Tag Archives: illicit financial flows

Latest Developments, February 23

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In the latest news and analysis…

Outside solutions
Oxfam’s Barbara Stocking has expressed disappointment over the Somalia conference in London, which UK Prime Minister David Cameron hailed as a “turning point.”
“While we recognise the huge efforts of the UK Government to make the conference a success, what we had hoped for was a recognition that 20 years of internationally imposed solutions have failed. However, what we’ve seen once again are externally driven solutions that haven’t worked, aren’t working and will not work.
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What we got was the rhetoric of Somali inclusion but you cannot go forward with a new constitution and elections in such a troubled country without a wide and inclusive political engagement within Somali society.”

Madonna strikes again
The Guardian reports Madonna’s latest school-building scheme in Malawi has run afoul of education officials who say they have not been consulted.
“…John Bisika, Malawi’s national secretary for education, science and technology, told the Guardian: ‘We have had no written or verbal communication. We just read about it in the papers. I don’t understand how she can work like that. For someone to go to the papers and say, ‘I’m building schools’, without telling the government, I find it a strange way of working.’
He added: ‘When will she build these schools? How will we know where these schools are needed? We need to do this in a co-ordinated manner. I wouldn’t just go to the UK and start building schools.
‘We need to be approached and work out where the schools are needed, based on school mapping. If she doesn’t come through us, it will not happen. We can’t just see people building schools. Let’s do it properly.’ ”

Patent reform
Intellectual Property Watch reports that UN talks have moved one step closer to an international agreement concerning genetic resources, although substantial differences remain over “mandatory disclosure of origin in patent applications.”
“The Indian delegate said ‘none of us here’ want to give ‘the impression that we are against the patent system’ but ‘there is a lot of free riding that is going on,’ he said, and the companies are taking traditional knowledge and claiming that it is their own, to the detriment of local communities he said. For the integrity of the patent system it is important that such bad patents are not granted, he added.”

Corruption by another name
The Tax Justice Network reproduces the communiqué released at the inaugural meeting of the High Level Panel on Illicit Financial Flows from Africa.
“Illicit financial outflows constitute a major source of resource leakage from the continent draining foreign exchange reserves, reducing tax collection, dwindling investment inflows, and worsening poverty in Africa. The methods and channels of illicit financial outflows are many and varied including tax havens and secrecy jurisdictions, over-invoicing, under-pricing, and different money laundering strategies. This source of resource outflows is far bigger and higher in terms of scale and magnitude than the normal corruption channels, which are focused upon globally.”

Infantilizing nations
Michael Marder of the University of the Basque Country, Vitoria-Gasteiz sees parallels between European current events and earlier dark chapters in the continent’s history.
“The infantalisation and animalisation of entire nations, for course, is nothing new for Europe that has had a long tradition of portraying itself in terms of the beacon of humanity and that has invariably resorted to the idea of its ‘civilising mission’ throughout it colonial conquests and expansions. Now, almost four decades after the last European countries have withdrawn from the colonies overseas, the same rhetoric is being turned inward, retracing the new political economic continental rift between the North and the South of Europe. Exploitation is the one constant that remains after this shift: exorbitant interest rates and repayment conditions attached to the bailout package will make sure that the debtor countries organise their economies around the need to service their debt for the foreseeable future.”

Price of doing business
Duke University’s Christine Bader asks why more extractive companies are not taking preventive measures to avoid escalation of conflict with host communities.
“[Former UN special representative for business and human rights, John] Ruggie suggests that most companies aren’t yet adding up what he calls those “costs of conflict,” which might be dispersed across security, public relations, legal, and operational budgets, and therefore aren’t motivated to act.
Some companies worry that opening up lines of communication will open the floodgates for specious claims. But a Harvard University study concluded that ‘the mere existence of a quality grievance mechanism can improve a company’s relations with affected stakeholders and thereby reduce grievances, as it signals that the company is ready to be held accountable, to confront, acknowledge and learn from problems.’ ”

Oil opacity
The Economist takes on the extractive industry’s “many objections” to more stringent transparency requirements, such as those contained in America’s Dodd-Frank act.
“But businesspeople struggle to produce examples of how local restrictions on publishing confidential contract details could clash with transparency requirements elsewhere. Contracts in developing countries typically have a clause permitting disclosures that are required by the company’s home country and stock exchange. Nor does greater disclosure seem to hurt competitiveness. In 2011 Angola awarded several new deepwater oil concessions to firms covered by Dodd-Frank. No oil company has so far cited increased openness as a material risk in its [US Securities and Exchange Commission] filings.
The expense has been minimal for the few, such as America’s Newmont Mining, that already provide country-level reporting (none yet breaks the numbers down project-by-project). Exxon says that the new rules would cost $50m. That is a lot of money, to be sure, but only 0.1% of last year’s profits. Companies already collect for internal use the data they are being asked to make public.”

