Kenya’s Youth Are Rising Up Against U.S.-IMF Control and Aren’t Backing Down

Summary

In this discussion, Dr. Grieve Shela addresses the IMF's role in Kenya's recent finance bill protests, highlighting the agency's history of imposing austerity measures that disproportionately affect the poor. He also discusses the broader impact of IMF policies on African economies and the need for debt cancellation, rather than relief, to break free from the cycle of debt and control.

Takeaways

• 🌐 The International Monetary Fund (IMF) is often involved in African economies, but its role in Kenya's recent finance bill has sparked an uprising among the youth.
• 🤔 The IMF is supposed to aid countries in financial distress and help them achieve economic sovereignty, but its actions in Kenya suggest otherwise.
• 🔄 Kenya has repeatedly turned to the IMF for assistance, averaging about every three years since joining in 1964, indicating a cycle of dependency.
• 💔 The IMF's policies often inflict economic pain on the most vulnerable populations, contradicting their stated goal of helping countries develop.
• 🚫 The recent protests in Kenya against the finance bill were a response to perceived austerity measures that favored the wealthy and multinational corporations over the poor.
• 🌟 The protests in Kenya were historic, organized by young people, and led by women in many cases, showing a strong pushback against IMF-influenced policies.
• 🏆 The Kenyan president's dismissal of his cabinet in response to the protests is a significant victory for the youth and progressive forces in the country.
• 🔄 The IMF's approach to African development contrasts sharply with the state-led development strategies seen in East Asia, South Asia, and historically in the West.
• 💼 Many African economists and policymakers have been trained by the IMF and World Bank, leading to a perpetuation of neoliberal ideologies that may not be in the best interest of their countries.
• 💬 There is a renewed interest among young Africans in alternative economic models and the writings of figures like Thomas Sankara, suggesting a potential shift in economic thinking.

Q & A

What is the primary reason for the recent uprising in Kenya?

The primary reason for the recent uprising in Kenya is the finance bill pushed forward by the IMF, which is seen as inflicting pain on the country's population, particularly the poor.

What is the role of the IMF in African economies?

The IMF is a global multilateral agency that is supposed to aid countries in financial problems. However, in practice, it often imposes austerity measures that negatively impact the poor and favor multinational corporations and the wealthy.

How often has Kenya sought assistance from the IMF since joining in 1964?

Kenya has sought assistance from the IMF 22 times since joining in 1964, which averages to about every three years.

What was the significance of the protests in Kenya against the finance bill?

The protests were historic, peaceful, and well-organized, led by young people and women in many cases. They successfully pressured the Kenyan president to dismiss his cabinet and withdraw the finance bill.

How does the IMF's approach to economic development in Africa differ from successful models in East Asia and other regions?

The IMF's approach in Africa often involves austerity measures and neoliberal policies that weaken state capacity and worker welfare, contrasting with the state-led development and investment in public services seen in successful East Asian models.

What was the immediate outcome of the protests in Kenya?

The immediate outcome was the dismissal of the Kenyan president's cabinet and the withdrawal of the finance bill, which was seen as a victory for the young people and progressive forces in Kenya.

Why does the IMF's approach to assisting countries often result in a cycle of debt and dependence?

The IMF's policies often involve conditions that weaken a country's economic sovereignty, making it more susceptible to external influence and repeated financial crises, thus perpetuating a cycle of debt and dependence.

What is the historical context of African countries' relationship with the IMF?

Many African countries initially pursued economic sovereignty and self-determination after gaining independence in the 1960s and 1970s. However, economic crises engineered by the West in the 1980s led to heavy indebtedness and increased susceptibility to IMF influence.

How has the IMF influenced the education and training of African economists?

The IMF and World Bank have set up training schools in Africa and the global South, indoctrinating economists with neoliberal ideology, which has led to the dominance of IMF-trained individuals in African finance ministries and treasuries.

What is the current debate around debt in African countries and the role of the IMF?

There is a growing call for debt cancellation rather than debt relief, as the burden of debt is seen as unjust and crippling to African economies. Critics argue that the IMF and World Bank are not truly global institutions but serve the interests of Western countries.

Outlines

00:00

😡 IMF's Role in Kenya's Finance Bill Uprising

The first paragraph discusses the recent uprising in Kenya, primarily led by the youth, against a finance bill influenced by the International Monetary Fund (IMF). Dr. Grieve Shela, a professor of political economy, highlights the paradox of the IMF's role in African economies, which is ostensibly to aid countries in financial distress but often results in policies that harm the most vulnerable populations. The conversation delves into Kenya's repeated reliance on the IMF since joining in 1964, averaging an appeal every three years, and the resulting manipulation by Western powers. The significance of the protests, which were peaceful and organized, is emphasized, particularly their impact on the Kenyan government's response, including the dismissal of the cabinet.

