Tag Archives: global minimum wage

Latest Developments, June 12

Posted on by
Reply

In the latest news and analysis…

Change of plans
Xinhua reports that France has decided to delay its troop withdrawal from Mali until after the July/August presidential election:

“Instead of the 2,000 troops initially intended to stay in Mali until July, the ‘Serval’ force has decided to keep 3,500 soldiers until the end of the presidential election, according to a military source.
…
Two thousand of the 5,000 troops that were in Mali have returned to their bases in France.” [Translated from the French.]

Buyers and sellers
Inter Press Service reports on new land-grab data detailing who is buying and who is selling around the world:

“The U.S., Malaysia, United Arab Emirates and the UK are top foreign investors not only in Africa but in other countries, according to the [International Land Coalition]’s new Land Matrix Global Observatory. The Land Matrix is a website that provides the locations and details of nearly 1,000 land transactions all over the world.
The largest transnational land deals are in South Sudan and Papua New Guinea. The Land Matrix lists the individual land deals including the companies involved, the size of the acquisition and intended use. In Papua New Guinea, many of the land deals appear to be for palm oil production.”

Emerging bubble
The Financial Times reports that the value of “emerging market” currencies, stocks and bonds is plunging as foreign investors unload newly undesirable assets:

“The South African rand and the Brazilian real touched four-year lows against the US dollar on Tuesday, and the Indian rupee fell to a record low. Even relatively robust countries like the Philippines and Mexico – long favourites of investors – have been hit by a spate of selling. Some central banks have begun to intervene to stem the currency slides.
…
Both international and local currency emerging market bonds have been pummelled, sending borrowing costs higher.
…
Benoit Anne, a senior strategist at Société Générale, said central bank money had arguably inflated a bubble in emerging markets, which was now unravelling as investors priced in a change in Fed policy. ‘This will not be a short-lived sell-off,’ he predicted.”

US tax havens
The Financial Times also reports that a single-storey building in the US state of Delaware “serves as the registered address for 278,000 companies”:

“But Delaware – along with other states such as Nevada and Wyoming that have similar rules – also houses a plethora of shell companies, in some cases which can facilitate illicit activity ranging from tax evasion to money laundering to healthcare fraud. For these companies, the attraction of Delaware is the ease with which companies and partnerships can set up shop there and the fact that not too many questions are asked.
This has led to calls from transparency activists for more information on the structure of ownership of entities registered not just in Delaware but around the world, to make it harder for criminals to cover their tracks.”

Global minimum wage
The London School of Economics’ Jason Hickel calls for changes to the current international system in which “capital has been globalised while the rules that protect people from it have not”:

“If we’re going to have a global labour market, it stands to reason that we need a global system of labour standards, something that will put a floor on the race to the bottom and guarantee a baseline level of human fairness. The single most important component of such a system would be a global minimum wage.
…
A global minimum wage would go a lot further than the ‘fair trade’ fad that has become popular among many Western consumers. Every time I walk into a store and see items labeled fair trade, I’m always struck by what their presence implies: that the rest of the ‘normal’ products are unfair. We shouldn’t be presented with a choice between fair trade goods and oppression goods – oppression goods shouldn’t exist in the first place. When we buy the things that we need to sustain and enjoy our lives, we should be able to be confident that we are not colluding in the exploitation of other human beings who toil in near-slavery conditions.”

New scramble
The Guardian’s George Monbiot argues that the upcoming G8 summit, much like the 1884 Conference of Berlin, uses humanitarian language to conceal plans for grabbing African land and resources:

“Strangely missing from New Alliance [for Food Security and Nutrition] agreements is any commitment on the part of G8 nations to change their own domestic policies. These could have included farm subsidies in Europe and the US, which undermine the markets for African produce; or biofuel quotas, which promote world hunger by turning food into fuel. Any constraints on the behaviour of corporate investors in Africa (such as the Committee on World Food Security’s guidelines on land tenure) remain voluntary, while the constraints on host nations become compulsory. As in 1884, powerful nations make the rules and weak ones abide by them: for their own good, of course.”

Austerity girls
In a Q&A with Inter Press Service, UN Women’s John Hendra discusses some of the socio-economic impacts of austerity policies around the world:

“In Europe, female workforce participation has declined, women’s unemployment rate is higher than that of men in many countries, and the gender pay gap has increased.
In developing countries, crisis and austerity have pushed many more women into informal and vulnerable work. Because women tend to be employed on fragile, non-permanent contracts, they are more vulnerable to being laid off during recessions.
…
Austerity has also undermined progress towards a more equal division of care responsibilities. Cuts in public care and health services have led to a re-privatisation of care work and a return to traditional gender roles.
Austerity pushes the responsibility for, and cost of, social and public goods back onto households, and in effect, onto women.”

History lesson
Chinese dissident artist Ai Weiwei writes that the US is “abusively using government powers” to undermine the privacy of individuals:

“In the Soviet Union before, in China today, and even in the US, officials always think what they do is necessary, and firmly believe they do what is best for the state and the people. But the lesson that people should learn from history is the need to limit state power.
…
To limit power is to protect society. It is not only about protecting individuals’ rights but making power healthier.”

