Latest Developments, June 12

In the latest news and analysis…

Change of plans
Xinhua reports that France has decided to delay its troop withdrawal from Mali until after the July/August presidential election:

“Instead of the 2,000 troops initially intended to stay in Mali until July, the ‘Serval’ force has decided to keep 3,500 soldiers until the end of the presidential election, according to a military source.

Two thousand of the 5,000 troops that were in Mali have returned to their bases in France.” [Translated from the French.]

Buyers and sellers
Inter Press Service reports on new land-grab data detailing who is buying and who is selling around the world:

“The U.S., Malaysia, United Arab Emirates and the UK are top foreign investors not only in Africa but in other countries, according to the [International Land Coalition]’s new Land Matrix Global Observatory. The Land Matrix is a website that provides the locations and details of nearly 1,000 land transactions all over the world.
The largest transnational land deals are in South Sudan and Papua New Guinea. The Land Matrix lists the individual land deals including the companies involved, the size of the acquisition and intended use. In Papua New Guinea, many of the land deals appear to be for palm oil production.”

Emerging bubble
The Financial Times reports that the value of “emerging market” currencies, stocks and bonds is plunging as foreign investors unload newly undesirable assets:

“The South African rand and the Brazilian real touched four-year lows against the US dollar on Tuesday, and the Indian rupee fell to a record low. Even relatively robust countries like the Philippines and Mexico – long favourites of investors – have been hit by a spate of selling. Some central banks have begun to intervene to stem the currency slides.

Both international and local currency emerging market bonds have been pummelled, sending borrowing costs higher.

Benoit Anne, a senior strategist at Société Générale, said central bank money had arguably inflated a bubble in emerging markets, which was now unravelling as investors priced in a change in Fed policy. ‘This will not be a short-lived sell-off,’ he predicted.”

US tax havens
The Financial Times also reports that a single-storey building in the US state of Delaware “serves as the registered address for 278,000 companies”:

“But Delaware – along with other states such as Nevada and Wyoming that have similar rules – also houses a plethora of shell companies, in some cases which can facilitate illicit activity ranging from tax evasion to money laundering to healthcare fraud. For these companies, the attraction of Delaware is the ease with which companies and partnerships can set up shop there and the fact that not too many questions are asked.
This has led to calls from transparency activists for more information on the structure of ownership of entities registered not just in Delaware but around the world, to make it harder for criminals to cover their tracks.”

Global minimum wage
The London School of Economics’ Jason Hickel calls for changes to the current international system in which “capital has been globalised while the rules that protect people from it have not”:

“If we’re going to have a global labour market, it stands to reason that we need a global system of labour standards, something that will put a floor on the race to the bottom and guarantee a baseline level of human fairness. The single most important component of such a system would be a global minimum wage.

A global minimum wage would go a lot further than the ‘fair trade’ fad that has become popular among many Western consumers. Every time I walk into a store and see items labeled fair trade, I’m always struck by what their presence implies: that the rest of the ‘normal’ products are unfair. We shouldn’t be presented with a choice between fair trade goods and oppression goods – oppression goods shouldn’t exist in the first place. When we buy the things that we need to sustain and enjoy our lives, we should be able to be confident that we are not colluding in the exploitation of other human beings who toil in near-slavery conditions.”

New scramble
The Guardian’s George Monbiot argues that the upcoming G8 summit, much like the 1884 Conference of Berlin, uses humanitarian language to conceal plans for grabbing African land and resources:

“Strangely missing from New Alliance [for Food Security and Nutrition] agreements is any commitment on the part of G8 nations to change their own domestic policies. These could have included farm subsidies in Europe and the US, which undermine the markets for African produce; or biofuel quotas, which promote world hunger by turning food into fuel. Any constraints on the behaviour of corporate investors in Africa (such as the Committee on World Food Security’s guidelines on land tenure) remain voluntary, while the constraints on host nations become compulsory. As in 1884, powerful nations make the rules and weak ones abide by them: for their own good, of course.”

