Inter Press Service » Economy & Trade http://www.ipsnews.net News and Views from the Global South Sun, 04 Dec 2016 21:56:08 +0000 en-US hourly 1 http://wordpress.org/?v=4.1.13 Unleashing Africa Full Potentialhttp://www.ipsnews.net/2016/12/unleashing-africas-full-potential/?utm_source=rss&utm_medium=rss&utm_campaign=unleashing-africas-full-potential http://www.ipsnews.net/2016/12/unleashing-africas-full-potential/#comments Fri, 02 Dec 2016 15:22:37 +0000 Ambassador Amina Mohamed http://www.ipsnews.net/?p=148058 Amb. Amina Mohamed is the Cabinet Secretary for Foreign Affairs and a Kenya’s candidate for the position of Chairperson of the African Union Commission.]]>

Amb. Amina Mohamed is the Cabinet Secretary for Foreign Affairs and a Kenya’s candidate for the position of Chairperson of the African Union Commission.

By Ambassador Amina Mohamed
NAIROBI, Kenya, Dec 2 2016 (IPS)

Africa, the cradle of mankind and home to the youngest population in the world, has a historic opportunity to realise its full potential, in sharing our potential prosperity, by enhancing economic growth, promoting and entrenching democratic ideals. That is why I am so passionate to be running for the coveted African Union Commission (AUC) Chairperson.

Amb. Amina Mohamed

Amb. Amina Mohamed

It is time for the African Union to provide leadership. Africans of all walks of life are looking up to it. I also strongly believe our continent is at a turning point, a defining moment, when we must drive an agenda that realises a common vision of integration, cooperation, collaboration and committed leadership. It is Africa’s time; we cannot afford to miss this golden opportunity to put it at the centre stage of world politics and economics while improving the lot of our people and countries.

We already have a sound blueprint going forward as envisaged in the African Union’s Agenda 2063 – TThe Africa We Want.

This blueprint has a clear roadmap for implementation. One of the critical areas is achieving synergy of member States through collaboration among the eight regional economic groupings and AU’s strategic partners.

Africa’s markets must communicate with each other to harness trade and investment. Infrastructure deficit stands as an impediment towards this objective. We must secure seamless connectivity through people-to-people interactions, ICT and knowledge transfer throughout the Continent. Hard infrastructure development should also be reinforced by more intra-Africa rail, road, air and water linkages.

Mwalimu Julius Nyerere once said: “Together, we the people of Africa will be incomparably stronger internationally than we are now with our multiplicity of unviable states’. It is no longer tenable to keep talking of our great potential. It is time to make the African Continent; felt, heard and respected on the global scene. For this to happen, Africa must take greater responsibility of financing its development and programmes. Such has been the agreement by our Finance and Planning Ministers since March, 2015. Domestic resource mobilisation is the assured strategic complement to foreign investment and official development assistance. Focused leadership at the AUC will guarantee that this decision is fully implemented.

In order to increase the financial resources available internally, industrialisation and diversification remain pertinent. More specifically, we need to harness our blue economy and fast-track the mining industry.

Africa has to build the capacity of our youthful population. In 2015, African Youth aged 15 – 24 years accounted for 19 percent of the global youth poppulation and projected to increase by 42 percent by 2030. This is a demographic dividend to Africa’s prosperity. Women must also be fully enabled to play an inclusive role in all spheres of Africa’s development. Tapping into African talent will be the hallmark of my tenure. The collective success to Agenda 2063 lies in creating an indomitable human force to resolve Africa’s challenges.

Every African citizen deserves a life of dignity free from harm, in order to promote social justice and the realization of their potential. I am optimistic that together we can continue to create a Continent that not only embodies our pride and dignity, but also the hub for peace and stability.

Africa must also make its cultural diversity a cause for celebration. Cultural exchange across the continent through education, travel and symposia. This will renew our Pan-African ideals especially among younger Africans.

Our continent has made significant strides in expanding access to education and better health care. In order to shelter our population from extreme want, we ought to explore skills diversification and universal health coverage.

Investing in value-addition through agro-processing will increase Africa’s global market share and attain collective food security and comparative advantage.

Going forward, we must remain in partnership with the rest of the world. Global challenges such as climate change will only be resolved through cooperation. However, Africa remains most vulnerable from effects of global warming. As such, we need to; take serious mitigation and adaptation measures, utilise indigenous knowledge to generate local shared solutions and build resilient communities in addition to our continued demands for climate justice.

Thus, united by the vision of an independent Africa working for better lives of all her people, it is now time for the AUC to foster the realisation of Africa’s full potential through transformative leadership harnessed by the AUC Secretariat.

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ISDS Corporate Rule of Lawhttp://www.ipsnews.net/2016/12/isds-corporate-rule-of-law/?utm_source=rss&utm_medium=rss&utm_campaign=isds-corporate-rule-of-law http://www.ipsnews.net/2016/12/isds-corporate-rule-of-law/#comments Thu, 01 Dec 2016 16:35:06 +0000 Jomo Kwame Sundaram http://www.ipsnews.net/?p=148035 Jomo Kwame Sundaram was United Nations Assistant Secretary-General for Economic Development, and received the Wassily Leontief Prize for Advancing the Frontiers of Economic Thought in 2007.]]> Foreign corporations have used Investor-state dispute settlement to change sovereign laws and undermine national regulations.

Foreign corporations have used Investor-state dispute settlement to change sovereign laws and undermine national regulations.

By Jomo Kwame Sundaram
KUALA LUMPUR, Malaysia, Dec 1 2016 (IPS)

Investor-state dispute settlement (ISDS) provisions in ostensible free trade agreements (FTAs) and bilateral investment treaties (BITs) have effectively created a powerful, privileged system of protections for foreign investors that undermine national law and institutions. ISDS allows foreign corporations to sue governments for causing them losses due to legal or regulatory changes.

A law unto themselves
ISDS cases are decided by extrajudicial tribunals composed of three corporate lawyers. Although ISDS has existed for decades, its scope and impact has grown sharply in the last decade. As ISDS has been written into over 3,000 BITs and numerous FTAs, the opportunities for ISDS claims are huge and growing.

Originally justified as necessary to protect foreign corporate investments abroad from nationalization or expropriation by governments controlling national judiciaries, foreign corporations have used ISDS to change sovereign laws and undermine national regulations. As there is no cap on the amount of awards, claims – and awards – can be huge.

The system is secret and dominated by unaccountable corporate lawyers. As international arbitration is typically not transparent, pursuing such claims can avoid the public scrutiny associated with mounting legal challenges in courts. Lack of transparency means that lawyers acting as arbitrators or advocates in one case can be unnamed investors in other cases, as nobody would ever know.

ISDS proponents claim that the outcomes of cases are uncertain, and corporations only win about a quarter of the cases they pursue. But this does not include settlements agreed to before the conclusion of arbitration proceedings from which corporations often secure handsome benefits of some kind or other. ISDS arbitration is certainly far more attractive to foreign investors who would otherwise shy away from pursuing claims in other national courts, particularly against host governments.

Recent ISDS decisions have involved significantly greater delegation of authority to arbitrators in interpreting and applying the agreements concerned, without any meaningful review or opportunity to appeal the arbitrators’ decisions. There is no guarantee that tribunals will interpret treaty provisions in ways consistent with governments’ understandings of what treaty obligations mean.

Foreign corporations rule
ISDS also allows foreign investors to challenge the actions of officials at any level of government – local, state, and federal – as well as conduct by any branch – executive, legislative and judicial. A measure entirely consistent with domestic law is no defence against liability. ISDS thus empowers private arbitrators to decide on cases that are essentially matters of domestic constitutional and administrative law, but are presented as treaty claims.

With ISDS, foreign investors will be able to ask a panel of appointed international arbitrators to determine ‘proper’ administrative, legislative and judicial conduct while bypassing national judicial institutions. Since many legal decisions involve matters of interpretation, non-national judges deciding on ‘national’ issues will make a great deal of difference. It greatly helps foreign investors to be able to bring their claims against a government before international arbitrators, and not domestic courts.

Further, there is no provision for meaningful appeal; a tribunal’s decision will probably stand even if it gets the law or facts wrong. ISDS decision makers are not required to be independent and impartial with the high ethical standards expected of most judges. If a domestic court makes a decision inconsistent with legislative intent, the legislature can correct it by passing new legislation, but it has no power to override an ISDS decision.

Procedural rules and remedies are significantly different, depending on whether an investor claim is through ISDS or domestic courts, with significant consequences for a government’s exposure to claims and liability. Also, similar sounding legal texts may be interpreted very differently in different contexts; thus, the law is not the same in effect, even it may look similar.

The threat of supranational adjudication has many, often complex legal and policy implications. ISDS will inadvertently dilute constitutional protections, weaken the judiciary, and displace national legal systems with a system of private arbitration devoid of key checks and balances found in most national judicial systems. Investors seem to have persuaded many politicians to support their ISDS promotion efforts. In short, ISDS is an extreme, discriminatory and unnecessary form of supranational adjudication that undermines national law and institutions.

Alternatives
While public and private insurance and other forms of foreign investment protection are already available to protect legitimate investor rights and interests, it is doubtful whether ISDS is even needed for the situations it was originally designed for. Already, India, Indonesia and Ecuador have advised their treaty partners that they are considering ending their BITs because of ISDS.

To reduce abuses, investors could be required to first prove discrimination in national courts before being allowed to proceed to ISDS arbitration. Alternatively, national courts could exercise judicial review over ISDS awards. Also, arbitrators could be required to be independent of the ISDS process, with set salaries, security of tenure and no financial ties to litigants while investor status for ISDS claims could be defined more strictly.

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Subway Will Modernise – and Further Gentrify – Historic Centre of Quitohttp://www.ipsnews.net/2016/11/subway-will-modernise-and-further-gentrify-historical-centre-of-quito/?utm_source=rss&utm_medium=rss&utm_campaign=subway-will-modernise-and-further-gentrify-historical-centre-of-quito http://www.ipsnews.net/2016/11/subway-will-modernise-and-further-gentrify-historical-centre-of-quito/#comments Wed, 30 Nov 2016 13:44:10 +0000 Mario Osava http://www.ipsnews.net/?p=148017 In the Plaza de San Francisco, where the church and convent of the same name stand, fences have blocked off the construction site for the Quito subway for months, as work has been stalled while archaeological finds are assessed. Quito’s historic centre is the biggest in Latin America. Credit: Mario Osava/IPS

In the Plaza de San Francisco, where the church and convent of the same name stand, fences have blocked off the construction site for the Quito subway for months, as work has been stalled while archaeological finds are assessed. Quito’s historic centre is the biggest in Latin America. Credit: Mario Osava/IPS

By Mario Osava
QUITO, Nov 30 2016 (IPS)

Success can kill, when it comes to cities. Spain’s Barcelona is facing problems due to the number of tourists that it attracts. And the historic centre of Ecuador’s capital city, Quito, a specially preserved architectural jewel, is losing its local residents as it gentrifies.

This paradox was pointed out by Fernando Carrión, president of the Latin American and Caribbean Organisation of Historic Centres (OLACCHI) and a professor at the Latin American Social Sciences Institute (FLACSO) in Ecuador.

“Quito’s historic centre lost 42 per cent of its population over the last 15 years, a period in which it gained better monuments and lighting, and became cleaner,” he said. According to official census figures, the population of the old city dropped from 58,300 in 1990 to 50,982 in 2001 and 40,587 in 2010.“The subway is a good solution, which will reduce the use of private buses that pollute, and will help solve congestion in a city where the traffic passes through the north-south corridor.” -- Julio Echeverría

The effort to revitalise the historic centre was based on a “monumentalist policy,” on the restoration of churches and large buildings, which led to a process of gentrification, driving up housing prices and the conversion of residential into commercial property and pushing out low-income residents, he told IPS.

“I fear that the subway will drive away more people,” exacerbating the tendency, he added.

Two stations of the first subway line in Quito started to be built in 2013 by the Spanish company Acciona. “Phase two”, the construction of a 22-kilometre tunnel and 13 other stations, got underway in January 2016 and is to be completed by July 2019.

The consortium that won the bid is made up of Acciona and Odebrecht, Brazil’s largest construction company, which has built subway lines in several Latin American countries.

Only one station, in the Plaza de San Francisco, will be located in the historic centre. “Projections estimate that 42,000 passengers per day will pass through that station,” that is to say that “with the subway the same number of people will arrive but by a different means of transport,” Mauricio Anderson, the general manager of the Quito Subway Public Metropolitan Company (EPMMQ), told IPS.

Underground transport “will reduce traffic congestion, vibrations and pollution” by replacing cars and buses, he said.

The aim of the new mass transport system is to improve the quality of life of people in Quito, by reducing travel time, generating socioeconomic inclusion of people in the lower-income outlying neighbourhoods, saving fuel, cutting the number of accidents and creating a cleaner environment, according to EPMMQ.

“Each day about 400,000 people in Quito will use this system,” said Anderson. “This will help optimise other services and increase the average travel speed in Quito, which for surface transport is now 13 kilometres per hour, and by subway will be 37 kilometres per hour.”

A dedicated lane system trolley bus and one of its stations, in Ecuador’s capital. Critics of the subway in Quito argue that it would be better for the city to extend and improve the tramways. Credit: Mario Osava/IPS

A dedicated lane system trolley bus and one of its stations, in Ecuador’s capital. Critics of the subway in Quito argue that it would be better for the city to extend and improve the tramways. Credit: Mario Osava/IPS

As Ecuador’s capital has an elongated shape, stretching from north to south, the 22-kilometre subway line with 15 stations will enable most of the city’s residents to take the subway or catch a bus that hooks into the system within less than four blocks of their homes or workplaces, according to studies that guided the system’s design.

The subway, with trains that will hold up 1,500 passengers each, “will connect the entire integrated transport system.”

According to 2014 statistics, there were 2.8 million daily trips in the public transport system of the Metropolitan District of Quito, most of them by conventional buses and the Bus Rapid Transit (BRT) system, which uses bus-only lanes.

Opponents of the subway argue that by optimising the BRT system, which serves the same north-south route, it could transport more passengers than the subway, with a significantly lower investment.