05:01

🌐 IMF Policies vs. Successful Development Models

In this paragraph, the discussion contrasts the IMF's recommendations for African countries like Kenya with the successful development strategies employed by countries in East Asia, Europe, and North America. The IMF's approach, characterized by austerity measures and the withdrawal of state support, is critiqued for being counterproductive to genuine economic development. The conversation touches on the historical context of African countries' efforts towards self-determination and economic sovereignty, which were undermined by the 1980s economic crisis and subsequent debt burdens. The role of debt as a tool of control by the IMF and Western powers is highlighted, with a call for a reevaluation of these policies and a move towards more equitable and sustainable development models.

10:02

📚 The Influence of IMF and World Bank on African Economies

The third paragraph delves into the historical and ongoing influence of the IMF and World Bank on African economies. It discusses how these institutions have trained and indoctrinated African economists with neoliberal ideologies, leading to policies that favor Western interests over the well-being of African citizens. The conversation highlights the shift in African economic leadership from the 1960s and 70s, when many leaders were trained in the Soviet Union with a focus on building strong economies, to the present day, where many are products of IMF and World Bank training. The paragraph also touches on the broader implications of this influence, including the deployment of Kenyan police in Haiti under Western directives.

15:02

💼 The Need for Debt Cancellation and Global Economic Restructuring

The final paragraph wraps up the discussion by emphasizing the need for debt cancellation rather than mere relief, as the debt burdens imposed on African countries are deemed unjust. The conversation calls for a global conversation about rewriting the rules of international finance, with a focus on creating truly global multilateral institutions that can support countries in times of need without imposing harmful conditions. The paragraph also critiques the IMF and World Bank as Western-dominated institutions that do not serve the interests of all member countries equally, suggesting that their leadership and policies are more reflective of the interests of Western powers than of global economic equity.

Keywords

💡IMF

The International Monetary Fund (IMF) is an international financial institution that aims to stabilize the global economy by providing financial assistance to countries facing economic difficulties. In the video, the IMF is criticized for its role in pushing austerity measures in Kenya through a finance bill, which led to protests. The IMF's policies are seen as detrimental to the economic sovereignty and self-determination of African countries.

💡Austerity Measures

Austerity measures refer to policies that aim to reduce government budget deficits through spending cuts and tax increases. In the context of the video, these measures are being imposed in Kenya through a finance bill supported by the IMF, which is seen as inflicting pain on the poor and benefiting the wealthy and multinational corporations.

💡Economic Sovereignty

Economic sovereignty is the ability of a country to control its economic policies and resources without external interference. The video discusses how the IMF's interventions in African countries, like Kenya, undermine their economic sovereignty by imposing policies that favor external interests over the well-being of the local population.

💡Protests

The video highlights the historic protests in Kenya against the finance bill and the IMF's influence. These protests, led by young people and often misrepresented in corporate media, demonstrate the public's resistance to policies that harm the poor and are seen as a form of economic oppression.

💡Debt

Debt is a financial obligation that one party owes to another. In the video, African countries are described as being trapped in a cycle of debt, which makes them susceptible to the influence of the IMF and Western powers. The debt crisis in these countries is seen as a tool used to enforce compliance with IMF policies.

💡Neoliberal Ideology

Neoliberal ideology is an economic and political philosophy that emphasizes free-market capitalism, deregulation, and reduction in government spending. The video criticizes the IMF for promoting neoliberal policies in Africa, which have led to economic disparities and social unrest.

💡Debt Relief

Debt relief refers to the process of reducing or eliminating the debt obligations of a country. The video suggests that debt relief is insufficient and calls for debt cancellation, arguing that the debts imposed on African countries are unjust and have been used to control their economic policies.

💡Global Multilateral Entities

Global multilateral entities are international organizations that involve multiple countries working together to address global issues. The video argues for the need to reform such entities like the IMF and World Bank, which are seen as dominated by Western interests and not truly serving the global community.

💡Economic Self-Determination

Economic self-determination is the ability of a country to decide its own economic policies and strategies without external control. The video emphasizes the importance of achieving economic self-determination for African countries, which has been hindered by the IMF's interventions.

