Monthly Archives: August 2012

Latest Developments, August 3

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In the latest news and analysis…

0.7% rethink
The European Centre for Development Policy Management’s Niels Keijzer questions the continued relevance of the decades-old (though largely unmet) commitment made by wealthy countries to devote 0.7 percent of their GDP to foreign aid:

“Measuring development efforts in a ‘post-0.7 world’ may therefore need a much stronger focus on actions in policy areas beyond aid; a reporting system would check how far donors promoted development other than by giving development assistance. This requires monitoring national policies and international policy positions on issues such as visa facilitation, banking secrecy, arms export, agricultural subsidies, fisheries and renewable energy.
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The focus on ‘proving’ the effectiveness of ODA in splendid isolation – ie ‘value for money’ – continues. But is it now time to move away from it?”

Assault on Mother Earth
Nnimmo’s Reflections reports that a court in Ecuador has agreed to hear a suit against oil-giant BP on the grounds that the 2010 Gulf of Mexico spill may have amounted to a violation of the rights of nature, as enshrined in the Ecuadorian constitution:

“In the suit the plaintiffs demand, among other things, actions on release of information, restoration, compensation and a guarantee of non-recurrence. With regard to compensation, the demands are that ‘British Petroleum be ordered to commit to leaving untapped an equivalent amount of oil to the oil spilled in the Gulf’. Secondly, that ‘British Petroleum be ordered to redirect investment earmarked for further exploration towards strategies aimed a leaving oil underground as a more effective mechanism for compensating nature for the current impact on its climate cycles due to oil production.’ ”

Delta fiasco
Amnesty International and the Centre for Environment, Human Rights and Development have released a statement condemning the investigation process into oil spills in the Niger Delta:

“ ‘The investigation process into oil spills in the Niger Delta is a fiasco. There is more investment in public relations messaging than in facing up to the fact that much of the oil infrastructure is old, poorly maintained and prone to leaks – some of them devastating in terms of their human rights impact,’ said Audrey Gaughran, Director of Global Issues at Amnesty International.
‘No matter what evidence is presented to Shell about oil spills, they constantly hide behind the “sabotage” excuse and dodge their responsibility for massive pollution that is due to their failure to properly maintain their infrastructure and make it safe, and to properly clean up oil spills.’ ”

Drones and democracy
The Bureau of Investigative Journalism reports that a top Pakistani diplomat believes US drone strikes are doing serious harm to his country:

“[High Commissioner to London, Wajid Shamsul Hasan] also claims that some factions of the US government still prefer to work with ‘just one man’ rather than a democratically-elected government, and accuses the US of ‘talking in miles’ when it comes to democracy but of ‘moving in inches.’
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‘What has been the whole outcome of these drone attacks is, that you have rather directly or indirectly contributed to destabilizing or undermining the democratic government. Because people really make fun of the democratic government – when you pass a resolution against drone attacks in the parliament, and nothing happens. The Americans don’t listen to you, and they continue to violate your territory.’
The army too risks being seen as impotent, he warns the United States.”

Strong words
The Citizen reports that former Tanzanian president Benjamin Mkapa has said EU Economic Partnership Agreements are “a poisoned chalice and must be rejected,” likening them to a second Scramble for Africa:

“He  said the country would lose more than $62.4 million a year from tariff elimination when the EPA is fully implemented. He said the zero rating of taxes on imports, as among the EPA conditions, would put the country’s future production at risk as it would allow more goods from the EU, thus killing local industries.
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‘Unlike the Berlin Conference of 1884/85, which Balkanised Africa among 13 European powers as a guaranteed source of raw materials and market, the current contraption under EPA is the modern day equivalent of the Berlin Conference,’ said Mr Mkapa. ”

Saying no to REDD+
Inter Press Service reports that civil society groups in El Salvador are asking the World Bank to reject their government’s proposal to join an international anti-deforestation scheme they believe is bad for the environment:

“They argue that, beyond the praiseworthy aim of preserving forests in developing countries, the mechanism does nothing to enforce reduction of greenhouse gas emissions by the industrialised countries that are the prime causes of the pollution.
‘This is perverse logic on the part of sectors emitting the most greenhouse gases, like industry, energy generation and transport, which produce 60 percent of all emissions and are seeking to avoid responsibility,’ said Ivette Aguilar, an expert on climate change.
‘Rich countries do not want to change their consumption patterns,’ she told IPS.”

