Brics lessons from MozambiqueBobby Peek2013-07-24, Issue
640<http://www.pambazuka.org/en/issue/640>
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*cc P Z* <http://www.pambazuka.org/>Brazil is among the extracting wealth
from Mozambique. The southern African nation could soon join the resourced
cursed societies, with polluted local environments and a changed structure
of peoples’ lives, making them dependent on foreign decisions rather than
their own local and national political power

Just across the border in Mozambique there is neo-colonial exploitation
underway. It is not Europe or the United States that are dominating, but
rather countries which are often looked up to as challengers, such as
Brazil, Russia, India, China and South Africa. This is a dangerous
statement to make but let us consider the facts.

South Africa is extracting 415 megawatts of electricity from Mozambique
through the Portuguese developed Cahora Bassa Dam, which has altered
permanently the flow of the Zambezi River, resulting in severe flooding on
a more frequent basis over the last years. In the recent floods earlier
this year it is reported that a women gave birth on a rooftop of a clinic,
this follows a similar incident in 2000, when Rosita Pedro was born on a
tree after severe flooding that year.



*cc P Z*


South Africa’s failing energy utility Eskom is implicated in the further
damming of the Zambezi, for it is likely to make a commitment to buy power
from the proposed Mpanda Nkua Dam just downstream of Cahora Bassa. Most of
the cheap energy generated by that dam is fed into a former South African
firm, BHP Billiton, at the world’s lowest price – but jobs are few and
profits are repatriated to the new corporate headquarters in Melbourne,
Australia.






*cc P Z*
After years of extracting onshore gas from near Vilanculos, the South
African apartheid-created oil company Sasol is planning to exploit what are
some of Africa’s largest offshore gas fields, situated off Mozambique, in
order to serve South Africa’s own export led growth strategy.

Brazil is also in Mozambique. Sharing a common language as a result of
colonial subjugation by the Portuguese, business in Mozambique is easier.
The result is that the Brazilian company Vale, which is the world’s second
largest metals and mining company and one of the largest producers of raw
materials globally, has a foothold in the Tete Province of Mozambique
between Zimbabwe and Malawi. They are so sensitive about their operations
there that an activist challenging Vale from Mozambique was denied entrance
to Brazil last year to participate in the Rio +20 gathering. He was flown
back to Mozambique, and only after a global outcry was made led by Friends
of the Earth International, was he allowed to return for the gathering.

Further to this, India also has an interest in Mozambique. The Indian based
Jindal group which comprises both mining and smelting set their eyes on
Mozambican coal in Moatize, as well as having advanced plans for a
coal-fired power station in Mozambique, again to create supply for the
demanding elite driven economy of South Africa.

Russia also plays an interesting role in Mozambique. While not much is
known about the Russian state and corporate involvement, following the
break when the Soviet Union collapsed, there is a link with Russia’s
Eurasian Natural Resources Corporation which has non-ferrous metal
operations in Mozambique. Interestingly the Russian government has just
invested R1.3 billion in Mozambique to facilitate skills development to
actively exploit hydrocarbons and other natural resources, according to
Russian Foreign minister Sergei Lavrov.

So this tells a tale of one country, in which tens of billions of rands of
investment by BRICS countries and companies in extracting minerals results
in the extraction of wealth. Mozambique will join the Resourced Cursed
societies of our region, with polluted local environments, and a changed
structure of peoples’ lives, making them dependent on foreign decisions
rather than their own local and national political power. This is not a
random set of exploitations, but rather a well-orchestrated strategy to
shift the elite development agenda away from Europe, the US and Japan, to
what we now term the BRICS.

This positioning means that the BRICS drive for economic superiority is
pursued in the name of poverty alleviation. No matter how one terms the
process – imperialist, sub-imperialist, post-colonial, or whatever – the
reality is that these countries are challenging the power relations in the
world, but sadly the model chosen to challenge this power is nothing
different from the model that has resulted in mass poverty and elite wealth
globally.

This is the model of extraction and intensely capital-intensive development
based upon burning and exploiting carbon, and of elite accumulation through
structural adjustment also termed the Washington Consensus. The agenda of
setting up the Brics Bank is a case in point: it is opaque and not open to
public scrutiny. Except for the reality as presented above, these countries
are coming together with their corporate powers to decide who gets what
were in the hinterland of Africa, Latin America, Asia and the Caucuses.

It is projected that by 2050, Brics countries will be in the top ten
economies of the world, aside for South Africa. So the question has to be
asked why is South Africa in the Brics? Simply put, the reality is that
South Africa is seen as a gateway for corporations into Africa, be they
energy or financial corporations. This is because of South Africa’s vast
footprint on the continent.

Remember Thabo Mbeki’s peace missions? Well they were not all about peace;
they were about getting South African companies established in areas of
unrest so that when peace happens they are there first to exploit the
resources in these countries. This could potentially be a negative role, if
South Africa is only used as a gateway to facilitate resources extraction
and exploitation of Africa by BRIC countries, as it is now by the West. The
question has to be asked by South Africans why do we allow this? I do not
have the answer.

Returning to poverty alleviation, the reality is that in the BRICS
countries we have the highest gap between those that earn the most and the
poor, and this gap is growing. Calling the bluff of poverty alleviation is
critical. How to unpack this opaque agenda of the Brics governments is a
challenge. For while their talk is about poverty alleviation the reality is
something else.

We recognise that what the BRICS is doing is nothing more than what the
North has been doing to the South, but as we resist these practices from
the North, we must be bold enough to resist these practices from our fellow
countries in the South.

Thus critically, the challenge going forward for society is to understand
the BRICS and given how much is at stake, critical civil society must
scrutinise the claims, the processes and the outcomes of the BRICS summit
and its aftermath, and build a strong criticism of the Brics that demands
equality and not new forms of exploitation.

* Bobby Peek is director of the NGO groundWork

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