But “Quito’s surface is saturated, there are no real dedicated lanes and the roads are narrow,” said Anderson, stressing the greater speed and efficiency of the subway, which benefits both passengers and the environment.

Building the subway will cost just over two billion dollars, “that is 89 million dollars per kilometre, a figure that is below the region’s average,” said the manager of the Quito subway.

The project was designed by the Spanish public company Metro de Madrid. A fare of 45 cents of a dollar will cover the first line’s operational and maintenance costs, according to the company.

But Ricardo Buitrón, an activist with Acción Ecológica, said “They will cost much more than that,” noting that building a subway in Quito is complex and arguing that it cannot be cheaper than in Panama, for example, where each kilometre cost 128 million dollars to build.

The Cerro del Panecillo hill, which divides north from south of Ecuador’s capital, seen from the Museum of the City, at the heart of the historic centre. The rugged topography represents a challenge to mobility in this highlands city. Credit: Mario Osava/IPS

The Cerro del Panecillo hill, which divides north from south of Ecuador’s capital, seen from the Museum of the City, at the heart of the historic centre. The rugged topography represents a challenge to mobility in this highlands city. Credit: Mario Osava/IPS

Besides, with what is being invested in the subway “260 kilometres of exclusive lanes for electric buses plus 40 kilometres of tramways could be created, like the system being built in Cuenca,” in southern Ecuador, he told IPS.

And a 45 cent fare will require subsidies, which he estimated at 100 million dollars annually. In other countries, the operational cost per passenger is over 1.5 dollars, he said.

“Subsidies are inevitable in public transport, but they should contribute to improving the system,” said Buitrón. In Quito, for example, they should bolster the use of electric buses, remedying the setback represented by the replacement of electric articulated buses with diesel-run buses that are more economical, he said.

In Ecuador, diesel fuel is poor quality and heavily polluting, as seen in the black smoke they emit, he said.

“The subway is a good solution, which will reduce the use of private buses that pollute, and will help solve congestion in a city where the traffic passes through the north-south corridor,” said Julio Echeverría, executive director of the Instituto de la Ciudad and former professor of political science in several universities in Ecuador and Italy.

But this responded to a “linear and longitudinal” moment in Quito’s urban development which is long past. Now the city has changed, it is “scattered, fragmented, it stretches toward the valleys and other agricultural areas of great biodiversity,” he said.

Quito, with an estimated total population of 2.5 million, has the largest and least altered historic centre in Latin America, having been declared in 1978 a Cultural Heritage of Humanity site by the United Nations Educational, Scientific and Cultural Organisation (Unesco).

Founded in 1534 on a long and narrow plateau on the eastern slopes of the Andes Mountains next to the Pichincha volcano, some 2,800 metres above sea level, Ecuador’s capital has a very well preserved centre with more than 50 churches, chapels and monasteries, and dozens of squares.

The negotiated relocation of some 7,000 street vendors to formal markets in 2003, and a pedestrianisation of the historic centre program carried out in the first decade of the century, bringing art to the squares and streets every Sunday, helped to attract local residents and growing numbers of tourists.

The great impact of building a subway under the old city worries many people. “The subway is not a good thing for the poor; it is faster than the trolley bus, but more expensive,” said 52-year-old Manuel Quispe, who earns a living cleaning shoes in Plaza de San Francisco.

Jorge Córdoba, another shoe shiner in the square, agreed that the subway is faster, but told IPS he believes it will be impossible to build, since “Quito was built on filled-in gullies” and it will be hard to open tunnels. He complained, like Quispe, of the many months that the works have been stalled, blocking half of the square and reducing their already meagre incomes.

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Ensuring Shared Progress for Sustainable Development and Peacehttp://www.ipsnews.net/2016/11/ensuring-shared-progress-for-sustainable-development-and-peace/?utm_source=rss&utm_medium=rss&utm_campaign=ensuring-shared-progress-for-sustainable-development-and-peace http://www.ipsnews.net/2016/11/ensuring-shared-progress-for-sustainable-development-and-peace/#comments Thu, 24 Nov 2016 23:15:50 +0000 Jomo Kwame Sundaram http://www.ipsnews.net/?p=147948 Jomo Kwame Sundaram was the Assistant Secretary-General for Economic and Social Development in the United Nations system during 2005-2015, and received the 2007 Wassily Leontief Prize for Advancing the Frontiers of Economic Thought. ]]> Concern about equality has grown as every major economic, social and political crisis has been preceded by rising inequality. Credit: IPS

Concern about equality has grown as every major economic, social and political crisis has been preceded by rising inequality. Credit: IPS

By Jomo Kwame Sundaram
KUALA LUMPUR, Malaysia, Nov 24 2016 (IPS)

International inequality has grown over recent centuries, especially the last two. Before the Industrial Revolution, between-country inequalities were small, while within-country inequalities accounted for most of overall global income inequality. Now, inter-country income inequalities account for about two-thirds of world inequality with intra-country inequality accounting for a third.

Concern about inequality has grown as every major economic, social and political crisis has been preceded by rising inequality. World War II was no exception. Thus, on 10th May 1944, the International Labour Congress adopted the historic Philadelphia Declaration which asserted that “lasting peace can be established only if it is based on social justice”.

Similar concerns were on the agenda of the Bretton Woods Conference two months later. The conference sought to create conditions for enduring peace by ensuring post-war reconstruction and post-colonial development through sustained growth, full employment and declining inequality. Bretton Woods created the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD) with this mandate foremost.

The IMF would support countries, not only in overcoming balance of payments difficulties, but also “to direct economic and financial policies toward the objective of fostering orderly economic growth with reasonable price stability, with due regard to its circumstances”. The IBRD, later better known as the World Bank, was set up to support long-term investment and development.

The world then saw almost three decades of shared prosperity as labour’s share of output increased. This Golden Age also saw greater investment in health, education and public services, including social welfare. This post-war consensus endured for over a quarter century before breaking down in the 1970s, only to be replaced in the 1980s by its anti-thesis, the Washington Consensus.

Counter-Revolution
Unfortunately, each era, no matter how successful, sows the seeds of its own demise. Three major new economic ideas helped undermine the post-war consensus underlying the Golden Age:
• the higher propensity to save (and invest) of profit makers, compared to wage earners, became the pretext for the tolerance, if not promotion of inequality in favour of profits, ostensibly to accelerate investment and growth;
• progressive redistribution was deemed bad for growth, as it not only lowers savings and investment rates, but also requires significant fiscal resources, raising tax rates and diverting fiscal resources from investments desired by investors;
• the Kuznets’ hypothesis suggested the inevitability of inequality rising with growth (before eventually declining).

From the early 1980s, the “Washington Consensus” – the policy consensus on economic development shared by the American establishment and the Bretton Woods institutions located in the US capital city – emerged as the banner for the counter-revolutions against development economics, Keynesian economics and progressively redistributive state interventions.

A relentless push for deregulation, privatization and economic globalization followed. Such measures were supposed to boost growth, which would eventually trickle down, thus reducing poverty. Hence, there was no need to worry about inequality.

Macroeconomic policies became narrowly focused on balancing the annual budget and attaining low single digit inflation – instead of the previous emphasis on sustained growth and full employment with reasonable price stability.

But these ‘neo-liberal’ measures largely failed to deliver sustained growth. Instead, financial and banking crises have become more frequent, with more devastating consequences, exacerbated by greater tolerance for inequality and destitution.

The new global priorities at the end of the Second World War remain relevant today. Research has disproved the previously widespread presumption that progressive redistribution retards growth. Even recent IMF and World Bank research acknowledges that inequality and social exclusion are detrimental to growth. After more than three decades of regression, we have to recommit ourselves to the more egalitarian ethos of the Philadelphia Declaration and the Bretton Woods conference.

Marshall Plan
At the beginning of the Cold War against the Soviet bloc, US Secretary of State General George Marshall announced a reconstruction plan for war-torn Europe. Known as the Marshall Plan, the generous infusion of US aid and acceptance of national reconstruction and development policies ensured the rebirth of modern Western Europe. For many Europeans, this is still seen as America’s finest hour.

In the decade that followed, the Marshall Plan became what is probably the most successful economic development assistance project in history. Similarly appropriate economic development policies were introduced in Japan, Taiwan and South Korea following the Korean War and establishment of the People’s Republic of China. Thus, the Marshall Plan created a cordon sanitaire to contain the spread of communism as the Cold War began.

The Marshall Plan experience offers valuable lessons for today. Europe was rebuilt with policies that included economic interventions such as high duties, quotas and other non-tariff barriers. Free trade was delayed until after international competitiveness had been achieved.

Marshall’s lecture offers other relevant lessons. Unlike today’s conventional wisdom, he argued that viable institutions would only emerge from economic progress, not the other way around. Marshall also emphasized that aid should be truly developmental, not piecemeal or palliative. The productive capacities and capabilities of developing nations have to be nurtured. Marshall knew that inclusive and shared economic progress is the only way to create lasting peace.

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Initial Global Effects of Trump Even Before Taking Officehttp://www.ipsnews.net/2016/11/initial-global-effects-of-trump-even-before-taking-office/?utm_source=rss&utm_medium=rss&utm_campaign=initial-global-effects-of-trump-even-before-taking-office http://www.ipsnews.net/2016/11/initial-global-effects-of-trump-even-before-taking-office/#comments Thu, 24 Nov 2016 13:56:36 +0000 Martin Khor http://www.ipsnews.net/?p=147937 Credit: Bigstock

Credit: Bigstock

By Martin Khor
PENANG, Nov 24 2016 (IPS)

Even before taking office, President-Elect Donald Trump and the policies he promised during his campaign are already having a worldwide impact in at least three areas —  global finance, trade and climate change.

If his election is described as an earthquake, the aftershocks are now being felt.

Global funds are starting to move out of many developing countries, reducing the value of their currencies and causing great economic uncertainty.

The Trans Pacific Partnership (TPP) looks like it will fade away, as Trump has said he would give notice of the US withdrawing from the pact on his first day of office.

Earlier, President Obama, seeing the signs on the wall, gave up on efforts to give it a final push through Congress.

And delegates meeting at the two-week annual UN climate conference that ended in Marakesh on 19 November were all speculating whether a President Trump would carry out his campaign threat to pull the US out of the Paris Agreement and what then would happen to future international climate action.

Trump has since softened his stand, telling the New York Times on 22 November that he has “an open mind” on the Paris agreement.  But he has also indicated he won’t follow through on the Obama administration’s domestic measures to reduce Greenhouse gases.

Martin Khor

Martin Khor

These are only some of initial effects in anticipation of a Trump presidency.   As the President Elect  begins to fill in his cabinet positions, the world also wondered what is in store with regard to new US policies on immigration, the UN, the Middle East, Asia and even NATO.

The first concrete real-world effect was on currencies and the flow of funds in developing countries. Equities and currencies in many countries in Asia and elsewhere have taken a hit since the Trump election victory.

The US dollar has strengthened significantly in expectations that Trump will embark on massive spending on infrastructure, thus increasing expectations of inflationary pressures and of the Federal Reserve raising interest rates earlier than expected.

Many billions of dollars of funds that had moved to emerging economies in search for higher yield are returning to the now-attractive USA, and this reverse flow is expected to continue or increase.

This can cause volatility and havoc in many emerging economies, in the wake of an exit of a sizable portion of the hundreds of billions of dollars of foreign funds.

Many developing countries are vulnerable as foreign funds in recent years have increased their ownership of their government bonds denominated in domestic currencies, and there is also higher participation of foreigners in their stock markets.

This makes them even more susceptible to high outflows of capital, and to the weakening of their currency levels, making it more difficult to service external debt.   The lesson from the boom-bust financial cycle is that what comes in as short-term funds will most likely move out when conditions change.

On the TPP, the effects of the US elections came swiftly. The US Congress must ratify the TPP for it to come into effect and the last opportunity is during the “lame duck” session before Trump’s inauguration on January 20.

But immediately after the elections, Senate majority leader Mitch McConnell Dougall announced there would be no vote on the TPP during this year.

Sensing there is no hope for a TPP bill to succeed, Obama signaled he would give up the effort.  As Obama is the true, and often lonely, champion of the TPP, while Trump had pledged to kill it during his campaign, there is almost no prospect for the TPP to be ratified in the US.

Many billions of dollars of funds that had moved to emerging economies in search for higher yield are returning to the now-attractive USA, and this reverse flow is expected to continue or increase
At the recent summit meeting of the Asia-Pacific Economic Cooperation held in Lima, leaders of the TPP countries, including Obama, were holding on to the possibility that Trump on taking office would change his mind on the TPP.

After all, President Bill Clinton pushed through the North American Free Trade Agreement (NAFTA) though he opposed it before becoming President and Obama had signed the TPP although he too had earlier been against such agreements.

However, Trump dashed hopes that he too would do an about-turn when he announced on 20 November that on his first day as President he would issue a notification of intent to withdraw from the TPP which he called a “potential disaster.”

Without the US on board the TPP cannot survive, as at least six countries with 85% of the combined GDP of all the 13 TPP countries need to ratify the agreement for it to come into effect.

The near-certain death of the TPP is due not so much to Trump as to the public mood in the US that has become so strongly against such trade agreements that it was unlikely there would be enough votes to get it through the Congress, whoever won the election.

A larger issue is what overall trade policy Trump will adopt.  It is almost certain that the other big agreement, the US-European Union Transatlantic Trade and Investment  Partnership (TTIP), will also cease negotiations.

And NAFTA may be re-negotiated, as this was a Trump campaign promise, though no one knows the parametres of such a re-negotiation.

Trump has also vowed to slap on huge tariffs on imports from China and Mexico.  Doing so would be against basic World Trade Organisation rules, so Trump might have to discard his campaign threats – or else hell will break loose at the WTO.

In any case, the future of the WTO’s negotiating agenda will have to await the unveiling of President Trump’s overall trade policy.

Thus the Trump presidency will have a huge impact on the future of the multilateral trading system as well as on bilateral trade agreements.

Even more is at stake in climate change, widely described as the biggest crisis facing the world.  During the campaign, Trump described climate change as a hoax and vowed to pull the US out from the Paris Agreement, which Obama had joined with other countries to ratify and which came into force in record time on 4 November.

