Category Archives: Latest Developments

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

Latest Developments, May 23

Posted on by
Reply

In the latest news and analysis…

Money, power, sex
The Daily Maverick provides a roundup of the first day of the OpenForum 2012 conference in Cape Town, the focus of which is the “paradox of unequal growth.”
“[London School of Economics’ Thandika] Mkandawire was particularly wary on the subject of foreign investment in Africa, sounding a note of caution: ‘Democracies which rely on external funding are choiceless democracies. No representation without taxation!’ He also pointed out that the ‘rebranding’ of Africa carried its own dangers, since it appealed to the ‘herd instincts’ of investors who might pull out of Africa as suddenly as they arrived, spooked by what he calls the ‘CNN factor’ – the impact of the image of Africa presented by international broadcasters.
Nkosana Moyo, vice president of the African Development Bank, was more obdurate on the topic. ‘We are letting ourselves by defined by others. Why do I care what the Economist thinks about me?’ he asked. Moyo also suggested that the West’s concerns about China’s activities in Africa were extremely hypocritical given the West’s history on the continent, but seemed to hint that China’s intentions were just as harmful: ‘Africans don’t seem to realise that there is no difference between China and the West,’ he said.”

UK government hearts Shell
Amnesty International has announced it is among a group of NGOs that has submitted freedom of information requests in the hopes of finding out why the UK government has intervened on behalf of Shell against Nigerian plaintiffs in a US Supreme Court case.
“ ‘While the UK Government claims to support the UN Guiding Principles on Business and Human Rights as a matter of policy, it undermines that support by attempting to block judicial remedies for human rights abuses committed by a UK company in another country. The Government argues that the US may not legitimately exercise jurisdiction in this case but ignores the possibility that universal jurisdiction for gross human rights abuses committed by corporations is an important element of an international solution to holding companies accountable for their human rights impacts,’ [said Amnesty International’s Peter Frankental.”

Mine control
South Africa Resource Watch reports that the Lesotho Congress for Democracy has called for the government to become the majority shareholder in all mining companies operating in the country.
“[Former Lesotho trade minister Mpho] Malie also spoke about mining companies taking advantage of the ‘relaxed’ laws of Lesotho.
‘Foreign companies operating our mines are in a hurry; they want to maximise their profits when we are still asleep. We need to review the laws before it is too late because if we delay, we will be left with nothing as a country,’ Malie said, adding the current government led by Prime Minister Pakalitha Mosisili, had allowed matters to get out of hand.”

Opaque deal
Reuters reports that Swiss-based commodities giant Glencore’s decision to become the majority owner of a Congolese copper mine is likely to raise a few eyebrows.
“But Tuesday’s deal, with two related, privately controlled groups – High Grade Minerals (HGM) and Groupe Bazano – whose ownership is not disclosed by Glencore, is also likely to revive debate over the opacity of deals in one of Africa’s most promising but also most challenging mining destinations.
Glencore, a lightning rod for campaign groups since its listing last May, earlier this month faced calls for greater transparency around its deals in Congo.”

Twitter inequality
The Globe and Mail reports on the potential human rights implications of proposed changes by Twitter that would allow corporate clients to view content the authors themselves could not access.
“Inequal access to information creates an imbalance of power. This is especially important to those who posted publicly with the expectation that they’d be able to see, control and prune their postings later on. Remember that in many parts of the world, political research isn’t just policy-testing and mud-slinging; it’s a matter of life and limb for oppositions, activists and dissidents. A Twitter feed can paint a very detailed portrait of someone’s life, their activities and associations, even if no individual tweet is particularly revealing. Now, Twitter users have two options: Submit their histories for corporate or political analysis, or delete them and lose everything.”

Better Life Index
The Guardian reports on the relaunch of the Organisation for Economic Co-operation and Development’s Better Life Index, which aims to go beyond GDP by comparing countries according to what people “think is important.”
“It’s counted as a major success by the OECD, particularly as users consistently rank quality of life indicators such as education, environment, governance, health, life satisfaction, safety and work-life balance above more traditional ones.
…
One of the major criticisms of the index was that it didn’t include inequality – and that’s changing with the relaunch with new indicators on inequality and gender plus rankings for Brazil and Russia. A couple have been removed too: Governance has been renamed civic engagement, employment rate of women with children has been replaced by the full integration of gender information in the employment data and students’ cognitive skills (e.g. student skills in reading, math and sciences) has replaced students’ reading skills to have a broader view.”

