Inter Press Service » Trade & Investment News and Views from the Global South Fri, 21 Oct 2016 22:12:36 +0000 en-US hourly 1 Privatization the Problem, Rarely the Solution Thu, 20 Oct 2016 17:02:13 +0000 Jomo Kwame Sundaram Jomo Kwame Sundaram was United Nations Assistant Secretary-General for Economic Development, and received the Wassily Leontief Prize for Advancing the Frontiers of Economic Thought in 2007.]]>

Jomo Kwame Sundaram was United Nations Assistant Secretary-General for Economic Development, and received the Wassily Leontief Prize for Advancing the Frontiers of Economic Thought in 2007.

By Jomo Kwame Sundaram
KUALA LUMPUR, Malaysia, Oct 20 2016 (IPS)

Privatization has been one of the pillars of the counter-revolution against development economics and government activism from the 1980s. Many developing countries were forced to accept privatization as a condition for support from the World Bank while many other countries have embraced privatization, often on the pretext of fiscal and debt constraints.

Jomo Kwame Sundaram. Credit: FAO

Jomo Kwame Sundaram. Credit: FAO

Privatization generally refers to changing the status of a business, service or industry from state, government or public ownership to private control. It sometimes also refers to the use of private contractors to provide services previously delivered by the public sector.

Privatization can be strictly defined to include only cases of the sale of 100%, or at least a majority share of a public or state-owned enterprise (SOE), or its assets, to private shareholders. The definition of privatization in some contexts is so broad that it includes cases where private enterprises are awarded licences to participate in activities previously the exclusive preserve of the public sector.

Why the turn to privatization?
The balance of payments problems arising from oil shocks in the 1970s and the US Fed’s increase of the interest rate to well over 20% precipitated sovereign debt crises in Latin America and elsewhere from the early 1980s, forcing many developing countries to seek credit support from the International Monetary Fund (IMF) and the World Bank.

The World Bank and IMF’s ‘neo-liberal’ policy prescriptions involved liberalization, deregulation and privatization. Collectively, they later came to be known as the Washington Consensus to refer to the common position of three Washington DC based institutions – the US Treasury, the IMF and the World Bank.

Main arguments for privatization
Privatization was advocated as an easy means to:
1) reduce the ‘financial and administrative burden of the government’, particularly in undertaking and maintaining services and infrastructure;
2) ‘promote competition, improve efficiency and increase productivity’ in the delivery of public services;
3) ‘stimulate private entrepreneurship and investment’, and thus accelerate economic growth;
4) help reduce ‘the presence and size of the public sector, with its monopolistic tendencies and bureaucratic support’.

Public or consumer welfare
Since a significant portion of state-run activities are public monopolies, privatization will hand over such monopoly powers to private interests likely to use them to maximize profits. The privatization of public services tends to burden the public, especially if charges are raised for privatized services which may not improve with privatization.

Private interests are only interested in profitable or potentially profitable activities and enterprises. Thus, the government will be saddled with unprofitable and less profitable activities, reinforcing the impression of SOE inefficiencies. Consequently, privatization may worsen overall enterprise performance. ‘Value for money’ may go down, despite improvements used to justify higher user charges.

Privatization in many developing and transition economies has primarily enriched a few with strong political connections who ‘captured’ lucrative opportunities associated with privatization, while the public interest has been increasingly sacrificed to such powerful private business interests. This has, in turn, exacerbated problems of corruption, patronage and other related problems.

Adverse consequences
Some other adverse consequences of privatization include:
– The social and political implications of two types of services, i.e. one for those who can afford more costly, private – including privatized – services, and the other for those who cannot, and hence have to continue to rely on subsidized public services, e.g. medical services and education.
– The effects of minimal long-term investments by private owners narrowly focused on maximizing short-term profits.
– Increased living costs as well as poorer services and utilities – especially in remote and rural areas – due to ‘economic costing’ of services, e.g. telecommunications, water supply and electricity.
– Reduced jobs, overtime work and real wages for employees of privatized concerns.

Flawed arguments
Arguments for privatization can be refuted on the following grounds:
• The public sector can be more efficiently run, as demonstrated in Singapore, Taiwan and South Korea.
• Greater public accountability and a more transparent public sector can ensure greater efficiency in achieving the public and national interest while limiting public-sector waste and borrowing.
• Privatization may postpone a fiscal crisis by temporarily reducing fiscal deficits, but the public sector would lose income from profitable public sector activities, and be stuck with financing and subsidizing unprofitable ones. As experience shows, the fiscal crisis may even deepen if the new owners of profitable SOEs avoid paying taxes with creative accounting or due to the typically generous terms of privatization.
• Privatization gives priority to profit maximization, typically at the expense of social welfare, equity and the public interest. It tends to adversely affect the interests of public-sector employees and the public, especially poorer consumers.
• Public pressure to ensure the equitable distribution of share ownership (e.g., ‘voucher privatization’) may inadvertently undermine pressures to improve corporate performance since each shareholder would then only have small equity stakes, and would therefore be unlikely to incur the high costs of monitoring management and corporate performance.
• By diverting private capital from productive new investments to buying over public sector assets, economic growth would be retarded rather than enhanced.

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Trump, Clinton, Obama and the TPP Thu, 13 Oct 2016 13:36:04 +0000 Jomo Kwame Sundaram Jomo Kwame Sundaram was United Nations Assistant Secretary-General for Economic Development and received the Wassily Leontief Prize for Advancing the Frontiers of Economic Thought in 2007.]]>

Jomo Kwame Sundaram was United Nations Assistant Secretary-General for Economic Development and received the Wassily Leontief Prize for Advancing the Frontiers of Economic Thought in 2007.

By Jomo Kwame Sundaram
KUALA LUMPUR, Oct 13 2016 (IPS)

The Trans-Pacific Partnership (TPP) agreement between the US and eleven other Pacific Rim countries was under negotiation for the first seven years of the Obama presidency. For the first four years, Hilary Clinton was the Secretary of State, directly supervising the negotiations. Even after she quit her cabinet position to launch for her second presidential bid, she continued to tout it in superlative terms.

Jomo Kwame Sundaram. Credit: FAO

Jomo Kwame Sundaram. Credit: FAO

Yet, by early 2016, most presidential aspirants, including Mrs. Clinton, had disowned the TPP. No new information about the TPP had come to light to prompt this volte face. Nor had the then new Secretary of State John Kerry added anything radically new to the proposals she was associated with during her tenure.

While largely in the interests of corporate America, the TPP is not in the interests of the US economy or the public at large. While it is in the interest of US transnational corporations (TNCs) to source manufactures and services from low-wage Asian economies for the US market, by doing so, they are likely to displace those previously producing those goods, increasing US unemployment. This, in turn, reduces aggregate demand and increases the current account deficit in the US balance of payments.

US corporate interests
The TPP will promote US corporate interests by institutionalizing new arrangements which undermine the sovereignty of TPP countries, including the US itself. For instance, the TPPA’s patent and copyright provisions are stronger and for longer durations. This would strengthen corporate monopolies, especially of US TNCs, raising the prices of goods, especially pharmaceutical drugs, in all TPP countries. Thus, while US TNCs stand to profit greatly, consumers in all TPP countries, including the US, would be worse off.

The TPP’s investor-state dispute settlement (ISDS) provisions will mean that foreign investors can sue TPP governments more easily in special tribunals. Such disputes will not be settled by national judiciaries or in accordance with host country laws. Thus, private corporations will be less subject to the national laws and governments of the countries where they invest; even US laws would be less binding on all TNCs.

Despite being a nation-state itself, the US is setting up supranational institutions that would serve TNCs, when needed, while not being subject to them, when convenient. Thus, the White House appears to be standing with big business against its own national economic interests, especially of its own working class, referred to as its middle class in better times.

But elections offer a rare opportunity for the public to have their voice heard. The November US elections are particularly interesting as its economy is not popularly perceived to have recovered although it has done better than most other advanced countries. Wooing working class support is crucial for both presidential candidates.

As in Europe, Donald Trump, whose narcissism is undermining his own chances, has successfully directed workers’ anger over their lot against ‘others’, i.e. Muslims, Mexicans, immigrants, minorities and Asian workers accused of having ‘stolen American jobs’.

Despite having negotiated the TPP, Hilary Clinton also professes opposition to it while allowing it to stay as part of the Democratic Party platform for the election. This is reminiscent of Bill Clinton’s earlier opposition to the North American Free Trade Area (NAFTA), negotiated by President George H. W. Bush, before becoming its great proponent after winning the White House. To legitimize her own volte-face, she may try to add new TPPA provisions banning ‘currency manipulation’ while making it clear that the real intended target is China.

Meanwhile, the outgoing Obama administration has successfully put together a bipartisan lobby, including establishment Republicans upset at Trump’s nomination, to get the TPP accepted by the US Congress during the ‘lame duck’ period right after the early November elections before the Christmas recess. Already, these efforts have met with early success.

US national security
Recognizing the lack of credibility of earlier claims that the TPP would benefit the US economy and American workers, the Obama strategy has portrayed the TPP as necessary for ‘security’ to check the rise of China. Several TPP country leaders have expressed this concern while the White House has put growing pressure on the US Congress to this effect.

The Obama administration now contends that if the US pulls out of the TPP now, it will lose credibility as a ‘security partner’. Other TPP countries might then conclude that if the US could withdraw from the TPP despite having framed it, its other pledges would no longer be credible. The next US President will thus find it difficult to withdraw from the TPP at the risk of being accused of jeopardizing US ‘national security’.

