Latest Developments, October 12

In the latest news and analysis…

Hunting W
Amnesty International is calling on Canada to arrest former US president George W. Bush when he visits the country next week.
“Canada is required by its international obligations to arrest and prosecute former President Bush given his responsibility for crimes under international law including torture,” according to AI’s Susan Lee.
“As the US authorities have, so far, failed to bring former President Bush to justice, the international community must step in.  A failure by Canada to take action during his visit would violate the UN Convention against Torture and demonstrate contempt for fundamental human rights.”

Enforcing neutrality
The Associated Press reports the Swiss government has proposed a new law that would impose a number of restrictions on private security companies based in the country, including preventing them from taking part in foreign conflicts.
“The bill was prompted by the decision of Aegis, one of the world’s biggest private security contractors, to set up a Swiss holding company in 2010. Such holding companies are explicitly included in the proposal, meaning Aegis would have to report its activities to Swiss authorities if the bill is passed.”

A prescription for helping Africa
The UN News Centre reports Deputy Secretary-General Asha-Rose Migiro believes that although aid is still important for Africa, the continent’s needs also include improved market access for its exports, affordable access to foreign technologies and “more policy space” for its countries to chart their own paths.
“‘However, what Africa needs most, is to be recognized as a new investment frontier – where the returns are among the highest in the world,’ she said, noting that the continent has some of the largest known reserves of mineral resources including diamonds and gold; growing oil potential as Ghana and Uganda join the list of exporters; and the largest amount of unexploited arable land, a strategic asset in a world where food crises are becoming recurrent.

The dangers of foreign capital
On the other hand, the UN Development Programme’s Selim Jahan argues that both rich and poor countries must do more to reduce the latter’s over-reliance on foreign capital in order to reduce their vulnerability to global economic shocks.
“For instance, countries can reduce their dependency on exports by recalibrating growth strategies away from a narrow range of exports and by boosting demand from domestic sources. The international community can help reduce the susceptibility of developing countries to volatile commodity prices with the development of new international commodity agreements or funds to compensate countries for the loss in income due to falling prices.”

A call for decency, if not fairness
ECONorthwest’s Ann Hollingshead resists the temptation to project her cause – global tax reform – onto the Occupy Wall Street protestors, arguing instead that they stand for something far more fundamental: decency.
“The Occupy Wall Street movement doesn’t have pithy slogans, quick sayings, or easy solutions because it isn’t about any one problem. It isn’t about offshore finance, or bailouts, or CEO pay, or tax evasion. All of these events are the symptoms of an underlying problem—the status quo. It is a status quo that allows 25% of the FTSE 100′s subsidiaries to lie in tax havens. The status quo that allows the same person to hold both positions of CEO and president of the board. That allows Warren Buffet to pay a lower tax rate than his secretary. And that allows the average American to earn 1/10,800th of the average Forbes 400 earner.”

A very low bar
The Overseas Development Institute’s Jonathan Glennie suggests, given “the west has systematically ruined Haiti’s chances of emerging from destitution,” it might be time for traditional donors to “humbly walk away” and see if other nations can do more good for a devastated country that is still in need of assistance.
“Not that there is any space for naivety about south-south solidarity. Big brothers such as Brazil, Argentina and Venezuela may well engage in the right kind of rhetoric, but there are internal pressures in these countries to act in their own interests rather than Haiti’s – especially on agricultural issues – just as the west has always done. After all, Brazil instigated Minustah in its attempt to look important enough for a permanent security council seat, although it quickly became a Washington-directed intervention. It is not, then, geography that matters, but politics and attitude.
Nevertheless, these countries have also suffered exploitation at various points in their history. They are therefore more likely to understand what is going on and less likely to engage in it. Will they do any better? They can hardly do any worse.”

Afghan minerals
Global Witness’s Eleanor Nichol calls for cautious planning regarding Afghanistan’s huge mineral wealth which has the potential to lift the country’s people out of poverty and end its dependence on foreign aid or could become “a fresh axis of conflict and instability.”
“This means embedding clear processes for the award of extractive concessions; requiring extractive companies to disclose revenue paid to the state on a project-by-project basis; setting up sound legal, regulatory and contractual frameworks that safeguard social, environmental and human rights; publishing beneficial ownership details of companies engaged in the sector; and ensuring Afghans are consulted on, and can monitor, mining activities.”

Paying taxes for selfish reasons
The European Network on Debt and Development’s Alex Marriage argues it is actually in the best interests of transnational companies to integrate tax policy into their approach to corporate social responsibility.
“Research has shown that direct investors in low income countries tend to value political stability, the rule of law and human capital more than effective tax rates when deciding whether to invest. Sufficient, predictable tax revenue is needed to foster all of these conditions. High public investment is something companies need but some are not prepared to pay for.”

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