Category Archives: Latest Developments

A daily summary of news and analysis pertaining to global inequality.

Latest Developments, January 9

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In the latest news and analysis…

UN drones
Inner City Press reports that Rwanda is “far from the only member” of the UN Security Council raising questions about the proposed use of surveillance drones by the UN in eastern DR Congo:

“Tuesday, sources exclusively tell Inner City Press, not only Russia (through co-Deputy Permanent Representative Petr Iliichev) and China but also Azerbaijan and Guatemala, both through their Permanent Representatives, expressed concern about [Department of Peacekeeping Operations chief Hervé] Ladsous’ proposed used of drones.
The concerns ranged from the control of information — that is, who would get it — to compliance with International Civil Aviation Organization rules. And, as Inner City Press first reported, concerns were again expressed about the tender process.”

Torture settlement
The Associated Press reports that a US defense contractor has paid $5.28 million to former inmates of Iraq’s Abu Ghraib prison over torture allegations:

“The settlement in the case involving Engility Holdings Inc. of Chantilly, Va., marks the first successful effort by lawyers for former prisoners at Abu Ghraib and other detention centers to collect money from a U.S. defense contractor in lawsuits alleging torture. Another contractor, CACI, is expected to go to trial over similar allegations this summer.
The payments were disclosed in a document that Engility filed with the Securities and Exchange Commission two months ago but which has gone essentially unnoticed.”

Not onboard
The Toronto Star reports that Canada’s prime minister, Stephen Harper, told the president of the African Union and Benin his government “is not considering a direct Canadian military mission” in Mali, but he did take care of some business with Benin:

“There has been speculation that Canada is laying the groundwork for a military foray into Mali and Defence Minister Peter MacKay raised eyebrows last week when he said Canada might send military trainers.
But Foreign Affairs Minister John Baird’s officials have played down the possibility of an armed mission to Mali.
…
After meeting with [AU and Benin president Thomas Boni] Yayi, Harper announced Canada and Benin have signed a foreign investor protection agreement and that Ottawa will provide $18.2 million over eight years to support improvements in Benin’s public administration.”

Small club
Inter Press Service reports that the US is under renewed pressure from civil society for being one of only seven countries yet to ratify the UN Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW):

“So far, 187 out of 194 countries have ratified CEDAW, but the non-ratifiers include Iran, Sudan, South Sudan, Somalia, Palau, Tonga and the United States.
…
The U.N. General Assembly adopted CEDAW back in 1979. The treaty consists of a preamble and 30 articles, which according to the United Nations, ‘defines what constitutes discrimination against women and sets up an agenda for national action to end such discrimination.’
And countries that have ratified CEDAW are legally bound to put its provisions into practice.”

Aid control
The Canadian Press reports that Haiti’s prime minister, Laurent Lamothe, has said he wants to have more say over how Canadian aid to his country gets spent:

“ ‘For any future co-operation, when it’s decided to resume, we will ask the Canadian government to focus on the priorities of the Haitian government,’ he said by telephone after meeting with Canada’s ambassador to Haiti in the capital of Port-au-Prince.
‘Basically, the development assistance, because of the perceived weakness of Haitian institutions, was routed directly to NGOs (non-government organizations) and Canadian firms…
‘That weakened our institutions.’
…
Lamothe insists his government’s hands are tied when it comes to development programs because it doesn’t receive any of CIDA’s aid. He wants Canada — and other donor countries — to work together to find a way to involve Haiti’s institutions in the process.”

The business of closing borders
Inter Press Service reports that security and weapons companies stand to make big bucks from the EU’s tougher stance on immigration:

“Thirteen companies and consortiums (Israel Aerospace Industries, Lockheed Martin, FAST Protect AG, L-3 Communications, FLIR Systems, SCOTTY Group Austria, Diamond Airborne Sensing, Inmarsat, Thales, AeroVision, AeroVironment, Altus, BlueBird) demonstrated technological solutions for maritime surveillance.
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The demonstrations are part of the preparation for the launch of EUROSUR, the European External Border Surveillance System meant to enhance cooperation between border control agencies of EU member states and to promote surveillance of EU’s external borders by [EU border agency] Frontex, with a particular focus on the Mediterranean and North Africa, in view of controlling migration to Europe.
Surveillance plans envisage the possibility of using drones to spot migrant boats trying to cross the Mediterranean.”