Americans, and Europeans for that matter, are increasingly convinced that while elite interests are well served by ‘globalization’, the public interests of consumers and working people are not. The strong American popular opposition to the TPP, the Brexit vote and other recent developments in the West suggest growing rejection of the myth that national public and corporate elite interests are identical.

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$90tn Infrastructure Investment Could Combat Climate Change: Report Wed, 12 Oct 2016 02:50:44 +0000 Lyndal Rowlands 0 Coffee Producers in Costa Rica Use Science to Tackle Climate Change Wed, 05 Oct 2016 18:41:04 +0000 Diego Arguedas Ortiz 2 Closing the Broadband Divide to Connect People in Asia and the Pacific Wed, 05 Oct 2016 06:42:41 +0000 Dr Shamshad Akhtar The author is an Under-Secretary-General of the United Nations and Executive Secretary of ESCAP. She has been the UN’s Sherpa for the G20 and previously served as Governor of the Central Bank of Pakistan and Vice President of the MENA Region of the World Bank. The full text of the new ESCAP report on the “State of ICT in Asia and the Pacific 2016: Uncovering the Widening Broadband Divide” will be available at:]]>

The author is an Under-Secretary-General of the United Nations and Executive Secretary of ESCAP. She has been the UN’s Sherpa for the G20 and previously served as Governor of the Central Bank of Pakistan and Vice President of the MENA Region of the World Bank. The full text of the new ESCAP report on the “State of ICT in Asia and the Pacific 2016: Uncovering the Widening Broadband Divide” will be available at:

By Dr. Shamshad Akhtar
BANGKOK, Oct 5 2016 (IPS)

Advances in Information and Communication Technology (ICT) have been instrumental in shaping and leading socioeconomic transformations across Asia and the Pacific. One key to this transformation is the technology bundled around the “Internet of Things” (IoT), which enables billions of devices and appliances to connect over the Internet for more accurate, real time data collection and analysis in an unparalleled scale. For instance, through Internet-connected sensors attached to equipment, facilities and infrastructure, early-on maintenance alarms can be raised for potential problems, such as defects or wear and tear, thereby potentially saving the lives of those using them. Another example is devices on farms that remotely monitor soil conditions, weather and pesticide use for more rapid and better-informed decision making.

Dr. Shamshad Akhtar

Dr. Shamshad Akhtar

Despite an increasing spotlight on the transformative capabilities of newer technologies such as the IoT, the Asia-Pacific region nevertheless still suffers from a lack of ICT connectivity, and the digital divide in our region continues to be one of the largest in the world. As a powerful tool with the potential to address development challenges, ICT has the potential to foster equality and inclusiveness in our region. Recognizing this, the Sustainable Development Goals (SDGs) acknowledge ICT as a development enabler and the foundational infrastructure for achieving sustainable development. In this context, enhancing access to affordable, reliable, resilient and robust broadband connectivity must be seen as a prerequisite for accelerated and inclusive development in the Asia-Pacific region.

A fundamental challenge related to new business opportunities and innovations that IoT and other ICT advancements generate is how to best connect those who are still unconnected, so that they too can reap the benefits of these advances. The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) underscored the need to address this challenge in a recent report entitled the State of ICT in Asia and the Pacific 2016: Uncovering the Widening Broadband Divide. The report highlighted the alarming disparity in broadband connectivity within Asia-Pacific, with high-income countries experiencing a higher growth rate of broadband penetration relative to other countries. Twenty countries in the region have only 2% of fixed broadband subscription per 100 inhabitants, while ICT champions such as the Republic of Korea, enjoy over 40% broadband penetration. Further emphasizing regional disparities, 75 % of fixed broadband subscriptions were registered in North and North-East Asia, mainly in the People’s Republic of China, the Republic of Korea and Japan.

Broadband connectivity, especially reliable, affordable and resilient fixed broadband infrastructure, is a critical foundation which supports various applications and initiatives that are essential for the achievement of the SDGs, ranging from traffic and transport management, smart power management, trade facilitation, disaster management and financial inclusion, to name only a few. ICT is not only a growth sector which creates value-added services, products and employment opportunities, but it also acts as a development enabler which can accelerate efforts towards the implementation of the SDGs.

While success stories in e-commerce abound, such as China’s Alibaba, less is known about the use of ICT for socioeconomic benefits, such as mobile money in Pakistan and the Philippines where salaries and remittances are sent over mobile phones. Farmers and rural residents increasingly use the Internet, allowing them to gain unparalleled access to information and knowledge and helping to further develop multiple sectors, such as agriculture, education and health. ICT also plays a crucial role in disaster management. When a disaster strikes, it is the telecommunications infrastructure which provides the platform to communicate with those in need of help and collect and analyze data on losses and damage to facilitate disaster response and reconstruction. Moreover, ICT can facilitate social integration of marginalized groups, such as people with disabilities, by providing them with more effective means to communicate and engage in a wider variety of socioeconomic activities. At the same time, however, the region needs a development pathway to the digital economy and future prosperity for inclusive and sustainable development.

While significant efforts have gone towards expanding broadband connectivity at national and sub-national levels, the Internet is inherently regional as well as global, therefore affordable and reliable connectivity to regional and global telecommunications networks are indispensable for narrowing the digital divide through better connectivity. The Asia-Pacific region is particularly impacted by the widening digital divide due to its vulnerability to frequent catastrophic disasters, which cause massive destruction to life and property. Earthquakes, for instance, have disrupted submarine cables and subsequently access to the Internet among densely populated coastal areas and cities. Learning from the lessons and moving forward, the region urgently needs to improve, enhance and expand its broadband connectivity to provide alternative routes and networks to build greater regional resilience to disasters.

In this context, ESCAP supports the Asia-Pacific Information Superhighway (AP-IS), a regional broadband connectivity initiative mandated by member countries that aims to enhance connectivity from Turkey to Kiribati in a holistic manner, with four pillars of enhancing physical connectivity, effective Internet traffic management, e-resilience and inclusive broadband access. Given the regional and global nature of the initiative, ESCAP provides an inter-governmental platform for member countries to discuss the regional cooperation framework and implementation of the AP-IS Master Plan to further deepen regional connectivity and maximize the socio-economic benefits for all.

ESCAP’s Committee on Information and Communications Technology, Science, Technology and Innovation, scheduled from 5 to 7 October 2016 in Bangkok, is one such regional platform to engage member countries and other stakeholders in discussions contributing to a regional vision of what ICT can and should do for the region’s future. It is imperative that we enhance connectivity, since without effective and viable “people connections,” the region’s full potential will not be realised.

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Jobs Are Crucial for Peace, Stem Radicalization and Violent Extremism in Kenya Wed, 21 Sep 2016 12:22:30 +0000 Ambassador Amina Mohamed and Siddharth Chatterjee Ambassador Amina Mohamed (@AMB_A_Mohammed) is the Cabinet Secretary in the Ministry of Foreign Affairs and Trade. Siddharth Chatterjee (@sidchat1) is the United Nations Resident Coordinator to Kenya. ]]> Under Vision 2030, the agriculture sector is to be made more innovative, commercially oriented and modern. Photo Credit: WikiMedia

Under Vision 2030, the agriculture sector is to be made more innovative, commercially oriented and modern. Photo Credit: WikiMedia

By Ambassador Amina Mohamed and Siddharth Chatterjee
NAIROBI, Kenya, Sep 21 2016 (IPS)

Today 21 September 2016 is the International Day of Peace.

Kenya has the largest number of jobless youth in East Africa, putting a strain on the economy’s growth and also threatening peace and security when hopeless youth gravitate towards violent extremist groups.

Today, youth form two-thirds of Kenya’s population, many of them unemployed, with the ratio of youth unemployment to overall adult unemployment standing at 46 percent, according to the 2009 Kenya Population and Housing Census. At the same time, there are eight dependents for every ten working Kenyans, meaning that the average worker will very often have little left to save or invest for growth.

While this youth bulge may seem like a disaster in the making, investing in the sectors with highest potential can turn it into a gateway to rapid economic growth and development as we have seen among Asian Tigers like Singapore, South Korea and Malaysia.

By all projections, agriculture presents this opportunity.

While the African Union has recognised agriculture as the driving force of social and economic transformation, the youth often feel that agriculture lacks the glamour, sophistication and allure of the professions they seek.

This is regrettable. Africa not only has the largest percentage of arable land in the globe, and untapped potential for irrigated agro-pastoralism on its vast arid and semi-arid lands, but it also has the highest ratio of young people with the necessary knowledge, innovative skills and physical strength.

Of particular interest are youth in hard to reach areas, such as the arid and semi-arid lands, who are increasingly disgruntled by dim prospects of good jobs and increasingly prone to the temptations of extremist groups. These groups sway them with blandishments and exploit their feelings of exclusion and hopelessness.

In northern Kenya, which has borne the brunt of extremism in the country, traditional livestock farming methods can be targeted for transformation into a quality-driven, export-targeting industry. This calls for investment in education, rural transport and electricity, and smart business and trade policies.

In these areas, formal education should provide young people with basic numeracy and literacy, managerial and business skills, and introduce them to agro-pastoralism. It has been shown that education is key to overcoming development challenges in rural areas, and that improved access to education also improves rural children’s food security.

