Latest Developments, June 7

In the latest news and analysis…

Mining fears
Accounting giant PricewaterhouseCoopers has published its annual report on the state of the world’s top 40 mining companies, in which it expresses concern over “resource nationalism” despite record combined profits of $133 billion in 2011:

“Ownership of resources and mining industry fiscal regimes remain high on the agenda for many governments around the world. Nations are looking to take an increasing share of profits and resources through a range of measures. Ongoing discussions and debates, formal reviews of fiscal regimes, or recently enacted changes have been seen in countries such as Australia, Chile, Ghana, Peru, and South Africa.

Governments are under pressure from local communities and other key stakeholders, and as a result, the stability that previously existed in many nations is deteriorating. High commodity prices have increased the industry’s visibility, triggering stakeholders to seek a bigger piece of the pie.”

Sales assistants
Embassy Magazine reports that the Canadian government is actively helping domestic arms manufacturers find buyers abroad:

“In the last few years, the Canadian Commercial Corporation, a Crown corporation, has helped Canadian firms sell everything from military hardware and weapons to wiretapping technology, forensics for ballistics, surveillance, document detection, sensor systems, bulletproof vests and helmets, training, and other services.
They are partnering with government ministers to get the job done. It’s called ‘co-operative marketing,’ according to CCC president Marc Whittingham.
The way it works is that firms tell the organization which markets they’re interested in, and when corporation representatives or a minister is travelling, they are able to ‘further that pursuit,’ he said.”

Banking rules
The New York Times reports that a hearing into JPMorgan Chase’s “multibillion-dollar trading loss” has led to more talk of the need to impose stricter limits on the activities of US banks:

“Several Democrats have seized on the news of the bank’s loss, saying the case underscores a need to enforce a strict Volcker Rule.
The rule, named for Paul A. Volcker, the former chairman of the Federal Reserve, would ban banks from trading with their own money, a practice known as proprietary trading. Support for the new regulations gained momentum after JPMorgan’s loss disclosure last month.
But the scope of the rule, which regulators plan to complete in the coming months, is unclear. For one, it allows banks to use hedges to offset risk. Regulators have yet to decide how broad to make that hedging exemption, prompting some Democrats to push for clarity.”

Oil troubles
Business Daily reports that the recent discovery of oil in Kenya by UK-based Tullow Oil has touched off tensions in local communities:

“The oil find in Turkana is touching on land ownership and compensation and last week a meeting to discuss the discovery aborted as locals and legislators demanded more involvement in the decisions on the black gold resource.
‘Engagement with the locals has not been smooth. We had planned a forum for Wednesday on the oil discovery but it has aborted on account of consensus. MPs from the two counties and those in relevant committees of Parliament have said they were not consulted,’ said [Energy Ministry Permanent Secretary Patrick] Nyoike.”

Hip hop wars
Columbia University’s Hishaam Aidi writes on the significance of the growing debate over hip hop in Europe:

“European government officials are increasingly worried about the influence that Muslim rap artists wield over youth, and are scrutinising hip hop practices in the immigrant neighbourhoods, trying to decide which Muslim hip hop artists to promote and which to push aside.

The debate over hip hop, Europe’s dominant youth culture, stands in for a much larger debate about race, immigration and national identity. With many of the biggest stars being Muslim, the disputes over which Muslim hip hop artists are ‘moderate’ or ‘radical’ are also disagreements over what kind of Islam to allow into the public space.”

Burma caution
Burma partnership’s Khin Ohmar argues that the international community needs to put the brakes on the sudden race to invest in her country:

“There are no such things as environmental impact or social impact assessments. There is no participation from any group that represents people’s interests in the decision-making process. Rule of law is extremely weak, with a subordinate and ineffective judiciary, arbitrary arrests, widespread corruption and a culture of impunity.
Burma is quite simply not ready. Investment, particularly in the country’s unstable ethnic areas, serves to exacerbate human rights abuses and causes major environmental and social damage. As long as the military has the biggest say in the development of Burma, the status quo won’t really change. Foreign investors should wait until the nation is reconciled before proceeding with the unabated enthusiasm currently on display.”

Big money
UC Berkeley’s Robert Reich looks at the impacts the US Supreme Court’s “grotesque 2010 Citizens United vs Federal Election Commission decision” is having on the country’s presidential election campaign:

“According to the reliable inside-Washington source Politico, the Koch brothers’ network alone will be spending $400m over the next six months trying to defeat Obama, which is more than Senator John McCain spent on his entire 2008 campaign.
Big corporations and Wall Street are also secretly funneling big bucks into front groups like the US Chamber of Commerce that will use the money to air anti-Obama ads, while keeping secret the identities of these firms.”