Hijacking the climate
The Guardian reports that the World Economic Forum has warned geoengineering aimed at preventing global warming could do more harm than good:

“ ‘The global climate could, in effect, be hijacked. For example, an island state threatened with rising sea levels may decide they have nothing to lose, or a well-funded individual with good intentions may take matters into their own hands,’ the report notes. It said there are ‘signs that this is already starting to occur’, highlighting the case of a story broken by the Guardian involving the dumping of 100 tonnes of iron sulphate off the Canadian coast in 2012, in a bid to spawn plankton and capture carbon.”

Big picture
Columbia University’s Joseph Stiglitz argues it is dangerous for the global community to focus on immediate economic issues to the exclusion of long-term problems:

“An economic and political system that does not deliver for most citizens is one that is not sustainable in the long run. Eventually, faith in democracy and the market economy will erode, and the legitimacy of existing institutions and arrangements will be called into question.
The good news is that the gap between the emerging and advanced countries has narrowed greatly in the last three decades. Nonetheless, hundreds of millions of people remain in poverty, and there has been only a little progress in reducing the gap between the least developed countries and the rest.
Here, unfair trade agreements – including the persistence of unjustifiable agricultural subsidies, which depress the prices upon which the income of many of the poorest depend – have played a role. The developed countries have not lived up to their promise in Doha in November 2001 to create a pro-development trade regime, or to their pledge at the G-8 summit in Gleneagles in 2005 to provide significantly more assistance to the poorest countries.”

Latest Developments, January 8

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In the latest news and analysis…

Cabinet pick
The Washington Post’s Greg Sargent writes that US President Barack Obama’s nomination of drone czar John Brennan as the new head of the CIA presents an opportunity for the country (and the world) to move beyond “gray wars with gray rules”:

“What if Senators use his confirmation hearings to force a public debate about the legality and transparency of Obama’s drone strike program and the need for meaningful Congressional oversight of the program? The hearings could also initiate a conversation about the legacy of Bush era torture, other aspects of the Bush war on terror, and the areas of continuity between the two administrations on civil liberties issues.
…
‘We absolutely should have this debate,’ Steve Clemons, a foreign policy expert at the New America Foundation, tells me. ‘We still live with the legacy of the world that Dick Cheney and George Bush built — one that is not internationally sanctioned. One of the ways Obama and Brennan can restore America’s global leverage is to help lay out a blueprint for a new global social contract for a world with wars like those of today.’ ”

Development profiteering
The Guardian reports on calls for the World Bank, the British government and private investors to return “excessive” profits from a smelting project in Mozambique that uses 45% of the country’s electricity:

“The report calculates that foreign investors, governments and development banks have received an average of $320m (£199m) a year from the smelter, in contrast to the Mozambique government’s $15m. In other words, for every $1 paid to the Mozambique government, $21 has left the country in profit or interest to foreign governments and investors.
…
To attract foreign investors, the Mozambique government exempted Mozal from taxes on profit and VAT, levying only a 1% turnover tax, while allowing all profit from the smelter to be taken offshore. BHP Billiton, the mining group, owns 47% of Mozal, while Japan’s Mitsubishi owns 25%. The other two equity investors are the Industrial Development Corporation of South Africa (24%) and the government of Mozambique (4%).”

Strange catch
Agence France-Presse reports that fisherman have retrieved a crashed US drone in the waters off the central Philippines:

“In an interview with AFP last year, President Benigno Aquino confirmed that the Philippines has been allowing US drones to overfly its territory for reconnaissance flights, but were not allowed to make strikes.
About 600 US forces have been rotating in the southern Philippines since 2002 as part of the US government’s global war on terror.
However the drone was found in Masbate, many hundreds of kilometres from the Muslim insurgency-racked areas where no US troops are known to operate.
Masbate is one of the areas where communists waging a decades-long rebellion have long operated.”

Not this time?
Reuters reports that although the Central African Republic has experienced the “most frequent and blatant French military interference” in post-independence Africa, France insists it will not take sides in the country’s latest conflict:

“Despite appeals by [CAR President Francois] Bozize to ‘our cousins’ Paris and Washington for help, France said its several hundred troops in its landlocked former colony were there solely to protect French nationals and interests and not the local government.
‘This time the message was very clear, that “we are not here to save the regime”,’ said Thierry Vircoulon, Central Africa project director for International Crisis Group.”

Opaque investments
Johns Hopkins University’s Deborah Brautigam argues America’s foreign direct investment in Africa must become more transparent:

“At least as posted on the website of the OECD’s statistics bureau, the US claimed that 2010 FDI data by US companies in twelve African countries (almost all resource-rich) was ‘confidential’. What’s more, in 2010 the second most popular destination for US FDI flows to Africa was … Mauritius (a tax haven) where US firms sent $1860 million.”

