Category Archives: Latest Developments

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

Latest Developments, October 16

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In the latest news and analysis…

Bad timing
Oxford University’s David Priestland argues the awarding of the Nobel peace prize to the European Union at this point in time is “distinctly odd”:

“The introduction of the euro changed the EU from an institution that used economic integration to promote peace to one that is sacrificing peace on the altar of free-market economics. Brussels is being rewarded for its pacific past at the very moment it is provoking civil strife.
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Nor did Europe’s eirenic outlook always extend beyond its borders. Individual countries have sometimes played a far from peaceful role in the world – especially the French and British meddling in their former empires. Europe’s protectionism has also damaged the interests of the developing world.”

Development by force
Human Rights Watch’s Jessica Evans criticizes the World Bank’s support for Ethiopia’s controversial “villagization” program:

“Once forcibly evicted and moved to the new villages, families are finding that the promised government services often do not exist, giving them less access to services than before the relocation. Dozens of farmers in Ethiopia’s Gambella region told us they are being moved from fertile areas where they survive on subsistence farming, to dry, arid areas. Ojod’s family farm was on the river, but as part of the villagization program, the government took his farm and forced his family to relocate to a dry area. There are reports that this fertile land is being leased to multinational companies for large-scale farms.
The villagization program is an Ethiopian government initiative, not one designed by the World Bank. But villagization appears to be the government’s way of implementing a certain World Bank project in five of Ethiopia’s eleven regions.”

Colonial legacy
Radio France Internationale reports that French President François Hollande has promised to hand over archives relating to a massacre of Senegalese troops fighting for France during World War II:

“ ‘The dark side of our history includes the bloody repression at the Thiaroye camp in 1944 which caused the death of 35 African soldiers who fought for France,’ Hollande told the Senegalese parliament.
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In a speech where he also paid homage to the victims of the slave trade, Hollande declared that the Françafrique policy, often criticised as neo-colonialist, is over.
‘There is France and there is Africa,’ he declared, adding that he was not going to give the Senegalese moral lectures, in an indirect reference to his predecessor Nicolas Sarkozy’s controversial speech in Dakar five years ago.”

Poisonous siege
The Independent reports on a new study linking the siege of Fallujah by Western forces during the Iraq War to the city’s “staggering rise” in birth defects:

“The latest study found that in Fallujah, more than half of all babies surveyed were born with a birth defect between 2007 and 2010. Before the siege, this figure was more like one in 10. Prior to the turn of the millennium, fewer than 2 per cent of babies were born with a defect. More than 45 per cent of all pregnancies surveyed ended in miscarriage in the two years after 2004, up from only 10 per cent before the bombing. Between 2007 and 2010, one in six of all pregnancies ended in miscarriage.”

Patent override
The Guardian reports that the Indonesian government has taken steps to allow seven “important” but patented medicines to be manufactured cheaply and locally:

“The biggest fights now are in India, where Big Pharma is battling to preserve its patents, arguing that India’s thriving generic companies will sell not just to the poor but to the whole world.
But what has happened in Indonesia is remarkable for its scale. It appears that the government of President Susilo Bambang Yudhoyono has decided to license the entire slate of medicines its population needs against HIV. It already had an order from 2007 for three older HIV drugs (efavirenz, lamivudine and nevirapine), but the new decree states specifically that this is ‘no longer sufficient’.
The drug patents belong to Merck, GSK, Bristol Myers Squibb, Abbott and Gilead.”

Tax hike
The New York Times reports that Mongolia is considering renegotiating the investment agreement it has with Anglo-Australian mining giant Rio Tinto regarding a $6 billion copper project:

“Last Monday, the caucus of Mongolia’s Democratic Party, which leads a coalition government in place since August, passed a budget proposal, which calls for a new sliding royalty on Oyu Tolgoi’s revenue that would rise to 20 percent depending on the copper price. The 2009 investment agreement set the royalty rate at 5 percent.
The new plan would also raise Oyu Tolgoi’s effective tax rate by eliminating income-tax allowances. The government would bring in 221.3 billion tugriks, or $160 million, from the royalty and 224.5 billion tugriks, or $163 million, from corporate income tax, according to estimates in the draft budget proposal.
This week, the plan is expected to reach Parliament, which will decide whether to adopt or modify the proposal.”

