Latest Developments, September 26

In the latest news and analysis…

Waiting for the politicians
Grist reports that 11 major engineering organizations have issued a joint statement saying a lack of political will, rather than technological shortcomings, are standing in the way of an 85-percent cut in global emissions by 2050.
“The statement calls on world leaders to reach a global commitment to emissions reduction and energy efficiency at December’s COP17 climate change talks. Once that commitment is in place and adequately backed up, say the engineers, the technology is there to carry it out.”

Killer profits
The Arms Trade Treaty Monitor has collected statements made last week to the UN General Assembly by the leaders of countries such as Mexico, Nigeria, Ghana and Costa Rica concerning the agreement which should be finalized in 2012.
“It is unjust and inhuman that the profits of the arms industry should decide the deaths of thousands of people,” according President Felipe Calderón of Mexico.

Untapped markets for unmanned aircraft
The Globe and Mail reports worldwide drone sales are expected to double over the next decade but with a sluggish US market, the quest for profits could trump proliferation concerns.
“Both surveillance and armed U.S. drones, which have been widely deployed in Afghanistan and Iraq, have received strong interest from Japan, Australia, Saudi Arabia and nuclear neighbours India and Pakistan, among others.”

Trafficking losses
The Financial Times reports on the Organisation for Economic Cooperation and Development’s growing interest in cracking down on loopholes that enable companies to play one country against another in order avoid paying taxes.
“The OECD last year highlighted its fears about the ability of banks to use losses accumulated since the financial crisis – calculated by the OECD to be worth $700bn – as a tool for aggressive tax planning. Among the concerns is ‘loss trafficking’ – schemes in which losses are sold to other companies to reduce their tax payment. In a report published in August, the OECD also warned about aggressive tax planning concerning the carry-forward of ‘vast’ corporate losses than can be as high as 25 per cent of gross domestic product in some countries.”

G20 and tax dodging
Christian Aid’s David McNair accuses G20 finance and development ministers of “backing away from their commitments to help poor countries collect more of the billions they lose to tax dodgers” at last week’s meeting in Washington.
“If the G20 were serious about harnessing the power of tax against poverty, they would have made a specific commitment to the big solution to tax dodging – financial transparency. Such transparency would make life far harder for companies and individuals hiding wealth in tax havens, not to mention the multinationals that use financial secrecy to dodge billions in tax in poor countries.”

Dodgy oil contracts
A new Global Witness report calling for reforms in Liberia’s oil sector also touches on some questionable behaviour by American oil giant Chevron.
“In 2007, Nigeria’s Oranto Petroleum authorized a bribe to be paid to the Legislature in connection with the passage of at least one of its contracts. In 2010, US company Chevron purchased a 70 % share of the same contracts, despite information about how they were obtained being in the public domain.”

Oversimplifying the economy
University of Toronto historian Michael Bliss suggests the thinking underlying the last few decades of Western economic policy reveal “a naive, self-serving misreading of history” and warns against anyone who suggests “obese and addicted societies” can painlessly right themselves by pushing the right fiscal buttons.
“The danger of listening to the people who oversimplify the past and then oversimplify the present… is that they really can make things worse, especially when they propose to dope us up on more of the same. The longer we avoid accepting complex, unmanageable realities, and the real discomforts involved in convalescence and recovery, the more we risk the long-term future for our children and grandchildren.”

The power of aid
The Guardian reports on the remarkable similarities between the UK’s “centre right development policy,” as described by the man who runs it, Andrew Mitchell, and the development policy of the ostensibly centre left Obama administration.
“Over the past 18 months, the US and the UK have been treading very similar development policy paths. As well as results, both talk about the important role to be played by the private sector, and by science and technology, in bringing about development. And both pepper speeches and announcements with mentions of national interests, security and power. The opening line of the executive summary in the USAid policy framework for 2011 to 2015, published earlier this month, provides a clear example. ‘International development co-operation is a key component of American power, along with diplomacy and defense,’ it reads.”

Latest Developments, September 23

In today’s latest news and analysis…

Normalizing drones
Reuters reports on the deterioration in US-Pakistan relations, with the most recent incident – chairman of the US Joint Chiefs of Staff Admiral Mike Mullen’s allegation that Pakistan’s intelligence agency is a “veritable arm” of the violent Haqqani network which operates inside Afghanistan – suggesting targeted assassinations have become less controversial than harsh words expressed publicly.
“Mahmud Durrani, a retired major general and former Pakistani ambassador to Washington, said both sides should ease tensions to avoid American military action beyond drone strikes or economic sanctions.”

