Tag Archives: foreign affairs

Understanding the ways Canada underdevelops Africa

The question gets asked often: How can Africa be so poor when it receives so much aid?

The answer is simple. The world economic system sucks more out of the continent than it puts in. And tax evasion by Canadian firms plays a significant role in this impoverishment.

The May report, Honest Accounts 2017: How the World Profits from Africa’s Wealth, concludes that more wealth is extracted from the continent than enters it. In 2015, African countries received $162 billion in aid, loans, remittances and foreign investment but lost $203 billion through tax avoidance, repatriation of profits and climate change costs caused by others.

(The report ignores the structural imbalance in the terms of trade that sees the bulk of the value of tea, coffee, cocoa and many other commodities produced on the continent captured by distributors, marketers, retailers, etc., outside Africa while a higher share of the value of imported buses, phones, computers, etc., is captured by producers outside the continent.)

On top of the $32 billion corporations repatriated in profits, Honest Accounts found that $68 billion was lost to illicit capital flight, mostly multinational corporations evading taxes. Their findings align with a 2015 UN Economic Commission for Africa/African Union panel that found companies are illegally moving about US $40 billion a year out of the continent. The Washington, D.C.-based Global Financial Integrity Forum found that between 1970 and 2008 “total illicit financial outflows from Africa, conservatively estimated, were approximately $854 billion. Total illicit outflows may be as high as $1.8 trillion.” Three per cent of this total was thought to be bribes to government officials or theft of public funds. Fifteen per cent of all illicit outbound transfers were found to be money derived from drug smuggling, counterfeit goods, racketeering and other common criminal activities. The vast majority of the illicit funds, up to two-thirds of the total, were cross-border commercial transactions designed to reduce or eliminate taxes. Most of this money consisted of corporations shifting goods and profits between jurisdictions to reduce or eliminate their tax bill.

Often called “transfer pricing” or “trade misinvoicing,” multinational corporations artificially adjust the price of goods sold between their subsidiaries or partner companies in order for profits to end up in low (or no) tax jurisdictions while costs appear in high tax countries where they’re deducted from a company’s tax bill. Author Alain Deneault describes transfer pricing thusly: “First, the corporation creates one or more subsidiaries in a tax haven. Then, it maintains business relations with the subsidiary as if it were an independent party. Transactions are always designed to benefit the subsidiary, because money earned by the offshore entity will not be taxed. In other words, the goal is to establish bogus operations with the subsidiary in order to record a large proportion of the company’s earnings in offshore accounts, removing them from taxation in countries where the corporation has real and substantial activities.”

Canada has helped build the global offshore financial system that enables transfer pricing. Deneault details the work of Canadian politicians, businessmen and Bank of Canada officials in developing taxation and banking policies in a number of Caribbean financial havens in his book Canada — A New Tax Haven: How the Country That Shaped Caribbean Tax Havens Is Becoming One Itself.

Resource companies are some of the leading culprits in misinvoicing. With commodity prices constantly in flux and their products entirely for export, mining companies are well placed to abuse countries’ limited means of investigating false invoices and transfer pricing. Half of all internationally listed mining companies operating in Africa are based in Canada and in Canada in Africa: 300 years of aid and exploitation, I detail more than half a dozen examples of Canadian mining firms publically accused of tax avoidance.

In one of the best-detailed examples, a series of reports suggest that Canada’s largest mining firm, Barrick Gold, short-changed Tanzanians of tens, if not hundreds, of millions of dollars. A 2003 Alex Stewart Assayers audit concluded that mining companies overstated their losses by US $502 million between 1999 and 2003, which cost the Tanzanian government $132.5 million. The audit also suggested that $25 million in royalties went unpaid.

Another report titled “A golden opportunity: How Tanzania is failing to benefit from gold mining” found that between 2003 and 2008, foreign mining companies exported US $2.5 billion in gold from Tanzania with only $110 million reaching the government in royalties and direct taxes. As Tanzania’s top gold producer during this period, Barrick consistently declared losses in order to pay minimal corporation tax. With many subsidiaries, including ones in notorious tax havens such as the Cayman Islands and Barbados, Africa Barrick Gold (now called Acacia) made it diffi cult for Tanzanian tax collectors to trace exactly what the country was owed.

Last year, a Tanzanian tribunal ruled that Barrick organized a “sophisticated scheme of tax evasion” in the East African country. As its Tanzanian operations delivered over US $400 million profi t to shareholders between 2010 and 2013, the Toronto company failed to pay any corporate taxes.

Transfer pricing deprives African governments of the tax revenues required to build schools, hospitals and other vital infrastructure. And tax avoidance by Canadian fi rms is one reason two-thirds of Africans continue to survive on less than US $3.10 a day.

This article first appeared in Canadian Dimension

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Canada a settler state helping pull imperial strings, not a colony

Colony or settler state?

Recently foreign Minister Chrystia Freeland dismissed concerns that Canada was seeking “regime change” in Venezuela by saying “Canada has never been an imperialist power. It’s even almost funny to say that phrase: we’ve been the colony.”

As I detailed in an initial response, Ottawa has passively or actively supported numerous U.S.-backed military coups against progressive elected governments. But, the conclusion to Freeland’s statement above is equally absurd, even if it is a common refrain among liberals and leftists.

Despite its popularity, the idea that Canada was or is a “colony” obscures Canada’s place near the top of a hierarchical world economy and polity. In probably its most famous iteration, prominent historian Harold Innis remarked that Canada had gone “from colony to nation to colony.”