Breach of trust
George Washington University’s Lynn Goldman and Johns Hopkins University’s Michael Klag argue the US must take steps to atone for its role in precipitating the lethal violence that has been unleashed against polio vaccine providers in Pakistan:

“A massive vaccination effort like this one requires a bond of public trust, one that was broken by the CIA. The U.S. took the first step toward repairing the atmosphere of mistrust by admitting to the sham vaccination effort. Now, the president and Congress must take the next step by erecting a firewall between public health programs, like the global polio initiative, and espionage or other covert operations conducted by the CIA.
They should follow action taken by former Peace Corps director Sargent Shriver, who in 1961 won assurances from President John F. Kennedy that they would not infiltrate the ranks of the Corps. Shriver believed ties to the CIA could jeopardize the Peace Corps’ mission and put young volunteers at risk, especially in countries that were already suspicious of the program.”

Military throwback
The Sunday Times reports that a group of businessmen is assembling “Britain’s first private navy in almost two centuries” to take on piracy off Africa’s east coast:

“Its armed vessels – including a 10,000-ton mother ship and high-speed armoured patrol boats – will be led by a former Royal Navy commodore. He is recruiting 240 former marines and other sailors for the force.
…
The Britons intend to sail under a sovereign flag which will give them the legal right to carry their weaponry into harbour, rather than cache them on platforms in international waters.
[Simon] Murray is chairman of Glencore, one of the world’s largest commodities traders. He is backing the new force alongside other investors.”

Chain liability
Inter Press Service reports that Switzerland’s parliament is looking to tackle “wage dumping” by holding general contractors responsible for labour abuses committed by their subcontractors:

“The buck is passed around, and there are several victims: The workers don’t earn what they deserve, correctly employed labourers face pressure on their wages, and properly operating companies are confronted with unfair competition.
…
Swiss labour unions have demanded laws making general contractors legally accountable for misconduct by its subcontractors, so-called ‘chain liability’. General contractors are only freed from responsibility if they can show to have ensured that their subcontractors abide by the law.
The neo-liberal lobby along with the Swiss Employers’ Association has launched a much weaker counter-proposal. They want general contractors to be freed of any legal responsibility if their direct subcontractor simply signs a contract pledging to respect Swiss wage and labour conditions.”

Latest Developments, January 4

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Absurd rationale
Responding to the surprise statement by “rogue Canadian minister” Julian Fantino that Canada has frozen new aid to Haiti, former Associated Press Haiti correspondent Jonathan Katz offered the following flurry of tweets:

“Fantino is demonstrating how aid works: Rich country dictates terms. When the program fails, the poor country gets blamed. #Haiti #Canada
Canada disbursed $657 million from the quake to Sept. 2012 ‘for Haiti,’ but only about 2% went to the Haitian government.
It hasn’t told the UN Office of the Special envoy where 66% of its recovery funds went. Another $192.7 million is pledged and not disbursed.
Canada has, however, been better than most countries in delivering its 2010 donors conference pledge.
But when you give, say, $18.2 million to UNDP for Champ de Mars housing, and two years later there isn’t adequate housing, who’s to blame?
Some argue freezing aid would be a good start. But Fantino’s rationale–that Haitians owe Canadians results–is absurd on its face.
Again, admitting that aid isn’t working in Haiti is fine. It’s accurate.
… But saying, ‘Well, we did all we could. It’s their problem now,’ IS the problem.
If Canada’s govt didn’t bother to tell Haiti’s govt it was freezing aid–and the Haitians didn’t even notice–that’s all you need to know.”

Border arming
Russia Today reports that a group of US troops have arrived in Turkey, marking the start of NATO’s Patriot missile deployment along the Syrian border:

“The batteries will be operated by troops of their respective countries: The US and Germany are sending about 400 troops each, while the Netherlands will have around 360 soldiers manning their Patriot [surface-to-air missiles].
…
Critics of the Patriot deployment say that they can be used to create a no-fly zone in Syria, protecting rebels from government airstrikes. A NATO-imposed no-fly zone in Libya in 2011 eventually led to the downfall of the country’s longtime leader Muammar Gaddafi.”

