Tag Archives: World Economic Forum

Latest Developments, January 25

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In the latest news and analysis…

Business rules
Amnesty International is calling on governments to take on the global lack of corporate regulation it says is having a “devastating impact” on the world’s most vulnerable populations.
“Governments are legally bound to consider how the policies and programs they implement affect human rights. In reality, many governments do not conduct even rudimentary assessments of the potential impact of their economic policies on rights.
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Governments are consistently failing to regulate the corporate sector, trusting in their false promises of self-regulation, creating a toxic environment that is showing signs of boiling over as people take to the streets demanding an end to corruption, corporate greed and injustice.”

Trade imbalances
World leaders gathered in Davos for the World Economic Forum must focus less on “the imbalances in developed countries’ debt-to-GDP ratios” and more on “the wider imbalances generated by unfettered globalization,” according to UN Special Rapporteur on the right to food, Olivier de Schutter.
“Trade and investment agreements are the gateways through which globalization passes on its way to redefining a country’s economic landscape, and they are increasing at an impressive pace. There are 6,092 bilateral investment agreements currently in force, with 56 concluded in 2010 alone.
That growth reflects the flawed economic model of the pre-crisis years, which relied on indifference to where growth came from, how sustainable it was, and who was benefiting from it. If we are to learn anything from the ongoing crisis, it must be to start asking the right questions.”

Coal black box
A new report by the Centre for Research on Multinational Corporations (SOMO) argues electricity companies operating in the Netherlands are not coming clean about the source of the coal they use.
“None of the energy companies analysed in the report – E.ON, Vattenfall/Nuon, GDF Suez/Electrabel, RWE/Essent, DONG Energy and EPZ (DELTA) – are transparent about the specific mines where their coal comes from. ‘If companies are open about the coal chain, human rights violations and pollution in the coal chain can be prevented. But the electricity companies refuse to publish this information and as a result are not following recommendations laid out in international standards for supply chain transparency such as the OECD Guidelines for Multinational Companies’, says Joseph Wilde-Ramsing, Senior Researcher at SOMO.”

Press freedom
Reporters Without Borders has released its latest Press Freedom Index, which ranks nine African countries ahead of the US following the “crackdown” on the Occupy movement.
“The worldwide wave of protests in 2011 also swept through the New World. It dragged the United States (47th) and Chile (80th) down the index, costing them 27 and 47 places respectively. The crackdown on protest movements and the accompanying excesses took their toll on journalists. In the space of two months in the United States, more than 25 were subjected to arrests and beatings at the hands of police who were quick to issue indictments for inappropriate behaviour, public nuisance or even lack of accreditation ”

Circumcision silence
Paris Descartes University’s Patrick Pognant decries the lack of debate over the UN’s advocacy of mass circumcision in sub-Saharan Africa as a means of reducing the spread of HIV.
“At the very least, those who are to be circumcised ought to be informed objectively of the irremediable effects of this surgical act, which they have the right to expect from humanitarian organizations that are meant to protect them and improve their living conditions. If we celebrate progress in the field of medicine, we must also remember that it can make mistakes and it harbours extremists and ideologues, overcome, in this case, by a passion for surgery (just as their predecessors from earlier centuries, bistoury in hand, ravaged large populations, especially male ones). The time will come, one hopes, when international authorities will condemn all forms of physical mutilation committed without proper consent, whether the motivation be medical, moral or religious.” (Translated from the French.)

Strange bedfellows
War Child’s Samantha Nutt asks if new partnerships between international NGOs and Canadian mining companies will “nudge along good practice” or “buy silence in the case of bad practice.”
“Under the deal, World University Services Canada, Plan Canada and World Vision Canada will receive CIDA funding totalling $6.7-million for projects with Rio Tinto Alcan, Iamgold and Barrick Gold, respectively. The largest share was for the Plan Canada-Iamgold project, which will take all but $1-million of the CIDA funding over the next five years. For their part, the three mining companies will contribute additional support just shy of $2-million. The combined annual net profit for these firms is more than $4-billion.
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Two of the participating mining firms have recently been involved in labour and human-rights disputes related to their operations abroad.”

Arming the Middle East
The Buck Institute for Research on Aging’s Raja Kamal takes issue with recent American and British arms sales to Saudi Arabia.
“These deals have been presented as useful arrangements to promote stability in a Middle East, allegedly threatened by Iran’s ambitions. However, seen through a different lens, it appears that arms-producing nations such as the United States and the United Kingdom are using Saudi Arabia as an automated teller machine, from which billions of dollars can be secured to bolster their troubled economies.
It is unfortunate that the U.S. Congress did not seize the opportunity to block the F-15 sale on the grounds that arming the Arab world is in the best interests neither of the region nor of the U.S. or the West in the long run.”

Negotiating change
Panteion University’s Alexios Arvanitis calls for negotiators at international talks to bring more than the pursuit of national interests to the table.
“In casting his veto at the European Union’s December summit in Brussels, British Prime Minister David Cameron said, ‘What is on offer isn’t in Britain’s interests, so I didn’t agree to it,’ as if agreement solely depended upon whether or not interests were satisfied.
Then again, reaching an agreement might never have been Cameron’s goal. While so-called “win-win” outcomes are increasingly considered to be the ultimate purpose of every negotiation, what if the negotiating parties contemplate a win-win outcome that actually harms non-participants to the talks, or is against the law? What if the outcome is beneficial but contrary to the principles of the negotiating parties?”