Between 1867 and 1931, Canadian foreign policy was officially determined by London. But, describing this as a “colonial” relationship ignores the Canadian elite’s access to British capital, universities, armaments, etc., as well as Canada’s role in extending British power westward and, to a lesser extent, in Africa, Asia and the Caribbean.

While technically accurate, employing the term “colony” to describe both Canada and Kenya makes little sense. British, French and other settlers in Canada were not dispossessed of their land, but rather dispossessed First Nations. Additionally, they faced no repression comparable to that experienced by the Maasai or Kikuyu. Calling Canada a “colony” is akin to describing the European settlers in Kenya as “colonized”. While tensions existed between the whites in Kenya and the Colonial Office in London, the settlers also had privileged access to British arms, technology and capital.

At first, Canada was an arm of the British Empire, conquering the northern part of the Western hemisphere by dispossessing First Nations. After 1867, Ottawa regularly argued it “was looking after British imperial interests in North America and that the country’s material growth reinforced the British Empire,” writes Norman Penlington in Canada and Imperialism: 1896-1899. “The construction of the Canadian Pacific Railway was especially justified as a British military route to the East.”

A number of Canadian military institutions were established in large part to expand the British Empire’s military capacity. Opened in Kingston, Ontario, in 1876, the Royal Military College (RMC) was largely designed to train soldiers to fight on behalf of British colonialism. Usually trained at the RMC, Canadians helped conquer Kenya, Nigeria and Ghana. Four hundred Canadians traveled halfway across the world to beat back anti-colonial resistance in the Sudan in 1885 while a decade and a half later thousands more fought to advance British imperial interests in the southern part of the continent.

While Freeland wasn’t clear about whether she was referring to British or U.S. influence over Canada, the second part of the “colony to nation to colony” parable is also misleading. Has Canada been colonized by Washington in a similar way to Haiti? Among innumerable examples of its domination, on December 17, 1914, U.S. Marines marched to the country’s treasury and took the nation’s entire gold reserve — valued at U.S. $12 million — and between 1915 and 1934 Washington formally occupied Haiti (they retained control of the country’s finances until 1947.)

Facilitated by racial, linguistic and cultural affinity, Canada has long had privileged access to the U.S. business and political elite. Longtime speaker of the House of Representatives and Democratic Party nominee for President in 1912, Champ Clark, highlighted Canada’s prized place within U.S. ruling circles. “They are people of our blood,” Champ expounded. “They speak our language. Their institutions are much like ours. They are trained in the difficult art of self-government.”

During the 1898-1902 occupation of Cuba the Royal Bank was the preferred banker of U.S. officials. (National U.S. banks were forbidden from establishing foreign branches until 1914.) Canadian capitalists worked with their U.S. counterparts in Central America as well. In the early 1900s, Canadian Pacific Railway President Sir William Van Horne helped the Boston-based United Fruit Company, infamous for its later role in overthrowing elected Guatemalan president Jacobo Arbenz, build the railway required to export bananas from the country. In the political realm there were also extensive ties. For instance, Canada’s longest serving Prime Minister, Mackenzie King, worked for the Rockefeller family while the mother of long-time U.S. Secretary of State Dean Acheson was from a wealthy Canadian family.

Today, the ties are closer than ever. In a post U.S. election exposé titled “A look inside Palm Beach, where wealthy Canadians are one degree of separation from Donald Trump,” The Globe and Mail detailed a slew of prominent Canadians (Brian Mulroney, Charles Bronfman, George Cohon, Gerry Schwartz and Heather Reisman, Paul Desmarais’s family, etc.) with winter homes near the U.S. president’s exclusive property. A number of these individuals, the Globe reported, could get “Trump’s ear” if he turned on Canada.

While there is a power imbalance between the two countries and differing interests at times, the Canadian elite sees the world and profits from it in a similar way to their U.S. counterparts.

Rather than looking at Canadian foreign policy through the lens of a “colony,” a more apt framework to understand this country’s place in the world is the Canadian elite has had a privileged position with the two great powers of the past two centuries. Or, Canada progressed from an appendage of the Imperial Centre to appendage of the Imperial Centre.

The term “settler state” is a better description than “colony” of what Canada was and is. It acknowledges the primary colonizer (us) and does not obscure the power relations in the imperial order — our ruling elite is closely tied into the world ruling elite.

Canada’s opposition to Venezuela’s elected government reflects this status.

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Canadian imperialism not amusing to its victims, Ms. Freeland

It may walk and quack like a regime-change-promoting duck, but Ottawa’s unilateral sanctions and support for Venezuela’s opposition is actually just a cuddly Canadian beaver, says Chrystia Freeland.

Canada has never been an imperialist power. It’s even almost funny to say that phrase: we’ve been the colony,” said the journalist-turned-politician after a Toronto meeting of foreign ministers opposed to the Venezuelan government.

The above declaration was part of the Canadian foreign minister’s response to a question about Chavismo’s continued popularity, which was prefaced by a mention of protesters denouncing Ottawa’s interference in Venezuela’s internal affairs. Freeland added that “one of the strengths Canada brings to its international affairs” is that it doesn’t engage in “regime change.”

Notwithstanding her government’s violation of the UN and Organization of American States charters’ in Venezuela, Freeland’s claim that Ottawa doesn’t engage in “regime change” is laughable. Is she unaware that a Canadian General commanded the NATO force, which included Canadian fighter jets, naval vessels and special forces, that killed Muammar Gaddafi in Libya six years ago?

