Tuesday, September 07, 2010

Mozambique Unrest Over Food Prices Illustrates Growing World Crisis

Mozambique Unrest Over Food Prices Illustrates Growing World Crisis

Many states are facing increasing problems in feeding populations

By Abayomi Azikiwe
Editor, Pan-African News Wire

Seven people were killed and 280 suffered injuries in the Southern African nation of Mozambique in early September when crowds rioted after a 30 percent increase in food prices. The unrest in Mozambique has prompted concerns that other African states as well as countries internationally will face similar problems related to escalating food prices.

The disturbances in Mozambique were reminescent of events during 2007-2008 when numerous countries in Africa and Europe saw widespread protests over food pricing and deficits. In Mozambique, which has enjoyed relative stability and economic growth over the last several years, the escalation in the price of both food and fuel has made it extremely difficult for workers and the poor to feed their families.

Events in Mozambique have also shed light on concerns about problems associated with food deficits in other African states such as Egypt and South Africa. In South Africa, where a 20-day public sector strike and other labor unrest has taken place, one of the major causes for industrial actions has been complaints over rising food prices.

Sizwe Pamla of the National Education, Health and Allied Workers Union (NEHAWU) in South Africa pointed to Mozambique as a stark reminder of the potential social unrest related to rising food prices. Pamla said "Look at Mozambique--we are sitting on a potential timebomb." (Financial Times, September 3)

Pamla continued by pointing out that "Too many workers are living from hand to mouth; the costs for poor people are skyrocketing." These problems have also been recognized across North Africa where numerous newspapers are carrying regular reports on the rising anger related to escalating food prices.

According to a political analyst in Mozambique, Adriano Nuvunga, "Bread is the key item in the basket for ordinary people. People are worried that rising costs have reached the point of no return." (Financial Times, September 3)

The London-based Financial Times noted recently that "The United Nations Food and Agricultural Organization's food index last month reached a two-year high on the back of rising cereal, sugar and meat prices, up almost 16 percent since last year." (Financial Times, September 3)

In addition to the rising prices for food, the costs for both water and electricity have risen by 10 percent in Mozambique. Also fuel prices have been increased three times since July in several African states.

World Capitalist Crisis At the Root of Instability

Since 2007 the world capitalist system has undergone its worse crisis since the Great Depression of the 1930s. In the United States approximately 8.4 million workers have lost their jobs.

Capitalist governments and central banks in the West have bailed out the financial institutions and multi-national corporations to the tune of trillions of dollars. Real wages for workers have declined and millions have lost their homes, pensions and healthcare coverage.

This crisis has impacted the developing regions of the world since these mainly post-colonial states have been completely integrated into the world capitalist system. With the decline of socialism in the former Soviet Union and Eastern Europe, the West has been encouraging the developing states to accept whole-heartedly the capitalist model of economic production.

In Africa, it has been estimated that some 50 million people have been thrown into poverty since 2007. The United States has not directly addressed this crisis in the developing states and has instead escalated its military operations in Africa as well as other parts of so-called Third World in Central Asia, the Middle-East and Latin America.

With specific reference to Mozambique, this country was enslaved and colonized by Portugal for nearly five centuries. The African masses organized themselves during the 1960s and 1970s through the Mozambique Liberation Front (FRELIMO) which waged a successful armed struggle against the Portuguese colonialists who were a part of NATO.

Mozambique won its independence in 1975 and set out to build a socialist society in close alliance with other states in Southern Africa. The country served as a rear-base for the armed struggles against European settler-colonialism in the-then Rhodesia (now Zimbabwe) and apartheid South Africa.

Beginning in the early 1980s, the racist apartheid regime trained and financed a counter-revolutionary bandit force known as RENAMO (Mozambique Resistance Movement). For a decade RENAMO destroyed development projects, government offices and terrorized the Mozambican population.

In 1992, a ceasefire was signed with RENAMO and a process of national reconciliation led to multi-party elections which still resulted in the continued rule of FRELIMO, the liberation movement that won independence from Portugal.

Nonetheless, the adoption of neo-liberal economic policies in the aftermath of the decline of socialism in Europe created new problems for the Mozambican state. Despite a growth rate of 7.2 percent during the first half of 2010, the country is faced with rising prices and growing social unrest.

Capitalist economic policies have proven to be disastrous for the newly-emerging African states. Only the return to socialist-oriented policies and unification with other African states in the region can provide the potential for genuine growth in Mozambique and throughout the continent.

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