Latest Developments, March 13

In the latest news and analysis…

Systemic atrocity
Former US marine Ross Caputi wonders why Americans who are so outraged at the murder of 16 Afghan civilians by a rogue US soldier do not seem to notice when entire families are wiped out by US drones.
“It is believed in the west that some innocent death is excusable in war, as long as the deaths are not intended, and even if those deaths are foreseeable. But if civilian deaths are foreseeable in a course of action, and we take that action anyway, did we not intend them? I doubt Afghans would feel much consolation knowing that their family members were not directly targeted; rather, we just expected that our actions would kill a few people and it happened to be their family members – an unfortunate side-effect of war.

The consequentialist will argue that the good results outweigh the bad, that democracy, freedom and the liberation of Afghan women will improve the lives of Afghans so much that the deaths of a few are justified. This is an easy judgment for westerners to make from the comforts of their own homes; but it stinks of the same patriarchy and arrogance of the white man’s burden that justified colonialism for so many years. Has anyone consulted Afghans and asked them if they think the good that the west has promised will come of this occupation is worth the lives of their family members?”

Transparency flaws
The Tax Justice Network has released a new report in which it calls into question the Organisation for Economic Co-operation and Development’s mechanism for assessing the financial transparency of the world’s countries and territories.
“At the time of writing, for instance, the OECD is running a ‘black, white and grey’ list of jurisdictions, according to its internationally agreed tax standard. The blacklist is empty. The grey list consists of three jurisdictions – Nauru, Niue and Guatemala. On this measure, everyone else is clean! Including some of the world’s dirtiest secrecy jurisdictions, such as Panama, the British Virgin Islands and the UAE (Dubai.)”

GOP climate change
The Financial Times looks at the shifting climate-change positions of leading US Republicans.
“[Mitt] Romney and [Newt] Gingrich, along with many other Republicans, had previously supported both the scientific case for climate change and the need to address it, as did the party’s 2008 presidential candidate, John McCain.
Observers have attributed the party’s shift since the last election to a range of factors, including the rise of the anti-regulatory Tea Party and fears about unemployment. Others suggest the change is due to fossil fuel interests using so-called super PACs – the new generation of political action committees empowered by a 2010 Supreme Court ruling allowing businesses and unions to spend much more on political campaigns than previously permitted.”

Sovereignty issues
Former NATO secretary general Javier Solana argues the world must move beyond “certain antiquated ideas about sovereignty.”
“On a global scale, this complex and interdependent world needs an organization of states and structures of governance oriented towards responsible dialogue, the aim being to mitigate abuses of power and defend global public assets. Without such structures, the world risks a competitive and disorderly race to the bottom among states – as often occurs with taxation – together with a protectionist backlash. History has shown that such developments often lead to disastrous conflicts.

Indeed, the dynamics of interdependence have become well established – so much so that they cannot be reversed. To adhere to a narrow Westphalian concept of sovereignty in this world is an unwise anachronism at best, and a dangerous gamble at worst.”

Eternal pollution
Dow Jones Newswires reports that opponents of Newmont Mining’s controversial Minas Conga copper and gold project in Peru have released a paper detailing their environmental concerns.
“ ‘Effluents from the Conga waste rock piles and the tailings will need to be collected and treated forever,’ the report says. ‘Thus, the Conga site will require active maintenance of the remaining facilities and operation of active water treatment facilities, not simply for 50 or 100 years post-closure, but forever.’ ”

Owning workers
The Center for Global Development’s Michael Clemens takes exception to a recent New York Times piece that suggested health workers are being stolen from Africa.
“That article approvingly cites a horrific proposal to put recruiters of health workers on trial in The Hague for crimes against humanity. This is breathtakingly misguided. Recruiters do not ‘steal’ people. They give information to people about jobs those people are qualified for. The professional ambitions of those people have equal value to yours and mine, and those ambitions cannot be realized without information. International recruiters allow African health workers the chance to earn ten to twenty times what they could make at home. In other words, recruiters allow them access to professional opportunities that people like me and Times journalist Matt McAllester take for granted by luck of birthright citizenship.”