Gitmo renewal
Human Rights Watch criticizes US President Barack Obama for refusing to veto a defense spending bill that blocks the closure of the Guantanamo Bay prison, even though he says the facility “weakens our national security”:

“However, he claimed the need to sign the legislation, saying the demand for funding was ‘too great to ignore.’ Obama issued a similar statement when signing the [National Defense Authorization Act] the previous year.
In fact, the NDAA authorizes funding for most Defense Department operations, but it is not essential for the US armed forces to function, Human Rights Watch said. It does not actually fund the Defense Department, but authorizes the allocation of appropriated funds. If Obama had vetoed the 2013 authorization act, last year’s NDAA authorization would still have been in effect. Four of five presidents preceding Obama vetoed a defense authorization act.”

Unwanted attention
Public Eye has announced Alstom, Coal India, G4S, Goldman Sachs, Lonmin, Repower and Shell as the 2013 nominees for the world’s worst company:

“Online voting for the worst offender of the year runs from today until midday January 23, 2013. This year’s shortlist features the seven most egregious cases of corporate crime selected by our newly conceived jury of internationally known business ethicists from 20 expert reports about potentially deserving candidates. The reports were compiled by the Institute for Business Ethics at the University of St. Gall. More than 50 NGOs from all over the globe nominated companies.”

Investment disagreement
The Toronto Star reports that Canadian First Nations groups have announced they plan to take the federal government to court, alleging a lack of consultation over a proposed investment agreement with China:

“The Harper government says [the Canada-China Foreign Investment Promotion and Protection Agreement] will benefit Canada by increasing two-way trade and investment with China, which will be the world’s largest economy within a decade. Most importantly, according to the Conservatives, the deal will help protect Canadian investors from unfair or discriminatory treatment in China.
But opponents say the guarantees of equal treatment in these types of treaties give foreign corporations undue power to sue Canadian governments at every level if environmental, safety or other regulations are seen as unfair by foreign investors. ”

Economic mirage
Development consultant Rick Rowden argues that despite all the breathless reports of Africa’s rapid economic rise, “increased growth and trade are not development”:

“Though African countries desperately need the policy space to adopt industrial policies, the rich countries are pushing loan conditions and trade and investment agreements that block them from doing so, all the while proffering a happy narrative about ‘the rise of Africa.’ The very idea of industrialization has been dropped from the official development agenda. Yet there’s a reason why we all regularly refer to the rich, industrialized countries in the OECD as ‘industrialized.’
Despite the important gains in services industries and per capita incomes, Africa is still not rising, and services alone will not create enough jobs to absorb the millions of unemployed youth in Africa’s growing urban areas. Instead, steps must be taken to revise WTO agreements and the many trade agreements and bilateral investment treaties currently being negotiated so that Africa has the freedom to adopt the industrial policies it needs in order to make genuine progress.”

Amazing mea culpa
The Washington Post’s Howard Schneider examines the admission by IMF chief economist Olivier Blanchard that the financial institution had not foreseen the impacts of the austerity measures it prescribed for Greece and other struggling European economies:

“But the paper includes some subtle and potentially troubling insights into how the fund works. Blanchard – effectively the top dog when it comes to economic science at the fund – writes in the paper that he could not actually determine what multipliers economists at the country level were using in their forecasts. The number was implicit in their forecasting models – a background assumption rather than a variable that needed to be fine-tuned based on national circumstances or peculiarities.
Heading into a crisis that nearly tore the euro zone apart, in other words, neither Blanchard or any one of the fund’s vast army of technicians thought to reexamine whether important assumptions about the region would still hold true in times of crisis.”

Latest Developments, January 3

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Condoning secrecy
Reuters reports that an American judge has ruled the US government does not have to justify its targeted killings:

“[U.S. District Judge Colleen] McMahon appeared reluctant to rule as she did, noting in her decision that disclosure could help the public understand the ‘vast and seemingly ever-growing exercise in which we have been engaged for well over a decade, at great cost in lives, treasure, and (at least in the minds of some) personal liberty.’
Nonetheless, she said the government was not obligated to turn over materials the Times had sought under the federal Freedom of Information Act (FOIA), even though it had such materials in its possession.
‘The Alice-in-Wonderland nature of this pronouncement is not lost on me,’ McMahon said in her 68-page decision.”

Drone stats
The News reports that Pakistani government statistics indicate US drone strikes have killed four times more children than “high value CIA targets” since 2004:

“According to facts and figures compiled by the Ministry of Interior, of the 2,670 people killed by the US drones, 487 were innocent civilians including 171 children and 43 women. Of the remaining 2,183 people killed by the drones, hardly 42 were high value CIA targets while the rest of 2,141 people were believed to be low and mid-level al-Qaeda and Taliban-linked operatives.”

