Latest Developments, February 7

In the latest news and analysis…

Global New Deal
The UN News Centre reports on a new UN Conference on Trade and Development paper that calls for an overhaul of the world’s financial system to produce a “more stable and inclusive” global economy.
“ ‘Financial markets and institutions have become the masters rather than the servants of the real economy, distorting trade and investment, heightening levels of inequality, and posing a systemic threat to economic stability,’ warns the report, which also defines the dominant pattern of international economic relations during the past three decades as ‘finance-driven globalization.’
[UNCTAD Secretary-General] Supachai [Panitchpakdi] instead calls for financial and other resources to be channelled towards ‘the right kinds’ of productive activities, ensuring that measures to diversify economic development are consistent with job creation, food and energy security, and tackling the threat of climate change.”

Arms trade transparency
The BBC reports the UK government is promising to allow greater public scrutiny of arms exports following allegations that weapons it had sold to Middle Eastern regimes were used to suppress popular protests during last year’s Arab Spring.
“The government intends to publish information about licence applications and updates of sales, once they have been awarded.
An independent reviewer could also be appointed to scrutinise the process to ensure it is working ‘correctly’.”

Shooting the messenger
The Wall Street Journal reports a former General Electric executive is alleging he was fired for relaying concerns about the legality of the company’s behaviour abroad.
“ ‘The Plaintiff provided information to his immediate supervisor and to the Ombudsperson for GE regarding potential violations of the Foreign Corrupt Practices Act committed by GE during negotiations for a lucrative, multi-year deal with the Iraqi Ministry of Electricity,’ the complaint said.”

Unethical links
The Ecologist reports a number of “seemingly ethical” Brititsh companies – The Co-operative, Marks & Spencer and Waitrose – are facing criticism over their partnerships with controversial oil giants.
“Greg Muttitt, campaigns and policy director at international development charity War on Want, said: ‘People believe there is an ethical option. The fact these companies are doing deals with unethical businesses shows how limited their ethical commitments are. This will wake people up to how these companies’ ethical policies are only skin deep.’ ”

Democratic deficit
The recently signed international Anti-Counterfeiting Trade Agreement (ACTA) is a potential threat to Internet freedom but the extent of its menace remains unclear because of the opaque and undemocratic negotiation process, according to Oxford Internet Institute graduate student Alexander Furnas.
“It is worth noting that the negotiations throughout most of the process were highly secret with negotiators forced to sign non-disclosure agreements, a fact that, according to one [Wikileaks] cable, made even some of the negotiating parties uncomfortable. There were few avenues for public or civil-society input. Meanwhile many U.S. based multinational corporations and their interest groups, including the Recording Industry Association of America, the Motion Picture Association of America, Sony, and Time Warner were consulted via formal [Office of the US Trade Representative] advisory boards.”

Myth making
The Center for Global Development’s Michael Clemens writes about the birth of an “immigration fiction” as the UK Minister of State for Immigration Damian Green, with the help of the British media, distorts the findings of a recent report by attributing causation where it found only association.
“But the minister’s myth propagates anyway, with help from a docile press. The BBC article on the minister’s speech, for example, simply quotes the minister’s false interpretation of the [Migration Advisory Committee] report, without qualification. The article does not bother to interview any of the MAC report’s authors, who could clarify what they did or did not say. The BBC article does bother to interview anti-immigration activist Sir Andrew Green, who (shocker!) shares the minister’s sadly fictional interpretation of the MAC report.

What does the best economic research show? As I’ve discussed in a peer-reviewed article in a journal of the American Economic Association, barriers to migration from developing countries are far and away the most impoverishing obstacle to the global economy. Even slightly greater labor mobility out of developing countries would add trillions of dollars to the world economy, and most of those gains happen in countries of destination like the UK.”

Zero-sum madness
The Post Carbon Institute’s Richard Heinberg argues that perpetuating the current competition-based global system is not a viable option if survival of the species is our objective.
“Taken together, current cooperative efforts toward resource conservation, climate mitigation and population stabilisation are woefully insufficient – as exemplified by failed climate talks, continued global population growth and ever-heightening international competition for access to dwindling fossil fuel supplies. There are plenty of justifications for pessimism: after all, won’t the first nations to engage in resource conservation lose economic advantage to those that engage in conquest and consumption maximisation? Wouldn’t even one major national holdout undermine a worldwide cooperative effort at climate protection?
Dramatically expanding our international and domestic cooperative efforts at this worrisome moment in history may seem like a tall order. The only advantage to doing so is that it is the only path going forward that does not end in a global tragedy in which the fate of the ‘winners’ is hardly preferable to that of the ‘losers’.”

