Latest Developments, May 14

In the latest news and analysis…

Arming Bahrain
Reuters reports that the US has decided to resume “some military sales” to Bahrain, despite heavy criticism of the Gulf state’s human rights record.
“The State Department did not give a total value for the items being released but emphasized that the equipment being approved was “not used for crowd control” as the majority Shi’ite community continues to protest against the Sunni royal family following a crackdown last year.
U.S. officials said among the sales now allowed to go forward would be harbor security vessels and upgrades to turbo-fan engines used in F-16 fighter aircraft as well as legislation which could pave the way for a future sale of a naval frigate.
Items still on hold, besides the missiles and the Humvees, include teargas, teargas launchers and stun grenades.”

Trayvon targets
Gawker reports that someone selling gun range targets designed to look like murdered Florida teen Trayvon Martin said the market response was “overwhelming” and the item sold out in two days.
“The Orlando-based [Local 6] news station says it spotted an ad for the targets — since removed — on a ‘popular firearms auction website.’ They feature a black hoodie similar to the one worn by Martin on the night he was shot by self-appointed neighborhood watch captain George Zimmerman, along with a drawing of a Skittles bag and a can of iced tea.”

Hurting one’s cause
Reuters reports that JPMorgan Chase’s $2 billion in losses have given new impetus to the push for greater regulation of the US banking sector.
“Analysts said it is not yet clear if the trades would have violated the forthcoming Volcker rule reform.
[CEO Jamie] Dimon has been critical of the Volcker rule, a provision in Dodd-Frank that will ban banks from proprietary trading, or trades that are made solely for their own profit.

On Friday, Democratic senators Carl Levin and Jeff Merkley, who wrote the legislative language on the Volcker rule, said the outstanding proposal is flawed because it would give banks the latitude to hedge against portfolio risk as opposed to individual positions.
‘That’s a big enough loophole that a Mack truck could drive right through it,’ Levin said during a conference call.”

Worse than useless
The Overseas Development Institute’s Jonathan Glennie gives his take on what “all the talk of corporate social responsibility” is really worth when it comes to large-scale mining operations.
“The era of voluntary guidelines has not only been ineffective, it has been worse than useless. Although they may have led to incremental improvements in some areas, their real purpose has been to undermine attempts to develop effective legal sanction, both national and international, which is the only thing that will ultimately keep the destructive instincts of mega-wealthy companies at bay.”

New France?
Senegalese singer Baaba Maal assesses the significance of François Hollande’s election as new French president.
“I’m Senegalese and France is very connected to my country. France needs to open its eyes to the potential of its former colonies and to realise that these relationships have changed. People want to collaborate but with mutual respect. Whether that’s a respect for our culture, for our governments or for our business potential. It’s about sitting around the same table and talking together as equals. Of course our relationship hasn’t always been easy but we are in it together.”

Taliban poetry
The New York Times’ C.J. Chivers reviews a new collection of poetry written by Afghan insurgents.
“The Afghan war, of course, is a far broader phenomenon than its cemeteries, rifle skirmishes, house searches, airstrikes and bombs. The anthology covers wider themes, too, giving voice to many common Afghan complaints, including that the influx of Western cash has been corrupting to those who have received it and alienating to most everyone else.
I am astonished at this time of the dollars;
In poverty, I lost friendship.

Capitalist values
Essayist William Deresiewicz writes on the fundamental nature of capitalism and the policy implications of popular sentiment toward the wealthy.
“There are ethical corporations, yes, and ethical businesspeople, but ethics in capitalism is purely optional, purely extrinsic. To expect morality in the market is to commit a category error. Capitalist values are antithetical to Christian ones. (How the loudest Christians in our public life can also be the most bellicose proponents of an unbridled free market is a matter for their own consciences.) Capitalist values are also antithetical to democratic ones. Like Christian ethics, the principles of republican government require us to consider the interests of others. Capitalism, which entails the single-minded pursuit of profit, would have us believe that it’s every man for himself.”

