Inter Press Service » Natural Resources http://www.ipsnews.net Journalism and Communication for Global Change Thu, 31 Jul 2014 15:44:30 +0000 en-US hourly 1 http://wordpress.org/?v=3.9.1 World Bank Board Declines to Revise Controversial Draft Policies http://www.ipsnews.net/2014/07/world-bank-board-declines-to-revise-controversial-draft-policies/?utm_source=rss&utm_medium=rss&utm_campaign=world-bank-board-declines-to-revise-controversial-draft-policies http://www.ipsnews.net/2014/07/world-bank-board-declines-to-revise-controversial-draft-policies/#comments Thu, 31 Jul 2014 01:11:09 +0000 Jim Lobe http://www.ipsnews.net/?p=135842 By Jim Lobe
WASHINGTON, Jul 31 2014 (IPS)

A key committee of the World Bank’s governing board Wednesday spurned appeals to revise a  draft policy statement that, according to nearly 100 civil-society groups, risks rolling back several decades of reforms designed to protect indigenous populations, the poor and sensitive ecosystems.

While the Committee on Development Effectiveness did not formally endorse the draft, it approved the document for further consultation with governments, non-governmental organisations (NGOs), and other stakeholders over the coming months in what will constitute a second round a two-year review of the Bank’s social and environmental policies.“The proposed ‘opt-out’ for protections for indigenous peoples, in particular, would undermine existing international human rights law." -- Joji Carino

At issue is a draft safeguard framework that was designed to update and strengthen policies that have been put in place over the past 25 years to ensure that Bank-supported projects in developing countries would protect vulnerable populations, human rights, and the environment to the greatest possible extent.

“The policies we have in place now have served us well, but the issues our clients face have changed over the last 20 years,” said Kyle Peters, the Bank’s vice president for operations policy and country services.

He stressed that the draft provisions would also broaden the Bank’s safeguard policies to include promoting social inclusion, anti-discrimination, and labour rights, and addressing climate change.

But, according to a number of civil-society groups, the draft, which was leaked over the weekend, not only fails to tighten key safeguards, in some cases, it weakens them substantially.

“The World Bank has repeatedly committed to producing a new safeguard framework that results in no-dilution of the existing safeguards and which reflects prevailing international standards,” according to a statement sent to the Bank’s executive directors Monday by Bank on Human Rights (BHR), a coalition of two dozen human-rights, anti-poverty, and environmental groups that sponsored the letter.

“Instead, the draft safeguard framework represents a profound dilution of the existing safeguards and an undercutting of international human rights standards and best practice,” the coalition, which includes Amnesty International, Human Rights Watch, and the NGO Forum of the Asia Development Bank, among other groups, said.

Perhaps the most dramatic example of that dilution is a provision that would permit borrowing governments to “opt out” of the Indigenous Peoples Standard that was developed by the Bank to ensure that Bank-funded projects protected essential land and natural-resource rights of affected indigenous communities.

“We have engaged with social and environmental safeguard development with the World Bank for over 20 years and have never seen a proposal with potential for such widespread negative impacts for indigenous peoples around the world,” said Joji Carino, director of the Forest Peoples Programme.

“The proposed ‘opt-out’ for protections for indigenous peoples, in particular, would undermine existing international human rights law and the significant advances seen in respect for indigenous peoples rights in national laws,” she added.

But Mark King, the Bank’s chief environmental and social standards officer, insisted that the draft’s provisions represented a “strengthening of existing policy” that, among other provisions, introduces “Free, Prior and Informed Consent of Indigenous Peoples” in all Bank-supported projects.

“In exceptional circumstances when there are risks of exacerbating ethnic tension or civil strife or where the identification of Indigenous Peoples is inconsistent with the constitution of the country, in consultation with people affected by a particular project, we are proposing an alternative approach to the protection of Indigenous Peoples,” he said, adding that any such exception would have to be approved by the Bank’s board.

The Bank, which disburses as much as 50 billion dollars a year in grants and loans, remains a key source of project funding for developing countries despite the rise of other major sources over the past 20 years, notably private capital and, more recently, China and other emerging economies, which have generally imposed substantially fewer conditions on their lending.

Faced with this competition, the Bank has been determining how to make itself more attractive to borrowers by, for example, streamlining operations and reducing waste and duplication. But some critics worry that it may also be willing to exercise greater flexibility in applying its social and environmental standards – a charge that Bank officials publicly reject, despite the disclosure of recent internal emails reflecting precisely that concern.

Under prodding by NGOs and some Western governments in the 1980’s and 1990’s, the Bank had established itself as a leader in setting progressive social and environmental policies.

More recently, however, “it has fallen behind the regional development banks and many other international development institutions in terms of safeguarding human rights and the environment,” according to Gretchen Gordon, BHR’s co-ordinator.

“The Bank has an opportunity to regain its position as a leader in the development arena, but unfortunately this draft backtracks on the last decade of progress,” she told IPS. “We hope that the [next round of] consultations will be robust and accessible to the people and communities who are most affected, and that at the end of the day, the Bank and its member states adopt a strong safeguard framework that respects human rights.”

While welcoming the Bank’s new interest in issues such as discrimination and labour rights, the BHR statement criticised what it called the framework’s movement from “one based on compliance with set processes and standards, to one of vague and open-ended guidance…”

According to the statement, the draft threatens long-standing protections for people who may be displaced from their homes by Bank-backed mega-projects and may permit borrower governments and even private “intermediary” banks to use their own standards for assessing, compensating and resettling affected communities “without clear criteria on when and how this would be acceptable.”

In addition, according to BHR, the draft fails to incorporate any serious protections to prevent Bank funds from supporting land grabs that have displaced indigenous communities, small farmers, fishing communities and pastoralists in some of the world’s poorest countries to make way for major agro-industrial projects.

“We had hoped that the new safeguards would include strong requirements to prevent governments like Ethiopia from abusing its people with Bank funds,” said Obang Metho, executive director of the Solidarity Movement for a New Ethiopia, a group that has brought international attention to Bank-backed land grabs in his home country. “But we are shocked to see the Bank instead opening the flood-gates for more abuses.”

The draft was based on a five-month-long consultation involving more than 2,000 people in more than 40 countries and a review of other multilateral development banks’ environmental and social standards, according to the Bank.

In a teleconference with reporters, King denied that the Bank was lowering its existing standards. In addition to broadening existing standards, he said, the Bank will “use as much as possible the borrower country’s own existing systems to deliver social and environmental outcomes that are consistent with our values.”

He and Peters also stressed that more attention will be paid to assessing and addressing the risks of social and environmental damage during project implementation, as opposed to the more “up-front approach” the Bank has taken in the past.

Jim Lobe’s blog on U.S. foreign policy can be read at Lobelog.com.

Editing by: Kitty Stapp

The writer can be reached at ipsnoram@ips.org

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Land Grabbing – A New Political Strategy for Arab Countries http://www.ipsnews.net/2014/07/land-grabbing-a-new-political-strategy-for-arab-countries/?utm_source=rss&utm_medium=rss&utm_campaign=land-grabbing-a-new-political-strategy-for-arab-countries http://www.ipsnews.net/2014/07/land-grabbing-a-new-political-strategy-for-arab-countries/#comments Wed, 30 Jul 2014 22:57:26 +0000 Mona Alami http://www.ipsnews.net/?p=135839 By Mona Alami
BEIRUT, Jul 30 2014 (IPS)

Food price rises as far back as 2008 are believed to be the partial culprits behind the instability plaguing Arab countries and they have become increasingly aware of the importance of securing food needs through an international strategy of land grabs which are often detrimental to local populations.

Between 2007 and 2008, rises in food prices caused protest movements in Egypt and Morocco. “This has become an important concern for countries in the Arab region which want to meet the growing demands of their populations,” notes Devlin Kuyek, a researcher at GRAIN, a non-profit organisation supporting small farmers and social movements in their struggles for community-controlled and biodiversity-based food systems.Arab countries ... have become increasingly aware of the importance of securing food needs through an international strategy of land grabs which are often detrimental to local populations

Arab countries, which appear to have started losing confidence in normal food supply chains, are now relying on acquisitions of farmland around the world. Globally, land deals by foreign countries were estimated at about 80 million ha in 2011, according to figures provided by the World Bank.

The 2008 international food price crisis caused alarm among policy-makers and the public in general about the vulnerability of Arab countries to potential future food supply shocks (such as, for example, in the event of closure of the Straits of Hormuz) as well as the perceived continued sharp increase in international food prices in the long term, explains Sarwat Hussain, Senior Communications Officer at the World Bank.

Increasing food prices are caused by entrenched trends that include population growth combined with high urbanisation rates, depleting freshwater sources, increased demand for raw commodities and biofuels, as well as speculation over farmland.

To face such threats, Arab countries have worked on buying or leasing farm land in foreign countries. “Investment in land often takes the form of long-term leases, as opposed to outright purchases, of land. These leases often range between 25 and 99 years,” says Hussain.

Currently, the United Arab Emirates accounts for around 12 percent of all land deals, followed by Egypt (6 percent) and Saudi Arabia (4 percent), according to GRAIN.

“It is however very difficult to estimate the total value of land grabbed today because most deals remain in the negotiations phase and are, for the most, very obscure ,” adds Hussain.

Land acquisitions are becoming institutionalised as clear strategies are developed by governments, which also rely on the private sector and international organisations, explains Kuyek.

Some governments of member states of the Gulf Cooperation Council (GCC) – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates – have adopted explicit policies to encourage their citizens to invest in food production overseas as part of their long-term national food security strategies.

Such policies cover a variety of instruments, including investment subsidies and guarantees, as well as the establishment of sovereign funds focusing exclusively on investments in agriculture overseas.

Countries falling victims of the land acquisition mania range from Western countries such as Australia, New Zealand, Poland, Russia, Ukraine and Romania to countries in Latin America, Asia or Africa.

Globally, the largest targeted countries are Brazil with 11 percent by land area; Sudan with 10 percent; Madagascar, the Philippines and Ethiopia with 8 percent each; Mozambique with 7 percent; and Indonesia with 6 percent, according to the World Bank.

“The main driving force seems to be biofuels expansion, with exceptions in Sudan and Ethiopia, which are seeing a trend towards growth of food from Middle Eastern and Indian investors,” Hussain points out.

Governments, often through sovereign wealth funds, are negotiating the acquisition or lease of farming land. According to GRAIN, the Ethiopian government has made deals with investors from Saudi Arabia, as well as India and China among others, giving foreign investors control of half of the arable land in its Gambela region.

Powerful Saudi businessmen are pursuing deals in Senegal, Mali and other countries that would give them control over several hundred thousand hectares of the most productive farmlands. -“The [Saudi Arabian] al-Amoudi company has acquired ten thousand hectares in south western Ethiopia to export rice,” notes Kuyek.

Besides food security concerns, it appears that such acquisitions are increasingly perceived by international companies as a useful investment tool allowing for diversification. A number of investment companies and private funds have been acquiring farmland around the globe.  These include Western heavyweights such Goldman Sachs and Deutsche Bank, but also Arab players such as Citadel Capital, an Egyptian private equity fund.

Kuyek explains that large land acquisitions are triggering debates in developing countries and can become electoral issues.  Land grabs can have adverse repercussions on indigenous populations which find themselves evicted from the land they have used over generations for cultivation and irrigation.

“People are concerned by the sale of their local resources,” adds Kuyek.

This has translated into the creation of local groups that are challenging large land sale deals negotiated by their governments. As an example, farmers in Serbia have made formal complaints about the purchase of farmland by an Abu Dhabi company, Al Rawafed Agriculture, according to The National newspaper.

Small opposition groups will nonetheless face increasing difficulty in fighting-off governments and institutions, for which food security has become a matter of political survival.

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Is Europe’s Breadbasket Up for Grabs? http://www.ipsnews.net/2014/07/is-europes-breadbasket-up-for-grabs/?utm_source=rss&utm_medium=rss&utm_campaign=is-europes-breadbasket-up-for-grabs http://www.ipsnews.net/2014/07/is-europes-breadbasket-up-for-grabs/#comments Wed, 30 Jul 2014 21:29:03 +0000 Kanya DAlmeida http://www.ipsnews.net/?p=135828 Ukraine is the world’s third-largest exporter of cotton and the fifth-largest exporter of wheat. Credit: Bigstock

Ukraine is the world’s third-largest exporter of cotton and the fifth-largest exporter of wheat. Credit: Bigstock

By Kanya D'Almeida
NEW YORK, Jul 30 2014 (IPS)

Amidst an exodus of some 100,000 people from the conflict-torn eastern Ukraine, ongoing fighting in the urban strongholds of Donetsk and Luhansk between Ukrainian soldiers and separatist rebels, and talk of more sanctions against Russia, it is hard to focus on the more subtle changes taking place in this eastern European nation.

But while global attention has been channeled towards the political crisis, sweeping economic reforms are being ushered in under the leadership of the newly elected president Petro Poroshenko, who recently brokered deals with the World Bank and International Monetary Fund that have rights groups on edge.“These reforms sound good on paper, but when you look more closely you see they are actually designed to benefit large multinational corporations over workers and small-scale farmers." -- Frédéric Mousseau

Even before Poroshenko assumed office on Jun. 7, international financial institutions (IFIs) were rushing emergency missions into the country, with IMF European Department Director Reza Moghadam declaring on a Mar. 7 visit, “I am positively impressed with authorities’ determination, sense of responsibility and commitment to an agenda of economic reform.”

After years of dangling a 17-billion-dollar loan – withheld in part due to ousted President Viktor Yanukovych’s refusal to implement a highly contested pension reform bill that would have raised the retirement age by 10 years, and his insistence on curbing gas price hikes – the IMF has now released its purse strings.

The World Bank followed suit, announcing a 3.5-billion-dollar aid package on May 22 that the Bank’s president, Jim Yong Kim, said was conditional upon the government “removing restrictions that hinder competition and […] limiting the role of state control in economic activities.”

While these reforms include calls for greater transparency to spur economic growth, experts are concerned that Ukraine’s rapid pivot to Western neoliberal policies could spell disaster, particularly in the immense agricultural sector that is widely considered the ‘breadbasket of Europe.’

A quiet land-grab

Ukraine is the world’s third-largest exporter of cotton and the fifth-largest exporter of wheat. Agriculture accounts for about 10 percent of gross domestic product (GDP), with vast fields of fertile soil yielding bumper harvests of grain and cereals each year.

According to a 2013 forecast by the U.S. Department of Agriculture, Ukraine is poised to become the world’s second biggest grain exporter in the world (after the U.S.), shipping over 30 million tonnes of grain out of the country last year.

The World Bank estimates that farmers and agricultural workers made up 17 percent of the country’s labour force as of 2012. And according to the Centre for Eastern Studies, agricultural exports soared in the last decade, from 4.3 billion dollars in 2005 to 17.9 billion dollars in 2012.

Lush soil and a rich agrarian culture do not immediately add up to nationwide dividends. Potential investors have cited“red tape” and “corruption” as hindrances to development, as well as a communist legacy that forbids the sale of land.

But the past decade has seen an abrupt change in Ukraine’s agricultural sector, with foreign investors and agri-business hugely expanding ownership and influence in the country.

According to a report released Monday by the U.S.-based Oakland Institute, over 1.6 million hectares of land have been signed over to multinational companies since 2002, including “over 405,000 hectares to a company listed in Luxembourg, 444,800 hectares to Cyprus-registered investors, 120,000 hectares to a French corporation, and 250,000 hectares to a Russian company.”

A deal brokered between China and Yanukovych prior to the political crisis – now disputed under the present regime – granted Beijing control over some three million hectares of prime farmland in the east, an area about the size of Belgium that totals five percent of Ukraine’s arable land.

