Latest Developments, July 14

In today’s news and analysis…

South Sudan has become the UN’s 193rd member amid much hope and apprehension about its future prospects.

Canada is complicating preliminary negotiations for a multilateral treaty regulating the sale and transfer of conventional weapons by insisting on a number of exemptions. The Canadian delegation proposed the following addition to the draft accord: “Reaffirming that small arms have certain legitimate civilian uses, including sporting, hunting and collecting purposes.” To which Mexico reportedly replied that “victims don’t make that difference and neither should we.” Canada, whose Conservative government has scored considerable points with its base by promising to scrap the federal long-gun registry established by its Liberal predecessor, also proposed exemptions for ammunition and other “high volume items.”

Britain has suspended budgetary support to Malawi due to concerns over diminishing democracy and economic mismanagement. In making the announcement, the UK’s Department for International Development pointed to a number of indications of poor economic stewardship, including its assessment that “tobacco exports have deteriorated.” Given the fact that the UK trains and equips the counternarcotics police in Afghanistan, the British government apparently believes Malawian tobacco is good but Afghan poppies are bad.

Jayati Ghosh, warning of India’s “jobless growth” and increases in “fragile and unprotected” casual contracts, calls on the government to embrace employment creation for the young and educated in order to avoid “larger gaps between aspiration and reality in India’s labour markets.” To which, Bill Easterly tweets “Scary “jobless growth”! Wait, isn’t output growth > labor growth called “productivity growth” AKA “development”?”

The US is defending the CIA’s use of a fake vaccination campaign in Pakistan to obtain the DNA of some of Osama bin Laden’s relatives. “People need to put this into some perspective,” a U.S. official said. “The vaccination campaign was part of the hunt for the world’s top terrorist, and nothing else.” Meanwhile, the CIA is allegedly using a secret prison and rendition to buttress its counterterrorism efforts in Somalia. And Yemeni journalist Khaled al-Hammadi has tweeted today’s CIA drone strike in the south of the country was a “clear message that #US administration is supporting #Saleh’s regime & his family against pro-democracy” forces.

A new poll suggests the US is losing Arab public opinion, as data from Morocco, Egypt, Jordan, Lebanon, Saudi Arabia and the United Arab Emirates give America a lower approval rating than it had in the last year of the Bush Administration. And President Obama scored worse than the leaders of Turkey, Saudi Arabia, France and Iran. “We are talking about expectations raised and expectations dashed,” according to James Zogby, the president of the Arab American Institute, which commissioned the poll.  “Obama didn’t create the problem [of anger at US policies]. He created the expectations that the problem will be solved.”

In a new report on tax havens, Richard Murphy argues “whilst eliminating tax haven abuse is the right thing to do, such a policy must take into consideration the local populations of those places that have been tax havens, many of whom have worked in the financial services sector as it has been the only source of employment available to them.” And so, Murphy proposes “those locations willing to reform their tax haven practices should be given support to protect jobs and livelihoods as they pass through a period of transition in their economies.

Rupert Murdoch may be behind lobbying efforts to weaken the US anti-bribery legislation under which some would now like to see him prosecuted, and a pair of American telecom companies have been accused of involvement in a Haitian bribery scheme.

Saleem Ali makes a mining-free argument for returning to the gold standard. In his view, gold could restore a measure of financial discipline to the global economic system without sacrificing ecological considerations if “a nation’s gold reserves could remain “stored” in their natural underground state, rather than being mined, purified, and deposited in a Fort Knox–like vault.”

A new documentary chronicling a UN resettlement program in Nairobi’s biggest slum illustrates the distance that can separate international development workers from those they propose to help. And Hand Relief International’s Dr. Alden Kurtz has a similar, if decidedly cheekier, message  as Engineers Without Borders: the development industry would benefit from admitting to its failures.

Latest Developments, July 12

In today’s news and analysis…

There was a big step forward in the global fight against HIV/AIDS, as US-based Gilead Sciences became the first pharmaceutical company to agree to place the intellectual property rights for some of its products in the Medicines Patent Pool that will allow generic drug makers to copy them on the cheap. “This is not just a one-off. The whole field is changing … there will be more to follow,” according to Ellen ‘t Hoen, the pool’s executive director.

Unfortunately, the pool only works for drugs that have already been developed, leaving the problem of incentivizing research into illnesses that do not significantly affect wealthy markets. Not to mention the fact that tobacco remains by far the biggest killer worldwide and the possibility that CIA dodginess in Pakistan could fuel the kinds of rumours that hampered polio eradication efforts a few years ago.

US Senator Carl Levin has introduced the “Stop Tax Haven Abuse Act” in the upper house. The proposed law includes a country-by-country reporting provision that would “help anti-corruption and economic development efforts in developing countries by creating more transparency and accountability in the business dealings between multinational companies and governments,” according to Global Financial Integrity director Raymond Baker.

Senator Levin’s proposal follows in the tradition of the Dodd-Frank Act which passed into law last year and is now in the hands of the Securities and Exchange Commission for the formulation of compliance enforcement rules. “In the ongoing rule-making process, the SEC has an opportunity to demonstrate that the United States takes transparency and accountability seriously and intends to act as a global leader in fostering secure, equitable, long-term resource partnerships with developing nations,” according to Oxfam’s Kathryn Martorana.