The power of the internet also offers a great opportunity for attracting youth in far-flung areas to agriculture. Packaging and disseminating information on agri-business to the youth through social media platforms like blogs, websites, Twitter and Facebook has proven effective in Kenya. Much more can be achieved with increased access to the internet especially in the remote parts of the country.

There is a great potential pay-off for the continent: according to the World Bank, African agriculture and agribusiness could be worth $1 trillion by 2030. Clearly, this is the low hanging fruit that Kenya should aim to invest in to solve the myriad problems associated with youth unemployment.

Agro-pastoralism has great potential to improve livelihoods for youth and women and reduce food insecurity, create incomes and generally help youth to feel engaged and involved with the national development agenda. Those promoting entrepreneurship must therefore include agribusiness as a priority area of focus, particularly at the county level.

Acting on this, President Uhuru Kenyatta during this year’s African Green Revolution Forum held in Nairobi, announced that the government would invest US$200 million to enable 150,000 young agricultural entrepreneurs to gain access to markets, finance and insurance.

With their dynamism, enthusiasm and innovativeness, the youth are our greatest asset and a force for improving the productivity and growth of all sectors in Kenya.

To reap the dividends, Kenya’s priority focus needs to be on growth in sectors that can absorb them, particularly agriculture.

Policies must also ensure that women and girls, who do most of the actual work in farms across Africa, can achieve their potential. Lack of collateral and financial literacy often make them ineligible for financial assistance while cultural norms deny them land inheritance rights and, at times, restrict their movement and access to markets for their produce.

Kenya’s Vision 2030 aims to turn the country into an industrialized, middle-income country and provide a high quality life in a safe and secure environment to all its citizens by 2030.

It is only when the current large group of youth has been given education and skills demanded by the sectors of greatest potential that we will turn the youth bulge into a force for good and transform Kenya into a peaceful and prosperous nation.

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The Public Benefit Organisations Act Will Help Kenya’s March Towards the Sustainable Development Goals Mon, 19 Sep 2016 09:55:18 +0000 Siddharth Chatterjee Siddharth Chatterjee is the UN Resident Coordinator and the UNDP Resident Representative to Kenya. ]]> Willaim Ruto, Kenya's Deputy President said that, “This act will empower community based organizations to mobilize public opinion so as to shape development priorities as well as sharpen accountability mechanisms at all levels of government."

Willaim Ruto, Kenya's Deputy President said that, “This act will empower community based organizations to mobilize public opinion so as to shape development priorities as well as sharpen accountability mechanisms at all levels of government."

By Siddharth Chatterjee
NAIROBI, Kenya, Sep 19 2016 (IPS)

The Sustainable Development Goals (SDGs) in Kenya was launched on 14 September 2016, Representing President Uhuru Kenyatta, the Cabinet Secretary of the Ministry of Devolution and planning Mr Mwangi Kiunjuri, said Kenya was way ahead of implementing the SDGs through its Vision 2030, and the devolved system of Governance

Kenya now needs strategic and creative partnerships with civil society networks to raise public awareness and sustain momentum for the Goals’ diverse set of targets.

The SDG targets presents a challenge that is too big for any one government, and the coming into force of the Public Benefit Organisations Act (PBOs) therefore presents an opportunity to build broad partnerships with civil society groups, an acknowledged force for social justice, human rights and equity.

Stakeholders have now overcome the initial hurdles facing the Act when it was adopted in Parliament in 2013. These included suggestions for putting caps on funds for civil society organisations and other amendments that were considered overly restrictive.

There have been concerns that delays in implementing the Act would have led to an environment of control over civil society, more so in the lead-up to the 2017 elections when civil society is expected to complement the electoral management body’s voter education initiatives and advocate for free, fair and peaceful elections.

With the coming into operation of the Act on 9 September 2016, Kenya now has a legal framework, aligned with the Constitution of Kenya 2010, and that repeals the 1990 NGOs Coordination Act. This framework will, among other things, promote a vibrant civil society space in the country and stimulate continued local-level partnership for development, a key ingredient for the realization of the SDGs.

The decision by Cabinet secretary Mr Mwangi Kiunjuri to bring this Act into use, therefore, is a commendable step and a milestone decision which reaffirms the commitment of the Government of Kenya to its human rights obligations, notably freedom of association, expression and peaceful assembly, consistent with the vision and values of the Kenyan Constitution.

County governments too stand to benefit as the Act presents an opportunity for Civil Society Organizations to engage with them towards realizing the constitutional promise of devolution and the SDG agenda at the sub-national level. This can only be realized if county governments embrace the new law and prioritize its operationalization at the county level by clearly factoring it in their development policies and plans.

The Government of Kenya and the UN collaboration on what is now a fully operational law has come a long way. After concrete engagements with the government for close to three years, a commitment to the operationalization of the PBO Act included in the Government roadmap that the UN supported following the Universal Periodic Review of Kenya in 2015.

The UN is ever ready to partner with the Government of Kenya and civil society including philanthropy to support a PBO implementation framework which is designed in an inclusive, credible and participatory manner and upholding human rights.

As the UN family, we believe that dynamic partnerships with civil society organizations are essential for generating public awareness and political support for human development priorities, as well as for implementing programmes. Civil society must be at the heart of any development response, and their participation can only give impetus to Kenya’s SDG campaign.

Discussing this on a flight to New York recently, with Kenya’s Deputy President Mr William Ruto, who also chairs the IBEC (Intergovernmental Budget and Economic Council) that brings together all levels of Government both at national and county level, he welcomed this development. He said, “This act will empower community based organizations to mobilize public opinion so as to shape development priorities as well as sharpen accountability mechanisms at all levels of government.”

The Act will also facilitate the implementation of Kenya’s strategy on Countering Violent Extremism. This is because civil society provide forums through which youth can engage and participate in the political, economic and social spheres, and it has been an important voice in urging that the protection of human rights be placed at the center of the security response.

The post-2015 development agenda will be most effective only if it results from inclusive and open multi-stakeholder participation.

This means that the vision for the Kenya we want must be informed by the perspectives of her people, especially those living in poverty who are served well by civil society and to ensure that “no one is left behind”.

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European Security with or Without Russia? Consequences of the Chinese-Russian Alliance on the Relationship Between USA and EU Fri, 16 Sep 2016 14:03:48 +0000 Roberto Savio By Roberto Savio
ROME, Sep 16 2016 (IPS)

The joint military manoeuvres between the Russian and Chinese navies, armies, and air forces has kicked off. It’s a clear message for Washington, which has recently strengthened its action in Asia, indicating that as a country that overlooks the Pacific, it wants to play an important role in the continent, aimed at containing the Chinese expansion.

Roberto Savio

Roberto Savio

Obama, during his visit to Laos, the first by an American President and his last in Asia as President, has explicitly stated that the United States are guarantors of Asian stability. One must also consider that the greatest continent of the world is going through a wave of nationalism (China, Japan, India) and populism (Philippines). Joint military manoeuvres are a clear message: the United States cannot decide the destinies of Asia.

Russia is already considered by NATO an enemy to contain, encircled by the borders of Eastern Europe. The annexation of Crimea, the intervention in eastern Ukraine, and then the military action in Syria, have isolated the Kremlin, object of unprecedented trade sanctions by both Europe and America.

The meeting last week, between Obama and Putin at the G20, ended overtly negative. The fragile agreement to a ceasefire in Syria reached between the respective foreign ministers, does not solve the overall dispute between the two countries, which are still willing to fight each other with an undeclared war, until the very last Syrian. The Western alliance intends to maintain sanctions on Russia.

The logic is that the latter, weakened by the fall in oil prices and witnessing a significant reduction of its revenue, will lead to Putin being obliged to accept the supremacy of the West, hence being forced to reduce his action internationally.

This logic leads to a non-negotiation, as everyone waits for Putin to understand that he cannot have global ambitions. As Obama said, “Russia is a regional power.” And the information system is full of analysis on how the Russian economy is going through a crisis, and how the decline in resources will undermine the relationship between Putin and the Russian people.

Now, a slightly more in-depth analysis gives way to serious doubts on the strength of this strategy. To begin with, the sanctions have a different burden on Europe than on the United States. It is emphasized that Russia’s GDP has fallen by 3.5 percent. But aside from the fact that in this scenario the reduction in oil prices (the main Russian export) plays a much more serious role, from $ 100 a barrel to the current 50 dollars, all is quiet on the cost of penalties for the West, which has suspended Russia’s exports.

According to the European Commission, at the end of 2015, it was $ 100 billion dollars. But here lies a major difference, which has been inexplicably silenced. US exports to Russia fell by 3.5%, while the Europeans fell by 13% ( 43% of the agricultural sector). For its part, European imports from Russia fell by 13.5%.

Also according to the European Commission, the European GDP fell by 0.3% in 2014 and 0.4% in 2015, as a direct result of the sanctions. This doesn’t preoccupy Germany but countries like Italy, whose growth is close to zero (and whose agricultural sector has been hit by the loss of the Russian market), without forgetting that the total growth of the European GDP is close to 1 percent. But, reply the NATO circles, the difference between the decline of Russia’s GDP and that of Europe, shows that sanctions work, and it is only a matter of time before Putin capitulates.

This leads to another reflection largely absent in the media. One cannot ignore that Putin enjoys great esteem amongst the Russian population. The independent surveys confer to him levels of popularity which range from 60% to peaks of 78%, percentages unknown for any Western leader.