Know thyself
UC Irvine’s Mark LeVine argues that if American and European citizens really want to help their counterparts in countries like Syria, they must first become more knowledgeable about their own countries’ “foreign policy interests and practices.”
“And if they got such knowledge, it would demand a much larger transformation in the political culture and economic structures of their own societies, which have always been intimately tied to support for authoritarianism and corruption abroad.”

Latest Developments, February 1

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Legal letter
The Twittersphere has uncovered, seemingly thanks to the Globe and Mail’s Geoffrey York, a 2011 letter addressed by American law firm McKenna, Long & Aldridge to Senegalese President “His Excellency Maitre Abdoulaye Wade” who is currently facing mass protests over his decision to seek a third term in contravention of the country’s constitution.
“It is indeed an honor to consult with you and to provide representation for The Office of the President with respect to your efforts to seek a third term as President of The Republic of Senegal. I will lead a team of lawyers and professionals at McKenna Long & Aldridge (hereinafter “MLA”) who have been assembled to research and analyze your authority to seek a third term under the Senegalese Constitution and other relevant laws, create a white paper that discusses our conclusions, and develop and implement an agreed upon protocol for sharing these findings with appropriate officials and interested parties in the United States and in The Republic of Senegal.”

Drone suit
The Washington Post reports the American Civil Liberties Union has filed a suit against the US government in order to obtain documents pertaining to its use of drones, though only insofar as they involve the targeted killings of US citizens.
“The lawsuit, filed in the U.S. District Court for the Southern District of New York, charged the Justice and Defense departments and the CIA with illegally failing to respond to requests made in October under the Freedom of Information Act (FOIA). It cited public comments made by President Obama, Defense Secretary Leon E. Panetta and other officials in arguing that the government cannot credibly claim a secrecy defense.
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‘The request relates to a topic of vital importance: the power of the U.S. government to kill U.S. citizens without presentation of evidence and without disclosing legal standards that guide decision makers,’ the complaint said.

Mining suit
The Montreal Gazette reports a group of NGOs has asked the Supreme Court of Canada to decide whether a Canadian mining company can be held liable for its alleged involvement in a massacre in the Democratic Republic of Congo eight years ago.
“The group says Anvil Mining Ltd. provided logistical assistance, such as planes, trucks and drivers, to the Congolese military during a rebel uprising in Kilwa, a town near the Dikulushi copper and silver mine the company owned in the Central African country until 2010.
That year, the five-member Canadian Coalition Against Impunity asked the Quebec Superior Court to approve a class-action suit on behalf of relatives of an estimated 100 victims.
Anvil Mining contested the court’s jurisdiction and lost – but that ruling was overturned last week by the Quebec Court of Appeal.”

Coronary capitalism
Harvard University’s Kenneth Rogoff uses the example of the food industry to suggest the “pathological regulatory-political-economic dynamic” of the financial sector is present throughout Western capitalism.
“Highly processed corn-based food products, with lots of chemical additives, are well known to be a major driver of weight gain, but, from a conventional growth-accounting perspective, they are great stuff. Big agriculture gets paid for growing the corn (often subsidized by the government), and the food processors get paid for adding tons of chemicals to create a habit-forming – and thus irresistible – product. Along the way, scientists get paid for finding just the right mix of salt, sugar, and chemicals to make the latest instant food maximally addictive; advertisers get paid for peddling it; and, in the end, the health-care industry makes a fortune treating the disease that inevitably results.”

Colonial plant policy
Jeune Afrique reviews a new book by Serge Volper that explores how colonial powers not only took resources from Africa but also imposed the forced production of cash crops with implications that are being felt to this day.
“But the most effective way to meet certain requirements rested on another form of constraint. ‘The colonial system imposed monedy,’ Volper explains. ‘The prevailing barter system – commodities for manufactured products – evolved when the colonizer introduced taxation. The people then had to work to obtain the money necessary to pay taxes…’ Obviously, the crops that would best feed the population were not on the list of priorities. Based on climate, workforce and land, the different regions under French control were pushed to develop specific crops. Cocao in Côte d’Ivoire, peanuts in Senegal, bananas in Guinea, vanilla in Madagascar. Only cotton production did not meet with success, which did not come until after independence.” (Translated from the French.)

