Flowers reach their final destination on an Ecuadorian farm and are packaged at high speeds in the post-harvesting room. The women strip off leaves with gloves and cut the flowers to the proper size before depositing them in bunches on the conveyor belt (running through the middle of the photo). The flowers are then placed in large refrigerators before being shipped to international destinations / credit: Laura Kraft / Flickr
Editor’s Note: Kawsachun News spoke to Ecuadorian economist Juan Fernando Terán on April 2 about Western sanctions, the Ukraine war and how Latin America can protect its economy. The original interview can be found here.
Who is paying the price of western sanctions on Russia? Ecuador’s banana industry has collapsed without the Russian consumer market.
Juan F. Terán: Countries that export food and agricultural goods are in an incredibly difficult position now. Ecuador, Colombia, Brazil and Argentina are among the worst affected. These countries import almost all the supplies they need for agricultural production; fertilizer, agrochemicals and even seeds in some cases. Sanctions have cut off these supplies. We could have prevented this situation.
Latin America lived through a golden era of development and integration during the period of leaders such as [former Ecuadorian President Rafael] Correa, [former Bolivian President] Evo Morales, [former Brazilian President] Lula [da Silva] and others. During these years, a lot of work went into the issue of how the region can start producing its own agricultural supplies. This was a flagship project of [Union of South American Nations] UNASUR. The aim was to guarantee food security in the face of fluctuations in international markets. There was also the proposal for a Latin American-wide bank and a common currency. This could’ve helped the region’s economy survive this current monetary crisis, too.
What’s happening now, though? Let’s look at the case of Ecuador: We have two main sources of income in exports. The first is oil. Logically, the war in Ukraine should have been beneficial because the price of oil has risen, which should mean more income from sales for Ecuador. However, the conservative President Guillermo Lasso had already promised the IMF the payment from future oil sales. Even if the price of oil goes to $300 (per barrel) it won’t benefit ordinary citizens.
What about agriculture?
JFT: The country also earns a lot by exporting goods such as bananas, coffee, shrimp and flowers. The primary market for Ecuadorian flower production is Russia. Now those producers are facing a dramatic crisis because sanctions have cut them off from their clients. This is a huge industry for Ecuador. In the provinces of Pichincha and Cotopaxi, there are entire regions dedicated almost entirely to flower production. They even have airports there because these flowers are exported to the world by plane. A small part of their production goes to the United States and Europe, but the large majority goes to Russia. Russia is one of the few countries where people buy flowers all year round rather than just for certain dates like Valentine’s Day.
What about our shrimp, coffee, or cacao exports? All that requires fertilizer and other imported agricultural supplies. Now there’s a global shortage, Russia was the world’s leading producer and now they’re sanctioned.
What has been the government’s response?
JFT: Countries can survive this storm if they have an umbrella, but Ecuador doesn’t have a progressive government. It has a neoliberal government. Our economy has no umbrella now.
What has been the neoliberal response to this current crisis? The flower producers were the first to ask for assistance. They asked for loans, so they can sustain themselves temporarily during this drop. President Lasso replied by saying that going into business means assuming risk and that the state has no obligation to bail anyone out. This idea of not bailing anyone out is a great idea in my opinion, but only if it’s applied evenly. We shouldn’t have to bail out the bankers when they have a crisis. But, of course, Guillermo Lasso will never abandon his people. He only abandons small farmers, who are now in crisis.
Electing progressive governments in Latin America is not a question of ideology; it’s also about citizens defending their economy and living standards. If a banker manages to win an election, then these are the results.
Many countries now see Washington as an unreliable ally and are looking to trade in different currencies. Do you think the U.S. dollar will lose its international hegemony? What would that mean for Latin America?
JFT: When the [Brazil, Russia, India, China, South Africa] BRICS countries start trading entirely in Yuan, or any currency that isn’t the dollar, then the world is going to really change. I think we can expect to see this transformation within the next five years. It’ll represent the definitive defeat of the U.S. empire. History shows us that a country’s military power is linked to the power of its currency.
When Britain ruled the world, the British pound dominated international trade. Even Ecuador’s external debt was in pound sterling during those years. The reserves of our central bank were in pound sterling. This came to an end after the end of World War 2 because the U.S. became the new dominant power and built the world’s financial and monetary institutions for its own ends. The current war in Ukraine is also about currency. The U.S. is participating in this conflict against Russia because they need to defend the power of the dollar.
What can the region do?
JFT: Latin America needs to slowly de-link our region from the U.S. dollar. We need to diversify our international currency reserves. Correa began to do this in Ecuador by investing in gold reserves. This was criticized by the opposition at the time. However, this diversification can only happen if we make the necessary changes to our commercial relations. If we’re to start building reserves in the Chinese yuan, then we need to deepen commercial relations with China to achieve this.
I think we should return to the proposal of UNASUR of creating a common Latin American currency with its own central bank. We also need a Latin American payment system. Look at how the U.S. is using SWIFT to cut off any country they don’t like from the global economy. We can’t allow that. It makes us vulnerable. Russia and China are creating their own payment systems. We should have our own as well.
