Kenya’s Youth Are Rising Up Against U.S.-IMF Control and Aren’t Backing Down
Summary
TLDRIn 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
😡 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.
🌐 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.
📚 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.
💼 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.
Mindmap
Keywords
💡IMF
💡Austerity Measures
💡Economic Sovereignty
💡Protests
💡Debt
💡Neoliberal Ideology
💡Debt Relief
💡Global Multilateral Entities
💡Economic Self-Determination
💡Corporate Media
💡Western Institutions
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
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