Paradigm shift
Intellectual Property Watch reports on a recent roundtable where one of the participants argued that global health justice will require “a body of hard and soft laws”:

“ ‘When I first entered global health, I thought global health was mostly about making rich countries devote resources to those who lack the capacity to do it,’ [Georgetown University’s Larry Gostin] said. This ‘is a northern view based upon guilt, but it is really the wrong view,’ he said.
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There are still residual international responsibilities, but they are based on a flawed idea of international development assistance for health, which is ‘very much charitable-based, with a benefactor and a recipient.’ It is not justice-based, he said, and lacks a sense of shared responsibility, adding, ‘We need to change this paradigm.’ ”

Food futures
The Observer’s Heather Stewart decries the lack of action by rich-country governments to rein in the price of food, which she says depends more on “all-but-irrelevant events in Brussels or Berlin” than on supply and demand:

“Any tougher crackdown – forcing greater transparency about who is betting on what, with whom, for example – looks highly likely to be scuppered by the same kind of concerted lobbying that sank proposals for regulating other derivatives markets in the years before the crisis.
In the US, for example, the Commodity Futures Trading Commission is facing a legal battle over its attempts to impose ‘position limits’, constraining the share of the market single investors can hold in a number of commodities, including corn and cocoa. The proposal was struck down by a court in Washington, in a case brought by several financial sector trade bodies – though the CFTC has not given up on introducing position limits in some form.”

Latest Developments, October 11

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Legal precedent
The BBC reports that four Nigerian plaintiffs are taking oil giant Shell to court in the Netherlands over alleged pollution:

“It is the first time a Dutch multinational is being put on trial in a civil court at home in connection with damage caused abroad.
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If the farmers’ case is successful it could set a legal precedent, paving the way for thousands of other compensation claims from those affected by oil spills, says the BBC’s Anna Holligan in The Hague.”

Accredited poachers
Reuters reports that “EU-approved vessels” account for the bulk of illegal fishing off Sierra Leone’s coast:

“The European Union has set up regulations to prevent vessels involved in so-called illegal, unreported and unregulated (IUU) fishing from accessing European markets.
An 18-month investigation conducted by the Environmental Justice Foundation (EJF), however, documented a long list of abuses including fishing inside exclusion zones, using banned equipment, and transhipping fish illegally at sea.
The majority of cases involved ships accredited to sell their seafood at EU ports.”

Fighting transparency
The Hill reports that US oil and business groups are suing to overturn new rules requiring the extractive industry to disclose payments made to foreign governments:

“The lawsuit, filed Wednesday with the U.S. District Court for the District of Columbia, escalates a battle between industry and human rights groups over controversial transparency rules required under the 2010 Dodd-Frank financial reform law.
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‘Secrecy around payments enables corrupt government officials and political elites to siphon off or misappropriate revenues for personal gain, rather than development. It has been said that ‘sunshine is the best disinfectant’ – this lawsuit begs the question, what are oil companies trying to hide?,’ said Jana Morgan, assistant policy adviser with Global Witness.”

Swiss arms
Swissinfo reports that Switzerland is adopting new rules aimed at preventing the re-export of “war material” to conflict zones after Swiss grenades sold to the United Arab Emirates were found in Syria:

“Buyers will have to declare that they will not export, sell, lend or donate the material, or pass it on in any other way to a third party abroad, without the agreement of the Swiss authorities.
Where there is seen to be a high risk of the material nevertheless being passed on to ‘undesirable’ end users, the relevant Swiss authorities can stipulate that they shall have the right to make ‘post shipment inspections’ on the spot.
Where large amounts of material is exported, the declaration is to take the form of a diplomatic note from the receiving country.”

Gloomy forecast
Maplecroft has released its Food Security Risk Index for 2013, according to which 75 percent of African countries are at high or extreme risk:

“ ‘Food price forecasts for 2013 provide a worrying picture,’ states Maplecroft’s Head of Maps and Indices Helen Hodge. ‘Although a food crisis has not emerged yet, there is potential for food related upheaval across the most vulnerable regions, including sub-Saharan Africa.’
A September report by Rabobank, a financial specialist in agro-commodities, estimates that prices of food staples could rise by as much as 15% by June 2013, resulting in record highs that will squeeze household incomes in many countries.”