There’s no use in just complaining about U.S. aggression. That’s what they do. They invade and attack countries all over the world. The real problem is that Latin America is exposed and unable to deal with this kind of economic war. In response, we need to turn towards Asia in a serious way. Why isn’t the Ecuadorian government securing new markets for our shrimp and banana in China? There’s huge demand there. Bolivia and Ecuador both have vast mineral wealth, we need to bypass the West and focus on Asia when it comes to trade and investment in these commodities.
U.S. media has attacked countries like Mexico, Brazil and Argentina, for not imposing their own economic sanctions on Russia. Do you think this capricious request from the United States will further break down the U.S. sphere of influence here and across the rest of the global South?
These sanctions are causing an inflation crisis for people everywhere. Europeans are paying 8-9 euros for a gallon of gasoline. In the U.S., it’s $4.75. Up to $6 in places like California and Miami. This is shocking. The sanctions are having a boomerang effect on the U.S. and its citizens. Though not everyone is suffering: Arms manufacturers are not suffering. People like [U.S. President Joe] Biden’s son [Hunter], with shady dealings in the gas business, are not going to suffer.
Financial analysis reports came out this week indicating that if the price of gasoline remains at $4.75 as a national average in the U.S., then the U.S. economy will enter into a recession at the end of this year. None of what they’re doing is reasonable from the perspective of ordinary citizens.
On September 10, sections of the second Nord Stream 2 pipeline laid from the German shore and Danish waters were connected in a so-called “above water tie-in.” The opposing pipe strings were lifted from the seabed by the lay barge, Fortuna. Then the pipe ends were cut and fitted together. The welding to connect the two lines took place on a platform located above the water on the side of the vessel. Then the connected pipeline was lowered to the seabed as one continuous string / credit: Nord Stream 2 / Axel Schmidt
Editor’s Note: The following represents the writer’s analysis and was produced in partnership by Newsclick and Globetrotter.
The current crisis of spiraling gas prices in Europe, coupled with a cold snap in the region, highlights the fact that the transition to green energy in any part of the world is not going to be easy. The high gas prices in Europe also bring to the forefront the complexity involved in transitioning to clean energy sources: that energy is not simply about choosing the right technology, and that transitioning to green energy has economic and geopolitical dimensions that need to be taken into consideration as well.
Gas wars in Europe are very much a part of the larger geostrategic battle being waged by the United States using the North Atlantic Treaty Organization (NATO) and Ukraine. The problem the United States and the EU have is that shifting the EU’s energy dependence on Russia will have huge costs for the EU, which is being missed in the current standoff between Russia and NATO. A break with Russia at this point over Ukraine will have huge consequences for the EU’s attempt to transition to cleaner energy sources.
The European Union has made its problem of a green transition worse by choosing a completely market-based approach toward gas pricing. The blackouts witnessed by people in Texas in February 2021 as a result of freezing temperatures made it apparent that such market-driven policies fail during vagaries of weather, pushing gas prices to levels where the poor may have to simply turn off their heating. In winter, gas prices tend to skyrocket in the European Union, as they did in 2020 and again in 2021.
For India and its electricity grid, one lesson from this European experience is clear. Markets do not solve the problem of energy pricing, as they require planning, long-term investments and stability in pricing. The electricity sector will face disastrous consequences if it is handed over to private electricity companies, as is being proposed in India. This is what the move to separate wires from the electricity they carry aims to achieve through Indian Prime Minister Narendra Modi’s government’s proposed amendment to the existing Electricity Act of 2003.
In order to understand the issues related to transitioning toward green energy, it is important to take a closer look at the current gas supply-related issues being faced by the European Union. The EU has chosen gas as its choice of fuel for electricity production, as it goes off coal and nuclear while also investing heavily in wind and solar. The argument advanced in favor of this choice is that gas would provide the EU with a transitional fuel for its low carbon emission path, as gas tends to produce less emissions than coal. It is another matter that gas is at best a short-term solution, as it still emits half as much greenhouse gas as coal.
As I have written earlier, the problem with green energy is that it requires a much larger capacity addition to handle seasonal and daily fluctuations that planners have not accounted for while advocating for switching over to clean energy sources. During winter, days are shorter in higher latitudes, and the world therefore gets fewer hours of sunlight. This seasonal problem with solar energy has been compounded in Europe with low winds in 2021 reducing the electricity output of windmills.
The European Union has banked heavily on gas to meet its short- and medium-term goals of cutting down greenhouse emissions. Gas can be stored to meet short-term and seasonal needs, and gas production can even be increased easily from gas fields with requisite pumping capacity. All this, however, requires advance planning and investment in surplus capacity building to meet the requirements of daily or seasonal fluctuations.
Unfortunately, the EU is a strong believer that markets magically solve all problems. It has moved away from long-term price contracts for gas and toward spot and short-term contracts—unlike China, India and Japan, which all have long-term contracts indexed to their oil prices.