This changing climate has been a boon for investors and corporations, with Michael Cox, research director at the investment bank Piper Jaffray, referring to Ukraine as one of the “most promising growth markets for farm-equipment giant Deere, as well as seed producers Monsanto and DuPont.”

Such statements have raised a red flag among researchers and trade watchdogs.

OI Executive Director Anuradha Mital told IPS, “IFIs are imposing Structural Adjustment Programmes (SAPs) in Ukraine, which we know – from the experience of the Third World – will undoubtedly lead to severe austerity measures for the people and increase poverty among the Ukrainians.”

“Ukraine is also one of the 10 pilot countries in the World Bank’s new Benchmarking the Business of Agriculture (BBA) project,” Mittal told IPS, referring to a brand new initiative, still in the development stage, which is connected to the Bank’s controversial Doing Business rankings.

This index has been criticised by numerous groups including the International Trade Union Confederation (ITUC) – comprised of over 176 million members hailing from 161 countries – for favouring low taxes for transnational corporations and lowering labour standards in developing countries as a means of attracting foreign investment.

The Bank itself says the BBA will largely serve as a tool for improving agricultural output.

“The world needs to feed nine billion people by 2050,” a World Bank spokesperson told IPS.

“For small-scale farmers to be more productive and far more competitive, they need access to land, finance, improved seed, fertiliser, water, electricity, transport and markets.

“By identifying and monitoring policies and regulations that limit access of smaller producers to these critical components of success, BBA is being designed as a tool to foster an enabling environment that boosts local and regional agribusinesses,” she concluded.

David Sedik, senior policy officer at the Food and Agriculture Organisation’s (FAO) regional office for Europe and Central Asia, believes such an initiative is sorely needed in Ukraine, where “the primary beneficiaries of subsidies granted by the agricultural VAT system are… large agri-holding companies, the overwhelming majority of which are Ukrainian.”

“The list of needed reforms is quite long, and could start with building a more transparent land market,” he told IPS. “A first step in this direction could be the lifting of the moratorium on land sales.”

“The BBA project seems to support the construction of a transparent and inclusive system of agricultural regulation, something Ukraine lacks,” Sedik added.

But the OI report’s co-author Frédéric Mousseau says initiatives like the BBA and others exist primarily to pry open Ukraine’s doors, hitherto sealed by its socialist traditions, to foreign capital.

“These reforms sound good on paper, but when you look more closely you see they are actually designed to benefit large multinational corporations over workers and small-scale farmers,” Mousseau told IPS.

“Ranking systems like the BBA push for contract farming, which entails farmers working for corporations, instead of as subsistence producers. We are denouncing this rhetoric, and its attendant struggle between different foreign interests over Ukraine’s resources.”

Research into the impacts of the Bank’s ‘Doing Business’ rankings in eight countries – including Mali, Sierra Leone, Sri Lanka and the Philippines – has yielded similar results: sharp increases in foreign investments and land-grabbing in a bid to appear more ‘business friendly’.

Further, Mousseau said, arrangements such as the Association Agreement between the European Union and Ukraine offer glimpses into an agricultural future steered by corporate interests.

“Until now, Ukraine had banned the use of GMOs in the agriculture sector,” Mousseau stated. “So when we anaylsed the EU Association Agreement we were surprised by article 404, which states very clearly that both parties agree to expand the use of biotechnologies.”

Such clauses, experts say, could strengthen existing initiatives such as Monsanto’s Ukraine-based ‘Grain-basket of the Future’ project (which offers 25,000-dollar loans to rural farmers) and Cargill’s 200-million-dollar stake in UkrLandFarming, the eighth largest land cultivator in the world.

These developments give weight to the title of OI’s report, ‘Walking on the West Side’, a reference to the role of Western interests in Ukraine’s unfolding political crisis.

“It is necessary to see this in context of the U.S.– Russia struggle over Ukraine,” Joel Kovel, U.S. scholar and author of over 20 books on international politics, told IPS.

“Geostrategic politics and neoliberal economics fit together within the overall plan …in which global finance capital under American control and neoconservative leadership imposes austerity, seeks dominion over the easternmost portion of Europe, and continues the policy of encircling Russia,” he stated.

Editing by: Kitty Stapp

The writer can be contacted at kanyaldalmeida@gmail.com

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Oil Alliance Between China and Costa Rica Comes to Life Again http://www.ipsnews.net/2014/07/oil-alliance-between-china-and-costa-rica-comes-to-life-again/?utm_source=rss&utm_medium=rss&utm_campaign=oil-alliance-between-china-and-costa-rica-comes-to-life-again http://www.ipsnews.net/2014/07/oil-alliance-between-china-and-costa-rica-comes-to-life-again/#comments Wed, 30 Jul 2014 02:22:47 +0000 Diego Arguedas Ortiz http://www.ipsnews.net/?p=135822 The presidents of China, Xi Jinping, and Costa Rica, Luis Guillermo Solís, both at their microphones during a Jul. 17 meeting in Brasilia. Credit: Presidencia de Costa Rica

The presidents of China, Xi Jinping, and Costa Rica, Luis Guillermo Solís, both at their microphones during a Jul. 17 meeting in Brasilia. Credit: Presidencia de Costa Rica

By Diego Arguedas Ortiz
SAN JOSE, Jul 30 2014 (IPS)

China’s plan to become Costa Rica’s main energy ally through the joint reconstruction of an oil refinery has been revived after the presidents of the two countries agreed to review the conditions of the project during a meeting in the Brazilian capital.

The two countries initially signed a framework accord in 2008, including Chinese participation in oil projects, especially the upgrade and expansion of the Moín refinery on Costa Rica’s Caribbean coast, with an investment of 1.5 billion dollars.

But criticism from public institutions, political leaders and social organisations brought the initiative to a halt.

The Costa Rican president’s office stated in a communiqué that Beijing had accepted its request to renegotiate the project, with the aim of “resolving inconsistencies in the contract,” in which each country has invested 50 million dollars so far.

Costa Rican Foreign Minister Manuel González said in a Jul. 22 press conference that “we have no deadline” for that review, which all of the involved institutions will take part in.

President Luis Guillermo Solís participated in the news briefing, although he did not specifically refer to the refinery.

Under the microscope

A year ago, the comptroller general’s office ordered Soresco, the joint venture, not to use the 1.8 million dollar feasibility study due to a conflict of interest, because it was conducted by a subsidiary of the Chinese partner CNPCI.

The study saddled Recope with costs from Soresco, such as land, fuel tanks, environmental damages and the expansion of the oil pier.

The comptroller general’s office ruled that the 16.28 profit margin established could be too high. A second consultancy, the U.S.-based Honeywell, also questioned that figure.

While the agreement creating Soresco stated that each partner would pay its own workers involved in the project, Recope paid half of the wages of the Chinese employees, as well as bonuses and incentives. Recope is seeking to be repaid 12 million dollars.

Solís held a bilateral working meeting with Chinese leader Xi Jinping on Jul 17 in Brasilia, during a summit of presidents of the Community of Latin American and Caribbean States (CELAC) with Xi, after the sixth summit of the BRICS (Brazil, Russia, India, China and South Africa) grouping.

The upgrade of the Moín refinery, which belongs to the state oil refinery Refinadora Costarricense de Petróleo (Recope), would increase its processing capacity from 18,000 to 60,000 barrels a day of crude. The company controls Costa Rica’s oil imports, and since 2011 it has had to purchase only refined products, because the plant was shut down.

The joint refinery project, or “Chinese refinery” as it is referred to locally, was criticised by politicians and a large part of organised civil society from the start.

“We have always defended the construction of a refinery, whether it was with China, Russia or France,” said Patrick Johnson, a leader of the oil workers’ union, the Sindicato de Trabajadores Petroleros Químicos y Afines.”We want the confusion to be cleared up…and if the project is beneficial, then it should go ahead because the country needs a refinery,” he told IPS.

In June 2013, the office of the comptroller general brought the initiative to a halt arguing that there were serious problems with a key feasibility study. Since then, the project has been on hold.

The renegotiations should overcome the first real hurdle that China has run into in Costa Rica. In 2007, this country became the first in Central America to establish diplomatic relations with China, in a part of the world that continues to have ties with Taiwan – incompatible with relations with China.

“Having an embassy here makes it easier to deal with matters with Central America,” Patricia Rodríguez, an expert on China who was an official in Costa Rica’s embassy in Beijing from 2008 to 2010, told IPS.

China is now Costa Rica’s second-biggest trading partner after the United States. This country’s sales to the Asian giant climbed from 91 million dollars in 2000 to 1.5 billion in 2011, when a free trade treaty signed in 2010 went into effect.

In strategic terms, the joint refinery between Recope and the state-run China National Petroleum Corporation International (CNPCI) is China’s star project in the country, and the joint venture Sociedad Reconstructora Chino Costarricense (Soresco) was set up in 2009 to carry it out.

The investment is to amount to 1.5 billion dollars, of which Soresco would receive 900 million in loans from the China Development Bank. The rest will come from the partners. The construction and remodeling of the plant will absorb 1.2 billion dollars of that total.

The work was to begin early this year and was to last 42 months. The comptroller general’s office’s decision to put it on hold was due, among other things, to the fact that the feasibility study was carried out by a subsidiary of CNPCI, which it said subverted the evaluation.

The resolution had the effect of “completely paralysing the refinery upgrade process by leaving it without the technical studies necessary for it to continue,” explained Recope in a lawsuit brought against the comptroller general’s office in response to the measure.

Despite the ruling by the comptroller general’s office, the administration of conservative President Laura Chinchilla (2010-May 2014) continued to defend the refinery modernisation project. But the centre-left Solís promised during the election campaign to renegotiate the agreement, because he considered several aspects of the contract negative for the country.

The request to renegotiate the contract had the support of political sectors and in particular of lawmaker Ottón Solís, an economist and university professor who was one of the first to speak out against certain facets of the agreement.

“We have enormous bargaining power here because China is desperate to open up negotiations with Costa Rica and this country has prestige,” Deputy Solís, of the governing Citizen Action Party, told IPS.

“If we insinuate that it’s impossible to negotiate with China because they take advantage of you with unfair contracts, the whole world will be put on the alert and other countries won’t want to negotiate with them,” and that gives Costa Rica bargaining power, he said.

One of the promises made was that the upgrade of the refinery will bring down fuel costs for consumers, who currently pay 41 percent extra in taxes and profit margins for service stations and Recope’s operating costs.

Petrol currently costs 1.48 dollars a litre in Costa Rica, which makes it the most expensive gasoline in Central America. Official figures from 2012 indicate that oil consumption in the country stood at 53,000 barrels per day.

“Fuel is a fundamental element for price stability because there are public services that depend on its price, like public transportation and electricity, and the same is true in the case of the productive apparatus,” the president of Costa Rica’s consumers association, Erick Ulate, told IPS.

During the meeting with President Solís, Xi also agreed to expand the timeframe for carrying out studies for the project of widening the road connecting San José with the Caribbean port of Limón, where 90 percent of the country’s exports are shipped out. The expansion of the road will be financed with a 395 million dollar loan from Beijing.

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Food – Thou Shall Not Waste http://www.ipsnews.net/2014/07/food-thou-shall-not-waste-2/?utm_source=rss&utm_medium=rss&utm_campaign=food-thou-shall-not-waste-2 http://www.ipsnews.net/2014/07/food-thou-shall-not-waste-2/#comments Tue, 29 Jul 2014 07:34:49 +0000 Silvia Giannelli http://www.ipsnews.net/?p=135788 Still edible food thrown away together with plastic bottles and empty crates at local food market in Lucca, Italy. Credit: Silvia Giannelli/IPS

Still edible food thrown away together with plastic bottles and empty crates at local food market in Lucca, Italy. Credit: Silvia Giannelli/IPS

By Silvia Giannelli
LUCCA, Italy, Jul 29 2014 (IPS)

“Only two years ago, the soup kitchen was serving 50 meals a day. Today the number has almost doubled and, what is even more worrying, we have started receiving families with children,” says Donatella Turri, director of the Caritas Diocese of Lucca.

The paradox is that the lengthening queues at the Lucca soup kitchen come against a backdrop of increasing food loss and waste.

Turri has no doubts concerning the impact of the current economic crisis on Italian families in terms of food security – “we call it ‘poverty of the third week’.”If our goal is to feed the planet, we cannot simply increase production and keep losing and wasting one-third of it. Our first commandment needs to be 'thou shall not waste' – Andrea Segré, President of Last Minute Market

“It means that the poor are no longer the homeless, the mentally ill and the drug addicts. More and more often we get requests for primary goods from families that simply cannot reach the end of the month with their salaries,” she told IPS.

Turri’s claims are confirmed at the national level by the yearly Italian National Institute of Statistics (ISTAT) report on poverty. According to the survey, absolute poverty [the threshold below which a family cannot afford the goods and services that are essential to guarantee a barely acceptable standard of living] has maintained its steady increase in recent years, rising from 4.6 percent in 2010 to 7.9 percent in 2013.

“The traditional distinction between the quantitative aspect of food security being typical of developing countries, and the qualitative one being a concern of the industrialised world, is fading away,” Andrea Segré, Dean of the Faculty of Agriculture at Bologna University and President of Last Minute Market, a company that recovers unsold or non-marketable goods in favour of charity organisations, told IPS.

However, while access to food is also becoming increasingly difficult for the low-income class of developed countries, the Food and Agriculture Organization (FAO) reports that Europe, North America and Oceania are top of the world’s food wasting classification, with a per capita food loss of almost 300 kg per year in North America.

“Food loss and waste are dependent on specific conditions and local circumstances,” Eliana Haberkon from FAO’s Office for Communications, Partnerships and Advocacy, explained to IPS.

“In low-income countries, food loss is mainly connected to managerial and technical limitations in harvesting techniques, storage, transportation, processing, cooling facilities, infrastructure, packaging, etc. … and food waste is expected to constitute a growing problem due to undergoing food system changes and due to factors such as expansion of supermarket chains and changes in diets and lifestyle.”

Currently, the biggest gap between rich and poor nations remains the quantity of food wasted at the consumer level. According to FAO figures, Europeans and North-Americans waste between 95 to 115 kg of food per capita every year, while in sub-Saharan Africa and South/Southeast Asia the number drops down to only 6 to 11 kg a year.

At the beginning of July, Last Minute Market, in cooperation with the SWG survey company, published a report called ‘Waste Watcher’. Using a complex questionnaire survey among Italian consumers, the outcomes paint a comprehensive picture of the social dynamics and behaviour of families that lead to food waste.

“The overall waste of food in Italy is worth 8.1 billion euro every year, and most of it comes from our houses. The rest of the losses, in agriculture, industries, distribution and service, can be recovered, but it is much less significant than what we throw in our bins,” said Segrè, commenting on the survey results.

Last Minute Market is now working to prepare the ground for a discussion on food waste during EXPO 2015, which will take place in under the heading ‘Feeding the planet, energy for life’.

“In order to be credible, EXPO needs to take into account the issue of food waste,” said Segré. “If our goal is to feed the planet, we cannot simply increase production and keep losing and wasting one-third of it. Our first commandment needs to be thou shall not waste.”

Indeed, as Haberon explained, the consequences of food loss and waste stretch far beyond their monetary value, “affecting current use and future availability and causing unnecessary pressure on natural resources.”

Studies by FAO estimated a yearly global quantitative food loss and waste of 30 percent of cereals, 40-50 percent of food crops (fruits and vegetables), 25 percent of oil seeds, meat and dairy products and 30 percent of fish.

Both Last Minute Market and Caritas agree on the paramount role of education in tackling food waste. In cooperation with more than ten local primary schools, the Caritas Diocese of Lucca has managed to recover excess food intact from school canteens for a value of 40,000 euro, taking it to the soup kitchens it manages.