Big loss
Bloomberg reports that the US Supreme Court has refused to intervene in a lawsuit that saw a judge in Ecuador impose a $19 billion fine on oil giant Chevron:

“Without commenting on the merits of the case, the U.S. Supreme Court today let stand a federal appeals court ruling that a New York trial judge exceeded his authority when he blocked a group of Ecuadorean farmers and Indians from seeking to collect the $19 billion award anywhere in the world.
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The justices’ action, although it doesn’t address the substance of the case, effectively eliminates one avenue for Chevron to avoid liability. The company has refused to pay the judgment in Ecuador. Since Chevron does not have any bank accounts or other assets in Ecuador, the plaintiffs have now filed separate collection actions seeking liens against Chevron assets in Brazil and Canada.”

Mass firings
CNN reports that mining company Gold One has fired 1,400 striking workers at a South African mine:

“It’s the latest twist in a wave of sometimes-violent labor unrest that has wracked South Africa’s mining sector — the country’s biggest industry — for nearly two months. Another company, Anglo-American Platinum, fired about 12,000 striking workers who declined to attend disciplinary hearings last week after a three-week walkout.”

Scramble for Burma
Focus on the Global South argues that the impending boom in foreign direct investment poses a threat to farming communities in Burma/Myanmar:

“Land grabs are now set to accelerate due to new government laws that are specifically designed to encourage foreign investments in land. The two new land laws (the Farmlands Law and the Vacant, Fallow and Virgin Land Law) establish a legal framework to reallocate so-called ‘wastelands’ to domestic and foreign private investors. Moreover, the Special Economic Zone (SEZ) Law and Foreign Investment Law that are being finalized, along with ASEAN-ADB regional infrastructure development plans, will provide new incentives and drivers for land grabbing and further compound the dispossession of local communities from their lands and resources. Land conflicts that are now emerging throughout the country will worsen as foreign companies, supported by foreign governments and International Financial Institutions (IFIs), rush in to profit from Burma/Myanmar’s political and economic transition period.”

Latest Developments, October 9

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Crimes of empire
The Guardian reports that a UK court ruling in favour of three Mau Mau veterans means the country’s government could face thousands of lawsuits over alleged torture “during the final days of the British empire”:

“The court on Friday rejected claims from the government’s lawyers that too much time had elapsed since the seven-year insurgency in the 1950s, and it was no longer possible to hold a fair trial. Last year the same high court judge, Mr Justice McCombe, rejected the government’s claim that the three claimants should be suing the Kenyan government as it had inherited Britain’s legal responsibilities on independence in 1963.
Human rights activists in Kenya estimate more than 5,000 of the 70,000-plus people detained by the British colonial authorities are still alive. Many may bring claims against the British government. The ruling may also make it possible for victims of colonial atrocities in other parts of the world to sue.”

Resource curse
The Guardian also reports that a new World Bank analysis suggests that poverty rates are declining faster in “countries without riches in the ground” than in their resource-rich counterparts:

“Some countries, such as Angola, Congo-Brazzaville and Gabon, have witnessed an increase in the percentage of the population living in extreme poverty.
The report confirms the common perception that, to a large extent, the benefits of growth have not reached the poorest segments of society. It raises questions for aid donors and African governments on how to deal with the ‘resource curse’, with strikes in South African mines providing a stark illustration of what is at stake.
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The report noted that oil-rich countries systematically perform worse than any other country groups in terms of voice and accountability, political stability, rule of law and the control of corruption.”

Supranational democracy
Using the example of the eurozone, Harvard University’s Dani Rodrik argues that globalization and democracy are not necessarily incompatible:

“But combining market integration with democracy requires the creation of supranational political institutions that are representative and accountable.
The conflict between democracy and globalization becomes acute when globalization restricts the domestic articulation of policy preferences without a compensating expansion of democratic space at the regional/global level. Europe is already on the wrong side of this boundary, as the political unrest in Spain and Greece indicates.
That is where my political trilemma begins to bite: We cannot have globalization, democracy, and national sovereignty simultaneously. We must choose two among the three.”

Half-finished business
The Associated Press reports that the US government is under fire for not cleaning up its own mess on a former Puerto Rican bombing range:

“An extensive cleanup of the eastern portion of Vieques is years from being finished, but the government says it is ready to declare work completed on a nearly 400-acre site on the western side that was used to store and detonate expired munitions.
The former storage site was turned over to the U.S. Interior Department and declared a nature reserve. Under a proposal favored by the Navy, the cleanup of the area would be deemed complete even though about 200 acres has not been cleared of munitions debris, some potentially still live.
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Navy officials say it would hurt the nature reserve by tearing up the dense vegetation to clear the remainder of the debris.”