Natural solutions
Smallholder farmers hold the key to sustainable food security if they practice “climate-smart agriculture” that often bears little resemblance to the Green Revolution of the 20th Century, according to Rwandan President Paul Kagame and International Fund for Agricultural Development head Kanayo Nwanze.
“On a larger scale, farmers across Rwanda are replacing greenhouse-gas-producing chemical fertilizers with manure. In some areas of the country, smallholders are also now terracing their land and using other natural techniques to improve the soil’s water-retention capacity and quality, as well as to increase their crop yields.
Using these approaches, Rwanda has quadrupled its agricultural production over the past five years. Indeed, thanks to such remarkable progress in such a short time, Rwanda is now a food-secure country.”

Wrong changes
In a Q&A with Al Jazeera, Pambazuka News editor Firoze Manji discusses the likely impacts of the controversial viral video Kony 2012.
“What meaningful change will this bring about, other than reinforcing prejudices about ‘the African savage’, someone who needs to be civilised by the white man?
What difference will it make to those villagers and farmers who have been locked up in protected villages? What meaningful change will this bring about to the grabbing of vast territories of land for oil exploitation by multinational corporations?
What this story will legitimise is the greater presence of US troops on African soil seemingly to deal with the [Lord’s Resistance Army], an already defeated entity.”

Latest Developments, January 20

 

In the latest news and analysis…

The value of nature
The Guardian reports on a new study that argues some of the world’s poorest people should be paid $500 billion a year for the service they provide by preserving natural habitats.
“Many of the benefits of conservation, so-called ‘ecosystem services’, are invisible – for instance, maintaining wooded land can help to prevent mudslides during heavy rainfall, and provides valuable watersheds that keep rivers healthy and provide clean drinking water, as well as absorbing carbon dioxide from the air. These benefits are not assigned an economic value, however, so that chopping down trees or destroying habitats appears to deliver an instant economic return, when in fact it is leading to economic losses that are only obvious when it is too late.”

Hunger games
The World Development Movement’s Innocent Sithole writes about a new report on the role of European banks and private finance in food speculation and “land grabbing.”
“Our report identifies the biggest culprits in food speculation as Deutsche Bank, Barclays, the Dutch pension fund ABP, the German financial services group Allianz and French banking group BNP Paribas. We have since nominated Barclays for the 2012 Public Eye ‘shame’ awards for its financial speculation in food prices. Barclays is estimated to make up to £340 million a year from speculating in food ‘futures’ markets, making it the biggest UK player in the markets.”

Politics of xenophobia
Yahoo! News reports on the “hard line” taken by Republican presidential hopefuls on both legal and illegal immigration in the lead-up to the South Carolina primary.
“In talking about reducing legal immigration, Santorum–intentionally or not–aligned himself with the group NumbersUSA, which is spending up to $150,000 in South Carolina to run TV ads that criticize the federal government for admitting what the group considers to be too many legal immigrants each year.

Both legal and illegal immigration streams to America have fallen sharply since the recession began in 2008, even as state legislatures have increasingly passed immigration-related laws over the same period.”

Lethal policy
The University of Notre Dame’s Mary Ellen O’Connell argues America’s increasing use of “targeted killings” – a tactic it publicly opposed in the early years of the George W. Bush administration  – runs counter to its stated goal of promoting a “just and sustainable international order where the rights and responsibilities of nations and peoples are upheld, especially the fundamental rights of every human being.”
“The US did not support such killing for fundamental reasons of law and morality. Fundamental principles of law protect the human right to life and due process of law. Unlike torture, which is never permitted, states are permitted to allow designated authorities to carry out the use of lethal force in certain limited situations. In situations of armed conflict hostilities, lawful combatants will not be prosecuted for killing that complies with international humanitarian law. Today, under the international legal definition of armed conflict, the United States is involved in such hostilities in one country only: Afghanistan.
Beyond Afghanistan, any use of lethal force by designated authorities of the United States must follow the normal human rights limits on peacetime resort to lethal force. Authorities may engage in lethal force when necessary to save a human life immediately, if there is no alternative. In other cases, an attempt to arrest is required, followed by a fair trial within a reasonable period.”

