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Latest Developments, December 8

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Tabula rasa
The Economist reports on a controversial large-scale development experiment getting underway in Honduras.
“In a nutshell, the Honduran government wants to create what amounts to internal start-ups—quasi-independent city-states that begin with a clean slate and are then overseen by outside experts. They will have their own government, write their own laws, manage their own currency and, eventually, hold their own elections.
This year the Honduran legislature has taken the first big steps towards the creation of what it called ‘special development regions’. It has passed a constitutional amendment making them possible and approved a ‘constitutional statute’ that creates their autonomous legal framework. Mauritius has just announced that it will allow its supreme court to hear cases from the new entities (beyond that, in a relic of colonialism, is Britain’s Privy Council, to which the decisions of the island state’s supreme court can be appealed). And on December 6th Porfirio Lobo, the Honduran president, appointed the first members of the ‘transparency commission’, the body that will oversee the new entities’ integrity.”

Right to science
Intellectual Property Watch reports on a UN-sponsored event that highlighted the need for greater attention to the “right to enjoy the benefits of scientific progress and its application.”
“A delegate from Pakistan said that the most important point was to address the issue of access and that the privatisation of science and knowledge has led to some concerns. In particular, he asked how the role of the private sector could be regulated at the international level, as the intellectual property regime was restricting the right to enjoy the benefits of scientific progress and its application.”

Dangerous tech exports
Agence France-Presse reports on the introduction in the US House of Representatives of a bill – the Global Online Freedom Act – intended to limit the export of Internet surveillance or censorship technology.
“‘There is a criminal cooperation between Western hi-tech companies and authoritarian regimes,’ [Reporters Without Borders’ Clothilde] Le Coz said.
‘The surveillance tools sold by these companies are used all over the world by armed forces, intelligence agencies, democratic governments and repressive regimes.
‘The leading exporters of these technologies include the United States, France, Germany, Italy, United Kingdom and Israel,’ she said. ‘Companies should have a responsibility when selling their technologies abroad.’”

Corporate negligence
The Canadian lawyers of a Guatemalan man have announced he is suing Toronto-based mining company HudBay – the third human rights lawsuit related to violence near a project it used to own in Guatemala – for alleged negligence over its handling of security operations.
“HudBay knew it was operating in a very violent country, but instead of hiring or training security staff with acceptable standards and supervision, HudBay’s Guatemalan subsidiary hired local security personnel with a track record of violence, supplied them with guns and deployed them without the controls or supervision we demand and take for granted in Canada.”

Mission impossible
The Overseas Development Institute’s Neil Bird reflects on the apparent futility of trying to get nearly 200 self-interested governments to agree on anything of substance at summits like the Durban climate talks.
“In some respects, these negotiations hardly matter. The global response to climate change continues to progress at a snail-like pace: just consider for a moment that this is the 17th Conference of the Parties, it is not the 3rd, 4th, 5th or even 10th meeting. How many more international gatherings will be required for the countries attending to agree a global compact that both protects the environment and offers hope to the poorest people who are most vulnerable to climate change?
Perhaps what we have learned most over the past decade is that global negotiations take on a life of their own and, at worse, appear little more than a self-serving exercise.”

Enduring colonialism
As controversy continues to swirl over living conditions in northern Canada’s Aboriginal community of Attawapiskat, Queen’s University’s Robert Lovelace argues “that while the misery is in the ‘North’, the source of the problem is in the ‘South’.”
“It is difficult in the face of human suffering to turn attention to the systemic and structural reasons that have led to this catastrophe, but this is the very time when thoughtful analysis is needed. The homes are small and cold. The tedium of poverty bears down day by day and those who have stolen your children’s future call the daily bread on your table a ‘handout.’ It is difficult to feel anything but shame through the numbing that is required to get by every day.
But there are reasons behind this suffering. There is a history. There is a structure to oppression, denial and indifference that houses this suffering and there is a system that perpetuates it.”