Speaking at the Open Government Partnership high-level meeting, US Secretary of State Hillary Rodham Clinton declared: “I think we can say without fear of contradiction that there is an undeniable connection between how a government operates and whether its people flourish. When a government invites its people to participate, when it is open as to how it makes decisions and allocates resources, when it administers justice equally and transparently, and when it takes a firm stance against corruption of all kinds, that government is, in the modern world, far more likely to succeed in designing and implementing effective policies and services.” Meanwhile, the UN special rapporteur on torture has complained US authorities refuse to grant him unmonitored access to alleged WikiLeaker Bradley Manning.

UK International Development Secretary Andrew Mitchell told a London School of Economics audience “this Coalition Government is working to make it easier for companies to do business in Africa – so creating more opportunities for poor people. We are absolutely determined to make this the defining message of the Coalition Government in this area.” With Africa’s share of global manufacturing currently sitting at one percent, there is undoubtedly room for growth.

A Guardian piece celebrates the promotion of a handful of countries from the World Bank’s low-income to lower middle-income designation as evidence it is possible to escape the poverty trap. At the same time, the authors recognize the contribution of cyclical commodity prices to recent income increases in certain African countries, the fact that the African graduates are offtrack on their MDG commitments, and the limitations of a ranking based solely on gross national income (GNI). In fact, one of the promoted countries, Zambia, still sits 153rd out of 172 countries on the UN’s more nuanced Human Development Index, five places behind Haiti.

For those countries that manage to escape the aforementioned poverty trap, a World Bank VP has advice on avoiding “middle-income trap” and “maintaining high growth in developing countries.” Whereas a new World Bank blog post waxes enthusiastic about car-sharing’s potential to take advantage of excess capacity and avoid unnecessary use of non-renewable resources. What the author neglects to consider is that such enterprises are bad for growth and GNI.

The UN Security Council has unanimously adopted a resolution to protect schools and hospitals from becoming military targets. UNICEF executive director Anthony Lake welcomed the news but stressed monitoring, denunciation and sanctions were insufficient to bring about real change. “We also have to find practical new ways to prevent these acts from occurring,” he said.

Transparency International’s Tobias Bock issues a plea for the Arms Trade Treaty currently under negotiation to include anti-corruption provisions, arguing that the massive corruption of the weapons trade can have a major impact on sustainable development. He also points out that while “there are international treaties to control the sale of many goods, from dinosaur bones to postage stamps, there is no such treaty to control the trade in weapons worldwide.”

And for the second straight year, Luanda, Angola and N’Djamena, Chad sit first and third respectively atop the list of the most expensive cities for expatriate workers. Tokyo sits in second spot, sandwiched between the capitals of two of the world’s poorest countries.

Latest Developments, June 28

In today’s news…

As expected, Christine Lagarde has become the new head of the International Monetary Fund. The position came up for grabs when her predecessor resigned after being charged with sexual assault. But Lagarde may not be above reproach either, as she is currently under investigation for her her involvement in a questionable legal settlement involving 403 million euros in public money.

In the US, the trial of businessmen caught in a sting trying to defraud the people of Gabon is a sign of an increased willingness to crack down on Americans who try to bribe foreign officials. At the same time, an unassuming house in Cheyenne, Wyoming suggests tax havens are not just islands in the Caribbean.

British Prime Minister David Cameron reminds us his government is taking the lead on aid transparency. So far, only 12 governments are signatories to the International Aid Transparency Initiative. Germany is the only other G8 country among them.

Britain also found itself in a minority position when its delegates recently opted not to support a proposed International Labour Organization convention aimed at protecting the rights of domestic workers. Although the motion passed, the US, Canada and the Netherlands made it clear that in spite of their votes of support, they were unlikely to ratify the convention.

Argentina is not the only G20 country struggling to tackle money laundering. Up to $15 billion is laundered annually in Canada. And new statistics show its police only manage to identify a suspect in 18 percent of money laundering cases and prosecutors secure a conviction in just a third of trials in which money laundering is the most serious charge.

A number of civil society organizations have signed an open letter calling for the UN to establish an international tax cooperation body, while Christian Aid’s Julian Boys blasts the International Accounting Standards Board for secrecy he argues harms both the world’s poor and the IASB’s own interests.

Libya says the International Criminal Court arrest warrants issued against Gadhafi and his sons end any possibility of a negotiated settlement to the current conflict, thereby providing additional ammunition for those who argue international justice in its current form may actually harm the cause of peace in Africa.

Despite much fretting in wealthy countries about perceived mass influxes of refugees, a new UN report shows 80 percent of the world’s refugees are in poor countries, with Pakistan, Iran and Syria leading the way. The findings prompted UN High Commissioner for Refugees Antonio Guterres to speak of a “worrying unfairness in the international protection paradigm.”

The Overseas Development Institute’s Jonathan Glennie, a vocal proponent of “beyond aid” thinking, writes about reducing aid dependence rather than reducing aid. The former requires replacing aid money with other sources of revenue. The article draws extensively from a recent talk by a Uganda Revenue Authority official who asks: “Is foreign aid to Africa promoting the strengthening of tax administration or simply having a substitution effect?”