Math problem
ECONorthwest’s Ann Hollingshead explains why a recent Global Financial Integrity report estimating illicit financial outflows from Mexico at $18.7 billion per year – of which $15.3 billion is attributable to transfer mispricing – used a non-traditional method for reaching that figure.
“[Author Dev] Kar does not net out ‘reversals’ or illicit inflows from his estimates. This diverges from more traditional models, where economists do subract illicit inflows from illicit outflows, resulting in a lower ‘net’ estimate of capital flight. But this gives a skewed picture. Illicit inflows [Editor’s note: I changed “outflows” to “inflows” here to correct what I believe is a typo], because they are illegal by definition, are not supplementing the domestic economy in the same way an illicit outflow is detracting from it.
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Why should laundered money offset the damage of tax evasion?”

Raising the CSR bar
In light of the ongoing controversy over Dow Chemical’s association with the 2012 London Olympics, the Institute for Human Rights and Business’s Salil Tripathi argues future organizers should extend the ideal of excellence to corporate responsibility by subjecting prospective sponsors to a rigorous screening process.
“It is clear that a quick check of company reputation isn’t adequate. Reputation surveys are notoriously subjective. Nor can the existence of corporate sustainability policies be sufficient: there are many companies that have policies in place which commit them to respect human rights, to act in a responsible manner, to operate in a sustainable way, and to obey the law. And yet, many companies still end up committing or being associated with abuses. The new UN Guiding Principles on business and human rights – which provide the authoritative due diligence steps all companies need to take, including to track and monitor performance – are a promising yardstick to deploy. Companies that can effectively demonstrate they are acting in line with this international framework should in theory pass such a screening.”

Latest Developments, December 15

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Park eviction
The Guardian reports on allegations that members of Kenya’s Samburu community have suffered violent abuse since being evicted from land sold to a pair of US-based charities.
“The London-based NGO Survival International said the Samburu were evicted following the purchase of the land by two American-based charities, the Nature Conservancy and the African Wildlife Foundation.
The groups subsequently gifted the land to Kenya for a national park, to be called Laikipia National Park.
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A community leader, who did not wish to be named, described police harassment as enormous. He said police beat people, burned manyattas or traditional homesteads and carried out arbitrary arrests during the period leading up to and including the eviction last year. He said they also confiscated many animals and the intimidation has continued.”

State sues investor
Reuters reports that Brazilian prosecutors are suing Chevron and Transocean for $10.6 billion and are seeking to suspend their Brazilian operations over a November offshore oil spill.
“The case will add to already-large legal headaches for both companies. Chevron has already faced years of litigation over alleged pollution by Texaco, a company it bought, in Ecuador’s Amazon region decades ago.
Chevron was ordered by Ecuadorean courts in February to pay damages of $18 billion. The suit is now under appeal in Ecuador, and the dispute is also being reviewed by an international arbitration tribunal. Transocean was the rig operator in the giant four-billion-barrel Deepwater Horizon spill in the Gulf of Mexico in 2010.”

Investor sues state
The Inter Press Service reports on a protest outside a World Bank tribunal that is hearing a lawsuit brought by a Canadian mining company against the government of El Salvador for refusing to grant permits for a project along the country’s main water source.
“Pacific Rim, which has insisted long insisted that it would use the most up-to-date environmental technology and methods to ensure the integrity and health of the river, brought its suit under an “investor-state” provision of the 2005 Dominican Republic-Central American Free Trade Agreement (DR-CAFTA).
That provision allows corporations to sue governments over actions that allegedly reduce the value of their investments.
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DR-CAFTA is an agreement strictly between the U.S. and Central American countries. Because Pacific Rim is based in Canada, which is not party to DR-CAFTA, it created a U.S. subsidiary in Nevada in 2009 to press its case before the tribunal, after it could not persuade the Salvadoran government to back the mining plan.”

Investment regulation
A new report released by the Bretton Woods Project warns of the dangers of international financial flow volatility and argues poor countries must take measures to guard against foreign investment surges and stops.
“Even more effective would be policies in rich countries to tackle the risks from capital flows at their source. This includes better overall financial regulation, but consideration should be given to specific capital flows policy in source country. More regional and international coordination on capital account regulation, particularly enforcement of rules, would help developing countries deal with financial flows more effectively. Ultimately, a more ambitious global framework agreement could reinforce mutually consistent management techniques across source and destination countries.”