This initiative has allowed it to develop a parallel food education project with the children of the schools involved.

“We obviously need normative support to help us reduce food waste, but first of all we must re-introduce food education, starting from primary schools,” said Segrè. “The current generation has completely lost the value of food and we must get it back.”

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Antigua Weighs High Cost of Fossil Fuels http://www.ipsnews.net/2014/07/antigua-weighs-high-cost-of-fossil-fuels/?utm_source=rss&utm_medium=rss&utm_campaign=antigua-weighs-high-cost-of-fossil-fuels http://www.ipsnews.net/2014/07/antigua-weighs-high-cost-of-fossil-fuels/#comments Mon, 28 Jul 2014 14:47:47 +0000 Desmond Brown http://www.ipsnews.net/?p=135794 The Petrotrin Oil Refinery in Trinidad and Tobago which has significant, proven fossil fuel reserves. Credit: Desmond Brown/IPS

The Petrotrin Oil Refinery in Trinidad and Tobago which has significant, proven fossil fuel reserves. Credit: Desmond Brown/IPS

By Desmond Brown
ST. JOHN’S, Antigua, Jul 28 2014 (IPS)

Caught between its quest to grow the economy, create jobs and cut electricity costs, and the negative impacts associated with building an oil refinery, the Antigua and Barbuda government is looking to a mix of clean energy and fossil fuels to address its energy needs.

Venezuela’s ambassador to Antigua, Carlos Perez, announced last week that Caracas was at an advanced stage of negotiations with the government in St. John’s to build an oil refinery on the tiny 108-square-mile island.“No good can come from the oil refinery. The environmental concerns associated with the burning of fossil fuel in a country whose main industry is tourism are many." -- Chante Codrington

“The pending negotiations for the oil refinery I believe are well advanced and we’re hoping with this new administration of Prime Minister [Gaston] Browne we will advance to conclude that project that will be beneficial for Antigua and for Venezuela too,” Perez said.

Browne’s Antigua and Barbuda Labour Party won General Elections on Jun. 12 after 10 years in opposition.

Environmentalists, including Dominican Arthurton Martin, oppose the move and say it’s the worst possible time to make an announcement like this.

“The United Nations Inter-Governmental Panel on Climate Change (IPCC) just released its 2014 report presenting evidence that not only can we expect a two degree centigrade rise in global temperatures but [possibly] a four degree centigrade rise, which will result in significant increases in coastal damage from sea level rise for countries like Antigua that are relatively flat,” Martin told IPS.

“This will in fact result in significant extension of periods of drought as a result of fluctuations in temperature. This is also happening at a time when there are so many options that could deal with part of the energy challenge,” he added.

Martin said the refinery was a bad choice not only because of the global movement to avert catastrophic climate change, but because cleaner alternatives are readily available.

He suggested instead that government look into sources like biofuel, solar and wind energy to reduce reliance on crude oil. These sources of energy have already been developed and financing exists to explore these options.

“These technologies are off the shelf. You can purchase them right now. You don’t even have to do R&D to develop them,” he said.

“This is the first time in the history of the international financial community that they have in fact made grants and concessionary loan financing available to actually reduce the dependence on fossil fuel for energy.”

Environmentalists stress that oil refineries are a major source of greenhouse gas emissions and other pollutants.

Oil refineries also emit methane and nitrous oxide, which are more potent greenhouse gases than carbon dioxide, as well as several other air contaminants that pose risks to human health and the environment such as hydrogen sulfide, sulfur dioxide, nitrogen oxides, particulate matter, and volatile organic compounds.

Chante Codrington, director of Wadadli Industrial Renewable Energy Ltd, who is in negotiations with the government of Antigua and Barbuda to build a wind farm here, is of the view that wind energy is the most efficient and affordable energy source for the island.

“No good can come from the oil refinery. The environmental concerns associated with the burning of fossil fuel in a country whose main industry is tourism are many,” he told IPS.

“There is an odor that comes from the oil refinery, air pollution, water contamination concerns, fire, explosions, noise pollution, health effects – these are all the disadvantages.”

Clean energy advocate John Burke agrees with Codrington, telling IPS it would benefit the island’s poor more if the country goes green.

“The price of oil is going to go up. The last time I heard the price of sun and wind had not gone up. Currently, every kilowatt hour we’re generating we’re spending about 80 or 90 cents EC on fuel. If they put together a programme to finance and install solar systems for the poor and the middle class that would in effect be financed by the amount of money we save from importing oil.”

According to a report by the Economic Commission for Latin America and the Caribbean (ECLAC), energy demand in the region is expected to double in the next 20 years, at a 3.7 per cent average annual rate of increase.

Currently, most Caribbean countries are heavily reliant on imported fossil fuels, their energy consumption being based almost solely on oil products, which account for more than 97 per cent of the energy mix.

Trinidad and Tobago, Cuba, the Dominican Republic and Barbados cover part of their fuel requirements from their own reserves of oil and natural gas. Nevertheless, only Trinidad and Tobago has significant, proven fossil fuel reserves.

Several Caribbean countries spend 15 to 30 percent of their export earnings, inclusive of revenues from tourism, on oil products. This results in electricity prices of between 20 and 35 cents per kWh, much higher than in the United States or Europe.

Peter Lewis, managing director of the Bermuda-based Carib Energy Solutions, said the government should consider the environmental factors associated with an oil refinery.

“If the global trend of a mixed-bag approach is the best option for the pursuit of an energy agenda…you would be able to attract more entrepreneurs to the business sector and get the economy going,” he told IPS.

Martin also agrees with the mixed-bag approach.

“No single source of power should be allowed to deal with your entire energy bill. That is a bad thing to do,” he said.

“We had our banana experience in Dominica when we placed all our bets on one crop. My advice is no country should place all its bets on any one source of power. Even Venezuela is understanding that right now.

“So if solar can contribute three per cent, if wind can give you 15 per cent, if biomass conversion can give you 20 per cent, what you are doing is effectively reducing your dependence on the dirtiest form of energy which is fossil fuel driven energy,” Martin added.

In early 2007, the government of Dominica announced plans for Venezuela to construct an oil refinery on the island but after a barrage of objections was raised by environmentalists, plans for the plant were placed on hold in 2008.

Editing by: Kitty Stapp

The writer can be contacted at destinydlb@gmail.com

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Drought and Misuse Behind Lebanon’s Water Scarcity http://www.ipsnews.net/2014/07/drought-and-misuse-behind-lebanons-water-scarcity/?utm_source=rss&utm_medium=rss&utm_campaign=drought-and-misuse-behind-lebanons-water-scarcity http://www.ipsnews.net/2014/07/drought-and-misuse-behind-lebanons-water-scarcity/#comments Mon, 28 Jul 2014 08:55:54 +0000 Oriol Andrés Gallart http://www.ipsnews.net/?p=135775 Tank trucks being filled with water in front of Osman Bin Affan Mosque in Beirut. Credit: Oriol Andrés Gallart/IPS

Tank trucks being filled with water in front of Osman Bin Affan Mosque in Beirut. Credit: Oriol Andrés Gallart/IPS

By Oriol Andrés Gallart
BEIRUT, Jul 28 2014 (IPS)

In front of Osman Bin Affan Mosque, in a central but narrow street of Beirut, several tank trucks are being filled with large amounts of water. The mosque has its own well, which allows it to pump water directly from the aquifers that cross the Lebanese underground. Once filled, the trucks will start going through the city to supply hundreds of homes and shops.

In a normal year, the water trucks do not appear until September, but this year they have started working even before summer because of the severe drought currently affecting Lebanon.

This comes on top of the increased pressure on the existing water supply due to the presence of more than one million Syrian refugees fleeing the war, exacerbating a situation which may lead to food insecurity and public health problems.“The more we deplete our groundwater reserves, the less we can rely on them in the coming season. If next year we have below average rainfalls, the water conditions will be much worse than today” – Nadim Farajalla of the Issam Fares Institute (IFI)

Rains were scarce last winter. While the annual average in recent decades was above 800 mm, this year it was around 400 mm, making it one of the worst rainfall seasons in the last sixty years.

The paradox is that Lebanon should not suffer from water scarcity. Annual precipitation is about 8,600 million cubic metres while normal water demand ranges between 1,473 and 1,530 million cubic metres per year, according to the Impact of Population Growth and Climate Change on Water Scarcity, Agricultural Output and Food Security report published  in April by the Issam Fares Institute (IFI) at the American University of Beirut.

However, as Nadim Farajalla, Research Director of IFI’s Climate Change and Environment in the Arab World Programme, explains, the country’s inability to store water efficiently, water pollution and its misuse both in agriculture and for domestic purposes, have put great pressure on the resource.

According to Bruno Minjauw, Food and Agriculture Organization (FAO) representative ad interim in the country as well as Resilience Officer, Lebanon “has always been a very wet country. Therefore, the production system has never looked so much at the problem of water.”

Referring to the figures for rainfall, Minjauw says that “what we are seeing is definitely an issue of climate change. Over the years, drought or seasons of scarcity have become more frequent”. In his opinion, the current drought must be taken as a warning: “It is time to manage water in a better way.”

However, he continues, “the good news is that this country is not exploiting its full potential in terms of sustainable water consumption, so there’s plenty of room for improvement.”

Meanwhile, water has become an issue, with scarcity hitting particularly hard the agricultural sector, which accounts for 60 percent of the water consumed despite the sector’s limited impact on the Lebanese economy (agriculture contributed to 5.9% of the country’s gross domestic product in 2011).

“Some municipalities are limiting what farmers can plant,” explains Gabriel Bayram, an agricultural advisor with KDS, a local development consultancy.

Minjauw believes that there is a real danger “in terms of food insecurity because we have more people [like refugees] coming while production is diminishing.” Nevertheless, he points out that the current crisis has increased the interest of government and farmers in “increase the quantity of land using improved irrigation systems, such as the drip irrigation system, which consume much less water.” Drip irrigation saves water – and fertiliser – by allowing water to drip slowly through a network of  tubes that deliver water directly to the base of the plant.

FAO is also working to promote the newest technologies in agriculture within the framework of a 4-year plan to improve food security and stabilise rural livelihoods in Lebanon.

Sheik Osama Chehab, in charge of the Osman Bin Affan Mosque, explains that, 20 years ago, water could be found three metres under the ground surface. “Yesterday,” he told IPS, “we dug 120 metres and did not find a drop.”

Digging wells has long been the main alternative to insufficient public water supplies in Lebanon and, according to the National Water Sector Strategy, there are about 42,000 wells throughout the country, half of which are unlicensed.

However, notes Farajalla “this has led to a drop in the water table and along the coast most [aquifers] are experiencing sea water intrusion, thus contaminating these aquifers for generations to come. The more we deplete our groundwater reserves, the less we can rely on them in the coming season. If next year we have below average rainfalls, the water conditions will be much worse than today.”

Besides, he cautions, “most of these wells have not passed quality tests. Therefore there are also risks that water use could trigger diseases among the population.”

The drought is also exacerbating tensions between host communities and Syrian refugees.

The rural municipality of Barouk, for example, whose springs and river supply water to big areas in Lebanon, today can count on only 30 percent of the usual quantity of water available. However, consumption needs have risen by around 25 percent as a result of the presence of 2,000 refugees and Barouk’s deputy mayor Dr. Marwan Mahmoud explains that this has generated complaints against newcomers.

However, Minjauw believes that “within that worrisome context, there is the possibility to mitigate the conflict and turn it into a win-win situation, employing both host and refugee communities in building long-term solutions for water management and conservation as well as forest maintenance and management. This would be beneficial for Lebanese farmers in the long term while enhancing the livelihoods of suffering people.”

For Farajalla, part of the problem related to water is that “there is a general lack of awareness and knowledge among decision-makers” in Lebanon, and he argues that it is up to civil society to lead the process, pressuring the government for “more transparency and better governance and accountability” in water management.

He claims that “the government failed with this drought by not looking at it earlier.” So far, a cabinet in continuous political crisis has promoted few and ineffective measures to alleviate the drought. One of the most recent ideas was to import water from Turkey, with prohibitive costs.

“Soon, you will also hear about projects to desalinate sea water,” says Farajalla. “Both ideas are silly because in Lebanon we can improve a lot of things before resorting to these drastic measures.”

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A Carrot Is a Carrot – or Is It? http://www.ipsnews.net/2014/07/a-carrot-is-a-carrot-or-is-it/?utm_source=rss&utm_medium=rss&utm_campaign=a-carrot-is-a-carrot-or-is-it http://www.ipsnews.net/2014/07/a-carrot-is-a-carrot-or-is-it/#comments Mon, 28 Jul 2014 07:09:54 +0000 Justin Hyatt http://www.ipsnews.net/?p=135770 Permaculture enthusiasts with their harvested produce. Credit: Graham Bell

Permaculture enthusiasts with their harvested produce. Credit: Graham Bell

By Justin Hyatt
BUDAPEST, Jul 28 2014 (IPS)

Food security is often thought of as a question of diversifying supply and being able to move food through areas plagued by local scarcity, relying on the global economic system – including trade and transport – as the basis for operations.

But there is a growing current of opinion that the answer lies much closer to home, by creating locally resilient food supplies which are less dependent on global systems and therefore on the political and economic crises that afflict these systems.

While both approaches have their place, one issue that they have in common is the goal of improving diets and raising levels of nutrition.

At the global level, this goal will take centre stage at the international conference on nutrition that the Food and Agriculture Organization (FAO) of the United Nations and the World Health Organization (WHO) are jointly organising in Rome from November 19 to 21 this year.“Farmers and nutritionists rarely discuss the nutritional quality of a carrot and how it could be improved through farming practices. Farmers are more concerned with yield and appearance while nutritionists typically assume that all carrots are created equal” – Bruce Darrel, food security expert

The organisers will be seeking political commitment for funding improved nutrition programmes as well as including nutrition-enhancing food systems in national development policies. They are also likely to attempt to give the Zero Hunger Challenge in the post-2015 United Nations development agenda fresh momentum.

In the meantime, one task that many say still remain is how to address nutrition in a holistic way, ranging from soil health to plant and animal health as well as to education about food storage and preparation methods that maximise nutrition.

Canadian food security expert Bruce Darrell believes that there are currently few examples of holistic approaches to nutrient management that incorporate strategies for nutrient levels and develop efficient nutrient cycling. “Perhaps this is not surprising when dealing with something that is essentially invisible and which has no generally recognised name as a concept,” he argues.

In his daily work, Darrell examines the role of mineral nutrients in soil, how they are depleted by farming practices, and their implications for healthy food.

According to Darrell’s accumulated knowledge, a single carrot can be more than twice as high in nutrients as that of another carrot grown in poor quality soil, which contains less than half the amount of sugars, vitamins and minerals.

A lack of knowledge about these things needs to be overcome, says Darrell: “Farmers and nutritionists rarely discuss the nutritional quality of a carrot and how it could be improved through farming practices. Farmers are more concerned with yield and appearance while nutritionists typically assume that all carrots are created equal.”

While the carrot is only one example of a whole range of food and nutrition issues, it is becoming clearer that the knowledge gap can be and is gradually being overcome.

Increasingly, individuals and small grassroots organisations are getting together to develop whole-systems approaches to nutrition. There are also more and more networks emerging globally to understand food.

“Not all of us have the luxury to decide exactly how we feed ourselves,” Ágnes Repka, a raw food expert from Hungary and one of the coordinators of the Future of Food European Learning Partnership, told IPS. “But many of us can make a choice on how to prepare the ingredients we have. Keeping as much of our food in their natural, raw form is one of the best ways to maintain its nutrients.”

The Partnership aims to bring sustainable food initiatives from different parts of Europe to one place and learn from each other, bringing the insights regarding sustainable agriculture and healthy food to a new level of understanding.