Toothless watchdog
iPolitics reports that the Canadian government is keeping quiet over the fate of an office ostensibly set up to improve relations between Canada’s extractive industry and affected communities overseas:

“In the three years since she was appointed by the prime minister, [Extractive Sector Corporate Social Responsibility Counsellor Marketa] Evans has mediated three conflicts between Canadian mining companies and communities overseas.
Two have ended with the companies pulling out of the process before a resolution was reached. One ended because Evans found the community lacked information on avenues for mediation available to them through the company.
Critics say the voluntary nature of the office — a company must consent to mediation for a community’s complaints to be heard — render it effectively toothless.”

Killing the rial
The Wall Street Journal reports that the US and Europe are working together to “accelerate the recent plunge of Iran’s currency“:

“A nearly 40% drop in the Iranian rial’s value against the dollar since Sept. 24 has increased confidence in Washington and Brussels that Western sanctions are starting to significantly erode Tehran’s finances, senior U.S. and European officials said.
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Some member states still have concerns about taking steps that could disproportionately harm the Iranian population. There have been reports of food and medicine shortages in Iran in recent days, fueled by the weakening of the rial and dwindling imports.”

Letting them starve
In a Q&A translated by Africa is a Country, former UN official Jean Ziegler discusses rich-world inhabitants’ complicity in global hunger, which he describes as “mass murder“:

“We allow multinational food corporations and speculators to decide everyday who is eating and living, and who is starving and dying.
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It is mainly about becoming politically active in order to put an end to the murderous activities of food speculators and multinationals. We can do so, we live in a democracy.
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We could exclude all non-producers and non-consumers from the commodities exchange — in this sense only the farmer and the baker, through the commodities exchange engage in trade with each other.”

Rostow lives
The University of London’s Simon Reid-Henry argues that Walter Rostow’s Cold War-era The Stages of Economic Growth continues to exert major influence over today’s development economics:

“If this paternalist rendering of the economic trajectory of nations had a clear moral compass, it had a clear political compass too – just look at the book’s subtitle: An Anti-Communist Manifesto. This brings home an important point about development: its inherently political nature.
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Certainly most practitioners today, though not all, are more wary of assuming European and American history to be the norm, or of reading development as a linear or cumulative process.
But Rostow’s view that a dynamic private sector was to be supported by a strong but market-friendly state can still be found in many of today’s public-private partnership models. And anyone even slightly informed on World Bank and IMF policies over the past 20 years will see the persistence of his belief that political influence is best delivered under the radar of economic investments.”

Latest Developments, October 4

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Land grab complicity
A new Oxfam report criticizes the World Bank for contributing to the growing problem of land grabs in poor countries:

“The World Bank is in a unique position as both an investor in land and an adviser to developing countries. The Bank’s investments in agriculture have increased by 200 per cent in the last 10 years, while its private sector arm, the International Finance Corporation, sets standards followed by many investors. The Bank’s own research reveals that countries with the most large scale land deals are those with the poorest protection of people’s land rights. And since 2008, 21 formal complaints have been brought by communities affected by Bank projects that they say have violated their land rights.”

Defence corruption
A new Transparency International report gives 37% of the world’s biggest defence companies an “F” and only 1% an “A” on its anti-corruption test:

“The study, which grades companies from A to F, measures defence companies worth more than USD 10 trillion, with a combined defence revenue of over USD 500 billion. Transparency International estimates the global cost of corruption in the defence sector to be a minimum of USD 20 billion per year, based on data from the World Bank and the Stockholm International Peace Research Institute (SIPRI). This equates to the total sum pledged by the G8 in L’Aquila in 2009 to fight world hunger.”

Optional accountability
iPolitics reports that an office established by the Canadian government to mediate disputes between the country’s extractive industry and communities overseas has once again had to drop a case due to a mining company’s refusal to play along:

“The Office of the Extractive Sector Corporate Social Responsibility Counsellor, created in 2009 following widespread allegations of human rights abuses and environmental degradation by the industry around the world, received a complaint from two Argentine environmental groups in July over the impacts of McEwen Mining’s Los Azules copper exploration site on glaciers in the Andes.
But the office, which has dropped two previous cases brought on by civil society groups in Mexico and Mauritania and can only work with companies who agree to co-operate, has been informed by McEwen that the company won’t be participating in the mediation process, said Nils Engelstad, vice-president for corporate affairs.”