Sticking to contexts more directly applicable to the situation in Venezuela, Ottawa has repeatedly endorsed US-backed military coups against progressive elected leaders. Canada passively supported the ouster of Iranian Prime Minister Mohammad Mossadegh in 1953, Guatemalan President Jacobo Arbenz in 1954, Ugandan President Milton Obote (by Idi Amin) in 1971 and Chilean President Salvador Allende in 1973. In a more substantial contribution to undermining electoral democracy, Ottawa backed the Honduran military’s removal of elected president Manuel Zelaya. Before his 2009 ouster Canadian officials criticized Zelaya and afterwards condemned his attempts to return to the country. Failing to suspend its military training program, Canada was also the only major donor to Honduras — the largest recipient of Canadian assistance in Central America — that failed to sever any aid to the military government. Six months after the coup Ottawa endorsed an electoral farce and immediately recognized the new right-wing government.

In the 1960s, Ottawa played a more substantial role in the ouster of pan-Africanist independence leaders Kwame Nkrumah and Patrice Lumumba. In 1966 Ghana’s Canadian-trained army overthrew Nkrumah. In an internal memo to External Affairs just after Nkrumah was ousted, Canadian high commissioner in Accra, C.E. McGaughey wrote “a wonderful thing has happened for the West in Ghana and Canada has played a worthy part.” Soon after the coup, Ottawa informed the military junta that Canada intended to carry on normal relations and Canada sent $1.82 million ($15 million today) worth of flour to Ghana.

Ottawa had a strong hand in Patrice Lumumba’s demise. Canadian signals officers oversaw intelligence positions in the UN mission supposed to protect the territorial integrity of the newly independent Congo, but which Washington used to undermine the progressive independence leader. Canadian Colonel Jean Berthiaume assisted Lumumba’s political enemies by helping recapture him. The UN chief of staff, who was kept in place by Ottawa despite being labelled an “imperialist tool” by Lumumba’s advisers, tracked the deposed prime minister and informed army head Joseph Mobutu of Lumumba’s whereabouts. Soon after Lumumba was killed and Canadian officials celebrated the demise of an individual Prime Minister John Diefenbaker privately called a “major threat to Western interests”.

It’s in the Western Hemisphere’s poorest nation where Canada was most aggressive in opposing a progressive government. On January 31 and February 1, 2003, Jean Chrétien’s Liberal government organized an international gathering to discuss overthrowing Haiti’s elected government. No Haitian officials were invited to the “Ottawa Initiative on Haiti” where high-level US, Canadian and French officials decided that president Jean-Bertrand Aristide “must go,” the dreaded army should be recreated and that the country would be put under a Kosovo-like UN trusteeship.

Thirteen months after the “Ottawa Initiative on Haiti” meeting Aristide and most other elected officials were pushed out and a quasi UN trusteeship had begun. The Haitian National Police was also heavily militarized.

Canadian special forces “secured” the airport from which Aristide was bundled (“kidnapped” in his words) onto a plane by US Marines and deposited in the Central African Republic. 500 Canadian troops occupied Haiti for the next six months.

After cutting off aid to Haiti’s elected government, Ottawa provided tens of millions of dollars in foreign aid to the installed government, publicly supported coup officials and employed numerous officials within coup government ministries. Haiti’s deputy justice minister for the first 15 months of the foreign-installed government, Philippe Vixamar, was on the Canadian International Development Agency’s payroll and was later replaced by another CIDA employee (the minister was a USAID employee). Paul Martin made the first ever trip by a Canadian prime minister to Haiti to support the violent post-coup dictatorship.

Dismissing criticism of Ottawa’s regime change efforts in Venezuela by claiming Canada has been a benevolent international actor is wholly unconvincing. In fact, a serious look at this country’s foreign policy past gives every reason to believe that Ottawa is seeking to unseat an elected government that has angered many among the corporate set.

Anyone with their eyes open can tell the difference between a beaver and a duck.

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Statistics, damn lies and the truth about Rwanda genocide

The real Rwanda genocide story has no Canadian heroes.

Canadian commentators often claim more Tutsi were killed in the genocide than lived in Rwanda. Since it aligns with Washington, London and Kigali’s interests, as well as liberal nationalist Canadian ideology, the statistical inflation passes with little comment.

A Tyee story last month described the “slaughter of over 800,000 Tutsis in Rwanda” between April and July 1994. An earlier Globe and Mail profile of Roméo Dallaire cited a higher number. It noted, “over the next few months, Hutu activists and militias, supplemented by police officers and military commanders, killed an estimated 800,000 to 1 million Tutsis.”

Even self-declared experts on the subject cite these outlandish statistics. In the Globe and Mail and rabble last year Gerald Caplan wrote that, “despite his [Dallaire] best efforts, perhaps a million people of the Tutsi minority were slaughtered in 100 days.” With ties to the regime in Kigali, Caplan pulled this number out of thin air. It’s improbable there were a million Tutsi in Rwanda in 1994 and no one believes every single Tutsi was killed.

While the exact figure is unknown and somewhat contested, Rwanda’s 1991 Census calculated 596,387 Tutsi. Initially sponsored by the International Criminal Tribunal for Rwanda, the GenoDynamics project by the Dean of the Frank Batten School of Leadership and Public Policy at the University of Virginia Allan Stam and University of Michigan political science professor Christian Davenport put the number slightly lower at 500,000. Others claim the Hutu-government of the time sought to suppress Tutsi population statistics and estimate a few hundred thousand more Rwandan Tutsi.

