Latest Developments, October 24

In the latest news and analysis…

Unspeakable issue
The New York Times reports that, for the first time since 1988, climate change did not come up during the US presidential debates:

“Throughout the campaign, the candidates have talked a great deal about energy, but it has essentially been a competition in who could heap the most praise on fossil fuels. They tended to avoid any explicit linkage between their energy proposals and climate risk.

‘No candidate has been able to portray climate change policy as a win-win,’ Eugene M. Trisko, a lawyer and consultant for the United Mine Workers of America, said on Tuesday. ‘That’s because they understand that the root of climate change mitigation strategy is higher energy costs. It’s an energy tax, and that’s something you don’t want to talk about in a debate.’ ”

Disposition matrix
The Washington Post reports on a new American database, the “disposition matrix,” suggesting the US government intends to continue carrying out targeted killings for years to come:

“The matrix contains the names of terrorism suspects arrayed against an accounting of the resources being marshaled to track them down, including sealed indictments and clandestine operations. U.S. officials said the database is designed to go beyond existing kill lists, mapping plans for the ‘disposition’ of suspects beyond the reach of American drones.
Although the matrix is a work in progress, the effort to create it reflects a reality setting in among the nation’s counterterrorism ranks: The United States’ conventional wars are winding down, but the government expects to continue adding names to kill or capture lists for years.”

Phantom menace
Human Rights Watch’s Bill Frelick and Bangkok-based human rights lawyer Michael Timmins slam the apparent spread of Australia’s “punitive asylum policies” to neighbouring New Zealand:

“The bill provides for the near-automatic detention for six months and beyond of so-called ‘mass arrivals’ (11 people or more) by boat or other unscheduled craft who are ‘potentially illegal.’
What mass arrivals? Notwithstanding 18th and 19th century Europeans who might have met the bill’s ‘mass arrivals’ definition, no modern-era boatload of asylum seekers has ever reached New Zealand. Even if one were to arrive, this would in no way overload New Zealand’s existing asylum system. The hypothetical ‘risk’ does not justify the abdication of principle.”

Justice deferred
The Wall Street Journal reports that the UK looks set to adopt deferred-prosecution agreements, a tool much used by US prosecutors in the fight against corporate wrongdoing, such as the bribing of foreign officials:

“Under a deferred-prosecution agreement, criminal charges would be dropped after a period of time if an organization complies with the terms of a deal, which could include the imposition fines, disgorgement and orders to implement measures to prevent future wrongdoing.

The [US] agreements don’t require a judge’s involvement, and there’s no one to question the fairness of the agreement or to second-guess its terms, as Dealbook’s Peter Henning pointed out in September.
Under the U.K. proposal, however, a judge will have the power to block an agreement if they don’t agree that the settlement is appropriate, the consultation report said.”

Stolen oil
Reuters reports that a Nigerian politician has begun campaigning for a global solution to his country’s oil-theft problem, given that an estimated 90% of Nigeria’s pilfered crude ends up on world markets:

“Oil companies say so called ‘bunkering’ — tapping into oil pipelines to steal the crude — and other forms of oil theft are on the rise in Nigeria, despite an amnesty that was meant to end a conflict there in 2009 over the distribution of oil wealth.
Yet while local gangs hacking into pipelines to steal small quantities for local refining are the most visible sign, it is industrial scale oil theft involving collusion by politicians, the military, Western banks and global organised crime that is the real drain on Nigeria’s resources, [Niger Delta politician Dele Cole] said.
‘International theft is diverting huge quantities … and the sophistication of the exercise — from breaching the pipeline, to having barges, to knowing when ships are at the port, to being paid — is major,’ he said.”

Unwanted comeback
Reuters also reports that malaria “is being transmitted from person to person within Greek borders” for the first time since 1974:

“Species of the blood-sucking insects that can carry exotic-sounding tropical infections like malaria, West Nile Virus, chikungunya and dengue fever are enjoying the extra bit of warmth climate change is bringing to parts of southern Europe.
And with austerity budgets, a collapsing health system, political infighting and rising xenophobia all conspiring to allow pest and disease control measures here to slip through the net, the mosquitoes are biting back.”