Business friendly
The World Bank’s Célestin Monga argues that improving “all the many ‘doing business’ indicators” is not the key to success for poor countries.
“By the way, China, Vietnam, and Brazil, which have been among the top-performing countries in the world for the past 20 years, are consistently ranked quite low when it comes to the ease of doing business; Brazil is 126th, Vietnam 98th, and China ranks 91st, behind such star economies as Kazakhstan, Azerbaijan, Belarus and Vanuatu.”

Oppressed by carbon
Le Monde Diplomatique provides a write-up of a new book by “heterodox ecologist” Frédéric Denhez who rails against “the dictatorship of carbon.”
“Society obeys ‘mechanical’ rules: we knew the markets, free trade, gross domestic product (GDP); now we are discovering the measurement of carbon emissions as the indicator of the 21st century. The economic ruling class uses it to construct a narrative that pins blame on the individual and impedes all structural change. So we measure the emissions linked to the use of a product, but rarely those associated with its manufacture.
As a result, cash for clunkers promotes the destruction of cars that pollute less than the industrial process required to build new ones!’” (Translated from the French)

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.”

Latest Developments, November 24

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Water grab
The International Institute for Environment and Development has released a new report warning that the African “land grab” phenomenon also involves water rights, with implications extending far beyond the land being sold.
“‘Companies that acquire land for irrigated farming will want secure water rights, but long-term contractual commitments can jeopardise water access for local farmers,’ says co-author Lorenzo Cotula. ‘This affects not only the people who have customarily used the land that is being leased, but also distant downstream users who can be hundreds of kilometres away and even across an international border.’
The Gibe III dam in Ethiopia will enable irrigation on 150,000 [hectares] of land the Ethiopian government has allocated to investors, but studies suggest this project would lower the level of Kenya’s Lake Turkana – on which half a million Kenyans depend — by eight metres by 2024.”

Intellectual property and health
Intellectual Property Watch reports on a high-level World Trade Organization meeting on how best to balance the demands of trade, intellectual property and public health.
“There were variations in views of the issues of the health, trade and IP officials that echo differences typical across national governments. [World Health Organization head Margaret] Chan was more outspoken about putting health matters ahead of commercial interests, using especially strong language against the tobacco industry, which is lobbying intensively in trade arenas like the WTO to stop national governments from taking actions against tobacco packaging aimed at discouraging smoking. Chan also said that an “elephant in the room” is policy incoherence within governments, where different agencies are working in different directions, and then they expect the international organisations to solve their internal issues.”

Intellectual property and poverty
United Nations Assistant Secretary-General for Economic Development Jomo Kwame Sundaram argues stronger intellectual property rules have “ominous implications” for the world’s poor.
“Affordable and equitable access to existing and new technologies is crucial for human progress and sustainable development in many areas, including food security and climate-change mitigation and adaptation.
The same is true of affordable access to essential medicines, on which progress has been modest. By 2009, such medicines were available in just 42% of poor countries’ public facilities and 64% of private-sector facilities. Meanwhile, median prices in the public sector were 2.7 times the international reference prices and 6.1 times higher in the private sector!”

The price of secrecy
Le Monde reports on Switzerland’s growing success at getting cash-strapped countries to sign agreements that preserve bank secrecy despite G20 pledges to tackle tax havens.
“A number of countries in financial difficulty are in fact negotiating similar deals [to those recently signed by Germany and the UK] with Bern or are preparing to do so, such as Italy and Greece, according to several sources. But the Rubik accords are highly problematic, says a chorus of officials and NGOs. For starters, according to a source that is well acquainted with the file, ‘the text is a way for Switzerland to snuff out European efforts to obtain automatic exchange of financial information, which it absolutely does not want.’ ‘Morally, these deals are tough to swallow because they maintain the anonymity of account holders,’ adds the French government’s point man on the fight against tax havens, François d’Aubert.” [Translated from the French.]