Why does the gas price affect the price of electricity in the EU? After all, natural gas accounts only for about 20 percent of the EU’s electricity generation. Unfortunately for the people in the EU region, not only the gas market but also the electricity market has been “liberalized” under the market reforms in the EU. The energy mix in the grid is determined by energy market auctions, in which private electricity producers bid their prices and the quantity they will supply to the electricity grid. These bids are accepted, in order from lowest to highest, until the next day’s predicted demand is fully met. The last bidder’s price then becomes the price for all producers. In the language of Milton Friedman’s followers—who were known as the Chicago Boys—this price offered by the last bidder is its “marginal price” discovered through the market auction of electricity and, therefore, is the “natural” price of electricity. For readers who might have followed the recently concluded elections in Chile, Augusto Pinochet—who was a military dictator in Chile from 1973 to 1990—introduced the Constitution of 1980 in Chile and had incorporated the above principle in a constitutional guarantee to the neoliberal reforms in the electricity sector in the country. Hopefully, the victory of the left in the presidential elections in Chile and the earlier referendum on rewriting the Chilean constitution will also address this issue. Interestingly, it was not the former UK Prime Minister Margaret Thatcher—as is commonly thought—who started the electricity “reforms” but Pinochet’s bloody regime in Chile.
At present in the EU, natural gas is the marginal producer, and that is why the price of gas also determines the price of electricity in Europe. This explains the almost 200 percent rise in electricity price in Europe in 2020. In 2021, according to an October 2021 report by the European Commission, “Gas prices are increasing globally, but more significantly in net importer regional markets like Asia and the EU. So far in 2021, prices tripled in [the] EU and more than doubled in Asia while only doubling in the U.S.” [emphasis added].
The coupling of the gas and the electricity markets by using the marginal price as the price of all producers means that if gas spot prices triple as has been seen recently, so will the electricity prices. No prizes for guessing who gets hit the hardest with such increases. Though there has been criticism from various quarters regarding the use of marginal price as the price of electricity for all suppliers irrespective of their respective costs, the neoliberal belief in the gods of the market has ruled supreme in Europe.
Russia has long-term contracts as well as short-term contracts to supply gas to EU countries. Putin has mocked the EU’s fascination with spot prices and gas prices and said that Russia is willing to supply more gas via long-term contracts to the region. Meanwhile, in October 2021, European Commission President Ursula von der Leyen said that Russia was not doing its part in helping Europe tide over the gas crisis, according to an article in the Economist. The article stated, however, that according to analysts, Russia’s “big continental customers have recently confirmed that it is meeting its contractual obligations,” adding that “[t]here is little hard evidence that Russia is a big factor in Europe’s current gas crisis.”
The question here is that the EU either believes in the efficiency of the markets or it doesn’t. The EU cannot argue markets are best when spot prices are low in summer, and lose that belief in winter, asking Russia to supply more in order to “control” the market price. And if markets indeed are best, why not help the market by expediting the regulatory clearances for the Nord Stream 2 pipeline, which will ship Russian gas to Germany?
This brings us to the knotty question of the EU and Russia. The current Ukraine crisis that is roiling the relationship between the EU and Russia is closely linked to gas as well. Pipelines from Russia through Ukraine and Poland, along with the undersea Nord Stream 1, currently supply the bulk of Russian gas to the EU. Russia also has additional capacity via the newly commissioned Nord Stream 2 to supply more gas to Europe if it receives the financial regulatory clearance.
There is little doubt that Nord Stream 2 is caught not simply in regulatory issues but also in the geopolitics of gas in Europe. The United States pressured Germany not to allow Nord Stream 2 to be commissioned, and also threatened to impose sanctions on companies involved with the pipeline project. Before stepping down as the chancellor of Germany in September 2021, Angela Merkel, however, resisted pressure from Washington to halt the work on the pipeline and forced the United States to concede to a “compromise deal.” The Ukraine crisis has created further pressure on Germany to postpone Nord Stream 2 even if it means worsening its twin crises of gas and electricity prices.
The net gainer in all of this is the United States, which will get the EU as a buyer for its more expensive fracking gas. Russia currently supplies about 40 percent of the EU’s gas. If this stalls, the United States, which supplies about 5 percent of the EU’s gas demand (according to 2020 figures), could be a big gainer. The United States’ interest in sanctioning Russian gas supply and not allowing the commissioning of Nord Stream 2 has as much to do with its support to Ukraine as seeing that Russia does not become too important to the EU.
Nord Stream 2 could help form a common pan-European market and a larger Eurasian consolidation. Just as it did in East and Southeast Asia, the United States has a vested interest in stopping trade following geography instead of politics. Interestingly, gas pipelines from the Soviet Union to Western Europe were built during the Cold War as geography and trade got priority over Cold War politics.
The United States wants to focus on NATO and the Indo-Pacific region, as its focus is on the oceans. In geographical terms, the oceans are not separate but a continuous body covering more than 70 percent of the world’s surface with three major islands: Eurasia, Africa and the Americas. (Although in the formulation of British geographer Halford Mackinder, the originator of the world island idea, Africa was seen as a part of Eurasia.) Eurasia alone is by far the bigger island, with 70 percent of the world’s population. That is why the United States does not want such a consolidation.