But, a significant number of Tutsi survived the hundred days of killing. Tutsi survivors’ umbrella group IBUKA (“Remember”) initially concluded that 300,000 survived the genocidal killings, which they later increased to “nearer to 400,000.”

For 800,000 to 1 million Tutsi to have perished there would have had to been at least 1.1 million and probably closer to 1.4 million Tutsi. That’s twice the official calculation.

Notwithstanding the three examples mentioned at the top, the most commonly cited formulation of the number of deaths in 1994 is the more vague “800,000 Tutsi and moderate Hutu.” A 1999 UN report concluded, “approximately 800,000persons were killed during the 1994 genocide in Rwanda.” As time passes, however, the regime in Kigali increases the death toll. In 2004 the Rwandan Ministry of Local Government, Community Development and Social Affairs claimed 1,074,017 died and in 2008 the government-backed Genocide Survivors Students Association of Rwanda put the number at 1,952,087.

But, the higher the death toll one cites for the genocidal violence the greater the number and percentage of Hutu victims. In the 2014 BBC documentary Rwanda’s Untold Story Stam explains, “if a million people died in Rwanda in 1994 — and that’s certainly possible — there is no way that the majority of them could be Tutsi…Because there weren’t enough Tutsi in the country.”

The idea there was as many, or even more, Hutu killed complicates the “long planned genocide” narrative pushed by the regime in Kigali and its Anglo-Saxon backers. So does the fact that overwhelming evidence and logic points to the Rwandan Patriotic Front (RPF) as culprits for blowing up the plane of the Hutu presidents of Rwanda and Burundi, as well as much of the Hutu-led Rwandan military command, which sparked the mass killings.

Washington and London’s support for the RPF, as well as Paul Kagame’s more than two-decade long control of Kigali, explains the dominance of a highly simplistic account of Rwanda’s genocide. But, a tertiary reason for the strength of the fairy tale is it aligns with the nationalist mythology of another G7 state. A wealthy, educated, population speaking the world’s two main colonial languages, Canadians have pumped out innumerable articles, books, songs, plays, poems, movies, etc. about our noble General’s effort to save Rwandans. Yet the Romeo Dallaire saviour story largely promoted by Left/liberals is based on a one-sided account of Rwanda’s tragedy.

Two of the articles mentioned at the top celebrate Dallaire. One of the stories that inflates the Tutsi death toll was a Globe and Mail profile upon the former general’s retirement from the Senate and in the other Caplan writes, “the personalrelationship so many Canadians feel with Rwanda can be explained in two words: Roméo Dallaire…[who] did all in his limited power to stop the killings.”

A Monthly Review article I discovered recently provides a stark example of how Left Canadian nationalists have warped understanding of Rwanda’s tragedy to fit their ideology. The third paragraph of the venerable New York-based Marxist journal’s 2003 review of When Victims Become Killers: Colonialism, Nativism, and the Genocide in Rwanda and A People Betrayed: The Role of the West in Rwanda’s Genocide begins: “A Canadian, General Roméo Dallaire, is the hero of the Rwandan tragedy.”

Canadian reviewer Hugh Lukin Robinson’s main criticism of Ugandan scholar Mahmood Mamdani’s When Victims Become Killers is that he downplays the importance of the Canadian commander of the UN military force. Robinson writes, “[Mamdani’s] disinterest in the international betrayal of Rwanda is illustrated by his single reference to General Dallaire, whose name he misspells and whom he refers to as ‘the Belgian commander in charge of UN forces in Rwanda.’ In contrast, Linda Melvern marshals the evidence which amply justifies the title of her book.”

But, Melvern is a leading advocate of the Kigali sponsored fairy tale about the genocide. Drawing on Dallaire’s purported “genocide fax,” she promotes the “long planned genocide” narrative. Simultaneously, Melvern ignores (or downplays) the role Uganda’s 1990 invasion, structural adjustment policies and the October 1993 assassination of the first ever Hutu president in Burundi played in the mass killing of Spring 1994. Melvern also diminishes RPF killings and their responsibility for shooting down the plane carrying Hutu President Juvénal Habyarimana and the Rwandan military high command.

Robinson was impressed with Melvern’s praise for Canada’s military man. “Dallaire had trained and risen through the ranks of an army proud of its tradition of peacekeeping,” Robinson quotes from Melvern’s writing. “He was a committed internationalist and had first hand experience of UN missions. He was a hard worker. And he was obstinate.” But, the “committed internationalist” admits he didn’t know where Rwanda was before his appointment to that country. Nor did Dallaire have much experience with the UN. “Dallaire was what military people call a NATO man,” explained CBC journalist Carole Off in a biography of the General. “His defence knowledge was predicated almost exclusively on the needs of the NATO alliance.”

More significantly, a number of the UN officials involved in Rwanda — head of UNAMIR troops in Kigali Luc Marchal, intelligence officer Amadou Deme, UN Secretary General Boutros Boutros-Ghali, etc. — have challenged Dallaire’s interpretation of events, contradicted his claims or criticized his actions. Dallaire’s civilian commander on UNAMIR published a book accusing the Canadian General of bias towards the Uganda/US/Britain backed RPF. In his 2005 book Le Patron de Dallaire Parle (The Boss of Dallaire Speaks), Jacques-Roger Booh Booh, a former Cameroon foreign minister and overall head of UNAMIR, criticizes Dallaire’s actions in Rwanda and challenges his interpretation of events.