Five-star development
A Pro Publica investigation concludes that the World Bank’s International Finance Corporation, ostensibly set up to help reduce global poverty through promotion of private investment in poor countries, “likes to work with huge corporations, funding projects these companies could finance themselves”:

“Today, the IFC’s booming list of business partners reads like a who’s who of giant multinational corporations: Dow Chemical, DuPont, Mitsubishi, Vodafone, and many more. It has funded fast-food chains like Domino’s Pizza in South Africa and Kentucky Fried Chicken in Jamaica. It invests in upscale shopping malls in Egypt, Ghana, the former Soviet republics, Eastern Europe, and Central Asia. It backs candy-shop chains in Argentina and Bangladesh; breweries with global beer behemoths like SABMiller and with other breweries in the Czech Republic, Laos, Romania, Russia, and Tanzania; and soft-drink distribution for the likes of Coca-Cola, PepsiCo, and their competitors in Cambodia, Ethiopia, Mali, Russia, South Sudan, Uzbekistan, and more.
The criticism of most such investments—from a broad array of academics and watchdog groups as well as local organizations in the poor countries themselves—is that they make little impact on poverty and could just as easily be undertaken without IFC subsidies. In some cases, critics contend, the projects hold back development and exacerbate poverty, not to mention subjecting affected countries to pollution and other ills.”

Bounty hunters
The BBC reports on the spam-like and mistake-prone methods of a private company hired by the British government to track down people thought to be in the UK illegally:

“Migrants are contacted by text message, telephone or email.
The standard text message reads: ‘Message from the UK Border Agency. You are required to leave the UK as you no longer have the right to remain.’ It then advises people to contact the agency.
…
Capita was hired to trace those in the pool and warn them that they are required to leave the country. The firm will be paid depending on how many actually go back to their home country.”

Let them eat cake
Bloomberg reports that “the richest people on the planet” became even wealthier in 2012:

“The aggregate net worth of the world’s top moguls stood at $1.9 trillion at the market close on Dec. 31, according to the index. Retail and telecommunications fortunes surged about 20 percent on average during the year. Of the 100 people who appeared on the final ranking of 2012, only 16 registered a net loss for the 12-month period.
‘Last year was a great one for the world’s billionaires,’ said John Catsimatidis, the billionaire owner of Red Apple Group Inc., in an e-mail written poolside on his BlackBerry in the Bahamas.”

Extermination risk
The Guardian reports that Peru’s “biggest indigenous federation” intends to look to the country’s courts to stop the expansion of natural gas extraction in a remote area of the Amazon by a consortium that includes US, Korean and Spanish companies:

“[The Interethnic Association for the Development of the Peruvian Rainforest (Aidesep)] said the plans by Peru’s energy and mines ministry to increase exploration and drilling in Block 88, the largest gasfield leased by the Camisea consortium, risk the existence of nomadic groups living in ‘voluntary isolation’ in the Nahua-Kupakagori indigenous reserve, 23% of which overlaps the gas block in the country’s south-eastern jungle.
…
The risks of ‘unwanted’ contact are well-documented. Around 60% of the isolated Nahua people died during a series of epidemics after their first contact with outsiders soon after oil company Shell discovered the gasfields in 1984.”

Banned exports
The Globe and Mail reports that the Canadian government has offered its arms merchants “new market opportunities” by allowing them to export to Colombia assault weapons banned in Canada:

“Now, Colombia has been added to a list that includes Canada’s 27 NATO allies – along with Australia, Finland, New Zealand, Saudi Arabia, Sweden and Botswana – where prohibited firearms manufactured in this country may be sold.
The government notice says the amendment is ‘consistent with the aim of the [Automatic Firearms Country Control List] to promote transparency in the export and transfer of prohibited firearms, prohibited weapons and prohibited devices by making public that Canada will now consider export permit applications for the export of those items to Colombia.’ ”

Humanitarian cover
Senegal/Mali-based journalist Peter Tinti writes that debates in Washington over the US approach to counterterrorism in Africa have more to do with “keeping policy frameworks apace with practice” than actually shaping that practice:

“Under the Obama administration, U.S. military operations in Africa have rapidly expanded in scope, depth and breadth, creating a skeletal infrastructure that enables a panoply of near-constant training exercises with partner governments — as well as clandestine activities.
Though Camp Lemmonier in Djibouti is technically the only permanent U.S. military base in Africa, in reality, there are hundreds of military outposts and locations dotting the continent, with several thousand uniformed U.S. military and civilian Department of Defense personnel, as well as an unknown number of defense contractors, working across the continent at any one time. U.S. special operations forces regularly work within civil-affairs and humanitarian assignments that provide cover for covert counterterrorism activities.”