This popularity has increased since Putin annexed Crimea, intervened in Ukraine, sticking a knife on NATO’s side, (which he can turn as he pleases), and intervened in Syria. The response of the official circles is that these actions were carried out to hide the internal social and economic crisis.

However, crises arise when they feel as such. Americans are convinced that during the Reagan presidency the United States they were living through a blissful economic era, whereas in reality, the fiscal deficit rose from 800 billion to 2,750 trillion.

It’s now easy to convince the Russians that the West is trying to strangle their economy. Furthermore, the Russians are a population, according to sociologists, are able to squeeze consumer spending much more than the citizens of the western countries, for both historical and cultural reasons.

However, the main reflection should be made on an important dysfunctional element: the simultaneous existence of the European Community and Nato, two institutions which have a different agenda, which often generate schizophrenic actions.

The formal purpose of the European Community is to promote further integration and development of European countries, based on common values and interests.

The formal purpose of Nato is to act for the security of the Western world, which is made up at the same time by the United States (absolute leaders) and from Europe.

As a consequence, Europe entrusts Nato in her security. According to many analysts, Nato echoes the characters of Pirandello’s Play “Six Characters looking for an author”. The end of the cold war and the end of the Soviet threat would have implied Nato’s end. But getting rid of an institution is often more difficult than creating one. So for a long time, Nato has persistently looked for an enemy which would justify its existence.

As a Chinese proverb says: If you put a hammer in the hands of a man, they will look everywhere for nails that protrude. So much so in this case, that the last commander of Nato, the current General, has declared that Russia is a greater threat than ISIS.

Yet, there is also a school of thought that considers the West guilty of doing everything it could to make sure Putin was paranoid when he’d started off as an ally of Bush.

It should not be forgotten that Gorbachev’s agreement to accept the fall of the Berlin wall was a consequence of Nato’s commitment to keeping its borders.

Instead, all European countries of the former Soviet Union have entered Nato. And, representative of this trend, defined as an encirclement of Moscow (while Madrid defines it as a containment) is the recent admission of Montenegro to Nato, who admitted to having an army composed of 3,000 men.

Now, with careful analysis, there it is safe to say that Nato carries more weight in international politics than Europe. Even because, objectively speaking, Europe has reduced military expenses, as it delegates the costs of her defence to the United States. No coincidence that Trump, making a point during his election campaign, promised that if he were to become President, the Europeans would have to pay their bills. This would result in a severe decrease of Nato’s power in Europe.

Joint manoeuvres in the South China Sea are part of a very important and accelerated approach between Russia and China. Despite the slowdown in China’s economy, as Beijing has signed loans for 25 billion dollars to Russian companies: Russia, for its part, has committed itself to a gas supply agreement of 38 billion cubic meters of gas per year, for 30 years, with a fee of 400 billion dollars.

China Development Bank has granted a line of credit at Sberbank of 966 million dollars. Beijing has set up an investment fund for Russian Agriculture worth 2 billion dollars and has granted 19.7 billion dollars credit for a railroad linking Moscow to the city of Kazan. The two countries have also agreed to increase their bilateral trade to 200 billion dollars by 2020. In other words, an unprecedented business alliance is growing between the two countries.

The question that Europe must, therefore, ask, taking off its Nato hat and putting on the hat of the European Union, is whether it should push Russia into the arms of China. Maybe it’s time to open a comprehensive negotiation with Russia, instead of discussing separately each step of the litigation, Siria separately from Ukraine, from Crimea, from the issue of Georgia, from Eastern Europe and so on.

From this analysis, an ever more crucial question arises. Is it a forward-looking strategy for Europe, if the sanctions had an effect, to have a country of great military and economic importance such as Russia, close to the borders, on it knees and with a population who is humiliated and offended, convinced (thanks to evidence) that Europe is obstructing Russia from having a righteous place in the world? Is this the best path for European security? Perhaps a negotiation with Russia would be better, in order to obtain a security policy, as well as trade and commerce for which there are huge needs, as according to world-leading economists we’re headed towards a long period of stagnation.

But the question whether the European schizophrenia of the two hats, that of Nato and the EU, (today in crisis), enables this negotiation. Especially because Putin is creating his own system of European alliances: an Alliance with the populist right, with the Salvini’s and the Le Pen’s, achieving the admiration of Trump, becoming the model for an illiberal democracy, as the Hungarian President Orban puts it. This certainly reduces European security. But where is a leader capable of having a newer, more realistic and long-term vision of security for Europe? Are we sure this is feasible without Russia?

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Drought Deals Harsh Blow to Cameroon’s Cocoa Farmers Sun, 28 Aug 2016 22:27:34 +0000 Mbom Sixtus Six million Cameroonians depend on the cocoa sector for a living. Credit: Mbom Sixtus/IPS

Six million Cameroonians depend on the cocoa sector for a living. Credit: Mbom Sixtus/IPS

By Mbom Sixtus
KONYE, Cameroon, Aug 28 2016 (IPS)

Tanchenow Daniel fears he will lose more than half a tonne of his cocoa yield during the next harvest at the end of this month.

He usually harvests no less than 1.5 tonnes of cocoa beans during the mid-crop season, but he says every farmer in the Manyu Division of Cameroon’s South West Region is witnessing a catastrophe this year because of a prolonged dry season.

“The effects of droughts were worse this year because people had been ignorantly cutting down trees which provided shade to cocoa. Many trees have been dried up this year while bush fires dealt us a heavy blow,” Tanchenow told IPS, adding that though he is a victim, others have it even worse, including a friend who lost an entire farm of five hectares.

Adding insult to injury, prices fell in August, ranging from 1,000 CFA francs (1.72 dollars) per kg of cocoa to 1,200 CFA francs – down from prices as high as 1,700 CFA in July – with producers saying buying was delayed because of the drought.

Chief Orock Mbi of Meme division in Cameroon’s South West region tells IPS that he and other cocoa growers in the division also witnessed “a drastic drop” in cocoa yields in the past few months. He hopes for new methods to protect this key crop from the effects of climate change.

The South West Region of Cameroon is among the major cocoa-producing regions of Cameroon, along with the Center, East and South regions.

Data from the National Cocoa and Coffee Board suggests the drop in cocoa production was nationwide. The data indicates 7,610 tonnes of cocoa were exported in March. In April, the country exported 5,780 tonnes and the figure further dropped to 3,205 tonnes by the end of June.

Farmers pin hopes on cooperatives, new varieties

Cameroon is the world’s fifth-largest producer of cocoa. It has exported 239.7 million kgs this year of which 97 percent was grade II, according to statistics published on Aug. 3 by the Cocoa and Coffee Board.

The country’s minister of trade believes for this position to be maintained, farmers burdened by the undesirable effects of climate change must join cooperative unions. It is through these cooperative societies that government distributes farm inputs such as pesticides and improved variety seeds to smallholder farmers.

Trade Minister Luc Magloire Mbarga Atangana addressed hundreds of farmers in Konye municipality on Aug. 3 as he launched the 2016/2017 cocoa marketing season.

He told the farmers in Cameroon’s third-largest cocoa producing locality that cooperative unions would help to constantly improve on the quality of their cocoa and protect them from deceitful cross-border buyers from neighbouring countries that pay them less than the worth of their produce.

Clementine Ananga Messina, Deputy Minister in charge of Rural Development in the Ministry of Agriculture and Rural Development, says cooperatives would help farmers make the best of aid offered in their localities, boost their bargaining power and improve gains for the six million Cameroonians who depend on the cocoa sector for a living.

Besides distribution, cooperatives sensitise farmers on the use of new varieties and techniques.

Zachy Asek Ojong, manager of the Konye Area Farmers Cooperative, tells IPS they have provided immense support to local members. “Farmers can attest to the assistance they have had from the cooperative society,” says Ojong.

Esapa, president of South West Farmers’ Cooperative, says “cocoa farmers have never really witnessed the effects of climate change until this year. So now we are beginning to work with common initiative groups in sensitising farmers, especially cocoa and coffee growers.”

He tells IPS the cooperative is now, among other things, advising farmers who had cut down trees to replant them in order to shade their cocoa and coffee farms. “The sunshine this year was so wild that people who set fires on their farms ended up burning many other farms around them. We are reinforcing campaigns against bush fires,” he said.

Tanchenow says he has planted 4,000 cocoa trees of a new variety commonly called “Barombi,” a name coined from an organisation that introduced the variety in the division. He says that two years in, yields are better and “Barombi is the hope for our cocoa’s future.”

However, he does not trust cooperative societies and calls them unreliable and tainted by favoritism.

“People in my area who depended on them for pesticides were shocked to find out selected individuals were called up by a different organisation to receive farm inputs from the agriculture ministry,” Tanchenow complained.

Farmers fall ever deeper in debt

The National Cocoa and Coffee Board says Cameroon’s cocoa was exported to eight countries, including the Netherlands, Belgium, Germany, Italy and Spain –  with the Netherlands alone importing 76.30 percent.

Still, farmers in Konye live without roads and electricity and depend on solar energy and firewood for drying and processing their cocoa. Some of them prefer to hang onto old ways of financing and sales despite the advantages of adhering to cooperatives.

Edward Ekoko Bokoba tells IPS that many farmers still prefer “pledging” their farms as means of financing, while others operate outside the major buyers of cocoa.

“Climate change is impacting pledging negatively, but some farmers seem to trust the system more than the micro-loans from the cooperatives,” he says.