💡Corporate Media

Corporate media refers to media outlets that are owned by large corporations and often reflect their interests. In the video, corporate media, particularly in the US, is criticized for misrepresenting the Kenyan protests as violent, which is contrary to the peaceful nature of the demonstrations against the finance bill.

💡Western Institutions

Western institutions in the video refer to organizations like the IMF and World Bank, which are seen as being controlled by Western countries, particularly the US and Europe. The video argues that these institutions do not act in the best interests of all member countries but rather serve the interests of the West.

Highlights

The IMF's role in Kenya's finance bill and its impact on the youth uprising.

Dr. Grieve Shela discusses the IMF's broader role in African economies.

Kenya's repeated reliance on the IMF since joining in 1964.

The IMF's paradoxical effect of inflicting pain on populations it aims to help.

The significance of the recent protests in Kenya and their violent suppression.

The Kenyan president's response to protests by dismissing his cabinet.

The demand to withdraw the finance bill due to its austerity measures.

The contrast between the IMF's policies and those that have led to development in East Asia and Europe.

The IMF's advice being contrary to the development strategies of successful countries.

Debt as a tool used by the IMF to control African countries.

The historical context of African economic policies and the influence of the IMF since the 1980s.

The role of Western-trained economists in implementing IMF policies in Africa.

The resurgence of pre-1980s economic thinking among young people in Kenya.

The call for debt cancellation rather than debt relief.

The argument that the IMF and World Bank are not truly global but serve Western interests.

The structural bias in the IMF's governance, with the US having significant influence.

The need for a global conversation about debt cancellation and the reform of international financial institutions.