Green growth
Oxfam’s Kate Raworth looks into the extent to which G20 countries have succeeded in decoupling economic growth and resource use.
“The vast majority of high-income countries in the G20 have so far provided no evidence that they can make economic growth environmentally sustainable. Of course, most have barely started to put in place the policies required to make it happen – but delay will only make it harder. So what does the G20 evidence show? That absolute decoupling is possible (we’ve seen it!), at least for some of the countries, for some resources, for some of the time. But that’s a far cry from believing that environmentally sustainable GDP growth is possible everywhere, all the time, indefinitely.”

OccupyLSX
The Institute of Development Studies’ Alex Shankland writes about the “subversive ruliness” of Occupy the London Stock Exchange.
“The Occupiers are fully committed to non-violence, but also to using direct action and surprise tactics that may or may not involve breaking the law.
So far, so unruly. But I would argue that paradoxically the real significance of the model of contestation provided by the camp lies not in law-breaking, but in rule-making. Transparent, rule-bound behaviour is absolutely central to the political practices that characterise OccupyLSX. This, in turn, is central to the unique power of the challenge that it poses to the intermingled political and financial interests whose unruly, untransparent and often downright illegal practices have left their disastrous mark both on London and on communities across the world.”

Ecuadorean example
Jawaharlal Nehru University’s Jayati Ghosh argues that in the space of a few short years, Ecuador has gone from a “basket case” to a development example for the world.
“All this may sound too good to be true, and certainly the process of transformation has only just begun. There are bound to be conflicts with those whose profits and power are threatened, as well as other hurdles along the way. But for those who believe that we are not condemned to the gloomy status quo, and that societies can do things differently, what is happening in Ecuador provides inspiration and even guidance. The rest of the world has much to learn from this ongoing radical experiment.”

Fear of debt
Robert Skidelsky, a member of the British House of Lords, argues there are a number of logical flaws to the prevailing thinking that debt reduction through “fiscal consolidation” is necessary for countries to enjoy healthy, sustainable economies.
“Third, the national debt is not a net burden on future generations. Even if it gives rise to future tax liabilities (and some of it will), these will be transfers from taxpayers to bond holders. This may have disagreeable distributional consequences. But trying to reduce it now will be a net burden on future generations: income will be lowered immediately, profits will fall, pension funds will be diminished, investment projects will be canceled or postponed, and houses, hospitals, and schools will not be built. Future generations will be worse off, having been deprived of assets that they might otherwise have had.”

Latest Developments, October 26

In the latest news and analysis…

License to bribe
Main Justice reports that a co-author of a US Chamber of Commerce proposal to water down the Foreign Corrupt Practices Act has just become the FBI’s general counsel.
“In its report ‘Restoring Balance: Proposed Amendments to the Foreign Corrupt Practices Act’ the Chamber said that the FCPA is a costly burden to business and ‘there is also reason to believe that the FCPA has made U.S. businesses less competitive than their foreign counterparts who do not have significant FCPA exposure.’ The paper called for five specific reforms including limiting a company’s ‘successor liability’ for the prior actions of a firm it has acquired and giving a clear definition of ‘foreign official’ under the statute.
The Open Society Foundation, a George Soros-funded organization issued a report, charging that [Andrew] Weissmann’s plan would ‘significantly reduce the scope and efficacy of the FCPA while substantially undermining more than 30 years of successful U.S. leadership in promoting global anti-corruption standards.’ ‘[T]he Chamber’s proposal looks more like a license to commit pervasive and intentional bribery than a modest attempt to eliminate the risk of prosecutorial over-reach,’ the report said.”

Proposed EU legislation I: A victory for transparency
Tearfund’s Jonathan Spencer welcomes proposed EU legislation that would require extractive industry companies listed in Europe and operating abroad to disclose what they pay to host governments on a project-by-project basis.
“[This information] will play a key role in releasing resources for development, improving transparency and engaging citizens with their governments. Evidence from other countries has shown that where details of budgets and projected expenditure is published, the money is much more likely to reach its intended destination and support development.”