There was a sombre mood at the UN Climate Change Convention conference in Morocco that ended 19 November.  Delegates and activists alike speculated in the corridors on what would happen if the US leaves the Paris Agreement or even the Convention altogether.

French President Francois Hollande told the conference that “the United States, the second largest greenhouse gas emitter, must respect the commitments it has undertaken,” stressing that the agreement was “irreversible”.

If the US leaves the Paris Agreement, the effects could be disastrous.  When the US under President George W. Bush withdrew from the Kyoto Protocol in 2001, it didn’t have an immediate effect on other countries.

But by 2011, Japan, Russia and Canada had also either pulled out of the protocol or refused to participate in its second commitment period, and the protocol is now hardly operational.  There are legitimate concerns the same fate may befall on a Paris Agreement without the US.

Freed from the commitment the US made under the agreement to cut its Greenhouse Gas emissions by 26-28 percent below 2005 levels by 2025, a Trump administration might more easily un-do Obama’s executive orders and the Environment Protection Agency rules to cut emissions from existing power plants.

A ray of hope was lit on this depressing scenario at least temporarily when Trump told journalists at the New York Times that “I have an open mind on it”, when asked about the Paris agreement.

The chances of Trump becoming a climate co-operant if not exactly a champion are not however bright.  He has announced that his choice for EPA head is Myron Ebelle, known for his skeptical views on the “myths of climate change.”

And one of his priorities on assuming office would be to pump more oil and gas and restore the coal industry.  Reversing Obama’s climate change regulations are expected to follow.

If the US remains in the Paris Agreement, the other countries will struggle with it to try to hold it to its commitments.  And at some point, if it is clear it no longer believes in meeting its pledged targets, it may decide to leave, or to weaken the agreement to accommodate its new position.

Unless there is a change of heart when Trump becomes President, these are the gloomy prospects on climate change cooperation.  We may be back to the pre-Obama days when the US under Bush was in denial of the need to act on climate change either domestically or internationally.

This time the situation is much more serious, as the next few years constitute the last window of opportunity for action to prevent a global climate change catastrophe.

These three aftershocks after the election earthquake are quick signs that confirm that not only Americans but the world at large are in for uncertain and uncomfortable times ahead.

We are in for a roller coaster ride, and the world as well as the world order may never be the same again.

 

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Kenya’s Youth Unemployment Challenge Presents Opportunitieshttp://www.ipsnews.net/2016/11/kenyas-youth-unemployment-challenge-presents-opportunities/?utm_source=rss&utm_medium=rss&utm_campaign=kenyas-youth-unemployment-challenge-presents-opportunities http://www.ipsnews.net/2016/11/kenyas-youth-unemployment-challenge-presents-opportunities/#comments Tue, 22 Nov 2016 16:29:54 +0000 Ambassador Ken Osinde and Siddharth Chatterjee http://www.ipsnews.net/?p=147888 Ambassador Ken Osinde is Chief of Staff, Office of the Deputy President of Kenya. Siddharth Chatterjee is the UN Resident Coordinator and UNDP Resident Representative in Kenya.]]> Cabinet Secretary Mwangi Kiunjuri and CEO of Safaricom, Bob Collymore at launch of the SDGs in Nairobi. Key role of private sector recognized. Credit: UNDP Kenya

Cabinet Secretary Mwangi Kiunjuri and CEO of Safaricom, Bob Collymore at launch of the SDGs in Nairobi. Key role of private sector recognized. Credit: UNDP Kenya

By Ambassador Ken Osinde and Siddharth Chatterjee
NAIROBI, Kenya, Nov 22 2016 (IPS)

Consider this paradox. Every year 1 million young people join the job market in Kenya, yet Kenya has the largest number of jobless youth in East Africa.

As the government puts in place measures for addressing the issue of high youth unemployment and poverty, The private sector needs to join forces to sustainably grow its business and markets. Businesses and the societies that they operate in are symbiotic and it is now an established maxim that business cannot succeed in societies that fail.

Tackling poverty is the main mission of the new Sustainable Development Goals (SDG) agenda signed last year by 193 global leaders. The agenda obliges nations to tackle the causes of poverty by meeting the people’s health, education and social needs, to reduce inequality and exclusion and at the same time avoid wrecking the ecosystems on which life depends.

The target population for the SDGs – includes those who live below the poverty line and who make up nearly half of the population. Innovative organisations, whether in the public or private sector, have for a while now woken up to the reality that this population is critical to their future growth and sustainability.

The SDGs dovetail well with the pursuit of innovation which is at the heart of business sustainability. Innovation will drive sustainable impact because it aims to create value and expand opportunity for people to live better lives. It enables business to remain at the cutting edge of market competition and in turn generate tax revenues that governments can use to improve public services.

That pursuit for universal prosperity will have to be driven by a major paradigm shift, where the divide between government and profit-driven enterprises are purposefully bridged. Collaboration between business and public sector offers enormous promise when their respective talent, drive, expertise and resources are harnessed through a win-win partnership.

According to a study by PWC in 2015 – Make it Your Business, Engaging with the SDGs – 92% of businesses are aware of the SDGs, 72% are planning to take action, 29% are setting goals aligned with them, and 13% of businesses have identified the tools that they need.

It is encouraging that companies like leading Kenyan telecommunications company Safaricom are among the 13% in Kenya, leading the way in identifying the tools required and implementing strategies for change that align their business strategy to the SDGs through shared value creation.

Safaricom’s True Value assessment shows that the company sustained over 182,000 direct and indirect jobs during the year and, if the wider effects on the economy are included, this number increases to over 845,000 jobs.

What if we have five companies as purpose-driven and successful as Safaricom in Kenya?

The impact would be enormous. Such businesses would create jobs, boost tax revenues, and provide products and services which all helps improving standards of living for the poor. By increasing incomes and by improving quality, affordability, convenience, and choice in the marketplace, they would enhance access to healthcare, nutrition, connectivity, energy, water and sanitation and financial security.

Investing in the achievement of the SDGs supports pillars of business success, including the existence of rules-based markets, transparent financial systems, and non-corrupt and well-governed institutions and inclusive economic growth to reduce the critical wealth disparity in the country.

In Kenya, nowhere do these disparities stand out more than in the number of unemployed youth. It is now widely acknowledged that this pool of youth represent a unique potential for a demographic dividend.

“This dividend will be a reality if public and private partnerships help youth break out of a cycle of inter-generational poverty through entrepreneurship opportunities in such high-value sectors as agribusiness.” says Ambassador Amina Mohamed, Kenya’s Foreign Minister.

The majority of unemployed youth are afterall, in rural areas, and the focus should be on adding value to agricultural products, encouraging local-manufacturing, providing necessary infrastructure to stem urban migration and empowering women and youth to run small businesses.

Strengthening the education system to better deliver skills and competencies wanted by employers is another area to look at. Models such as the ones from Kuhustle or Andela are interesting to examine in our collective quest to quickly help wider scaleup and replication to more industries and sectors.

The youth in remote and poor underserved areas also represent incredibly important and rapidly growing potential markets as well as backward and forward supply chains through small business entrepreneurship if purchasing power and demand growth occurs with inclusive economic stimulation.

Properly empowered and prepared with skills to enter the job market, this population represents potential employees but also customers for businesses. This ultimately translates to reduction in household poverty levels.

President Uhuru Kenyatta remarked that, “While the private sector can and should contribute significantly to attaining the SDGs, governments will play an important role because they can address market failures”. As evidence, the Access to Government Procurement Opportunities (AGPO) framework established by the President has enabled thousands of youth to graduate into entrepreneurs.

The United Nations and the Government of Kenya also stand ready to catalyse multi-stakeholder ecosystems in support of this agenda. We have a window of opportunity to engage these stakeholders to support local planning and technical SDG processes, especially through the SDG Philanthropy Platform established in the office of the UN Resident Coordinator in Kenya, the Social Investment Focused Agenda (SIFA) within the Deputy President’s office as well as Global Compact Kenya based at Kenya Association of Manufacturers.

Everyone has a role in the delivery of the SDGs and partnering with responsible, innovative businesses in that process raises our chances of becoming the first generation to end poverty. Here lies the opportunity for all of us to join hands on collective impact on our society and our planet to ensure that we “leave no one behind”.

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Coal Mine Threatens Ecological Paradise in Chile’s Patagonia Regionhttp://www.ipsnews.net/2016/11/coal-mine-threatens-ecological-paradise-in-chiles-patagonia-region/?utm_source=rss&utm_medium=rss&utm_campaign=coal-mine-threatens-ecological-paradise-in-chiles-patagonia-region http://www.ipsnews.net/2016/11/coal-mine-threatens-ecological-paradise-in-chiles-patagonia-region/#comments Tue, 22 Nov 2016 12:50:18 +0000 Orlando Milesi http://www.ipsnews.net/?p=147877 Humpback whales and dolphins are part of the rich habitat of the Otway gulf, in the Magellan Strait, near the Invierno mine on Riesco Island in the southern Chilean wilderness region of Patagonia. Credit: José Antonio de Pablo/ Riesco Island Alert

Humpback whales and dolphins are part of the rich habitat of the Otway gulf, in the Magellan Strait, near the Invierno mine on Riesco Island in the southern Chilean wilderness region of Patagonia. Credit: José Antonio de Pablo/ Riesco Island Alert

By Orlando Milesi
SANTIAGO, Nov 22 2016 (IPS)

An open-pit coal mine in the southern island of Riesco, a paradise of biological diversity in Chile’s southern Patagonia wilderness region, is a reflection of the weakness of the country’s environmental laws, which are criticised by local residents, activists, scientists and lawmakers.

Riesco, the country’s fourth-largest island, at the southern tip of South America, and the waters around it, is home to many species, such as the humpback whale, four kinds of dolphins, elephant seals and penguins, 24 species of land mammals and 136 birds.

“I will not leave. But I see the drastic changes,” a worried Gregor Stipicic, one of the island’s 150 inhabitants, told IPS by telephone from Riesco.

Gregor, 36, is the youngest of three Stipicic siblings who own a 750-hectare farm where they raise about 6,000 sheep, which are now threatened by dynamite explosions.

Gregor, a surgeon by profession, has been living on the farm since 2006, when he took charge after the death of his father. His grandfather, a Croatian immigrant, arrived to the island in 1956, drawn by its fertile soils.

Riesco Island is 5,000-sq-km in size and is 3,000 km south of Santiago, in Magallanes, the country’s southernmost province.

The local inhabitants live and work on 30 farms, which mainly raise sheep.

One-third of the island’s territory is within the Alacalufes National Reserve, one of the largest in Chile, covering 2.6 million hectares of wilderness that forms part of the country’s protected areas.

The “mina invierno” or winter mine, the largest open-pit coal mine in the country, belongs to the Riesco Island Mining Company, owned by the Chilean companies Copec and Ultramar, which invested 600 million dollars in the mine, and have four other deposits on the island, so far inactive.

The aim is to exploit, for 12 years, reserves of 73 million tons of sub-bituminous coal, of low calorific value and high heavy metal content. The coal is sold to the Huasco, Tocopilla, Mejillones and Ventanas thermoelectric plants in north and central Chile, and exported to China, India, Brazil and other countries.

The steady decline in international coal prices affected the company’s plans, which temporarily decreased production and cut its payroll.

Lengas (Nothofagus pumilio) and Antarctic Beech (Nothofagus antarctica) seen on Riesco Island, in Chile’s Patagonia wilderness region, which is threatened by coal mining. Credit: Claudio Magallanes Velazco/Riesco Island Alert

Lengas (Nothofagus pumilio) and Antarctic Beech (Nothofagus antarctica) seen on Riesco Island, in Chile’s Patagonia wilderness region, which is threatened by coal mining. Credit: Claudio Magallanes Velazco/Riesco Island Alert

To open the Invierno mine, 400 hectares of native woodland were cut, a lake was dried up, and the functioning of the water in the surrounding area was modified. It currently has three sterile waste dumps, each one 60 mts high.

“Everything is becoming polluted. Some 1,500 hectares of land will be directly affected, including 500 metres of open pit which has already reached 100 of the projected 180 metres in depth,” said Ana Stipicic, spokesperson for the social and ecological movement Riesco Island Alert.

“The last report on pollution we made was on the impact on the Chorrillo Invierno Dos River. Now we learned that the Cañadón and Chorrillo Los Coipos Rivers were also polluted. There are settling ponds to remove matter from wastewater, but they don’t work,” the activist, who is Gregor’s sister, told IPS in Santiago.

She said that the rivers affected a wetland and “along the shore there are enormous pieces of coal. The mining port and the crushers that crush the mineral throw charcoal into the sea. Nobody has studied this.”

Ana Stipicic said particles in the air “fall on the surrounding grazing lands, woods and water bodies where there is rich fauna.” She added that the mining activity “has caused huge movements of wildlife, from woodpeckers to huemul deer and capybara.”

Biologist Juan Capella, from the Yubarta Foundation, complained that the shipping of coal through the Otway gulf, the Gerónimo channel and the Magellan Strait has affected humpback whales and dolphins that live in this area, where the Francisco Coloane Marine Park is located.

“There are reported cases of collisions of cargo ships with whales. The more coal that is transported and the heavier the ship traffic in such a narrow channel, the higher the chances of collisions and deaths of whales. The latest recorded case occurred in March, when a ship ran into a whale and killed it,” he told IPS from Punta Arenas, capital of Magallanes province.

Map of the location of coal mines on Riesco Island at the southern tip of Chile. Credit: Riesco Island Alert

Map of the location of coal mines on Riesco Island at the southern tip of Chile. Credit: Riesco Island Alert

Climate specialist Nicolás Butorovic said that during the Environmental Impact Assessment of the Invierno mine, “we proved that the modelling was wrong with respect to settleable particulate matter. They predicted 60 micrograms per day while the stations measured up to 158.”

The company had stated that it would not use dynamite explosions since they sought sustainable mining. It also claimed that winds in the area averaged 39 kilometres per hour when in fact they can reach up to more than 180 kilometres per hour.

Fernando Dougnac, head of the organisation of environmentalist lawyers FIMA, filed legal action which brought the explosions to a halt.

Dougnac told IPS in Santiago that in his legal presentation he included veterinary records from the year 1998, showing that during breeding season, sheep are highly susceptible to noise, to the point that workers are asked to stay out of the areas where the sheep are mating or raising young.