Phoned-in CSR reports
The Guardian reports on a study that suggests companies are not taking environmental reporting seriously.
“The examination of more than 4,000 corporate social responsibility (CSR) reports and company surveys by a team at Leeds University found ‘irrelevant data, unsubstantiated claims, gaps in data and inaccurate figures’ – a finding that will cast serious doubt over the burgeoning sector.
Among the most colourful mistakes and omissions made by some of the world’s biggest corporations were a company whose carbon footprint was four times that for the whole world, and a carmaker and power group which both, entirely legally, managed to excise a huge coal plant from their pollution record.”

Chevron’s rights suspended
Reuters reports Brazil has suspended Chevron’s drilling rights following an offshore spill earlier this month.
“Chevron initially attributed the ‘sheen’ on the sea surface to naturally occurring seepage from the seabed. The company is being investigated by the Federal Police, which noted discrepancies between Chevron’s account of the spill and the government’s.
The Frade leak, while small, is likely to provide more ammunition for the growing worldwide opposition to offshore drilling in the wake of the estimated 4-million-barrel BP Deepwater Horizon spill in the Gulf of Mexico in 2010.”

Nuclear weapons-free zones
Massachusetts Institute of Technology professor emeritus Noam Chomsky argues that despite President Obama’s “rhetorical commitment” to nuclear non-proliferation, America’s actions “are in direct contradiction” to this posture.
“Parenthetically, we may add that US insistence on maintaining nuclear facilities in Diego Garcia undermines the [nuclear weapons-free zone] established by the African Union, just as Washington continues to block a Pacific NWFZ by excluding its Pacific dependencies.”

Linking transparency and procurement
Tax Justice Network guest blogger Matti Ylönen writes about a proposal in Helsinki to link corporate transparency and public procurement, an idea he hopes will spread beyond northern Europe.
“While discussions on binding Country-by-Country reporting standards are steadily gaining momentum in international fora, the city board of Helsinki has decided that it’s time to open another track. After returning the initiative earlier for further preparation, the board is now ready for Helsinki to start the background work on how the City of Helsinki could positively favour companies that report their key financial information openly and on country-by-country basis in public procurement.”

Republic of Lakotah
Al Jazeera asks if Native Americans could have their own country within US borders.
“In 2007, the Lakotah Freedom Delegation – a group of Native Americans led by activist Russell Means – declared sovereignty from the United States and proposed the founding of a new country known as the Republic of Lakotah.
The proposed nation would be based on territory demarcated by an 1851 land agreement made between the U.S. government and Lakotah tribal leaders. The Republic of Lakotah would cover a 200,000-square-kilometre space that is currently claimed by the states of North Dakota, South Dakota, Nebraska, Montana and Wyoming.
The U.S. government does not recognise Lakotah or its representatives, stating that its leaders were not democratically-elected and that members are still subject to U.S. law. Lakotah would be a federation of semi-autonomous tribal groups, and governance would be based on an interpretation of a pre-European indigenous political format.”

Latest Developments, October 20

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Deregulating Africa
The top headline in the World Bank’s new Doing Business report is Sub-Saharan Africa’s newfound enthusiasm for business-friendly regulations.
“Over the past year a record number of governments in Sub-Saharan Africa changed their economy’s regulatory environment to make it easier for domestic firms to start up and operate. In a region where relatively little attention was paid to the regulatory environment only 8 years ago, regulatory reforms making it easier to do business were implemented in 36 of 46 economies between June 2010 and May 2011. ”

Seed politics
Intellectual Property Watch’s Catherine Saez reports that the Geneva-based International Union for the Protection of New Varieties of Plants is facing calls for greater transparency and protests from farmers over seed policies.
“Protesters’ main concern is the fact that the 1991 UPOV Convention prevents the saving and sharing of farmers seeds. If they originally buy protected varieties, farmers would like to be able to save some of their harvest and share and exchange some of it with other farmers without paying additional royalties.
They claim that original seeds were removed freely from farmers’ fields by breeders. They add that those seeds that were used to engineer new varieties were selected and saved over thousands of years by farmers.”