Fragile union
The Financial Times’ Martin Wolf writes on the inherent difficulty of maintaining an economic union without corresponding political cohesion:

“Given such uncertainty, panic is, alas, rational. A fiat currency backed by heterogeneous sovereigns is irremediably fragile.
Before now, I had never really understood how the 1930s could happen. Now I do. All one needs are fragile economies, a rigid monetary regime, intense debate over what must be done, widespread belief that suffering is good, myopic politicians, an inability to co-operate and failure to stay ahead of events.”

Latest Developments, June 6

In the latest news and analysis…

Asymmetric agreement
Inter Press Service reports that not everyone thinks Central America has done well for itself in the recently negotiated free trade agreement with the European Union:

“ ‘Central America obtained meagre access quotas for agricultural products such as sugar, textiles, beef and rice,’ whereas the EU ‘gained full opening of Central American markets for a wide range of key agricultural and industrial goods, such as dairy products, vehicles, medicines and machinery,’ [the Mesoamerican Initiative on Trade, Integration and Sustainable Development (CID)] says in a communiqué.
Moreover, on intellectual property, CID questions the major concessions granted to the EU in terms of protected geographical designations, patents and copyright: in the area of services, the bloc was granted complete access in the fields of finance, transport and energy, among others.
Meanwhile, ‘Central America has yielded ground in terms of workers’ rights and environmental protection compared with other treaties,’ since ‘the agreement with the EU does not provide for penalties for those who infringe these rights for the sake of commercial interests,’ says CID.”

Genetically modified lawsuit
Agence France-Presse reports on the suit brought by 5 million Brazilian farmers against US agribusiness giant Monsanto over crop royalties:

“ ‘Monsanto gets paid when it sell the seeds. The law gives producers the right to multiply the seeds they buy and nowhere in the world is there a requirement to pay (again). Producers are in effect paying a private tax on production,’ said lawyer Jane Berwanger.
In April, a judge in the southern Brazilian state of Rio Grande do Sul, Giovanni Conti, ruled in favor of the producers and ordered Monsanto to return royalties paid since 2004 or a minimum of $2 billion.
Monsanto appealed and a federal court is to rule on the case by 2014.
In the meantime, the US company said it was still being paid crop royalties.”

Democracy, Walmart-style
The Associated Press reports that despite allegations of bribery in Mexico and “unprecedented dissent against key executives,” all of Walmart’s board members were re-elected:

“With descendants of Walmart’s founder owning about 50 percent of Walmart’s shares, activist shareholders had little chance of voting out the board members. But the numbers, particularly when excluding the Walton family and other insiders, show a more staggering loss of confidence.

The vote came after a story by The New York Times published in April said the world’s largest retailer allegedly failed to notify law enforcement after finding evidence that officials authorized millions of dollars in bribes in Mexico to get speedier building permits and other favors. [CEO Mike] Duke was head of Walmart’s international business at the time of the probe in 2005, and [Lee] Scott was CEO. It’s not clear what board members like Walton knew.”

Drone warning
The Guardian reports that a former top CIA official has warned that America’s  indiscriminate drone policy is dangerous to the US as well as innocent bystanders:

“ ‘We have gone a long way down the road of creating a situation where we are creating more enemies than we are removing from the battlefield. We are already there with regards to Pakistan and Afghanistan,’ [Robert Grenier, who headed the CIA’s counter-terrorism center from 2004 to 2006] said.

‘I am very concerned about the creation of a larger terrorist safe haven in Yemen,’ Grenier said.”

War on Mexicans
SF Weekly’s Michael Lacey writes about the potential consequences of the US Supreme Court’s expected ruling in favour of Arizona’s controversial Senate Bill 1070, which “forces all police officers to ascertain immigration status whenever a cop interacts with a brown person”:

“Like the pre-Civil War era of free and slave states, America is about to divide along color lines.
Six states already have a version of Arizona’s bill and are awaiting the ruling for implementation. In all, 16 states filed amicus briefs urging the Supreme Court to support S.B. 1070.
Where once we depended upon the federal government to protect minorities from firehoses and segregated schoolhouses named Booker T. Washington or George Washington Carver, this month the Supreme Court is poised to tell us how far local cops can go to detain brown people.”