In one of two footnotes Robinson ended his Monthly Review article on a Canadian nationalist note. The former labour researcher writes: “There is another account of the Rwanda tragedy for which two Canadians can take a great deal of credit. In 1997, the Organization for African Unity (OAU) appointed an International Panel of Eminent Persons to report on what had happened. Stephen Lewis was a member of the Panel and Gerald Caplan was its principal writer and author of the report, Rwanda –The Preventable Genocide. It confirms all the main facts and conclusions of Linda Melvern’s book.”

While paying lip service to the complex interplay of ethnic, class and regional politics, as well as international pressures, that spurred the “Rwandan Genocide,” the 300-page report is premised on the unsubstantiated claim their was a high level plan by the Hutu government to kill all Tutsi. It ignores the overwhelming evidence (and logic) pointing to Paul Kagame’s RPF as the culprit in shooting down the presidential plane, which sparked the genocidal killings. It also emphasizes Dallaire’s perspective. A word search of the report finds 100 mentions of “Dallaire,” five times more than “Booh-Booh,” the overall commander of the UN mission.

Rather than a compelling overview of the Rwandan tragedy, the OAU report highlights Canada’s power within international bodies. In a Walrus story Caplan described, “waiting for the flight back to Toronto, where I would do all my reading and writing” on a report “I called…’The Preventable Genocide.'” Partly funded by Canada, the entire initiative was instigated by US Secretary of State Madeleine Albright.

Caplan is a staunch advocate of the noble Canadian general story. In 2017 Caplan, who started an organization with Kagame’s long-standing foreign minister, Louise Mushikiwabo, called Dallaire “surely among Canada’s most admired citizens, if not the most admired.”

Praise for Dallaire’s role in Rwanda is based on a highly simplistic account of what transpired in 1994. In their haste to promote a Canadian saviour in Africa, left/liberals have confused international understanding of the Rwandan tragedy, which has propped up Kagame’s dictatorship and enabled his violence in the Congo.

When commentators are claiming more Tutsi were killed than lived in the country it’s time to revaluate popular discussion of Rwanda’s tragedy.

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Remembering the truth about Lester Pearson

Many monuments, memorials and names of institutions across Canada celebrate our colonial and racist past. Calls for renaming buildings or pulling down statues are symbolic ways of reinterpreting that history, acknowledging mistakes and small steps towards reconciling with the victims of this country’s policies.

At its heart this process is about searching for the truth, a guiding principle that should be shared by both journalists and historians.

In an article headlined “Everything is offensive: Here are Canada’s other politically incorrect place names,” Tristin Hopper concludes that “Lester Pearson’s record still holds up pretty well” unlike a dozen other historical figures he cites who have streets, institutions and statues named in their honour.

Notwithstanding the National Post reporter’s portrayal, there are compelling historical arguments for renaming the airport, school board, road, college, peace park, civic centre, housing project, schools and foreign affairs headquarters celebrating the long-time diplomat.

As I outline in Lester Pearson’s Peacekeeping: The Truth May Hurt, the former Nobel Peace Prize winner was an aggressive militarist and imperialist. There is even a case to be made that the former external minister and prime minister could be posthumously tried for war crimes.

In the foreword to my book, Noam Chomsky argues that Pearson abetted war crimes by having Canadian International Control Commission (ICC) officials deliver U.S. bombing threats to the North Vietnamese leadership in 1964. As prime minister, Pearson also had ICC officials spy on North Vietnam for Washington, approved chemical weapon (Agent Orange, Purple and Blue) testing in Canada, ramped up weapons sales to the U.S. and provided various other forms of support to Washington’s violence in Indochina.

A decade and a half earlier, Pearson aggressively promoted Canadian participation in another conflict that left millions dead. He threatened to quit as external minister if Canada failed to deploy ground troops to Korea. Ultimately, 27,000 Canadian troopsfought in the 1950–53 UN “police action” that left up to four million dead. At one point the U.S.-led forces only stopped bombing the north of the country when they determined no building over one story was still standing.

Pearson had a hand in or supported many other unjust policies. During the 1947 UN negotiations over the British Mandate of Palestine, Pearson disregarded the interests of the indigenous Palestinian population. He also played an important role in the creation of NATO, describing its 1949 formation as the “most important thing I participated in.” In the 1950s he backed CIA coups in Iran and Guatemala as well as the violent suppression of independence struggles in Algeria, Kenya and elsewhere. As prime minister in the mid-1960s, Pearson brought nuclear-tipped Bomarc missiles to Canada, supported the U.S. invasion of the Dominican Republic and military coup against Ghana’s president Kwame Nkrumah.

Expect liberals (of both the big and small l variety) to react emotionally to any effort to remove Pearson’s name from public entities. As part of the promotion for my Black Book of Canadian Foreign Policy, I put together a press release titled The Top 10 Things You Don’t Know About Canadian Foreign Policy. Number 1 was “Many commentators, including the world’s leading intellectual, Noam Chomsky, consider Lester Pearson a war criminal.”

I sent the list and offered a review copy to a reporter at Embassy, Canada’s leading foreign policy newsletter at the time. He responded with outrage: “Frankly, I’m not that interested in Chomsky’s opinions, especially when they smear great Canadians like Mike Pearson. I know you’re a radical, but have some pride in Canada!”

Chomsky describes a similar experience with former CBC radio host Peter Gzowski. Happy to have him criticize U.S. foreign policy, the long-time Morningside host became furious when Chomsky said, “I landed at war criminal airport.” Gzowski questioned: “What do you mean?” to which Chomsky responded, “the Lester B. Pearson Airport,” detailing Pearson’s contribution to the U.S. war in Vietnam. In response, writes Chomsky, Gzowski “went into a tantrum, haranguing me for a number of minutes,” which prompted an outpouring of listener complaints.