Austerity girls
In a Q&A with Inter Press Service, UN Women’s John Hendra discusses some of the socio-economic impacts of austerity policies around the world:

“In Europe, female workforce participation has declined, women’s unemployment rate is higher than that of men in many countries, and the gender pay gap has increased.
In developing countries, crisis and austerity have pushed many more women into informal and vulnerable work. Because women tend to be employed on fragile, non-permanent contracts, they are more vulnerable to being laid off during recessions.

Austerity has also undermined progress towards a more equal division of care responsibilities. Cuts in public care and health services have led to a re-privatisation of care work and a return to traditional gender roles.
Austerity pushes the responsibility for, and cost of, social and public goods back onto households, and in effect, onto women.”

History lesson
Chinese dissident artist Ai Weiwei writes that the US is “abusively using government powers” to undermine the privacy of individuals:

“In the Soviet Union before, in China today, and even in the US, officials always think what they do is necessary, and firmly believe they do what is best for the state and the people. But the lesson that people should learn from history is the need to limit state power.

To limit power is to protect society. It is not only about protecting individuals’ rights but making power healthier.”

Latest Developments, June 5

In the latest news and analysis…

House cleaning
The Guardian reports that UK Prime Minister David Cameron is urging all of Britain’s oversees territories, including some of the world’s most notorious tax havens, to sign agreements on sharing tax information:

“Britain has made a clampdown on corporate and individual tax avoidance the central theme of its chairmanship of the G8 summit in Northern Ireland on 17 and 18 June, and Cameron has decided that he cannot be a credible chair of the summit if he is not seen to be trying to put Britain’s own house in order.

The precise constitutional relationship between the UK and the overseas territories is a matter of dispute, but some aid agencies claim the UK can in effect force the crown dependencies to close down the tax loopholes.”

War on drones
The Associated Press reports that new Pakistani Prime Minister Nawaz Sharif has pledged to end US drone strikes in his country:

“ ‘This daily routine of drone attacks, this chapter shall now be closed,’ Sharif said to widespread applause. ‘We do respect others’ sovereignty. It is mandatory on others that they respect our sovereignty.’
But he gave few details on how he might end the strikes. Many in Pakistan say the strikes kill large numbers of innocent civilians – something the U.S. denies – and end up breeding more extremism by those seeking retribution.”

Freeze ended
The Financial Times reports that Argentina’s top court has lifted a freeze on assets belonging to US oil giant Chevron, which stemmed from a $19 billion environmental damages ruling in Ecuador:

“The asset freeze had been ordered by Argentine judge Adrián Elcuj Miranda last year under a treaty to which Ecuador and Argentina are signatories.
However, legal action continues on having the Ecuador judgment legally validated by an Argentine court, according to Enrique Bruchou, an Argentine lawyer co-ordinating efforts to seek enforcement of the ruling outside Ecuador. The same judge is hearing that case.

Plaintiffs maintain that Chevron’s subsidiaries cannot be excluded from the environmental damages suit.”

The company you keep
The Guardian reports on the guest list for this year’s summit of the “secretive” Bilderberg group which brings together political and business leaders from Europe and North America for informal talks:

“A list of about 140 participants, made up almost overwhelmingly of white males but described as ‘a diverse group of political leaders and experts from industry’, was published on Monday by the organisation. It included only 14 women.

Attenders from financial backgrounds include Marcus Agius, the former chairman of Barclays who quit the post in the wake of the Libor interbank lending rate scandal, as well as Douglas J Flint, group chairman of HSBC Holdings plc, which was hit with a $1.9bn (£1.25bn) fine last December over allegations it had acted as banker for rogue states, terrorists and drug lords.
Peter Sutherland, the chairman of Goldman Sachs International, and Michael J Evans, vice-chairman of Goldman Sachs & Co, are the participants from the investment banking giant whose involvement in the sale of high-risk mortgage related investments has borne much of the blame for causing the 2008 global financial crisis.”

Big farming
The Thompson Reuters Foundation reports on calls for the UK to stop funding a G8 food scheme for Africa described by critics as representing “a new wave of colonialism”:

“More than 25 UK campaign groups are urging British Prime Minister David Cameron to withhold 395 million pounds pledged to the New Alliance for Food Security and Nutrition over the next three years.