“We expect the explosions to be stopped during those months. The Invierno mine needs to cut operating costs, so they will insist on making detonations the four times a week that they are allowed,” said Ana Stipicic.

The national director of Greenpeace Chile, Matías Asún, told IPS that the mining company “deceived the population and disregarded the regulations to later be allowed to use dynamite explosions.”

In his opinion “Chile’s environmental authority operates on the basis of economic and commercial criteria. Their official discourse is not the protection of the environment but the protection of investment and the environment.”

He said “it is anachronistic that in a country where renewable energies are experiencing remarkable growth at a global scale and coal is in decline, on top of the many territorial conflicts generated, a subsidy is granted violating de facto environmental regulations and the commitments that the own company made to the community.”

“Riesco Island is not sustainable without cutting costs with environmental impacts,” he stressed.

Independent legislator for Magallanes province Gabriel Boric told IPS that the company presented the coal mining project in a fragmented manner to obtain approval.

“That a project be allowed to be presented by parts, so that its environmental impact cannot be assessed integrally, is one of the main weaknesses of our environmental protection system, which must be remedied by means of reforms,” he said.

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Battle of the Desert (II): A ‘Great Green Wall for Africa’http://www.ipsnews.net/2016/11/battle-of-the-desert-ii-a-great-green-wall-for-africa/?utm_source=rss&utm_medium=rss&utm_campaign=battle-of-the-desert-ii-a-great-green-wall-for-africa http://www.ipsnews.net/2016/11/battle-of-the-desert-ii-a-great-green-wall-for-africa/#comments Sun, 20 Nov 2016 07:39:46 +0000 Baher Kamal http://www.ipsnews.net/?p=147849 Tera, Bajirga, Niger - Women at work for preparing the field for the next rainy season by escaving mid-moon dams to save water. Credit: ©FAO/Giulio Napolitano

Tera, Bajirga, Niger - Women at work for preparing the field for the next rainy season by escaving mid-moon dams to save water. Credit: ©FAO/Giulio Napolitano

By Baher Kamal
ROME, Nov 20 2016 (IPS)

Desertification, land degradation, drought, climate change, food insecurity, poverty, loss of biodiversity, forced migration and conflicts, are some of the key challenges facing Africa—a giant continent home to 1,2 billion people living in 54 countries.

And they are huge challenges indeed, in particular affecting Africa’s vulnerable drylands. Just think that the drylands of North Africa, Sahel and Horn of Africa extend over 1.6 billion hectares home to about 500 million people, i.e. slightly less than half of the entire population of the continent.

Nora Berrahmouni

Nora Berrahmouni

Such rapidly deteriorating situation, which has been exacerbated by climate change and its growing impact, has mobilised more than 20 African countries around the Sahara (North, East and West), international organisations, research institutes, civil society and grassroots organisations, to build together what has been called: The Great Green Wall for the Sahara and the Sahel Initiative (GGWSSI) or simply Africa’s Great Green Wall (GGW).

On this, Nora Berrahmouni, Forestry Officer (Drylands) at the Food and Agriculture Organization of the United Nations (FAO), tells IPS in an interview that the GGW core area (focus area for intervention identified) is about 780 million hectares.

What is this Wall all about? “Africa’s Great Green Wall, the so-called “Great Green Wall for the Sahara and the Sahel Initiative (GGWSSI)” is a Pan African initiative, established and endorsed by the African Union in 2007 and it is Africa’s flagship initiative to combat the effects of climate change, desertification, food insecurity and poverty.”"Drylands of North Africa, Sahel and Horn of Africa extend over 1.6 billion hectares home to about 500 million people"-- FAO

Here, Berrahmouni clarifies that the so-called Great Green Wall initiative “is not a line or a wall of trees across the desert. The “Wall” is a metaphor to express solidarity between countries and partners, a mosaic of sustainable land management and restoration interventions.”

Regardless of its name, the plan aims at promoting:

• Long-term solutions to the pressing challenges of desertification, land degradation, drought and climate change,

• Integrated interventions tackling the multiple challenges affecting the lives of millions of people in the Sahel and Sahara, including restoration of production systems, development of rural production and sustainable development hubs,

• And an urgent call to development actors and policy makers to invest more on long term solutions for the sustainable development of drylands in the Sahel and Sahara.

Asked about specific examples, these are “sustainable management of natural resources, including soils, water, forests, rangelands; promotion of sustainable rural production systems in agriculture, pastoralism and forestry, as well as sustainable production, processing and marketing of agricultural products and forest goods and services, says Berrahmouni.

Other examples include the diversification of economic activities through rural production centres, to stimulate job creation and offer income generation activities, in particular for youth and women, and to spread knowledge exchange about the causes of desertification and the best ways to combat and prevent it.

FAO is a key partner of the African Union and of its member states in implementing this initiative. Indeed, for FAO, this is a “game changer in addressing poverty eradication, ending hunger and boosting food and nutrition security in the continent,” the Algerian expert explains.

Djibo, Burkina Faso - Planting seeds and seedlings. Credit: ©FAO/Giulio Napolitano

Djibo, Burkina Faso – Planting seeds and seedlings. Credit: ©FAO/Giulio Napolitano

From 2010 to 2013, FAO focused on supporting the African Union Commission and 13 member countries to put in place an enabling environment for the implementation of the GGWSSI. These countries are: Algeria, Burkina Faso, Chad, Djibouti, Egypt, Ethiopia, Gambia, Mali, Mauritania, Niger, Nigeria, Senegal, and Sudan.

With funding from the FAO Technical Cooperation Programme and the European Union (EU), this leading UN body in the field of food and agriculture has developed and implemented successfully two complementary projects.

These projects have lead to: the preparation and validation of national action plans and strategies for the implementation of the initiative in 13 countries; the development and validation of Regional Harmonized Strategy, ensuring that all stakeholders involved in the implementation of work towards a common and shared vision, objectives and results, and to put in place a community of practice for the effective implementation of Africa’s Great Green Wall.

Berrahmouni tells IPS that since July 2014 and with the support of European Union and the African, Caribbean and Pacific Group of States (ACP) Secretariat, FAO is implementing with partners a project called “Action Against Desertification” in support of the implementation of the Great Green Wall in 6 countries (Burkina Faso, Ethiopia, the Gambia, Niger, Nigeria, Senegal) and South-South Cooperation in ACP countries.

On November 16, FAO presented to the United Nations Framework Convention on Climate Change (UNFCCC) in Marrakech, Morocco (7-18 November), a groundbreaking map of restoration opportunities along Africa’s Great Green Wall. at the UN climate change conference.

Announcing that there are 10 million hectares a year in need of restoration along the Great Green Wall, it informs that restoration needs along Africa’s drylands have been mapped and quantified for the first time.

The map is based on collection and analysis of crucial land-use information to boost action in Africa’s Great Green Wall to increase the resilience of people and landscapes to climate change.

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Rural Job Creation Holds the Key to Development and Food-Security Goalshttp://www.ipsnews.net/2016/11/rural-job-creation-holds-the-key-to-development-and-food-security-goals/?utm_source=rss&utm_medium=rss&utm_campaign=rural-job-creation-holds-the-key-to-development-and-food-security-goals http://www.ipsnews.net/2016/11/rural-job-creation-holds-the-key-to-development-and-food-security-goals/#comments Fri, 18 Nov 2016 21:45:00 +0000 Nteranya Sanginga http://www.ipsnews.net/?p=147847 Nteranya Sanginga is the Director General of the International Institute of Tropical Agriculture.]]> Nteranya Sanginga, Director General of the International Institute of Tropical Agriculture (IITA). Courtesy of IITA

Nteranya Sanginga, Director General of the International Institute of Tropical Agriculture (IITA). Courtesy of IITA

By Nteranya Sanginga
IBADAN, Nigeria, Nov 18 2016 (IPS)

Harvesting the benefits of core agricultural research, which often bears on improved crop varieties and plant diseases, increasingly depends on the social and economic conditions into which its seeds are sown.

It is a sign of the times that Kanayo F. Nwanze, the president of the International Fund for Agricultural Development who started off as a cassava entomologist when ITTA posted him to Congo in the 1970s, was recently hailed for his efforts to create African billionaires.

That happened when youth from the International Institute of Tropical Agriculture’s Agripreneur program gave Nwanze special lapel pins after his guest speech at our golden jubilee celebration kickoff.

Our institute, IITA, has evolved with the times. I trained in microbial ecology, yet while agronomy research –remains very important, it is initiatives like our Youth Agripreneur program that underscore how we are paying more and more attention to the need to boost youth employment, especially in Africa.

Creating decent employment opportunities, especially rural employment opportunities, is the critical challenge of our time in Africa. It is the lynchpin of any possible success in the noble goals of hunger and poverty eradication.

The most obvious reason for that is demographic: Africa’s population is set to roughly double to 2.5 billion by 2050. Many of them, perhaps the majority, have not been born. Income opportunities and healthy affordable food will be in unprecedented demand. Today’s youth play a huge role in making that possible.

While Africa’s cities are expected to grow, even that will depend on decent rural jobs being created. Agriculture is not only called upon to increase food output and productivity, but to create jobs and even bring in the best and brightest.

The prospects are, in theory, quite good. The world is increasingly turning to sustainable agriculture, and research shows that diversified farming systems are more challenging – experientially, cognitively and intellectually – which both cushions the drudgery and spurs innovation to reduce it.

Yet the challenge, as the population projections show, is formidable. Growing by around 300 million every decade means all sectors need a giant and focused developmental push. Perceiving agriculture as the rural sector from which one escapes will backfire.

That’s one of the reasons why entomologist-turned research administrator Dr Nwanze talks about the need to foster opportunities for youth.

The IITA Youth Agripreneur program has ambitious aims. It has expanded quickly around Nigeria and other African countries.

At the same time, IITA is partnering with IFAD and the African Development Bank for the Empowering Novel Agribusiness-Led Employment for Youth in African Agriculture Program, dubbed ENABLE. The goal is to create 8 million agribusiness jobs within five years for youth.

How can IITA’s research contribute?

Take our project on Sustainable Weed Management Technologies for Cassava Systems in Nigeria. As its name suggests, this is very much geared to primary agricultural work. But it is not simply about having more cassava but about having enough extra cassava, and having it consistently, to support the use of this African staple food in flour.

As such it fits into other IFAD projects aimed at boosting the cassava flour value chain in the region. Once the weeds have been sorted out, this initiative is designed to require large gains in food processing capacity.

IITA researchers have managed to bake bread using 40 percent cassava in wheat flour, so the potential for this initiative is very large. Notice that it immediately suggests a role for bakers, confectionary products and others. That means more jobs.

This relates back to Dr. Nwanze’s time as an IITA field researcher, as he was involved in a successful effort to combat and control the cassava mealy bug that saved the continent millions of dollars.

One of the big challenges for scientists today is to make research contribute to growth. Breakthroughs often lead to solutions of food-system problems and thus relieve hunger and food and nutrition insecurity. IITA showed that by developing two new maize hybrids that deliver higher levels of vitamin A and improve child nutrition.

But we can go further, steering these breakthroughs into veritable engines of growth.

To be sure, this requires improvements on many fronts, such as better freight transportation networks. But such investments pay themselves off when they serve a common goal. Africa’s need and duty is to make sure that agriculture is ready to deliver the goods for such a take-off.

All this by the way will not only boost Africa’s agricultural productivity, which is lagging, but will boost the productivity of research itself, leading to higher returns and, one hopes, attractive jobs with higher incomes and better facilities. That’s important for future microbial ecologists and cassava entomologists!

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Inequality and Its Discontentshttp://www.ipsnews.net/2016/11/inequality-and-its-discontents/?utm_source=rss&utm_medium=rss&utm_campaign=inequality-and-its-discontents http://www.ipsnews.net/2016/11/inequality-and-its-discontents/#comments Thu, 17 Nov 2016 16:08:27 +0000 Jomo Kwame Sundaram http://www.ipsnews.net/?p=147831 Jomo Kwame Sundaram was an Assistant Secretary-General for Economic and Social Development in the United Nations system during 2005-2015, and received the 2007 Wassily Leontief Prize for Advancing the Frontiers of Economic Thought. ]]> Although class has not declined in significance, by shaping the institutional context, political geography has become a key determinant of income. Credit: IPS

Although class has not declined in significance, by shaping the institutional context, political geography has become a key determinant of income. Credit: IPS

By Jomo Kwame Sundaram
KUALA LUMPUR, Malaysia, Nov 17 2016 (IPS)

Global income inequality among different regions began to increase about five centuries ago, before accelerating about two centuries ago, according to the great economic historian Angus Maddison. After the brief reversal during the ‘Golden Age’ quarter century after the Second World War, higher commodity prices in the decade until 2014, despite protracted slowdowns in most rich countries following the 2008 financial crisis, reduced international disparities between North and South.

Before the Industrial Revolution, inequalities among regions were relatively small, while within-‘country’ inequalities accounted for most of overall global income inequality. But inter-country income inequalities now account for about two-thirds of world inequality, with intra-country inequality accounting for a third.

Short 20th century
National income distribution trends do not necessarily follow those for global income inequality. National level inequality in 22 developed economies grew up to the second decade of the 20th century, with inequality declining thereafter until the 1970s. The trend then reversed again with the market fundamentalist counter-revolution and changing role of the state in recent decades.

The general trend for these countries is quite clear, but does not hold for all other countries. For example, many developing countries fared badly in the 1920s and 1930s as primary commodity prices fell, especially during the Great Depression.

The late historian Eric Hobsbawm famously described the period from the Bolshevik Revolution in 1917 to the collapse of the Soviet Union in 1991, as the ‘short twentieth century’. Other pundits identify the end of the First World War, or the creation of the ILO in 1919, as an alternative starting point for Karl Polanyi’s ‘second movement’.

For many, the ascendance of Margaret Thatcher and Ronald Reagan led the ‘neo-liberal’ counter-revolution against the post-World War Two ‘Golden Age’ marked by decolonization, Keynesianism, the welfare state, agrarian reforms and rapid employment expansion.

Washington Consensus
The ‘Washington Consensus’ from the early 1980s – shared by different branches of the US government and the Bretton Woods institutions located in the American capital – brought an end to earlier policy interventions associated with Keynesian and development economics.