The reality is many people are emotionally tied to the self-serving myths created to justify the actions of important historical figures. But the job of historians and journalists is to seek the truth, not to simply repeat propaganda.

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Canada’s neoliberal policies enable exploitation in Zambia

While few Canadians could find Zambia on a map, the Great White North has significant influence over the southern African nation.

A big beneficiary of internationally sponsored neoliberal reforms, a Vancouver firm is the largest foreign investor in the landlocked country of 16 million.

First Quantum Minerals (FQM) has been embroiled in various ecological, labour and tax controversies in the copper rich nation over the past decade. At the end of last year First Quantum was sued for US$1.4 billion by Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH), a state entity with minority stakes in most of the country’s mining firms. The statement of claim against First Quantum listed improper borrowing and a massive tax liability.

In a politically charged move, President Edgar Lungu recently ordered ZCCM-IH to drop the case and seek an “amicable” out of court settlement with FQM. Social movements criticized the government for (again) caving to powerful mining interests exploiting the country’s natural resources. According to War on Want, Zambia is losing $3 billion a year to tax dodges by multinationals, mainly in the lucrative mining sector. A recent Africa Confidential report on the row between First Quantum and ZCCM-IH highlighted the Vancouver firm’s political influence, pointing out that “top government officials are frequently feted and hosted by FQM.”

First Quantum’s presence in Zambia dates to the late 1990s privatization of the Zambian Consolidated Copper Mines (ZCCM), which once produced 700,000 tonnes of copper per year. In a report on the sale, John Lungu and Alastair Fraser explain that “the division of ZCCM into several smaller companies and their sale to private investors between 1997 and 2000 marked the completion of one of the most comprehensive and rapid privatisation processes seen anywhere in the world.”

The highly indebted country was under immense pressure to sell its copper and public mining company. Zambia’s former Finance Minister Edith Nawakwi said, “we were told by advisers, who included the International Monetary Fund and the World Bank that…for the next 20 years, Zambian copper would not make a profit. [But, if we privatised] we would be able to access debt relief, and this was a huge carrot in front of us — like waving medicine in front of a dying woman. We had no option” but to privatize.

Ottawa played a part in the privatization push. Canada was part of the World-Bank-led Consultative Group of donors that promoted the copper selloff. With the sale moving too slowly for the donors, a May 1998 Consultative Group meeting in Paris made $530 US million in balance of payments support dependent on privatizing the rest of ZCCM.

(Canada had been a proponent of neoliberal reform in Zambia since the late 1980s. At the time Ottawa slowed aid to the country in a successful bid to change the government’s attitude to neoliberal reforms, explains Carolyn Bassett in The Use of Canadian Aid to Support Structural Adjustment in Africa. After Zambia fell into line with the International Monetary Fund, CIDA recharged its aid program. As part of a push for economic reform Ottawa secured an agreement that gave a former vice president of the Bank of Canada the role of governor of the Bank of Zambia, where he oversaw the country’s monetary policies and “responses to the IMF”. In her 1991 Ph.D thesis Bassett notes, “instrumental in developing Zambia’s new ‘domestically designed’ [economic] program was the new head of the Bank of Zambia, Canadian Jacques Boussières.” Paid by Ottawa, Boussières was the first foreign governor of the Bank of Zambia since independence. This was not well received by some. Africa Events described Boussières as “a White Canadian who came to de- Zambianise the bank post under controversial circumstances.”)

The hasty sale of the public mining behemoth was highly unfavourable to Zambians. The price of copper was at a historic low and the individual leading the negotiations, Francis Kaunda, was later jailed for defrauding the public company. “ZCCM’s privatization was carried out with a complete lack of transparency, no debate in parliament, and with one-sided contracts which few of us have ever seen,” said James Lungu, a professor at Zambia’s Copperbelt University.

Taking advantage of the government’s weak bargaining position, First Quantum and other foreign companies picked up the valuable assets for rock bottom prices and left the government with ZCCM’s liabilities, including pensions. The foreign mining companies also negotiated ultra low royalty rates and the right to take the government to international arbitration if tax exemptions were withdrawn for 15 years or more. Many of the multinationals made their money back in a year or two and when the price of copper rose five fold in the mid-2000s they made bundles.

Having conceded tax exemptions and ultra low royalty rates, the government captured little from the surge in global copper prices. In 2006 Zambian royalties from copper represented about $24 million on $4 billion worth of copper extracted. The .6% royalty rate was thought to be the lowest in the world. The government take from taxing the mining companies wasn’t a whole lot better. Between 2000 and 2007 Zambia exported $12.24 billion US in copper but the government only collected $246 million in tax.

Since 2008 Zambia has wrestled more from the companies, but they’ve had to overcome stiff corporate resistance. When the government suggested an increased royalty in 2005 First Quantum’s commercial manager Andrew Hickman complained that it “would probably make any new mining ventures in Zambia uneconomical” while three years later First Quantum said it would have “no choice” but to take legal action if a new tax regime breached the agreement it signed during the privatization process.

With billions of dollars tied up in the country, First Quantum had good reason to campaign aggressively to maintain the country’s generous mining policy.

First Quantum stands accused of cheating Zambia out of tens of millions of dollars in taxes. An audit found that between 2006 and 2008 Mopani Copper Mines under-reported cobalt extracts and manipulated internal prices to shift profits to First Quantum and Glencore subsidiaries in the British Virgin Islands and Bermuda, allowing it to evade millions of dollars of tax in Zambia.