Envisioning sustainability
The Overseas Development Institute’s Jonathan Glennie maps out his vision of the future, in which sustainable development is development, not just a “subset” of it.
“The most important change would be the involvement of rich countries as well as poor. Sustainable development tackles affluence and excess, not just poverty, and it is the high-income countries that most need to alter their resource use (with a gradually increasing burden of responsibility on middle-income countries, especially the largest ones). Financial transfers will therefore reduce in importance relative to other areas of action (such as trade and regulation). Aid agencies might develop new roles as whole-of-government enforcers of development policy coherence.”

Secular fanaticism
Columbia University’s Hamid Dabashi calls for “a radical reconfiguration of ethical principals” that transcends the religious and ethnic differences that divide people today.
“The principal facts on the ground – beaconing those visionaries – are the wretched of the earth, the masses of millions of human beings roaming the globe in search of the most basic necessities of life and liberty or else for fear of persecution. Muslims and Africans face the same ghastly discrimination in Europe as Latin American illegal immigrants do in the United States, Afghan refugees do in Iran, Palestinians (now joined by Africans) do in Israel or Philipino or Sri Lankan labourers do in the Arab world.
That fact is the ground zero of principled moral positions.”

Latest Developments, May 18

Posted on by
Reply

In the latest news and analysis…

G8(ish) summit
Deutshce Welle reports on the issues and questions facing the G8 as it convenes this weekend in Camp David, where the presidents of Ethiopia, Tanzania, Ghana and Benin will be in attendance, but Russia’s will not.
“The list of topics is long for a summit that doesn’t even last 24 hours. It spans from food security for Africa to the nuclear debate with Iran, troop withdrawal from Afghanistan, further course of action in Syria and North Korea all the way to climate protection.
…
So time and again the question arises what the point of the G8 summits even is. After all: the eight countries represent 15 percent of the world’s population and two-thirds of the international economic performance. It is a loose union of states, without any solid organization, financing or rules. It was created as a forum in the middle of the oil crisis in the 1970s to coordinate economic and trade issues. But political and economic questions are now regularly on the agenda – even when the G20 is considered the more powerful economic forum and the UN Security Council regulates sanction mechanisms.”

US army to Africa
Al Jazeera reports that a combat brigade will be assigned next year to the US military’s Africa Command “to do training and participate in military exercises” around the continent.
“General Ray Odierno, the army’s chief of staff, says the plan is part of a new effort to provide US commanders around the globe with troops on a rotational basis to meet the military needs of their regions.
This pilot programme sends troops to an area that has become a greater priority for the Obama administration since it includes several nations from where it perceives an increasing threat to the US and the region.”

Let them eat tobacco
Inter Press Service reports that Malawi’s IMF-prescribed currency devaluation earlier this month has made life more difficult for the country’s poor by causing a huge hike in food prices but should help the tobacco industry.
“Tobacco is the country’s main revenue earner, accounting for up to 60 percent – or 950 million dollars – of foreign exchange. According to the Ministry of Agriculture and Food Security, Malawi’s tobacco accounts for five percent of the world’s total exports.
…
‘On the export front, the devaluation will lead to increased demand for Malawi’s exports in the short run. In the long run, this is expected to stimulate production and thus lead to increased production of exportable goods … thereby generating foreign currency,’ said [the Malawi Economic Justice Network’s Dalitso] Kubalasa.
He added that because the prices of imports had automatically risen and become unaffordable for some, the situation would motivate locals to substitute these goods with commodities that can be produced locally. It would provide an incentive to local industry, he said.
But he admitted that the devaluation would affect the country’s middle class and poor.”

Matter of conscience
The Harvard School of Public Health’s Winston Hide explains that his conscience compelled his resignation from the editorial board of the Elsevier-published Genomics journal.
“No longer can I work for a system that provides solid profits for the publisher while effectively denying colleagues in developing countries access to research findings.”
…
The vast majority of biomedical scientists in Africa attempt to perform globally competitive research without up-to-date access to the wealth of biomedical literature taken for granted at western institutions. In Africa, your university may have subscriptions to only a handful of scientific journals.
…
So I’d prefer to devote the limited time I have available to an open access journal that provides its work at no cost to researchers who urgently require its contents to improve their environment.”