The breakdown of the international monetary system and other developments of the 1970s led to ‘stagflation’ – economic stagnation despite high inflation — in much of the West while growth accelerated in other regions, notably East Asia. The US Fed raised interest rates sharply from 1980, inducing an international recession, and eventually, fiscal and sovereign debt crises in some developing countries and ‘communist’ economies. High debt and the Volcker-induced interest rate spike forced many governments to pursue macro-financial stabilization policies to defeat inflation besides microeconomic structural adjustment policies.

But the so-called Washington Consensus was not really about market liberalization, as little was done to check, let alone undermine private oligopolistic and oligopsonistic trends. Instead, despite the market rhetoric, neo-liberalism is really about strengthening property rights and capturing rents.

This involved a shift away from public authority and coordination, redefining the role of the state and enhancing private power. Good governance in the new order means upholding the rule of law, especially strengthening property rights and related privileges and entitlements. To secure political support, it appeals to all as consumers, and to all asset-owners, including petty ones and rentiers seeking to maximize net income flows by minimizing rent-seeking costs. Not surprisingly then, recent trends in the functional distribution of income reflect a declining share for labour despite rising labour productivity.

Labour solidarity?
This disconnect between labour productivity and income is not unfamiliar to developing economies with high unemployment and underemployment. In such labour markets, characterized by ‘unlimited supplies of labour’ associated with economics laureate Arthur Lewis, productivity gains did not translate into higher wages, or a ‘producer surplus’, but instead lowered prices, contributing to the ‘consumer surplus’. This contrasts sharply with strong labour market institutions where wages rise with productivity.

Growing wealth concentration in recent decades reflects enhanced rentier power in most economic sectors and activities as well as the ascendance and globalization of finance in recent decades. Rentier income flows from legally sanctioned monopolies associated with intellectual property rights have grown greatly in recent years, increasingly capturing productivity gains at the expense of labour.

Although class has not declined in significance, by shaping the institutional context, political geography has become a key determinant of income. This not only helps explain the continuing strong economic incentive for international migration, but also the growing barriers to such movement, often supported by those who feel threatened about losing their privileges.

Not surprisingly, international labour solidarity has become much more difficult, while foreign advocacy of labour rights or the environment is treated with suspicion as self-interested, or even as protection by another name.

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Phosphate Mining Firms Set Sights on Southern Africa’s Sea Floorhttp://www.ipsnews.net/2016/11/phosphate-mining-firms-set-sights-on-southern-africas-sea-floor/?utm_source=rss&utm_medium=rss&utm_campaign=phosphate-mining-firms-set-sights-on-southern-africas-sea-floor http://www.ipsnews.net/2016/11/phosphate-mining-firms-set-sights-on-southern-africas-sea-floor/#comments Thu, 17 Nov 2016 11:23:49 +0000 Mark Olalde http://www.ipsnews.net/?p=147811 President Jacob Zuma answers questions at the National Council of Provinces on Oct. 25, 2016. During the session, he said Operation Phakisa helped drive investments worth R17 billion toward ocean-based aspects of the economy since 2014. Courtesy: Republic of South Africa

President Jacob Zuma answers questions at the National Council of Provinces on Oct. 25, 2016. During the session, he said Operation Phakisa helped drive investments worth R17 billion toward ocean-based aspects of the economy since 2014. Courtesy: Republic of South Africa

By Mark Olalde
JOHANNESBURG, Nov 17 2016 (IPS)

A persistent fear of diminishing phosphorus reserves has pushed mining companies to search far and wide for new sources. Companies identified phosphate deposits on the ocean floor and are fighting for mining rights around the world.

Countries in southern Africa have the potential to set an international precedent by allowing the first offshore mining operations. South Africa specifically is one of the first countries on the continent to begin legislating its marine economy to promote sustainable development, and questions surround mining’s place in this new economy.While the fishing and coastal tourism industries account for slightly more than 1.4 billion dollars of GDP, the potential economic benefits from marine mining remain unclear.

From April 2007 to August 2008, the price of phosphate, a necessary ingredient in fertilizer, increased nearly 950 percent, in part due to the idea that phosphate production had peaked and would begin diminishing. Before prices came back down, prospectors had already begun looking for deep sea phosphate reserves around the world.

Since then, the fledgling seabed phosphate industry has found minimal success. While several operations are proposed in the Pacific islands, New Zealand and Mexico rejected attempts at offshore phosphate mining in their territory.

This means southern African reserves – created in part by currents carrying phosphate-rich water from Antarctica – are the new center of debate.

Namibia owns identified seabed phosphate deposits, and the country has recently flip-flopped about whether to allow mining. A moratorium was in place since 2013, but in September the environmental minister made the controversial decision to grant the necessary licenses. Since then, public outcry forced him to set those aside.

Most attempts at seabed phosphate mining have sputtered in the face of moratoriums and other roadblocks. Graphic courtesy of Centre for Environmental Rights

Most attempts at seabed phosphate mining have sputtered in the face of moratoriums and other roadblocks. Graphic courtesy of Centre for Environmental Rights

The former general project manager of Namibian Marine Phosphate (Pty) Ltd, a company that applied to mine in Namibia, told IPS that environmental groups and fisheries proved to be a loud and organised opposition. He predicted the debate in South Africa would be just as difficult for mining companies to win with no precedent for such mining.

Adnan Awad, director of the non-profit International Ocean Institute’s African region, said, “There is generally this anticipation that South African processes for mining and for the policy around some of these activities are setting a bit of a precedent and a bit of a model for how it can be pursued in other areas.”

Three companies, Green Flash Trading 251 (Pty) Ltd, Green Flash 257 (Pty) Ltd and Diamond Fields International Ltd., hold prospecting rights covering about 150,000 square kilometers, roughly 10 percent, of the country’s marine exclusive economic zone.

Diamond Fields International’s prospecting right along 47,468 square kilometres of the Indian Ocean shares space with areas of oil exploration and production. Source: Diamond Fields International Ltd. background information document

Diamond Fields International’s prospecting right along 47,468 square kilometres of the Indian Ocean shares space with areas of oil exploration and production. Source: Diamond Fields International Ltd. background information document

The law firm Steyn Kinnear Inc. represents both Green Flash 251 and Green Flash 257. “Currently it does not seem as if there is going to be any progress, and there is definitely not going to be any mining right application,” Wynand Venter, an attorney at the firm, said, calling the project “uneconomical.”

Venter said the Green Flash companies received drill samples, which showed current prices could not sustain seabed phosphate mining.

This leaves Diamond Fields as the only remaining player in South African waters. The company announced in a January 2014 press release that it received a 47,468 square kilometer prospecting right to search for phosphate.

According to information the company published summarising its environmental management plan, prospecting would use seismic testing to determine the benthic, or seafloor, geology. If mining commenced, it would take place on the seafloor between 180 and 500 meters below the surface.

“A vital and indisputable link exists between phosphate rock and world food supply,” the company stated, citing dwindling phosphate reserves.

Diamond Fields did not respond to repeated requests for comment.

Environmentalists argue that not only would phosphate mining destroy marine ecosystems, but it would also lead to continued overuse of fertilizers and associated pollution. They call for increased research into phosphate recapture technology instead of mining.

“We could actually be solving the problem of too much phosphates in our water and recapturing it. Instead we’re going to destroy our ocean ecosystems,” John Duncan of WWF-SA said.

The act of offshore mining requires a vessel called a trailing suction hopper dredger, which takes up seafloor sediment and sends waste back into the water column.

A southern right whale swims off the coast of the Western Cape province near Hermanus, a town renowned for its whale watching. South Africa’s Department of Mineral Resources granted three prospecting rights covering about 150,000 square kilometers, or 10 percent, of the country’s exclusive economic zone. Credit: Mark Olalde/IPS

A southern right whale swims off the coast of the Western Cape province near Hermanus, a town renowned for its whale watching. South Africa’s Department of Mineral Resources granted three prospecting rights covering about 150,000 square kilometers, or 10 percent, of the country’s exclusive economic zone. Credit: Mark Olalde/IPS

“It amounts to a kind of bulldozer that operates on the seabed and excavates sediment down to a depth of two or three meters. Where it operates, it’s like opencast mining on land. It removes the entire substrate. That substrate become unavailable to fisheries for many years, if not forever,” Johann Augustyn, secretary of the South African Deep-Sea Trawling Industry Association, said.

In addition to direct habitat destruction, environmentalists argue the plume of sediment released into the ocean could spread out to smother additional areas and harm wildlife.

Mining opponents also worry offshore mining would negatively impact food production and economic growth.

Several thousand subsistence farmers live along South Africa’s coast, and the country’s large-scale fishing industry produces around 600,000 metric tonnes of catch per year.

“[Mining] may lead to large areas becoming deserts for the fish populations that were there. If they don’t die off, they won’t find food there, and they’ll probably migrate out of those areas,” Augustyn said.

While the fishing and coastal tourism industries account for slightly more than 1.4 billion dollars of GDP, the potential economic benefits from marine mining remain unclear. There are no published estimates for job creation, but Namibian Marine Phosphate’s proposal said it would lead to 176 new jobs, not all of them local.

“The benefits are not coming back to the greater South African community,” Awad said. “African countries generally have been quite poor at negotiating the benefits through multinational companies’ exploitation of coastal resources.”

South Africa is one of only three African nations – along with Namibia and Seychelles – implementing marine spatial planning. This growing movement toward organised marine economies balances competing uses such as oil exploration, marine protected areas and fisheries. Earlier this year, the Department of Environmental Affairs, DEA, published a draft Marine Spatial Planning Bill, the first step toward creating marine-specific legislation.

According to government predictions, a properly managed marine economy could add more than 12.5 billion dollars to South Africa’s GDP by 2033. What part mining will play in that remains to be seen.

“Internationally the off-shore exploration for hard minerals is on the increase and it is to be expected that the exploitation of South Africa’s non-living marine resources will also increase,” the DEA’s draft framework said.

Neither the Department of Mineral Resources nor the DEA responded to repeated requests for comment.

Mark Olalde’s mining investigations are financially supported by the Fund for Investigative Journalism, the Fund for Environmental Journalism and the Pulitzer Center on Crisis Reporting. Additional support for this story was provided by #MineAlert and Code for Africa.

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SDGs: Making the Universal Agenda Truly Universalhttp://www.ipsnews.net/2016/11/sdgs-making-the-universal-agenda-truly-universal/?utm_source=rss&utm_medium=rss&utm_campaign=sdgs-making-the-universal-agenda-truly-universal http://www.ipsnews.net/2016/11/sdgs-making-the-universal-agenda-truly-universal/#comments Thu, 17 Nov 2016 09:22:34 +0000 Paloma Duran http://www.ipsnews.net/?p=147808

Paloma Durán is Director of the Sustainable Development Goals Fund (SDG Fund).

By Paloma Durán
NEW YORK, Nov 17 2016 (IPS)

One of the key features of the 2030 Agenda which the United Nations and member states identified in the lead up to the SDG agreement was the principle of universality.

Courtesy of Paloma Durán/UNDP

Courtesy of Paloma Durán/UNDP

After managing to get the pivotal agreement on the global framework for the new Sustainable Development Goals (SDGs) agreed upon last year, it is now critical to continue this momentum and understand the opportunities and challenges it creates for the private sector as partners in sustainable development efforts.

Building on our interest to tip the scales and generate greater private sector engagement, the UN Sustainable Development Goals Fund (SDG Fund) in collaboration with its Private Sector Advisory Group and the Global Compact examined these questions through a new report, Universality and the SDGs: A Business Perspective. The report, launched last week highlights varied perspectives from both large and small companies working to understand the commonality of the new development agenda.

Universality in this context is defined by the UN as “applicable to all countries, while taking into account different national realities, capacities and levels of development that respect national policies and principles.” Thus the notion of Universality also envisions that everyone has a role to play in development and poverty alleviation efforts framing the development agenda.

The business community has, and continues to be deemed an important partner for us, serving as a critical economic engine and multiplier to catalyze economic and social development programs in our 23 joint programs around the world. The task at hand is to now reinforce this commitment and ensure that companies of all sizes and sectors are properly aware of the new SDGs.

To this end, the outcomes of the report were based on a year-long series of workshops and dialogues and reflected input from over 100 firms across a variety of regions and industry sectors. These findings stemming from countless interviews and in-depth questions were not unexpected and mainly in-line with our experience at the SDG Fund. We found that companies were keen to address the new set of goals which they viewed as critical to their core business activities, but many firms still struggled to fully understand the depth of the goals.

The report also mirrored some of our unique experience working with the private sector. For example, while many firms are already working in areas linked to the SDGs, this work is not always associated with the same “UN” or development language. In fact, many companies articulate the “global goals” using other mechanisms, including using other metrics or reporting based on environmental, social and corporate governance (ESG) indicators or other industry standards.

The new report offers some other useful findings. First, companies both small and large are increasingly aware of the concept of the SDGs, but many firms did not fully grasp the intricacies of the SDGs in context of their work or internal operations.

In addition, although many companies find a clear and added value to framing sustainability initiatives through the SDGs which provide a unified set of globally accepted principles–many companies are still accustomed to working within the confines of their philanthropic and CSR programs.

Despite a strong willingness to embrace the SDGs, many companies are exploring how to best integrate the SDGs into their work. But perhaps the most compelling case for the SDG Fund’s continued efforts to engage companies in a “co-design, co-invest and co-implement policy” is that the private sector remains eager to work on global challenges.

Companies continue to express their desire to be brought into the process to build innovative and robust multi-stakeholder partnerships at the local level and very often with UN partners.

Undoubtedly, with the one-year anniversary of the 2030 agenda approaching in January, this new report reminds us that the UN can and should play a more active role in educating and informing companies on the “universal” dimensions of the SDGs.

It is also important to continue to translate the new agenda into language and simplified reporting metrics that are palatable for businesses of all sizes – all of which means greater education on how companies can integrate the SDGs in their value chains, disseminate accessible resources and tools to promote learning, and support implementation and alignment across sectors.

In the end, the universality principle embedded in the SDGs provides a clear invitation for action and alignment to advance the new development agenda.

