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Latest Developments, December 14

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In the latest news and analysis…

Leaving Iraq
Reuters reports on celebrations in the Iraqi city of Fallujah to mark the departure of US troops.
“Many Iraqis await the U.S. withdrawal with relief and hopes for a better future, despite fears that sectarian tensions bubbling beneath the surface will return just as Iraq struggles to end years of war and violence.
Overall violence in Iraq has dropped sharply since the dark days of sectarian slaughter in 2006-07, but bombings and killings remain common.
‘After the Americans leave we want to see a united Iraq, we do not want disputes,’ Hameed Jadou, a Sunni cleric, told the crowds. ‘Whoever says this is an Iraqi Sunni, Shi’ite, Kurdish, or Turkman, is using the terms brought by the occupier.’”

Vulture funds
A UN human rights expert is urging the Channel Island of Jersey to prevent “vulture funds” from using its courts to sue heavily indebted poor countries.
“‘‘Vulture funds’ unfairly deprive poor countries of the gains from international debt relief efforts meant for the improvement of delivery of basic social services such as safe drinking water, health care, education, and housing,’ Mr. Lumina said. ‘The international community must not accept this immoral and unfair deprivation of scarce financial resources from the world’s poorest countries.’
In April 2010, the United Kingdom Parliament passed the Debt Relief (Developing Countries) Act to restrict the ability of ‘vulture funds’ to sue heavily indebted poor countries in UK courts, a favourite jurisdiction. However, the Act does not apply to UK Crown Dependencies and Overseas Territories such as Jersey, Guernsey, the British Virgin Islands and Cayman islands.
This loophole has allowed US ‘vulture fund’ FG Capital Management (formerly FG Hemisphere) to sue the Democratic Republic of Congo (DRC) in Jersey’s courts for $100 million of debt obligations, reportedly bought for just 3.3 per cent of their value according to British media reports.”

Sweet Home Alabama
Human Rights Watch has released a report on Alabama’s new immigration act that, in the word’s of one of the legislation’s sponsors, “attacks every aspect of an illegal alien’s life.”
“Under the Beason-Hammon Act, unauthorized immigrants are prohibited from entering into ‘business transactions’ with the state. An unauthorized immigrant who tries to do so is committing a Class C felony, punishable by 1 to 10 years in prison and up to $15,000 in fines. As a result, state and local agencies have declared that unauthorized immigrants cannot sign up for water and other utilities, live in the mobile homes they own, or renew licenses for their own small businesses.
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While every country has the authority to regulate the entry of immigrants into its territory, to deport those who have made an unauthorized entry, and to enforce its immigration laws against those no longer authorized to remain, international law requires that everyone is entitled to fundamental human rights by virtue of their humanity, Human Rights Watch said.”

Tough talk
The UN News Centre reports on Secretary General Ban Ki-moon’s description of the current imbalances in access to food, electricity, sanitation and healthcare around the world.
“This is not equitable. It is not sustainable. Nor can we live with deteriorating ecosystems. Science tells us that we are approaching, and increasingly over-stepping certain planetary boundaries. This, too, is not sustainable,” he said.

Making others rich
Al Jazeera reports on how the cocoa industry treats those who actually produce the beans required to make chocolate.
“The price of this important commodity may have been dropping in recent weeks, but suppliers, buyers and manufacturers will all still make billions of dollars. It’s the farmers of West Africa that will lose out, as they continue to live in poverty.”