The world is passing through perhaps the greatest transition that human civilization has known in meeting the current challenges posed by climate change. To address these challenges, an energy transition is required that cannot be achieved through markets that prioritize immediate profits over long-term societal gains. If gas is indeed the transitional fuel, at least for Europe, it needs long-term policies of integrating its gas grid with gas fields, which have adequate storage. And Europe needs to stop playing games with its energy and the world’s climate future for the benefit of the United States.
For India, the lessons are clear. Markets do not work for infrastructure. Long-term planning with state leadership is what India needs to ensure supply of electricity to all Indians and ensure the country’s green transition—instead of dependence on electricity markets created artificially by a few regulators framing rules to favor the private monopoly of electricity companies.
Prabir Purkayastha is the founding editor of Newsclick.in, a digital media platform. He is an activist for science and the free software movement.
Editor’s Note: The following represents the writers’ opinion.
A free and transparent media is critical for any democracy. But in every society, defending the integrity of the media requires constant vigilance. We found ourselves drawn into the work of exercising this vigilance by complete chance.
When the independent left publication New Frame closed down after four years of operations, the liberal media rushed in, in unseemly haste, to put the boot in. Perhaps the worst of the attacks was penned by Sam Sole and Micah Reddy of the investigative journalism outfit amaBhungane. They alleged, based on nothing more than salacious gossip, that there was an attempt to influence public discourse in South Africa by the Chinese state. Not a shred of evidence was provided for this conspiracy theory by Sole and Reddy in an article that was largely based on innuendo. They abused the institutional authority of amaBhungane as a trusted publication to give credence to a conspiracy theory, one that aligned closely with the
key tropes being driven by the United States in the New Cold War.
The hostility towards us in this story can only be because our new organization, the Pan-African Institute for Socialism (PAIS), aims to create a non-sectarian space on the left to reach consensus on a pragmatic minimum program to increase the prospects for the Black poor and working-class majority in South Africa, Africa and the Global South.
PAIS has never had any sort of connection to New Frame aside from a single meeting held at their offices to inquire about the process for submitting opinion pieces for consideration, something that never actually happened in the end. But, to our complete astonishment, we found PAIS, a new and entirely unfunded organization, drawn into the conspiracy theories recycled by Sole and Reddy. This quite bizarre experience led us to wonder who funded amaBhungane, and what the drivers were for such vehemence by publications that claim to be fair, even-handed, and balanced. Those questions soon led us to an intricate web of relationships that are clearly designed to hide the influence of powerful funders and networks.
What is the real project of these U.S.-led imperialists and their surrogates in South Africa? A common thread has been the use of proxies to stymie the liberation of the majority of South Africans, particularly the Black working class and rural poor. First was Inkatha.1 Then came the DA. Lately, it is a hodge-podge of xenophobic opportunists. In addition, there are organizations that pose as being ‘Left’ and the so-called independent media. They all have one thing in common. They have an agenda to drive the ANC vote below 50 percent, in towns, cities, provinces and ultimately nationally.2
While PAIS may irritate them because we shine a spotlight on these reactionaries, their real target is the liberation movement. They wish to stymie the realization of the National Democratic Revolution, the as-yet unrealized goal of the struggle.
In this graphic the authors provided, they connect South African media leaders to major funders and the U.S. government / credit: Phillip Dexter and Roscoe Palm
We have been stunned by the extent of the capture of much South African media by the U.S. state and how most of it is hiding in plain sight. The first article to come out of our ongoing research project, “Manufacturing consent: How the United States has penetrated South African media”3 noted a few key points, including the following:
The National Endowment for Democracy (NED) was created in 1983 during the Reagan era to conduct operations and functions previously carried out by the CIA.4 It supported the mujahideen in Afghanistan and the Contras in Nicaragua and has been involved in many U.S.-backed coups.5 It now has vast tentacles across Africa.6
The NED funds the Mail & Guardian’s (M&G) weekly publication The Continent7 via its own non-profit arm, Adamela Trust, and international organisations like the International Fund for Public Interest Media (IFPIM),8 and the Media Institute of Southern Africa (MISA),9 all of which are linked to key people and organisations in the South Africa media. The editor-in-chief of the Continent is Simon Allison, former Africa editor of M&G, Africa correspondent of Daily Maverick, and a former consultant with Open Society Foundation (OSF)-funded Institute for Security Studies.10 11 It is noteworthy that the NED has continued its program through Republican and Democratic administrations, from Reagan through to Biden, and was headed by Carl Gershman from its inception until 2021. Its agenda has not changed. 3. The OSF and Luminate, another major foundation, are official U.S. government partners that often work closely with the NED and other parts of the U.S. state, strategically taking on and funding projects that the U.S. state cannot or does not wish to directly undertake.12 Among the many examples of direct collaboration is that the NED and the OSF jointly founded Global Forum for Media Development (GFMD).13 The Center for International Media Assistance (CIMA) is an official initiative of NED that coordinates this work and lists OSF as a partner.14 Luminate, together with the MIDF, has facilitated “dedicated coaching and newsroom expertise in topics such as marketing, newsletters, community building, and audience development” for M&G.15 4. Key senior people in publications like the M&G and amaBhungane, including three former editors-in-chief of the M&G have gone on to work for U.S. and Western government-supported organizations, including three separate projects funded by the NED.16 17 18 5. At least fifteen people who passed through the fellowship program run by amaBhungane have been directly tied to U.S. government organizations and programs including the Voice of America.19amaBhungane has also led the formation of a regional investigative journalism network, IJ Hub.20 6. The M&G, the Daily Maverick and amaBhungane, as well as smaller projects like the M&G-linked Daily Vox and the local U.S. embassy-linked Africa Check,21 are part of a list of at least 24 publications that have been funded by one or more of the major funders that regularly partner with the U.S. government.22
As we continue with our research we are finding more NED links. For instance the NED has funded the Institute for Race Relations (IRR),23 which publishes the Daily Friend,24 a publication that is ostensibly liberal, but veers towards the reactionary right wing weltanschauung. Sam Sole, the editor of amaBhungane, is a member of the International Consortium of Investigative Journalists (ICIJ),25 which is funded by the NED.26 We are also finding more and more links between organizations, like the OSF and Luminate, and the U.S. state. It is also likely that some journalists are funded directly by organizations, so that the claim to independence of organizations can be upheld.