Connecting the dots
The UN News Centre reports that Secretary General Ban Ki-moon and General Assembly President Nassir Abdulaziz Al-Nasser are calling for a “courageous” blueprint to tackle both world poverty and environmental destruction ahead of next year’s sustainable development summit in Rio de Janeiro.
“Mr. Al-Nasser stressed the need for policy-makers to ‘connect the dots between issues’ so that they develop policies that are ‘coherent, effective and beneficial.’
He added it was vital to ensure that the outcome of Rio+20 ‘is innovative and at the same time practical in its approach to tackling issues of sustainable development and poverty eradication.’”

The everywhere war
The UN News Centre also reports that Christof Heyns, the organization’s top expert on “extrajudicial, summary or arbitrary executions” is calling on national governments to respect international agreements in pursuing their security interests.
“On targeted killings, the Special Rapporteur said the current use of drones and raids into countries where there is not a recognized armed conflict to kill an opponent, such as in Pakistan or Yemen, is highly problematic
While such operations may be designed to hit a particular target, civilian casualties remain, and it is used on such a large scale that it can hardly be described as targeted.
‘The use of such methods by some States to eliminate opponents in countries around the world raises the question why other States should not engage in the same practices. The danger is one of a global war without borders, in which no one is safe,’ stressed Mr. Heyns.”

Sins of omission
Research firm Maplecroft has released a report assessing the worldwide risks faced by businesses of being complicit in human rights violations, with a particular emphasis on countries that are essential the global supply chain, such as China, India and Mexico.
“The ongoing use of forced labour in emerging economies indicates an unwillingness or a critical lack of capacity to address both the symptoms and causes, leaving business to police the problem itself,” according to Maplecroft’s Alyson Warhurst. “Responsible organisations must ensure that they and their business partners are fully compliant with international labour standards or they risk damaged reputations, litigation, investor alienation and reduced profits from consumer backlash and hidden costs relating to reduced productivity linked to adverse working conditions.”

Greasing palms, pumping oil
IRIN reports that even before Uganda begins pumping oil, concerns over the dreaded “resource curse” are growing, due in no small part to the actions of foreign companies.
“Prime Minister Amama Mbabazi has been accused of receiving funds to lobby for oil production rights on behalf of the Italian oil firm ENI, which eventually lost its bid for exploration rights to British firm Tullow Oil. Along with Mbabazi, Foreign Affairs Minister Sam Kutesa and Internal Affairs Minister Hilary Onek are both accused of taking bribes from Tullow Oil worth over US$23 million and $8 million respectively.”

Smokin’ profits
The Wall Street Journal reports Philip Morris International’s third-quarter earnings were up 31 percent, largely thanks to increased sales in Asian markets such as Indonesia and the Philippines.
“The company has sought to increase growth in emerging markets as volumes have slipped in more established European markets. As a result of the volume decline in developed countries, Philip Morris must enact price increases or cut costs to increase or maintain profitability.”

The price of gold
Blogger Tim Hoiland draws attention to a recent Tufts University report on the costs and benefits of Guatemala’s Marlin gold mine, which is owned by Canada’s Goldcorp.
“Overall, the report concludes that, when juxtaposed against the long-term and uncertain environmental risk, the economic benefits of the mine to Guatemala and especially to local communities under a business-as-usual scenario are meager and short-lived.”

Latest Developments, September 27

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Equitable IP
Intellectual Property Watch reports on the opening of the World Intellectual Property Organization’s annual meeting with participants discussing matters ranging from the UN agency’s so-called Development Agenda to the protection of traditional knowledge, folklore and genetic resources.
“Opening day statements from a number of governments praised the current positive environment at WIPO and cited work that is progressing. But they also ranged in focus. India called for continued attention to an “equitable” IP system that balances rights of innovators with costs to society of granting them monopolies.”