Latest Developments, January 19

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In the latest news and analysis…

Politics of inequality
Oxfam’s Caroline Pearce writes about the NGO’s new report that suggests inequality is on the rise in the majority of G20 countries.
“Crucially, what the report does not find is any link between particular stages of development and levels of or changes in inequality, casting doubt on those who argue that inequality is an inevitable stage along the way to development. Rather, inequality is a matter of political choices, and now the onus is on the G20 to make the right ones. According to new data from the new Standardized World Income Inequality Database, just four G20 countries (Korea, Brazil, Mexico and Argentina) have reduced income inequality in the last 20 years (see chart), and some with only modest levels of growth. Even these are not unambiguous success stories: in three, initial inequality was so high that decades’ more progress would still be necessary to bring them to levels seen in, for example, Pakistan, let alone in a country like Sweden. The exception is Korea, which grew to high-income status while reducing already comparatively low levels of income inequality. The others, along with the rest of the G20 club, face serious challenges in living up to G20 promises about ‘inclusive growth’.”

Millennium Consumption Goals
The UK Youth Climate Coalition’s Casper ter Kuile wonders how the world’s power brokers, who are about to hold their annual get-together in Davos, will respond to the new inequality data.
“The data also reveals that unlike the G20, in most low-income countries, inequality is falling, and levels of inequality are converging towards those of the G20. Perhaps time to revisit that idea of Millennium Consumption Goals? Or set up The Spirit Level reading groups in the Swiss mountains?”

Hedge fund human rights
The Independent reports hedge funds holding large amounts of Greek debt are going to try to protect their finances via the European Court of Human Rights.
“The funds have baulked at the idea of negotiating a settlement with the indebted country. Now, in a move likely to anger millions of Greeks facing austerity measures, fund managers are considering a fight against what they believe would be a violation of human rights law, arguing that their rights to property would be infringed by a write-down of Greek debt.”

Aboriginal rights
The Globe and Mail reports a prominent First Nations leader is calling for constitutional clarification on the rights of Canada’s indigenous people in the wake of the recent Attawapiskat crisis that drew attention to water and housing issues in Aboriginal communities.
“Many first nations leaders say the key to resolving all of these matters is an equitable sharing of resource rights, not just on reserves, but across all of their traditional lands. And, for the most part, the provinces and territories have control over those resources, whether it is diamonds in Ontario, oil in Alberta or minerals in Manitoba.”

Economics of place
On the heels of the US government’s announcement that Haitians will now be eligible to apply for temporary H-2 work visas, the Center for Global Development’s Michael Clemens writes about his first encounter with the economic significance of one’s place of birth.
“My interest in labor mobility as a poverty reduction tool dates to my boyhood, when I spent a summer in Mexico. I was astonished to discover that the man who fixed our toilet in Mexico City earned just a small fraction of what a man doing an identical job in the United States would earn. How could that be? How could location matter so much more than talent, effort, or character?”

Credit inequality
PIMCO’s Mohamed El-Erian argues the world economy has “a nasty plumbing problem” which is leading to dangerous inequality in access to credit.
“From every angle, the extremity of this state of affairs – in which those with access to credit do not need it, and those who do cannot get it – is highly problematic. If left unattended, it leads to a gradual, and then accelerated, renewed deleveraging of the economic system, with the highest first-round costs – a longer unemployment and growth crisis – borne disproportionately by those least able to suffer them. In the next round, as the system slowly implodes, even those with healthy balance sheets would be impacted, accelerating their disengagement from a deleveraging world economy.
All of this slows social mobility, tears already-stretched safety nets, worsens inequality, and accentuates genuine concerns about the functioning and sustainability of today’s global economic system.”

Responsible capitalism
Ekklesia’s Jonathan Bartley argues the changes to the economic system being advocated by political leaders fall well short of the “fundamental” reforms that are needed.
“Responsible capitalism is an oxymoron akin to ‘well-mannered war’ or ‘friendly famine’. But to begin to acknowledge that, the values of the system itself must be questioned not just the ethical or regulatory framework in which it operates.”

Horizontal accountability
¥OURWORLD’s Reinier van Hoffen offers his thoughts on how to improve democracy, using as his starting point a recent Beyond Aid article that argued finding serious solutions to global problems such as climate change and world hunger will require a system of democratic governance that transcends states.
“However, he also acknowledges that such a centralization of power will have some repercussions and challenges that he does not dwell on in his article. I want to take it from there and while agreeing with his analysis about the state in its current shape, I have a sense that the solutions are to be found in the opposite direction and not necessarily require a replacement of the political representation model that underpins the state. It rather requires a transformation of it, renewing the social contract it requires to function properly. Firstly the focus should not be on the power structure but rather on the power base. Secondly, the means by which a new form of governance has to come into existence is by a transformation of the current governance structure.”