Growing debt
The Guardian reports that a few short years after a series of debt cancellations, total external debt owed by “developing countries” increased by $437 billion in 2010 to reach $4 trillion.
“A major chunk of the debt owed by 32 countries, mostly in sub-Saharan Africa, was eliminated by the heavily indebted poor countries (HIPC) initiative of the World Bank and IMF, which was reinforced by the G8’s 2005 multilateral debt relief initiative (MDRI).
But many poor countries in Asia and Latin America (for example, Jamaica and El Salvador) did not have debts written off because their income per capita was too high to meet the IMF and World Bank criteria. Others, such as Bangladesh, did not qualify for cancellation because their debts were seen as sustainable.
…
But even in countries that did qualify for debt write-offs, there is evidence that external debts, which fell significantly after 1995, are on the rise again.
‘These loans are building up again,’ said [the Jubilee Debt Campaign’ Tim] Jones. ‘It can go unnoticed if economies are growing and exports are on the rise – but as soon as there’s a crisis like a drought or flood it becomes a huge problem.’ ”

Techno fixations
In a review of two new books on transformative technology, Sona Partners’ Timothy Ogden slams “techno-utopianism.”
“In the few places where [Abundance authors Peter Diamandis and Steven Kotler] begin to acknowledge that the problems that keep much of the world disenfranchised, impoverished, and unhealthy are not technological in origin, they quickly explain that we already ‘know’ how to deal with those issues. For instance, we ‘know’ that ‘community support is the most critical component for any water solution’ and ‘maintenance workers need to be incentivized.’ Now that we know these facts, a technology breakthrough is all that’s needed to fix global water problems. I wonder what technology will fix global justice problems now that we know all people are created equal.”

Too hot for TED
The Atlantic reproduces venture capitalist Nick Hanauer’s speech on inequality that TED University deemed “too politically controversial to post on their web site,” in which he questions the conventional wisdom that rich people and businesses create jobs.
“Anyone who’s ever run a business knows that hiring more people is a capitalist’s course of last resort, something we do only when increasing customer demand requires it. In this sense, calling ourselves job creators isn’t just inaccurate, it’s disingenuous.
That’s why our current policies are so upside down. When you have a tax system in which most of the exemptions and the lowest rates benefit the richest, all in the name of job creation, all that happens is that the rich get richer.
Since 1980, the share of income for the richest Americans has more than tripled while effective tax rates have declined by close to 50%.”

Latest Developments, May 16

Posted on by
Reply

In the latest news and analysis…

State of the planet
Agence France-Presse summarizes the World Wildlife Federation’s new Living Planet Report, which says high-income countries have five times the ecological footprint of their poorer counterparts.
“The survey, compiled every two years, reported an average 30 percent decrease in biodiversity since 1970, rising to 60 percent in the hardest-hit tropical regions.

The decline has been most rapid in lower income countries, ‘demonstrating how the poorest and most vulnerable nations are subsidising the lifestyles of wealthier countries,’ said WWF.”

Libyan deaths
Human Rights Watch has released a new report about the 72 civilian deaths it says were caused by NATO strikes in Libya last year.
“The number of civilian deaths from NATO air strikes in Libya was low given the extent of the bombing and duration of the campaign, Human Rights Watch said. Nevertheless, the absence of a clear military target at seven of the eight sites Human Rights Watch visited raises concerns of possible laws-of-war violations that should be investigated.
…
NATO asserts that it cannot conduct post-operation investigations into civilian casualties in Libya because it has no mandate to operate on the ground. But NATO has not requested permission from Libya’s transitional government to look into the incidents of civilian deaths and should promptly do so, Human Rights Watch said.
‘The overall care NATO took in the campaign is undermined by its refusal to examine the dozens of civilian deaths,’ [HRW’s Fred] Abrahams said.”