Better than nothing
The BBC reports that 10 EU countries – including Germany, France, Italy and Spain – plan to forge ahead with a financial transaction tax despite failing to obtain the support of all 27 member countries:

“Governments across Europe have been implementing drastic austerity measures to cut debt levels, and taxing banks is seen by some as an important way to raise revenues, particularly while the economic recovery remains so fragile.
Opponents argue that unless it is adopted universally, the tax would drive business to financial centres that did not impose the tax.”

Stacked deck
The University of London’s Simon Reid-Henry argues that, while dependency theory has faced some valid criticism over the years, its focus on “the problems of uneven starting points and the structural unfairness of global capitalism” remains relevant today:

“And the underlying critique of western chauvinism (that western-style capitalist democracy is the best model for the rest) remains pertinent when people persist in talking of development ‘ladders’, for example. Perhaps more important, Frank’s belief that we too readily overlook the way that too many of the privileges of the rich nations are not only unearned but predicated upon the prior and active removal of that wealth from others is, if anything, making something of a comeback in these days of heightened discussion of inequality.”

Latest Developments, September 19

In the latest news and analysis…

Strike over
Reuters reports that workers at Lonmin’s Marikana mine in South Africa have accepted a 22-percent pay increase to end six weeks of deadly labour unrest:

“The Marikana police shootings were the deadliest security incident since the end of white minority rule in 1994 and, for many South Africans, painfully recalled security force massacres of black demonstrators under apartheid.
In all, 45 people died in the Marikana unrest, which spread beyond Lonmin to other platinum firms around Rustenburg and some gold mines.”

Towards transparency
The Wall Street Journal reports that a “key panel of the European parliament” has voted in favour of proposed rules that would require oil, gas and mining companies to declare what they pay to foreign governments:

“Under the proposal approved Tuesday, companies would have to disclose all payments of more than 80,000 euros ($105,000) on a country-by-country basis, and would have to specify how much money was allocated to each project.

The rules approved by the committee would delete a provision in the European Commission legislation that exempted companies from making disclosures barred by the host country.”

Asbestos rebirth
The Montreal Gazette reports that a Canadian asbestos mine is expected to reopen despite the federal government’s decision to stop opposing the controversial mineral’s inclusion on a UN list of hazardous substances:

“Adding asbestos to the hazardous-substances list under the United Nations Rotterdam Convention would require exporting countries to inform importing countries about the hazards of using it, and to include safe-handling and proper precautionary measures.

Although other countries could try to block the addition of asbestos, it is Canada that has worked hardest to prevent that from happening, said Kathleen Ruff, a human-rights adviser to the Rideau Institute.”

Restricting restrictions
IRIN reports on a new study that calls on the World Trade Organization to ensure that poor countries are exempted from the food export restrictions of other nations:

“The WTO allows countries to impose export restrictions and bans as a temporary measure to address critical food shortages. But these restrictions affect poor countries, which buy most of their food supply, in two ways: They push food prices up globally, making it more expensive for poor countries to buy food, and they force food-importing countries to shop for deals long distances away.

In April 2011, the net food-importing developing countries (NFIDCs) submitted an informal proposal at the WTO for a new paragraph to be included in the draft Doha Accord exempting them and the [Least Developed Countries] from export restriction put in place by other countries. UN agencies and most food experts agree that export restrictions influence sharp spikes in prices, helping to drive food prices up during 2007/2008 crisis. At least 23 countries had either banned or imposed restrictions on the export of cereals then, according to the [International Centre for Trade and Sustainable Development] study.
The proposed exemption was not adopted by the WTO.”

Big fish
Agence France-Presse reports that the former head of French oil giant Elf has been extradited to Togo to face a charge of “accessory to fraud”:

“The former Elf CEO was questioned by a Togolese judge for about three hours Monday, following his lightning-fast extradition from Ivory Coast over the weekend.
His legal team had condemned the international transfer, which came the day after his arrest in Ivory Coast’s economic capital Abidjan on Friday as he tried to board an Air France flight to Paris.

[Loik] Le Floch-Prigent, currently an oil industry consultant, has already served jail terms in France for corruption which dated from his time as head of Elf from 1989 to 1993.”

High-frequency trading
The Bureau of Investigative Journalism reports that the UK is “trying to water down” efforts by European politicians to rein in a form of trading widely blamed for increasing volatility:

“Several influential MEPs are determined to clamp down on the use of sophisticated computer algorithms and fast connections to generate profits through huge numbers of high-speed trades, after seeing its role in the notorious 2010 US Flash Crash and the collapse of Knight Capital last month.

