previous letters to you about two projects, 1-The oil refinery, 2-Kilembe mines and Mineral development in general, nothing has happened.

Unfortunately, if we don’t change the approach and remove major players from respective ministries nothing will happen in our lifetime! 

Mr President, I know you’re a very good reader and a researcher as well. I humbly request you to read these two books.

But I also know that you are very busy with state affairs. For that matter, let me give you a summary of both books.

1– The confessions of an economic hit man.

2-White Malice. These two books are not fiction stories but reality of global empire operations.

John Perkins’s book “Confessions of an Economic Hitman” delves into the murky world of international business, geopolitics, and clandestine operations of American multinational corporations supported by the US intelligence agencies. 

Perkins is a former chief economist at a prominent consulting firm who claims that he was an “economic hit man” for the United States. He argues that American corporations and the government conspired to economically manipulate desperate nations, often through deceitful means, resulting in the physical removal or death of unwilling foreign leaders.

In his controversial narration, Perkins cites two paramount examples of foreign heads of state who, he alleges, were overthrown or assassinated due to their unwillingness to comply with the United States and its corporate interests: Jaime Roldós Aguilera of Ecuador and Omar Torrijos of Panama.

Jaime Roldós Aguilera, democratically elected as the president of Ecuador in 1979, attempted to confront multinational corporations exploiting Ecuador’s petroleum resources. More importantly, he proposed the Hydrocarbons Act, which sought to limit foreign corporate influence and redistribute wealth back to the Ecuadorian population, thus challenging the neocolonial economic model promoted by the US. 

This, according to Perkins, made him a target. Roldós’s plane mysteriously crashed in 1981 in conditions that fostered suspicion of foul play. Perkins distinctly hints at CIA’s involvement, arguing Roldós’s policies were seen as economically detrimental to US energy interests.

Panama 

Simultaneously, General Omar Torrijos, Panama’s leader, was known for his nationalist and populist policies. He dared to provoke US ire by negotiating the Panama Canal treaties of 1977, which gradually transferred control of the canal from the United States to Panama. The treaty was seen by the US as a symbolic loss of their hegemony. 

Perkins alleges that Torrijos’s strong advocacy for Panamanian sovereignty over its resources and refusal to abide by foreign neoliberal economic prescriptions led to his elimination. Like Roldós, Torrijos died in a suspicious plane crash in 1981, fostering theories of CIA’s involvement. 

Perkins suggests that these leaders threatened the plans of corporate conglomerates by sticking to policies that protected their countries’ natural resources and the welfare of their people. 

He reveals the interventionist tendencies of the US, allying with multinational corporations, to maintain political and economic control in less powerful nations. Their tool of persuasion was capital and their method, corruption, and if that failed, intimidation or assassination would suffice.

Expanding further, Perkins elaborates on the modus operandi of economic hitmen like himself. They extend astronomical loans to vulnerable countries for infrastructural development projects. 

Knowing very well that these countries can’t repay these loans, their rich natural resources were then plundered by US corporations, shackling those nations in debt.

Leaders like Roldós and Torrijos who resisted this vicious cycle were deemed obstructionists to the capitalist empire-building process, leading to their alleged assassinations.

Perkins presents an unsettling glimpse into the intersection of world politics and economics. He shares a narrative in which developed nations, particularly the United States, maintain their global supremacy by determining the leadership of less powerful countries through financial manipulations and veiled threats. 

His claims have caused considerable debates regarding the ethics of global finance, the fairness of international investment, and more darkly, the alleged willingness of powerful nations to topple or eliminate those who stand in the path of their narrow economic interests.

White Malice 

“White Malice: The CIA and the Covert Recolonization of Africa” by Susan Williams presents a harrowing tale of neo-colonialism, assassination, subversion, and interference in the post-independence era of Africa spanning 50s to 90s. Many African leaders fell victim to the alleged machinations of America and its allies. 

Delving into the question as to why America and its allies were perceived to be victimizing Africans requires an understanding of the geopolitical and strategic context of the time. Post World War II, the world had been cleaved into two distinct spheres of influence. 

On one side was the Western bloc led by the U.S, subscribing to capitalist ideologies, and on the other was the Eastern bloc led by the Soviet Union, espousing communist ideologies. Africa, in this global backdrop, with its newly independent nations, rich in resources, became a prominent chessboard in the Cold War hostilities.