The Oppenheimer family, whose wealth was wrung from the super-exploitation of Black labor in the mines, have long had considerable influence over political life in South Africa, including during the negotiations where the right of capital to continue to exploit was affirmed.27 But it is clear that, like OSF and Luminate, the Oppenheimers are also key partners of the U.S. state. The Oppenheimers fund amaBhungane28 and are given the red carpet treatment by the Daily Maverick to platform for their surrogates such as Greg Mills to propagate their pro-Western worldview.29 Founded by Branko Brkic, the Daily Maverick does list some funders, but asks you to take a leap of faith that a group of ten trusts, companies, and individuals that own anything between 0.1 percent and 15 percent of its investment holding company, are not compromised or party to any external leverage, as a cohort or as individual opaque entities. It also raises questions that the Daily Maverick and its biggest shareholder, Inkululeko Media, are indexed by Google as sharing the same office address in St. George’s Mall, Cape Town.30 31 Their opaqueness flies in the face of the Daily Maverick’s claims of transparency, which are merely a marketing strategy. Since their reader covenant was drafted in 2009, the Daily Maverick has become an important and influential player in the polity. It has evolved beyond being a blog with an angle that punched above its lightweight class and has accrued a tremendous amount of institutional authority in shaping discourse and curating narratives. With this power comes the responsibility to precisely disclose its funding. In short, it’s time for Daily Maverick to grow up, just like its peers in the mediascape.
The Oppenheimers also fund the Institute for Race Relations (IRR),32 the South African Institute for International Affairs,33 and their own foundation, the Brenthurst Foundation34. In each case, the links to the U.S. state are clear. Chester Crocker, who was Ronald Reagan’s point man in southern Africa at the height of the Cold War35 is an “honorary life member” and board member of the IRR.36 The Brenthurst Foundation has clear and open links of various kinds to NATO. The director of the Brenthurst Foundation, Greg Mills,37 served as a special advisor to the NATO Commander David Richards, who commanded the Western coalition forces as they stomped their way across Afghanistan.38 Greg Mills39 is one of four foreign policy right-wing hawks who are “allowed” to write on geopolitical affairs by the Daily Maverick. The other three are former U.S. diplomat Brooks Spector,40 former editor of M&G and president of consultancy group Calabar Consulting, Phillip van Niekerk,41 and lifetime foreign affairs hawk and stenographer of Western imperial interests, Peter Fabricius. Fabricius and Spector are also linked to the South African Institute of International Affairs as “experts”.42 The SAIIA is funded by USAID and the U.S. Department of State.43 But the systemic capture of much of our mediascape by the U.S. state and its partners extends beyond questions of funding, training programs, revolving doors, boards and collaborations of various kinds. There is also the question of editorial lines. In a number of publications, there is a systemic bias towards pro-U.S. positions, and very, very little critique of U.S. imperialism. There are a number of people writing as independent analysts, who are in fact embedded in the U.S. state in various ways. We also see that while the media has often served the interests of the public in terms of uncovering corruption in government, it has often done comparatively little in terms of doing the same in terms of private sector corruption, abuse of workers and control of policy.
All this is just scratching the surface. We are finding much, much more evidence of widespread media capture with every hour of research. Already some key questions are emerging for future research and articles. They include the following:
Why is the Daily Maverick’s funding not fully and precisely disclosed—including, in particular, the details on all equity, loan, or subsidy transactions?
How are the amaBhungane fellowship and training programs funded? Are there project costs, fees and expenses received from programs funded directly or indirectly from U.S. government agencies? Why do such large numbers of the fellows go on to work for U.S. government funded projects?
Which publishers, editors and journalists have attended the regular events for editors held by the U.S. consulate in Cape Town? What are the details of other briefings held by U.S.-directly or -indirectly funded organizations that senior leaders of South African media attend?