Repka stressed that when the members of the Partnership think about the healthiest possible food, “we mean what is healthy for our body, for our mind, for our communities and our planet.”

In order to communicate the new-found gains in the world of nutrition and to promote awareness in food education, Ireland’s Truefood Academy comes just at the right time.

Colette McMahon and Casandra Cosgrove of the Academy explain their reasons for putting an educational component in their nutrition-related work: “As nutritional therapists we have found that the practical skills and understanding of basic nutrition is poor and so began to develop and implement an outreach programme in a workshop format.”

The approach has proved successful and beneficial, deepening the understanding of the nutritional impact of traditional food preparation skills, which has demonstrated positive measurable results in the quality of life of the participants.

Meanwhile, across the Irish Sea in southern Scotland, Graham Bell grows over a metric ton of food on less than a 0.1 hectare garden and envisions permaculture as an apt and wise approach to sustainable and nutritious food harvesting.

“The great opportunity is for people to grow as much of their own food as possible,” says Bell. “The first need is to ensure access to land but a lot can be done on very little as we are proving. The next step is to ensure people have the skills to grow what they need.”

“Good change takes time,” adds Bell. “It is incremental. Permaculture is not a missionary activity. It is about modelling better ways of behaving. Better for ourselves, our families, our friends and neighbours – and better for people we don’t know.”

Building durable, sustainable systems is a “one day at a time” approach, according to Bell – not an overnight solution. It involves a lot of sweat, toil and trial, but it is worthwhile, he and other practitioners say.

This summer, a permaculture gathering is taking place in Bulgaria, with the next gathering already scheduled at the Sieben Linden eco-village in Germany. Repka is an avid fan of such meetings and enjoys visiting and learning new things as well as sharing her knowledge.

“Learning how to get the most out of our food is a simple way that we can improve our health,” explained Repka. Uncooked plant based foods, such as vegetables, fruits, nuts and seeds in their raw form give our body more vitality, energy and health is Repka’s message.

“These are the simple choices we can make every day,” she added.

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OPINION: The Affinity Between Iraqi Sunni Extremists and the Rulers of Saudi Arabia http://www.ipsnews.net/2014/07/opinion-the-affinity-between-iraqi-sunni-extremists-and-the-rulers-of-saudi-arabia/?utm_source=rss&utm_medium=rss&utm_campaign=opinion-the-affinity-between-iraqi-sunni-extremists-and-the-rulers-of-saudi-arabia http://www.ipsnews.net/2014/07/opinion-the-affinity-between-iraqi-sunni-extremists-and-the-rulers-of-saudi-arabia/#comments Sun, 27 Jul 2014 11:58:06 +0000 Peter Custers http://www.ipsnews.net/?p=135767 By Peter Custers
LEIDEN, Netherlands, Jul 27 2014 (IPS)

Which story line sounds the more credible – that linking the rebel movement ISIS (the Islamic State in Iraq and Syria) to policies pursued by Iran or that linking the Sunni extremist force to Iran’s adversary Saudi Arabia?

In June this year, fighters belonging to ISIS – a rebel movement that had previously established its foothold in the oil-rich areas of north-eastern Syria – succeeded in capturing Mosul, a city surrounded by oil fields in northern Iraq. Ever since, commentators in the world’s media have been speculating on the origins of the dreaded organisation’s military success.

It is admitted that the occupation of Mosul and vast tracts of the Sunni-dominated portion of Iraq would not have been possible except for the fact that ISIS forged a broad grassroots’ alliance expressing deep discontent by Iraq’s minority Sunnis with the policies of Iraqi Prime Minister Nouri Al-Maliki’s government. Nor would Mosul have fallen but for the dramatic desertion by top-officers of Iraq’s state army.

Peter Custers

Peter Custers

Yet various observers have meanwhile focused on the political economy behind the advance of ISIS. Some experts from U.S. think tanks have discussed the likely sources of ISIS’ finance, pinpointing private donors in Saudi Arabia and other Gulf states. Other writers instead have connected ISIS’ reliance on black market sales of oil in Kurdish territory with Iranian exports of crude, described as “illegal”.

I propose putting the spotlight on the methods of war financing used by ISIS, but first it is necessary to highlight the movement’s complete sectarianism.

Soon after the occupation of Mosul, rebels blew up and bulldozed shrines and mosques in the city belonging to Shia Muslims. Pictures on the demolition of these buildings were circulated widely by the world’s mainstream media. Unfortunately, few Western journalists cared to draw attention to the role which destruction of shrines has played in the history of Islam.

Contrary to Catholicism, the veneration of saints at Sufi and Shia tombs and shrines basically reflects heterodox tendencies within the Islamic faith. On the other hand, Sunni orthodoxy and especially its Saudi variety, Wahhabism, either condemns intercession or, at the least, considers the worshipping of saints at tombs to be unacceptable. Islam’s minority of Shias, and its mystical current of Sufism, freely engage in such worship – and this throughout the Muslim world.“ISIS is … a ‘religiously inspired’ Sunni extremist organisation with an utterly secular objective: to control the bulk of oil resources in two Middle Eastern states in order to re-establish acaliphat, an all-Islamic state-entity guided by a central religious authority”

ISIS’ work of demolition in Iraq can in no way be equated with practices of Iran’s Shia rulers. Instead, they express the extremist movement’s affinity with policies long championed by Saudi Arabia. Ever since the founding of the Saudi state, numerous Shia and Sufi shrines have been rased to the ground at the behest of this country’s Wahhabi dynasty.

What does the political economy behind ISIS’ military advance in Syria and Iraq tell us about the organisation’s affinities? First, in one sense, the ISIS strategy might be interpreted as rather novel.

Whereas the extraction of raw materials is a war strategy pursued by numerous rebel movements in the global South – see, for example, UNITA’s extraction of diamonds in the context of Angola’s civil war, and the trade in coltan by rebels in the Democratic Republic of Congo – rarely has a Southern rebel movement succeeded in turning crude oil into its chief source of revenue.

Indeed, whereas ISIS originally relied on private funders in Saudi Arabia to build up a force of trained fighters, the organisation has consciously targeted regions in Syria and Iraq harbouring major oil fields and (in the case of Iraq) oil refineries. By laying siege to the oil refinery at Baiji, responsible for processing one-third of oil consumed in Iraq, ISIS hoped to undermine the state’s control of oil resources.

Further, some 450 million dollars was stolen by ISIS fighters from a subsidiary of Iraq’s central bank after the occupation of Mosul. This reportedly was all income from oil extraction. Some observers put the cash income which ISIS derives from smuggled oil at one million dollars a day!

ISIS is thus a ‘religiously inspired’ Sunni extremist organisation with an utterly secular objective: to control the bulk of oil resources in two Middle Eastern states in order to re-establish acaliphat, an all-Islamic state-entity guided by a central religious authority.

Yet though ISIS’ methodology of reliance on oil for financing of its war campaigns is novel for a rebel movement, such use of oil is not unique in the context of the Middle East. Ever since the 1970s, most oil-rich countries of the region have squandered a major part of their income from the exports of crude by (indirectly) exchanging their main natural resource against means of destruction – weapon systems bought on the international market.

And while Iran under the Shah was equally enticed into opting for this form of trade in the 1970s, – it is the Wahhabi kingdom of Saudi Arabia which all the way through from the oil crisis of 1973 onwards and up to today has functioned as the central axe of such a trade mechanism.

Witness, for instance, the 1980s oil-for-arms (!) ‘barter deal’ between the Saudi kingdom and the United Kingdom, the so-called ‘Al Yamamah’ deal, and the 60 billion dollar, largest-ever international arms’ agreement between Saudi Arabia and the United States clinched in 2010.

Forward to 2014, and an Iraq desperately struggling to survive. A section of the world’s media has already announced its impending demise, predicting a split of the country into three portions – Sunni, Kurdish and Shia. On the other hand, some commentators have advised that the United States should now change gear and line up with Iran, in order to help the Iraqi government overcome its domestic political crisis.

Yet the United States and its European allies for long, too long, have bent over to service the Wahhabi state. Even as Western politicians loudly proclaimed their allegiance to democracy and secularism, they failed to oppose or counter Saudi Arabia’s oppression of, and utter discrimination against, Shia citizens.

For over 40 years they opted to close their eyes and supply Saudi Arabia with massive quantities of fighter planes, missiles and other weaponry, in exchange for the country’s crude. Playing the role of a wise elderly senior brother, the United States has recently advised Iraq’s prime minister al-Maliki, known for his sectarian approach, that he should be more ‘inclusive’, meaning sensitive towards Iraq’s minority Sunni population.

But has the United States’ prime Middle Eastern ally Saudi Arabia ever been chastised over its systematic discrimination of Shias? Has it ever been put to task for its cruel oppression of heterodox Muslims? And has the United States ever pondered the implications of the trading mechanism of disparate exchange it sponsored – for the future of democracy, food sovereignty and people’s welfare in the Middle East?

 

*  Peter Custers, an academic researcher on Islam and religious tolerance  with field work in South Asia, is also a theoretician on the arms’ trade and extraction of raw materials in the context of conflicts in the global South. He is the author of ‘Questioning Globalized Militarism’. 

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Fish Before Fields to Improve Egypt’s Food Production http://www.ipsnews.net/2014/07/fish-before-fields-to-improve-egypts-food-production/?utm_source=rss&utm_medium=rss&utm_campaign=fish-before-fields-to-improve-egypts-food-production http://www.ipsnews.net/2014/07/fish-before-fields-to-improve-egypts-food-production/#comments Sat, 26 Jul 2014 09:07:35 +0000 Cam McGrath http://www.ipsnews.net/?p=135752 Fish cages on the Nile River. Experts are calling for a more holistic approach to aquaculture. Credit:  Cam Mcgrath/IPS

Fish cages on the Nile River. Experts are calling for a more holistic approach to aquaculture. Credit: Cam Mcgrath/IPS

By Cam McGrath
CAIRO, Jul 26 2014 (IPS)

Less than four percent of Egypt’s land mass is suitable for agriculture, and most of it confined to the densely populated Nile River Valley and Delta. With the nation’s population of 85 million expected to double by 2050, government officials are grappling with ways of ensuring food security and raising nutritional standards.

“With the drive toward increasing food production and efficiency, Egypt is going to have to become smarter in how it uses water and land for food production,” says aquaculture expert Malcolm Beveridge. “It would make sense to bring aquaculture together with agriculture in order to increase food production per unit of land and water.”“Why are we using water first for agriculture then taking the drainage for aquaculture? Surely it should be the opposite – use water first for aquaculture and after that to irrigate fields” – Sherif Sadek, general manager of the Cairo-based Aquaculture Consultant Office

One possibility under study is to adopt integrated aquaculture, a holistic approach to food production in which the wastes of one commercially cultured species are recycled as food or fertiliser for another. Projects typically co-culture several aquatic species, but the synergistic approach also encourages the broader integration of fish production, livestock rearing and agriculture.

“An integrated approach would seem the logical next step for Egypt’s aquaculture industry in that it can significantly reduce water requirements while increasing fish farmers’ revenues,” Beveridge told IPS.

Egypt’s aquaculture sector has witnessed explosive growth in recent decades. Annual production of farmed fish climbed from 50,000 tonnes in the late 1990s to over one million tonnes last year – exceeding the combined output of all other Middle East and African nations.

But fish farming as it is predominantly practised in Egypt – by simply digging a pit and filling it with water and fish – has a major drawback. A decades-old government decree requires that drinking water and crop irrigation be given first call on Nile water, leaving aquaculture projects to operate in downstream filth, contaminating fish and limiting productivity.

“Over 90 percent of the aquaculture in Egypt is based on agricultural drainage water, with plenty of pesticides, sewage and industrial effluents,” says Sherif Sadek, general manager of the Cairo-based Aquaculture Consultant Office.

“Why are we using water first for agriculture then taking the drainage for aquaculture? Surely it should be the opposite – use water first for aquaculture and after that to irrigate fields.”

Integrated aquaculture reverses the water-use paradigm, with tangible benefits to both fish farms and farmers’ crops. While the practice is still in its infancy in Egypt, several projects have demonstrated its commercial viability.

At the El Keram farm in the desert northwest of Cairo, farmers use pumped water for tilapia culture, recycling the water into ponds where catfish are raised. The drainage from the catfish ponds, rich in organic nutrients, is then used to irrigate and fertilise clover fields. Sheep and goats that graze on these fields generate manure that is used to produce biogas to heat the tanks where fish fry are raised, or to warm the fish ponds in the winter.

“The project has demonstrated how farmers who switched to aquaculture after salinity rendered their fields infertile can increase their productivity and profits using the same volume of water,” says Sadek.

Other integrated projects on reclaimed desert land culture marine aquatic species such as sea bass and sea bream, directing the downstream wastewater to pools of red tilapia, a table fish able to tolerate high salinity. According to Sadek, the brine from these ponds can be used to grow salicornia, a halophyte in demand as a biofuel input, livestock fodder and as a gourmet salad ingredient.

“Salicornia can be irrigated with extremely salty water and produces seeds and oil, as well as fodder for camels and sheep,” says Sadek.

According to development experts, integrated aquaculture delivers greater efficiencies, requiring up to 70 percent less water than comparable non-integrated production systems. It is also a cost-effective method of disposing of wastes and saves resource-poor farmers from having to purchase fertilisers.

Beveridge says small-scale Egyptian aquaculture ventures unable to afford the complex closed-loop system employed at El Keram could still benefit from integrated practices that would allow them to harvest commercial food products year-round.

“Egypt’s aquaculture industry has a problem in that the growing season is relatively short,” he notes. “During the months of December to February temperatures are too low to sustain much (fish) growth. And during that period, farmers who try to overwinter their fish often lose substantial numbers to stress and disease.”

Pilot studies have shown that fish farmers are able to capitalise on the nutrients locked up in the mud at the bottom of their earthen fish ponds.

“The idea is that you drain down your ponds in November, harvest your fish, then plant a crop of wheat in your pond bottom that you would harvest in March before flooding the stubble area with water and reintroducing young fish,” Beveridge explains.

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Oil Lubricates Equatorial Guinea’s Entry into Portuguese Language Community http://www.ipsnews.net/2014/07/oil-lubricates-equatorial-guineas-entry-into-portuguese-language-community/?utm_source=rss&utm_medium=rss&utm_campaign=oil-lubricates-equatorial-guineas-entry-into-portuguese-language-community http://www.ipsnews.net/2014/07/oil-lubricates-equatorial-guineas-entry-into-portuguese-language-community/#comments Fri, 25 Jul 2014 16:10:59 +0000 Mario Queiroz http://www.ipsnews.net/?p=135748 Equatoguinean President Obiang Nguema Mbasogo has sidestepped accusations of human rights violations and won his country membership in the Community of Portuguese Language Countries (CPLP). Credit: Embassy of Equatorial Guinea/CC-BY-ND-2.0

Equatoguinean President Obiang Nguema Mbasogo has sidestepped accusations of human rights violations and won his country membership in the Community of Portuguese Language Countries (CPLP). Credit: Embassy of Equatorial Guinea/CC-BY-ND-2.0

By Mario Queiroz
LISBON, Jul 25 2014 (IPS)

Evidently, oil talked louder. By unanimous resolution, the Community of Portuguese Language Countries (CPLP) admitted Equatorial Guinea as a full member, in spite of the CPLP’s ban on dictatorial regimes and the death penalty.

At the two-day summit of heads of state and government that concluded on Wednesday Jul. 23 in Dili, the capital of East Timor, Portugal was the last nation to hold out against the inclusion of the new entrant. Portuguese prime minister, conservative Pedro Passos Coelho, finally yielded to pressure from Brazil and Angola, the countries most interested in sharing in the benefits of Equatorial Guinea’s oil wealth.