Arming against democracy
Human Rights Watch has called on the US to hold off on selling $53 million in armoured vehicles and missiles to Bahrain in light of alleged abuses committed against “peaceful critics” of the regime.
“It will be hard for people to take US statements about democracy and human rights in the Middle East seriously when, rather than hold its ally Bahrain to account, it appears to reward repression with new weapons,” according to the group’s deputy Washington director, Maria McFarland.

Who you gonna believe?
In the aftermath of Oxfam allegations that a British company’s carbon offset project in Uganda had led to the forcible eviction of more than 20,000 people, the Wall Street Journal reports the New Forests Company said all relocations were “voluntary, legal and fully respected and in accord with all stringent protocols” and the World Bank said the project “had met its standards so far.”
“Matt Grainger, an Oxfam spokesman and co-author of the Uganda report, faults New Forests and its investors for not digging deeper into the project. In interviews with hundreds of former residents, he said, ‘we can’t find any evictee that doesn’t describe violence….We can’t find anybody who was compensated.’”

Diplomatic oil leak
The Courthouse News Service reports on Wikileaks cables describing efforts by Chevron to convince the Ecuadorean government to make a massive lawsuit over pollution in the Amazon rainforest go away despite the oil company’s public criticism of the country’s “politicized” courts.
“Chevron had begun to quietly explore with senior GOE officials whether it could implement a series of social projects in the concession area in exchange for GOE support for ending the case, but now that the expert has released a huge estimate for alleged damage, it might be hard for the GOE to go that route, even if it has the ability to bring the case to a close,” according to a note written by former US ambassador Linda Jewell April 7, 2008.

Putting the green in greenwash
A new Bottom Up Thinking post suggests that even if companies that donate funds to tropical conservation “are consciously attempting to atone for their ‘bad’ acts elsewhere that have harmed the cause of conservation,” pragmatic engagement may be the best approach.
“Wrapped up in all this is one of the big questions of CSR: compensatory philanthropy versus integration into core business practices. I think just about everyone agrees that it is better not to sin in the first place, than to make some later atonement, and thus conservation BINGOs need to be wary of cosying up to big polluting businesses who are fundamentally uninterested in changing their ways… But on the other side of the coin, we must be realistic: the modern world consumes an awful lot of resources (hydrocarbons, minerals, timber, food) whose production or extraction is inevitably messy. So, yes, we should constantly push polluters to improve their acts, but we should accept that some environmental damage is unavoidable, and welcome their attempts to atone for this elsewhere.”

With or without you
Embassy Magazine reports that British Prime Minister David Cameron, on a visit to Canada, suggested that an outcome of increased global trade liberalization was more important than a process of inclusive negotiation.
“And if we can’t get a deal involving everyone, then we need to look at other ways in which to drive forward with the trade liberalization the world needs, ensuring the continued work of the WTO preventing any collapse back to protectionism,” he told Parliament. “But going forwards, perhaps with a coalition of the willing where countries like Britain and Canada who want to, can forge ahead with more ambitious deals and others can join later if they choose.”

An end in itself
The Trade Justice Movement’s Ruth Bergan criticizes the G20’s development working group for prioritizing the interests of big business and seeing development as a means to increasing trade.
“While governments are allowed to continue doing business in the G20, we should expect little more than lip service to development and a shopping list of measures to benefit the vested interests of the private sector. The WTO may be in freefall, but we must be vigilant that the G20, which does not even pretend to be democratic or accountable, does not become a substitute.”

The trouble with accountability
The Institute of Development Studies’ Noshua Watson argues that because pressure from domestic voters can reduce the quality of foreign aid provided by governments in wealthy countries, official development assistance needs to be supplemented by other sources of non-state giving.
“The provision of global public goods is dependent on the willingness of the most fortunate to give to the less fortunate. Whether this aid actually contributes to development and wellbeing depends on how aligned donors’ intentions are with recipients’ needs. It also depends on recipients’ capacities to use that aid. Because they are not responsible to the voting public, philanthropies can more closely meet recipients’ needs and help them build capacity.”

Latest Developments, September 20

In the latest news and analysis…

Drones in paradise
The Wall Street Journal reports the US military will begin launching armed drones from the Seychelles as it steps up its campaign against perceived terror threats in East Africa.
“The U.S. has used the Seychelles base for flying surveillance drones, and for the first time will fly armed MQ-9 Reapers from the Indian Ocean site, supplementing strikes from a U.S. drone base in Djibouti.”

