Home > Allies and Networks > Africa Trade Network (ATN) > Pathways of Financialization in Africa

Objectives

Premises

  • Structural adjustment laid the foundation for informalization and criminalisation at all scales
  • Many assets now vertically linked to offshore spaces and opportunities for corruption
  • global processes of Financialization are linked to national and local processes of accumulation through dispossession and displacement (Harvey)

Ongoing struggles

  • a ‘Financialization of power’ process acts to repurpose political systems to service this extractive Financialization
  • Leads to corruption and state capture at national scale and illicit financial flows
  • New forms of private sector corruption are also part of this repurposing

Solutions

  • Contributory system of tax
  • Mandated national domicile

1.1 Crisis and informality

  • Economic informality and inflation grows during political crisis (cf Zimbabwe, Congo, Cameroon, Sierra Leone, Somalia)
  • This is not only chaotic, but organised for survival and accumulation, “instrumentalisation of disorder” (Chabal and Daloz, 1999)

Zimbabwe

  • Bulawayo’s ‘World Bank’ on Fort Street; cross border traders
  • Is not only horizontal but vertical or ‘gangster’ (Mawowa and Matonga, 2010, 323)
  • ‘Roadside currency trade linked to illicit diamond and smuggling, US$800 million and US $400 million respectively in 2007 alone (Mawowa and Matongo, 2010, 321, citing Gono, 2007, 5-6)
  • Patriotic nationalism lead to Murambatsvina (2005) and Industrial Chimurenga (2001 – ); deliberate displacement of people, and destruction or seizure of assets and businesses (Bracking, 2005)
  • Export of wealth by Politically Exposed Persons (PEPs) and High Net Worth Individuals (HNWIs)
  • ‘Accumulation by dispossession’ (Harvey,2005)
  • Political crisis (and peoples displacement and dispossession) generates financial displacement and wealth migration

Professor Sarah Bracking

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