The CPLP is made up of Angola, Brazil, Cape Verde, East Timor, Guinea-Bissau, Mozambique, Portugal, and São Tomé and Príncipe.

“Obiang never thought entry to the CPLP would be possible, but in oil-rich Equatorial Guinea, all the president’s goals are possible." -- Ponciano Nvó, a lawyer and distinguished defender of human rights
Between its independence in 1968 and the onset of oil exploration, Equatorial Guinea was stigmatised as a ferocious dictatorship.

But when the U.S. company Mobil began drilling for oil in 1996, the dictatorship of President Teodoro Obiang, in power since 1979, was afforded the relief of powerful countries “looking the other way.”

Gradually, the importance of oil took precedence over human rights and countries with decision-making power over the region and the world became interested in sharing in crude oil extraction. Oil production in Equatorial Guinea has multiplied 10-fold in recent years, ranking it in third place in sub-Saharan Africa behind Angola and Nigeria.

“The kleptocratic oligarchy of Equatorial Guinea is becoming one of the world’s richest dynasties. The country is becoming known as the ‘Kuwait of Africa’ and the global oil majors – ExxonMobil, Total, Repsol – are moving in,” said the Lisbon weekly Visão.

Visão said this former Spanish colony has a per capita GDP of 24,035 dollars, 4,000 dollars more than Portugal’s, but 78 percent of its 1.8 million people subsist on less than a dollar a day.

In the view of some members of the international community, “Since 1968 there have been two Equatorial Guineas, those before and after the oil,” Ponciano Nvó, a lawyer and distinguished defender of human rights in his country, told IPS during a three-day visit to Portugal at the invitation of Amnesty International.

In spite of average economic growth of 33 percent in the last decade, the enormous wealth of Equatorial Guinea has not brought better economic conditions for its people, although it has lent a certain international “legitimacy” to the regime, crowned now with the accolade of membership in the CPLP.

Since Equatorial Guinea’s first application in 2006, the CPLP adopted an ambiguous stance, restricting it to associate membership and setting conditions – like the elimination of the death penalty and making Portuguese an official language – that had to be met before full membership could be considered.

“Portugal should not accept within the community a regime that commits human rights violations; it would be a political mistake,” and also a mistake for the CPLP, Andrés Eso Ondo said in a declaration on Tuesday Jul. 22.

He is the leader of Convergencia para la Democracia Social, the only permitted opposition party, which has one seat in parliament. The other 99 seats are held by the ruling Partido Democrático de Guinea Ecuatorial.

In Portugal, reactions were indignant. The president himself, conservative Aníbal Cavaco Silva, remained wooden-faced in his seat in Dili while the other heads of state welcomed Obiang to the CPLP with a standing ovation. Meanwhile, in Lisbon, prominent politicians were heavily critical of the government’s accommodating attitude.

Socialist lawmaker João Soares said allowing Equatorial Guinea to join the CPLP is “shameful for Portugal and a monumental error,” while Ana Gomes, a member of the European Parliament for the same party, said it was unacceptable that the community should admit “a dictatorial and criminal regime that is facing lawsuits in the United States and France for economic and financial crimes.”

“The dead are not only those who have been sentenced to death in a court of law, some 50 persons executed by firing squad after being convicted; we should multiply that number by 100 to reach the figure for the people who have disappeared,” and who were victims of repression, Nvó told IPS.

In the 46 years since independence, “during the first government of Francisco Macías Nguema, all the opposition leaders were murdered in prison, without trial, having been accused of attempts against the president. The ‘work’ was carried out by the current president, when he was director of prisons and carried out a cleansing, before overthrowing his uncle,” he said.

Before oil was discovered, “Obiang never thought entry to the CPLP would be possible, but in oil-rich Equatorial Guinea, all the president’s goals are possible,” he complained.

In Nvó’s view, joining the CPLP “is another step in Obiang’s strategy of belonging to as many international bodies as possible for the sake of laundering his image. He used to belong to the community of Hispanic nations, but then he came to believe that he would never get anywhere with Spain; then he joined La Francophonie, but that did not last because of his son’s troubles with the French courts.”

Now, however, the CPLP has been satisfied with a moratorium on the death penalty, which remains on the statute books. Its enforcement depends only on the fiat of the head of state. “It’s an intellectual hoax,” Nvó said.

The Equatoguinean foreign minister, Agapito Mba Mokuy, told the Portuguese news agency Lusa on Tuesday that his country “was colonised for a longer period by Portugal than by Spain (307 years under Portugal compared to 190 under Spain), so that the ties to Portuguese-speaking countries are historically very strong.”

“Joining the CPLP today is simply coming home,” he said.

In a telephone interview with IPS, former president of East Timor José Ramos-Horta said, “I agree with the forceful criticisms denouncing the death penalty and serious human rights violations that are committed in that country.” In his view the denunciations of the regime made by international organisations are to be credited.

However, Ramos-Horta believes that “concerted, intelligent, prudent and persistent action by the CPLP upon the regime in Equatorial Guinea will achieve the first improvements after some time.”

In exchange for admission, Ramos-Horta recommended the CPLP should establish an agenda to force Obiang to eliminate the death penalty, torture, arbitrary detentions and forcible disappearances.

It should also include, he said, improved facilities and treatment for prisoners; access to inmates by the International Red Cross; and later on, the opening of an office of the United Nations High Commissioner for Human Rights in Malabo.

One of the most critical voices raised against the events in Dili was that of political sciences professor José Filipe Pinto, who asserted that a sort of “chequebook diplomacy” had prevailed there, with Malabo offering to make investments in CPLP countries, relying on its resource wealth.

In his opinion, “an organisation must have interests and principles,” and he regretted that “some elites and the crisis conspired to exempt the latter.”

(END)

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Cameroon’s Rising Sea Drowns Tourism http://www.ipsnews.net/2014/07/cameroons-rising-sea-drowns-tourism/?utm_source=rss&utm_medium=rss&utm_campaign=cameroons-rising-sea-drowns-tourism http://www.ipsnews.net/2014/07/cameroons-rising-sea-drowns-tourism/#comments Thu, 24 Jul 2014 07:19:31 +0000 Monde Kingsley Nfor http://www.ipsnews.net/?p=135711 Fisherman in Kribi, Cameroon, say this is the last stretch of beach with enough space for them to anchor their canoes. Credit- Monde Kingsley Nfor/IPS.jpg

Fisherman in Kribi, Cameroon, say this is the last stretch of beach with enough space for them to anchor their canoes. Credit- Monde Kingsley Nfor/IPS.jpg

By Monde Kingsley Nfor
KRIBI, Cameroon, Jul 24 2014 (IPS)

Pierre Zambo is a hotel manager in Kribi, a sea resort town in Cameroon’s South Region. In the past his hotel would have “more than 100 tourists each week. But today if I manage to have 50 people registered into my hotel weekly, then it’s good business.”

Located in the gulf of Guinea, Kribi is a town with an estimated population of about 50,000 whose livelihoods depend on farming, fishing and tourism.

However, rising sea levels and increased tides have eroded most of the once-sandy beach along Kribi. Now beaches are reduced to narrow muddy paths. And local hotels, bars and restaurants are feeling the impact of this erosion directly in their pockets as tourists reduce in numbers.

“Tourists come and are less interested in our beaches and prefer spending time in the forest attractions,” Zambo tells IPS.

Emmanuel Founga, a botanist, owns a hotel on Kribi’s coast."I have to make sand bags every August to October when the sea is very high to avoid further erosion of land and the danger of my walls collapsing." -- Pierre Zambo, Kribi hotel manager

“The Kribi coastline has eroded from about 50 to 100 metres since 1990. It is evident from the trees that are uprooted by waves today but were found inland some years ago,” Founga tells IPS.

He says the local population is losing an important source of livelihood as the number of tourists reduce, local restaurants and bars are beginning to close down.

“High degradation of the coast has a big implication on tourism in this region; sea level rise has caused not only erosion but has polluted the coast. Much waste from the Atlantic Ocean is swept by the sea to these beaches. The waves in return cause erosion of the banks, leaving the beaches muddy and filthy,” Founga explains.

“Climate change is having a devastating impact in Cameroon and the coast of Kribi is a perfect example of the problem of rising sea levels and the enormous impact on safety and livelihood of the population,” Tomothé Kagombet, the focal point person for the Kyoto Protocol at the Ministry of Environment Nature Protection and Sustainable Development, tells IPS.

Climate change is not only a coastal problem but has had widespread impact on this Central African nation. Across the country there are reports of limited and erratic rainfall, pests and plant diseases, erosion, high temperatures, droughts and floods.

Cameroon’s economy relies heavily on climate-sensitive sectors, mainly agriculture, energy and forestry — with 70 percent of the population depending directly on agriculture.

While Cameroon’s Ministry of Tourism is currently channeling funds from a United Nations World Tourism Organisation project called ST-EP or Sustainable Tourism – Eliminating Poverty to climate change projects along the coast, it is not enough.

Through ST-EP, various projects are being implemented in Kribi beach and its forests and along other coastal areas such as Douala and Limbe to help people adapt to the changing climate and develop their sites for tourism.

“Due the problem of a degrading coast, we are encouraging locals to also develop other touristic sites such as the forest with Baka pigmies and their rich culture, which recently has been a huge attraction. We have given funding for them to restore and  manage beaches from Kribi to Limbe and other sites,” Muhamadu Kombi, director of tourist sites in the Ministry of Tourism, tells IPS.

However, this is but one project. The concrete implementation of nationwide climate change adaptation strategies are lagging due to the absence of funding.

The National Climate Change Adaptation Plan (PENACC) provides strategies and actions to mitigate the effect of climate change, but Kagombet points out that Cameroon does not benefit from any funding from United Nations Framework Convention on Climate Change (UNFCC) negotiations.

“But one of the main problems facing Cameroon and other developing nations is the problems of implementation. We depend on funding from developed nations to better implement this elaborated adaptation plan of action.

“In this document [PENACC], Cameroon’s vulnerability is considered by sector and adaptation actions are formulated following these specificities. With the coastal ecosystem, for example, there is a need for both mechanical [building of dikes] and biological [planting of mangrove trees] means of adaptation,” Kagombet says.

An aspect of Cameroon’s planned action is the introduction of climate change as a subject in schools, with proposed syllabuses already available. The plan of action also prioritises actions in the industrial sector, waste management and transport sectors.

“It is a package with every requirement; capacity, technology and other resources needed to adapt and mitigate climate change effects,” Kagombet says.

While Cameroon plans to implement and carry out Reducing Emissions from Deforestation and Forest Degradation (REDD) projects, operational dawdling could hinge on the country’s commitments to mitigate climate change.

Meanwhile, those who have not benefited from adaptation projects in Kribi find that not only their livelihoods are threatened, but that they are constantly paying out of their own pockets to adapt to a changing climate.

“These high tides has brought many problems. I have to make sand bags every August to October when the sea is very high to avoid further erosion of land and the danger of my walls collapsing,” Zambo says.

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Forest Rights Offer Major Opportunity to Counter Climate Change http://www.ipsnews.net/2014/07/forest-rights-offer-major-opportunity-to-counter-climate-change/?utm_source=rss&utm_medium=rss&utm_campaign=forest-rights-offer-major-opportunity-to-counter-climate-change http://www.ipsnews.net/2014/07/forest-rights-offer-major-opportunity-to-counter-climate-change/#comments Thu, 24 Jul 2014 00:14:31 +0000 Carey L. Biron http://www.ipsnews.net/?p=135713 Salvadorans Elsy Álvarez and María Menjivar – with her young daughter – planning plantain seedlings in a clearing in the forest. Credit: Claudia Ávalos/IPS

Salvadorans Elsy Álvarez and María Menjivar – with her young daughter – planning plantain seedlings in a clearing in the forest. Credit: Claudia Ávalos/IPS

By Carey L. Biron
WASHINGTON, Jul 24 2014 (IPS)

The international community is failing to take advantage of a potent opportunity to counter climate change by strengthening local land tenure rights and laws worldwide, new data suggests.

In what researchers say is the most detailed study on the issue to date, new analysis suggests that in areas formally overseen by local communities, deforestation rates are dozens to hundreds of times lower than in areas overseen by governments or private entities. Anywhere from 10 to 20 percent of worldwide greenhouse gas emissions are attributed to deforestation each year."This model of government-owned and -managed forests usually doesn’t work. Instead, it often creates an open-access free-for-all.” -- Caleb Stevens

The findings were released Thursday by the World Resources Institute, a think tank here, and the Rights and Resources Initiative, a global network that focuses on forest tenure.

“This approach to mitigating climate change has long been undervalued,” a report detailing the analysis states. “[G]overnments, donors, and other climate change stakeholders tend to ignore or marginalize the enormous contribution to mitigating climate change that expanding and strengthening communities’ forest rights can make.”

Researchers were able to comb through high-definition satellite imagery and correlate findings on deforestation rates with data on differing tenure approaches in 14 developing countries considered heavily forested. Those areas with significant forest rights vested in local communities were found to be far more successful at slowing forest clearing, including the incursion of settlers and mining companies.

In Guatemala and Brazil, strong local tenure resulted in deforestation rates 11 to 20 times lower than outside of formally recognised community forests. In parts of the Mexican Yucatan the findings were even starker – 350 times lower.

Meanwhile, the climate implications of these forests are significant. Standing, mature forests not only hold massive amounts of carbon, but they also continually suck carbon dioxide out of the atmosphere.

“We know that at least 500 million hectares of forest in developing countries are already in the hands of local communities, translating to a bit less than 40 billion tonnes of carbon,” Andy White, the Rights and Resources Initiative (RRI)’s coordinator, told IPS.

“That’s a huge amount – 30 times the amount of total emissions from all passenger vehicles around the world. But much of the rights to protect those forests are weak, so there’s a real risk that we could lose those forests and that carbon.”

White notes that there’s been a “massive slowdown” in the recognition of indigenous and other community rights over the past half-decade, despite earlier global headway on the issue. But he now sees significant potential to link land rights with momentum on climate change in the minds of policymakers and the donor community.

“In developing country forests, you have this history of governments promoting deforestation for agriculture but also opening up forests through roads and the promotion of colonisation and mining,” White says.

“At the same time, these same governments are now trying to talk about climate change, saying they’re concerned about reducing emission. To date, these two hands haven’t been talking to each other.”

Lima link

The new findings come just ahead of two major global climate summits. In September, U.N. Secretary-General Ban Ki-moon will host international leaders in New York to discuss the issue, and in December the next round of global climate negotiations will take place in Peru, ahead of intended agreement next year.

The Lima talks are being referred to as the “forest” round. Some observers have suggested that forestry could offer the most significant potential for global emissions cuts, but few have directly connected this potential with local tenure.

“The international community hasn’t taken this link nearly as far as it can go, and it’s important that policymakers are made aware of this connection,” Caleb Stevens, a proper rights specialist at the World Resources Institute (WRI) and the new report’s principle author, told IPS.

“Developed country governments can commit to development assistance agencies to strengthen forest tenure as part of bilateral agreements. They can also commit to strengthen these rights through finance mechanisms like the new Green Climate Fund.”

Currently the most well-known, if contentious, international mechanism aimed at reducing deforestation is the U.N.’s REDD+ initiative, which since 2008 has dispersed nearly 200 million dollars to safeguard forest in developing countries. Yet critics say the programme has never fully embraced the potential of community forest management.

“REDD+ was established because it is well known that deforestation is a significant part of the climate change problem,” Tony LaVina, the lead forest and climate negotiator for the Philippines, said in a statement.

“What is not as widely understood is how effective forest communities are at protecting their forest from deforestation and increasing forest health. This is why REDD+ must be accompanied by community safeguards.”