One major concern is a requirement that African nations change their seed laws, trade laws and land ownership at the expense of local farmers and local food needs.
Campaigners also fear it will allow big multinational seed, fertiliser and agrochemical companies such as Yara, Monsanto, Syngenta and Cargill to set the agenda.”

Sahel security
Voice of America reports on “stepped up” security at Western installations in the Sahel following attacks on foreign-owned gas and uranium facilities since France’s military intervention in Mali began earlier this year:

“ ‘It [France] gets not far short of 80 percent of its electricity from nuclear power – that’s by far the highest proportion in the world. It uses around 12,500 tons of uranium per year. Not far short of a third of that comes from Niger already,’ said [Imperial College London’s Malcolm] Grimston.

‘[French state-owned nuclear giant] Areva has invested something like 1.5 billion euros [almost $2 billion] in the new [Imouraren] mine in Niger. That is a very key area, and I think France will be very keen to maintain its long-term interest and its long-term security in that area,’ he said.”

Oil City
Le Monde reports on the changes – so far, not for the better – in the Ghanaian city of Takoradi since the UK’s Tullow Oil began production at the offshore Jubilee oil field in 2010:

“Local radio journalist Ebenezer Afanyi Dadzie has seen the city change rapidly but without any real improvement in the daily lives of Ghanaians. ‘For the moment, there are additional problems for poor people.’
The arrival of expatriate workers led to an explosion of housing and land prices. ‘A room rented out at 40 cedis [US$20] now costs 80 or 100. Bit by bit, residents have had to leave for the suburbs,’ the journalist explained. A tour of the city centre, where huge hotel complexes have sprung up, demonstrates this real estate madness.

For now, oil production has created few jobs. The men working on the offshore rigs are expats.” [Translated from the French.]

State of siege
The Associated Press reports on “the fear that rules” the area surrounding a mining project in Guatemala owned by Canada’s Tahoe Resources:

“Protesters say the project, called El Escobal, will drain or pollute the local water supply, and hundreds of people have blocked roads and burned buildings to stop it from going forward. That’s tested President Otto Perez Molina, who sent in hundreds of troops and suspended the right to hold public gatherings in four townships near the mine in early May. It was the second time during his 16 months in office that he has declared a state of siege in response to protests against a foreign-run mining project.

[Oscar Morales, president of the Community Development Council] said eight community consultations of 4,222 adults found that nearly all of them opposed the mine. He said he wants to hold another legally binding community consultation about the mine, but municipal governments have refused.”

Latest Developments, December 12

In the latest news and analysis…

Rebel recognition
The New York Times reports that the US has announced it now considers an opposition coalition to be Syria’s “legitimate representative” even though it is unclear how much authority the group actually has over rebel fighters:

“Moreover, [the recognition] draws an even sharper line between those elements of the opposition that the United States champions and those it rejects. The Obama administration coupled its recognition with the designation hours earlier of a militant Syrian rebel group, the Nusra Front, as a foreign terrorist organization, affiliated with Al Qaeda.

But Mr. Obama’s move does not go so far as to confer on the opposition the legal authority of a state. It does not, for example, recognize the opposition’s right to have access to Syrian government funds, take over the Syrian Embassy in Washington or enter into binding diplomatic commitments.”

Too big to jail
Global Witness points out that 47,000 people died in Mexico’s drug war during the time that HSBC “failed to check whether the dollars it was shipping from Mexico to the US were drugs money,” an oversight for which Europe’s biggest bank has agreed to pay a $1.9 billion fine:

“ ‘Fines alone are not going to change banks’ behaviour: the chances of being caught are relatively small and the potential profits from accepting dodgy clients are too big.  Fines are seen as a cost of doing business,’ said Rosie Sharpe, campaigner at Global Witness.
‘Instead, regulators should hold senior bankers legally responsible for their banks’ money laundering performance.  At the very least, senior bankers should be prevented from working in the industry, akin to the way in which doctors can be struck off.  Bonuses should be clawed back, and, in the most serious cases, senior bankers should face jail,’ said Sharpe.”