Radical corporate transparency
A new Publish What You Pay report on 10 major extractive industry companies details the extent to which they rely on subsidiaries in “secrecy jurisdictions” – 2,083 such subsidiaries between the corporations examined – to maximize profits and, according to PWYP, deprive poor countries of massive amounts of income.
“This is why, in order to combat this veil of secrecy, PWYP Norway believes every company should publish their full revenues, costs, profits, tax and the amount of natural resources it has used, written off and acquired in any given year in every country it operates. This is known as country-by-country reporting (CBCR).”

Resource extraction and indigenous rights
The UN’s top expert on the rights of indigenous peoples, James Anaya, has released the results of an extensive questionnaire-based study that suggests natural resource extraction and other major construction projects are having adverse effects on indigenous communities around the world.
“The vast majority of indigenous peoples’ responses, many of which stemmed from the direct experience of specific projects affecting their territories and communities, rather emphasized a common perception of disenfranchisement, ignorance of their rights and concerns on the part of States and businesses enterprises, and constant life insecurity in the face of encroaching extractive activities,” according to Anaya.

Taking the long view
Mongolian President Tsakhia Elbegdorj spoke to Reuters about a law that bans mining in his country’s river and forest areas.
“Half of the territory is covered by exploration licenses. I think that’s enough,” he said.
“We have to save our wealth (for) our next generation.”

Massive Chevron payout looming?
A US appeals court has overruled a lower court’s decision that prevented Ecuadoran plaintiffs from collecting billions in damages (awarded by an Ecuadoran judge) from oil giant Chevron over pollution in the Amazon rain forest.
“In February, a judge in Ecuador ruled that Chevron should pay to clean up contamination in the oil fields where Texaco, bought by Chevron in 2001, once worked. But the company persuaded a U.S. judge to block enforcement, arguing that the verdict was the result of fraud. Chevron even filed a criminal conspiracy case against the Ecuadorans.”

Fraud refund
The Institute for Accountability in Southern Africa’s Paul Hoffman draws attention to a legal precedent he thinks should be relevant to the inquest called last week by South African President Jacob Zuma into a 1999 arms deal that is alleged to have involved bribes from a number of foreign companies.
“These findings, still good law, on the effect of bribes on contracts are the key to obtaining the refund of purchase prices paid to arms dealers who allegedly bribed their way into contention in the arms deals. A R70bn [US$ 9 billion] bonanza for taxpayers is surely a worthwhile endeavour.”

Abetting repression
The BBC reports UK-based Gamma International is denying that it supplied software to the ousted Egyptian regime so that it could monitor online voice calls and emails.
“The files from the Egyptian secret police’s Electronic Penetration Division described Gamma’s product as “the only security system in the world” capable of bugging Skype phone conversations on the internet.
They detail a five-month trial by the Egyptian secret police which found the product had ‘proved to be an efficient electronic system for penetrating secure systems [which] accesses email boxes of Hotmail, Yahoo and Gmail networks’.”

With friends like these…
Development consultant Ian Smillie says Western governments and the humanitarian organizations that serve as “fig leaves covering up the inattention” of the international community will have to start behaving very differently in Somalia if they want to help provide long-term solutions to the conflict-racked, famine-stricken country.
“None of the humanitarians, [the Canadian International Development Agency] included, has anything to say about the roller-coaster involvement of the West in Somalia, alternately arming, then aiding, then invading, then abandoning the country – then supporting an Ethiopian invasion that led to the rise of the extremist al-Shabaab militia and their brutal but entirely logical expulsion of Western aid workers.”

Intellectual property vs. cancer treatment
The Guardian’s Sarah Boseley writes that the UN conference on non-communicable diseases has focused almost exclusively on prevention rather than treatment, an outcome the US and EU lobbied hard to achieve.
“The pharmaceutical industry and its supporters in the EU and US where research and manufacturing takes place are very keen that nobody should get the idea that a declaration which allowed poor countries to bypass patents and obtain cheap copies of normally expensive Aids drugs should in any way be mentioned in the context of NCDs. That might open the doors to developing nations using the legislation to obtain new cancer and heart drugs – which make huge profits for the companies in the rich world.”

Patents around the world
The UN News Centre reports new figures showing the number of international trademark and patent application rose in 2010, though global distribution remains highly uneven.
“The top 10 patent offices accounted for approximately 87 per cent of all [trademark] applications in 2009, with the United States, Japan and China filing about 60 per cent of the total.”

Latest Developments, September 14

In the latest news and analysis…

Moving beyond aid
In a speech entitled “Beyond Aid,” World Bank President Robert Zoellick argued wealthy countries have not yet adapted to a rapidly emerging multipolar world and continue to take a “do what I say, not what I do” approach to international relations.
“In a world Beyond Aid, sound G7 economic policies would be as important as aid as a percentage of GDP. In a world Beyond Aid, G-20 agreements on imbalances, on structural reforms, or on fossil fuel subsidies and food security, would be as important as aid as a percentage of GDP.”