Latest Developments, April 16

Posted on by
Reply

In the latest news and analysis…

MINUSMA
Inner City Press’s Matthew Russell Lee writes that France has drafted “its own blank check” for the UN peacekeeping mission – to be called MINUSMA – it hopes to have on the ground in Mali by July 1:

“To some it seems strange that France would be the country to draft the Security Council’s resolution on Mali, and that its draft would have the Council ‘welcoming the action of the French forces.’
But the French draft, which Inner City Press has put online here, would also authorize French forces to use ‘all necessary means’ to intervene.
…
Having a [UN Department of Peacekeeping Operations] chief independent from France would be one way to counter-act the danger of letting France drafts its own mandate in Mali.” [Editor’s note: The last four heads of UN peacekeeping have all been French citizens.]

Hungry for dignity
Samir Naji al Hasan Moqbel, a Guantanamo Bay detainee since 2002, discusses his participation in the widespread hunger strike underway the US military prison:

“One man here weighs just 77 pounds. Another, 98. Last thing I knew, I weighed 132, but that was a month ago.
I’ve been on a hunger strike since Feb. 10 and have lost well over 30 pounds. I will not eat until they restore my dignity.
…
When they come to force me into the chair [for forced feedings], if I refuse to be tied up, they call the [Extreme Reaction Force] team. So I have a choice. Either I can exercise my right to protest my detention, and be beaten up, or I can submit to painful force-feeding.
The only reason I am still here is that President Obama refuses to send any detainees back to Yemen. This makes no sense. I am a human being, not a passport, and I deserve to be treated like one.”

The truth about global poverty
Jason Hickel of the London School of Economics argues that discussions about aid draw attention away from the international economic policies that cost poor countries $500 billion a year:

“The point here is that corporate power regularly transcends national sovereignty. We have to face the fact that the democratic institutions we worked so hard to shore up during the 20th century are no longer sufficient to protect us in this brave new world.
We need to change the rules, and we need to do it quickly. Given that real power is now routinely wielded at the supra-national level, we need to start building global democratic capacity that can keep rampant greed and profiteering in check.
This might mean a global corporate minimum tax that will put an end to trade mispricing and tax havens. It might mean a global minimum wage that will put a floor on the ‘race to the bottom’ for labour. It will certainly mean wresting control of international trade laws from the hands of IMF bankers and WTO technocrats and placing it under new institutions that are transparent and democratic.
If we are going to have a global economy, we need to have global democratic oversight.”

Outsourcing pollution
The Guardian’s George Monbiot argues that the UK’s much touted reduction in greenhouse gas emissions is “an artefact of accountancy”:

“When nations negotiate global cuts in greenhouse gas emissions, they are held responsible only for the gases produced within their own borders. Partly as a result of this convention, these tend to be the only ones that countries count. When these ‘territorial emissions’ fall, they congratulate themselves on reducing their carbon footprints. But as markets of all kinds have been globalised, and as manufacturing migrates from rich nations to poorer ones, territorial accounting bears ever less relationship to our real impacts.
…
When our ‘consumption emissions’, rather than territorial emissions, are taken into account, our proud record turns into a story of dismal failure.
…
By considering only our territorial emissions, we make the impacts of our escalating consumption disappear in a puff of black smoke: we have offshored the problem, and our perceptions of it.”

War machine
The Transnational Institute’s Frank Slijper argues that European countries are under pressure to maintain military spending that contributed substantially to the region’s debt crisis:

“While countries like Germany have insisted on the harshest cuts of social budgets by crisis countries to pay back debts, they have been much less supportive of cuts in military spending that would threaten arms sales. France and Germany have pressured the Greek government not to reduce defence spending. France is currently arranging a lease deal with Greece for two of Europe’s most expensive frigates; the surprising move is said to be largely ‘driven by political considerations, rather than an initiative of the armed forces’. In 2010 the Dutch government granted export licences worth €53 million to equip the Greek navy.
As an aide to former Greek prime minister Papandreou noted: ‘No one is saying “Buy our warships or we won’t bail you out.” But the clear implication is that they will be more supportive if we do’.”

Corporate personhood
Rutgers University’s James Livingston suggests that, since US corporations have been granted the right to free speech, they should also pay taxes like “natural persons”:

“The now-familiar objection to a tax increase on corporate profits is that it will discourage private investment and thus dampen job creation. The retort is just as obvious: since when have tax cuts on corporate profits led to increased investment, faster job creation and higher per capita consumption out of rising real wages? It didn’t happen after the Reagan Revolution, it didn’t happen during the Clinton boom of the 1990s, and it sure didn’t happen under George W. Bush.
…
The other well-worn objection to an increase of corporate income taxes is that it would encourage companies to invest and hire overseas, where tax rates are presumably lower. Here, too, the retort is obvious: the tax code already works exactly this way by postponing taxes until profits from investment overseas are repatriated. American companies routinely avoid taxation by moving their idle cash offshore.”