SEC scolded
US Senators Dick Lugar and Benjamin Cardin say there is “no excuse” for the Securities and Exchange Commission’s delays in implementing legislation that would require US-listed extractive companies to disclose all payments made to foreign governments:

“Our offices consulted with the SEC before we drafted the legislation and — at the agency’s urging — we gave it leeway to write the specific reporting rules within the confines of the law after consulting with industry, investor groups, the public, and other interested parties. The April 2011, deadline has passed. We have called for an investigation into the SEC’s failure to follow the clear letter of the law.
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With a Commission vote not scheduled until late August, the lengthy delay has raised fears that the SEC may dilute the regulation, either by granting a broad exemption to countries that don’t want the public to know the sums they receive, or by limiting the specifics of the payments disclosed. The law is clear on both points: no exemptions, and project by project reporting. We urge the commission: follow the law and issue the rule.”

Fallujah fallout
Al Jazeera asks if the US is coming clean about its use of unconventional weapons in Fallujah in 2004 and the “possible link” with the Iraqi city’s high number of birth defects:

“ ‘Some kind of dust or material, whether it’s uranium, whether it’s some chemical we don’t know, must’ve got into the air, must’ve got into people’s bodies and into their food and their water … there are traces, most of the material are inside the individual parents,’ [according to weapons researcher Dai Williams].”

Latest Developments, August 2

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USA for Africa
In a speech delivered in the Senegalese capital Dakar, US Secretary of State Hillary Clinton sought to portray her country as force for good in Africa, even if “in the past our policies did not always line up with our principles”:

“We’re also working with resource-rich nations to help make sure that their mineral and energy wealth actually improves the lives of their citizens. The days of having outsiders come and extract the wealth of Africa for themselves leaving nothing or very little behind should be over in the 21st century.
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We want to advance your aspirations and our shared values. We want to help more people in more places live up to their own God-given potentials. We want this to be our mutual mission. That is the work we are called to do in the 21st century.”

Top-down agenda
The Guardian reports that not everyone is happy with the makeup of the UN panel tasked with preparing a “bold yet practical” global development agenda beyond 2015:

“John Hilary from War on Want, the anti-poverty group, criticised the panel for being unrepresentative. ‘Ban Ki-moon has put together a panel of career diplomats, business leaders, politicians and professors,’ said Hilary, who strongly criticized the appointment of Cameron as co-chair. ‘Why is there no one at all from social movements, trade unions or people who are actually engaged in the struggle against poverty? Was there genuinely no room for a single representative from civil society? This is like having a panel to take forward women’s empowerment composed entirely of men.’ ”

Oil shutdown
Al Jazeera reports that a Brazilian court has given oil giant Chevron and drilling company Transocean 30 days to suspend their operations in the country:

“The court said in a statement posted on Wednesday on its website that each company will be fined 500 million reals, or about $244m, for each day they fail to comply with the suspension.
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‘Two environmental accidents in the space of just four months and the lack of equipment needed to identify the origin of the leaks and contain them, shows that the two companies do not have the conditions necessary to operate the wells in an environmentally safe manner,’ Judge Ricardo Perlingeiro said in his ruling.”

FTT baby steps
The Nicolas Hulot Foundation’s Nicolas Hulot and Oxfam’s Luc Lamprière call for the right kind of precedent to be set by France’s new financial transaction tax which, they say, offers a mere hint of what a “real tax on transactions” could look like:

“If an extreme weather event causes, on average, 23 deaths in a rich country, that number is 1,052 in less developed countries. Even in the face of nature’s fury, the injustice of poverty divides humanity.
If the goal of containing our deficits is laudable, necessary even, we must not create a choice between two debts: the one owed to financial players who are now betting on the euro’s failure, and the one we have been accumulating for centuries in the countries of the South by pillaging their resources, ignoring the pandemics they face and provoking climate change that hits the poorest hardest.” [Translated from the French.]