We hope to continue to raise public awareness and foster the much needed dialogue and advocacy required to encourage business to support the SDGs. In addition, our report highlights additional information on the ongoing work of the SDG Fund, including Private Sector Advisory Group case studies that continue to build the case for greater engagement in development, especially across sectors and with welcome actors like the private sector.

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Thriving Rural Communities Is a Recipe for Healthy Citieshttp://www.ipsnews.net/2016/11/thriving-rural-communities-is-a-recipe-for-healthy-cities/?utm_source=rss&utm_medium=rss&utm_campaign=thriving-rural-communities-is-a-recipe-for-healthy-cities http://www.ipsnews.net/2016/11/thriving-rural-communities-is-a-recipe-for-healthy-cities/#comments Thu, 17 Nov 2016 07:00:24 +0000 Josefina Stubbs and David Lewis http://www.ipsnews.net/?p=147796 Josefina Stubbs is candidate for President of the International Fund for Agricultural Development (IFAD). She has served in IFAD as Associate Vice-President of Strategy and Knowledge from 2014 - 2016 and as Director of Latin America and the Caribbean from 2008 - 2014.

David Lewis is Professor of Social Policy and Development at the London School of Economics and Political Science. His research interests include international development policy and rural development.]]>
Karachi's slums interfere with planning. Credit: Muhammad Arshad/IPS

Karachi's slums interfere with planning. Credit: Muhammad Arshad/IPS

By Josefina Stubbs and David Lewis
SANTO DOMINGO, Dominican Republic and LONDON, Nov 17 2016 (IPS)

As the dust has settled on Habitat III and the summit in Quito, Ecuador, we now have a clear vision and a concrete road map for how to transform our cities into inclusive, safer and more productive environments. The New Urban Agenda comes at a propitious time. Urbanization is growing at a fast pace, particularly in developing countries, where the urban population is expected to double by 2050. In South Asia alone, the urban population grew by 130 million between 2001 and 2011, according to recent World Bank study. Another 250 million are expected to join them by 2030.

A woman at a public water tank in a Bangalore slum. Credit: Malini Shankar/IPS

A woman at a public water tank in a Bangalore slum. Credit: Malini Shankar/IPS

But to lead to lasting change and prosperity for all, investments in cities must come hand in hand with massive transformation of rural areas to bring them up to par, if not to make them more attractive than cities. The exponential growth of cities is by and large the result of a growing divide between urban and rural realities, where the endemic lack of basic services and jobs drive rural people away from their rural communities and into cities. In the rush to engage with the challenges of urbanization we cannot afford to lose sight of the rural.

Rural communities are no longer isolated from the rest of the world. Young people all have smartphones with an Internet connection. They know that there are places that offer better services, better jobs and a better life than the one they can hope for back home.

As young women and men leave rural areas in large numbers, they leave the very communities that they should be strengthening and shaping, abandoning their friends, families and culture. They migrate to larger cities in search of work and of a better future, but without formal education or skills, many are confined to the fringes of the society to which they aspire. The exodus of young people threatens the fabric of rural societies and exacerbates the problems the New Urban Agenda is designed to tackle: precarious and insalubrious housing, joblessness, insecurity and overpopulation.

Kisenyi slum, in Uganda’s capital Kampala is believed to be home to a large portion of the country’s almost 12,000 Somali immigrants. Credit: Amy Fallon/IPS

Kisenyi slum, in Uganda’s capital Kampala is believed to be home to a large portion of the country’s almost 12,000 Somali immigrants. Credit: Amy Fallon/IPS

People migrate when their choices at home are limited. By investing in people’s skills and knowledge, rural business development, technical assistance and by providing financial support, connectivity, quality roads, health services, electricity and connectivity, we can widen people’s options and reduce the pressure on urban areas. I have seen this happen in countries where the creation of a decentralized university network increased the number of highly educated youth in rural communities and contributed to transforming once abandoned rural centers into bustling rural towns. I have seen this happen in communities where small investments in business development and access to financial services allowed rural entrepreneurs to start viable business activities, generating income for their families, jobs for their neighbors and services for their community.

There is another reason why thriving rural areas are essential to the prosperity of urban centers. Smallholder farmers and fisher folk are the primary producers of food in most of the developing world. In Asia, Africa and in the Caribbean, they produce up to 90 per cent of the food people eat every day. As urban populations grow, there will be a need to step up the quantity and the quality of food produced by rural communities. Fresh produce will need to get to the markets faster and in better conditions, and farmers will have to be paid fairer prices for their products to be able to make investments to improve production, safeguard the environment, and build resilience to a changing climate.

Children in a slum in Peru.  Courtesy of La República/IPS

Children in a slum in Peru. Courtesy of La República/IPS

Rural and urban communities are highly dependent on each other for sustainable growth. We live in one, interconnected world where inequalities between people, regions and countries drive more and more people out of their communities and into cities in search of a better life. By improving the living conditions of poor rural people and giving them opportunities for growth, we can reduce the pressure on large metropolises and create more balanced, prosperous societies.

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Why Kenya’s Engagement with the UN Is a Big Dealhttp://www.ipsnews.net/2016/11/why-kenyas-engagement-with-the-un-is-a-big-deal/?utm_source=rss&utm_medium=rss&utm_campaign=why-kenyas-engagement-with-the-un-is-a-big-deal http://www.ipsnews.net/2016/11/why-kenyas-engagement-with-the-un-is-a-big-deal/#comments Wed, 16 Nov 2016 17:27:41 +0000 Siddharth Chatterjee http://www.ipsnews.net/?p=147799 Siddharth Chatterjee is the UN Resident Coordinator and UNDP Resident Representative in Kenya.]]> The President meets Mrs Jumwa Kabibu who after 50 years of misery underwent a successful UN supported fistula surgery. Photo Credit: Newton/UNIC

The President meets Mrs Jumwa Kabibu who after 50 years of misery underwent a successful UN supported fistula surgery. Photo Credit: Newton/UNIC

By Siddharth Chatterjee
NAIROBI, Kenya, Nov 16 2016 (IPS)

President Uhuru Kenyatta warmly welcomed dozens of U.N Agencies, development partners and senior Government officials to the State House on 02 November 2016 to discuss the joint development plan from 2014 – 2018.

He is perhaps the only head of state in Africa to take on this responsibility personally and believes in the transformational power of the Government-UN partnership to address national priorities for sustainable development. (Speech/audio)

The United Nations Development Assistance Framework (UNDAF) is a critical document that guides government and U.N, partnership, ensuring the UN system is fit for purpose and contributes effectively to national development priorities.

The framework is nurturing a partnership grounded in dialogue and learning, leading to concrete action and progress. Important progress has been made in areas like HIV/AIDS, clean water, energy, food security, and the environment during the past 2 years of this UNDAF(PDF document).

“I am impressed by the progress achieved since our last meeting in August, 2015. It is truly encouraging to see the Vision turn to Action,” he said during this year’s review.

He was alluding to progress resulting from a joint Government-UN approach to addressing issues such as poverty and various vulnerabilities; progress coming from commitment to joining up efforts and pooling respective expertise and resources to make an impact on Kenyans.

Testimonials abound regarding this impact. (Watch UNDAF video). They include a 70 year-old lady who received treatment after suffering fistula for 50 years; matatu (public transport vehicle) owners who have improved the terms and conditions of matatu drivers and conductors as per international labour and a women’s community group bordering the Amboseli National Park who are part of conservation efforts through livelihood programmes.

The UNDAF has leveraged the devolved system of government with tremendous results in some counties. The innovative Governments of Kenya-Ethiopia Cross-border Program on Peace and Socio-economic Development supported by the UN has potential of being replicated in other parts of the world.

These are the kind of stories coming out of the UNDAF review process, whose emphasis is on accountability for results. The stories tell of impact across most of the major pillars of the country’s Vision 2030, which also overlap with UN priorities such as peace, security, and poverty reduction.

The UNDAF in Kenya is recognized by the UN Development Group as a best practice in creating an alliance shaped by common interests and shared purpose, and bounded by clear principles that encourage autonomy and synergy.

The Framework was developed according to UN Delivering as One principles (DaO) aimed at ensuring Government ownership, demonstrated through UNDAF’s full alignment to Government priorities and planning cycles, and internal coherence among UN agencies and programmes operating in Kenya.

The partners have also been able to jointly recognize and agree on the national, regional and global realities that should inform their interventions. For instance, both the Government of Kenya and the UN are aware of Kenya’s looming youth bulge with 1 million young people joining the work force annually and the need to turn it into a demographic dividend, lest it turn into a demographic disaster.

“We must focus on our youth and provide alternatives to crime, violent extremism and despondency,” the President said during the review.

Kenya is on a journey to realizing Vision 2030 and the Sustainable Development Goals. The UNDAF has demonstrated that it presents the best opportunity for powering the implementation of Kenya’s development agenda. Kenya’s engagement with the United Nations Country Team and indeed all development partners brought together under a solid framework is therefore a plus for the people of Kenya.

The UN and Government must not relent in pursuing more gains. New realities are bringing about new threats to social and economic development, calling for new approaches, but also creating new opportunities for collaboration.

These new approaches may for instance involve deepening private-public partnerships to engage a third force – private companies – that have unique innovation and implementation capabilities. This engagement can only develop better and more integrated solutions to important national challenges. (RC Speech Audio)

Ultimately, this framework is not about the UN or the Government or non-state actors, but is aimed at achieving a transformation in the lives of every Kenyan and ensuring that “no one is left behind”.

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Convincing Investors to Unlock Africa’s Green Energy Potentialhttp://www.ipsnews.net/2016/11/convincing-investors-to-unlock-africas-green-energy-potential/?utm_source=rss&utm_medium=rss&utm_campaign=convincing-investors-to-unlock-africas-green-energy-potential http://www.ipsnews.net/2016/11/convincing-investors-to-unlock-africas-green-energy-potential/#comments Wed, 16 Nov 2016 11:07:15 +0000 Friday Phiri http://www.ipsnews.net/?p=147785 Mustapha Bakkoury, President of the Moroccan Agency for Solar Energy (MASEN), speaking at the COP22 in Marrakesh. Credit: Friday Phiri/IPS

Mustapha Bakkoury, President of the Moroccan Agency for Solar Energy (MASEN), speaking at the COP22 in Marrakesh. Credit: Friday Phiri/IPS

By Friday Phiri
MARRAKECH, Nov 16 2016 (IPS)

Lowering investment risks in African countries is key to achieving a climate-resilient development pathway on the continent, say experts here at the U.N.-sponsored Climate Conference.

Mustapha Bakkaoury, president of the Moroccan Agency for Solar Energy (MASEN), says his country’s renewable energy revolution would not have been possible if multilateral partners such as the African Development Bank had not come on board to act as guarantors for a massive solar energy project, tipped to be one of a kind in Africa.Renewable energy has been identified as a key driver for Africa’s economic growth prospects, but requires multi-million-dollar investments which cannot be done by public financing alone.

The multi-billion-dollar solar power complex, located in the Souss-Massa-Drâa area in Ouarzazate, is expected to produce 580 MW at peak when finished, and is hailed as a model for other African countries to follow.

“Africa has legitimate energy needs, and development of Africa will happen through mobilisation of energy resources,” Bakkaoury told IPS at COP 22 after a roundtable discussion on de-risking investment in realising groundbreaking renewable energy projects.

Bakkauory believes it is possible for Africa to develop its energy sector while respecting the environment. “What we say is that there is no fatality between having energy resources and respect towards the environment, and Africa has abundant resources to do this through its key partner—the African Development Bank,” he said, noting the instrumental role of Africa’s premier multilateral financier to renewable energy in Africa.

And in affirming its continued commitment to universal access to energy for Africa, Alex Rugamba, AfDB Director for Energy, Environment and Climate Change, told IPS that “the Bank’s commitment has shifted gear as it has now a fully-fledged vice presidency dedicated to Power, Energy, Climate and Green Growth.”

Rugamba added that the Bank has learnt valuable lessons from various initiatives it is already supporting, and knows what is required to move forward with the initiatives without many challenges.

Renewable energy has been identified as a key driver for Africa’s economic growth prospects, but requires multi-million-dollar investments which cannot be done by public financing alone.

Private sector involvement is required to drive this agenda, a point underscored by World Bank Vice President for Sustainable Development, Laura Tuck.

“Private sector cannot be ignored because the money they have is more than what is available under public financing,” she says.

But the risk is believed to be too high for private investors to off-load their money into Africa’s renewables, a relatively new investment portfolio with a lot of uncertainties. German Parliament State Secretary Thomas Silberhorn says the highest risk in Africa is politically related.

“It’s not about economic risks alone, but also political risks,” said Silberhorn. “You don’t need to convince German investors about solar energy because they already know that it works, what they need is reliability on the political environment and sustainability of their investments.”

Silberhorn, who gave an example of a multi-million-dollar project in Kenya currently on hold due to political interference, added that ways to reduce political risks should be devised for Africa to benefit from private sector investments in renewables.

But even as risk factors abound, World Bank’s Tuck believes there is hope for Africa, citing Zambia, where record cheap solar energy has been recorded.

“Through a competitive bidding process, we have in Zambia under the Bank’s ‘Scaling Solar’ program, recorded the cheapest price at 6.02 cents per KWh,” she said, heralding it as a model to follow in de-risking climate investments for Africa’s growth.

And in keeping with the objective of universal energy for all, experts note the need to ensure that the end users are not exploited at the expense of investors.

“While the state should not interfere in this business model to work, modalities have to be put in place to ensure that the people for which energy is needed, afford it, otherwise, the project becomes useless,” said MASEN’s Bakkaoury.

Following up on this key aspect and responding to the political risk question, Simon Ngure of KenGen Kenya proposes a key principle to minimise political interference—involvement of the local communities.

“If you involve the local communities from the onset, regardless of whether governments change, the projects succeed because the people will have seen the benefits already,” said Ngure, who also noted policy restructuring as another key component to de-risk climate investments.

Agreed that de-risking investment is a crucial component, small grants are another issue that the African Union Commission’s implementing Agency, the New Partnership for Africa’s Development (NEPAD), believes could unlock the continent’s challenge of access to climate financing.

NEPAD Director of Programmes Estherine Fotabong told IPS that it was for this reason that the agency established the NEPAD Climate Change Fund to strengthen the resilience of African countries by building national, sub-regional and continental capacity.