“Pledging” is a system where farmers sign agreements with individuals who pay for farm inputs or lend them money. At the end of the harvest and sales, the funder’s money is reimbursed with an agreed quantity of cocoa or cash in interest.

Bokoba, who currently is expecting profits from a “pledge,” says when the dry season is prolonged or when the weather is distorted, as was the case this year, farmers are forced to borrow more money and may end up handing over all their harvest to creditors.  Some creditors are cocoa merchants who claim exclusive rights to purchase all their debtor’s cocoa and by so doing, dictate the price.

Another farmer, Ako Kingsley Tanyi, says though government is condemning sales of cocoa to trans-border buyers, some farmers prefer to sell their cocoa to Nigerian buyers who pay better prices. “Cocoa sold to Nigerians does not go through the Douala seaport and government does not have the figures,” he explains.

The performance of Cameroon’s cocoa has been as unstable as weather conditions in recent years. And the International Center for Tropical Agriculture (CIAT) forecasted in 2011 that climate change will lead to a global slump in cocoa production by the year 2030.

Many hope that relief might be forthcoming from the United Nations Green Climate Fund, which is supposed to raise 100 billion dollars per year by 2020 to assist developing countries in climate change adaptation and mitigation once their country-based COP21 plans have been fine-tuned.

CIAT, whose mission is to reduce hunger and poverty, and improve human nutrition in the tropics, says the coffee and cocoa sectors could be the first to benefit from this fund.

In the same optimistic regard, Cameroon’s trade minister holds that government’s target to export 600,000 tonnes by 2020 would be met.

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Ships Bring Your Coffee, Snack and TV Set, But Also Pests and Diseases Tue, 23 Aug 2016 13:22:26 +0000 Baher Kamal Containers pile up in the Italian port of Salerno. Photo: FAO

Containers pile up in the Italian port of Salerno. Photo: FAO

By Baher Kamal
ROME, Aug 23 2016 (IPS)

“Every evening, millions of people all over the world will settle into their armchairs to watch some TV after a hard day at work. Many will have a snack or something to drink…

… That TV probably arrived in a containership; the grain that made the bread in that sandwich came in a bulk carrier; the coffee probably came by sea, too. Even the electricity powering the TV set and lighting up the room was probably generated using fuel that came in a giant oil tanker.”

This is what the International Maritime Organisation (IMO)  wants everybody to keep in mind ahead of this year’s World Maritime Day. “The truth is, shipping affects us all… No matter where you may be in the world, if you look around you, you are almost certain to see something that either has been or will be transported by sea, whether in the form of raw materials, components or the finished article.”

Yet few people have any idea just how much they rely on shipping. For the vast majority, shipping is out of sight and out of mind, IMO comments. “This is a story that needs to be told… And this is why the theme that has been chosen for the World Maritime Day 2016 is “Shipping: indispensable to the world.” The Day is marked every year on 29 September.

Over 80 Per Cent of Global Trade Carried by Sea

Some $1.1 trillion worth of agricultural products are traded internationally each year. Photo: FAO

Some $1.1 trillion worth of agricultural products are traded internationally each year. Photo: FAO

Meanwhile, another UN organisation–the United Nations Conference on Trade and Development (UNCTAD), informs that around 80 per cent of global trade by volume and over 70 per cent of global trade by value are carried by sea and are handled by ports worldwide.

These shares are even higher in the case of most developing countries, says UNCTAD.

“There are more than 50,000 merchant ships trading internationally, transporting every kind of cargo. The world fleet is registered in over 150 nations and manned by more than a million seafarers of virtually every nationality.”

A Floating Threat

All this is fine. But as another major United Nations organisation also reminds that not all is great about sea-born trade. See what happens.

A Floating Threat: Sea Containers Spread Pests and Diseases’  is the title of an information note issued on August 17 by the Rome-based Food and Agriculture Organisation of the United Nations (FAO).

FAO highlights  that that while oil spills garner much public attention and anguish, the so-called “biological spills” represent a greater long-term threat and do not have the same high public profile. And gives some good examples.

“It was an exotic fungus that wiped out billions of American chestnut trees in the early 20th century, dramatically altering the landscape and ecosystem, while today the emerald ash borer – another pest that hitch-hiked along global trade routes to new habitats – threatens to do the same with a valuable tree long used by humans to make tool handles, guitars and office furniture.”

FAO explains that perhaps the biggest “biological spill” of all was when a fungus-like eukaryotic microorganism called Phytophthora infestans – the name of the genus comes from Greek for “plant destroyer” – sailed from the Americas to Belgium. Within months it arrived in Ireland, triggering a potato blight that led to famine, death and mass migration.

“The list goes on and on. A relative of the toxic cane toad that has run rampant in Australia recently disembarked from a container carrying freight to Madagascar, a biodiversity hotspot, and the ability of females to lay up to 40,000 eggs a year make it a catastrophic threat for local lemurs and birds, while also threatening the habitat of a host of animals and plants.”

In Rome, FAO informs, municipal authorities are ramping up their annual campaign against the tiger mosquito, an invasive species that arrived by ship in Albania in the 1970s. Aedes albopictus, famous for its aggressive biting, is now prolific across Italy and global warming will make swathes of northern Europe ripe for colonisation.

“This is why the nations of the world came together some six decades ago to establish the  International Plant Protection Convention (IPPC) as a means to help stem the spread of plant pests and diseases across borders boundaries via international trade and to protect farmers, foresters, biodiversity, the environment, and consumers.”

“The crop losses and control costs triggered by exotic pests amount to a hefty tax on food, fibre and forage production,” says Craig Fedchock, coordinator of the FAO-based IPPC Secretariat. “All told, fruit flies, beetles, fungi and their kin reduce global crop yields by between 20 and 40 per cent.”

Credit: IMO

Credit: IMO

Trade as a Vector, Containers as a Vehicle

Invasive species arrive in new habitats through various channels, but shipping, is the main one, FAO reports.

“And shipping today means sea containers: Globally, around 527 million sea container trips are made each year – China alone deals with over 133 million sea containers annually. It is not only their cargo, but the steel contraptions themselves, that can serve as vectors for the spread of exotic species capable of wreaking ecological and agricultural havoc.”

For example, an analysis of 116,701 empty sea containers arriving in New Zealand over the past five years showed that one in 10 was contaminated on the outside, twice the rate of interior contamination.

“Unwelcome pests included the gypsy moth, the Giant African snail, Argentine ants and the brown marmorated stink bug, each of which threaten crops, forests and urban environments. Soil residues, meanwhile, can contain the seeds of invasive plants, nematodes and plant pathogens,” FAO informs.

“Inspection records from the United States, Australia, China and New Zealand indicate that thousands of organisms from a wide range of taxa are being moved unintentionally with sea containers,” the study’s lead scientist, Eckehard Brockerhoff of the New Zealand Forest Research Institute, told a recent meeting at FAO of the Commission on Phytosanitary Measures (CPM), IPPC’s governing body.

These phytosanitary (the health of plants) measures are intended to ensure that imported plants are free of specified pests.

Here, FAO warns that damage exceeds well beyond agriculture and human health issues. Invasive species can cause clogged waterways and power plant shutdowns.

Biological invasions inflict damages amounting to around five per cent of annual global economic activity, equivalent to about a decade’s worth of natural disasters, according to one study, Brockerhoff said, adding that factoring in harder-to-measure impacts may double that.

Around 90 per cent of world trade is carried by sea today, with vast panoply of differing logistics, making agreement on an inspection method elusive. Some 12 million containers entered the U.S. last year, using no fewer than 77 ports of entry.

“Moreover, many cargoes quickly move inland to enter just-in-time supply chains. That’s how the dreaded brown marmorated stink bug – which chews quickly through high-value fruit and crops – began its European tour a few years ago in Zurich.”

This animal actively prefers steel nooks and crannies for long-distance travel, and once established likes to set up winter hibernation niches inside people’s houses.

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Uruguay’s Victory over Philip Morris: a Win for Tobacco Control and Public Health Mon, 22 Aug 2016 08:49:27 +0000 German Velasquez Credit: Bigstock

Credit: Bigstock

By Germán Velásquez
GENEVA, Aug 22 2016 (IPS)

In a landmark decision that has been hailed as a victory of public health measures against narrow commercial interests, an international tribunal has dismissed a claim by tobacco giant company Philip Morris that the Uruguay government violated its rights by instituting tobacco control measures.

The ruling had been much anticipated as it was the first international case brought against a government for taking measures to curb the marketing of tobacco products.

Philip Morris had started proceedings in February 2010 against Uruguay at the International Centre for Settlement of Investment Disputes (ICSID) under a bilateral investment treaty (BIT) between Uruguay and Switzerland. The decision was given on 8 July 2016.

Under the BIT, foreign companies can take cases against the host state on various grounds, including if its policies constitute an expropriation of the companies” expectation of profits, or a violation of “fair and equitable treatment” These investment treaties and arbitration tribunals like ICSID have been heavily criticised in recent years for decisions favouring companies and that critics argue violate the right of states to regulate in the public interest.

In this particular case, the tribunal gave a ruling that dismissed the tobacco giant’s claims and upheld that the Uruguayan pro-health measures were allowed.

President Tabaré Vázquez of Uruguay, responding to the ruling, stated on 8 July:: “We have succeeded to prove at the International Centre for Settlement of Investment Disputes that our country, without violating any treaty, has met its unwavering commitment to defend the health of its people… From now on, when tobacco companies try to undermine the regulations adopted in the context of the framework tobacco convention with the threat of litigation, they (countries) will find our precedent.”