Proposed EU legislation II: Bad for business
But a number of the companies – including Anglo American, Rio Tinto, Shell and Total – that would be subject to the proposed legislation have argued in a letter to the European Commission that such regulations are misguided and would be bad for business.
“One example is oil or gas fields which cross borders, where governments are understandably careful to safeguard the confidentiality of the terms they offer to investors,” said the letter.
“Further damage to competitiveness will be caused by the additional cost and administrative burden of project-level reporting.”

Proposed EU legislation III: No legal teeth
On the other hand, France’s Citizen Forum for Social and Environmental Responsibility argues the European Commission’s proposal lacks legal teeth.
“In fact, notwithstanding progress in certain areas such as reporting obligation, the [European Commission’s] statement on social and environmental responsibility does not address other crucial questions. The proposal lacks concrete measures to improve the legal responsibility between the parent company and its subsidiaries: companies based in Europe cannot, therefore, be considered responsible for violations perpetrated by their subsidiaries and subcontractors in the South. Nor does the statement spell out the legal avenues that would guarantee real access to justice for all victims of violations.” (Translated from the French.)

South-South cooperation
The Guardian has reproduced part of an IRIN series on how countries like Brazil, India, China and South Africa are changing the world of aid as they become increasingly significant donors.
“Many are not new at all – India, Brazil and China have been giving aid for decades – but what is new is that a group of non-western donors is giving more humanitarian and development aid year on year, and reporting it more consistently to official trackers, such as the UN’s Financial Tracking System (127 donors reported aid in 2010).
As they “emerge”, the traditional hegemony held by western donors over how and where aid is dispersed is starting to be dismantled.”

South-South colonization
While many within the development industry speak of the growing importance of South-South cooperation, Al Jazeera uses the issue of African land grabs to raise the question of possible South-South colonization.
“What would Gandhi say today were he to know that Indians, who were only freed from the shackles of colonialism in recent history, were now at the forefront of this “land-grabbing” as part of the race for foreign control over African land and resources; currently being called the Neo-Colonialism of Africa?,” ask the Ethiopian authors of an open letter to the people of India.

One-step solutions
The University of Ottawa’s Rita Abrahamsen argues that attempts to rein in trading of “conflict minerals” are well-intentioned but may not be particularly helpful for ending African conflicts.
“The danger is that by making illegal mining the only story about the conflict in eastern Congo, other causes—requiring more complex solutions—will be ignored. Meanwhile, the international community will invest vast sums in cumbersome tracking procedures that may be easily avoided in an environment of weak institutional capacities and porous borders.
Ultimately, then, the campaign against conflict minerals might do more to restore Canada’s image abroad and make Canadians feel like ‘good global citizens’ than it does to bring peace to the DRC.”

Size doesn’t matter
The UN Population Fund has released its annual State of World Population just as the number of Earth’s inhabitants is set to hit 7 billion, but its authors are more concerned with how people live than with raw numbers.
“Environmental journalist Fred Pearce echoes the view that a small proportion of the world’s population takes the majority of resources and produces the majority of its pollution.
The world’s richest half billion people— about 7 per cent of the global population— are responsible for about 50 per cent of the world’s carbon dioxide emissions, a surrogate measure of fossil fuel consumption. Meanwhile, the poorest 50 per cent are responsible for just 7 per cent of emissions, Pearce wrote in an article for Yale University’s “Environment 360” website. ‘It’s overconsumption, not population growth, that is the fundamental problem,’ Pearce argued”

Latest Developments, October 14

In the latest news and analysis…

Responding to Occupy Wall Street
The University of Manitoba’s Hari Bapuji and the University of Massachusetts’s Suhaib Riaz examine the nature of the Occupy Wall Street protests and advise US business leaders on how best to respond.
“So if Occupy Wall Street is leaderless and unfocused, why isn’t it going away? The persistence of the ‘occupations’ is a signal that there is authentic, deep-seated unhappiness with the failings of the U.S. economic system. It’s an indicator that economic inequality is perceived as an important issue — one requiring business’s immediate attention.
The demonstrators are asserting that they are stakeholders in American business, and they’re correct — they are stakeholders, as consumers, as employees, and as citizens affected by the financial system in general. Businesses would do well to accept that fact and engage with the protesters, rather than trying to demonize or dismiss them.”