“One of the objectives of the fund is to support concrete action for communities on the ground, but most importantly, to help with capacity building of member states to be able to leverage financing from complicated climate financial regimes,” said Fotabong, citing ECOWAS which she said used the funding to leverage financing from the Green Climate Fund, one of the financing regimes under the UNFCCC.

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A Cuban Economy Facing Grim Forecasts Awaits Impact of Trumphttp://www.ipsnews.net/2016/11/a-cuban-economy-facing-grim-forecasts-awaits-impact-of-trump/?utm_source=rss&utm_medium=rss&utm_campaign=a-cuban-economy-facing-grim-forecasts-awaits-impact-of-trump http://www.ipsnews.net/2016/11/a-cuban-economy-facing-grim-forecasts-awaits-impact-of-trump/#comments Tue, 15 Nov 2016 22:54:26 +0000 Ivet Gonzalez http://www.ipsnews.net/?p=147782 Students in Havana participate in an October protest, part of a campaign to fight the U.S. embargo against Cuba. Credit: Jorge Luis Baños/IPS

Students in Havana participate in an October protest, part of a campaign to fight the U.S. embargo against Cuba. Credit: Jorge Luis Baños/IPS

By Ivet González
HAVANA, Nov 15 2016 (IPS)

Cuba’s economic difficulties will be aggravated by the uncertainty regarding how U.S. president-elect Donald Trump will deal with the thaw inherited from President Barack Obama.

Experts consulted by IPS preferred not to speculate. But they did recommend that the Cuban authorities adopt all measures within their reach to cushion the blow and reinforce what has been achieved on the economic front with the outgoing U.S. administration.

“In any case, Cuba will have to continue moving forward with its economic reforms and try to resolve whatever has clearly not functioned for decades and is within our reach to fix,” said Cuban economist Pável Vidal, a professor at the Javeriana University in Cali, Colombia.“As a businessman, he could be inclined towards pragmatic policies that favour business interests. He doesn’t have a personal history against Cuba, and as a Republican he doesn’t have a complex about appearing weak. Since he doesn’t have prior experience in public office, a large part of his decisions will be reached with the advisers who surround him.” – Ricardo Torres

Vidal is studying the economic reforms implemented since 2008 by the government of Raúl Castro, which has been facing major difficulties this year due to liquidity problems and oil shortages caused by the political and economic crisis in Venezuela, this country’s main trading partner and energy supplier.

In the first six months of this year, GDP grew just one percent, half of what was expected. And forecasts for the rest of 2016 are bleak, projecting a drop of one percent.

Further muddying the picture are the doubts with respect to the recently restored relations with the United States, now that Democratic candidate Hillary Clinton was defeated by her Republican rival in the Nov. 8 elections.

“With regard to Cuba, I don’t think (Trump) will roll back the important steps taken by the Obama administration to normalise relations between the two countries,” John Gronbeck-Tedesco, assistant professor of American Studies at Ramapo College in New Jersey, told IPS by email.

“But with a Republican-controlled Congress, it’s harder to know when the United States will fully commit to lifting the embargo and truly open up trade between the two countries,” said the academic, the author of the book “Cuba, the United States, and Cultures of the Transnational Left, 1930-1975”.

The U.S. embargo against Cuba, in place since 1962, consists of a complex web of laws that can only be fully repealed by Congress.

Cuba sees the embargo as the biggest obstacle it faces to development and a normalisation of ties with its giant neighbour to the north.

Since the start of the move towards reestablishing bilateral ties, in December 2014, Obama has taken measures to undermine the embargo and attempted to protect his efforts by means of Presidential Policy Directive 43 on the normalisation of relations between the United States and Cuba, issued on Oct. 14.

He even took an enormous symbolic step on Oct. 26, when for the first time in 25 years the United States abstained in the United Nations vote on the resolution that Cuba has presented annually since 1992, condemning the U.S. embargo, which it blames for 125.873 billion dollars in losses.

 Tourists enjoy the beach at the western Cuban resort town of Varadero. The number of U.S. tourists arriving jumped 80 percent in the first half of 2016, with respect to the same period in 2015. Credit: Jorge Luis Baños/IPS


Tourists enjoy the beach at the western Cuban resort town of Varadero. The number of U.S. tourists arriving jumped 80 percent in the first half of 2016, with respect to the same period in 2015. Credit: Jorge Luis Baños/IPS

Obama said his aim was to make the opening to Cuba “irreversible”. But just a week before the election, Trump said “We will cancel Obama’s one-sided Cuban deal, made by executive order, if we do not get the deal that we want and the deal that people living in Cuba and here deserve, including protecting religious and political freedom.”

But the business community and Cuban-Americans are largely in favour of the thaw, as analysts in both countries have been pointing out.

In Gronbeck-Tedesco’s view, “The United States will continue treating Cuba and Venezuela as separate political issues. And since Venezuela is still suffering from economic and political uncertainty, Trump’s plans would not appear to include an improvement in relations with Venezuela or help in rebuilding that country.”

In a reaction that observers like Vidal describe as “tardy”, Havana appears to be pushing for more foreign investment, especially in the energy industry, which is heavily dependent on the shrinking deliveries of Venezuelan crude.

“The tendency is for foreign investment in energy to pick up speed,” Juan Manuel Presa, an official at Cuba’s Ministry of Energy and Mines, told IPS. “There are a large number of projects in different stages of progress to use renewable sources, mainly wind and solar power.”

The engineer said the industry “is seeking a diversity of partners in a diversity of formulas: external financing of Cuban projects, companies that are made up 100 percent of foreign capital, and the new legal status of mixed – Cuban and foreign – companies.”

Cuba is still far from its goal of drawing 2. 5 billion dollars a year in foreign investment – the amount needed to put the economy on a steady footing. The 83 projects approved since a new law on foreign investment went into effect in 2014 have attracted just 1.3 billion dollars so far.

But to some extent, the thaw is easing the tense economic situation in this country.

Between 2.0 and 2.5 billion dollars in remittances from abroad flow into Cuba annually, mainly coming from the Cuban-American community, according to estimates by Cuban economist Juan Triana.

Only exports of medical services bring in more hard currency revenues, he said.

Another major source of hard currency is tourism. Cuba’s colonial cities and white sand beaches are experiencing an unprecedented tourism boom, with the number of visitors from the U.S. growing every month, despite the fact that they can only travel here under one of 12 approved categories, such as family visits, academic programs, professional research, journalistic or religious activities.

In the first half of this year, Cuba received 2,147,912 visitors from abroad, including 136,913 from the U.S. This latter number was 80 percent higher than the total for the first half of 2015, according to the national statistics office, ONEI.

In that period, tourism brought in more than 1.2 billion dollars, only counting public installations, not the growing private sector, which rents out rooms and runs taxis and restaurants.

Cuban economist Ricardo Torres showed IPS a novel analysis on the U.S. president-elect, who was widely criticised during the campaign for his racist, xenophobic and misogynistic remarks.

“There are three aspects (of Trump) that could benefit relations with Cuba,” the academic researcher said.

“As a businessman, he could be inclined towards pragmatic policies that favour business interests,” he said. “He doesn’t have a personal history against Cuba, and as a Republican he doesn’t have a complex about appearing weak. Since he doesn’t have prior experience in public office, a large part of his decisions will be reached with the advisers who surround him.”

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Anti-Boeing Bill Offers Early Iran Test for Trumphttp://www.ipsnews.net/2016/11/anti-boeing-bill-offers-early-iran-test-for-trump/?utm_source=rss&utm_medium=rss&utm_campaign=anti-boeing-bill-offers-early-iran-test-for-trump http://www.ipsnews.net/2016/11/anti-boeing-bill-offers-early-iran-test-for-trump/#comments Tue, 15 Nov 2016 15:48:28 +0000 Jim Lobe http://www.ipsnews.net/?p=147773 dreamliner_rendering_787-3-620x350

By Jim Lobe
WASHINGTON, Nov 15 2016 (IPS)

Will a President Trump intend to put U.S. business first and preserve and expand the U.S. manufacturing workforce as part of his plan to make America great again? Or will he hold to the reflexive anti-Iran positions of the Republican Congressional majority, Sheldon Adelson, and the neoconservatives, including the NeverTrumpers who, with Democrats marginalized across the board, are already seeking ways to gain influence with whomever the president-elect chooses to advise him?

That’s the question that will likely come to the fore next week when the House of Representatives is likely to vote on legislation that would effectively ban Boeing from exporting at least 80 planes to Iran’s national air carrier. The sale is part of a deal that could total as much as $25 billion and employ many thousands of skilled workers across the United States.

The House Rules Committee, led by the committee’s trade panel chair Bill Huizenga (R-MI), has made action of the bill priority number one when Congress returns from its long election recess on Monday. A floor vote could come as early as next Wednesday. The bill, which will likely be merged with another that would prohibit the Export-Import Bank from helping finance any deals involving Iran, was drafted in response to the Treasury Department’s approval earlier this fall of Boeing to sell and/or lease commercial aircraft to Iran Air. Just last week, Iran’s deputy transport minister said that the final details of the deal should be worked out “within days.”

So, if Trump wants to preserve and expand the U.S. manufacturing base, supporting a deal of this scale with this particular company would seem to be very attractive, particularly because Boeing itself has been shedding a significant share of its workforce over the last months due to a dearth of new orders
Boeing employs 150,000 workers in the U.S. The commercial aviation division, which is most relevant to the pending Iran Air deal, employs 85,000 workers (not counting administrative staff). As the biggest single U.S. exporter of manufactured goods, Boeing has thousands of workers in each of nine states, notably Washington State (with about half its U.S. workforce) and California, but also red states including Alabama, Arizona, Missouri, Oklahoma, South Carolina, and Texas. It also has hundreds of staff at its corporate headquarters in Illinois, which is one reason why the outgoing senator, Mark Kirk—otherwise a staunch AIPAC supporter behind virtually every effort to sabotage the Iran nuclear deal—never took a clear stand on the Boeing sale. In the past 12 months, the company has paid nearly $50 billion to more than 13,600 businesses, supporting an additional 1.5 million supplier-related jobs across the country. So, if Trump wants to preserve and expand the U.S. manufacturing base, supporting a deal of this scale with this particular company would seem to be very attractive, particularly because Boeing itself has been shedding a significant share of its workforce over the last months due to a dearth of new orders.

Of course, Trump has repeatedly denounced the Joint Comprehensive Plan of Action (JCPOA) with Iran, vowing from time to time to either discard or renegotiate the nuclear deal. Back in June, when Boeing entered into formal talks over the sale, his campaign decried it, insisting that “the world’s largest state sponsor of terror …would not have been allowed to enter into these negotiations with Boeing without Clinton’s disastrous Iran Nuclear Deal.” But, as noted by Foreign Policy’s John Hudson at the time, Trump has also complained that one of the reasons the JCPOA was so “disastrous” was because it removed sanctions on Boeing’s chief rival, Airbus (which has entered into a somewhat bigger deal with Iran Air), while retaining Washington’s unilateral sanctions that prevented Boeing from selling planes. “Iran is going to buy 116 jetliners with a small part of the $150 billion [sic] we are giving them…but they won’t buy from U.S., rather than Airbus,” he tweeted in January.

“They bought 118 Airbus planes, not Boeing planes,” he elaborated on CNN. “They’re spending all of their money in Europe. It’s so unfair and it’s so incompetent. We’re handing over $150 billion [sic]. We get nothing,” he complained to Anderson Cooper.

This was, of course, before the Treasury Department issued the license to Boeing in September that made an agreement possible. Since then, Trump, like Kirk, has not expressed a firm opinion on the deal even while he has continued denouncing the JCPOA.

In the absence of a clear statement in opposition from the president-elect, the pending legislation will easily pass the House this week if it comes up for a vote. But it’s not yet clear what the Senate will do, and no doubt some key senators in the Republican majority will be looking for guidance from Trump Tower.

One very big question is what the larger U.S. business community will do and, if they do anything at all, how Trump will react. So far, Boeing has been flying pretty much solo in gaining approval to negotiate with Iran. Most big U.S. companies share Trump’s complaint about the lack of advantages given them by the JCPOA compared to their foreign competition, and offering more exemptions from U.S. sanctions would have been a political bridge too far for the Obama administration. With Trump now bound for the White House, the main challenge for groups like The Business Roundtable, the National Association of Manufacturers, the Chamber of Commerce, and the National Foreign Trade Council at this point is how to persuade Trump to modify his positions on trade and immigration, which of course are much more important in business terms than Iran.

Nonetheless, the Boeing deal could be a very important precedent for U.S.-based multinational corporations. If Trump indicated his support for the deal consistent with his commitments to creating jobs and expanding the economy, it would boost not only those companies that see in Iran a huge untapped market for their goods and services. It would also signal a major advance in one of big businesses’ long-term struggles: fighting unilateral U.S. economic sanctions enacted by Congress. If Boeing prevails, other companies have a lot to gain.

So, Trump faces a key Iran-related decision. Does he side with U.S. business and workers in the interests of “America First”? Or does he listen to knee-jerk, pro-Likud Iran hawks who argue that Boeing aircraft could be used to transport terrorists but whose real agenda is to destroy an agreement curbing Iran’s nuclear program, even at the risk of alienating Washington’s NATO allies and provoking another major war in the Greater Middle East that will cost the U.S. Treasury many billions of dollars?

This piece was originally published in Jim Lobe’s blog on U.S. foreign policy Lobelog.com

 

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Adaptation Funding a Must for Africahttp://www.ipsnews.net/2016/11/adaptation-funding-a-must-for-africa/?utm_source=rss&utm_medium=rss&utm_campaign=adaptation-funding-a-must-for-africa http://www.ipsnews.net/2016/11/adaptation-funding-a-must-for-africa/#comments Sun, 13 Nov 2016 23:41:11 +0000 Friday Phiri http://www.ipsnews.net/?p=147742 A panel discussion on means of implementation post-COP 21. Credit: Friday Phiri

A panel discussion on means of implementation post-COP 21. Credit: Friday Phiri

By Friday Phiri
MARRAKECH, Nov 13 2016 (IPS)

The Paris Agreement hammered out at the summit on climate change in the French capital last year committed all parties to low-carbon and climate-resilient economies. The big question at the follow-up meeting here in Marrakech is how that deal will be implemented, especially for the developing nations of Africa.

