Opinion: Mzee wants it to BOP his way

You want another rap? Nah, didn’t think so. Even if President Museveni wants a BOP. Not a DaBaby track or anything. His just approved the US$500 million dollars to the Republic. This was reported earlier this month and he approved it on the 6th of May 2020, but stamped by the Ministry of Finance, Planning and Economic Development (MoFPED) on the 11th of May 2020.

What is unique here is that this loan is given on the idea of “Balance of Payments”. Economist would know that this to cover the deficit and the balance the budgets. This is to ensure the state has enough revenue to already cover the deficit it has. That is why grants and loans comes to ensure the levels of revenue covers the spending. This means that the state has spend a hundred dollars, but only had 50 dollars in liquidity. So, to ensure the accounts are balanced, the BOP comes in and fix the shortfall.

Museveni writes this in the letter:

The money that goes to the Bank of Uganda is for “balance of payments support”. “Balance of Payments supports” does not only mean helping the country to “import more” but must also mean helping the country to “import less” by manufacturing these products here. With this undertaking, I approve the loan” (Museveni, 06.05.2020).

Because what the support does in the instance of the hundred dollars budget with a shortfall of 50 dollars revenue. The BOP support is the missing 50 dollars and makes it zero. Meaning, the accounts and financial flows should turn into zero. That means with the budget with its expenditure and its revenue its should be a nil or zero sum game. Therefore, when the President claims this helps local industry and less imports. I don’t see it.

Especially, if this is a BOP. Because, a BOP is a fixated way of balancing the budgets, not secure more trade. Its to cover deficits between expenditure and revenue. This isn’t a magical sphere of happiness and joy. This is budgetary measure to cover the shortfalls and lack of domestic revenue. To cover expenses that appeared or was already budgeted. Therefore, the need of Balance of Payments from the IMF to cover those.

This can be seen as a Financial Inflow to cover the deficit.

Like this:

-100 dollars budget/Import

+50 dollars revenue/Export

+50 dollars Financial inflow (BOP Support)

= 0

That is why, when the man says like this. Its a game of balancing the budget. Not putting a wand on the thing and swiftly changing things. This is just a financial measure to cover a deficit. A short-term solution to a shortfall. That will not solve anything, but by time. Not cover debt, not create a market nor make a big difference. Its just covering expenditure. Nothing else.

The President can make it seem so, but that wouldn’t be a BOP. That would be another instrument and another measure. Where the funds was actually meant for investment. This is covering the basics.

Let me end with DaBaby: “I needed some shit with some bop in it (Let’s go)” (DaBaby – ‘BOP’ of KIRK, 2019). Peace.

Statement by the People Power Movement on the IMF Rapid Credit Facility Announced on 6th May 2020 (09.05.2020)

Opinion: The IMF decided to give dictators a COVID-Lifeline

The International Monetary Fund (IMF) might have the best intention, but when you give debt relief and certain programs funds to several of republics. Don’t expect this to be spent on the public there. These funds will be squandered on big convoys, don’t expect suddenly these dictators do build fancy hospitals for poverty lingering citizens. Who hasn’t been a priority and only useful, when they need grants and loans from the likes of IMF and the World Bank (WB).

On the 2nd April 2020, the IMF approved US$ 109.4 million to Rwanda. This is supporting the militaristic regime, which have ruled since the genocide in 1994. Therefore, giving a lifeline to President Paul Kagame. Who is gettign rid of his opposition, activists and they suddenly dies. That’s why they are ensuring a small praising elite in Kigali to overpower the public with more funds like this.

On the 3rd April 2020, the IMF approved US$ 97.1 million to Togo. This is supporting the Second Generation Dictator Faure Gnassingbe who is just sworn in for his third term in office. Where all protests are hard hit, where the real opposition is destroyed and there is lack of real investment into the the state. As the Gnassingbe family, who has ruled this nation from 1967. They haven’t showed any interest in real development and only using the state as a private business operation.

