Denel and the South African Government: Profiting from the war on Iraq

Andy Clarno* argues that the SA government, through its armaments industry, is integrating itself

Within weeks, probably before this journal goes to print, the United States will rain down terror on the people of Iraq in a bid to establish control over the world’s oil resources, to provide a new lease on life for global capitalism, and – through a strategy of ‘shock and awe’ – to sow fear in people around the world who would dare to struggle against capitalist globalisation and US hegemony.

Different Perspectives

Over the last few months, millions of people around the world have joined together to voice their opposition to such a war. As in any coalition of forces, however, the anti-war movement is highly fractured. Perhaps the single most important division within this movement separates those who oppose the war on anti-imperialist grounds from those who work within the confines of empire. Throughout Europe, Latin America, and many other parts of the world, the networks that make up the anti-globalisation movement have been the motivating forces behind the anti-war movement. Likewise, in South Africa, the Anti-War Coalition has emerged from a grouping of social movements and political organisations that are actively resisting neo-liberalism and the effects of capitalist globalisation. It is founded upon a strictly anti- imperialist platform.

On the other hand, a wide range of organisations has articulated a stance that challenges the war without ‘confronting the empire’. Constituting the right-wing of the anti-war movement, these organizations include the governments of France and Russia, elements of the Democratic party in the United States, as well as the African National Congress and the South African government. Their platform rests upon support for decisions taken by the United Nations Security Council, promotion of ‘multilateralism,’ and a blanket rejection of anti- capitalist/anti-imperialist analysis. In short, they call for upholding and reproducing the established global relations of power.

SA Government

Although the South African government has promoted an image of itself as actively opposing the war, its opposition is in fact quite limited. Rather than challenging the dominant world system, the South African government has consistently approached the war in a manner that will further integrate the South African bourgeoisie into the global capitalist economy. A high-ranking ANC representative has made it very clear that the ANC no longer considers the term ‘imperialism’ to be relevant. The problem that the world faces now, he argued, is US ‘unilateralism’. This is consistent with the South African government’s position that it must defend institutions of ‘multilateralism’ and will therefore support a war that has the backing of the UN Security Council.

In doing so, the government disregards the fact that sanctions imposed by the Security Council have led to the death of over 1.5 million Iraqis, ignores the blatantly undemocratic structure of the Security Council, and endorses the role of the Security Council as the forum for inter-imperialist decision-making. As long as the struggle between the US/UK and France/Russia continues, the South African government is forced to choose sides.

But if the imperialist powers are able to reach a compromise over the post-war distribution of Iraqi oil, the South African government will support the US, Britain, France, and Russia when they decimate Iraq and then plunder Iraqi resources.

Support for UK/US warships

In late January 2003, this willingness to work ‘within the system’ led the South African government to allow three United Kingdom (British) and United States’ warships to dock at Durban harbour for refuelling and repairs on their way to the Persian Gulf. Although these warships were carrying massive amounts of military equipment that will be used against the people of Iraq, the South African government did nothing to prevent, resist, or even object to their docking in Durban.

The South African armaments industry provides an even clearer picture of the government’s relationship to the forces of global capital.   Despite claims that it is opposed to the impending war, the South African government, through its control over a major arms manufacturer, is providing weapons to the UK and US militaries.

DENEL

Denel (Pty.) Ltd. is a state-owned arms manufacturer, under the authority of the Department of Public Enterprises. The Denel group is made up of three divisions: Aerospace, Ordinance, and Commercial. The Aerospace division consists of six subsidiaries, including Aviation (airplanes), Eloptro (visual systems), and Kentron (guided missiles and unmanned airplanes). The Ordinance division is made up of 8 subsidiaries that focus primarily on manufacturing artillery, ammunition, and propellants. The Commercial division is engaged in a range of non-military activities, from the production of soya products to land speculation and development.

Throughout the buildup to war, Denel has repeatedly signed contracts with UK and US militaries as part of its efforts to integrate itself into the global economy. According to Denel, its vision is “to be an acknowledged global player in aerospace and ordinance.” Almost 50% of Denel’s total sales are made up of exports and “the Company has set its sights on increasing its share in the global market. In order to achieve this goal, the strategy will be to continue with the current process of forming alliances and partnerships with manufacturers in Europe, UK and the United States of America.”

In pursuit of these policies, the various divisions of Denel have signed at least FIVE separate contracts with the UK and US militaries. Denel and the South African Government: Profiting   from the war on Iraq

• British armed forces are buying R225 million of shell-casings for small and medium calibre ammunition from PMP, a subsidiary of Denel’s Ordinance division.

• The United States Marines are buying 125 laser-guidance sights for artillery systems from Eloptro, a subsidiary of Denel Aerospace based in Kempton Park. The contract,       which is estimated to be worth $8,75 million, could be renewed and expanded.

• Somchem, a Denel subsidiary located near Cape Town, is providing the UK with artillery propellants worth £100 million (about R1,3 bil- lion).

• The UK Ministry of Defence has purchased 226 hand-held laser rangefinders from Eloptro.

• Recently, the UK placed an order for 100 ad- ditional rangefinders from Eloptro.
• In addition, Denel is manufacturing air- craft parts for Boeing, one of the main military contractors in the US and one of the primary beneficiaries of wars waged by         the US military

War & Capitalist Crisis

War generates massive consumption of weaponry and increased investment in the production and sale of armaments. For this reason, war always constitutes a key element in the capitalist strategy to overcome a crisis of over-accumulation. Currently, the US accounts for nearly half of the global $850 billion a year spent on military budgets. The proposed US budget for 2004 will increase military spending to nearly $500 billion. By destroying stock and promoting investment, the US and its allies are hoping to reinvigorate a capitalist system that has stalled. The South African government and Denel do not want to be left out of what they perceive to be a golden opportunity. They have made a strategic decision to profit from the war and to benefit from the efforts by the UK and the US to use the arms industry as the springboard for capitalist recovery.

Anti-War Coalition

The Anti-War Coalition has condemned this position and called on the South African government and Denel to immediately cancel all military contracts with the US and UK. However, the Government remains uncompromising in its efforts to integrate South Africa into the global capitalist economy – through privatising state- owned companies, contracting with US and European corporations, and promoting policies such as GEAR and NEPAD. In fact, the government is currently hoping to privatize at least a minority share in Denel’s Aerospace division. This commitment to neo-liberal capitalism prevents the government from taking a principled stance against imperialism and war. By participating in the contemptible practice of profiting from the war, the South African government has not only refused to challenge imperialism – it has in fact become complicit and is establishing its position clearly within the global capitalist empire.

Andy Clarno is an activist in the Anti-War Coalition and the Palestinian Solidarity Committee