Transcripts

we want to start off with some of the

reverberations of what has been taking

place in Kenya many people have seen of

course an uprising primarily of the

youth against a finance bill that was

pushed forward by the IMF and to get

into some of the context around both

this specific issue and I think the

broader role of the IMF in African

economies we are very very honored to be

joined here once ago once again by Dr

griev Shela who's a professor of

political economy at the Africa

Institute and also a senior fellow at

The tricontinental Institute for social

research grieve as always thanks so much

for being with

us uh hi Eugene and r a pleasure to be

back here well pleasure is all ours and

you know I think a lot of people sort of

had heard that the IMF was playing some

role in what took place in Kenya in the

finance bill and different pieces and I

was hoping you could sort of break down

for us you know you maybe the specific

role to the extent that's relevant but

also you know what it what why is it

that the IMF would be p ing a country

like Kenya to inflict pain on its own

population when of course the way they

put everything is that they're trying to

help countries

develop yeah uh that's a great place

that's a great question to ask Eugene uh

because ostensively the IMF is supposed

to be a global multilateral agency that

is supposed to come to the aid of

countries that get themselves into

financial problems and uh effectively

the IMF is supposed to help get these

countries on the road to economic

sovereignty economic

self-determination and to sort of like

fully flourish as as as countries uh but

that's been anything but what the IMF

has done ever since it was established

in 19 1945 in fact I just looked it up

now Kenya has gone to the IMF 22 times

since 1964 when it joined the IMF and

when you work it out it's it's like it

goes to the IMF on average every three

years all right so it's stuck in this

Perpetual cycle of always going to the

IMF of always being at the imf's bidding

you know which then exposes Kenya to

manipulation by the IMF by the west and

so on and so forth so you're you're

asking the right question I mean it it

it is it is a strange way to assist a

country by inflicting pain on the

country's people particularly the most

poor and you know I guess in Kenya there

was a very well organized effort against

this uh bill this attempt to Institute

all these austerity measures can you

talk a bit about the significance of

these protests that were violently

suppressed I mean hundreds were arrested

and of course the way the corporate

media and the US framed it was that

protesters were the ones being being

violent for unknown

reasons yeah I mean these are historic

protests uh Ria uh we haven't seen

protests like this in Kenya we haven't

seen protests like this in much of

Africa they're incredibly inspiring

incredibly inspirational to many people

across the continent if you go to

Whatsapp groups this evening in fact as

a matter of fact what happened earlier

today Ria is that the Kenyan president

dismissed his cabinet he fired his

cabinet secretaries precisely because

that's the demand that the young people

of Kenya have been asking for so that's

one of their demands the demand one was

withdraw the finance bill because it's

completely uh it's trying to lict pain

on the poor and is trying to uh

essentially let go of the multinationals

will have a free ride the very wealthy

in Kenya will have a free ride the C

Global capitalist will have a free ride

in Kenya and yet the poor have to pick

up the bill so essentially demand number

one withdraw the finance bill the

president aced today this afternoon the

president aced to demand number two

which is dismiss the cabinet which is

giv you this kind of advice that

inflicts pain on your own people so this

these protests Ria are incredibly

historic um you know exactly that

reverberated across the the continent

and you're right corporate media

especially in the US was completely

wrong to frame the protest as violent

the protests were incredibly peaceful

organized by young people generation gen

Z in Kenya uh led by women in many cases

incredibly peaceful and then the police

the state were the ones that were

violent when they tried to repress this

particular protest

uh so exactly these are incredibly

historic very important protests we're

still trying to make sense of them and

the events unfolding very quickly I just

Illustrated to you this afternoon that

the president dismissed his entire

cabinet this is Uncharted Territory a

victory for these young people a victory

for Progressive forces in Kenya a

victory I think for Progressive forces

in

Africa no I think that's a very good

point and and to me because it gets so

much to the heart of the matter of of

what's Happening Here which is you know

how can Africa develop how can it move

out of poverty how can it use its

resources in different ways and and I

think that seems like an important

context for this because you know so

much of what the IMF is is prescribing

for countries like Kenya or Zambia or

Ethiopia or any of the other heavily

indebted countries is it tell me if you

think I'm wrong but it seems to be that

their prescriptions for how these

countries should develop are the

opposite of the types of policies that

we've seen in countries that have become

developed in East Asia in Europe and

North America and it feels like a

protest movement like this is really

sort of bringing that out into the

Forefront but anyway I was hoping you

could just talk a little bit more about

that because I think that's really the

undercurrent so much beneath so much of

this is okay if the IMF is not the

answer you know how can countries

develop uh and and well I'll stop

editorializing there yeah you're right

Eugene you're very right I mean the IMF

has been sort of spreading the gosport

to Africa which is a complete opposite

of how other countries have developed

more more recently uh sort of East Asia

South Asia I mean China uh you know even

the west or even I I heard you just

before this show began like American uh

development if one can call that is

steep in slavery so we don't want to do

that but essentially countries that have

developed most recently have done it by

capacitating the state making the state

big and present in the economy and

directing the economy by capacitating

everyday working people making sure they

have the resource

making sure they Ed they have education

they have access to healthare making

sure they're living decent lives but the

AMF completely gives the opposite type

of advice uh in Africa and especially it

is very difficult for African sort of um

governments to resist this because they

have this debt uh Cloud hanging over

them right so debt is used as a

mechanism to control you are in debt you

have no choice therefore if you want our

assistance you've got to do these things

which are going to make your situation

even worse that will make sure that you

keep coming back to us in the way I just

Illustrated that Kenya has been going to

the IMF has gone to IMF 22 times since

1964 I mean clearly the IMF is doing

something wrong here right their job is

to make sure that Kenya is own at least

ostensibly right Kenya should be on the

path to self-determination and they no

longer will need IMF assistance but they

keep going on going back every three

years so you're essentially right Eugene

uh I mean you have to understand it as

it is a design the idea is we're going

to in a ways uh knock off your knees so

that you never run and therefore you're

always going to be uh you know you know

available to us to do our bidding for

example most people are wondering what

in the world are Kenyan police officers