Access to medicines
Daniele Dionisio of the European Parliament Working Group on Innovation, Access to Medicines and Poverty-Related Diseases argues for doing away with a controversial clause in a key intellectual property agreement that will be up for debate at this week’s World Trade Organization conference.
“The non-violation nullification of benefits (hereinafter non-violation or NV) provision allows World Trade Organization members to bring disputes to the WTO, which are based on the loss of an expected benefit caused by another member’s action, even if such action does not constitute violation of a WTO agreement.
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WTO developing members would be put at risk should the NV clause be allowed in the [Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS)] agreement. As a result, these countries might face pressures to reverse already enacted policies or measures under the threat of NV claims.
NV complaints could be used to threaten developing members’ use of flexibilities laid down in the TRIPS agreement. As regards access to medicines, the implementation of TRIPS flexibilities by developing members under Articles 30 or 31 (i.e., to grant compulsory licenses or CLs) could be charged with keeping patent owners from their legitimate or reasonable expectations. And it would come as no surprise should members claim that price cuttings of medicines under CLs deprive them of foreseen patent protection benefits.”

Sustainable development
The Overseas Development Institute’s Jonathan Glennie argues it is essential for development and environmental agendas, which he believes are growing apart, to be brought together again at next year’s Rio+20 conference.
“The idea of sustainable development goals, first floated by the Colombian government and seemingly gathering momentum as Rio+20 approaches, could be a way of embedding the concept into international dialogue, as well as binding together disparate processes such as Busan, Durban and the MDGs.
Countries in the north are tempted to give in to vested interests and protect the dirty economy, as Canada appears to be doing by pulling out of the Kyoto protocol. Rio could be the arena to remind them that a green economy will be better for jobs and growth, as well as the planet, if they only have the vision to look beyond the dangerous comforts of the growth model with which we have so far been stuck.”

Democratic hopes and fears
In an interview with Jeune Afrique, the French Institute of International Relations’ Thierry de Montbrial discusses the prospect of an “Islamist counterrevolution” in North Africa and the West’s fickle attitude toward democracy.
“This rise of Islamists was perfectly predictable. Westerners have a contradictory attitude – they want democracy but often reject its consequences – and are naïve because establishing democracy takes time. That said, I don’t think the Islamists, in the Maghreb, are looking for confrontation. They’ll want to have good relations with the West, while trying to transform society slowly through social pressure.” (Translated from the French)

Latest Developments, November 16

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A little relief
The Paris Club of creditor nations has announced a debt relief agreement with Cote d’Ivoire that will reschedule and forgive a portion of the conflict-ravaged country’s debt, while leaving about 95 percent of it on the books.
“Participating creditors welcomed that these measures are expected to reduce the debt service (including the arrears) due by the Republic of Côte d’Ivoire to Paris Club creditors between 1st July 2011 and 30 June 2014 by more than 78% which corresponds to 1 822 million USD, of which 397 million USD cancelled.
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The stock of debt owed to Paris Club creditors by the Republic of Côte d’Ivoire as of 1st July 2011 was estimated to be more than USD 7,185 million in nominal terms.”

Vulture proofing
The Guardian reports on efforts to prevent vulture funds from buying sovereign debt from some of the world’s poorest countries and litigating to collect payment with interest.
“The [UK’s Debt Relief (Developing Countries) Act 2010] law, a world first, requires commercial creditors to comply with the terms of international debt cancellation schemes, which specify a single discount rate for creditors to ensure equal treatment. The law applies to the UK courts and ensures that public money given towards debt cancellation is not diverted to private investors.
However, debt campaigners point out that UK legislation applies only to the 40 [heavily indebted poor] countries and applies to cases before 2004.”

World turned upside down
The UN News Centre reports that the organization’s top food expert is calling on the World Trade Organization to prioritize the right to food in its Doha Development Round of negotiations.
“Some measures that have been cited as helpful in rehabilitating local food production capacity in developing countries are higher tariffs, temporary import restrictions, state purchase from small-holders, and targeted farm subsidies.
But WTO rules leave little space for developing countries to put these measures in place, said [Special Rapporteur on the right to food, Olivier] De Schutter.
‘Even if certain policies are not disallowed, they are certainly discouraged by the complexity of the rules and the threat of legal action,’ he stated. ‘Current efforts to build humanitarian food reserves in Africa must tip-toe around the WTO rulebook. This is the world turned upside down’.”