Body of evidence
The World Bank’s Markus Goldstein writes that there is remarkably little impact evaluation done on interventions and reforms relating to trade policy.
“The need for more evidence is key. As [Olivier] Cadot & co. point out, trade is receiving an increasing amount of policy attention and donors (the World Bank among them) are stepping up support of trade related interventions. But, alas, little work is being done. As a striking example, Cadot & co. review all World Bank trade projects from 1995-2005. Of these 85 projects, only 5 included an impact evaluation that used a comparison group. ”

Latest Developments, January 23

In the latest news and analysis…

Spring cleaning
Human Rights Watch has released the latest edition of its “annual review of human rights practices around the globe” which this year has a special focus on the Arab Spring.
“The United States and some European allies could make an enormous contribution to ending torture in the Arab world by coming clean about their own records of complicity in torture as part of their fight against terrorism. Western governments should punish those responsible for ordering or facilitating torture and end the use of diplomatic assurances as a fig leaf to justify sending suspects to countries where they risk torture.”

Deadly mining protest
The Oaxaca Study Action Group reports that two people were shot, one of them fatally, in the course of a protest against a Canadian-owned mine in southern Mexico.
“San José del Progreso, located 50 km south of Oaxaca City, has been a flash point for violence since an alliance of local environmentalists and farmers occupied the gold and silver mine in early 2009. Despite widespread resistance and an ongoing conflict that already claimed the lives of two people in summer 2010, Fortuna Silver began commercial operation of the mine last September. As the installations are located in an arid valley, smooth operation is heavily dependent on water access to process the ore. The contamination of the scarce resource is among the main concerns of the mining opponents, many of whom grow vegetables for a living and rely on clean water for irrigation.”

Rubik on life support
The Tax Justice Network gleefully reports that Switzerland’s Rubik plan to preserve its famous banking secrecy is on the verge of collapsing as EU objections to Swiss tax deals with Britain and Germany intensify.
“TJN’s position is unambiguous: these deals are weak, immoral, and even silly – and they undermine international attempts to tackle tax evasion. Both Germany and Britain should swallow their pride, withdraw from the deals, and put their diplomatic effort into pushing through the EU’s enhanced Savings Tax Directive – suitably extended to Switzerland.”

Maximum wage
The Guardian’s George Monbiot calls for a nationwide UK maximum wage to rein in corporate executive pay, which he describes as “a form of institutionalised theft, arranged by a kleptocratic class for the benefit of its members.”
“I’m not talking about ratios or relative earnings. Various bodies have proposed that there should be a fixed ratio of the top earnings within a company to either the median or lowest salaries. But as a report on this issue by the New Economics Foundation shows, the first measurement quickly becomes complex and opaque, the second creates an incentive to contract out the lowest paid work. I’m talking about an absolute maximum, applied nationwide.”

Drones and America
The Brookings Institution’s Peter Singer looks at the impact that America’s increasing reliance on drone strikes is having on its own democracy, quite apart from any death and destruction caused in distant countries.
“We must now accept that technologies that remove humans from the battlefield, from unmanned systems like the Predator to cyberweapons like the Stuxnet computer worm, are becoming the new normal in war.
And like it or not, the new standard we’ve established for them is that presidents need to seek approval only for operations that send people into harm’s way — not for those that involve waging war by other means.
Without any actual political debate, we have set an enormous precedent, blurring the civilian and military roles in war and circumventing the Constitution’s mandate for authorizing it.”

Drones and Pakistan
News Pakistan reports on Pakistani cricketer turned politician Imran Khan’s take on the impact US drone strikes are having on the ground in his country.
“Imran Khan, the chief of the Pakistan Tehreek-e-Insaf (PTI), has urged the United States to stop drone strikes in Pakistan, claiming that they were killing many innocent people.
He observed that each bomb that killed terrorists also killed many people who might be related to the terrorists but were not involved in militancy.
In his view this collateral damage creates more Jihadis than it kills, he said this while interviewing with CNN.”

Proceed with caution
New York University’s Alex Evans and David Steven argue that despite growing enthusiasm for Sustainable Development Goals ahead of the Rio+20 summit, there is a lack of clarity regarding their contours and timeframe.
“The question of which countries would be covered by SDGs is a minefield. With any set of SDGs likely to be universal rather than applicable only to developing countries, major political challenges would arise. The MDGs demanded relatively little of OECD governments: all that was asked of them was aid, and relatively small amounts of it at that. A more comprehensive set of post-2015 Goals, on the other hand, would need to look ‘beyond aid’ – entailing changes to domestic policies in sensitive areas like migration, trade, intellectual property, or energy policy. The vexed issue of ‘common but differentiated responsibilities’ would certainly arise along the way – perhaps bedevilling post-2015 discussions as it already has the Doha round and the UNFCCC climate process (though an optimist might argue that a universal approach could help debate to move past the rigid and outdated typology of ‘developed’ and ‘developing’ countries).”

Migrant myths
The Observer’s Barbara Ellen writes that new statistics undermine traditional narratives about immigrants and “benefits tourism.”
“This could be a chance to start a new kind of immigration debate, one that doesn’t centre on: ‘What are they taking from us?’ Rather, it might ask: ‘What are they giving us?’ Even: ‘Do we expect too much, too soon, of migrants? Should we break the habit of a lifetime and get off their backs?’
For too long, there’s been a bizarre cultural climate of putting migrants under unfair pressure to perform instantly. It’s as if they’re expected to be supermen and women, breezily starting multinational companies the moment they arrive… in a foreign country, sometimes homeless, and with a new language to master.”