Mining fraud
The Financial Times reports on resentment in Ghana resulting from the perception that foreign mining companies are getting rich off the country’s resources and giving little back in return.
“One lawyer employed by a gold miner in the 1990s told the FT that the company he worked for systematically falsified its accounts to underestimate profits, thereby depriving the state of millions of dollars in taxes.
There are growing suspicions in government circles that similar tax fraud, known as transfer pricing, has been exercised systematically by companies in the sector.”

Illicit financial flows
A new report released by Global Financial Integrity estimates “developing” countries lost $903 billion to illicit financial outflows in 2009 (which is actually lower than the 2008 figure), capping a decade in which they lost $8.44 trillion.
“It would be encouraging to find that the 2009 reduction in illicit outflows occurred because of stronger governance within countries and more transparent financial dealings between countries. There is little indication that this is yet the case. The need for combined global effort to curtail illicit financial flows is more urgent than ever. We are pleased to note that the G20, OECD, World Bank, and others are beginning to take this issue much more seriously.”

An important distinction
ECONorthwest’s Ann Hollingshead draws a distinction between the concepts of “ill-gotten money” and “illicit financial flows,” which have markedly different economic impacts on poor countries.
“The [World Bank] authors study what they term ‘ill-gotten money,’ which they define as ‘money derived (illegally acquired) from crime and tax evasion.’ This includes not only illicit cross-boarder transfers and assets held abroad, but also illicit transfers and assets held and transferred domestically. The difference between this concept and illicit financial flows is important. The economic effect of a criminal activity alone is quite different than the economic effect of a criminal activity with a corresponding transfer of cash internationally. Or the economic effect of an illicit cross-boarder transaction where the underlying activity itself was not illicit.”

Legal corruption
The New York Times reviews Harvard law professor Lawrence Lessig’s new book, Republic, Lost, in which he explores the idea of legal corruption.
“There is, in his view, one thing holding back America, a legal but corrupt system of campaign finance. ‘Practically every important issue in American politics today is tied to this ‘one issue,’ ’ he writes. Mr. Lessig’s agenda (invoking Thoreau) is to attack ‘the root, the thing that feeds the other ills, and the thing that we must kill first.’
Existing campaign finance reforms, particularly donor disclosure and contribution limits, have done as much harm as good, leading to ‘a corruption practiced by decent people’ and legitimizing what Mr. Lessig calls ‘a gift economy.’ Disclosure of the identities of contributors has made the venal routine. The system ‘normalizes dependence,’ Mr. Lessig writes. ‘There’s is no shame in the dance.’ ”

Latest Developments, December 12

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Canada out of Kyoto
The New York Times reports that mere hours after the international community agreed at the Durban climate change conference to extend the Kyoto Protocol, Canada has become the first country to withdraw from the accord.
“‘Kyoto, for Canada, is in the past,’ the environment minister, Peter Kent, told reporters shortly after returning from South Africa. He added that Canada would work toward developing an agreement that includes targets for developing nations, particularly China and India.
‘What we have to look at is all major emitters,’ Mr. Kent said.
Under the Kyoto Protocol’s rules, Canada must formally give notice of its intention to withdraw by the end of this year or else face penalties after 2012.
The extent of those penalties, as well as Canada’s ability to redress its inability to meet the treaty’s emission reduction targets, is a matter of some debate.”

Trade mispricing
Global Financial Integrity’s Sarah Freitas writes that the Philippines lost an estimated $142 billion due to illicit financial flows over the last decade, but that corruption and bribery accounted for a relatively small part of that amount .
“The study found that the majority of the illicit outflow, US$113.7 billion, is due to the mispricing of imported and exported goods. Trade mispricing is a phenomenon where individuals and corporations use fraudulent commercial invoices to smuggle money out of the country, usually in order to facilitate tax evasion. A large corporation or very wealthy individual in the Philippines will trade with a counterpart in another country, but will manipulate the price and quantity of exported goods to send more money offshore than represented by what they report to the government. The individual or corporation then collects the extra money later, usually in a bank account in a tax haven or secrecy jurisdiction.
This means that while the Philippines has seen significant outflows from corruption, bribery, and kickbacks, their biggest priority when addressing illicit capital flight should be to tackle trade-related tax evasion.”

