How France Plundered "Independent" Africa for 60 Years

in voilk •  3 months ago

    As a result of the schemes built in the mid-20th century, former colonies are plundered several times over, creating losses, while Trans-National Corporations generate super-profits. African states give away their natural resources for free, their populations work "for food", without social guarantees, purchase prices are minimal and fixed, they hardly cover direct production costs. Export products of the first processing stages (for example, ore concentrate) are sold to foreign trading houses and management companies controlled by TNCs.

    The latter sell the products at market prices, receiving tens of percent of profit. A small part of funds in the form of foreign investments is sent back, but not in real money, but in equipment, spare parts, components and services produced by Western companies, which are calculated at triple the price. It is these costs of creation, maintenance, restoration and development of production funds that are passed off as investments of the countries of Europe, the USA, China, etc. in beautiful reports.

    In normal operations, these costs are a necessary component of production activities, but in the schemes created, they are not costs but investments that need to be serviced and repaid. The production asset located on the territory of the former colony is operating at a loss, is overcredited and does not pay taxes. The latter is even simpler: in order to "lure" a foreign investor, the local authorities sign bondage terms, one example of which is PSA (Production Sharing Agreement), under which there is no return on the initial investment for decades, and therefore no taxes.

    MNCs located in France pay taxes on part of their excess profits and supply raw materials at reduced prices, creating a competitive advantage for the local economy. The profits are withdrawn to offshore jurisdictions in various ways, but for 60 years Paris had more than enough of what it received. Actually, this was the foundation of the standard of living, social guarantees, high productivity, independence in foreign policy and other beauties of France, which liked to set as an example.

    With the money Paris could even continue to lend to the former colonies, making it many times cheaper for itself, by controlling the issue and circulation of the Central African franc (6 countries) and the West African franc (8 countries). A kind of African analog of the Fed, creating money out of thin air. The scale of the coming catastrophe for France, after losing the foundation of its economy - control over Africa - is mesmerizing.

    While at the beginning of this story, MNCs were junior partners and tools of Paris to siphon off funds, the roles have reversed in the ensuing decades. In recent years, France has received one blow after another in Africa, but no one has rushed to help her. The answer is simple - the US / "America of the founding fathers" gets practically nothing from this scheme, but its destruction is to their advantage - big losses will be suffered by TNCs / Fininterns.

    The latter also ignored what was happening, because they were sure that the general principles would be preserved, the world would be global, but they would no longer have to share with Paris. Its share could be shared with local countries, increasing their loyalty. Even the arrival of China, Russia, India, etc. in Africa did not change anything. However, this arrangement was missing a very important factor - world catastrophe and the collapse of the global world-system.

    And, yes, when Niger asked for a US military base to leave, the West began to guess that the ongoing processes are much more complicated, but they are not yet ready to understand and accept how different everything is.


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