Transparent motives
Swiss National Councillor Isabelle Chevalley asks why Australian mining companies go to Africa when their continent still has large uranium reserves:

“The director of Australian mining company Paladin Energy answered, saying: ‘Australians and Canadians have become too aware of uranium mining’s problems. Now we have to go to Africa.’ At least the answer is clear.
Let’s open our eyes and demand transparency on the origin of the uranium we use in our power plants!” (Translated from the French.)

A little respect
Kwani? founding editor Binyavanga Wainaina takes issue with the West’s continued condescension towards Africa:

“If your spouse has arrived in Kenya and does not have a job, soon he or she will be fully networked and earning lots of pounds/euros/dollars, making sure the babies of Africa are safe, making sure the animals of Africa are kept safely away from Africans, making sure the African woman is kept well-shielded from the African man, making sure the genitals of Africa are swabbed, rubbered and raised into a place called awareness. Because you are a good person, who believes in multiculturalism, and that politicians are evil.”

CSR substance and spin
Oxfam’s Erinch Sahan writes on the difficulty of separating fact from fiction when virtually every large company claims to treat corporate social responsibility as a “core” concern:

“Frustrated that I can’t get beyond the online PR spin, I’ve taken to asking them questions like ‘when push-comes-to-shove, and it’s costly to be responsible, who wins the fight, your buying manager or your corporate responsibility team?’ The answer, unfortunately, is almost always ‘buying’.

The side of the business that is concerned with product quality is usually the first side to buy into the business case to act responsibly. This is because long-term supplier relationships are good for quality and usually good for development. But the performance of the buyers, who hold real sway in these companies, is measured on profit margin, so they need to get the lowest price and usually drive who the company does business with.”

Latest Developments, June 1

In the latest news and analysis…

The in-crowd
Stockholm University’s Ian Richardson suggests that this weekend’s Bilderberg conference – an annual meeting of the “transnational power elite” – is not an inherently bad thing in a world divided into competing nation states:

“In the absence of a global regulatory framework, organizations like Bilderberg have helped to blur the edges of an otherwise brittle system of international relations that has consistently failed to transcend its protectionist tendencies. Without them, it’s entirely conceivable that we’d have descended into many more international stand-offs and conflicts than we have.

Transnational elite policy networks such as Bilderberg are an integral, and to some extent critical, part of the existing system of global governance. The practical problem is not so much that they exist, although we could talk about this ad infinitum, it is instead related to what they are doing and why they are doing it. It is here that our elites have been found most wanting. Their self-serving acceptance and peddling of dominant market logics, their fundamental lack of criticality and a lack of meaningful progress in the area of global social and political development is threatening the very peace and prosperity we look to them to provide.”

Chevron suit
Reuters reports that Ecuadorean plaintiffs have filed a lawsuit in Canada in the hopes of enforcing an $18 billion ruling against oil giant Chevron for pollution in the Amazon:

“Since U.S.-based Chevron no longer has assets in Ecuador, the plaintiffs are trying to get the ruling enforced outside the OPEC-member country.
The new lawsuit, filed in the Superior Court of Justice in Ontario, targets Chevron and various subsidiaries that together hold significant assets in Canada, the plaintiffs’ legal team said in a statement.
‘While Chevron might think it can ignore court orders in Ecuador, it will be impossible to ignore a court order in Canada where a court may seize the company’s assets if necessary to secure payment,’ said Pablo Fajardo, the lead lawyer for the plaintiffs.”

One billion dollar misunderstanding
Global Witness says European oil giants Shell and ENI have provided explanations that are “no longer sufficient” regarding a controversial oil deal in Nigeria:

“In a press release dated 20th May, Global Witness exposed how Nigerian subsidiaries of Shell and ENI had agreed to pay the Nigerian Government US$1,092,040,000 to acquire offshore oil block OPL 245. It was also revealed that the Nigerian government agreed, in the same month, to pay precisely the same amount to Malabu Oil and Gas, a company widely reported as controlled by Abacha-era oil minister, Dan Etete, who was convicted in France in 2007 of money-laundering. The revelations came to light as a result of the publication of New York court documents.
Both Shell and ENI deny paying any money to Malabu Oil and Gas in respect of the licence and suggest that their agreements were only with the Nigerian Government.  However, a recent statement from Nigeria’s Attorney General appears to contradict this.”