Crop Shock
The World Development Movement’s Amy Horton presents the latest surge in cereal prices as evidence that the global food system needs urgent reform to reduce the damage caused by biofuels and financial speculation:

“The researchers [at the New England Complex Systems Institute] point out that efforts to reform the markets have been too slow, with US regulators facing a legal challenge from Wall Street and European regulation also delayed. Consequently, measures that might have limited the effect of speculators have not yet been implemented.
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But power to deliver many of the necessary reforms – not least reform of the global trade system – lies with developed nations. Without a radical change of approach to our food system, including regulation to prevent financial speculators gambling on food prices, the world’s poorest people will continue to pay the highest price.”

Reconstruction business
CNNMoney reports that bakery-café chain Cinnabon has become the first US franchise in Libya, as American business interests expand in the rebuilding country:

“American business interest in Libya is growing, said Chuck Dittrich, executive director of the U.S.-Libya Business Association, a trade group representing American companies that are interested in doing business in Libya.
In April, the trade group led a delegation of 20 American companies to Libya to discuss business opportunities.
Much of the interest is coming from the energy, infrastructure and health care industries, Dittrich said. But American franchises are also taking note of Libya.”

Blocking Braille
The Guardian reports that the US and EU are blocking a treaty that would give blind people access to more books translated into Braille:

“Europe and the US are home to some of the world’s biggest publishing companies, many of which don’t like the idea of an international treaty that would restrict their intellectual property rights. Observers speculate that the Obama administration may be loth to upset the publishing industry, a major campaign supporter, this late in an election year. ‘What we can see in the [negotiating] room is that primarily it’s the business interests that dominate,’ said [Electronic Information for Libraries’ Teresa] Hackett.
Activists are hoping for a legally binding treaty, but US and European delegates have been pushing for a softer ‘instrument’ that would offer only guidelines and recommendations.”

Water rights
Inter Press Service reports that two years on from the UN General Assembly’s recognition of the human right to water, a coalition of NGOs is saying much work remains to be done if the resolution is to become a reality:

“The resolution in the General Assembly proved politically divisive, with 122 countries voting for it and 41 abstaining, but with no negative votes.
The United States abstained and so did some of the European and industrialised countries, including Britain, Australia, Austria, Canada, Greece, Sweden, Japan, Israel, South Korea, Luxembourg, the Netherlands, Denmark, and Ireland.
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In its letter, the NGO coalition said the recently concluded Rio+20 summit on sustainable development affirmed ‘full and unquestioned consensus among UN Member States regarding the human right to water and sanitation’.”

Latest Developments, August 1

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ATT postponed
Inter Press Service reports that six years of preparatory meetings were not enough for the US, China and Russia, as they requested “more time” in the quest for an international accord on regulating the global arms trade:

“The ‘killed’ Arms Trade Treaty is now to be referred to the U.N. General Assembly’s First Committee in October, where it will be submitted to a majority vote.
The process will take a long time, [Amnesty International’s Alberto] Estevez warns.
‘It might well take two to three years at least, and that would mean that the ATT would not enter into force until 2014 or 2015,’ he told IPS.
‘A key question remains whether the largest exporter of arms – the U.S. – wants to be part of the game,’ Estevez added.”

The future of development
Agence France-Presse reports that UN Secretary General Ban Ki-moon has named the 26 members of a panel established to recommend a “new development vision” to replace the Millennium Development Goals after 2015:

“Ban on Tuesday named personalities ranging from Queen Rania of Jordan and German former president Horst Kohler to Tawakel Karman, the 2011 Nobel Peace Prize winner for her activism in the uprising in Yemen, and the mayor of Istanbul Kadir Topbas.
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The corporate world is represented by Paul Polman, the Dutch chief executive of Unilever and Betty Maina, chief executive of Kenya’s Association of Manufacturers.”