Who are the former publishers, editors and journalists who now work for the U.S. state or for U.S.-state directly or -indirectly funded organizations?
What other media projects are funded by the NED, OSF, Luminate and the Oppenheimers?
What is the percentage of articles in our “independent” media on geopolitics that support the U.S. line on international affairs and the percentage of those that are critical?
Transparency is a basic democratic value. It is time we knew who the masters of our media really are. It cannot be acceptable that while the editors and reporters of these publications demand accountability and transparency of those in government, labor and, occasionally, in business, they arrogate to themselves the right to not meet the same standards.
Our research project is growing in scope and urgency by the day. We need help from all interested citizens of South Africa who wish to contribute to media reform in the interests of transparency and the important work of defending and deepening our democracy. As a start, we welcome suggestions for further questions for us to explore and, in due course, to present to the South African National Editors’ Forum (SANEF). Please do contact us at [email protected] and share the questions that you think should be raised.
Phillip Dexter and Roscoe Palm are co-founders of the Pan-African Institute for Socialism, which can be found on Twitter at @PaisSocialism.
Footnotes
1 The Inkatha Freedom Party (IFP) started as a cultural movement in present day KwaZulu-Natal, but quickly morphed into a political movement to oppose the ANC’s liberation struggle. See “Inkatha Freedom Party (IFP),” South African History Online. 2 For example, in a recent opinion piece in Financial Times, Gideon Rachman wrote, “The best thing [the ANC] could do for the country’s future would be to lose the next election and leave power.” Gideon Rachman, “South Africa’s fear of state failure,” Financial Times, Aug. 15, 2022 3 See Ajit Singh and Roscoe Palm, “Manufacturing consent: How the United States has penetrated South African media,” MR Online, Aug. 8, 2022. 4 See David Ignatius, “Innocence Abroad: The New World of Spyless Coups,”The Washington Post, Sept. 22, 1991 (“‘A lot of what we do today was done covertly 25 years ago by the CIA,’” agrees [Allen] Weinstein.” Weinstein was a co-founder of the NED.) 5 See David K. Shipler, “Missionaries for Democracy: U.S. Aid for Global Pluralism,”The New York Times, June 1, 1986. 6 For example, in FY2021 alone, the NED’s Africa program granted $41.5 million dollars across 34 countries and hundreds of projects. See National Endowment for Democracy, 2021 Annual Report. 7 See National Endowment for Democracy, “Regional: Africa 2021,” Feb. 11, 2022. 8 See International Fund for Public Interest Media, “About”. 9 See National Endowment for Democracy, Awarded Grants Search, (search: “Media Institute of Southern Africa”). Additionally, MISA has received funding from and is a “key partner” of the U.S. Agency for International Development. See United States. Congress. House. Committee on Appropriations. Subcommittee on Foreign Operations, Export Financing, and Related Programs, Foreign Operations, Export Financing, and Related Programs Appropriations for 2002: Hearings Before a Subcommittee of the Committee on Appropriations, House of Representatives, One Hundred Seventh Congress, First Session, U.S. Government Printing Office, 2001, p. 870. 10 See Simon Allison LinkedIn. 11 See Institute for Security Studies, “How we work”. 12 “Private sector funding of independent media abroad … has several advantages over public financing. Private funders can be more flexible … and their programs can operate in countries where U.S. government-funded programs are unwelcome. “In many places around the world, the people we train are more open to participating in programs funded by private sources than those funded by the U.S. government,” says Patrick Butler, ICFJ [International Center for Journalists] vice president.” National Endowment for Democracy, Center for International Media Assistance, Empowering Independent Media Inaugural Report: 2008, Ed. Marguerite Sullivan, (cited in Manufacturing consent article). 13 According to the Global Forum for Media Development, OSF and NED are its “core funders.” See Global Forum for Media Development, “Partnerships”. 14 See Center for International Media Assistance, “Partners”. 15 See Luminate Group, “Sixteen media selected for Membership in News Fund,” Feb. 4, 2021. 16 Roper became editor-in-chief of M&G in 2009 and left in 2015 to become the Deputy CEO of Code for Africa (CfA). CfA is a member of Code for All, which is funded by the NED. Additionally, Roper was a Knight Fellow at the International Center for Journalists, which is also funded by the NED. See, Chis Roper LinkedIn profile; Code for All, “Our Supporters”; International Center for Journalists, Impact Report, 2022, p. 17. 17 Former editor-in-chief Khadija Patel (2016-2020) left the M&G to chair the NED-sponsored International Press Institute. In 2021, Patel became head of programs at the NED-funded International Fund for Public Interest Media (IFPIM). See fn. 2 (above) (NED funding of IFPIM); International Press Institute, “Supporters and Partners”; International Press Institute, “Executive Board”; International Fund for Public Interest Media, “About”. 