Latest Developments, April 26

In the latest news and analysis…

International justice
Following the guilty verdict delivered against former Liberian President Charles Taylor by the Special Court for Sierra Leone, Oxford University’s Christine Cheng discusses some of the problems with international justice as currently practiced.
“Courts build their legitimacy partly based on the cases that they choose to hear. By focusing predominantly on Africans, there is a real worry that the ICC will be perceived by non-Western countries as providing a cloak of legitimacy for the US and other Western nations to achieve their political aims— despite the fact that the ICC’s chief prosecutor Luis Moreno Ocampo has explicitly stated that the ICC is not a court ‘just for the Third World.’
What the international community needs to guard against is allowing the ICC to become a tool that Western liberal democracies can impose on developing country leaders who have fallen out of political favour. For the ICC to remain viable, neither can it be perceived as the backdoor by which Western powers target their political enemies.”

Quake aid
The Center for Global Development’s Vijaya Ramachandran and Julie Walz look into where US funds intended for quake relief in Haiti ended up going.
“The U.S. Department of Defense, which took responsibility for security in Haiti in the aftermath of the quake, was the largest recipient. The remainder of the funds went to large international NGOs, private contractors, and other agencies of the U.S. government such as the Federal Emergency Management Agency (FEMA) and Health and Human Services (HHS). As we have blogged previously, less than one percent went to the Government of Haiti to rebuild public institutions. And Haitian-led NGOs have barely received any money at all.

Contracts to Haitian firms remain few and far between. Following a request from Haiti Relief and Reconstruction Watch, USAID released data on its procurement from local contractors in Haiti. Local contracts add up to $9.45 million, which is only 0.02 percent of total contracts awarded by USAID. Over 75 percent of USAID funds went to private contractors inside the Beltway (located in Washington DC, Maryland, or Virginia).”

Bioeconomy
Inter Press Service reports that critics of the new US National Bioeconomy Blueprint say it emphasizes economic interests at the expense of social and environmental ones.
“ ‘The bio-economy approach offers politicians in industrialized countries an opportunity to be seen to be doing something about meeting ill-defined “renewable energy targets”, while maximizing opportunities for economic growth and securing a constant supply of energy,’ [the Global Forest Coalition’s “Bio-economy Versus Biodiversity” report] warns. “There is precious little concern about the environment, or about impacts in other countries, apart from the usual platitudes about providing jobs.’ ”

Maid in India
A new Centre for Research on Multinational Corporations/India Committee of the Netherlands report details rights abuses at Indian textile plants that supply Western clothing companies.
“For real change, scale is needed. Corporate and other initiatives, certification bodies and business associations should push their members to commit to real action, or discipline them. The voluntary character of compliance activities should urgently become more binding. Freedom of association and the right to bargain collectively are key rights that enable workers to defend their rights. Both manufacturers and buyers should actively ensure these rights are respected.”

Laws of war
Lawyer Chase Madar argues a Wikileaks-obtained video showing US helicopters killing a number of unarmed Iraqis – an act that may well have been legal – is “an indictment of the laws of war as we know them.”
“Let’s be clear: What killed the civilians walking the streets of Baghdad that day in 2007 was not ‘war crimes’ but war. And that holds for so many thousands of other Afghan and Iraqi civilians killed by drone strikes, air strikes, night raids, convoys, and nervous checkpoint guards as well.
Who, after all, writes the laws of war? Just as the regulations that govern the pharmaceutical and airline industries are often gamed by large corporations with their phalanxes of lobbyists, the laws of war are also vulnerable to ‘regulatory capture’ by the great powers under their supposed rule. Keep in mind, for instance, that the Pentagon employs 10,000 lawyers and that its junior partner in foreign policy making, the State Department, has a few hundred more. Should we be surprised if in-house lawyers can sort out ‘legal’ ways not to let those laws of war get in the way of the global ambitions of a superpower?”