Corporate power
The Guardian reports on a legal dispute between a UK hedge fund and an Indian state-controlled coal company, which has some observers asking if the “terms of trade and investment are skewed” in a way that harms poor countries and poor people.
“ ‘What this case really illustrates is how far global trade and investment rules have gone in increasing the power and influence of companies,’ said Ruth Bergan, co-ordinator for the Trade Justice Movement. ‘Under bilateral investment treaties, companies have been given the right to sue states, not in national courts, whether in host or home countries, but in international arbitration centres, based at the International Chamber of Commerce, the World Bank, and a handful of other often highly secretive centres.’ ”

Terror double-standard
The Atlantic’s John Hudson suggests US ambivalence toward assassinations of Iranian nuclear scientists is evidence of America’s “flexible definition” of terrorism.
“The Obama administration is moving to delist an Iranian dissident group from the State Department terrorism list, which, as recently as January, reportedly detonated a magnetic bomb under the car of an Iranian scientist. Perhaps unintentionally, the message the move would send appears to be: This activity is OK as long as it’s against Iran.”

Rio+20 deadlock
Inter Press Service reports that two weeks of preparatory talks for next month’s Rio+20 summit have “failed to reach consensus on a global plan of action.”
“ ‘Let us be frank,’ the [UN Conference on Sustainable Development] secretary general Sha Zukang said, ‘the negotiating text is a far cry from the focused political document called for by the general assembly.’ Zukang said the objective should be to arrive in Rio ‘with at least 90% of the text ready, and only the most difficult 10% left to be negotiated there at the highest political levels’.
However, a statement released by a coalition of international NGOs warned that Rio+20 ‘looks set to add almost nothing to global efforts to deliver sustainable development’. ‘Too many governments are using or allowing the talks to undermine established human rights and agreed principles such as equity, precaution and polluter pays,’ it said.”

Western gender problems
UC Santa Barbara’s Hilal Elver argues that a recent Foreign Policy issue on the plight of women around the world failed to acknowledge that gender equality does not exist in Western countries either.
“Anthropologists use the term ‘native informants’ to identify the witness of insiders. Giving a platform to Muslim women writers critical of Islam has also become a very popular tactic in Europe. These commentators claim to speak from bitter experience about how Islam is bad for women. This makes the European public feel comfortable when they adopt public policies against Islamic practices.
…
FP only pointed to the United States as a good example, how Secretary of State Hillary Clinton works on women’s issues while shaping US foreign policy. I am sure she has many things to say about the United States, if FP would ask, about the relevance of her gender to her unsuccessful presidential campaign. But, this is not what readers seem to care about. It would have been much more impressive and acceptable if such critical issues were presented not only for selected adversary countries and cultures, and if there was not exhibited such bias and partisanship.”

Show trial
The University of Ottawa’s Peter Showler writes about the lack of “sincerity” during a parliamentary investigation into the Canadian government’s proposed changes to national refugee laws.
“[The proceedings] became more show trial than law making. The witnesses called by the Conservatives repeated their versions of the government storyline: Canada is inundated with bogus refugees; we need fast decisions to get rid of the fraudulent claimants; they come here for welfare, not protection; putting smuggled passengers in prison for a year is the only way to stop the smugglers who are evil. The Conservative members rarely asked real questions of their witnesses. They repeated the government litanies about Canada’s generosity and burdens on the Canadian taxpayer followed by ‘would you agree?’
…
There is an awful, disembodied sensation in watching a show trial. It is the sensation of observing a slow-motion accident through a plate-glass window. Something horrible and inevitable is happening and there is nothing you can do to stop it. You realize the outcome has been decided already. The proceedings became a theatre piece where everyone played their part.”

Latest Developments, May 14

Posted on by
Reply

In the latest news and analysis…

Arming Bahrain
Reuters reports that the US has decided to resume “some military sales” to Bahrain, despite heavy criticism of the Gulf state’s human rights record.
“The State Department did not give a total value for the items being released but emphasized that the equipment being approved was “not used for crowd control” as the majority Shi’ite community continues to protest against the Sunni royal family following a crackdown last year.
U.S. officials said among the sales now allowed to go forward would be harbor security vessels and upgrades to turbo-fan engines used in F-16 fighter aircraft as well as legislation which could pave the way for a future sale of a naval frigate.
Items still on hold, besides the missiles and the Humvees, include teargas, teargas launchers and stun grenades.”