Slow start
The Guardian reports that after 40 years of mining uranium in Niger, the French state-owned company Areva has agreed to begin monitoring the health of its employees.
“Deaths from respiratory infections occur at almost twice the national average in Arlit, according to Greenpeace. In a 2010 report, the organisation found water wells in Akokan contaminated with radiation levels up to 500 times higher than normal, and radioactive scrap metal for sale at local markets. Meanwhile, mining activity has drained almost 300bn litres of water from aquifers, key water sources in the desert.”

Biofuel crimes
A new report produced jointly by the Food and Agriculture Organization and Transparency International suggests the troubles with the growing biofuel industry go beyond issues of food security.
“The drive to find alternative energy sources to mitigate climate change has resulted in a rush of money to related investments in countries. Yet many countries with governance and corruption challenges are considered among the most attractive destinations for biofuel investment.
In the case of Colombia, the rapid expansion of the cultivation of palm oil has been linked to reports of paramilitaries, hired by private interests, allegedly pushing poor communities off their land to increase the available area for planting.”

Boycott fever
Forbes blogger E.D. Kain writes about the Florida Family Association’s efforts to get companies to pull their advertising dollars from TLC’s reality TV show All-American Muslim, a campaign the group claims has succeeded with 65 of the 67 companies it pressured.
“The FFA’s statement on the matter reads: ‘‘All-American Muslim’ is propaganda clearly designed to counter legitimate and present-day concerns about many Muslims who are advancing Islamic fundamentalism and Sharia law… The show profiles only Muslims that appear to be ordinary folks while excluding many Islamic believers whose agenda poses a clear and present danger to the liberties and traditional values that the majority of Americans cherish.’”

Durban disappointment
Oxfam’s Tim Gore argues that the final deal that came out of the Durban climate summit prioritized legal obligations over ambition and equity.
“Many developing countries are concerned the terms of the new agreement will pressurise them to act in the same vein as developed countries. The impassioned appeals of India and others to keep fairness at the heart of the new regime are not reflected in the text of the final agreement, which makes no distinction between the relative effort required by large and small historic and per-capita polluters, or between the richest countries and those where millions of people still live in poverty and hunger.”

Ecosocialism
In a Q&A with People of Colour Organize!, British Green politician and activist Derek Wall discusses the concept of ecosocialism and answers whether “zero growth” is possible in a capitalist system.
“The short answer is no. Firms compete to make profit. Those who make the most profit can reinvest in capital and with more efficient machinery they out compete other firms.
Firms have to make profit to survive. It’s not a case of wicked capitalists but instead a system with a built in growth imperative.
The problem is, from declining oil to diminishing fish stocks, an environmental wipeout is occurring.”

Dangerous game
In an Al Jazeera interview, Columbia University economist Jeffrey Sachs talks about the madness, as he sees it, of the American financial system.
“And the problem that the Occupy Wall Street and other protesters have is: you don’t deserve it, you nearly broke the system, you gamed the economy, you’re paying mega fines, yet you’re still in the White House you’re going to the state dinners, you’re paying yourself huge bonuses, what kind of system is this?
When I talk about this in the United States, I’m often attacked, ‘oh, you don’t believe in the free market economy’, I say, how much free market can there be? You say deregulate, the moment the banks get in trouble, you say bail them out, the moment you bail them out, you say go back to deregulation. That’s not a free market, that’s a game, and we have to get out of the game. We have to get back to grown-up behaviour.”

Latest Developments, December 5

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Unravelling social contract
A new report by the Organisation for Economic Co-operation and Development says its member countries are experiencing their highest levels of inequality in over 30 years and calls on governments to revise their tax systems so that wealthy individual pay “their fair share of the tax burden.”
“Launching the report in Paris, OECD Secretary-General Angel Gurría said ‘The social contract is starting to unravel in many countries. This study dispels the assumptions that the benefits of economic growth will automatically trickle down to the disadvantaged and that greater inequality fosters greater social mobility. Without a comprehensive strategy for inclusive growth, inequality will continue to rise.’”

Ethiopia’s financial losses
Global Financial Integrity’s Sarah Freitas estimates that Ethiopian losses due to illicit financial outflows amounted to $3.26 in 2009, which was more than the combined value of the development assistance it received and the products it exported.
“What can be done? The first step the international community should take is to hamper the ability of corrupt and tax-evading Ethiopians to launder their money in the global financial system.  This could be accomplished by establishing a global system of automatic exchange of tax information. In this way, Ethiopian authorities could much more easily track the bank accounts their tax evaders have established around the world. Furthermore, the G20 governments could push for an end to shell companies by calling for beneficial owners of all companies, trusts and foundations to be known to government authorities.  This would make it far more difficult for the corrupt and the criminal to hide their ill-gotten gains behind a wall of corporate secrecy.”