Good aid, bad aid
The Overseas Development Institute’s Jonathan Glennie asks if some donors are better than others.
“The US secretary of state, Hillary Clinton, certainly seems to think so, urging poor countries at an aid conference in Busan, South Korea, to ‘be wary of donors who are more interested in extracting your resources than in building your capacity’. It is hard to imagine a more absurd statement from a US official, given the country’s leading role in previous scrambles for Africa – not to mention its weak record (with other donors) of ‘building capacity’ over more than 50 years of aid-giving. From the cold war to aid conditionality supporting its own interests, to the pouring of money into the Horn of Africa after the 9/11 attacks, the US pretty much wrote the book on how to use aid to ensure strategic interests. Clinton should remember John Kennedy’s assertion in 1962: ‘Aid is a method by which the United States maintains a position of influence and control around the world … I put it right at the top of the essential programmes in protecting the security of the free world.’ ”

Population bomb
In an interview with the Guardian, Stanford University’s Paul Ehrlich argues that both the numbers and behaviour of people pose a threat to the future of humanity.
“[Human population and consumption] multiply together. You have to be deal with them together. We have too much consumption among the rich and too little among the poor. That implies that terrible thing that we are going to have to do which is to somehow redistribute access to resources away the rich to the poor. But in the US we have been doing the opposite. The Republican party is wildly in favour of more redistribution, of taking money from the poor and giving it to the rich.”

Latest Developments, March 14

In the latest news and analysis…

ICC’s big day
The Independent reports that even as the International Criminal Court handed down its first ever verdict – finding Congolese warlord Thomas Lubanga guilty of recruiting and using child soldiers – questions remain about the court’s ability to overcome the challenges it faces.
“The complicated nature of building cases in the absence of international legal precedent and the necessity of gaining support from states for its intervention, as well as the uneven support for the Rome treaty by major powers such as the United States, have undermined the court’s efforts to gain acceptance. The ICC and its controversial outgoing chief prosecutor, Luis Moreno Ocampo, have been criticised in some quarters for focusing exclusively on Africa. In an effort to weaken the accusations of an anti-African bias the ICC has appointed Fatou Bensouda from the Gambia to replace the departing Argentinian.”

Voluntary solutions
The Guardian reports not everyone is impressed by a new set of proposed “voluntary global guidelines” on land governance and resource rights that would theoretically address the issue of mass land grabs by foreign investors in poor countries.
“ ‘The breadth of participants, including governments, has seen the content watered down to secure consensus. Value for the immense time and money invested in producing the guidelines may be hard to come by,’ said Liz Alden Wily, an international land tenure specialist.  ‘These are only guidelines after all, not binding on the very governments, companies, elites and investors who are already so heavily involved in land and resource capture.’
She said the time and money might have been better spent reframing international trade law, on which resource exploitation so heavily depends, and ‘bringing feeble human rights law up to scratch. Or invested in mobilising the millions of poor affected by policies and laws.’
Alden Wily added: ‘It will be interesting to see if the global aid community promoting these guidelines will spend the same effort to translate the advice into 150 languages and get copies down to every poor community in the developing world. That’s a billion copies right there.’ ”

Water rights
Reuters AlertNet reports that NGOs were unable to get the World Water Forum declaration amended to include “an unequivocal commitment to the U.N.-recognised rights to water and sanitation.”
“…Wenonah Hauter, executive director of Food & Water Watch – a small U.S.-based NGO – described the declaration as ‘a step backwards for water justice’, noting that signatures had not even been collected from nations that endorsed it. “The entire event itself is a corporate tradeshow parading as a multilateral forum,” she added.

The firms supporting the event include French energy giant EDF, Veolia Eau, Bouygues Construction, HSBC and JCDecaux.”

WHO woes
Intellectual Property Watch reports on allegations that the private sector is using “financial leverage to gain undue influence” in the cash-strapped World Health Organization.
“A recent piece for the non-governmental Third World Network made the assertion based on developments such as the presence of Microsoft Chairman Bill Gates sharing the stage with WHO Director General Margaret Chan at the WHO members annual meeting last year, and the presence of industry interests at a civil society meeting before last year’s UN summit on non-communicable diseases.

Chan has sought repeatedly to assure member states that the WHO understands the necessary line between any stakeholders. But some see industry links in the reform proposals emerging from the WHO, the group said.”