Oil justice
The American Lawyer’s Michael Goldhaber predicts that American oil giant Chevron will come out on top in the decades-long battle over up to $18 billion in compensation for environmental damage in Ecuador.
“The moment that the arbitrators order Ecuador to make Chevron whole for $18 billion, all of the case dynamics are turned upside down. Suddenly Ecuador’s interests are no longer aligned with the plaintiffs. Suddenly, it is Ecuador and Chevron who share a common interest. And that interest is in dismissing the case, or vastly reducing the verdict.”

Ghanaian oil concerns
Pipe(line) Dreams’ Christiane Badgley writes about a mysterious oil slick that first appeared in the vicinity of a foreign-owned oil operation off the coast of Ghana before making its way to shore, as concerns over the country’s new oil industry grow.
“I’ve been trying to get more information on this spill, which according to someone at EPA, came from a tanker. There’s no way to know with any certainty that this is the case. All the information I have been able to get so far is unofficial. To date there has not been any official statement on the spill — either its source or the amount of oil spilled.”

The real Occupy debate
University of Cambridge economist Ha-Joon Chang argues the Occupy movement is not so much opposed to capitalism, which has taken many different forms across time and space, as to current forms that lack regulation and distribute benefits so unevenly.
“By labelling the Occupy movement “anti-capitalist”, those who do not want reforms have been able to avoid the real debate. This has to stop. It is time we use the Occupy movement as the catalyst for a serious debate on alternative institutional arrangements that will make British (or for that matter, any other) capitalism better for the majority of people.”

Right to know
The Associated Press reports the results of tests it conducted on right-to-know legislation by submitting questions about terrorism arrests and convictions in the more than100 countries where such laws exist.
“Newer democracies were in general more responsive than some developed ones. Guatemala sent all documents in 10 days, and Turkey in seven. By comparison, Canada asked for a 200-day extension, and the FBI in the United States responded six months late with a single sheet with four dates, two words and a large blanked section.”

Democratizing Europe
The Associated Press also reports the EU could be moving towards addressing one aspect of its democratic deficit after German Chancellor Angela Merkel suggested the European Commission presidency should become a popularly elected position, though scepticism remains .
“Nigel Farage, a staunchly anti-EU British member of the European Parliament, was dismissive of the very notion that the EU could be democratic. ‘If the EU ever had any intention to democratize itself it would have done so in the Constitutional Treaty,’ Farage said.
‘As is perfectly evident, they rejected the idea of making it accountable to voters and so I believe this is just words to try to calm an angry populace who are speaking more and more of rejecting their political project.’”

Latest Developments, November 15

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In the latest news and analysis…

Vulture funds
The Guardian reports there are growing calls for the UK to close a legal loophole that allows so-called vulture funds to use Jersey courts to collect money from poor countries.
“Vulture funds legally buy up worthless debt when countries are at war or suffering from a natural disaster and defaulting on their sovereign debt. Once the country has begun to stabilise, vulture funds cash in their cheap debt deeds, at massively inflated cost to the countries.
In the case before the Jersey court, to be decided next month, FG Hemisphere, run by vulture financier Peter Grossman, is trying to collect $100m from the DRC on a debt that appeared to start out at just $3.3m. The original debt was owed to the former Yugoslav government to build power lines.”

Gibraltar tax ruling
Agence France Presse reports Europe’s highest court has ruled against a tax reform proposed by the UK for its territory of Gibraltar, on the grounds that it would constitute state aid to offshore corporations.
“The system was ‘specifically designed’ so that companies with no real physical presence could avoid taxation because it would be based on the number of employees and the size of business premises occupied in Gibraltar, the court said.
The assessment to levy the tax ‘excludes from the outset any taxation of offshore companies, since they have no employees and also do not occupy business property,’ the court said.”