Robin des Bois
Sky News reports that France is today becoming the first EU country to introduce a financial transaction tax:

“It was first proposed by the former French President Nicolas Sarkozy who suggested a 0.1% levy on all share purchases involving France’s biggest companies.
The country’s new leader, Francois Hollande, has been sharply critical of the financial services industry and decided to double the tax to 0.2%, while applying it to all publicly traded businesses with a market value over 1bn euros.
That means anyone buying shares, including credit default swaps, in 109 companies will have to shell out the extra euros to the French Treasury.”

Security focus
Reuters reports that, while US Secretary of State Hillary Clinton is expected to talk publicly about democracy and economic potential during her trip to Africa this week, her real concern will be security:

“Instead, attention has focused on AFRICOM, the unified U.S. Africa Command that the Pentagon established in 2007. It is playing an increasingly important role as the United States pumps resources into training African militaries.
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J. Peter Pham, director of the Africa program at the Atlantic Council, said Washington’s emphasis on security, coupled with the lack of new economic initiatives, had shifted the balance in U.S. ties with Africa.
‘It is militarization by default,’ Pham said. ‘Part of the reason is the U.S. interest in fighting al Qaeda, and part of it is because of the weakness of our African partners which are unable to contain these threats themselves.’ ”

Looting Africa
The UN Economic Commission for Africa reports on a new study that accuses foreign multinationals of illicitly transferring back to rich countries most of the $1.5 trillion they make in Africa each year, thereby “draining hard currency reserves from the continent, stimulating inflation, reducing tax collection and deepening income gaps”:

“The report on Illicit Financial Flows from Africa: Scale and Developmental Challenges is adamant about the role of multinational corporations in what some call Africa’s greatest economic sabotage, because it ‘perpetuates Africa’s economic dependence on other regions’, it says.
It adds the depletion of investments and stifling of competition caused by these illicit transfers actually undermine trade and worsen the socio-economic fabric of poor communities in Africa, leading to shorter life expectancy due to limited spending in providing social services such as health care, according to the Information and Communication Service of ECA.”

DPAs
Compliance Week reports that the British government is looking into following the US lead on so-called deferred prosecution agreements, which “require corporate reforms and other penalties in exchange for holding off on pursuing a conviction”:

“The U.K. Ministry of Justice published a much-anticipated consultation paper recently on whether to adopt DPAs in an effort to fight corporate bribery and corruption without having to win a conviction in every case.
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The U.K.’s Solicitor General and Serious Fraud Office are firmly in support of adopting the use of DPAs in Britain. As the consultation paper points out, enforcement agencies often rely on companies to self-report wrongdoing due to a lack of tools and resources. Without the ability of prosecutors to offer a plea deal, however, companies have little incentive to self-report, especially if doing so may result in a criminal conviction.”

Ease of doing business
The Associated Press reports that “liberal company laws” make New Zealand an attractive place for shady business enterprises:

“Like those before him, [American fraudster and launderer Jeffery Lowrance] found that about $130 and a little online paperwork let him set up a shell company in New Zealand without stepping foot in the country or having any financial presence. He registered First Capital Savings & Loan to an Auckland address but ran his scheme from Panama.
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Some say New Zealand has yet to get serious about stopping abuse. Financial blog naked capitalism has repeatedly accused New Zealand of playing the equivalent of the arcade game ‘Whac-a-Mole’ by knocking down illegitimate operators as they pop up but not dealing with the systemic problems that give rise to the abuse.”

Haitian gold
Al Jazeera reports that with 15 percent of Haitian territory under license to North American mining companies or their partners, there are concerns over who will reap the benefits Haiti’s potential gold rush:

“Many Haitians we spoke to are divided on the issue. Some locals like Jean Igo, who has been unemployed for months, says he would welcome a job working in a mine. However, after he allowed a Canadian company to drill on his land he is now having second thoughts about doing business with foreigners.
‘I don’t trust doing business with them. They did not give us a good guarantee. They gave us a little cash but it was nothing. They promised they would give people jobs operating the machines and they did not fulfill any of their promises.’ ”