Two-thirds remaining

Meanwhile, WRI’s Stevens says that current national-level prioritisation of local tenure is a “mixed bag”, varying significantly from country to country.

He points to progressive progress being made in Liberia and Kenya, where laws have started to be reformed to recognise community rights, as well as in Bolivia and Nepal, where some 40 percent of forests are legally under community control. Following a 2013 court ruling, Indonesia could now be on a similar path.

“Many governments are still quite reluctant to stop their attempts access minerals and other resources,” Stevens says. “But some governments realise the limitations of their capacity – that this model of government-owned and -managed forests usually doesn’t work. Instead, it often creates an open-access free-for-all.”

Not only are local communities often more effective at managing such resources than governments or private entities, but they can also become significant economic beneficiaries of those forests, eventually even contributing to national coffers through tax revenues.

Certainly there is scope for such an expansion. RRI estimates that the 500 million hectares currently under community control constitute just a third of what communities around the world are actively – and, the group says, legitimately – claiming.

“The world should rapidly scale up recognition of local forest rights even if they only care about the climate – even if they don’t care about the people, about water, women, biodiversity,” RRI’s White says.

“Actually, of course, people do care about all of these other issues. That’s why a strategy of strengthening local forest rights is so important and a no-brainer – it will deliver for the climate as well as reduce poverty.”

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Disasters Poised to Sweep Away Development Gains http://www.ipsnews.net/2014/07/disasters-poised-to-sweep-away-development-gains/?utm_source=rss&utm_medium=rss&utm_campaign=disasters-poised-to-sweep-away-development-gains http://www.ipsnews.net/2014/07/disasters-poised-to-sweep-away-development-gains/#comments Tue, 22 Jul 2014 17:39:42 +0000 Stephen Leahy http://www.ipsnews.net/?p=135682 Climate change effects, such as extreme weather events, drive up environmental remediation costs. Credit: Jorge Luis Baños/IPS

Climate change effects, such as extreme weather events, drive up environmental remediation costs. Credit: Jorge Luis Baños/IPS

By Stephen Leahy
UXBRIDGE, Canada, Jul 22 2014 (IPS)

Extreme poverty and hunger can be eliminated, but only through far greater efforts to reduce carbon emissions that are overheating the planet and producing punishing droughts, catastrophic floods and ever wilder weather, said climate activists involved in talks to set the Sustainable Development Goals (SDGs).

Last weekend, the United Nations released the 17 draft SDGs following a year and a half of discussion by more than 60 countries participating in the voluntary process."You can’t climb out of poverty if you have to rebuild your home every other year." -- Harjeet Singh

The SDGs are a set of goals and targets intended to eliminate extreme poverty and pursue sustainable development. When finalised in 2015, at the expiration of the eight Millennium Development Goals (MDGs), the SDGs are intended to be the roadmap for countries to follow in making environmental, social and economic policies and decisions.

“Disasters are a major reason many of the MDG goals will not be met,” said Harjeet Singh of ActionAid International, an NGO based in Johannesburg.

“A big flood or typhoon can set a region’s development back 20 years,” Singh, ActionAid’s international coordinator of disaster risk reduction, told IPS.

Last year’s Super Typhoon Haiyan killed more than 6,000 people and left nearly two million homeless in the Philippines, he said. Less than a year earlier, the Philippines was hit by Typhoon Bopha, which killed more than 1,000 people and caused an estimated 350 million dollars in damage.

In the past two weeks, the country was struck by two destructive typhoons. The Philippines may face another 20 before the end of typhoon season.

“Everything is affected by disasters — food security, health, education, infrastructure and so on. You can’t climb out of poverty if you have to rebuild your home every other year,” Singh said.

Goals for poverty elimination or nearly anything else in the proposed SDGs are “meaningless without reductions in carbon emissions”, he said.

Carbon emissions from burning oil, coal and gas are trapping heat from the sun. The amount of this extra heat-energy is like exploding 400,000 Hiroshima atomic bombs per day 365 days per year, according to James Hansen, a climate scientist and former head of the NASA Goddard Institute for Space Studies. As a result the entire planet is now 0.8 C hotter.

“All weather events are affected by climate change because the environment in which they occur is warmer and moister than it used to be,” Kevin Trenberth, senior scientist at the National Center for Atmospheric Research in Boulder, Colorado previously told IPS.

Climate change doesn’t necessarily cause weather disasters but it certainly makes them worse, said Trenberth, an expert on extreme events.

Climate and low-carbon development pathways need to be fully reflected in the SDGs, said  Bernadette Fischler, co-chair of Beyond 2015 UK. Beyond 2015 is a coalition of more than 1,000 civil society organisations working for a strong and effective set of SDGs.

“Climate change is an urgent issue and needs to be highly visible in the SDGs,” Fischler told IPS.

In the current SDG draft climate is goal 13. It calls on countries to “take urgent action to combat climate change and its impacts”. There is no target to reduce emissions, and nearly all of the targets are about adapting to the coming climate impacts.

“Countries don’t want to pre-empt their positions in the U.N. climate change negotiations,” said Lina Dabbagh of the Climate Action Network, a global network of environmental NGOs.

The U.N. Framework Convention on Climate Change ( UNFCCC) involves every country in a negotiation to create a new global climate treaty in 2015. After five years of talks, countries are deadlocked on key issues.

“The SDGs are a huge opportunity to move forward on climate, but the climate goal is weak and there is no action agenda,” Dabbagh told IPS.

Finalising the SDGs draft was highly politicised, resulting in very cautious wording. The country alliances and divisions are remarkably similar to those in the UNFCCC negotiations, including the South-North divide, she said.

Every country is concerned about climate change and its impacts but there is wide disagreement on how this should be reflected in the SDGs, with some only wanting a mention in the preamble, said Fischler.

Some countries such as the United Kingdom think 17 goals is too many and it is possible that some will be cut during the final year of negotiations that start once the SDGs are formally introduced at the U.N. General Assembly on Sep. 24.

The day before that the U.N. secretary-general will host a Climate Summit with leaders of many countries in attendance. The summit is intended to kick-start political momentum for an ambitious, global, legal climate treaty in 2015.

“Civil society will make a big push during the summit to make climate an integral part of the SDGs,” said Dabbagh.

However, much work remains to help political leaders and the public understand that climate action is the key to eliminating extreme poverty and achieving sustainable development, she said.

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U.S. Debating “Historic” Support for Off-Grid Electricity in Africa http://www.ipsnews.net/2014/07/u-s-debating-historic-support-for-off-grid-electricity-in-africa/?utm_source=rss&utm_medium=rss&utm_campaign=u-s-debating-historic-support-for-off-grid-electricity-in-africa http://www.ipsnews.net/2014/07/u-s-debating-historic-support-for-off-grid-electricity-in-africa/#comments Mon, 21 Jul 2014 23:02:57 +0000 Carey L. Biron http://www.ipsnews.net/?p=135654 Sub-Saharan Africa has large potential for hydropower generation, but is yet to exploit it. Pictured here is the Kariba Dam. Credit: Kristin Palitza/IPS

Sub-Saharan Africa has large potential for hydropower generation, but is yet to exploit it. Pictured here is the Kariba Dam. Credit: Kristin Palitza/IPS

By Carey L. Biron
WASHINGTON, Jul 21 2014 (IPS)

Pressure is building here for lawmakers to pass a bill that would funnel billions of dollars of U.S. investment into strengthening Africa’s electricity production and distribution capabilities, and could offer broad new support for off-grid opportunities.

With half of the U.S. Congress having already acted on the issue, supporters are now hoping that the Senate will follow suit before a major summit takes place here during the first week of August. That event is expected to include heads of state or representatives from as many as 50 African countries."We could see an energy revolution that looks similar to what happened with mobile phones – leapfrogging centralised systems altogether and moving towards transformative solutions.” -- Justin Guay

The summit, the first time that such an event has been organised in Washington, will focus in particular on investment opportunities. As such, many are hoping that the three-day event’s centrepiece will be President Barack Obama’s signing of a broad investment deal aimed at Africa’s power sector.

“The overwhelming majority of the African leaders are going to be coming to Washington emphasising trade and investment, and in that context this issue is very central to their many constituencies – touching on economic, political and social issues,” Ben Leo, a senior fellow at the Center for Global Development, a think tank here, told IPS.

“Coming forward with something concrete that will lead to additional capital, tools or engagement will be noticed and welcomed. But lack thereof would also have a message for African leaders and others travelling to Washington.”

A U.S. Senate subcommittee did pass a bill, called the Energize Africa Act, late last month, but much remains to be done. The legislation now needs to be voted on by the full Senate, after which the final proposal would have to be brought into alignment with a similar bill voted through by the House of Representatives in May.

Meanwhile, the entire Congress is scheduled to go into recess for a month at the end of July. Still, backroom talks are reportedly well underway.

“There’s growing pressure and momentum in the Senate, as well as a growing appreciation of how doing this is both strategic and important,” Leo says. “Not having a bill to sign would certainly be a missed opportunity in terms of the optics and concreteness of action, either before or when everyone’s in Washington.”

Some 68 percent of the sub-Saharan population lacks access to electricity. Both the House and Senate bills would seek to assist African countries in expanding basic electricity access to some 50 million people.

“Our support for this bill is a direct response to what we hear from African leaders, citizens and global development experts,” Tom Hart, U.S. executive director of ONE, an advocacy group that focuses on eliminating poverty in Africa and has mounted a major campaign in favour of the Senate bill, said in a statement.

“[O]ne of the biggest challenges for overcoming extreme poverty is the inability for millions of people to access the basic electricity necessary to power health clinics, farms, schools, factories and businesses.”

Beyond the grid

The current legislative push comes a year after President Obama unveiled a new initiative called Power Africa, proposed during his June 2013 trip to the continent. Seen as the president’s signature development plan for the region, Power Africa aims to double energy access in sub-Saharan countries through a mix of public and private investment.

While Power Africa is ambitious, its long-term impact greatly depends on the legislation currently under debate.

For instance, while Power Africa directly affects just six countries, the bills before Congress take a continental approach. Likewise, as an executive-level project, the initiative’s policy priorities can only be cemented through full legislation.

Power Africa initially came under significant fire from environmental and some development groups for its reliance on fossil fuel (particularly natural gas) and centralised power projects. Many groups say that such a focus is ultimately counterproductive for poor and marginalised communities.

Yet last month, the United States announced a billion-dollar initiative to focus on off-grid energy projects across the continent. This approach could now be codified through the legislative discussions currently taking place in Congress.

“Congress is now looking to pass a bill that would be relatively historic in terms of its support for beyond-the-grid markets,” Justin Guay, Washington representative for the Sierra Club, a conservation and advocacy group, told IPS. “The [Senate] bill is the first legislation we’ve seen starting to drive investment to unlock that potential.”

To date, Guay says, most investment from the U.S. government and multilateral agencies has skewed in favour of fossil fuels and centralised power generation. For the first time, the new legislation could start to balance out this mix – a potential boon for the environment and local communities alike.

“If you look at the energy access problem in sub-Saharan Africa, it’s largely a rural issue. So this bill could stimulate distributed, clean-energy solutions that can get into the hands of poor populations today, rather than forcing them to wait decades in the dark for power,” Guay says.

“In this way, we could see an energy revolution that looks similar to what happened with mobile phones – leapfrogging centralised systems altogether and moving towards transformative solutions.”

The House’s companion bill includes fewer progressive provisions than the Senate version, but it also doesn’t include amendments that could deliberately doom the legislation. Still, it remains to be seen how conservatives in the House react to the Senate’s proposals.

Strengthened support

These new opportunities have broadened support for the Senate’s legislation. On Friday, for instance, the Global Off Grid Lighting Association, a Germany-based trade group, expressed its “strong support” for the Energize Africa Act.

The legislation is also being welcomed by African environmentalists.

“We believe this bill has emerged as a strong source of support for our efforts to address energy poverty,” Mithika Mwenda, secretary general of the Pan African Climate Justice Alliance, said in a letter to U.S. lawmakers from earlier this month.

“We are particularly supportive of new efforts to expand loan guarantee authority at USAID” – the main U.S. foreign aid agency – “as well as the goal of ending kerosene based lighting. Both of these aspects are critical to ending energy poverty in poor rural areas.”

Meanwhile, both the House and Senate bills have enjoyed an unusual level of bipartisan support. Still, it’s not clear whether that will translate into the passage of a new law – particularly by the U.S.-Africa Leaders Summit, slated for Aug. 4-6.

“There’s not a lot of time left, so it’s is very difficult,” the Center for Global Development’s Leo says. “However, if it doesn’t pass by the summit, the summit will invariably create a lot of action shortly thereafter.”

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Do Not GM My Food! http://www.ipsnews.net/2014/07/do-not-gm-my-food/?utm_source=rss&utm_medium=rss&utm_campaign=do-not-gm-my-food http://www.ipsnews.net/2014/07/do-not-gm-my-food/#comments Fri, 18 Jul 2014 18:19:50 +0000 Julio Godoy http://www.ipsnews.net/?p=135627 By Julio Godoy
BERLIN, Jul 18 2014 (IPS)

Attempts to genetically modify food staples, such as crops and cattle, to increase their nutritional value and overall performance have prompted world-wide criticism by environmental, nutritionists and agriculture experts, who say that protecting and fomenting biodiversity is a far better solution to hunger and malnutrition.

Two cases have received world-wide attention: one is a project to genetically modify bananas, the other is an international bull genome project.

In June, the Bill & Melinda Gates Foundation announced that it has allocated some 10 million dollars to finance an Australian research team at the Queensland University of Technology (QUT), working on vitamin A-enriched bananas in Uganda, by genetically modifying the fruit.

On the other hand,  according to its project team, the “1000 bull genomes project” aims “to provide, for the bovine research community, a large database for imputation of genetic variants for genomic prediction and genome wide association studies in all cattle breeds.”“It makes little sense to support genetic engineering at the expense of (traditional, organic) technologies that have proven to substantially increase yields, especially in many developing countries” – ‘Failure to Yield’, a study by the U.S. Union of Concerned Scientists

In both cases, the genetic modification (GM) of bananas and of bovines is an instrument to allegedly increase the nutritional value and improve the overall quality of the food staples, be it the fruit itself, or, in the case of cattle, of meat and milk.

James Dale, professor at QUT, and leader of the GM banana project, claims that “good science can make a massive difference here by enriching staple crops such as Ugandan bananas with pro-vitamin A and providing poor and subsistence-farming populations with nutritionally rewarding food.”

In the ‘1000 bull genomes project’, the scientists involved (from Australia, France, Germany, and other countries) have sequenced – that is, established the order of – the whole genomes of hundreds of cows and bulls. “This sequencing includes data for 129 individuals from the global Holstein-Friesian population, 43 individuals from the Fleckvieh breed and 15 individuals from the Jersey breed,” write the scientists in an article published in Nature Genetics of July 13.

The reactions from environmental activists, nutritionists, and scientists could not be more critical. The banana case has even prompted a specific campaign launched in India – the “No to GMO Bananas Campaign”.

The campaign, launched by Navdanya, a non-governmental organisation founded by the international environmental icon Vandana Shiva, insists that “GMO bananas are … not a solution to” malnutrition and hunger.

The group argues that so-called bio-fortification of bananas – “the genetic manipulation of the fruit, to cut and paste a gene, seeking to make a new or lost micronutrient,” as genetic expert Bob Phelps has put it – is a waste of time and money, and constitutes a risk to biodiversity.

“Bananas are highly nutritional but have only 0.44 mg of iron per 100 grams of edible portion,” a Navdanya spokesperson said. “All the effort to increase iron content of bananas will fall short the (natural) iron content of indigenous biodiversity.”