Legal bill
The Center for Global Development’s Justin Sandefur and Yale law student Alaina Varvaloucas ask if the $250 million price tag for the trial of former Liberian president Charles Taylor is justifiable, given that the annual budget for the entire justice sector of Sierra Leone – the country where the crimes he was convicted of aiding and abetting actually took place – is $13 million:

“Certainly nobody, least of all Sierra Leoneans who lived through a brutal civil war, wants Taylor roaming free.
And beyond keeping Taylor off the streets or deterring future war criminals, one of the main goals of international criminal tribunals is to serve as an example to the world of how much process is due a defendant, regardless of the crimes he is accused of committing. But the realistic counterfactual to the hundreds of millions spent on Taylor’s trial was not an unjust trial. It was a swifter trial, likely arriving to the same conclusion, but with a less expensive venue and not-so-high-priced defense attorneys—not to mention fewer conjugal visits for Taylor, no fancy Dutch food or internet access, and no rabbinical visits to indulge his new interest in Judaism.”

Haitian gold rush
The Guardian reports on Haiti’s apparently imminent mining boom and the concerns over who will benefit once exploration turns to production:

“ ‘It’s usually a couple of big white guys, with a couple of Haitians,’ explains Arnolt Jean, 49, who lives in one of the few concrete homes in the hillside community [of Lakwèv]. ‘They don’t even ask you who owns what land. They come, they take big chunks of earth, put them in their knapsacks and leave. We Haitians all just watch, because we can’t do anything about it.’

More than a third of Haiti’s north – at least 1,500 sq km – is under licence to US and Canadian companies. Eurasian Minerals has acquired 53 licences and collected more than 44,000 samples. The junior explorer firm recently teamed up with the world’s No 2 gold producer, US-based Newmont Mining.”

The 1 Percent’s problem
Columbia University’s Joseph Stiglitz argues that America’s wealthiest people should be concerned about income inequality, if only for selfish reasons:

“The rich do not exist in a vacuum. They need a functioning society around them to sustain their position. Widely unequal societies do not function efficiently and their economies are neither stable nor sustainable. The evidence from history and from around the modern world is unequivocal: there comes a point when inequality spirals into economic dysfunction for the whole society, and when it does, even the rich pay a steep price.”

World No Tobacco Day
Al Jazeera reports on the range of tactics – “including ramping up litigation, co-opting officials, and funding front groups” – allegedly used by tobacco companies to get around anti-smoking legislation and keep their sales up:

“ While smoking in the developed world has been steadily dropping, it is burgeoning in the developing one. The tobacco corporations have been accused of targeting poorer regions such as Africa. It is predicted that more than 80 per cent of tobacco-related deaths will occur in low and middle-income countries by 2030. ”

Austerity fever
Princeton University’s Paul Krugman argues that “ulterior motives” lie behind the current taste for austerity measures among politicians on both sides of the (North) Atlantic:

“In fairness to Britain’s conservatives, they aren’t quite as crude as their American counterparts. They don’t rail against the evils of deficits in one breath, then demand huge tax cuts for the wealthy in the next (although the Cameron government has, in fact, significantly cut the top tax rate).”

Latest Developments, May 31

In the latest news and analysis…

Universal justice?
Following the 50-year sentence handed down by a court in The Hague to former Liberian president Charles Taylor, the Daily Beast reports on some of the different views held in the country he once ruled concerning Western-style justice.
“Just last week, controversy arose when a commissioner from the nation’s Independent National Human Rights Commission (INHRC) was quoted by media outlets as saying that the body would be forwarding names of Liberians to the International Criminal Court to be considered for prosecution.
Leroy Urey, chairman of the commission, said the statement did not reflect the view of the body. Commissioner Thomas Bureh, who was quoted in various Liberian media outlets, has stepped away from the comment and said that reconciliation should be Liberia’s primary focus.
According to a report by Front Page Africa, Mr. Urey accused Mr. Bureh of receiving bribes to make the statement: ‘I think Bureh has been tampered with by people in the erstwhile [Truth and Reconciliation Commission] and the international community, especially [the UN Mission in Liberia],’ said Mr. Urey, according to the report.”

Boomerang bailout
The New York Times reports that most of Greece’s bailout money is going right back to where it came from.
“The European bailout of 130 billion euros ($163.4 billion) that was supposed to buy time for Greece is mainly servicing only the interest on the country’s debt — while the Greek economy continues to struggle.
If that seems to make little sense economically, it has a certain logic in the politics of euro-finance. After all, the money dispensed by the troika — the European Central Bank, the International Monetary Fund and the European Commission — comes from European taxpayers, many of whom are increasingly wary of the political disarray that has afflicted Athens and clouded the future of the euro zone.
As they pay themselves, though, the troika members are also withholding other funds intended to keep the Greek government in operation.”