Fuelled by fears over potential market shocks and unease that markets appear dominated by speculators, the European parliament is cracking down on the industry through the revised Markets in Financial Instruments Directive (Mifid), which shapes financial markets across the European Union.”

Cookie-cutter justice
Wayne State University’s Peter Henning asks whether deferred and nonprosecution agreements make sense as “the new standard for how the [US] Justice Department deals with criminal conduct by corporations”:

“It seems as if we are coming perilously close to cookie-cutter justice in corporate criminal investigations. Everyone by now knows the drill: turn over the results of an internal investigation, highlight how damaging a conviction would be and then offer to pay the fine and put in place an enhanced compliance program. The press release almost writes itself, but it is the rare case in which senior management pays any price.
Deferred and nonprosecution agreements are here to stay because they give the Justice Department a means to police corporations while mitigating the full impact of the criminal law. They occupy a middle ground between the sledgehammer of criminal charges and giving a company a free pass.”

Asymmetrical delusions
Warwick University’s Robert Skidelsky argues that “current counter-insurgency orthodoxy” has not incorporated the lessons of Algeria and Vietnam:

“Even putting aside moral and legal questions – which one should never do – it is doubtful whether the strategy of torture and assassination can achieve its pacifying purpose. It repeats the mistake made in 1957 by [French General Jacques] Massu, who assumed that he faced a cohesive organization with a single command structure. Relative calm was restored to Algiers for a couple of years after his arrival, but then the insurgency broke out again with redoubled strength, and the French had to leave the country in 1962.
Today, the international community similarly misconceives the nature of the ‘war’ that it is fighting. There is no single worldwide terrorist organization with a single head. Insofar as Al Qaeda still exists at all, it is a Hydra that sprouts new heads as fast as the old ones are cut off. Trying to win ‘hearts and minds’ with Western goods simply corrupts, and thus discredits, the governments established by those intervening. It happened in Vietnam, and it is happening now in Iraq and Afghanistan.”

Latest Developments, August 1

In the latest news and analysis…

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

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

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

“Ban on Tuesday named personalities ranging from Queen Rania of Jordan and German former president Horst Kohler to Tawakel Karman, the 2011 Nobel Peace Prize winner for her activism in the uprising in Yemen, and the mayor of Istanbul Kadir Topbas.

The corporate world is represented by Paul Polman, the Dutch chief executive of Unilever and Betty Maina, chief executive of Kenya’s Association of Manufacturers.”

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

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

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

“Instead, attention has focused on AFRICOM, the unified U.S. Africa Command that the Pentagon established in 2007. It is playing an increasingly important role as the United States pumps resources into training African militaries.

J. Peter Pham, director of the Africa program at the Atlantic Council, said Washington’s emphasis on security, coupled with the lack of new economic initiatives, had shifted the balance in U.S. ties with Africa.
‘It is militarization by default,’ Pham said. ‘Part of the reason is the U.S. interest in fighting al Qaeda, and part of it is because of the weakness of our African partners which are unable to contain these threats themselves.’ ”

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

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

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

“The U.K. Ministry of Justice published a much-anticipated consultation paper recently on whether to adopt DPAs in an effort to fight corporate bribery and corruption without having to win a conviction in every case.

The U.K.’s Solicitor General and Serious Fraud Office are firmly in support of adopting the use of DPAs in Britain. As the consultation paper points out, enforcement agencies often rely on companies to self-report wrongdoing due to a lack of tools and resources. Without the ability of prosecutors to offer a plea deal, however, companies have little incentive to self-report, especially if doing so may result in a criminal conviction.”

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

“Like those before him, [American fraudster and launderer Jeffery Lowrance] found that about $130 and a little online paperwork let him set up a shell company in New Zealand without stepping foot in the country or having any financial presence. He registered First Capital Savings & Loan to an Auckland address but ran his scheme from Panama.

Some say New Zealand has yet to get serious about stopping abuse. Financial blog naked capitalism has repeatedly accused New Zealand of playing the equivalent of the arcade game ‘Whac-a-Mole’ by knocking down illegitimate operators as they pop up but not dealing with the systemic problems that give rise to the abuse.”

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

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