On the 9th April 2020, the IMF approved US$ 147 millions to Gabon. Where second generation dictator resides. The son like father, keeps the state all enclosed. Omar Bongo Ondimba follows Ali Bongo Ondimba. These funds are given to a man who is following the family affair of running this state. This is has been done since 1967. So, they are validating the Bongo regime and they will continue to constrain it.

On the 14th April 2020, the IMF approved US$ 115.1 millions to Chad. Another big-man and militarized government run by Idriss Deby Itno have ruled since a coup in 1990. He rules by decree and silence his opposition. So, it not like this man is saint. Your not a saint, when the only way the opposition dares to show their affection is to whistle. Not like the IMF cares about that, because these funds will be given to an boast of his army, whose not only battling Boko Haram, but also constrains the public.

On the 4th May 2020, the IMF approved US$ 226 millions to Cameroon. This is boosting the President for Life, Paul Biya. The Ghost of Cameroon and Swiss Landlord of Cameroon. The man who kills own citizens in the North-West and South-West Regions, the Ambazonia parts of Cameroon. The man who rigs elections, uses army against his own citizens and who has reigned non-stop since the 1980. So, this man hasn’t developed Cameroon, except for making his elite wealthy and making his own family richer than the nation. That is the ones the IMF is bailing out.

On the 6th May 2020, the IMF approved US$ 491.5 million to Uganda. This is giving money to the militarized government of President Yoweri Kaguta Museveni. The government who has run the Republic since the coup in 1986. A man who torture, detain and assaults his opposition. A man who uses the government as private property. A man who is the “high above” and who directs anything from his State House. Who has had debt relief and grants gotten lost, paying ghosts and so fourth. These funds will squandered and only feed the kitchen cabinet, not the public. He has had the time from 1986 to develop the Republic, but have instead built a big army and the biggest entourage on the continent.

So, the IMF is giving these money out in good faith. They are doing it with a purpose, but don’t expect to do any good. These funds will boast and give the Dictators a lifeline. That is sad, its a bitter pill to swallow, but needed to be said. Since, the IMF is by doing this giving way to the most ruthless leaders on the planet. People who have no heart, but only lives for their own personal greed. These people can order the death of their enemies and can without a flick of their eyes make someone stop.

That is why this money will not be used for the purpose of which its given. It might be some of the dollars ending up to nurses and frontline workers. However, this will most likely pay of their pet projects like para-military groups or security organizations, which is used to monitor the public. The money will also go to the expensive lifestyle of the President and his cronies. While only a few rain-drops will go to public. However, don’t expect these funds to go anywhere useful. Than, your lying to yourself and very naive.

You don’t become big-men like these without being using force and not caring about governance. They are there because of the guns, the method of fear and intimidation. These funds are given to men who uses their state as a racket.

The IMF like I said does this in good faith, but its a reason why its faith. Because they have trust and belief it will do some good, but don’t expect magic. There is no magic wand to fix things, especially with the leadership at the helm. What is worrying is how easily they could get these millions of dollars, because of the global pandemic.

They will misuse it and it will be squandered. It just a matter of time, before ghost companies and ghost workers are paid. Before sudden funds have gone missing and no one can find the allocation. That is just what happens. Also, the elite will get a big pay-check, because their loyalty is worth more than gold for these men. Peace.

Opinion: Don’t let Mzee pimp a second round of debt relief

Back in the day, President Yoweri Kaguta Museveni in the end of the 1990s the World Bank let the Republic of Uganda the opportunity to join their Heavily Indebted Poor Countries (HIPC) to cut the debt of the Republic. However, even with the massive amount of debt relief done in 1998 and later never stopped him from taking up more debt.

That is why the amount of interests paid on every single budget is debt burden, which is created by the President himself and his extensive cronyism. The President has ensured that the state owns so much money, while he stills continues the drill by financing half of it by more debt. Which has been method the National Resistance Movement (NRM) and Mzee has used in the recent years.

That is why such a big amount of funds is going into interest payments. Also, why the Republic are going in a negative spiral, while the lack of domestic revenue isn’t following the projections of growth that the state always promises.