Right to Water
Embassy Magazine reports that “after years of opposition,” the Canadian government has said it plans to recognize the human right to water.
“In an interview, [Environment Minister Peter] Kent told Embassy that Canada is now willing to remove its request for the statement on the right to safe drinking water and sanitation to be deleted.
At the same time, he maintained that the right to water should not encompass ‘trans-boundary water issues or the export of water, or any mandatory allocation of international development assistance.’

Catarina de Albuquerque, the UN special rapporteur for the right to water, publicly condemned Canada for its stance in a speech on world water day, March 22.”

Pan-African vote
Press TV reports that the Pan-African parliament has chosen Bethel Amadi to be its new president, though the body’s powers remain strictly “consultative and advisory.”
“Already commentators have criticized it, saying that without being able to pass binding resolutions, the parliament risks becoming nothing more than a talkshop. The new president admits the step to achieve legislative powers is one of his biggest challenges…
In order to be ratified, the amendment must receive the support of 28 countries. The Pan-African Parliament is hopeful a tangible step in this direction will be taken at the African Union Heads of State meeting in Malawi in July.”

Executive maximum wage
Reuters reports that France’s new government aims to unveil next month its plans to impose a relative cap on the salaries of top executives at state-controlled companies.
“Elected this month promising to curb the privileges enjoyed by France’s wealthy and powerful, Socialist President Francois Hollande pledged during campaigning to limit senior executives’ salaries to a maximum of 20 times that of their lowest-paid employee.

While restricted to state-controlled firms, the French pay limit could affect a number of listed companies including nuclear power plant builder Areva and utility EDF.”

Drone survivors
Harper’s provides a series of statements made by families of victims and survivors of a 2011 US drone strike in Pakistan’s North Waziristan.
“The men who died in this strike were our leaders; the ones we turned to for all forms of support. We always knew that drone strikes were wrong, that they encroached on Pakistan’s sovereign territory. We knew that innocent civilians had been killed. However, we did not realize how callous and cruel it could be. The community is now plagued with fear. The tribal elders are afraid to gather together in jirgas, as had been our custom for more than a century. The mothers and wives plead with the men not to congregate together. They do not want to lose any more of their husbands, sons, brothers, and nephews. People in the same family now sleep apart because they do not want their togetherness to be viewed suspiciously through the eye of the drone. They do not want to become the next target.”

Spear’s silver lining
The Centre for the Study of Democracy’s Steven Friedman argues that the controversy over a painting depicting South African President Jacob Zuma’s genitals will have done some good if it leads to an acknowledgment of the sense of frustration among many that “minority rule is still with us.”
“[The solution] rests, rather, in recognising that the attitudes that made apartheid possible have not disappeared and that those who were powerful then still are — not in politics, perhaps, but in the economy, in the professions and in our cultural life. To name but one example — despite constant complaints about affirmative action, research shows that it is still harder for black graduates to get work than it is for their white counterparts.
While the row over the painting seems like a diversion, there is nothing trivial about a widespread sense that black people still do not enjoy the respect and access to opportunities due to citizens of a democracy. There is no more important issue than the charge that we are not overcoming our past.”

World Bank transparency
Global Financial Integrity “applauded” the World Bank for committing to the public disclosure of its decisions regarding sanctions against companies and individuals over allegations of fraud and corruption.
“ ‘Knowing which companies have been debarred is helpful, but understanding why a company has been debarred is critical in the fight against fraud and corruption.  The methods used by companies and individuals, who are defrauding the World Bank, are methods used to defraud governments, businesses, and individuals globally,’ [said GFI’s Heather Lowe.]”

Latest Developments, May 30

In the latest news and analysis…

Creative accounting
The New York Times reports on the Obama administration’s controversial approach to labelling drone strike casualties.
“It in effect counts all military-age males in a strike zone as combatants, according to several administration officials, unless there is explicit intelligence posthumously proving them innocent.

This counting method may partly explain the official claims of extraordinarily low collateral deaths. In a speech last year [John] Brennan, Mr. Obama’s trusted adviser, said that not a single noncombatant had been killed in a year of strikes. And in a recent interview, a senior administration official said that the number of civilians killed in drone strikes in Pakistan under Mr. Obama was in the ‘single digits’ — and that independent counts of scores or hundreds of civilian deaths unwittingly draw on false propaganda claims by militants.
But in interviews, three former senior intelligence officials expressed disbelief that the number could be so low.”