Self-interested aid
Looking into the Canadian International Development Agency’s near future, the McLeod Group’s Stephen Brown and Ian Smillie see funding cuts and shifting priorities that have little to do with improving the lives of the poor in other countries.
“For instance, as Canada winds down its military involvement in Afghanistan, the Canadian International Development Agency will be “normalizing” aid to a level comparable to its 19 other “countries of focus.” This confirms a poorly-kept secret: aid to Afghanistan was always more about Canadians, candy and Kandahar than about sustainable long-term development.”

Resource curse
ECONorthwest’s Ann Hollingshead says the so-called resource curse is too often seen as a problem for the countries with said resources to resolve on their own.
“Above, I said the resource curse is “seemingly” an issue of national jurisdiction. That deserves some explanation. Governance itself is an issue of national jurisdiction, but the extractive industry that drives the supply of these resources is not. Most of these companies are, in fact, American and European and—therefore—are accountable to the governments of America and Europe. It is these companies, with their corrupt practices and lack of accountability, that facilitate the embezzlement and revenue misappropriation, which directly contribute to the resource curse.”

Population
The Overseas Development Institute’s Claire Melamed takes exception to arguments pinning poverty, hunger and climate change on population growth.
“Climate change is not a population problem.  It’s a consumption problem.  People in rich countries, where population is static or falling, consume many hundreds of times more carbon than people in the poor countries where population is still rising.  Let’s start with the problem we have now – consumption in rich countries – rather than worrying about some hypothetical future when everyone in Mali has a washing machine and two cars.”

Drones
University of Ottawa political scientist Roland Paris calls for the establishment of clear international rules regulating the use of drones before the technology becomes widespread.
“The U.S. seems to be taking the opposite course, extending its drone campaign to countries far removed from the war zones of Iraq and Afghanistan – including Yemen and Somalia – and using rules of engagement that are, at best, obscure and, at worst, illegal.
This is a dangerously short-sighted strategy. While execution by drone may appear to be a relatively low-cost and low-risk option for dealing with America’s enemies, it legitimizes methods that other countries may be expected to follow once they acquire similar capabilities.”

Mercenaries
The UN News Centre reports a UN panel has called for tighter regulation of private military and security companies “by both host and contributor countries” in order to reduce the risk of human rights violations and to ensure accountability when abuses occur.
“The panel…noted in its report on Iraq that incidents involving private military and security companies there had dropped since the killing of 17 civilians and wounding of 20 others in Nissour Square in Baghdad by employees of the United States security company Blackwater in 2007.
But it added that Iraq continues to grapple with the grant of legal immunity extended to private security contractors by US authorities after the 2003 invasion, preventing prosecutions in Iraqi courts while the case against the alleged perpetrators is still pending in US courts.”

AfriCom
The Hill reports the head of the US military’s three year-old Africa Command thinks looming Pentagon budget cuts are the biggest, though not the only, reason not to establish physical headquarters in Africa.
“Since AfriCom was formally established in October 2008, Pentagon officials and lawmakers have floated the idea of shifting its main hub from Stuttgart, Germany, to Africa or the United States.
But U.S. officials are hesitant to have a permanent and high-profile U.S. military presence on African soil due to indigenous skepticism about such an arrangement, which has left no clear candidates for its permanent home.”

Banking secrecy
The European Network on Debt and Development’s Alex Marriage says opposition to the so-called Rubik plan, whereby Swiss banks hand over tax money to national governments in exchange for maintaining their secrecy, could scupper a recent bilateral deal with Germany.
“The [Social Democratic Party]’s financial concept note published last Monday rejects the agreement with Switzerland. It is now quite likely that the deal will be rejected by the Upper Chamber, the Bundestat. North Rhine Westphalia’s Finance Minister Walter Borjans argued that effectively giving an amnesty to tax evaders was unconstitutional. Nicolotte Kressl and  SPD finance experts in the Bundestag said the deal should be halted as not to undermine EU efforts to secure automatic exchange of information with Switzerland.”

Corporate transparency
The Wall Street Journal reports the European Parliament has adopted a report that calls for laws to enforce transparency from oil, gas and mining companies.
“The report, which was first released July 25, contains a provision that calls for the EC to “establish legally binding requirements for extractive companies to publish their revenue payments for each project and country they invest in, following the example of the U.S. Dodd-Frank bill,” it said.”