Constructive criticism
The Globe and Mail reports Mark Carney, the governor of Canada’s central bank and a potential chairman of the Financial Stability Board tasked with reforming international banking rules, has called the Occupy Wall Street and related protests “entirely constructive.”
“In a television interview, Mr. Carney acknowledged that the movement is an understandable product of the ‘increase in inequality’ – particularly in the United States – that started with globalization and was thrust into sharp relief by the worst downturn since the Great Depression, which hit the less well-educated and blue-collar segments of the population hardest.”

International media bias
The Institute for Security Studies’ Arthur Chatora accuses the international media of uneven and perhaps agenda-driven coverage of human rights abuses in the Libyan conflict.
“This biased media coverage raises questions about the credibility of media organisations and their agenda. Is it because the presence of widespread evidence of racially motivated human rights abuses committed by the TNC forces raises moral and ethical questions that challenge the validity of the notion of a “humanitarian war”? The responsibility assumed by NATO and the TNC forces to protect civilian lives from abuse by Gaddafi forces is also questionable, as it appears this mandate does not seem to extend to the protection of black Libyans and African immigrants.”

International legal bias
The International Institute for Environment and Development’s Lorenzo Cotula argues the current international legal regime encourages land grabs in Africa.
“National and international legal developments have strengthened the protection of companies against adverse action by the host government. But much less progress has been made to strengthen the rights of local people. As a result, the ‘shadow’ that the law casts on interactions between large companies and local villagers presents different shades of grey: those already benefiting from greater access to capital, expertise and influence also enjoy stronger rights.”

Tax agreement inequality
swissinfo.ch reports that not everyone is convinced Switzerland’s new tax agreement with India – one of 70 negotiated by the European country since its government pledged to reduce its famous banking secrecy in 2009 – is much more than window dressing.
“‘As seen by the recent cases of Germany and the United Kingdom, a good [double tax agreement] is not enough. These powerful neighbours have already negotiated new agreements which provide easier access to tax information. The Indian government got the maximum it could as an emerging market but influential industrial countries can get more information,’ [according to Alliance Sud’s Mark Herkenrath].
The Alliance Sud specialist said it would be extremely difficult for India to get the tax information it needs via a DTA and the Indian government would have to request an additional agreement for a withholding tax and special information disclosure clauses.”

Intellectual property vs access to medicines
Daniele Dionisio, a member of the European Parliament Working Group on Innovation, Access to Medicines and Poverty-Related Diseases, voices concern about a new plan introduced by the US during last month’s Trans-Pacific Partnership negotiations.
“Taken together, the non-transparent dynamics bound up with TEAM [Trade Enhancing Access to Medicines] compound fear that this initiative would be something that backs big pharma rather than making headway on non-discriminatory access to medicines in developing countries. This is particularly worrying owing to the fact that TEAM will probably play as the basis for future agreements between the US and other developing and developed countries. This concern seemingly harmonizes with a swipe taken by the US rep on 14 September at the WTO trade policy review of India, maintaining that India’s IP trade policy is out of sync with international best practices.”

The business of corruption
ECONorthwest’s Ann Hollingshead uses some real-world examples to take on the US Chamber of Commerce’s contention that the Foreign Corrupt Practices Act is a threat to American business.
“Has an American company never lost a contract in the history of the FCPA because its officers were not allowed to bribe? No. But does the FCPA provide a systematic impediment to American business competitiveness abroad? No. When an American businessman refuses to pay a bribe, it doesn’t mean the official necessarily goes looking elsewhere. As in Mexico, often the FCPA allows for a shift in the business dynamics, changing the playing field for everyone involved. Moreover, as the Argentine case shows, many businesses welcome this assurance and can use it to their benefit.”

Race to the bottom
The Economist looks at the growing movement against tax havens and the relative ineffectiveness of regulations to this point in stopping the race to the bottom.
“One avenue for reform is to place a greater duty on companies to explain what profits they make where. That would help prevent the worst abuses of transfer pricing scams, in which tax havens play a handy role. The muddled Dodd-Frank reforms, passed by Congress in America and now being implemented by regulators, supposedly go some way towards this; so does legislation being drafted in the EU.”