In the latest news and analysis…
Reuters reports that Jim Yong Kim has been chosen as the next World Bank president, thereby keeping alive the tradition that the US gets to decide who fills the position.
“The decision by the World Bank’s 25-member board was not unanimous, with emerging economies splitting their support. Brazil and South Africa backed [Nigerian Finance Minister Ngozi] Okonjo-Iweala, while three sources said China and India supported Kim.
Okonjo-Iweala congratulated Kim and said the competition had led to ‘important victories’ for developing nations, which have increasingly pushed for more say at both institutions.
Still, she said more effort was needed to end the ‘unfair tradition’ that ensured Washington’s dominance of the global development lender.”
The Canadian Press reports that Argentine President Cristina Fernandez has proposed a bill to nationalize an oil company currently controlled by a Spanish corporation.
“Fernandez said in an address to the country that the measure sent to congress on Monday is aimed at recovering the nation’s sovereignty over its hydrocarbon resources. She said the shares being expropriated will be split between the national and provincial governments.
The president complained that Argentina had a deficit of $3 billion last year as a net importer of gas and petroleum.”
Trinity College’s Vijay Prashad writes about the G-77’s resurgent feistiness in the context of the ongoing “crisis” that has engulfed the UN Conference on Trade and Development.
“[G-77 head Pisnau] Chanvitan’s statement complains that the G-77 has tried its best to be flexible with the negotiation, but ‘perhaps our constructiveness was viewed as weakness, and our accommodation viewed as capitulation’. The North has ‘regressed to behavior perhaps more appropriate to the founding days of UNCTAD, when Countries of the North felt they could dictate and marginalize developing countries from informed decision-making.’
Remarkably, Chanvitan noted that the preparatory conference has seen ‘behavior that seems to indicate a desire for the dawn of a new neo-colonialism’. Such language has not been heard from the G-77 in decades. ‘Perhaps, in our desire for consensus,’ Chanvitan notes, ‘we have accommodated too much and this good faith was misunderstood, and abused. Perhaps this should end now.’ ”
World Bank and water
Corporate Accountability International has released a new report criticizing the World Bank for promoting water privatization in poor countries.
“The report, Shutting the Spigot on Private Water: The case for the World Bank to divest, documents the failures of water privatization efforts. It states that ‘thirty-four percent of all private water contracts marketwide entered between 2000 and 2010 have failed or are in distress – four times the failure rates of comparable infrastructure projects in the electric and transportation sectors.’
Despite these failures, the World Banks is set to spend billions on privatization efforts. The ‘Bank’s private-sector arm is aiming to increase investments to $1 billion each year beginning in 2013,’ the group states.”
British tax avoidance
ActionAid’s Aida Kiangi criticizes proposed new UK laws that would make it even easier for British companies to get out of paying “their fair share of taxes in developing countries like Tanzania,” which are already feeling the effects of corporate tax avoidance.
“Research by ActionAid has revealed that 23 of the FTSE 100 firms now operate in Tanzania. Between them, these companies have 3,166 sister companies located in tax havens. Barclays has 174 companies registered in the Cayman Islands alone.
The sad fact is that both the Tanzanian and UK governments are encouraging damaging tax competition between countries. While this benefits big business, it means there isn’t sufficient revenue to invest in basic services and infrastructure. Tanzania has experienced strong growth rates over the last few years, but this simply hasn’t translated into improvements in the lives of the vast majority of Tanzanians.”
The Guardian’s Afua Hirsch writes that despite efforts to present Africa in a less condescending light, Western media outlets still give too little voice to African journalists.
“At the height of Liberia’s civil war in 2003, for example, as rebels surrounded the capital Monrovia and US troops were drafted in, Liberian journalists looked on from their shelled out offices as the complex conflict they had spent the past decade covering was scooped up by western reporters. In Mali, the same thing is happening now.
The result of the continuing tendency to ignore Africans is a lamentable lack of specialist African coverage in the world’s media. An academic debate about this problem has been thriving for some time. In the meantime, however, informed consumers of African news have adopted a more proactive approach, using social networking to vent with immediate effect.”
Morgan Stanley’s Ruchir Sharma argues that the commodity boom is a much darker bubble than its high-tech predecessor, but a bubble nonetheless.
“The hype has created a new industry that turns commodities into financial products that can be traded like stocks. Oil, wheat, and platinum used to be sold primarily as raw materials, and now they are sold largely as speculative investments. Copper is piling up in bonded warehouses not because the owners plan to use it to make wire, but because speculators are sitting on it, like gold, figuring that they can sell it one day for a huge profit. Daily trading in oil now dwarfs daily consumption of oil, running up prices. While rising prices for stocks–tech ones included–generally boost the economy, high prices for staples like oil impose unavoidable costs on businesses and consumers and act as a profound drag on the economy.”
In a Q&A with Africa is a Country, filmmaker Nuotama Frances Bodomo talks about space, place and globalization.
“I think we are used to ascribing human beings to sectioned portions of earth, giving them a place that is holistically and naturally theirs (the same way we are used to thinking that a person has a soul that cleanly lives in a body). But this understanding of home is culturally specific and has a history, which means that it changes and is changed over time. Something about a home-space feels obsolete nowadays. To organize ourselves in terms of nationality or homeland feels obsolete. But there is still a desire to have that. We haven’t quite made the paradigm shift. Something feels lost, but I can’t tell you what we have to replace it with.”