Tobacco
The Guardian reports approximately 85 percent of the world’s tobacco is produced in the global south, often through the use of children as young as five working long hours under poor health conditions.
“The tobacco giants, who all have anti-child labour policies in place, insist they abide by the rules. British American Tobacco (BAT) says on its website that it does “not employ children in any of our operations worldwide”, but admits that using intermediaries to purchase tobacco makes it difficult to trace the country from which they buy the leaf and ensure all farm owners follow the rules.”

Latest Developments, August 16

In the latest news and analysis…

German Chancellor Angela Merkel and French President Nicolas Sarkozy met to discuss a way out of the financial crisis currently spreading across Europe. While they spoke of greater integration, they dismissed as premature the idea of euro bonds that would make all members jointly responsible for the debt of each member. The two leaders did, however, propose a tax on financial transactions both to generate revenue and to discourage speculation, but it is far from certain they will have the support necessary to implement it: “Both Merkel and Sarkozy have mentioned the prospect in the past, but resistance from the US and UK — and promises that firms will pull up stakes and do business elsewhere — has held back efforts by any one jurisdiction from pressing ahead,” according to the Wall Street Journal.

While Europe and America struggle with taming massive public debt, Cote d’Ivoire is opting to skip debt payments even though it has sufficient funds to meet its obligations. Perhaps surprisingly, the International Monetary Fund appears to approve of the decision: “I think that [investors] would be happier with a government that missed a few [payments] and made it up later and had a strong recovery, than a government which met its debt service in a timely manner but failed to relaunch the economy,” the organization’s local director told Reuters.

The UN’s World Food Programme acknowledges that some of its aid to Somalia has disappeared but calls the scale of theft recently reported by the Associated Press “implausible.” Calling the food crisis in the Horn of Africa “man-made,” a World Bank economist says controls on local markets are to blame for high food prices that are exacerbating widespread hunger. “Maize is cheaper in the United States and in Germany than it is in eastern Africa,” according to Wolfgang Fengler. Cambridge University’s David Nally agrees the current humanitarian disaster is not a purely natural one but unlike Fengler, believes the world’s powerful countries must share in the blame for what he considers violence: “The portrayal of the passive victim enables NGOs and Western governments to assume the role of rescuer without having to ask uncomfortable questions about their own complicity in the suffering that is unfolding.” Although he stresses that there is no “clearly identifiable agent” responsible for the famine, he believes the global economy and its priorities play a substantial role. Nally concludes by arguing “the more it’s shown that “the sort of thing which happens in that place” is partly an outcome of policies designed in this place, the more responsibility we have to do something about it. When viewing images of starving children or reading about deaths from malnutrition in the daily newspapers, we ought to consider critically the architecture of violence behind the picture or story, not merely the sad abjection of the victim. There is a need, as Susan Sontag once said, to put privilege and suffering on the same map.”

The Associated Press’s Jonathan Fahey writes that the “golden decade” of America’s defense industry has ended and its companies’ shares are likely to continue their downward trend. But one area that may prosper, given the financial and human resources advantages it offers, is the development and manufacture of drones: “The era of manned airplanes should be seen as over,” according to the Brookings Institution’s Michael O’Hanlon. The latest in drone technology is on display in Washington, DC this week at the Association of Unmanned Vehicle Systems International annual convention. And far away from the showroom floor, a US drone strike has reportedly killed four people in Pakistan.

The US pursued 3.5 foreign bribery cases for every one undertaken by the rest of the world during the last decade, according to the new Global Enforcement Report released by Trace International. In other corporate accountability news, the back-and-forth continues following last week’s New York Times op-ed that claimed a piece of American legislation aimed at preventing minerals from fuelling conflicts is actually having a devastating effect on the Democratic Republic of Congo. In a letter to that same paper’s editor, Margot Wallstrom, UN special representative of the secretary general for sexual violence in conflict, argues “the United States government should be commended for its leadership in trying to regulate “conflict minerals” and to starve rebels of the resources and weapons they need to kill and rape.”

The Center for Global Development’s Kimberly Ann Elliott makes a case for imposing so-called Deterrence of Illegitimate Resource Transfers (DIRT) sanctions on Syria. To impose such sanctions would mean to “declare that any new loans to the Syrian government, and new contracts with the state-owned oil industry, are illegitimate and need not be honored by a democratic successor government.” As with normal sanctions, the DIRT variety would aim to diminish the resources of a leader deemed undesirable by the international community (in whole or in part) and to motivate said leader to change his or her ways. But these specialized sanctions would also “spare a future, legitimate government and its people from having to repay an “odious debt” or abide by contracts tainted by corruption” while allowing it to “still retain access to international credit markets.”