Trayvon targets
Gawker reports that someone selling gun range targets designed to look like murdered Florida teen Trayvon Martin said the market response was “overwhelming” and the item sold out in two days.
“The Orlando-based [Local 6] news station says it spotted an ad for the targets — since removed — on a ‘popular firearms auction website.’ They feature a black hoodie similar to the one worn by Martin on the night he was shot by self-appointed neighborhood watch captain George Zimmerman, along with a drawing of a Skittles bag and a can of iced tea.”

Hurting one’s cause
Reuters reports that JPMorgan Chase’s $2 billion in losses have given new impetus to the push for greater regulation of the US banking sector.
“Analysts said it is not yet clear if the trades would have violated the forthcoming Volcker rule reform.
[CEO Jamie] Dimon has been critical of the Volcker rule, a provision in Dodd-Frank that will ban banks from proprietary trading, or trades that are made solely for their own profit.
…
On Friday, Democratic senators Carl Levin and Jeff Merkley, who wrote the legislative language on the Volcker rule, said the outstanding proposal is flawed because it would give banks the latitude to hedge against portfolio risk as opposed to individual positions.
‘That’s a big enough loophole that a Mack truck could drive right through it,’ Levin said during a conference call.”

Worse than useless
The Overseas Development Institute’s Jonathan Glennie gives his take on what “all the talk of corporate social responsibility” is really worth when it comes to large-scale mining operations.
“The era of voluntary guidelines has not only been ineffective, it has been worse than useless. Although they may have led to incremental improvements in some areas, their real purpose has been to undermine attempts to develop effective legal sanction, both national and international, which is the only thing that will ultimately keep the destructive instincts of mega-wealthy companies at bay.”

New France?
Senegalese singer Baaba Maal assesses the significance of François Hollande’s election as new French president.
“I’m Senegalese and France is very connected to my country. France needs to open its eyes to the potential of its former colonies and to realise that these relationships have changed. People want to collaborate but with mutual respect. Whether that’s a respect for our culture, for our governments or for our business potential. It’s about sitting around the same table and talking together as equals. Of course our relationship hasn’t always been easy but we are in it together.”

Taliban poetry
The New York Times’ C.J. Chivers reviews a new collection of poetry written by Afghan insurgents.
“The Afghan war, of course, is a far broader phenomenon than its cemeteries, rifle skirmishes, house searches, airstrikes and bombs. The anthology covers wider themes, too, giving voice to many common Afghan complaints, including that the influx of Western cash has been corrupting to those who have received it and alienating to most everyone else.
I am astonished at this time of the dollars;
In poverty, I lost friendship.”

Capitalist values
Essayist William Deresiewicz writes on the fundamental nature of capitalism and the policy implications of popular sentiment toward the wealthy.
“There are ethical corporations, yes, and ethical businesspeople, but ethics in capitalism is purely optional, purely extrinsic. To expect morality in the market is to commit a category error. Capitalist values are antithetical to Christian ones. (How the loudest Christians in our public life can also be the most bellicose proponents of an unbridled free market is a matter for their own consciences.) Capitalist values are also antithetical to democratic ones. Like Christian ethics, the principles of republican government require us to consider the interests of others. Capitalism, which entails the single-minded pursuit of profit, would have us believe that it’s every man for himself.”

Latest Developments, May 11

Posted on by
Reply

In the latest news & analysis…

Clash of Civilizations 101
Wired reports that a US military course, which has since been cancelled, taught officers that “total war” against the world’s 1.4 billion Muslims would be necessary to protect America from terrorists.
“In the same presentation, [Army Lt. Col. Matthew A.] Dooley lays out a possible four-phase war plan to carry out a forced transformation of the Islam religion. Phase three includes possible outcomes like ‘Islam reduced to a cult status’ and ‘Saudi Arabia threatened with starvation.’
…
International laws protecting civilians in wartime are ‘no longer relevant,’ Dooley continues. And that opens the possibility of applying ‘the historical precedents of Dresden, Tokyo, Hiroshima, Nagasaki’ to Islam’s holiest cities, and bringing about ‘Mecca and Medina[‘s] destruction.’ ”