Lagarde’s taxes
The Guardian reports that IMF head Christine Lagarde, who recently stirred controversy by bluntly suggesting that Greeks ought to pay their taxes, does not pay taxes.
“As an official of an international institution, her salary of $467,940 (£298,675) a year plus $83,760 additional allowance a year is not subject to any taxes.

According to Lagarde’s contract she is also entitled to a pay rise on 1 July every year during her five-year contract.”

Rules needed
Reuters reports that Oxfam is stepping up its calls for “legally binding global rules on weapon and ammunition sales” in the run-up to a UN conference aimed at establishing an international arms trade treaty.
“There are no internationally agreed rules governing global conventional weapons sales, the United Nations says, and Oxfam says there are more regulations applicable to the banana trade than to weapons.
The aid agency also said the estimated $4.3 billion annual global trade in ammunition is growing at a faster rate than the trade in guns and must be included in any arms treaty.

The United States, Syria and Egypt are among countries that have objected to the inclusion of ammunition controls in any global arms treaty, according to Oxfam.”

Avaaz ethics
The New Republic raises questions about NGO competition and self-promotion with an investigation of claims made by human rights group Avaaz about its role in Syria’s conflict.
“On the morning of February 28, the activist organization Avaaz reported that it had coordinated [photojournalist Paul] Conroy’s escape to Lebanon and that 13 activists within its network had been killed in the effort. ‘This operation was carried by Syrians with the help of Avaaz,’ read the press release. ‘No other agency was involved.’

A week after his escape, I called Conroy, who was recovering in a London hospital, to ask him about Avaaz’s role. ‘I can sum it up in one word,’ he said. ‘Bollocks.’ ”

Place premium
The Center for Global Development’s Charles Kenny writes about the impact of the country where one lives on one’s earning power.
“So the overwhelming explanation for who is rich and who is poor on a global scale isn’t about who you are; it’s about where you are. The same applies to quality-of-life measures from health to education. And that suggests something about international development efforts: If there’s one simple answer to the challenge of global poverty, it isn’t more aid or removing trade and investment barriers (though those can all help). It’s removing barriers to migration.

Unfortunately, politicians don’t seem to care about whether people born on the wrong side of the tracks have the motivation to cross over, or how much the planet benefits when they do. Instead we’ve erected a huge electrified fence to keep people out. The evidence on the place premium suggests immigration restrictions are probably the greatest preventable cause of global suffering known to man.”

State capture
Queen’s University’s Toby Moorsom writes about the danger Africa’s mining boom poses to the continent’s fragile states.
“Capital is not withdrawing from Africa, but instead, the processes of extraction are becoming more obvious as the economic basis of societies are under severe strain.

The reason we need to worry about these mining investments is not simply because of the human rights violations, the displacement of populations and the pollution of land that accompany them. More than that, we need to be aware of the fact that mining increases the rewards for those forces able to capture the state – regardless of how they go about accomplishing it. Warlords have little need to control the productive activities; they just need to have some control over the proceeds – or at least portions of them.”

With friends like these
Jubilee Debt Campaign’s Nick Dearden argues the World Bank and IMF have played a significant role in the famine and malnutrition that periodically drag Niger into the international media spotlight.
“After many years, debt cancellation for Niger was seen, even by the IMF, as unavoidable. Debt relief allowed Niger to improve education and increase access to safe drinking water. But it came with strings. A 19% sales tax on basic foods and rapidly rising prices put food further out of the reach of ordinary people. The sale of emergency grain reserves, a policy that has already caused famine in Malawi in 2002, did further damage to the population’s vulnerability.
These policies fed into the 2005 famine, a crisis caused not primarily by natural catastrophe – food was available but unaffordable – but by an appalling set of policy decisions. Even during a crisis there was no let-up in economic dogma. The IMF told the Niger government not to distribute free food to those most in need.”

North-South divide
In an Inter Press Service Q&A, former Brundtland Commission staffer Branislav Gosovic says the traditional divide between rich and poor countries remains “deep and intense” on the eve of the Rio+20 summit on sustainable development, which he prefers to call Stockholm+40.
“It should not be surprising that developing countries are rather suspicious of the ultimate motivations and practical implications of the recently launched concept of ‘green economy’ and of the institutional moves to create a specialised agency on environment.

The other conflict, less visible to the eye, has to do with the nature of the dominant socioeconomic order, or paradigm, which is challenged globally as non-sustainable socially and environmentally. This conflict is present within the North and within the South. There has been little progress in practice on fundamental issues of this kind.”