Germán Velásquez

Germán Velásquez

Philip Morris International (PMI) started legal proceedings against Uruguay’ government at the International Centre for Settlement of Investment Disputes (ICSID), based at the World Bank, in February 2010. This was the first time the tobacco industry challenged a state in front of an international tribunal.

Philip Morris claimed that the health measures imposed by the Ministry of Health of Uruguay violated its intellectual property rights and failed to comply with Uruguay’s obligation under its bilateral investment treaty (BIT) with Switzerland.

Two specific measures were contested by Philip Morris. The first measure was the Single Presentation Requirement introduced by the Uruguayan Public Health Ministry in 2008, where tobacco manufacturers could no longer sell multiple varieties of one brand. Philip Morris had to withdraw 7 of its 12 products and alleged that the restriction to market only one variety substantially affected its company’s value.

The second measure contested by Philip Morris was the so-called “80/80 Regulation”. Under a presidential decree, graphic health warnings on cigarette packages should cover 80 percent instead of 50 percent, of the packaging, leaving only 20 percent for the tobacco companies’ trademarks and advertisement.

Uruguay adopted strict tobacco control policies to comply with the World Health Organization’s Framework Convention on Tobacco Control (WHO FCTC), in light of evidence that tobacco consumption leads to addiction, illness, and death.

According to the Ministry of Health, since Uruguay introduced its tobacco control programme in 2003, its comprehensive tobacco control campaign has resulted in a substantial and unprecedented decrease in tobacco use.

From 2005 to 2011 per person consumption of cigarettes dropped by 25.8 %. Tobacco consumption among school-going youth aged 12­17 decreased from over 30 percent to 9.2 percent from 2003 to 2011. Ministry of Health data also indicate that since smoke-free laws were introduced, hospitalization for acute myocardial infarction has reduced by 22 percent.

Since this was the first international litigation, the case is highly important for similar debates taking place in other forums, like the World Trade Organization, where some states are being challenged by other states for their tobacco control measures. It is a significant victory for a state facing commercial threats by tobacco companies fighting control measures.

The decision is supportive of states that choose to exercise their sovereign right to introduce laws and strategies to control tobacco sales in order to protect the health of their population.

This is a David against Goliath victory. The annual revenue of Philip Morris in 2013 was reported at $80.2 billion, in contrast to Uruguay”s gross domestic product of $55.7 billion. The international lawyer and practitioner in investment treaty arbitration Todd Weiler stated in a legal opinion that: “the claim is nothing more than the cynical attempt by a wealthy multinational corporation to make an example of a small country with limited resources to defend against a well-funded international legal action.”

An important aspect of the case was that the secretariats of the World Health Organization and the WHO Framework Convention on Tobacco Control (WHO FCTC) submitted an amicus brief during the proceedings.

The brief provided an overview of global tobacco control, including the role of the WHO FCTC. It set out the public health evidence underlying Uruguay’s tobacco packaging and labelling laws and detailed state practice in implementing similar measures.

This is a David against Goliath victory. The annual revenue of Philip Morris in 2013 was reported at $80.2 billion, in contrast to Uruguay''s gross domestic product of $55.7 billion
The Tribunal accepted the submission of the amicus brief on the basis that it provided an independent perspective on the matters in the dispute and contributed expertise from “qualified agencies”. The Tribunal subsequently relied on the brief at several points of the factual and legal analysis in their decision.

In accepting submission of the amicus brief the Tribunal noted that given the “public interest involved in this case”the amicus brief would “support the transparency of the proceeding”.

The Tribunal ruling upheld that Uruguay could maintain the following specific regulations:

Prohibiting tobacco companies from marketing cigarettes in ways that falsely present some cigarettes as less harmful than others.

Requiring tobacco companies to use 80% of the front and back of cigarette packs for graphic/pictures of warnings of the health danger of smoking.

According to expert Chakravarthi Raghavan there are several specific legal findings of the panel ruling, including:

  1. Uruguay did not violate any of its obligations under the Switzerland/Uruguay Bilateral Investment Treaty, or deny Philip Morris any of the protections provided by that Treaty.
  1. Uruguay’s regulatory measures did not “expropriate” Philip Morris’ property. They were bona fide exercises of Uruguay’s sovereign police power to protect public health.
  1. The measures did not deny Philip Morris “fair and equitable treatment” because they were not arbitrary; instead, they were reasonable measures strongly supported by the scientific literature, and had received broad support from the global tobacco control community.
  1. The measures did not “unreasonably and discriminatorily” deny Philip Morris the use and enjoyment of its trademark rights, because they were enacted in the interests of legitimate policy concerns and were not motivated by an intention to deprive Philip Morris of the value of its investment.

This is a landmark ruling because it supports the case that it is the sovereign right not only of Uruguay but of States in general to adopt laws and regulations to protect public health by regulating the marketing and distribution of tobacco products.

It is hoped that many other countries, which have been awaiting this decision before adopting similar regulations, will follow Uruguay’s example.President Vázquez said it is time for other nations to join Uruguay in this struggle, “without any fear of retaliation from powerful tobacco corporations, as Uruguay has done.”

Nevertheless, there is still a lot of public concern worldwide about the role that bilateral investment treaties has played in curbing the policy space of countries, including for health policies. There have also been serious concerns about the rulings made by other tribunals of ICSID and other arbitration centres, which have favoured the claims of companies and imposed high monetary awards against states. In the case of Philip Morris versus Uruguay, the tribunal’s ruling was correct in supporting the state’s right to regulate in the interest of public health. But the concerns in general are still valid. Other tribunals in other cases may or may not be so sympathetic to the public interest.

This is a reduced version of the article published in


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TPPA could be discarded due to US political dynamics Wed, 17 Aug 2016 10:13:21 +0000 Martin Khor

Martin Khor is the Executive Director of the South Center, based in Geneva

By Martin Khor
PENANG, Aug 17 2016 (IPS)

No country was more active in pushing for the Trans Pacific Partnership (TPP).  In the five years of negotiations, the United States cajoled, persuaded and pressurised its trade partners take on board its issues and positions.

Finally, when the TPP was signed in February by 12 countries, it was widely expected the agreement will come into force within two years, after each country ratifies it.

But now there are growing doubts if the TPP will become a reality. Ironically it may become a victim of US political dynamics as the TPP has become a toxic issue in its Presidential elections.

Opposing the TPPA is at the centre of Republican nominee Donald Trump’s campaign.He has declared the TPP would be a disaster, it would encourage US companies to move their production abroad and weaken domestic jobs, and called for the US to withdraw from the agreement.  In his typical extreme style, Trump said at a recent rally that the TPP “is another disaster, done and pushed by special interests who want to rape our country.”

Martin Khor

Martin Khor

Bernie Sanders, the Democrat Presidential candidate who ran a surprisingly close contest with Hillary Clinton, championed the anti-TPP cause, saying:  “We shouldn’t re-negotiate the TPP. We should kill this unfettered FTA which would cost us nearly half a million jobs.”

Hillary Clinton also came out against the TPPA, a turn-around from her position when she was Secretary of State and decribed it as a gold-standard agreement.  To counter suspicions that she would again switch positions if she becomes President, Clinton stated: “I am against the TPP, and that means before and after the elections.”

They may all be reflecting popular sentiment that trade agreements have caused the loss of millions of manufacturing jobs, stagnation in wages and contributed to the unfair distribution of benefits in US society, much of which has accrued to the top 1 or 10 per cent of income earners.

An article in New York Times (29 July 2016) began as follows:  “Democrats and Republicans agreed on almost nothing at their conventions this month, except this: free trade, just a decade ago the bedrock of the economic agendas of both parties, is now a political pariah.”

Besides the Presidential candidates, two other players will decide the TPPA’s fate:  President Obama and the US Congress.

Obama has been the TPPA’s main champion, passionately arguing that it will bring economic benefits, raise environmental and labour standards and give the US an advantage over China in Asian geo-politics.

Considering the TPP to be a key legacy of his presidency, Obama wants Congress to ratify the

agreement before his term ends.  But till now he has been unable to get the bill tabled because it would be certainly defeated in the election season, given the TPP’s unpopularity.

His last opportunity is to get the TPP passed during the lame-duck Congress session after the election on 8 November and before mid-January 2017.

“I am against the TPP, and that means before and after the elections.” Hillary Clinton
However, it is unclear whether there is enough support to table a lame-duck TPP bill, and if tabled whether it will pass.

Last year, a related fast-track trade authority bill was adopted with only slim majorities. Now, with the concrete TPPA before them, and the swing in mood, some Congress members who voted for fast track are indicating they won’t vote for TPP.

For example, Clinton’s running mate for Vice President, Senator Tim Kaine, who supported had fast track has now proclaimed his opposition to TPP.  Other leading Democrats who have publicly denounced TPP include  House Minority Leader Nancy Pelossi, and House Ways & Means Committee Ranking Member Sandy Levin who said:“It is now increasingly clear that the TPP agreement will not receive a vote in Congress this year, including in any lame duck session, and if it did, it would fail.”

Congress Republican leaders have also voiced their opposition.  Senate Majority Leader Mitch McConell said that the presidential campaign had produced a political climate that made it virtually impossible to pass the TPP in the “lame duck” session.

