Latest Developments, May 9

In the latest news and analysis…

Democratic castration
Cambridge University economist Ha-Joon Chang argues that the imposition of austerity has turned the present into “nothing less than crunch time for democracy” in Europe:

“In particularly difficult economic times, it was even argued, we need to insulate economic policies from politics altogether. Latin American military dictatorships were justified in such terms. The recent imposition of ‘technocratic’ governments, made up of economists and bankers who have not been ‘tainted’ by politics, on Greece and Italy comes from the same intellectual stable.
What free-market economists are not telling us is that the politics they want to get rid of are none other than those of democracy itself. When they say we need to insulate economic policies from politics, they are in effect advocating the castration of democracy.”

New boss
The Guardian reports that the World Trade Organization has chosen its next head, with the selection process mirroring the rich-poor divide that has left the Doha round of trade talks stalled for years:

“Ultimately, [Roberto] Azevêdo won the backing of a majority of the WTO’s 159 members, despite a lack of support from many rich countries.
‘Had [Herminio] Blanco won – with transatlantic support behind him, plus the support of Japan and Korea – it would have looked like another rich-country stitch-up of an international [organisation] job, and that would have been very unhelpful in terms of getting progress at the WTO,’ says [the University of St Gallen’s Simon] Evenett. ‘In that sense, the outcome that we have is good for the organisation.’

He added: ‘We all wish him well, but what can he do to change negotiating positions in national capitals? The answer is not much.’ ”

The Corruptors
Inter Press Service reports on some of the reactions to revelations of “bags of cash” being given by the CIA to Afghan President Hamid Karzai:

“While the United States preaches ‘good governance’ to developing countries at the United Nations, says one African diplomat, ‘it has been doing the reverse in its own political backyard’.
And good governance not only includes multi-party democracy, rule of law and a free press but also transparent and corruption-free regimes.
Michael Ratner, president emeritus of the New York-based Centre for Constitutional Rights (CCR), told IPS, ‘If the U.S. ever stood for good government and democracy, it does not any longer.’ ”

Tainted profits
Norway has announced it has dropped an American and a Chinese tobacco producer from the government pension fund:

“The Ministry of Finance has decided to exclude Schweitzer-Mauduit International Inc. and Huabao International Holdings Limited based on the recommendation from the Council on Ethics. In accordance with the guidelines, the decision to exclude is made public once the shares are sold.”

More bodies
The BBC reports that the death toll at the collapsed Bangladeshi garment factories, which supplied a number of Western retailers, has now risen above 800:

“Authorities are continuing to search the rubble for more bodies two weeks after the Rana Plaza building collapsed on 24 April.

Officials say about 2,500 people were injured in the collapse and that 2,437 people have been rescued.

The EU has said it is considering ‘appropriate action’ to encourage an improvement in working conditions in Bangladesh factories.”

Outsourcing lethality
Foreign Policy’s Micah Zenko writes about a particular kind of extrajudicial killing that eliminates perceived enemies of the US but “more easily masks US involvement and culpability” compared to drone strikes:

“However, if you’re concerned by the Obama administration’s targeted killing policies, don’t overlook similar attacks conducted by allies and partners who receive U.S. money, weapons, or actionable intelligence. When the United States provides other states or non-state actors with the capabilities that enable lethal operations — without which they would not happen — it bears primary responsibility for the outcome. Whatever drone strike reforms the White House offers, or if additional congressional hearings are held, they must take into account America’s troubling role in client-state targeted killings.”

Gun crazy
ProPublica reports that the majority of US states are enacting legislation that renders federal gun controls irrelevant or illegal:

“Kansas’ ‘Second Amendment Protection Act’ backs up its states’ rights claims with a penalty aimed at federal agents: when dealing with ‘Made in Kansas’ guns, any attempt to enforce federal law is now a felony. Bills similar to Kansas’ law have been introduced in at least 37 other states. An even broader bill is on the desk of Alaska Gov. Sean Parnell. That bill would exempt any gun owned by an Alaskan from federal regulation. In Missouri, a bill declaring federal gun laws ‘null and void’ passed by an overwhelming majority in the state house, and is headed for debate in the senate.”

Petroleum myth
The Globe and Mail reports that former US vice-president Al Gore does not buy the argument that oil is more “ethical” if produced in democratic countries:

“ ‘There’s no such thing as ethical oil,’ he said. ‘There’s only dirty oil and dirtier oil.’ The remark triggered applause from a nearly full house at the Globe-sponsored event at a Ryerson University auditorium.