Environmentalists, Martians and terrorists
The Huffington Post reports that the campaign by Canada’s ruling party against environmental groups took a “jaw-droppingly bizarre” turn when a Conservative senator asked “if environmentalists are willing to accept money from Martians,” would they also take money from Al Qaeda, Hamas or the Taliban?
“Many environmentalists are upset with [Prime Minister Stephen] Harper’s seeming obsession with the millions they receive each year in charitable funding from the U.S., while ignoring the millions more spent in Canada each year by foreign business interests.
Liberal Senator Grant Mitchell pointed out that the Tories have no trouble with foreign funding as long as it benefits it’s own causes, such as the National Rifle Association petitioning to kill the long gun registry.
‘Funding flows in all directions across borders, and to somehow single out a subset just because you don’t like the stance of certain organizations and then demonize them for it for receiving the funding…is really a reprehensible treatment,’ Peter Robinson, the chief executive officer of the David Suzuki Foundation told HuffPost.”

Tax haven runaround
EUobserver reports the EU’s top tax official is running into opposition from certain member countries over attempts to tackle tax avoidance in Switzerland.
“Algirdas Semeta told EUobserver that bank secrecy makes it impossible to say how much potential tax income is being lost even as EU countries cut wages and public services amid the financial crisis. But it is likely to be big bucks: Switzerland currently hands over €330 million a year in tax payments to EU countries, while its banks manage €1.5 trillion of private wealth.”

Bizjet bribes
Tulsa World reports an American aviation company and its German parent have agreed to a deal with US authorities over alleged bribes paid to Mexican officials between 2004 and 2010.
“In many instances, Bizjet allegedly paid the bribes directly to the foreign officials. On other occasions, Bizjet is accused of funneling the bribes through a shell company owned and operated by a person who was then a Bizjet sales manager.
The Justice Department also stated that Lufthansa Technik — which it described as Bizjet’s “indirect parent company” — also entered into an agreement with DOJ in connection with the purported unlawful payments by Bizjet and the directors, officers, employees and agents involved in the conspiracy.”

Bankers vs. Robin Hood
Intelligence Capital’s Avinash Persaud compares the London banking industry’s arguments against a proposed financial transaction tax, aka the Robin Hood Tax, to past denials of the link between cigarettes and cancer.
“Listening to some London bankers, you would think that a 0.1% tax would usher in a nuclear winter. Bankers are effectively saying that, while they justify their high pay with claims of superior creativity, credibility and connectivity, all of that cannot compete with a tax on each transaction of just one tenth of one per cent. If, despite the industry receiving billions in implicit public subsidies and guarantees, the largest sector in the UK economy hangs by such a thin thread, its value-added must be seriously questioned.”

Latest Developments, September 19

In the latest news and analysis…

Gender inequality
The World Bank’s newly released World Development Report 2012 focuses on gender equality and makes the argument that women’s rights have improved at an “astonishing” rate in recent years but substantial inequalities still persist.
“The main message of this year’s World Development Report: Gender Equality and Development is that these patterns of progress and persistence in gender equality matter, both for development outcomes and policy making. They matter because gender equality is a core development objective in its own right. But greater gender equality is also smart economics, enhancing productivity and improving other development outcomes, including prospects for the next generation and for the quality of societal policies and institutions. Economic development is not enough to shrink all gender disparities—corrective policies that focus on persisting gender gaps are essential.”

World Bank blind spots
ActionAid’s Rachel Moussié argues the latest World Development Report once again reveals the World Bank’s tendency to overemphasize the importance of economic growth while glossing over “key” elements of its own research.
“The World Bank’s faith in the market to pick up the pieces after a crisis is evident in its treatment of social protection, or lack thereof. The report reduces this multi-faceted issue to conditional cash transfers, completely neglecting the important role programmes such as South Africa’s child support grant have played in lifting households and women out of poverty. The bank seemingly fails to recognise that poverty is chronic in the current economic system and the shocks frequent.  Stop-gap measures are just not enough if governments are to prevent these shocks from reversing the gains made on gender equality.”

Eco-imperialism?
Al Jazeera reports environmental rights groups are concerned that Africa risks becoming a lab for lucrative carbon-trading schemes they think will likely only enrich speculators in financial capitals.
“The offsets that come from soil carbon capture schemes have been marketed by world bodies as a means to rechannel money back into climate-friendly agriculture.
However, environmental rights groups say the work of offsetting these emissions – and trading credits associated with the process on carbon markets – is where the big business lies.”