18 Former editor-in-chief Phillip van Niekerk (1997-2000) left the M&G to take up a senior position at the International Consortium of Investigative Journalists (ICIJ) in Washington D.C. ICIJ is funded by the NED. See “New editor of M&G,”Mail & Guardian, Mar. 20, 1997; “Over to you, Dr Barrell,”Mail & Guardian, Dec. 15, 2000; International Consortium of Investigative Journalists, “Our Supporters”. 19 See “Manufacturing consent: How the United States has penetrated South African media.” Full citation at fn. 3. 20AmaBhungane “is incubating the Hub… As incubator, amaBhungane has continued to support the Hub administratively.” IJ Hub, Annual Narrative Report 2021/21. 21 See Africa Check, “Partners” (“The U.S. Embassy in South Africa is proud to team up with Africa Check to tackle misinformation and disinformation in the media.”). 22 In addition to their own media-related grants, OSF and Luminate jointly founded the South African Media Innovation Program, a multi-million dollar media investment initiative managed by the Media Development Investment Fund, which is also funded by OSF and Luminate. See South Africa Media Innovation Program; Luminate Group, “South Africa Media Innovation Program (SAMIP) launched by Open Society Foundation of South Africa (OSF-SA), Omidyar Network, and Media Development Investment Fund,” Aug. 29, 2017. 23 See i.e. South African Institute of Race Relations, 86th Annual Report, 2015, p. 7. Additionally, the IRR has partnered with the International Republican Institute, which is one of NED’s four core institutes. See International Republican Institute, “Democratic Governance in Africa”; National Endowment for Democracy, “How We Work”. The IRR is also a member institute of the NED’s Network of Democracy Research Institutes. (See National Endowment for Democracy, “NDRI Member Institutes” (https://www.ned.org/ideas/network-of-democracy-research-institutes-ndri/ndri-member-institutes/#Top). 24 “The Daily Friend is the online newspaper of the Institute of Race Relations.” Daily Friend, “About” (https://dailyfriend.co.za/about/). 25 See International Consortium of Investigative Journalists, “Sam Sole”. 26 See International Consortium of Investigative Journalists, “Our Supporters”. 27 See Sampie Terreblanche, “The New South Africa’s original ‘State Capture’”, Africa Is a Country, Jan. 28, 2018. 28 See amaBhungane, “About Us”. 29 See https://www.dailymaverick.co.za/author/ray-hartley-and-greg-mills 30 See https://www.sayellow.com/view/south-africa/daily-maverick-in-cape-town 31 See footer on Inkululeko website for address. 32 See Oppenheimer Memorial Trust, “All Beneficiaries – S” 33 See Oppenheimer Memorial Trust, “All Beneficiaries – S” 34 See The Brenthurst Foundation, “Our Story”. 35 Interestingly, a 1983 New York Times profile of the Oppenheimer empire opens with the following: “In an oracular vein, an academic named Chester A. Crocker once said of South Africa: That country is by its nature a part of the West. It is an integral and important element of the Western global, economic system. Mr. Crocker, who has since become the State Department’s top Africa hand and author of the Reagan Administration’s policy of “constructive engagement” with South Africa’s white minority Government, was openly embracing a premise found in both South African propaganda and the arguments of Marxist analysts: that the West’s formal condemnations of apartheid mask an enormous stake in the outcome of the shadowy struggle between the races there.” See Joseph Lelyveld, “Oppenheimer of South Africa,”The New York Times, May 8, 1983. 36 See South African Institute of Race Relations, 92nd Annual Report, 2021, p. 6. 37 See The Brenthurst Foundation, “Greg Mills”. 38 See Greg Mills, From Africa to Afghanistan: With Richards and NATO to Kabul, Wits University Press, 2007. 40 See J. Brooks Spector author page at Daily Maverick. 41 See Phillip van Niekerk author page at Daily Maverick. 42 See South African Institute of International Affairs “Expert” pages for Peter Fabricius and Brooks Spector. 43 See South African Institute of International Affairs, “Funders”.
Sudanese Foreign Minster Mariam al-Mahdi (left) and Russian Foreign Minister Sergey Lavrov answer press questions in Moscow on July 12, 2021 / Russian Foreign Ministry Press Service
Editor’s Note: The following is the writer’s analysis of Russia-Sudan relations.
Russia’s ambitious plans to establish a naval base in Sudan could soon be thwarted. The northeast African country is reportedly trying to “blackmail” Moscow by demanding a review of a deal allowing construction of a Russian naval facility on Sudan’s Red Sea coast.
In November 2020, the Kremlin announced plans to build a seaport technical facility in the city of Port Sudan, guaranteeing Russia’s first substantial military foothold in Africa since the former Soviet Union was dismantled. The two countries reached a deal that would allow Russia’s navy a 25-year lease in Port Sudan, housing up to four ships and 300 soldiers, in exchange for weapons and military equipment for the northeast African country.
A map that shows Sudan and its proximity to the Red Sea / credit: World Port Source
But now, a Russian state news agency, RIA Novosti, reports Sudan wants to re-negotiate the deal. One Russian publication went so far as to call it “blackmail.” In exchange for providing the land for a naval base to Russia, Khartoum reportedly has asked Moscow to arrange payments to the country’s central bank during the first five years of the lease, with the option of extending the deal to 25 years.