The rationale supporting bio-fortication suggests that the genetic manipulation can multiply the iron content of bananas by six. This increase would lead to an iron content of 2.6 mg per 100 grams of edible fruit.

“That would be 3,000 percent less than iron content in turmeric, or lotus stem, 2,000 percent less than mango powder,” the spokesperson at Navdanya said. “The safe, biodiverse alternatives to GM bananas are multifold.”

Scientists have indeed demonstrated that the GM agriculture has so far failed to deliver higher yields than organic processes.

In a study carried out in 2009, the U.S. Union of Concerned Scientists demonstrated that the yields of GM soybeans and corn have increased only marginally, if at all. The report, “Failure to Yield“, found out that increases in yields for both crops between 1995 and 2008 were largely due to traditional breeding or improvements in agricultural practices.

“Failure to Yield” also analyses the potential role in increasing food production over the next few decades, and concludes that “it makes little sense to support genetic engineering at the expense of (traditional, organic) technologies that have proven to substantially increase yields, especially in many developing countries.”

Additionally, the authors say, “recent studies have shown that organic and similar farming methods that minimize the use of pesticides and synthetic fertilizers can more than double crop yields at little cost to poor farmers in such developing regions as Sub-Saharan Africa.”

Yet another ground for criticism is the fact that Bill Gates has repeated an often refuted legend about the risk of extinction of the banana variety Cavendish, grown all over the world for the North American market.

In his blog, Gates claims that “a blight has spread among plantations in Asia and Australia in recent years, badly damaging production of … Cavendish. This disease, a fungus, hasn’t spread to Latin America yet, but if it does, bananas could get a lot scarcer and more expensive in North America and elsewhere.”

The risk of extinction, however, is practically inexistent, as the United Nations Food and Agricultural Organisation (FAO), among other institutions, had already shown in 2003.

“What is happening is the inevitable consequence of growing one genotype on a large scale,” said Eric Kueneman, at the time head of FAO’s Crop and Grassland Service. That is, monoculture is the main cause of the fungus.

“The Cavendish banana is a “dessert type” banana that is cultivated mostly by the large-scale banana companies for international trade,” recalled Kueneman, today an independent consultant on agriculture.

On the other hand, as FAO numbers show, the Cavendish banana is important in world trade, but accounts for only 10 percent of bananas produced and consumed globally. Virtually all commercially important plantations grow this single genotype, and by so doing, make the fruit vulnerable to diseases. As FAO said in 2003, “fortunately, small-scale farmers around the world have maintained a broad genetic pool which can be used for future banana crop improvement.”

Actually, the most frequent reasons for malnutrition and starvation can be found in food access, itself a consequence of poverty, inequity and social injustice. Thus, as Bob Phelps, founder of Gene Ethics, says, “the challenge to feed everyone well is much more than adding one or two key nutrients to an impoverished diet dominated by a staple food or two.”

The same goes for the genome sequencing of bulls and cows, says Ottmar Distl, professor at the Institute for Animal Breeding and Genetics at the University of Hannover. “Some years ago, we thought that it would impossible to obtain more than 1,000 kilograms of milk per year per cow,” Distl said. “Today, it is normal to milk 7,000 kilograms, and even as much as 10,000 kilograms per year.”

But such performance has a price – most such “optimised” cows calve only twice in their lives and die quite young.

And yet, the leading researchers of the “1000 bull genomes project” look at further optimising the cows’ and bulls’ performance by genetic manipulation of the cattle in order to, as they say in their report, meet the world-wide forecasted, rising demand for milk and meat.

Distl disagrees. “Whoever increases the milk output hasn’t yet done anything against worldwide malnutrition and hunger.” In addition, he warned, the constant optimisation of some races can lead to the extinction of other lines, thus affecting the populations depending precisely on those seldom older races.

It goes without saying that such an extinction would hardly serve the interests of the world’s consumers.

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As Winds of Change Blow, South America Builds Its House with BRICS http://www.ipsnews.net/2014/07/as-winds-of-change-blow-south-america-builds-its-house-with-brics/?utm_source=rss&utm_medium=rss&utm_campaign=as-winds-of-change-blow-south-america-builds-its-house-with-brics http://www.ipsnews.net/2014/07/as-winds-of-change-blow-south-america-builds-its-house-with-brics/#comments Fri, 18 Jul 2014 14:36:36 +0000 Diana Cariboni http://www.ipsnews.net/?p=135624 Russian President Vladimir Putin, Prime Minister of India Narendra Modi, President of Brazil Dilma Rousseff, President of China Xi Jinping and South African President Jacob Zuma take a family photograph at the 6th BRICS Summit held at Centro de Eventos do Ceara' in Fortaleza, Brazil. Credit: GCIS

Russian President Vladimir Putin, Prime Minister of India Narendra Modi, President of Brazil Dilma Rousseff, President of China Xi Jinping and South African President Jacob Zuma take a family photograph at the 6th BRICS Summit held at Centro de Eventos do Ceara' in Fortaleza, Brazil. Credit: GCIS

By Diana Cariboni
MONTEVIDEO, Jul 18 2014 (IPS)

While this week’s BRICS summit might have been off the radar of Western powers, the leaders of its five member countries launched a financial system to rival Bretton Woods institutions and held an unprecedented meeting with the governments of South America.

The New Development Bank (NDB) and the Contingent Reserve Arrangement signal the will of BRICS countries (Brazil, Russia, India, China and South Africa) to reconcile global governance instruments with a world where the United States no longer wields the influence that it once did.“The U.S. government clearly doesn't like this, although it will not say much publicly.” -- Mark Weisbrot

More striking for Washington could be the fact that the 6th BRICS summit, held in Brazil, set the stage to display how delighted the heads of state and government of South America – long-regarded as the United States’ “backyard”— were to meet Russia’s president Vladimir Putin.

At odds with Washington and just expelled from the Group of Eight (G8) following Russia’s intervention in the Ukrainian crisis, Putin was warmly received in the region, where he also visited Cuba and Argentina.

In Buenos Aires, Putin and the president of Argentina, Cristina Fernández, signed agreements on energy, judicial cooperation, communications and nuclear development.

Argentina, troubled by an impending default, is hoping Russian energy giant Gazprom will expand investments in the rich and almost unexploited shale oil and gas fields of Vaca Muerta.

Although Argentina ranks fourth among the Russia’s main trade partners in the region, Putin stressed the country is “a key strategic partner” not only in Latin America, but also within the G20 and the United Nations.

Buenos Aires and Moscow have recently reached greater understanding on a number of international issues, like the conflicts in Syria and Crimea, Argentina sovereignty claim over the Malvinas/Falkland islands and its strategy against the bond holdouts.

Meanwhile, the relationship between Washington and Buenos Aires remains cool, as it has been with Brasilia since last year’s revelations of massive surveillance carried out by the National Security Agency against Brazil.

Some leftist governments –namely Bolivia, Venezuela and Ecuador— frequently accuse Washington of pursuing an imperialist agenda in the region.

But it was the president of Uruguay, José Mujica –whose government has warm and close ties with the Barack Obama administration— who better explained the shifting balance experienced by Latin America in its relationships with the rest of the world.

Transparency clause

In an interview before the summit, Ambassador Flávio Damico, head of the department of inter-regional mechanisms of the Brazilian foreign ministry, said a clause on transparency in the New Development Bank’s articles of agreement “will constitute the base for the policies to be followed in this area.”

Article 15, on transparency and accountability, states that “the Bank shall ensure that its proceedings are transparent and shall elaborate in its own Rules of Procedure specific provisions regarding access to its documents.”

There are no further references to this subject neither to social or environmental safeguards in the document.

After a dinner in Buenos Aires and a meeting in Brasilia with Putin, Mujica said the current presence of Russia and China in South America opens “new roads” and shows “that this region is important somehow, so the rest of the world perhaps begins to value us a little more.”

Furthermore, he reflected, “pitting one bloc against another… is not good for the world’s future. It is better to share [ties and relationships, in order to] keep alternatives available.”

Almost at the same time, Washington announced it was ready to transfer six Guantanamo Bay detainees to Uruguay, one of the subjects Obama and Mujica agreed on when the Uruguayan visited the U.S. president in May.

Mujica has invited companies from United States, China and now Russia to take part in an international tender to build a deepwater port on the Atlantic ocean which, Uruguay expects, could be a logistic hub for the region.

But beyond Russia, which has relevant commercial agreements with Venezuela, the real centre of gravity in the region is China, the first trade partner of Brazil, Chile and Perú, and the second one of a growing number of Latin American countries.

China’s president Xi Jiping travels on Friday to Argentina, and then to Venezuela and Cuba.

“The U.S. government clearly doesn’t like this, although it will not say much publicly,” said Mark Weisbrot, co-director of the Center for Economic and Policy Research.

“With a handful of rich allies, they have controlled the most important economic decision-making institutions for 70 years, including the IMF [International Monetary Fund], the World Bank, and more recently the G8 and the G20, and they wrote the rules for the WTO [World Trade Organisation],” Weisbrot told IPS.

The BRICS bank “is the first alternative where the rest of the world can have a voice.  Washington does not like competition,” he added.

However, the United States’ foreign priorities are elsewhere: Eastern Europe, Asia and the Middle East.

And with the exception of the migration crisis on its southern border and evergreen concerns about security and defence, Washington seems to have little in common with its Latin American neighbours.

“I wish they were really indifferent. But the truth is, they would like to get rid of all of the left governments in Latin America, and will take advantage of opportunities where they arise,” said Weisbrot.

Nevertheless, new actors and interests are operating in the region.

The Mercosur bloc (Argentina, Brazil, Paraguay and Uruguay) and the European Union are currently negotiating a trade agreement.

Colombia, Chile, México and Perú have joined forces in the Pacific Alliance, while the last three also joined negotiations to establish the Trans-Pacific Partnership.

In this scenario, the BRICS and their new financial institutions pose further questions about the ability of Latin America to overcome its traditional role of commodities supplier and to achieve real development.

“I don’t think that the BRICS alliance is going to get in the way of that,” said Weisbrot.

According to María José Romero, policy and advocacy manager with the European Network on Debt and Development (Eurodad), the need to “moderate extractive industries” could lead to “changes in the relationship with countries like China, which looks at this region largely as a grain basket.”

Romero, who attended civil society meetings held on the sidelines of the BRICS summit, is the author of “A private affair”, which analyses the growing influence of private interests in the development financial institutions and raises key warnings for the new BRICS banking system.

BRICS nations should be able “to promote a sustainable and inclusive development,” she told IPS, “one which takes into account the impacts and benefits for all within their societies and within the countries where they operate.”

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U.S. Accused of Forcing EU to Accept Tar Sands Oil http://www.ipsnews.net/2014/07/u-s-accused-of-forcing-eu-to-accept-tar-sands-oil/?utm_source=rss&utm_medium=rss&utm_campaign=u-s-accused-of-forcing-eu-to-accept-tar-sands-oil http://www.ipsnews.net/2014/07/u-s-accused-of-forcing-eu-to-accept-tar-sands-oil/#comments Thu, 17 Jul 2014 23:59:06 +0000 Carey L. Biron http://www.ipsnews.net/?p=135619 Mining tar sands oil at Fort McMurray in Alberta, Canada. Credit: Chris Arsenault/IPS

Mining tar sands oil at Fort McMurray in Alberta, Canada. Credit: Chris Arsenault/IPS

By Carey L. Biron
WASHINGTON, Jul 17 2014 (IPS)

Newly publicised internal documents suggest that U.S. negotiators are working to permanently block a landmark regulatory proposal in the European Union aimed at addressing climate change, and instead to force European countries to import particularly dirty forms of oil.

Environmentalists, working off of documents released through open government requests, say U.S. trade representatives are responding to frustrations voiced by the oil and gas industry here. This week, U.S. and E.U. officials are in Brussels for the sixth round of talks towards what would be the world’s largest free-trade area, known as the Transatlantic Trade and Investment Partnership (TTIP).“These documents show that the U.S. is simply not interested in an open, transparent [negotiation] process.” -- Bill Waren

“These documents show that the U.S. is simply not interested in an open, transparent [negotiation] process,” Bill Waren, a senior trade analyst with Friends of the Earth U.S., a watchdog group, told IPS. “Rather, U.S. representatives have been lobbying on the [E.U. regulatory proposal] in a way that reflects the interests of Chevron, ExxonMobil and others.”

The oil industry has repeatedly expressed concern over the European Union’s potential tightening of regulations around transport fuel emissions, first proposed in 2009 for what’s known as the Fuel Quality Directive (FQD). Yet according to a report released Thursday by Friends of the Earth Europe, the sector now appears to have convinced the U.S. government to work to permanently block the implementation of this standard.

Current negotiating texts for the TTIP talks are unavailable. But critics say the negotiations are forcing open the massive E.U market for a particularly heavy form of petroleum known as tar sands oil, significant deposits of which are in the Canadian province of Alberta.

“Since the adoption of the revised Fuel Quality Directive in 2009, the international oil companies … petroleum refiners, the Cana­dian government and the Albertan provincial government have spent enormous resources and used aggressive lobbying tactics to delay and weaken the implementation proposal,” the new report, which is being supported by a half-dozen environmental groups, states.

“The oil industry and the Canadian government … are afraid that the FQD could set a precedent by recognising and labelling tar sands as highly polluting and inspire similar legislation elsewhere.”

Safeguarding investments

At issue is the mechanism by which the European Union would determine the greenhouse gas emissions of various types of oil and gas. As part of Europe’s broader climate pledges, the FQD was revised to reduce the emissions of transport fuels by six percent by the end of the decade.

In 2011, the E.U. proposed that tar sands and other unconventional oils be formally characterised as having higher greenhouse gas “intensity” than conventional oil, given that they require more energy to produce – 23 percent higher, according to a study for the European Commission.

Yet tar sands have received massive interest from oil majors in recent years. Some 150 billion dollars were invested in Canadian tar sands between 2001 and 2012, according to Friends of the Earth, a figure expected to grow to nearly 200 billion dollars through 2022.

“Major oil investors want to immediately move as much tar sands oil as possible to Europe,” Waren says. “Over the longer term, they want to get the investments that will allow them to develop the infrastructure necessary to ship that exceptionally dirty fossil fuel to Europe.”

Many investors likely assumed the Canadian tar sands oil would have a ready market in the United States. But not only is the U.S. economy reducing its dependence on oil – particularly imports – but the trans-national transport of Canadian tar sands oils has become a major political flashpoint here, and remains uncertain.

So, last year, oil lobbyists here began to push U.S. trade representatives to use the nascent TTIP talks to safeguard the E.U. market for unconventional oils.

“[I]f the EU approves the proposed amendment to the FQD … it would adversely affect the U.S.-EU relationship, potentially eliminating a $32 billion-a-year flow of trade,” David Friedman, a vice-president with American Fuel & Petrochemical Manufacturers, a major trade association, wrote in a May 2013 letter to the top U.S. trade official.

Now, according to an internal European Commission e-mail uncovered by Friends of the Earth Europe and outlined in the new report, U.S. trade representatives appear to be echoing this analysis.

“[T]he US Mission informed us formally that the US authorities have concerns about the transparency and process, as well as substantive concerns about the existing proposal (the singling out of two crudes – Canada and Venezuela,” the letter, said to be from October 2013, reportedly states.

Canada and Venezuela have the world’s largest deposits of tar sands oil.

The letter also notes that the U.S. negotiators would prefer a “system of averaging out the crudes”, meaning that all forms of oil would simply receive one median score regarding their emissions intensity. This would effectively lift any E.U. bar on unconventional oils – and, according to the Friends of the Earth analysis, add an additional 19 million tons of carbon dioxide to the atmosphere.

‘Threatening’ climate policies

The new revelations come just a week after the leaking of a TTIP paper on E.U. energy policy, which would push the United States to abolish restrictions and automatically approve crude oil exports to the European Union. The document offered a rare glimpse into notoriously secret talks.