Engineering rights abuses
The Sudan Tribune has picked up on a report by Die Tageszeitung (or Taz) that German investigators are looking into the role that engineering and consulting firm Lahmeyer International may have played in alleged rights abuses surrounding the construction of a Sudan’s Merowe dam project.
“According to Taz, preliminary proceedings like this are rare in Germany, because German public prosecutors and prosecution services do not want to assume responsibility for the behavior of domestic corporations abroad. The judiciary in other states too often allows corporations from the rich north to do whatever they want to.”

Arms and their consequences
An Illinois judge has given the go-ahead to a multibillion-dollar lawsuit alleging that US defense contractor L-3 and a subsidiary assisted in the commission of acts of genocide in the Balkans during the 1990s.
“A lawsuit filed in a Northern Illinois federal court says L-3 and its subsidiary, MPRI (Military Professional Resources Inc.), helped arm and train the Croatians, who killed or displaced 200,000 Serbs in the Krajina region of Croatia. The complaint states that, ‘Whether MPRI personnel took part in the genocide is not known and is not alleged here. But what is known definitively is that MPRI provided the means that enabled the genocide to occur.’”

Swiss commodity trading
The Tax Justice Network reports on the release of a new book dealing with Swiss-based trading companies and their role in the global commodities trade.
“Commodities traders often accept far higher risks than oil companies like BP or pure mining companies like BHP Billiton. They also increasingly build their own facilities, often in crisis or even conflict areas. The industry leaders’ increasing openness to risk was recently demonstrated in Libya, where Geneva-based Vitol, with an eye on forming new business relationships, delivered $500 million of fuel to the opposition on credit. And in newly-founded South Sudan, where transparency in the oil business is central for nation building and the peace process, Glencore sealed an obscure deal with the state oil company two days before the official declaration of independence.”

Project-by-project transparency
EarthRights International’s Jonathan Kaufman urges the European Parliament to go beyond existing US extractive industry transparency legislation by requiring companies to publish what they pay to foreign governments on a project-by-project basis.
“Project-level reporting is particularly important to ERI and the groups we work with because it will enable communities to hold governments to account for the resources that are extracted from their own land. It also matters to investors because company payments on various projects within a single country may be associated with different levels of political risk. (Think, for example, about how different it would be to make a large bonus payment to a government for a mining concession in a war-torn part of eastern Congo, as opposed to the peaceful, government-held western part of the country.)”

Voluntary principles
The Overseas Development Institute’s Jonathan Glennie argues the upcoming Busan conference on aid effectiveness should aim for broad new principles that incorporate emerging players who are rapidly changing the world of development finance.
“Voluntary principles are not exactly the most exciting weapons in the international development armoury. Observed as much in their circumvention as in their fulfilment, they are painfully ineffective at creating the kind of rapid improvements most of us want to see. But they are often the best we can do, given the reluctance of powerful entities to submit to binding approaches. And they often set the tone of an era. We recognise the limits of what voluntary principles can achieve, but believe they will help nudge development financers towards better practices.”

Non-communicable diseases
The UN News Centre reports the international body has “launched an all-out attack on non-communicable diseases” with a declaration calling for a multi-faceted strategy to tackle risk factors underlying illnesses that account for nearly two-thirds of all deaths.
“Steps range from price and tax measures to reduce tobacco consumption to curbing the extensive marketing to children, particularly on television, of foods and beverages that are high in saturated fats, trans-fatty acids, sugars, or salt. Other measures seek to cut the harmful consumption of alcohol, promote overall healthy diets and increase physical activity.”

The big picture
New York University’s Alex Evans, frustrated by the perceived lack of human solidarity displayed in UN discussions, quotes former US astronaut Edgar Mitchell on the life-altering experience of seeing the entire planet from afar.
“We have all said over the years, if we could get our political leaders to have a summit meeting in space, life on Earth would be markedly different, because you can’t continue living that way once you have seen the bigger picture.”