Health Impact Fund
New School University’s Sakiko Fukuda-Parr and Oxford’s Proochista Ariana “find much merit” in the idea of a Health Impact Fund that would provide incentives to develop treatments for illnesses that primarily affect the world’s poor, but they also raise a number of concerns on matters of distribution, intellectual property rights, and alliances.
“While healthcare is undoubtedly important, it is naive to assume that it provides the solution to the kinds of health problems the poor face today. It certainly is not the most cost-effective approach and as such less likely to be a sustainable solution to the growing burden of ill health. Efforts that address root causes (ranging from water and sanitation to housing conditions and livelihoods) will serve to alleviate more than just one disease and thereby have further reaching impact on the lives of the poor. The donor governments and their taxpayers, therefore, are more likely to improve health and sustain such improvements if they enhance their efforts at alleviating poverty more generally.”

Security Council fairness
The UN News Centre reports representatives of several West African nations have called for an end to the “intolerable injustice” of Africa’s exclusion from permanent Security Council representation.
“Mauritania’s Foreign Minister Hamady Ould Hamady called for Security Council reform that would include permanent representation for Africa and the Arab Group. ‘The Security Council must fairly reflect the will of the entire international community,’ he said.”

Arab Spring redux
The UN News Centre also reports on a warning that world leaders ignore inequality and political disenfranchisement at their peril.
“‘In a world linked by social media, the risk of a peoples’ uprising that transcends continents and borders is real. It is a kind of social chaos which we must prevent,’ said Surujrattan Rambachan, Trinidad and Tobago’s Foreign Minister, in his address to the annual general debate of the General Assembly yesterday.
‘The world must now more than ever allocate its resources equitably, ethically, sustainably and transparently.’”

Canadian bribery
TrustLaw’s Luke Balleny suggests that after taking nearly a decade just to establish a unit tasked with enforcing its foreign bribery laws, Canada is showing signs it may at last be getting tough.
“Since the Niko Resources prosecution, two more Canadian companies have been raided by the RCMP’s International Anti-Corruption Unit. The mining company Blackfire Exploration had its Calgary office searched on July 20 over allegations that the company bribed a Mexican mayor. Just over a month later, engineering giant SNC-Lavalin had its Ontario offices searched over possible corruption involving a $1.2 billion World Bank bridge project in Bangladesh.”

Hit ‘em where it hurts
The CBC reports on the operations of Canadian mining companies in Guatemala where much of the “violence revolves around the drug cartels and the mines” and their opponents are turning to Canadian courts for help.
“The latest is a multi million dollar claim against Hud Bay Minerals filed by 11 Mayan women allegedly raped when they were cleared off the land 4 years ago. The law suits are a new tactic in an old war – a war over land: – the government and the mining companies on one side, the Mayans and human rights workers on the other.”

Default and devalue
Martin Feldstein, a Harvard economist and top advisor in the Reagan administration, says the only way for Greece to save itself is to default on its debt even if the consequences for the eurozone could be dire.
“If Greece leaves the euro after it defaults, it can devalue its new currency, thereby stimulating demand and shifting eventually to a trade surplus. Such a strategy of “default and devalue” has been standard fare for countries in other parts of the world when they were faced with unmanageably large government debt and a chronic current-account deficit. It hasn’t happened in Greece only because Greece is trapped in the single currency.”

Krugman’s crisis
Princeton economist Paul Krugman undergoes a crisis of faith in his chosen field as he perceives among his colleagues a lack of historical understanding and of desire to learn the truth.
“In 1971 it was clear that economists knew a lot that they hadn’t known in 1931. Is that clear when we compare 2011 with 1971? I think you can actually make the case that in important ways the profession knew more in 1971 than it does now.”