House Speaker, Republican Paul D. Ryan (R-Wis.) who played a leading role in writing the fast-track bill, said he sees no reason to bring TPP to the floor for a vote in the lame duck session because “we don’t have the votes.”

Meanwhile, six House Republicans  sent a letter to President Obama in early August last week asking him not to try to move TPP in a “Lame Duck”.

Though the picture thus looks grim for Obama, he should not be under-estimated. He said when the elections are over he will be able to convince Congress to vote for TPP.

“I will actually sit down with people on both sides, on the right and on the left,” he told the media. “We’ll go through the whole provisions….I’m really confident I can make the case this is good for American workers and the American people.”He added many people thought he would fail to obtain the fast track legislation, but he succeeded.

On  12 August, the Obama administration submitted a draft Statement of Administration Action, as required by the fast-track processfor introducing a TPP bill.  The document describes the steps the administration will take to implement changes to U.S. law required by the TPP.  Obama can later send a final statement and the draft of the implementing bill describing the actual changes to US law needed to comply with the TPP agreement.

Following that, a lot of deal-making is expected between the President and Congress members.  Obama will doubtless offer incentives or privileges to some of the demanding Congress members in order to obtain their votes, as was seen in the fast-track process.

To win over Congress, Obama will have to respond to those on the right and left who are upset on specific issues such as the term of monopoly for biologic drugs, or the inclusion of  ISDS (investor-state dispute settlement) in  the TPP.

To pacify them, Obama will have to convince them that what they want will anyway be achieved, even if these are not legally part of the TPP because the TPP text cannot be amended..

He can try to achieve this through bilateral side agreements on specific issues.  Or he can insist that some countries take on extra obligations beyond what is required by the TPP as a condition for obtaining a US certification that they have fulfilled theirTPP  obligations.  This certification is required for the US to provide the TPP’s benefits to its partners, and thus the US has previously made use of this to get countries to take on additional obligations, which can then be shown to Congress members that their objectives have been met.

Obama could theoretically also re-negotiate to amend specific clauses of the TPP in order to appease Congress.  But this option will be unacceptable to the other TPP countries.

In June, Malaysia rejected any notion of renegotiating the TPPA.  The question of renegotiating the TPPA does not arise even if there are such indications by US presidential candidates, said Tan Sri Dr Rebecca Fatima Sta Maria, then the secretary general of the International Trade and Industry Ministry.

“If the US does not ratify the TPPA then it will not be implemented,”  she said.  The other TPP members would have to resort to a ”different form of cooperation.”

Singapore Prime Minister Lee HsienLoong, on a recent visit to Washington, dismissed any possibility of reopening parts of the TPP as some Congress members are seeking. “Nobody wants to reopen negotiations,” he said. “We have no prospect of doing better and every chance of having it fall apart.”

In January, Canadian Trade Minister Chrystia Freeland said a renegotiation of the TPP is not possible. Japan also rejected renegotiations, which it defined as including changing existing side agreements or adding new ones.  This is not going to happen, said Japan’s Deputy Chief of Missions Atsuyuki Oike.

What happens if the US Congress does not adopt the TPP during the lame-duck period?  The 12 countries that signed the agreement in February are given 2 years to ratify it.

Enough countries to account for 85% of the combined GNP of the 12 countries must ratify it for the TPP to come into force.  As the US accounts for over 15% of the combined GNP, a prolonged non-ratification by it would effectively kill the TPPA.

Theoretically, if the TPP is not ratified this year, a new US President can try to get Congress to adopt it in the next year.  But the chances for this happening are very slim.

That’s why the TPP must be passed during the lame duck session.  If it fails to do so, it would mark the dramatic change in public opinion on the benefits of free trade agreements in the United States, the land that pioneered the modern comprehensive free trade agreements.

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Arable Lands Lost at Unprecedented Rate: 33,000 Hectares… a Day! Tue, 16 Aug 2016 17:50:46 +0000 Baher Kamal Desert, drought advancing. Photo UNEP

Desert, drought advancing. Photo UNEP

By Baher Kamal
ROME, Aug 16 2016 (IPS)

Humankind is a witness every single day to a new, unprecedented challenge. One of them is the very fact that the world’s arable lands are being lost at 30 to 35 times the historical rate. Each year, 12 million hectares are lost. That means 33,000 hectares a day!

Moreover, scientists have estimated that the fraction of land surface area experiencing drought conditions has grown from 10-15 per cent in the early 1970s to more than 30 per cent by early 2000, and these figures are expected to increase in the foreseeable future.

While drought is happening everywhere, Africa appears as the most impacted continent by its effects. According to the Bonn-based United Nations Convention to Combat Desertification (UNCCD), two-thirds of African lands are now either desert or dry-lands.

The challenge is enormous for this second largest continent on Earth, which is home to 1.2 billion inhabitants in 54 countries and which has been the most impacted region by the 2015/2016 weather event known as El-Niño.

Daniel Tsegai

Daniel Tsegai

IPS interviewed Daniel Tsegai, Programme Officer at UNCCD, which has co-organised with the Namibian government the Africa Drought Conference on August 15-19 in Windhoek.

“Globally, drought is becoming more severe, more frequent, increasing in duration and spatial extent and its impact is increasing, including massive human displacement and migration. The current drought is an evidence. African countries are severely affected,” Tsegai clarifies.

The African Drought Conference focus has been put on the so-called “drought resilience.”

IPS asks Tsegai what is this all about? “Drought resilience is simply defined as the capacity of a country to survive consecutive droughts and be able to recover to pre-drought conditions,” he explains.

“To begin with there are four aspects of Drought: Meteorological (weather), Hydrological (surface water), Agricultural (farming) and socioeconomic (effects on humans) droughts.”


The Five Big “Lacks”

Asked for the major challenges ahead when it comes to working on drought resilience in Africa, Tsegai tells IPS that these are mainly:

a) Lack of adequate data base such as weather, water resources (ground and surface water), soil moisture as well as past drought incidences and impacts;

b) Poor coordination among various relevant sectors and stakeholders in a country and between countries in a region;

c) Low level of capacity to implement drought risk mitigation measures (especially at local level);

d)    Insufficient political will to implement national drought policies, and

e) Economics of drought preparedness is not well investigated, achieving a better understanding of the economic benefits of preparing for drought before drought strikes is beneficial.

As for the objectives of the UNCCD, Tsegai explains that they are to seek to improve land productivity, to restore (or preserve) land, to establish more efficient water usage and improve the living conditions of those populations affected by drought and desertification.

According to Tsegai, some of the strategies that can be adopted to build drought resilience include:

First: a paradigm shift on the way we deal with drought. We will need to change the way we think about drought.

“Drought is not any longer a one time off event or even a ‘crisis’. It is going to be more frequent, severe and longer duration. It is a constant ‘risk’, he tells IPS.

“Thus, we need to move away from being reactive to proactive; from crisis management approach to risk management; from a piecemeal approach to a more coordinated/integrated approach. Treating drought as a crisis means dealing with the symptoms of drought and not the root causes,” Tsegai explains.

“In short, developing national drought based on the principles of risk reduction is the way forward.”

Second: Strengthening Drought Monitoring and early warning systems (both for drought and the impacts);

Third: Assessing vulnerability of drought in the country (Drought risk profiling on whom is likely to be affected, why? Which region and what will be the impacts?);

Fourth: Carrying out practical drought risk mitigation measures including the development of sustainable irrigation schemes for crops and livestock, monitoring and measuring water supply and uses, boasting the recycling and reuse of water and waste-water, exploring the potential of growing more drought tolerant crops and expanding crop insurance.


The Five Big Options

Asked what is expected outcome of the African Drought Conference, Tsegai answers:

  1.  To come up with a Common Strategy document at Africa level, a strategy that strengthens African drought preparedness that can be implemented and further shared at country level.
  1. To lead to the development of integrated national drought policies aimed at building more drought resilient societies based on the sustainable use and management of natural resources (land / soil, forest, biodiversity, water, energy, etc.).
  1. Countries are expected to come up with binding Drought Protocol- to adopt Windhoek Declaration for African countries-, which would be presented at the African Ministerial Conference on the Environment next year and expected to be endorsed at the African Union summit.
  1. With this in mind, the outcomes of the conference will be brought to the attention of the African Union for the collective African heads of states and governments’ endorsements, and
  1. It is further expected that the conference will strengthen partnerships and cooperation (South-South) to support the development of new and the improvement of existing national policies and strategies on drought management.


Droughts, The “Costliest” Disasters

It has been estimated that droughts are the world’s costliest natural disasters and affect more people than any other form of natural disaster, Tsegai tells IPS.

Race against time in drought-ravaged Southern Africa to ensure 23 million people receive farming support | Photo: FAO

Race against time in drought-ravaged Southern Africa to ensure 23 million people receive farming support | Photo: FAO

“Droughts are considered to be the most far-reaching of all natural disasters, causing short and long-term economic and ecological losses as well as significant spiralling secondary and tertiary impacts.”

To reduce societal vulnerability to droughts, a paradigm shift of drought management approaches is required to overcome the prevailing structures of reactive, post-hazard management and move towards proactive, risk based approaches of disaster management, he stresses.

“Risk based drought management is, however, multifaceted and requires the involvement of a variety of stakeholders, and, from a drought management policy perspective, capacities in diverse ministries and national institutions are needed.”

