Tag Archives: Government Pension Fund

Latest Developments, May 9

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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.’
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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.
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Officials say about 2,500 people were injured in the collapse and that 2,437 people have been rescued.
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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.
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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, December 6

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Nuclear testing ban progress
Reuters reports Indonesia has ratified the Comprehensive Nuclear Test Ban Treaty, moving the agreement, which has been agreed to by 156 countries, a step closer to becoming international law.
“Indonesia had been among nine countries – including nuclear weapons powers the United States and China, as well as India, Pakistan, Israel, Iran, North Korea, and Egypt – whose approval is needed for the law, negotiated in the 1990s, to take effect.”

Investment ethics
Norway’s Government Pension Fund, the largest in the world, has dropped an American and a Canadian company – FMC Corporation and the Potash Corporation of Saskatchewan – from its investment portfolio for buying phosphates mined in Western Sahara, which it describes in a statement as “particularly serious violations of fundamental ethical norms.”
“Potash and FMC purchase phosphate from the Moroccan company Office Cherifien des Phosphates (OCP). OCP extracts phosphate in Western Sahara, a territory which is not self-governed and which has no recognised administrator. In 2002, the UN’s legal adviser issued a general legal opinion on the legality of mineral resources extraction in territories which are not self-governed, which also included a specific assessment of this issue with regard to the situation in Western Sahara. The opinion stated that mineral resources extraction in territories which are not self-governed is only acceptable if it benefits the local population of the territory. The Council on Ethics takes the view that the interests of the local population are not served by OCP’s operations, and that it is this unacceptable situation which constitutes the core of the breach of ethical standards in the present case.
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In its decision to adopt the recommendation of the Council on Ethics, the Ministry of Finance has attached particular weight to the fact that the companies know the origin of the phosphate, that they specify that they want phosphate from the particular Western Saharan mine in question, and that it appears likely that the companies will continue to purchase this particular phosphate for the foreseeable future.”

Destabilizing mining
Two Canadian mining companies – Nevsun Resources and Sunridge Gold – have issued statements declaring there will be “no direct impact” to their Eritrean operations as a result of a UN Security Council resolution expressing “concern at the potential use of the Eritrean mining sector as a financial source to destabilize” the region.
“Nevsun’s President Cliff Davis states, ‘The State of Eritrea has been a strong partner and shareholder in the Bisha Mining Share Company, a subsidiary of Nevsun… By collaborating with international companies, Eritrea is developing a mining industry that provides direct economic benefits, skill enhancement and supply chain expansion. Through these cooperative efforts, sustainable development from the industry can positively impact the Eritrean economy for decades to come.’”

FDI vs. the environment
The Guardian reports on the controversy over Peru’s Minas Conga gold mine and how it highlights the challenges of balancing foreign investment-driven development with environmental protection.
“After days of violent protests, and following [former deputy environment minister José] De Echave’s resignation, the US-based Newmont Mining Corporation – the majority partner in the joint venture, together with Minera Yanacocha, behind the Conga plans – said it was halting construction in an effort to ease tensions. But CEO Richard O’Brien indicated that the company, which is South America’s largest gold producer, remains committed to the project.
At issue is the impact on the local watershed, as Yanacocha plans to divert water from four mountain lakes into new reservoirs to enable mining to proceed. Protests have been led by local farmers and residents concerned about the impact on the underground drainage network and natural water harvesting system. Cajamarca is Peru’s leading dairy and livestock region.”

New world order
The Global Institute For Tomorrow’s Chandran Nair argues the anticipated Asian Century must be much more than a simple changing of the guard.
“In previous centuries, Western economic growth was characterized by a comparatively insignificant minority having unfettered access to resources, and was thus built on fueling consumption. This was, after all, the idea behind colonialism, which succeeded economically by underpricing resources or even obtaining them for free.
But the planet simply cannot support five billion Asians consuming like Westerners. The earth’s regenerative capacity was exceeded more than 30 years ago, and we now use 30% more resources than the planet can sustain. Although we know this to be the case, the vast majority of Western economists and institutions continue to encourage China and India to consume more.”

Transforming knowledge
Demos’s Michael Edwards asks what the future holds for international development NGOs which are, as a rule, “still raising money in the rich world and spending it on projects in poorer countries” despite the changing global context in which they operate.
“Richer countries no longer provide an ‘end-point’ to aim for in the processes of development and social change, because they generate too much inequality and too many social and environmental failures to serve as an example. In fact, no contemporary society has figured out how to tie economic growth to human flourishing in a future that will be dominated by the demands of climate change and other collective problems that cannot be tackled by the ‘North’ or the ‘South’ in isolation. Therefore, existing systems of knowledge, politics and economics must be transformed, not simply expanded or made more accessible to the poor (wherever it is they live).”

Remembering Fanon
Jeune Afrique marks the 50th anniversary of the death of Frantz Fanon, author of The Wretched of the Earth, at the age of 36.
“When he arrived in Algeria, his only ambition was to be a different kind of doctor. But the way in which the French treated the indigenous population was not lost on him. It reminded him of his own experiences as a black man and Martinican. And when the National Liberation Front (FLN) launched its first attacks, in the early hours of Nov. 1, 1954, Fanon understood the significance of the events. In 1955, he initiated contact with the FLN. The psychological condition of Algerian victims of torture and other violent acts troubled him. In late 1956, he resigned before being expelled from Algeria, marking an irrevocable break with France. From that point on, he saw himself as an Algerian. Nationality is not linked to one’s place of birth, but to one’s will.” (Translated from the French.)