Selective images
Author Binyavanga Wainaina tells Al Jazeera that Western governments promote self-serving and ultimately damaging depictions of Africa and their involvement in the continent’s affairs:

“ ‘If you look at the website in Kenya of any western embassy, they talk about partnership for development and then you see a lot of school children suffering and then being helped by the ambassador. But they don’t list the companies that are operating here. So it is the question of: What is the full picture?’ Wainaina says.”

Latest Developments, July 21

Posted on by
Reply

In the latest news and analysis…

The World Bank has released a report on the challenge posed by the theft of public assets from poor countries, which it describes as “an immense problem with a staggering development impact.” The report’s authors estimate that about $5 billion in assets have been recovered over the last 15 years, which amounts to 1/1,500th of the World Bank’s lowest estimate of the total stolen over that time. But the Tax Justice Network argues the real proportion of repatriated assets may be more like 1/3,800th of illicit financial flows out of the Global South.

Four Kenyans claiming to have been tortured by British soldiers during the Mau Mau uprising of the 1950s have taken a major step towards obtaining reparations, as a British judge has ruled the plaintiffs have sufficient grounds to pursue a lawsuit. “This is not about money,” their lawyer said. “It is about restoring people’s dignity.” The UK’s Foreign Office argues it is not responsible for any wrongdoing during the colonial period and Kenya’s government should take care of compensating victims, an argument the judge termed “dishonourable.”

The UN has “strongly welcomed” new data providing further evidence that male circumcision is an effective way of preventing HIV in men. “Scaling up voluntary medical male circumcision services rapidly to young men in high HIV prevalence settings will help reach the 2015 goal of reducing sexual transmission of HIV by 50 per cent,” according to UNAIDS executive director Michel Sidibé. One of the leaders in this trend is Tanzania which “plans to circumcise at least 2.8 million men and boys between the ages of 10 and 34 over a five-year period.” Meanwhile, in San Francisco where HIV/AIDS was the fourth leading cause of death among men aged 25-54 in 2007, the battle is heating up over a proposed measure that would ban the circumcision of boys under the age of 18. The so-called Male Genital Mutilation Bill will be put to the California city’s voters in November.

Global Financial Integrity’s Tom Cardamone has announced the imminent launch of an international petition to fight perceived efforts by the US Chamber of Commerce and Wisconsin congressman Tom Sensenbrenner to weaken the Foreign Corrupt Practices Act, the 34 year-old piece of legislation aimed at punishing individuals and corporations who pay bribes overseas.

The Economist appears to have coined a new acronym, MIFF, to describe the “the emergence of a group of middle-income but failed or fragile states” that, despite moderate prosperity at the national level, account for 17 percent of the world’s people living on less than $1 a day. That figure has skyrocketed from one percent in 2005. “Anybody concerned with alleviating world poverty must reckon with the MIFFs,” the author argues.

Peru’s ambassador to the UN Gonzalo Gutiérrez makes a similar point in arguing “the cold figure of GDP per capita does not reflect the actual state of development in a particular country.” He is calling on the donor community to change the criteria it uses when devising aid policy and to recognize that most of the world’s poor live in so-called middle-income countries. “It is illogical to leave 70 percent of those who suffer most in the world, simply because a general index says that they are already in the medium-income countries,” he said.

And in a Project Syndicate piece entitle “Debt and Delusion,” Yale University economist Robert Shiller warns of the dangers of obsessing over economic indicators, such as debt-to-GDP ratios. Fear of “some magic threshold” beyond which a country will become insolvent is causing a stampede towards austerity measures which are likely to do more harm than good. “We should worry less about debt ratios and thresholds, and more about our inability to see these indicators for the artificial – and often irrelevant – constructs that they are.”

The Royal United Services Institute’s Knox Chitiyo says the relationship between Europe and Africa has moved beyond “handouts and hoopla” and the “scramble for Africa.” In fact, he believes we are now seeing the beginning of “Africa’s scramble for the world.” Now that Africa can boast some of the world’s fastest growing economies, Chitiyo says Europe needs its southern neighbour in order to dig out of its recession.

Washington-based economist Thomas Palley makes the case for a global minimum wage to counteract “globalization’s undermining of the income generation process.” Palley does not suggest introducing a rich-country level of wage floor to poor countries, but rather “establishing a global set of rules for setting country minimum wages.” Rather than calculating specific wage levels that would then rise with inflation, he proposes agreeing on a fixed percentage of median wages that would vary according to national and regional economic conditions. “Just as globalization demands global trade rules for goods and services and global financial rules for financial markets, so too labor markets need global rules,” Palley argues.

Recapping the events of last week’s Arms Trade Treaty negotiations, Transparency International’s representatives at the meetings say they are “delighted” by the apparent broad support – from investors, industry and governments – for including anti-corruption language in the agreement. And Oxfam’s Scott Stedjan refutes US gun lobby objections to the proposed treaty, saying an ATT would have “no impact on the Second Amendment freedoms.”