SEC contrivances
Butler University’s Mike Koehler, a.k.a. the FCPA Professor, writes about a recent court ruling in New York that pertains to the Securities and Exchange Commission’s practice of resolving cases – whether involving allegations of foreign bribery or not – without requiring an admission or denial of guilt from the defendants.
“In prior cases, Judge Rakoff has said that this policy contributes to a ‘facade of enforcement’ (SEC v. Bank of America) and is a ‘stew of confusion and hypocrisy unworthy of such a proud agency as the SEC.’ (SEC v. Vitesse Semiconductor)
Last week, Judge Rakoff, in denying the SEC-Citigroup settlement, again had pointed words as to the SEC settlement device typically used in FCPA enforcement actions.
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‘An application of judicial power that does not rest on facts is worse than mindless, it is inherently dangerous.  The injunctive power of the judiciary is not a free-roving remedy to be invoked at the whim of a regulatory agency, even with the consent of the regulated.  If its deployment does not rest on facts – cold, hard, solid facts, established either by admissions or by trials – it serves no lawful or moral purpose and is simply an engine of oppression.’
Judge Rakoff stated that the ‘SEC, of all agencies, has a duty, inherent in its statutory mission, to see that the truth emerges; and if it fails to do so, this Court must not, in the name of deference or convenience, grant judicial enforcement to the agency’s contrivances.’”

IP enforcement
Intellectual Property Watch reports that a group of civil society organizations has sent a letter to the World Intellectual Property Organization to express concerns over the UN agency’s “approach to enforcement” regarding piracy and counterfeiting.
“The signers highlighted a lack of transparency about WIPO technical assistance activities, the extensive link being made to public health and safety (which they called “questionable and tenuous at best”) as led by industry, and the possibility that WIPO enforcement activities might be undermining existing flexibilities in IP law. Signers included AIDS groups, digital civil liberties groups, and organizations working on development on the ground in countries around the world.”

Asbestos pushing
Canada’s biggest opposition party is criticizing the government for throwing its weight behind the country’s controversial asbestos industry during negotiations for a trade agreement with India.
“In response to questions from [International Trade critic Brian] Masse, the Chief Negotiator for the Canada-India Comprehensive Economic Partnership Agreement admitted Canada is currently working to eliminate tariffs on asbestos exports to India. Currently there is a 10 per cent duty on asbestos exports to India, the world’s second largest consumer of asbestos.
‘We already dump hundreds of thousands of tons of asbestos each year into developing nations – and now we want to make it easier for asbestos magnates to do so?’ said MP Pat Martin (Winnipeg Centre). ‘This is deplorable and Canadians need to let their government know they will not put up with this any longer.’”

Blood diamond casualty
Global Witness has announced it has left the Kimberley Process, a certification program it helped establish in the hopes of cleaning up the international diamond trade.
“The Kimberley Process’s refusal to evolve and address the clear links between diamonds, violence and tyranny has rendered it increasingly outdated, said the group. Despite intensive efforts over many years by a coalition of NGOs, the scheme’s main flaws and loopholes have not been fixed and most of the governments that run the scheme continue to show no interest in reform.”

A greener Green Revolution
In a Q&A with the Inter Press Service, International Fund for Agricultural Development President Kanayo Nwanze calls for a new kind of agricultural revolution.
“The Green Revolution was successful because it focused on very clear messages: increased fertiliser use, increased improved seeds and irrigation. But we found out in the long term that it is not sustainable. So now we need to look for sustainable approaches to production that do not destroy the environment and are available to a wide spectrum of farmers in Africa and in the world as a whole.”

Transnational coordination
University of California at Santa Barbara’s William Robinson argues the current “global political economy can no longer be contained through consensual mechanisms of social control” and predicts a protracted period of conflict.
“It is noteworthy that those struggling around the world have been shown a strong sense of solidarity and are in communications across whole continents. Just as the Egyptian uprising inspired the US Occupy movement, the latter has been an inspiration for a new round of mass struggle in Egypt. What remains is to extend transnational coordination and move towards transnationally-coordinated programmes.
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In my view, the only viable solution to the crisis of global capitalism is a massive redistribution of wealth and power downward towards the poor majority of humanity along the lines of a 21st-century democratic socialism in which humanity is no longer at war with itself and with nature.”