With the knowledge of this, as the President is asking for a debt relief now. His using the Coronavirus or COVID-19. The whole world are into a recession because of this. It is the perfect smokescreen. The President had the 2000s and 2010s to fix issues, but instead the plunge the economy anyway. He just need an excuse for a bailout.

Last time it was Universal Primary Education, a empty campaign promise and now there are plenty of dilapidated schools. They played and tried to focus on it, but gave it up along the way. Because, doing this properly would actually cost time and effort. The President and his big convoy would actually have invested more, than they wanted too. More promising spending on proxy-wars, than on proper education for everyone.

So, knowing that the Multi-National Organizations, Bretton-Woods Organizations and donors gave way to the Uganda in between the late 1990s and early 2000s. They offered billions in various of schemes, not only HPIC and Poverty Eradication Action Plan (PEAP). This has been done already and still the state is bound by loans and grants to function its government. Therefore, the bullet of debt relief has been wasted.

The amount of US Dollars spent on the debt relief earlier in the reign of Museveni. The Head of State has misused this in the past. Not like he will change now. He has used the system to pimp his budgets and his wealth. His enriched himself and his cronies. While the Republic is still poor and the revenue isn’t growing like the economic recovery of the 1990s said it should have done. If the cure of the past would have worked, than the need for debt relief now would be unnecessary.

In 2020, the Republic shouldn’t get debt relief. It will be only spoils for the elites and the cronies around the President. It will be used buying tear-gas and SUVs. The WaBenzi will eat the spoils and only give away beans to the ones in need.

That Museveni says the continent needs debt relief. He means that himself needs it now. Even if his a wealthy guy in an impoverished republic. A republic he has run for three decades. Which already got special treatment and had a controlled Consultative Group. So, its not like this man hasn’t pimped the system already. He has tricked it and promised to juice up vehicle, but instead continue to run it to the ground. Hoping he could trick some new leaders to do the same mistake. Trusting him and his “high above” leadership.

They already spent millions of dollars to cut of the debt of the Republic under his control. The leadership is the same and they will misuse this if they get it again. When he had the opportunity to use it the last time. He instead wasted it and has ensured the state is more addicted to loans. That is why he hopes someone else can bail him out. While his paying ghosts, fake tenders and whatnot.

So, the IMF and World Bank should know this, but they are maybe more afraid of their image, than the result of letting go of some funds. These funds will not help anyone directly out. Only ensure the President longer life in office. This will not help the ones in need. Than he would have already ensured that. Instead his continuing this ballad and serenading the international community. While he hopes that no one knows history.

He has failed the last debt-relief and misused his chance. That is why his continued to grow the debt, addicted to grants and not created a space for more development. Unless, they give the President some handshakes at the State House. This is the way it goes.

The President of the Republic has had all the time since 1986 and we are still here. There are still opposition Members of Parliament who are tortured, there are still lack of free space and militarization of politics. That has never changed, but he hopes nobody notice. That is why he hopes he can pimp the International Community another time. He already did the trick and hope he can get them buzzed by a few buzzwords.

I know for some this is a moment of nostalgia, but for some its deja vu’. We have been here before and we shouldn’t need to repeat the same bad tune, again and again. However, I expect nobody to listen to me. Peace.

African Union: Communique of the Bureau of the African Union (AU) Executive Council Teleconferance Meeting held on Thursday, 9 April 2020 (09.04.2020)

African Union: Communique of the African Union (AU) Bureau of Heads of State and Government Teleconference Meeting held on 3 April 2020 (03.04.2020)

 

African Union (AU): Communiqué of the Bureau of the Assembly of the African Union Heads of State and Government Teleconference on COVID-19, Held on 26 March 2020 (26.03.2020)

Zimbabwe: Ministry of Health and Child Care – Coronavirus (COVID-19) Update (25.03.2020)

Zimbabwe Nurses Association: ZNA Position on Corona Virus (25.03.2020)

Zimbabwe: Press Statement by the Chief Secretary to the President and Cabinet on the Appointment of Chief Executive Officer of Zimbabwe Investment and Development Agency (ZIDA) – (24.03.2020)