A more serious debate
Writing about the African edition of the World Economic Forum currently underway in Addis Ababa, Global Pacific & Partners’ Duncan Clarke decries the simplistic “leitmotif” of corrupt African politicians that dominates discussions of the continent’s economy.
“We need within Africa therefore to discern the deeper histories and underlying structures that moulded our economic worlds, plus the myriad forces that shape it today, let alone the unknown that will determine our lot tomorrow. There is more complexity in contemporary underdevelopment than flawed leadership allied to predation and visible political deficiencies. A more serious debate is needed.
Today there is an overabundant discourse on leadership, especially in the theatre of the talk shop, which somehow passes for sage insight or even sound economic analysis, providing a weak diagnostic framework for complex economic historiographies and contemporary realities.”

African growth
The Guardian reports that the Africa Progress Panel, led by former UN secretary general Kofi Annan, has concluded that Africa’s rapid economic growth is creating greater inequality.
“Although seven out of 10 people in the region live in countries that have averaged growth of more than 4% a year for the past decade, Annan’s study found that almost half of Africans were still living on incomes below the internationally accepted poverty benchmark of $1.25 a day.
…
‘It cannot be said often enough, that overall progress remains too slow and too uneven; that too many Africans remain caught in downward spirals of poverty, insecurity and marginalisation; that too few people benefit from the continent’s growth trend and rising geo-strategic importance; that too much of Africa’s enormous resource wealth remains in the hands of narrow elites and, increasingly, foreign investors without being turned into tangible benefits for its people,’ [wrote Annan in his foreword to the report.]”

Fear & loathing
A Center for Economic and Policy Research blog post examines the yawning gulf between foreign aid workers and those they are ostensibly in Haiti to help.
“And [this dynamic of fear and distrust] tragically emerged as a major reason for wasted opportunities and lives lost in the initial days and weeks after the 2010 earthquake, heightened by exaggerated media reports of ‘looting’ and potential chaos. The U.S. government, which secured a leading role for itself in the emergency relief effort, prioritized a military response over a non-military one, and generally treated the Haitian population as objects of fear to whom aid should be delivered, rather than active participants who could perhaps best act in the rescue and relief operations in their own communities.
This dynamic of fear and distrust, which estranges aid workers from the local population, may also help to explain the incredible disconnect that some in the NGO community seem to exhibit in their behavior, as documented by Michele Mitchell in her film “Haiti: Where Did the Money Go?” Mitchell records NGO staff dining at a posh restaurant where steak costs $34 and wine sells for $72 a bottle, across the street from an IDP camp where the very people these aid workers are supposed to serve struggle for daily survival.”

A dangerous policy
Former CIA officer Robert Grenier argues the US is repeating in Yemen mistakes it made in Pakistan.
“I do not claim deep knowledge of developments in Shabwa Province, but when I hear significant numbers of tribal militants being referred to as al-Qaeda operatives, and [al-Qaeda in the Arabian Peninsula], a small organisation dominated by non-Yemenis, being alleged to have political control of significant parts of Yemen, I react with some scepticism, and some suspicion.
One wonders how many Yemenis may be moved in future to violent extremism in reaction to carelessly targeted missile strikes, and how many Yemeni militants with strictly local agendas will become dedicated enemies of the West in response to US military actions against them.”

Drone journalism
The Bureau of Investigative Journalism calls on Western media to provide more balanced reporting on the US drone war as it enters “a new phase” in which host-government cooperation has been withdrawn.
“Part of the justification for the US carrying out drone strikes without consent is their reported success. And naming those militants killed is key to that process. Al Qaeda bomber Fahd al-Quso’s death was widely celebrated.
Yet how many newspapers also registered the death of Mohamed Saleh Al-Suna, a civilian caught up and killed in a US strike in Yemen on March 30?
By showing only one side of the coin, we risk presenting a distorted picture of this new form of warfare. There is an obligation to identify all of those killed – not just the bad guys.”

Corporate warfare
Global voices reports on “unrest” in Guatemala involving community opposition to the construction of a hydroelectric dam by a Spain’s Hidralia Energia.
“In late April 2012, allegations of land mines placed around the hydroelectric company to protect it from any disruptive actions triggered a series of protests where citizens expressed their concern and demanded that the company be expelled from the community. Protesters denounced the mined field at the offices of the police, and later demanded protection and action from the army.”