“We strongly oppose attempts by the E.U. to use this trade agreement, negotiated behind closed doors, to secure automatic access to U.S. oil and gas,” Ilana Solomon, director of the Responsible Trade Program at the Sierra Club, a conservation and watchdog group, told IPS. “I think there’s strong support for continued restrictions on this issue among both the public and policymakers, due to the implications for both energy security and the climate.”

The new disclosures have indeed caught the attention of the U.S. Congress. Last week, 11 lawmakers renewed a line of questioning from last year about Washington’s influence on E.U. tar sands policy.

“We reiterate that actions pressuring the EU to alter its FQD would be inconsistent with the goals expressed in President Obama’s Climate Action Plan,” the lawmakers wrote to the U.S. trade representative, Michael Froman, “and we remain concerned that trade and investment rules may be being used to undermine or threaten important climate policies of other nations.”

Yet such concerns may already be too late.

Last month, media reports suggested that the European Commission is now considering a proposal to go with the U.S.-pushed “averaging” approach to its fuel-emissions calculation. The same week, Europe’s first shipment of tar sands oil – 570,000 barrels from Canada – reportedly arrived on Spanish shores.

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International Reform Activists Dissatisfied by BRICS Bank http://www.ipsnews.net/2014/07/international-reform-activists-dissatisfied-by-brics-bank/?utm_source=rss&utm_medium=rss&utm_campaign=international-reform-activists-dissatisfied-by-brics-bank http://www.ipsnews.net/2014/07/international-reform-activists-dissatisfied-by-brics-bank/#comments Thu, 17 Jul 2014 21:39:24 +0000 Mario Osava http://www.ipsnews.net/?p=135613 Chandrasekhar Chalapurath, an economist at Jawaharlal Nehru University in New Delhi, talks about development banks in India, at the International Seminar on the BRICS Bank. Credit: Mario Osava/IPS

Chandrasekhar Chalapurath, an economist at Jawaharlal Nehru University in New Delhi, talks about development banks in India, at the International Seminar on the BRICS Bank. Credit: Mario Osava/IPS

By Mario Osava
FORTALEZA, Brazil, Jul 17 2014 (IPS)

The creation of BRICS’ (Brazil, Russia, India, China and South Africa) own financial institutions was “a disappointment” for activists from the five countries, meeting in this northeastern Brazilian city after the group’s leaders concluded their sixth annual summit here.

The New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA), launched Tuesday Jul. 15 at the summit in the northeastern Brazilian city of Fortaleza, represent progress “from United States unilateralism to multilateralism,” said Graciela Rodriguez, of the Brazilian Network for the Integration of Peoples (REBRIP).

But “the opportunity for real reform was lost,” she complained to IPS at the International Seminar on the BRICS Bank, held in this city Wednesday and Thursday Jul. 16-17 as a forum for civil society organisations in parallel to the sixth summit.

The format announced for the NDB “does not meet our needs,” she said.

The NDB will promote “a new kind of development" only if its loans are made conditional on the adoption of low-polluting technologies and are guided by the Millennium Development Goals and their successors, the Sustainable Development Goals. -- Carlos Cosendey, international relations secretary at the Brazilian foreign ministry
The bank’s goal is to finance infrastructure and sustainable development in the BRICS and other countries of the developing South, with an initial capital investment of 50 billion dollars, to be expanded through the acquisition of additional resources.

“We want an international system that serves the majority, not just the seven most powerful countries (the Group of Seven),” that does not depend on the dollar and that has an international arbitration tribunal for financial controversies, said Oscar Ugarteche, an economics researcher at the National Autonomous University of Mexico.

“It is unacceptable that a district court judge in New York should put a country at risk,” he told IPS, referring to the June ruling of the U.S. justice system in favour of holdouts (“vulture funds”) in their dispute with Argentina, which could force another suspension of payments.

“We need international financial law,” similar to existing trade law, and an end to the dominance of the dollar in exchange transactions, which enables serious injustice against nations and persons, like embargoes on payments and income in the United States, he said.

“Existing international institutions do not work,” and the proof of this is that they have still not overcome the effects of the 2008 financial crisis, said the Mexican researcher.

Major powers like the United States and Japan have unsustainable debt and fiscal deficits, yet are not harassed by the International Monetary Fund (IMF), in contrast to the treatment meted out to less powerful nations, particularly in the developing South.

During the seminar, organised by REBRIP and Germany’s Heinrich Böll Foundation, oft-repeated demands were for civil society participation, transparency, environmental standards and consultation with the populations affected by projects financed by the NDB.

These demands have not yet been included in the NDB but may be discussed during its operational design over the next few years, while the group’s parliaments ratify its approval, said Carlos Cosendey, international relations secretary at the Brazilian foreign ministry, in a dialogue with activists.

Participants at one of several panels at the International Seminar on the BRICS Bank, held Jul. 16-17 in Fortaleza, Brazil. Credit: Mario Osava/IPS

Participants at one of several panels at the International Seminar on the BRICS Bank, held Jul. 16-17 in Fortaleza, Brazil. Credit: Mario Osava/IPS

Cosendey said that a disadvantage of the multilateral bank was the need for its regulations not to be confused with infringement of national sovereignty of member states. The political, cultural, legal and ethnic differences between the five countries could pose a major obstacle to the adoption of common criteria, he said.

The NDB can be constructive “if it integrates human rights” into its principles and presents solutions for the social impacts of the projects it finances, said Nondumiso Nsibande, of ActionAid South Africa, an NGO.

“We need roads, other infrastructure and jobs, as well as education, health and housing,” but big projects tend to harm poor communities in the places where they are carried out, she told IPS. It is still not known what levels of transparency and social concern the bank will have, she said.

In the view of Chankrasekhar Chalapurath, an economist at Jawaharlal Nehru University in New Delhi, the NDB will alleviate India’s great needs for infrastructure, energy, long distance transport and ports. However, he does not expect it to make large investments in one key service for Indians: sanitation.

Having an Indian as the bank’s first president, as the five leaders have decided, will help attract more investments, but he said people’s access to water must remain a priority.

Cosenday said the NDB will promote “a new kind of development.”

But Chalapurath told IPS that this will only happen if its loans are made conditional on the adoption of low-polluting technologies and are guided by the Millennium Development Goals and their successors, the Sustainable Development Goals, as well as human rights and other best practices.

Adopting democratic processes within the bank will facilitate dialogue with social movements, parliaments and society in general, he said.

Incorporating environmental issues and gender parity is also essential, said Ugarteche and Rodriguez, who regards this as necessary in order to make progress towards “environmental justice.”

Not only roads and ports need to be built; even more important is the “social infrastructure” that includes sanitation, water, health and education, said Rodriguez, the coordinator of the REBRIP working group on International Economic Architecture.

Mobilising resistance to large projects that affect local populations in the places they are constructed will be part of the response to the probable priority placed by the NDB on financing physical infrastructure projects, she announced.

The social organisations gathered in Fortaleza, with representatives from Brazil, India, China, South Africa and other countries that are not members of the group, are preparing to coordinate actions to influence the way the bank and its policies are designed, and to monitor its operations and the actions of the BRICS group itself.

Brazilian economist Ademar Mineiro, also of REBRIP, said there was potential for national societies to influence the format and policies of the NDB, and time for them to organise and mobilise. “It is an unprecedented opportunity,” he told IPS.

Russia did not originally support the BRICS bank, preferring private funding. But Mineiro said its position changed after the United States and the European Union involved multilateral financial institutions like the World Bank in sanctions against Moscow for its annexation of Crimea, a part of Ukraine.

BRICS evolved “from the economic to the political,” with its members demanding more power in the international system. The alliance is one of the pillars of the Chinese strategy to conquer greater influence, including in the West, said Cui Shoujun, a professor at the School of International Studies of Renmin University in China.

“The BRICS need China more than the other way round,” he told IPS, adding that the Chinese economy is 20 times larger than South Africa’s and four times larger than those of India and Russia.

As well as seeking natural resources from other countries, among the reasons why China has joined and supports BRICS is strengthening the legitimacy in power of the Communist Party through internal stability and prosperity, the academic said.

(END)

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BRICS Build New Architecture for Financial Democracy http://www.ipsnews.net/2014/07/brics-build-new-architecture-for-financial-democracy/?utm_source=rss&utm_medium=rss&utm_campaign=brics-build-new-architecture-for-financial-democracy http://www.ipsnews.net/2014/07/brics-build-new-architecture-for-financial-democracy/#comments Wed, 16 Jul 2014 20:41:04 +0000 Mario Osava http://www.ipsnews.net/?p=135601 The five BRICS leaders pose for the cameras at the sixth annual summit in the Brazilian city of Fortaleza. Credit: Agência Brasil/EBC

The five BRICS leaders pose for the cameras at the sixth annual summit in the Brazilian city of Fortaleza. Credit: Agência Brasil/EBC

By Mario Osava
FORTALEZA, Brazil, Jul 16 2014 (IPS)

The BRICS alliance (Brazil, Russia, India, China and South Africa) launched the New Development Bank (NDB) and Contingency Reserve Arrangement (CRA) during its sixth summit, institutionalising a new financial architecture for the emerging powers.

Two other agreements, one for Cooperation among Export Credit and Guarantees Agencies and another on Cooperation for Innovation among national development banks, complete the structure established Tuesday Jul. 15 by the five heads of state in the northeastern Brazilian city of Fortaleza.

The BRICS Summit concludes Wednesday with a meeting between the five leaders and the presidents of the Union of South American Nations (UNASUR) held in Brasilia, as well as several bilateral meetings.

The NDB and CRA are not being created “against anyone,” but as a “response to our needs,” said the summit host, Brazilian President Dilma Rousseff, at a press conference after the meeting with Vladimir Putin (Russia), Narendra Modi (India), Xi Jinping (China) and Jacob Zuma (South Africa).

BRICS leaders reject interpretations that the mechanisms have been created in opposition to or as alternatives to the World Bank and the International Monetary Fund (IMF), part of the Bretton Woods global financial system established in the 1940s.

Social inclusion - a voice from India

A key promoter of the New Development Bank and the country that will appoint the first NDB president, India was also the voice of social concerns at the Sixth BRICS Summit.

Prime Minister Narendra Modi said in Fortaleza that fighting poverty should be the main focus of the group, especially through construction of the Sustainable Development Goals which will shape the development agenda after 2015.

Food security is another issue that Modi identified as a priority, as did members of the Indian business community who participted in the BRICS Business Forum on Monday Jul. 14. It is a highly sensitive topic in India, where hundreds of millions of people live in poverty, most of them subsistence farmers in rural areas.

BRICS should not be a centralised, hierarchical institution, but should focus attention on local areas and people, and involve youth, Modi said in his speech at the Summit. He suggested the creation of a Young Scientists’ Forum and a BRICS university, using the internet for intensive contact between students in the five countries.

The uniqueness of BRICS, he said, is that “for the first time” it brings together a group of nations on the basis of “future potential,” rather than existing characteristics. This “forward looking” idea creates fresh perspectives and institutional changes for a more stable world, overcoming present economic conflicts and turbulence, Modi said.

The theme of the BRICS Summit is “Inclusive growth: sustainable solutions.”

Chinese President Xi Jinping said his country, which is the major trading partner of 128 nations, seeks “win-win” cooperation to promote better world economic governance.

Africa is in urgent need of “inclusive and dynamic growth,” said Jacob Zuma, the president of South Africa, while Russian President Vladimir Putin proposed the formation of a BRICS Energy Association, with a fuel reserve bank to ensure the energy security of its member states.

The NDB will complement existing multilateral and regional financial institutions, whose lack of resources constrain financing of infrastructure projects in developing countries, according to the summit’s final declaration, signed by the participating heads of state.

The CRA, a mechanism through which the five countries make available a total of 100 billion dollars from their reserves, is a currency pool that provides financial security for its members, without departing from the IMF, summit speakers said.

If one of the BRICS countries wishes to borrow more than 30 percent of the sum it is entitled to, in order to overcome threats to its balance of payments, it will have to face questions from the IMF about conditions of payment, said the Brazilian finance minister, Guido Mántega.

Brazil, Russia and India can withdraw up to the value of their contributions of 18 billion dollars each. South Africa may take out twice the five billion dollars it will contribute to the mechanism, and China up to half its 41 billion dollar commitment.

The new institutions “consolidate” the BRICS alliance, Mántega said. Before they become operational, they must be ratified by the countries’ parliaments, he said.

The bank and the reserve fund are so constituted as to prevent aspirations of dominance, Rousseff said. The countries will have equal shares in the NDB, of 10 billion dollars each, and equal voting rights. The capital may later be doubled.

Bank presidents and its governing councils will be appointed on a rotating basis.

China will contribute 41 percent of CRA funds but decisions will be taken by a broader majority, reaching consensus for the negotiation of larger loans, Mántega said.

But the NBD headquarters will be located in the Chinese city of Shanghai, and it will be difficult to avoid the economic and monetary weight of the Asian power from translating into greater decision-making power for Beijing.

The NDB’s composition avoids inequalities at the outset, but equal participation is only a formality as “in practice the future trend will be towards greater Chinese influence,” according to Carlos Langoni, former president of the Brazilian Central Bank.

To be effective, the bank will have to increase its initial capital of 50 billion dollars, recruiting new financing resources, and in this as well as in crises the “dominant role” of the country offering most capital and guarantees is an influential factor, added Langoni, who is the present director of the World Economics Centre at the Getulio Vargas Foundation.

China is interested in diversifying its investments, in multilateral and regional institutions as well as bilaterally. In recent years it has become the largest investor in Latin America.

It already participates in several regional financial mechanisms, such as the Chiang Mai Initiative, similar to the CRA and involving countries of the Association of Southeast Asian Nations, and it is seeking to establish the Asian Infrastructure Investment Bank, as an alternative to the Asian Development Bank in which Japan has decisive influence.

Langoni believes that the BRICS, with the CRA resting on “mega-economies” with their enormous currency reserves, will in the long term be able to “grow faster and have more weight than the IMF, which is already facing difficulties raising funds because of its rules.”

However, the IMF will remain the most powerful multilateral financial body over the next decade, he said.

The rise of the BRICS reflects a multipolar world, as the alliance includes military powers like Russia and China, nuclear powers like both these countries and India, and “moderators” without military ambitions like Brazil and South Africa.

Progress in strengthening and institutionalising the group at its Fortaleza summit could help reduce border tensions existing between China and India, or between Russia and the West, Langoni said.

In his view, what cements the group is its “frustration over the action of multilateral bodies, particularly the IMF,” in the face of the financial crises. These institutions are very complex and made up of a large number of countries.

The BRICS countries can operate with greater ease with their own financial instruments, which can also supply their urgent needs for investment in infrastructure, especially in Brazil and India, he argued.

The BRICS “found their identity” by working with the Group of Twenty (G20) industrial and emerging countries to defend the stimulation of growth, rather than recession-inducing austerity, after the 2008 global financial crisis, Mántega pointed out. Later they came to demand reform of the IMF, which spearheaded response to the crisis.

Some reforms to grant emerging countries greater participation in IMF decision-making were approved by the G20, but then stalled because they were rejected in the U.S. Congress.

The IMF is regarded as extremely undemocratic, because the United States has power of veto and some countries of the industrial North have a majority of votes, in contradiction with the present correlation of economic forces and the weight of emerging powers.

The absence of reforms “negatively impacts on the IMF’s legitimacy, credibility and effectiveness.” The reforms must lead to the “modernisation of its governance structure so as to better reflect the increasing weight of emerging markets and developing countries (EMDCs),” says the Fortaleza Declaration, signed by the five BRICS leaders.

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