Growing inequality
Euromonitor has released a new report that suggests global inequality is on the rise – “high net worth individuals” increased their wealth by nearly 10 percent in 2010 – and is likely to continue growing in the years ahead.
“It is possible for governments to help narrow the gap between rich and poor by introducing various redistribution mechanisms, such as social welfare programs, minimum wage legislation, higher taxes for the rich and better educational opportunities for the poor,” according to Euromonitor’s Gina Westbrook. “However, many governments are trying to tackle their growing debt troubles, leaving very little financial room for investing in efforts to ease the plight of the poor.”

Toxic dumping trial
Netherlands-based oil and metals trader Trafigura is back in a Dutch court appealing a million-euro fine for illegally exporting toxic waste that was subsequently dumped in Cote d’Ivoire, while the prosecution is seeking a penalty twice that large, as well as the overturn of acquittals for the city of Amsterdam and the Amsterdam Port Services.
“On July 2, 2006, toxic residues on board the Probo Koala were prevented from being offloaded for treatment in Amsterdam’s port and redirected to Abidjan, where they were dumped on city waste tips.
Trafigura, which denies any link between the waste and subsequent deaths and has an independent experts’ report backing its stance, reached out of court settlements for 33 million euros and 152 million euros in Britain and Ivory Coast that exempted it from legal proceedings.
But a United Nations report published in September 2009, found ‘strong’ evidence blaming the waste for at least 15 deaths and several hospitalisations.
The dumping caused 17 deaths and thousands of cases of poisoning, Ivorian judges said.”

Resource extraction harm reduction
The UN News Centre reports on a new book on exploitation of natural resources in post-conflict settings, which includes advice for the international community whence most extractive industry companies originate.
“The publication stresses four areas where international support can be helpful which include providing help to post-conflict countries so they secure better contracts with companies extracting natural resources, increasing transparency in payments and decision-making, supporting the monitoring of companies extracting natural resources, and encouraging strategic planning using revenues to provide immediate gains to the population.”

Reviving cluster munitions
Human Rights Watch’s Steve Goose says the US is leading the fight against the elimination of cluster munitions in negotiations, currently underway in Geneva, to establish a new draft law that would permit the “continued use, production, trade, and stockpiling” of weapons 111 countries have already agreed to ban outright.
“The [Convention on Certain Conventional Weapons] proposal would also establish a terrible precedent in international humanitarian law, adopting for the first time an instrument with weaker standards after one with stronger standards has already been embraced by most nations. The trend has been for the law to grow progressively stronger, with ever greater protections for civilians.”

Free trade opposition
Al Jazeera’s Patty Culhane blogs about the Asia-Pacific Economic Conference in Hawaii, the proposed Trans-Pacific Partnership and protesters not sold on the benefits of international free trade.
“The bottom line for these protesters is that they feel the expanding global economy means their culture is being replaced, their resources exploited and their natural wealth taken. It is true that tourism here means much of the money made goes back to the giant hotel chains. There are jobs, but is it better to be paid to clean up after tourists, or to work in a field? That isn’t really the question I’m learning. They don’t all necessarily want to go back to what they had, but they want a bigger share of what is here now.”

Arab Spring media spin
The University of Michigan’s Juan Cole contends the Western media’s coverage of the Arab Spring as a purely political protest was tactically motivated.
“If the revolutions in Tunisia, Egypt and Libya were merely about individualistic political rights – about the holding of elections and the guarantee of due process – then they could be depicted as largely irrelevant to politics in the US and Europe, where such norms already prevailed.
If, however, they centred on economic rights (as they certainly did), then clearly the discontents of North African youth when it came to plutocracy, corruption, the curbing of workers’ rights, and persistent unemployment deeply resembled those of their American counterparts.
The global protests of 2011 have been cast in the American media largely as an “Arab Spring” challenging local dictatorships – as though Spain, Chile and Israel do not exist. The constant speculation by pundits and television news anchors in the US about whether “Islam” would benefit from the Arab Spring functioned as an Orientalist way of marking events in North Africa as alien and vaguely menacing, but also as not germane to the day to day concerns of working Americans. The inhabitants of Zuccotti Park in lower Manhattan clearly feel differently.”