In Offshore Finance and Global Governance: Disciplining the Tax Nomad William Vlcek explains:

As a corporate entity, First Quantum does not directly manage the mining operations in Zambia, rather it owns a subsidiary in Ireland which in turn owns subsidiary corporations registered in The British Virgin Islands and Zambia. … The overall corporate organization involves similar subordinate corporate structures with subsidiaries registered in Barbados, British Virgin Islands, Ireland, Luxembourg, and Netherlands, none of which jurisdictions include a mine or smelter operated by First Quantum. … Jurisdictions such as the British Virgin Islands … do not impose a corporate income tax on foreign-sourced income. Thus, First Quantum’s subsidiaries will pay corporate income tax on their operations in Zambia to the Zambian government, but any income that flows through to the BVI-registered subsidiary will not be taxed before flowing onward.

In a bid to cut down on corporate ‘transfer pricing’ and tax evasion, the Zambian government sought to simplify the mining fee structure. In 2013 Lusaka proposed eliminating income tax on mining companies and substantially increasing royalty rates (up to 20% for open-pit mines and 8% on underground operations). In 2015 Minister of Finance Alexander B. Chikwanda told Parliament:

The tax system was vulnerable to all forms of tax planning schemes such as transfer pricing, hedging and trading through ‘shell’ companies which are not directly linked to the core business. Sir, it has been a challenge for the revenue administration to detect and abate such practices. Further, provisions on capital allowances and carry forward of losses eliminated potential taxable profits. Mr Speaker, the tax structure was simply illusory as only two mining companies were paying Company Income Tax under the previous tax regime as most of them claimed that they were not in tax-paying positions.

First Quantum, Toronto’s Barrick Gold and a number of other foreign mining companies screamed murder and worked to derail the Zambian government. First Quantum government affairs manager John Gladston said “the new system doesn’t incentivise investment in new capital projects which in turn, will inevitably be translated into fewer new jobs and less opportunities for wealth creation for Zambians.” To spur a backlash in the job-hungry country, First Quantum laid off 350 workers at its Kansanshi mine. The government responded by saying First Quantum wasn’t adhering to the country’s labour law. Government spokesperson Chishimba Kambwili told Xinhua that “all mining companies are aware of the standing order, which obliges them to consult the government through the Ministry of Labour before any decision to sack any worker becomes effective.”

Barrick Gold also threatened to lay off workers if the government increased royalty rates. The Toronto company said it would shutter its Lumwana Mine, which prompted 2,000 workers, fearing for their jobs, to hold a one-day strike. The foreign-run Chamber of Mines of Zambia claimed 12,000 jobs would be lost if the royalty changes went through and the IMF added its voice to those opposing the royalty hike.

The mining corporations’ strong-armed tactics succeeded. After a six-month standoff, the government backed off.

First Quantum, Barrick and the other foreign mining companies exploited the immense power ZCCM’s privatization gave them over Zambian economic life. By shuttering their mines they could produce economic hardship for thousands of people. (With an 80% unemployment rate and most Zambians living on less than a dollar a day, each formally employed individual provides for many others.) Some suggested the foreign mining companies were even “powerful enough to manipulate the exchange rate” of the country.

Canadian officials actively backed FQM and other mining companies in Zambia. At the 2013 Prospectors and Developers Association of Canada Convention Ottawa announced the start of negotiations on a Foreign Investment Promotion and Protection Agreement with Zambia, which would allow Canadian companies to pursue Zambia in international tribunal for lost profits. The next year the Head of Office at the Canadian High Commission, Sharad Kumar Gupta, “said the Canadian government is trying to encourage the private sector to explore… opportunities in Zambia’s mining sector,” reported Lusaka’s news.hot877.com.

After the leftist Patriotic Front opposition party accused First Quantum of blocking workers from voting in a 2005 parliamentary by-election, the Canadian High Commissioner defended the Vancouver company. John Deyell, who previously worked at mining giants Inco and Falconbridge in Sudbury, claimed First Quantum wasn’t responsible for day-to-day operations despite owning a sixth of MCM stock and controlling two seats on MCM’s executive board. In response the Patriotic Front sought to take their protest against MCM’s violation of workers’ rights to the Canadian High Commission, but the police denied them a permit.

In Zambia, as with elsewhere in Africa, Canada’s mining industry, foreign policy and neoliberalism overlap tightly. It’s a subject Canadians ought to pay attention to if we want our country to be a force for good in the world.

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Aid and exploitation: Canada in Congo

Imagine if the media only reported the good news that governments and corporations wanted you to see, hear and read about. Unfortunately, that is not far from the reality of reporting about Canada’s role internationally.

The dominant media almost exclusively covers stories that portray this country positively while ignoring or downplaying information that contradicts this narrative. The result? Canadians are ignorant and confused about their country’s role in the world.

In a recent example of benevolent Canada bias, The Globe and Mail reported uncritically about a trip international development minister Marie-Claude Bibeau made to the Congo. In a story last week headlined “Canada commits $97-million to Congo under feminist foreign-aid policy,” The Globe reported that “Canada has committed nearly $100-million to the Democratic Republic of the Congo to support women’s economic empowerment, protect street children and provide humanitarian assistance.”

A week earlier Canada’s paper of record decided a relatively insignificant Canadian project to help miners in eastern Congo was front-page news. “New gold standard emerges for Congo’s miners, Canada’s jewellery buyers,” detailed an Ottawa-funded initiative to promote legal exports and to standardize the price paid to scale miners.