doing in Haiti why would Kenyan police

officers uh agree or why would the

Kenyan State agree to send their men and

women all the way to Haiti to go and do

some nasty things there well when you're

when you when you're at the bidding of

the West and you're at the bidding of

the IMF strange things can happen

you know I I'm curious and um maybe this

is a bit rhetorical but obviously Africa

one African country after another has

been hollowed out by the IMF over the

last several decades and there's so much

evidence that IMF policies in African

countries as well as other Global South

countries don't not only do they not

work they devastate they starve people

um so how is it that in a country like

Kenya you have a government that despite

decades and decades like half a century

practically of evidence that these

policies do so much damage to people

across the African continent how is it

you have a government still I mean

obviously they they had to withdraw this

particular bill because of the reaction

to it but how is it that Kenya has a

government that's willing to still

Implement these

policies yeah this is incredibly

puzzling R but it has not always been

like this so if you look at African

history for example from about 19 the

1960s when many African countries got

independence up until the late 70s mid

80s there was like a serious project of

building self-determination economic

sovereignty I think we know the heroes

and heroins Thomas Sankara and the rest

of them there was an actual attempt and

I think there was a realization on the

part of the West and the IMF oh my God

if these guys are actually going to make

it right and then for some you know for

so for many many reasons for some you

know for for some obvious reasons we

ended up getting ourselves into a

serious economic crisis in the 80s

mostly engineered by the West which then

loaded our countries with debt and then

we became completely susceptible to IMF

influence and interference but also the

IMF and World Bank were very very clever

at this point they begin to set up

training schools on the African

continents in parts of the global South

they begin to train our economists they

begin to train some of our smart people

indoctrinating them with this IMF

neoliberal ideology so again many people

today Ria who are running so uh

ministries of Finance or Departments of

the treasury in African countries are

people who are schooled or the mostly

IMF for World Bank alumni or have gotten

their degrees in economics departments

where IMF IMF Orthodoxy is taught

they're in in a sense brainwashed and

this is the generation that is mostly

running African economic finances today

so in a sense it is not surprising uh

from that point of view but it was not

always like this if you go back to the

70s and 80s you would find a different

kind of Cadron running economic Affairs

in Africa mostly these are folks who are

mostly trained in the Soviet Union uh

mostly were trained understanding

exactly what it is required to build

your economy what is actually required

for you to have economic sovereignty and

economic self-determination but all this

was wiped out starting in the 1980s and

this is why we find ourselves in this

moment but it's also important to

realize that there's a re emergence and

a Resurgence of that kind of thinking

and I think I'd like to draw a throw

line uh between that kind of thinking

pre 1980s and what's happening in Kenya

for example today with the young people

they're discovering thas Sankara they're

reading classic texts right this is the

kind of debate and discussion that's

happening in in all this

mobilizing no I think that's an

extraordinarily important point and you

know it takes me back to another

question of whether or not we need to if

this is a moment to start in the world

more broadly talking especially those of

us who are here in you know the Imperial

centers uh like the United States to

start talking about not just debt relief

but debt forgiveness I mean I can

remember 1999 2000 there was a lot of

momentum behind it I mean in some ways

the beginning of the Iraq War kind of

shifted the geopolitical ground there

and we sort of lost the threads of that

but is it is it is it time to bring back

that kind of conversation because it

really does feel when you look at these

just odious amounts of debt you know

relief cannot really do enough I mean

there has to be serious debt forgiveness

it seems to me you're right Eugene and I

would even go so far to say I think the

the terminology should be debt

cancellation because in a sense

forgiveness makes it look like you know

we brought this upon ourselves actually

we didn't these unjust debts as you just

rightfully put it these are unjust debts

that in many ways are loaded upon us uh

you know sometimes unsuspectingly so and

so on and so forth so I think this is

dead cancellation because this debt if

this debt doesn't go away we'll we'll

keep on having the conversation in the

way that R just asked the question short

while ago uh so exactly this is the

moment for sisters and brothers in at

the Imperial Center to join hands with

us and really demand for debt

cancellation uh and demand for rewriting

of the rules in such a way that uh you

know we need to have really Global

multilateral entities that are set up so

that we can help one another when times

are bad

and you know rejoice when times are good

but the IMF and World Bank are not fit

for that purpose they're not uh they're

not they're not Global institutions

they're really Western institutions

doing the West bidding so I agree with

you entirely we need we do need to have

a conversation about date

cancellation let me just ask you one

quick followup to that which I think is

notable uh say a little bit more about

them being Western institutions because

I think that's another thing as people

say well isn't every aren't they all

members of the IMF all these countries

so isn't it equal uh in terms of how

decision- making is done

uh some some countries are more equal

than others so for example the IMF is

governed by an executive board which is

the board that determines it policy it's

lending policy etc etc that board and

the board supervises the uh the the

operations of the managing director who

is the person that sort of heads the IMF

that board the most one of the most

important countries on that board which

has a massive voting share is the US so

the US can veto you know the US has sort

of just like veto in the security

Council as we've seen with the genocide

in Gaza you know people have been

wondering but the UN is ours it belongs

to all of us how is it that one country

has such powerful veto power how is it

that one country can say no we veto that

resolution even though that resolution

is sensible the same kind of stuff

happens in the IMF the same kind of

stuff happens in the World Bank in fact

I I'll say one more thing Eugene uh

there is a gentleman's agreement the

gentleman's agreement because it's men

who agreed in the 1940s when the IMF and

World Bank were being set up

that the head of the IMF will be

selected by Western by Europe and the

head of the World Bank will be selected

by the us if these are truly Global

institutions where we all equal members

why would you want to have a monopoly on

who who heads it you know so all this

tells you that these are essentially

political institutions and they've been

set up to do the bidding of the US and

its friends in Western

Europe well as always we really

appreciate you helping us sort through

all of this Dr griev Shela from the

Africa Institute and the tricontinental

institute for social research thank you

so much for giving us some of your time

here in the freedom

side thank you for having me