The Kremlin has not yet responded to the proposal, although Russian Deputy Foreign Minister Mikhail Bogdanov said the two countries’ militaries continue negotiations on the creation of a naval logistics base for Russian warships in the Red Sea. Sudan’s officials, on the other hand, strongly deny their country has been trying to “blackmail” Moscow.
“It is not true. This news is not true. This is groundless news. The Sudanese side is not asking for any payments in connection with the military base agreement,” said Onur Ahmad Onur, charge d’affaires of Sudan’s embassy in Moscow.
Whether or not Sudan really asked Russia for financial compensation, the Kremlin’s struggle to improve its positions in northeast Africa is unlikely to be an easy one. Back in June, it became obvious Russia could face many obstacles in its attempts to establish a material-technical support facility in the strategically important region located between the Gulf of Aden in the south and the Suez Canal in the north. Such a facility could provide material support in the form of ships and soldiers and technical support in the form of command, control, communication, computer and intelligence operations.
On June 1, Sudanese Armed Forces Chief of Staff Muhammad Usman al-Hussein announced the revision of the agreement. About three weeks later, the Sudanese Minister of Defense Yasin Ibrahim Yasin traveled to Moscow to discuss Russian-Sudanese military cooperation with his Russian counterpart, Sergey Shoigu.
In July, while Russia was preparing to ratify the agreement, Sudanese Minister of Foreign Affairs Mariam al-Mahdi arrived in the Russian capital. She said Sudanese lawmakers will “evaluate whether the agreement is a benefit to Sudan itself and the strategic goals pursued by Russia and Sudan.” She also pointed out the future of the deal will largely depend on a “positive solution to a number of issues on which Khartoum counts on Moscow’s understanding and support.”
In an interview with Russian state-owned news agency RIA Novosti, Al-Mahdi openly stressed Sudan needs Russia’s help regarding the country’s dispute with neighboring Ethiopia, which is building the Grand Ethiopian Renaissance Dam (GERD)—a hydroelectric-power gravity dam on the Blue Nile River.
“Thanks to its good relations with Ethiopia, Russia can try to convince the Ethiopian side to listen to the voice of reason and come to an agreement that will not do harm to Sudan, as was the case when the dam was first filled,” Al-Mahdi said.
Khartoum fears Ethiopia’s apparent determination to fill the GERD would “threaten the lives of half the population in central Sudan.” In addition, the two countries have a decades-old border dispute, and some analysts claim Sudan and Ethiopia are on the verge of a wide-scale confrontation. It is worth noting Russia and Ethiopia signed a military cooperation agreement in July, and Kremlin officials claim the deal “does not have any destabilizing character.” However, Sudan recently seized Russian-made weapons—72 boxes of arms and night-vision binoculars—that were reportedly smuggled to Khartoum from Ethiopia. This was seen as an “attempt to destabilize the country.” It is entirely possible Russia is trying to balance between the two regional rivals, although Moscow could attempt to indirectly pressure Sudan to give the green light for the establishment of the Russian naval base in the Red Sea.
Port Sudan / credit: Bertramz/Wikipedia
At this point, it remains uncertain if the Sudanese parliament will ratify the agreement on the Russian base in Port Sudan. Some Russian experts think the construction of a Russian military facility on the Red Sea is unlikely.
“Russia is not going to pay Sudan to host a base in Port Sudan,” said Dmitry Zakharov, head of the Eurasian Institute of Youth Initiatives. “Due to the unthinkable corruption in the African country, the Russian government has no desire to invest in such a project.”
Unlike the Kremlin, the United States seems willing to provide limited financial assistance to Sudan. On August 29, Sudan’s Ministry of Finance and the U.S. Agency for International Development (USAID) signed an agreement for a $5.5 million development grant to support “democratic transition” and to promote economic growth. This is part of a total estimated amount of $200 million to be granted by 2024.
After the Sudanese transition government recognized Israel in 2020, the Trump administration removed Sudan in December from the U.S. list of “state sponsors of terrorism” and lifted U.S. sanctions. Sanctions normally prevent food, fuel and medicine from entering a country, harming ordinary people. Three months later, the two countries held an online Business and Investment Forum, and U.S. navy ships docked in Sudan for the first time in decades. Some Russian military experts believe the United States is pressuring Sudan not to allow Russia to open a naval base in the country, although such a facility could improve Khartoum’s position with neighboring Ethiopia.
Overall, it is Russia, rather than Sudan, that seeks to strengthen its geopolitical positions in the strategically important region. Thus, the coming days and weeks will show if Russia will adopt a more proactive approach regarding this sensitive issue. One thing is for sure: The naval base on the Red Sea would be just the first step in Russia’s ambitions plans to return to Africa, a region that has ceased to be in Moscow’s geopolitical orbit in the post-Soviet years.
Nikola Mikovic is a Serbia-based contributor to CGTN, Global Comment, Byline Times, Informed Comment, and World Geostrategic Insights, among other publications. He is a geopolitical analyst for KJ Reports and Global Wonks.