While Partnership Africa Canada’s “fair trade” gold initiative is an interesting project and the international development minister’s announcement was newsworthy, the narrowness of the two articles gives readers the impression Canada helps improve the lives of people who live in a country where 87 per cent live on less than $1.25 a day. But, an abundance of evidence suggests Canada has actually impoverished the central African nation.

What follows is a brief outline of the context within which the good news about Canada’s role in the Congo should be seen:

Over a century ago Royal-Military-College-of-Canada-trained officer William Grant Stairs participated in two controversial expeditions to expand European influence over the Congo. In 1887, Stairs was one of ten white officers in the first-ever European expedition to cross the interior of the continent, which left a trail of death, disease and destruction. A few years later the Halifax native led a 1,950-person mission to conquer the resource-rich Katanga region of the Congo on behalf of Belgium’s King Leopold II. Today Stairs is honoured with a street, island and multiple plaques, even though he was openly racist and barbarous and added 150,000 square kilometres to the Belgium’s King’s monstrous colony.

During this period Hamilton, Ontario’s William Henry Faulknor was one of the first white missionaries to establish a mission station in eastern Congo. Between 1887 and 1891 Faulknor worked under the ruler of the Yeke kingdom, Mwenda Msiri, who would later meet his death at the hand of Stairs. Faulknor’s Plymouth Brethren explicitly called for European rule (either Belgian or British) over Katanga and like almost all missionaries sought to undermine local ways.

Following Faulknor, Toronto-born Henry Grattan Guinness II established the Congo Balolo Mission in 1889. Congo Balolo Mission missions were located in remote areas of the colony, where King Leopold’s Anglo-Belgian Rubber Company obligated individuals and communities to gather rubber latex and chopped off the hands of thousands of individuals who failed to fulfill their quotas.

Faced with the violent disruption of their lives, the Lulonga, Lopori, Maringa, Juapa and Burisa were increasingly receptive to the Christian activists who became “the interpreter of the new way of life,” writes Ruth Slade in English-Speaking Missions in the Congo Independent State. Not wanting to jeopardize their standing with Leopold’s representatives, the Congo Balolo Mission repeatedly refused British-based solidarity campaigners’ appeals to publicly expose the abuses they witnessed.

In the 1920s the Canadian trade commissioner in South Africa, G.R. Stevens, traveled to the Congo and reported on the Katanga region’s immense resources. In de-facto support of Belgian rule, a Canadian trade commission was opened in the colony in 1946. In response to a series of anti-colonial demonstrations in 1959, Canadian Trade Commissioner K. Nyenhuis reported to External Affairs that “savagery is still very near the surface in most of the natives.”

Ottawa backed Brussels militarily as it sought to maintain control of its massive colony. Hundreds of Belgian pilots were trained in Canada during and after World War II and through the 1950s Belgium received tens of millions of dollars in Canadian NATO Mutual Aid. Canadian Mutual Aid weaponry was likely employed by Belgian troops in suppressing the anti-colonial struggle in the Congo.

Immediately after independence Canada played an important role in the UN mission that facilitated the murder of anticolonial Prime Minister Patrice Lumumba in 1961. Canadian Colonel Jean Berthiaume assisted Lumumba’s political enemies by helping recapture the popular independence leader. Lumumba was handed over to soldiers under military commander Joseph Mobutu.

Canada had a hand in Mobutu’s rise and Ottawa mostly supported his brutal three-decade rule. Then, Canada also helped get rid of Mobutu.

Ottawa supported Rwanda and Uganda’s invasion, which ultimately drove Mobutu from power. In 1996, Canada led a short-lived UN force into eastern Zaire (Congo) designed to dissipate French pressure and ensure pro-Mobutu Paris didn’t take command of a force that could impede the Rwandan-led invasion. As Rwanda has unleashed mayhem in the Congo over the past two decades, Ottawa has backed Kigali.

In 2002 a series of Canadian companies were implicated in a UN report titled “Report on the Illegal Exploitation of Natural Resources and other Forms of Wealth in the Congo.” Ottawa responded to the report by defending the Canadian companies cited for complicity in Congolese human rights violations.

At the G8 in 2010, the Canadian government pushed for an entire declaration to the final communiqué criticizing the Congo for attempting to gain a greater share of its vast mineral wealth. Earlier that year Ottawa obstructed international efforts to reschedule the country’s foreign debt, which was mostly accrued during Mobutu’s dictatorship and the subsequent wars. Canadian officials “have a problem with what’s happened with a Canadian company,” Congolese Information Minister Lambert Mende said, referring to the government’s move to revoke a mining concession that First Quantum acquired under dubious circumstances during the 1998-2003 war.

With about $4.5 billion invested in the Congo, Canadian mining companies have been responsible for numerous abuses. After a half-dozen members of the little-known Mouvement revolutionnaire pour la liberation du Katanga occupied Anvil Mining’s Kilwa concession in October 2004 the Canada-Australian company transported government troops who killed 100 people. Most of the victims were unarmed civilians.

In recent months a number of individuals have been killed at Banro’s mines in eastern Congo. Over the past two decades the secretive Toronto-based company has been accused of fuelling conflict in a region that’s seen incredible violence.

Of course one cannot expect a detailed history of Canada’s role in impoverishing Congo in a story about a government aid announcement or a 1,300-word article about an initiative to standardize pay for some of the world’s most vulnerable miners. But, The Globe‘s failure to even mention the broader story reflects its bias and helps to explain why Canadians are so confused about their country’s role in the world.

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