“We have three major objectives at this COP: [the first is] to set a foundation for a strong technical and legal framework of the Paris Agreement,” said Seni Nafo, chair of the African Group of Negotiators (AGN).Africa, currently the most exposed region, has only been able to access less than four percent of global climate financing—the reason being lack of bankable projects on the continent.

“The second key issue is to push for accelerating action after the entry into force of the Paris Agreement and lastly but not the least, ensuring finance for Africa’s adaptation.”

Dubbed the ‘COP of Implementation,’ the summit dubbed COP 22 is seen by the African group as an opportunity to refine some of Paris’s unfinished business.

Despite adoption last year, a number of key decisions in the PA such as modalities for achieving the 2 degree C. threshold, mechanisms to enforce compliance and achieving a balance between mitigation and adaptation, among others, were deferred to COP 22.

One key issue for Africa is removal of bottlenecks to accessing climate funds. Available statistics from the African Development Bank (AfDB) show that Africa, currently the most exposed region, has only been able to access less than four percent of global climate financing—the reason being lack of bankable projects on the continent.

With the deal based on Nationally Determined Contributions, it is feared the challenge of access to climate finance for Africa might get further complicated as it has been discovered that most countries’ NDCs are vague, according to the African Climate Policy Centre (ACPC) of the United Nations Economic Commission for Africa (UNECA).

“ACPC is ready to support African countries in the revision of their Nationally Determined Contributions, most of which have been found to be defective,” James Murombedzi, Officer in Charge at ACPC told IPS, adding that his organisation wants to see an inclusive implementation of the PA.

Murombedzi said this would, however, not be possible if COP 22 does not lay a strong foundation.

The talk over the years has been capacity building to achieve the required levels of preparing bankable proposals in most African countries. Nevertheless, experts have urged caution even as the continent pushes for this need.

According to Balgis Osman Elasha, Principal Climate Change officer at the African Development Bank, Africa should avoid the ‘Clean Development Mechanism (CDM) trap’ by perpetually pushing capacity building and miss out on serious climate funding opportunities.

Elasha says “Africa could not benefit from the CDM because it was caught up in the capacity building mode while others were taking action.”

CDM of the Kyoto Protocol provided for emissions reduction projects aimed at assisting parties not included in Annex I in achieving sustainable development and compliance with their quantified emission limitation and reduction commitments.

As highlighted, a balance between adaptation and mitigation features prominently in the negotiations. And for African economies, adaptation is not a question of the future but now.

Available data shows that most countries are already facing economic challenges which are likely to be worsened by climate change effects. For example, cereal production is expected to decrease by up to 49 percent in Africa by 2050 due to the impacts of climate change, exacerbating food insecurity.

And Zambia’s Minister of Water Development, Sanitation and Environmental Protection, Lloyd Mulenga Kaziya underscored the need for urgent action especially the improvement of hydromet services.

“Zambia is deeply affected. In the past five years, our rivers have been drying up while the frequency of droughts has increased affecting our smallholder farmers in terms of production, and to make matters worse, information flow to the affected communities is not readily available,” said Kaziya, adding that the southern African country requires urgent support to upgrade hydromet systems and integrate them in all key sectors such as Mining, Energy and Agriculture

With these critical needs identified, the AGN is determined to ensure that Africa’s voice is heard at the negotiating table — especially now as the rules and modalities for implementation are being discussed.

“In line with our major objective of ensuring finance for adaptation, one key priority is to keep adaptation at par with mitigation,” said Nafo of the AGN, adding that adaptation for Africa is not an option but a must.

But on its part, the continent is not seating idle. At COP 21, the Africa Renewable Initiative (AREI) was launched to pave the way for Africa’s transition to inclusive green growth. AREI already has resulted in significant financial commitment of over 10 billion dollars for renewable energy projects in Africa, according to the African Development Bank, one of the partners of the initiative.

The tone for Africa’s demands at this year’s COP was clear on day one of the event as Salahedinne Mezouar, the COP 22 President, said: “Paris gave us a global commitment to climate change and COP22 in Marrakech will give us more ambitious climate action. We must all rise to the challenge in support of the most vulnerable countries in the fight against climate change,” underscored Mezouar, implicitly referring to Africa—the most exposed region whose contribution to global carbon emissions is just about 5 percent.

As negotiations enter the second week, the African group remains optimistic that most outstanding issues, especially means of implementation, would be resolved for smooth implementation of the Paris Agreement.

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Changing Determinants of Global Income Inequalityhttp://www.ipsnews.net/2016/11/changing-determinants-of-global-income-inequality/?utm_source=rss&utm_medium=rss&utm_campaign=changing-determinants-of-global-income-inequality http://www.ipsnews.net/2016/11/changing-determinants-of-global-income-inequality/#comments Thu, 10 Nov 2016 15:25:29 +0000 Jomo Kwame Sundaram http://www.ipsnews.net/?p=147710 Jomo Kwame Sundaram was an Assistant Secretary-General for Economic and Social Development in the United Nations system during 2005-2015, and received the 2007 Wassily Leontief Prize for Advancing the Frontiers of Economic Thought. ]]> Inter-country income inequalities now account for about two-thirds of world inequality, with intra-country inequality accounting for the remaining third. Credit: IPS

Inter-country income inequalities now account for about two-thirds of world inequality, with intra-country inequality accounting for the remaining third. Credit: IPS

By Jomo Kwame Sundaram
KUALA LUMPUR, Malaysia, Nov 10 2016 (IPS)

Global income inequality among different regions began to increase about five centuries ago, before accelerating two centuries ago. The data suggest a brief reversal during the Golden Age quarter century after the Second World War, and in the last decade, with higher primary commodity prices once again, and protracted stagnation in much of the North following the 2008-2009 financial crisis.

From class to geography
Before the Industrial Revolution, between-country inequalities were relatively small, while within-country inequalities accounted for most global income inequality. Inter-country income inequalities now account for about two-thirds of world inequality, with intra-country inequality accounting for the remaining third.

National income distribution trends do not necessarily follow those for global income inequality. Data from the late 19th century to the early 21st century for 22 developed economies suggest growing national inequalities up to the second decade of the 20th century, before declining until the 1970s. The trend was reversed over the following decade, with inequality rising again in the two decades at the turn of the century.

The trend is quite clear using various different measures, but it does not mean that the trend holds for all other countries. Developing countries fared badly in the 1920s and 1930s as primary commodity prices fell, especially during the Great Depression.

The late Eric Hobsbawm famously described the period from the Bolshevik Revolution in 1917 to the collapse of the Soviet Union in 1991, as the short 20th century. For some pundits, the First World War is a better turning point for Karl Polanyi’s ‘second movement’ in his Great Transformation.

Counter-Revolution
For others, the ascendance of Margaret Thatcher and Ronald Reagan led the neo-liberal counter-revolution against the post-World War Two ‘Golden Age’ marked by decolonization, Keynesianism, the welfare state and rapid employment expansion.

The “Washington Consensus” – shared by the US government and the Bretton Woods institutions located in the American capital – from the early 1980s embodied the counter-revolution against development economics and Keynesian economics.

The breakdown of the international monetary system and other developments of the 1970s led to stagflation in much of the West while growth continued in many other parts of the world. US Fed-led high interest rates from 1980 induced international recession, fiscal and sovereign debt crises in Latin America and some other developing countries, forcing many governments to pursue macro-financial stabilization policies to end inflation, and microeconomic structural adjustment policies.

Property trumps markets
But the so-called Washington Consensus was not really about market liberalization, as little was done to check, let alone challenge private oligopolistic and oligopsonistic tendencies.

Instead, despite neo-liberal market rhetoric, it was really about strengthening property rights. This has involved a clear shift from public authority and coordination to enhance private power besides reducing and redefining the role of the state.

Good governance in the new order has required upholding the rule of law, so crucial to strengthening property rights and related entitlements. This united the common interests of all asset-owners, including rent-seekers seeking to maximize net incomes by minimizing rent-seeking costs.

Not surprisingly then, recent trends in the functional distribution of income point to a declining share for labour despite strong evidence of rising labour productivity and growing financial rents accruing as emoluments. This disconnect between labour productivity and income is not unfamiliar to developing economies with high unemployment and underemployment.

In such labour markets, said to be characterized by ‘unlimited supplies of labour’ associated with Nobel laureate W A Lewis, productivity gains did not translate into higher wages or a ‘producer surplus’, but instead lowered prices, thus contributing to the ‘consumer surplus’. This outcome can be contrasted with situations characterized by strong labour market institutions with low levels of ‘frictional unemployment’ in which wages rise with productivity.

Growing wealth concentration in recent decades is consistent with rising rentier power. This is not only related to advancing oligopolistic and oligopsonistic tendencies in most sectors of economic activity, or even the ascendance and globalization of finance in recent decades.

Meanwhile, rentier income flows from legally sanctioned monopolies associated with intellectual property rights have grown by leaps and bounds in recent years, increasingly capturing productivity gains, largely at the expense of labour, and thus deepening the disconnect between labour productivity and remuneration.

Although class has not declined in significance, location or citizenship have become relatively more important income determinants. This not only helps explain the strong economic incentive for migration, especially international migration, but also the growing opposition to such relocation by those who feel threatened. Not surprisingly, international solidarity becomes much more difficult while protestations and professions to that effect are treated with greater suspicion as self-interested.

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Beyond Calais: A Perspective on Migration, Agriculture and Rural Developmenthttp://www.ipsnews.net/2016/11/beyond-calais-a-perspective-on-migration-agriculture-and-rural-development/?utm_source=rss&utm_medium=rss&utm_campaign=beyond-calais-a-perspective-on-migration-agriculture-and-rural-development http://www.ipsnews.net/2016/11/beyond-calais-a-perspective-on-migration-agriculture-and-rural-development/#comments Mon, 07 Nov 2016 06:15:10 +0000 Jose Graziano da Silva http://www.ipsnews.net/?p=147657 José Graziano da Silva is Director-General of the Food and Agriculture Organization of the United Nations (FAO).]]> José Graziano da Silva. Credit: FAO

José Graziano da Silva. Credit: FAO

By José Graziano da Silva
ROME, Nov 7 2016 (IPS)

Migration is part of the process of development. It is not a problem in itself, and could, in fact, offer a solution to a number of matters. Migrants can make a positive and profound contribution to the economic and social development of their countries of origin, transit and destination alike. To quote the New York Declaration, adopted at the UN Summit on Refugees and Migrants on 19 September, “migrants can help to respond to demographic trends, labour shortages and other challenges in host societies, and add fresh skills and dynamism to the latter’s economies”.

So far this year, already more than 320,000 people have crossed the Mediterranean in search of a better future. Thousands have lost their lives doing so. Those that have survived face uncertain prospects at their destinations. Many are confronted with hostility and inhumane new realities. Migrants and refugees are often perceived negatively in their host communities, deemed to “steal’’ jobs and drain financial and social services. At personal and collective levels, this creates a certain sense of disquiet.

Tighter border controls are not the solution. They have instead resulted in more deaths at sea and more human rights violations. Without adequate policies that respond to migrants’ need to leave and that offer accessible, regular, safe and affordable avenues for migration, countries risk being left alone to deal with very complex challenges, possibly falling into chaos and disorganization.

In many cases, this translates into the adoption of less than desirable informal solutions, where the risk of abuses of the rights of migrants and asylum seekers is high. What has been happening in the Jungle camp near Calais in France shows that the most vulnerable, such as unaccompanied children, are those most at risk.

The challenge is huge. If we do not act in a timely manner, tensions will only rise further.

We need to address the root causes behind large movements of migrants and refugees, bringing together humanitarian and development responses. We also need channels for regular migration, facilitating migrants’ integration and contributions to development.

FAO argues that investing in sustainable rural development, climate change adaptation and resilient livelihoods is an important part of the solution, including in conflict-affected and protracted crisis situations.

Forty percent of international remittances are sent to rural areas, indicating that a large share of migrants originate from rural locations. Globally, three-quarters of the extreme poor base their livelihoods on agriculture. And by 2050, over half of the population in least developed countries will still be living in rural areas, despite increased urbanisation.

Agriculture and rural development can help address the root causes of migration, including rural poverty, food insecurity, inequality, unemployment, and lack of social protection, as well as natural resource depletion due to environmental degradation and climate change.

Agriculture and rural development can create sustainable livelihood options in rural areas. This kind of support can also help prevent the outbreak of conflicts over natural resources, and help host communities and displaced people cope with and recover from shocks by building their resilience.

Youth deserve particular attention. One-third of international migrants from developing countries are aged 15-34, moving mainly in search of better employment opportunities. By making agriculture a sustainable and attractive employment option and developing food value chains, millions of new and better jobs could be created.

Together with its partners, FAO supports global and country efforts on migration, bringing its specialized expertise on food security, resilience-building and sustainable agriculture and rural development. It does so by generating data on migration and rural development, supporting capacity development at country and regional level, facilitating policy dialogue and scaling-up innovative solutions to enhance agriculture-based livelihoods, social protection coverage and job opportunities in rural areas, as well as to build resilience in protracted crisis situations.

Since 2014, FAO has been a member of the Global Migration Group (GMG). The GMG has played an important role in coordinating inputs from different UN agencies for the process of intergovernmental negotiations that led to the adoption of the New York Declaration during the UN Summit on Refugees and Migrants.

GMG will assume the same role in preparation of the adoption of the Global Compact on Refugees and the Global Compact on Safe, Orderly and Regular Migration by 2018. FAO stands ready to lend its technical expertise and share best practices, to ensure that the need to address the root causes of migration, including from rural areas, is taken into account in major global fora.

FAO will also enhance the collaboration with key partners in the area of migration and development, at global, regional and country level. In this regard, FAO is discussing ways to foster country-level collaboration with the International Organization for Migration (IOM).

Note on the terminology: FAO uses the term migration to refer to the movement of people, either within a country or across international borders. It includes all kinds of movements, irrespective of the drivers, duration and voluntary/involuntary nature. It encompasses economic migrants, distress migrants, internally displaced persons (IDPs), refugees and asylum seekers, returnees and people moving for other purposes, including for education and family reunification.

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