Herbicide boom
Mother Jones reports that contrary to biotech company claims, genetically modified crops actually seem to require larger amounts of herbicides than non-GMO strains:

“For several years, the Roundup Ready trait actually did meet Monsanto’s promise of decreasing overall herbicide use—herbicide use dropped by about 2 percent between 1996 and 1999, [Washington State University’s Chuck] Benbrook told me in an interview. But then weeds started to develop resistance to Roundup, pushing farmers to apply higher per-acre rates. In 2002, farmers using Roundup Ready soybeans jacked up their Roundup application rates by 21 percent, triggering a 19 million pound overall increase in Roundup use.
Since then, an herbicide gusher has been uncorked. By 2011, farms using Roundup Ready seeds were using 24 percent more herbicide than non-GMO farms planting the same crops, Benbrook told me. What happened? By that time, ‘in all three crops [corn, soy, and cotton], resistant weeds had fully kicked in,’ Benbrook said, and farmers were responding both by ramping up use of Roundup and resorting to older, more toxic herbicides like 2,4-D.”

Questionable investments
The Bretton Woods Project writes that the International Finance Corporation, the World Bank’s private sector arm, is coming under fire for funding mines at the centre of controversies in South Africa, Peru and elsewhere:

“Indiana University-based researcher Alex Lichtenstein commented: ‘In retrospect, it is hard to avoid the suspicion that Lonmin secured a major infusion of capital from the IFC five years ago by pimping its vastly overstated claim to corporate social responsibility. Indeed, the poverty of North West Province, historically abetted by a system of apartheid designed to insure cheap mine labor, by 2007 represented another investment opportunity for the nimble forces of global capital that had impoverished the region in the first place.’
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Alhassan Atta-Quayson of Ghana-based NGO Third World Network Africa, said: ‘The African mines supported by the IFC, from Guinea to South Africa, show the IFC’s complicity in the sub-optimal exploitation of Africa’s natural resources and the escalation of conflicts. The least we expect from the IFC is a return to the recommendations of the Extractive Industries Review and the divestment from these projects.’ ”

Investors for rights
A group of investors collectively worth over half a trillion dollars has issued a statement supporting “international legal frameworks, including the U.S. Alien Tort Statute (ATS), to protect human rights”:

The ATS is an important tool in encouraging standardized expectations for corporate behavior related to human rights. As Nobel Prize winning economist Joseph Stiglitz puts it, ‘ATS liability might be bad for bad businesses, but it is good for good businesses.’ For good companies, the ATS not only reduces the ability of competitors to gain advantage by ignoring human rights – it also gives them a mechanism to stand up to oppressive governments. They can point to the ATS as the reason why they are unable to participate in projects suspected to hold human rights liabilities.

Kiobel concerns
The International Corporate Accountability Roundtable’s Amol Mehra and Katie Shay write that a US Supreme Court case pitting Nigerian plaintiffs against oil giant Shell highlights the “alarming disconnect between corporate social responsibility practices and actual corporate behavior”:

“If Shell’s arguments win, the Supreme Court will effectively cut off what is often the best available remedy for victims of corporate-related human rights abuses. Outside of the allegations in the case, what the posturing by Shell highlights is the alarming disconnect between corporate social responsibility practices and actual corporate behavior, including the choice of litigation strategy and legal positions. How can a company that purportedly has a commitment to CSR seek to gut a law that brings human rights victims a remedy for harm?
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For CSR to truly mean anything, it must include clear commitments to respect human rights. The choice of litigation strategy and legal positions feeds directly into this responsibility, especially when a company is seeking to do more than defend itself from allegations of wrongdoing.”

Latest Developments, October 3

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What’s old is new again
Reuters reports that Somalia’s new government plans to “honour contracts signed prior to 1991 with oil majors including Royal Dutch Shell, BP and Chevron” during Mohamed Siad Barre’s two decades of military rule:

“The country hopes exploration by major oil companies will enable it to participate in the excitement over a string of discoveries in East Africa that have aroused expectations the region will become an important energy supplier.
Should companies choose to return, they will negotiate with the government over converting the old royalty-based contracts into production sharing agreements.
Any companies that signed oil exploration deals after 1991 could negotiate but would not be given priority, [Abdullahi Haider, a senior adviser to Somalia’s Ministry of Energy] said.”