From the viewpoint of the U.S and its allies, African nations were potential dominoes that could topple towards either communism or capitalism. The desire to prevent the spread of communism largely motivated America’s foreign policy. 

As many African nations leaned towards socialism, they were viewed as potential Soviet allies, leading to the U.S’s attempts to undermine or eliminate the leaders perceived as threats.

Henceforth, the broader victimization of Africans can be perceived within this context – a manifestation of Cold War politics and a legacy of colonial attitudes toward Africa.

Moreover, economic interests closely followed political ones. African nations are immensely rich in resources like oil, gold, diamonds, uranium, cobalt, and more. 

These resources became a pawn in the power games of world politics. America and its allies, aspiring to control these resources, allegedly manipulated political scenarios in Africa, leading to destabilization, civil wars, and assassinations. 

However, the perception of the victimization of Africans by America and its allies was fostered by instances of democratic erosion, support for autocratic regimes, perpetuation of violence, and blatant disregard for human rights. 

American foreign policymakers, paradoxically, often supported dictators who promised to keep communism at bay, sidelining the democratic ideals they upheld.

In more specific instances such as the assassination of Patrice Lumumba of the Democratic Republic of Congo, purportedly backed by American and Belgian intelligence agencies, Africa lost a visionary leader. Lumumba, a strong nationalist and pan-Africanist, could have steered Congo towards prosperity, but his socialist propensities deemed him a threat to Western interests.

Nkrumah 

Similarly, Ghana’s first Prime Minister and President Kwame Nkrumah, a staunch supporter of pan-African unity, found his government overthrown in a military coup while he was on a peace mission to Vietnam. Many view the coup, which was surprisingly lauded by Western nations, as a manifestation of White Malice.

while stark individual instances of victimization remain, it’s crucial to lump the entire US-Africa policy as malicious. 

The Cold War era was characterized by an atmosphere of paranoia and ideological warfare, and in many respects, Africa was caught in the crossfire. Furthermore, it is important to consider the complicit role of certain African elites and the inefficacy of African institutions that also contributed to the woes of Africa.

According to Perkins’ account, his job involved persuading developing countries to take on large infrastructure projects, primarily through loans provided by the World Bank and IMF. These projects were often criticized for being environmentally and socially damaging and were aimed at benefiting the interests of major corporations and the US government.

Perkins alleged that the primary objective of these projects was not economic development or poverty alleviation as purported, but rather to generate significant profits for the corporations involved. 

He claimed that the economic hitmen would secure these loans with high-interest rates and conditions that were not beneficial for the borrowing nations. This would result in the countries being trapped in debt and vulnerable to political manipulation by the United States.

Perkins also pointed out that if a country’s government didn’t comply with the demands of the economic hitmen, covert tactics, such as bribery, assassination, or even military intervention, may be used to ensure compliance.

World Bank 

In conclusion, according to his book, John Perkins accused the IMF and World Bank of utilizing economic hitmen to further the interests of corporations and the US government.

In my view, the development of the mineral and oil industries in Africa, a shift in the financing model is indeed essential. 

The involvement of entities such as the World Bank, IMF, and USA companies should be reconsidered, and a new approach must be adopted. 

Firstly, it is important to acknowledge that the African continent possesses vast mineral and oil resources that can contribute significantly to economic growth and development. 

However, the traditional financing framework, which heavily relies on external entities, may not be conducive to maximizing the benefits for African nations. 

By promoting alternative financing mechanisms, Africa can regain control over its resources and ensure that the revenues generated are reinvested domestically for sustainable development. This can be achieved through partnerships with emerging economies, regional organizations, and private investors who are willing to provide financing with more favorable terms and conditions.

Additionally, African governments should prioritize local content development and capacity building to ensure that their countries can effectively participate in the mineral and oil industries. 

By promoting the training and employment of local workforce, technology transfer, and the establishment of local supply chains, Africa can capture a larger portion of the value generated by its resources.

Moreover, fostering transparency and good governance is crucial to attract responsible investments. Establishing robust regulatory frameworks, implementing effective monitoring systems, and combating corruption are essential to create an enabling environment for sustainable development.

Ultimately, by reevaluating the financing formula and actively seeking new partnerships, Africa can take control of its own resources and ensure that the development of the mineral and oil industries contributes to the long-term economic advancement of its nations.

The author is a Global senior citizen