Uranium politics
NGO l’Observatoire du nucléaire sees the hand of a French state-owned company in the sudden alteration of Niger’s 2013 budget:

“This change, probably illegal, consisted of adding to the national budget 17 billion CFA francs (about €26 million) ‘given’ to Niger by the French nuclear company Areva, of which 10 billion CFA francs (more than €15 million) are set to go directly to purchasing an airplane for Nigerien President Mahamadou Issoufou.
This is a clear act of corruption, in moral terms if not legal ones, by Areva which expects thereby to maintain its grip on Niger’s uranium, in order to supply French nuclear power plants.

It just so happens that Mr. Issoufou is a former director of a uranium mining company, Somaïr, which is an Areva subsidiary!” [Translated from the French.]

Patent trolls
Reuters reports that in the US, more patent lawsuits have been brought this year by “entities that don’t make anything than those that do”:

“This year, about 61 percent of all patent lawsuits filed through December 1 were brought by patent-assertion entities, or individuals and companies that work aggressively and opportunistically to assert patents as a business model rather than build their own technology, according to a paper by Colleen Chien, a law professor at Santa Clara University.
That compares with 45 percent in 2011 and 23 percent five years ago.”

Corruption’s infrastructure
The Center for Global Development’s William Savedoff suggests some measures rich countries can take to help stem illicit financial flows, which he calls “a problem for world governance”:

“There is only so much the developed world can do to promote better governance in developing countries; after all, developed countries don’t have such a great track record of addressing corruption at home – whether it comes to Super PACs in the US or Berlusconi’s comeback after conviction on tax fraud. But we can make a big difference if rich and powerful countries were to stop protecting and enforcing repayment of odious debt; hindering recovery of stolen assets; allowing multinationals to make facilitation payments; and hiding oil and mineral royalty payments from public view.”

Aid business
Olivier De Schutter, the UN special rapporteur on the right to food, raises concerns about the potential impacts on Africa’s food security of a new US-led initiative to increase private sector investment in the continent’s agriculture:

“One of the [New Alliance for Food Security and Nutrition] projects will see agri-food giant Cargill, subsidised by G8 development funding, take some 40,000 hectares of farmland in Mozambique. This comes at a time when peasant movements and smallholders across the developing world are calling out for their access to land to be secured in the face of land grabs.

And aid must not result in a long-term dependency on expensive technologies that may eventually force the most marginal farmers, who have the greatest difficulties accessing credit, to leave the land.”

Pathological consumption
The Guardian’s George Monbiot argues that consumer culture is “screwing the planet” for the sake of acquiring largely useless items:

“People in eastern Congo are massacred to facilitate smartphone upgrades of ever diminishing marginal utility. Forests are felled to make ‘personalised heart-shaped wooden cheese board sets’. Rivers are poisoned to manufacture talking fish. This is pathological consumption: a world-consuming epidemic of collective madness, rendered so normal by advertising and by the media that we scarcely notice what has happened to us.

This boom has not happened by accident. Our lives have been corralled and shaped in order to encourage it. World trade rules force countries to participate in the festival of junk. Governments cut taxes, deregulate business, manipulate interest rates to stimulate spending. But seldom do the engineers of these policies stop and ask, ‘spending on what?’ When every conceivable want and need has been met (among those who have disposable money), growth depends on selling the utterly useless. The solemnity of the state, its might and majesty, are harnessed to the task of delivering Terry the Swearing Turtle to our doors.”

Moral legacy
Mother Jones’s Adam Serwer suggests the makers of Zero Dark Thirty, the new Hollywood movie about the American hunt for Osama bin Laden, are “rehabilitating torture”:

“The critical acclaim Zero Dark Thirty is already receiving suggests that it may do what Karl Rove could not have done with all the money in the world: embed in the popular imagination the efficacy, even the necessity, of torture, despite available evidence to the contrary. Whatever the artistic merits of the film, that will be its moral legacy.”