Fair share
The Australian Broadcasting Corporation reports on Timor Leste’s struggle to control its own natural resources:

“Having fought a bitter battle with Australia over seabed borders and mineral rights it’s now taking on some of the world’s biggest private energy companies, demanding they pay their fair share of tax on the resources they’re extracting.
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As Four Corners discovered, the immediate battle is to audit the energy companies that the government claims are not paying their share of taxes. The centre of this struggle can be found in an office building where a small group of public servants have been meticulously going through contracts and tax returns. This is a contest the country’s leaders say they cannot afford to lose, because if they do they will consign an entire country to poverty.”

Eco-protectionism
The South African Government News Agency reports that the country’s trade minister believes that international health and safety requirements are a threat to African products:

“Speaking at the 3rd African Accreditation Cooperation (AFRAC) General Assembly and Meetings held at the Emperor’s Palace on Monday, [Trade and Industry Minister Rob] Davies said ‘eco protectionism’ was emerging under the guise of addressing climate change concerns, particularly from advanced countries.
‘For instance, some countries are considering the imposition of border adjustment taxes on imports produced with greater carbon emissions than similar products produced domestically, and subject to carbon emission limits,’ said Davies.
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The dumping of cheap, sub-standard manufactured goods on African markets has sometimes led to the collapse of local industries as well as served as a major barrier to industrial development.”

Food speculation
Metro reports that financial speculation on food, blamed by many for pushing up the world’s soaring food prices, is getting worse:

“Regulations that were previously in place to protect those who grew or sell food were removed in the 1990s. With the amount of money to be made gambling on the markets, the banks, hedge fund managers and pension funds moved in. Financial speculation on food almost doubled between 2006 and 2011. In 2006, the value of financial assets in food markets was £40billion; by 2011, it was £78billion. Financial speculators now dominate commodity markets, holding more than 60 per cent of some markets in 2011, compared with 12 per cent in 1996.”

Bad words
ABC reports that a group of linguists are arguing the US media’s use of the term “illegal immigrant” is neither inaccurate nor neutral:

“ ‘If we talk about a child who skips school, we don’t say he’s an illegal student,’ [UCLA’s Otto] Santa Ana said in reference to truancy laws. ‘We call a person who crosses the street illegally a jaywalker, not an illegal walker.’ Linguists George Lakoff and Sam Ferguson suggest in their 2006 paper ‘The Framing of Immigration’ that if the media is insistent on using ‘illegal immigrant,’ they also might consider the term ‘illegal employers,’ for those who give them work, in the name of linguistic fairness.”

Fighting patents
Intellectual Property Watch reports that Médecins Sans Frontières (Doctors Without Borders) has launched the “Patent Opposition Database” to increase access to affordable generic medicines:

“A patent opposition is a legal challenge aimed at blocking the granting of an unwarranted patent, MSF said.
The database was launched on the tenth anniversary of a landmark decision by the central intellectual property court in Thailand to overturn a patent on a key HIV drug based on opposition filed by patients. India and Brazil also have used this process.”

Demographic dividend
The Royal African Society’s Richard Dowden suggests that the extractive industry, currently “the single biggest contributor to Africa’s growth,” is unlikely to provide solutions to one of the continent’s biggest challenges:

[McKinsey and Co’s Africa at Work, Job Creation and Inclusive Growth] report says that 90 million Africans had joined the world’s consuming classes by 2011 and that the continent is about to reap a ‘demographic dividend’ by 2020 as there will be another 122 million people in the job market. Then comes the killer fact that makes the so-called dividend look more like a disaster: only 28 percent of the current labour force has stable wage-paying jobs. So technically Africa – were it one country – has a 72 percent unemployment rate. And where will new jobs come from? Resource extraction – namely mining, oil and gas – are notoriously low employers these days.

Macro malpractice
Morgan Stanley Asia’s Stephen Roach argues that so-called quantitative easing “puts central banks in the destabilizing position of abdicating control over financial markets”:

“For a world beset by seemingly endemic financial instability, this could prove to be the most destructive development of all.
The developing world is up in arms over the major central banks’ reckless tactics. Emerging economies’ leaders fear spillover effects in commodity markets and distortions of exchange rates and capital flows that may compromise their own focus on financial stability. While it is difficult to track the cross-border flows fueled by quantitative easing in the so-called advanced world, these fears are far from groundless. Liquidity injections into a zero-interest-rate developed world send return-starved investors scrambling for growth opportunities elsewhere.”