While noting that the U.S. needed to change to remove the demand for Canadian oil, Mr. Gore also said: ‘I had hoped that Canada would point the way toward a better path, but as yet it has not.’ ”

Latest Developments, November 7

In the latest news and analysis…

Energy governance
Former NATO secretary general Javier Solana and the ESADE Center for Global Economy and Geopolitics’ Ángel Saz-Carranza make the case for a system of global energy governance, arguing that neither an unregulated market nor current multilateral institutions are up to the task.
“Owing mainly to its environmentally negative externalities, an unregulated energy market is not a useful governing mechanism, because it is unable to internalize the environmental costs. It has been calculated that the most contaminating energy sources would have to pay a 70% tax to reflect their negative externalities.
A substantial lack of information in this field is another reason why the free market doesn’t work. Often, as with the properties of a gas reserve, for example, information is technically difficult to obtain. In addition, governments consider natural resources to be strategic and don’t release information about them. Finally, time frames related to energy are usually long: centuries for environmental effects or decades for investments to pay off. Thus, energy must be governed through a system of cooperation and regulation.”

Covert war
The Bureau of Investigative Journalism’s Pratap Chatterjee argues the CIA must prove that two Pakistani boys, aged 12 and 16, who were killed last week in a drone strike posed an imminent threat to US security or else it is guilty of murder.
“Over 2,300 people in Pakistan have been killed by such missiles carried by drone aircraft such as the Predator and the Reaper, and launched by remote control from Langley, Virginia. Tariq and Waheed brought the known total of children killed in this way to 175, according to statistics maintained by the organisation I work for, the Bureau of Investigative Journalism.”

First, do no harm
The University of London’s Donna Dickenson writes about the recent discovery that American researchers intentionally infected hundreds of Guatemalans with syphilis in the 1940s, and she warns against ethical complacency today as more and more clinical drug trials are conducted in poor countries.
“In fact, one should view the Guatemalan study, with its incontrovertible horrors, as an extreme example of the biggest ethical problems in research today. Now, as then, richer developed countries are able to put pressure on weaker, poorer ones.
A report in 2010 revealed that foreign citizens made up more than three-quarters of all the subjects in clinical trials conducted by US firms and researchers. The US Food and Drug Administration inspected only 45 of these sites, about 0.7 per cent. There is no suggestion that Third World patients are deliberately being made ill when research is outsourced – unlike in the Guatemalan case – but that does not attenuate the inherent vulnerability of populations lacking basic medical care or experiencing epidemics.”

Investment agreements
The Guardian reports on bilateral investment treaties and how their investor-state dispute mechanism is a powerful and increasingly popular tool for transnational corporations to sue governments whose policies threaten their profits.
“There is growing concern among legal experts and the countries hit by these legal cases that the investment regime, made up of a patchwork of bilateral investment treaties and multilateral agreements, favours corporations over the public interest, puts sovereignty at stake, is chronically lacking in transparency and accountability and has been mis-sold to many developing countries that only realise exactly what they have signed up for when they get sued.

In the last 15 years multinational corporations have increasingly recognised the potential of the ISDM, and this area of law – in which lawyers and arbitrators can command fees of $500 an hour and more – has seen a rapid expansion. A UN report in 2010 noted that 57% of all known cases have been brought in the last five years, with growing numbers of law firms opening large, dedicated sections.”

Affordable medicine
Intellectual Property Watch reports the Medicines Patent Pool, whose goal is to improve access to effective HIV/AIDS treatments in poor countries, has responded to criticism of a deal it signed with a major pharmaceutical company earlier this year.
“The Pool said in its response that the Gilead deal is not a template for the future, and that it includes more countries in its scope than any other HIV licence to date. The response also details how the licence does not undermine flexibilities contained within the World Trade Organization Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). It also seeks to address concerns related to production of generic products in India and elsewhere.”

Ethical oil
Nobel laureates Jody Williams and Desmond Tutu argue one of their own, US President Barack Obama, will take “one of the single most disastrous decisions of his presidency concerning climate change and the very future of our planet” if he approves construction of the Keystone XL pipeline that would transport oil from Canada’s controversial “tar sands” to the Gulf of Mexico.
“The claim that Alberta’s fossil fuels are “ethical” because Canada is a friend is a specious ploy aimed at perpetuating the world’s addiction to fossil fuels. There is no such thing as ethical fossil fuel, regardless of geographical origin. The ethical choice is to move as quickly as possible away from fossil fuels, period.”

Roadmap for sustainable development
The UNDiplomatic Times’s Bhaskar Menon calls for a specific course of action to be mapped out at next year’s Rio+20 summit in order to actually undertake the radical changes needed to achieve sustainable development.
“The [UN] secretary-general’s report submitted earlier this year to the committee preparing for the [Rio+20] conference noted that to succeed in ‘fundamentally shifting consumption and production patterns onto a more sustainable path’, public policy would have to extend ‘well beyond “getting prices right”’.
However, it did not say what specific policy measures would be necessary. Indeed, nowhere in the massive body of documentation the United Nations has produced since it convened the first Environment Conference in 1972 can we find a single analysis of that issue.”