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The Economic Partnership Agreement has never made much sense for Tanzania Tue, 16 Aug 2016 17:02:17 +0000 Benjamin W. Mkapa

Benjamin William Mkapa is a former President of Tanzania and the Chair of the South Centre Board

By Benjamin W. Mkapa
GENEVA, Aug 16 2016 (IPS)

The EPA issue has once again re-emerged when, in early July, Tanzania informed East African Community( EAC) members and the European Union (EU) that it would not be able to sign the Economic Partnership Agreement (EPA) between European Union (EU)  and the six EAC member states.

The European Commission reportedly proposed signature of the EAC EPA in Nairobi, on the sidelines of the 14th session of the UN Conference on Trade and Development (UNCTAD XIV).

Benjamin William Mkapa

Benjamin William Mkapa

This is a major quadrennial event where all United Nations member states negotiate guidance for UNCTAD. For the European Commission, it would have been a propitious place for a signature ceremony as it would have projected the EPA as a “trade and development” agreement to the benefit of EAC.

Nevertheless, the agreement is antithetical to Tanzania’s as well as the region’s trade and development prospects.

The EPA for Tanzania and the EAC never made sense. The maths just never added up. The costs for the country and the EAC region would have been higher than the benefits.

As a least developed country (LDC), Tanzania already enjoys the Everything but Arms (EBA) preference scheme provided by the European Union.

In other words, we can already export duty-free and quota-free to the EU market without providing the EU with similar market access terms. If we sign the EPA, we would still get the same duty-free access, but in return, we would have to open up our markets for EU exports.

The EPA is a free trade agreement. Under it, Tanzania would have to reduce to zero the tariffs on 90 per cent of all its industrial goods trade with the EU, according duty-free access for almost all the EU’s non-agricultural products into the country.

Such a high level of liberalisation vis-à-vis a very competitive partner is likely to put our existing local industries in jeopardy and discourage the development of new industries.

Research using trade data shows that Tanzania currently produces and exports on 983 tariff lines (at the HS 6 digit level.) The EU produces and exports on over 5,000 tariff lines. If the EPA were implemented, 335 of the 983 products we currently produce would be protected in the EPA’s “sensitive list,” but 648 tariff lines would be made duty-free.

So the existing industries on these 648 tariff lines would have to compete with EU’s imports without the protection of tariffs. Will these sectors survive the competition?

These 648 tariff lines include agricultural products (maize products, cotton seed oil cake); chemical products (urea, fertilisers); vehicle industry parts (tyres); medicaments; intermediate industrial products ( plastic packing material, steel, iron and aluminium articles, wires and cables); parts of machines and final industrial products (weighing machines, metal rolling mills, drilling machines, transformers, generating sets, prefabricated buildings etc); parts of machines (parts of gas turbines, parts of cranes, work-trucks, shovels, and other construction machinery, parts of machines for industrial preparation/ manufacturing of food, aircraft parts etc).

We can already export duty-free and quota-free to the EU market without providing the EU with similar market access terms. If we sign the EPA, we would still get the same duty-free access, but in return, we would have to open up our markets for EU exports
The list does not stop here. Liberalisation (zero tariffs) also applies to the many industrial sectors that Tanzania and the EAC do not yet have existing production/exports ­ about 3,102 tariff lines for Tanzania.

Statistics show that in fact, for the EAC region, the African market is the primary market for its manufactured exports. In contrast, 91% of its current trade with the EU is made up of primary commodity exports (agricultural products such as coffee, tea, spices, fruit and vegetables, fish, tobacco, hides and skins etc).

Only a minuscule 6% or about $200,000 of EAC exports to the EU is composed of manufactured goods.In contrast, of the total EAC exports to Africa, almost 50% is made up of manufactured exports – about $2.5 billion – according to 2013 ­ 2015 data. Of this, $1.5 billion are EAC country exports to other EAC countries.

These figures tell two stories: One; the importance of the African market for EAC’s aspirations to industrialise. In contrast, the EU market plays almost no role in this. Two the EAC internal market makes up 60% of EAC’s manufactured exports to Africa, i.e., the EAC regional market is extremely valuable in supporting EAC’s industrialisation efforts.

The EPA would threaten this regional industrialisation opportunity that is currently blossoming since most EU manufactured products would enter the EAC market dutyfree. Just as our manufactured products are not competitive in the EU market, even though they can be exported dutyfree, might it not be the case that when EU manufactured products can come duty-free into the EAC market, EAC manufactured products may also not sell? The EPA could in fact destroy our economic regional integration efforts.

The pains EAC has taken to build a regional market may instead help serve EU’s commercial interests by offering the EU one EAC market, rather than ensuring that that market can be accessed by our own producers.

The other area where EPA hits the heart of our industrialisation aspirations are its disciplines on export taxes. At the World Trade Organization, export taxes are completely legal.The logic of export taxes is to encourage producers to enter into value-added processing, hence encouraging diversification and the upgradation of production capacities. Developed countries themselves had used these policy tools when they were developing.

The EU has a raw materials initiative aimed at accessing non-agricultural raw materials found in other countries. According to the European Commission, ‘securing reliable and unhindered access to raw materials is important for the EU. In the EU, there are at least 30 million jobs depending on the availability of raw materials.’ In implementing this initiative, the EU has used trade agreements to discipline export taxes.

The EPA prohibits signatories from introducing new export taxes or increase existing ones. For Tanzania and the EAC region with its rich deposits of raw material, including tungsten, cobalt, tantalum etc; such disciplines in the long-run would be incongruent with our objective to industrialise and add value to our resources.

The other area of loss resulting from the EPA is tariff revenue, and the numbers are not small. Conservative estimates (assuming import growth of 0.9% year on year) show that for the EAC as a whole tariff revenue losses would amount to $251 million a year by the end of the EPA’s implementation period Cumulative tariff revenue losses would amount to USD 2.9 billion in the first 25 years of the EPA’s life.

For Tanzania, the losses based on 2013/­2014 import figures are about $71 million a year by year 25. Cumulatively, just for Tanzania, they come up to $700 million over the first 25 years.

Where is the Promised Development Aid?

EU has made many promises that the EPA would be accompanied by development assistance. Hence the EAC EPA incorporates a ‘Development Matrix’ containing a list of economic development projects for the EAC. The price tag of implementing this Development Matrix is $70 billion.

The Matrix and assistance is to be reviewed every 5 years. For the time-being, the EU has pledged to contribute a paltry $3.49 million, which translates into 0.005% of the total required funds!This is also a far cry from the tariff revenue losses the region faces ­the $251 million a year mentioned above.

The only area where the EPA is supposed to serve the interest of the EAC is by providing duty-free access to Kenya. As a non-LDC, Kenya does not have duty-free access via the EU’s EBA. Kenya’s main export item to the EU is flowers ­ just over $500,000 a year.

Without the EPA, Kenyan’s flowers would be charged a 10% customs duty. There are other Kenyan exports also ­vegetables, fruit, fish – that will face tariffs. However, the flower industry has thus far been the most vocal. Nevertheless, all in all, Kenyan exports to the EU market (including the UK) amounts to about $1.5 billion.

If no EPA is signed, the extra duties charged to Kenyan exports amounts to about $100 million a year. Is this worth signing an EPA for? — The avoidance of duties of $100 million? The tariff revenue losses as the EPA is implemented (and more tariff lines are liberalised) would be comparable.

This does not even include the tariff revenue losses of the other EAC LDCs, nor the challenges posed to domestic/ regional industries. In addition, the Brexit development is further reason for the region to pause and reconsider.

The UK is a major export market for Kenya, absorbing 28% of Kenya’s exports to the EU. This reduces the EPA’s supposed ‘benefits’ by a quarter for Kenya. There is a possible solution for Kenya ­ to apply for the EU’s Generalised System of Preferences Plus scheme (GSP+). Under this, almost all of Kenya’s current exports could enter EU duty-free including flowers and fish.

This option could be explored. Alternatively all EAC countries would do well to attempt to diversify production and exports away from primary commodities towards value-added products, and also to diversify our export destinations. Africa is a critical market for EAC’s manufactured goods. Regional integration and trade is the most promising avenue for EAC’s industrial development. The EPA would derail us from that promise.

This article was published firstly in Daily News of Tanzania

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Youth Key to the Success of the SDGs in Kenya Fri, 12 Aug 2016 13:52:23 +0000 Siddharth Chatterjee and Werner Schultink Siddharth Chatterjee (@sidchat1) is the United Nations Resident Coordinator a.i for Kenya and the UNFPA Representative. Werner Schultink (@janwerners) is the UNICEF Representative to Kenya.]]> Elected national Children’s Government of Kenya for 2016. Photo credit: UNICEF Kenya\2016\Gakuo.

Elected national Children’s Government of Kenya for 2016. Photo credit: UNICEF Kenya\2016\Gakuo.

By Siddharth Chatterjee and Werner Schultink
NAIROBI, Kenya, Aug 12 2016 (IPS)

Consider this: in 1956 Sweden and Kenya’s population was roughly at 7 million. Today Sweden has about 9.8 million, while there are about 44 million Kenyans.

Fertility levels are declining gradually and Kenyans are living longer. It is estimated that there will be 85 million people in Kenya by 2050, with three quarters of these being below 35 years. While Kenya’s median age is 19, Sweden’s is 42.

Kenya’s mushrooming population presents an extraordinary opportunity and several challenges. The opportunity lies in the potential for a so-called demographic dividend of sustained rapid economic growth in the coming decades. There is reason for optimism that Kenya can benefit from a demographic dividend within 15 to 20 years. It is estimated that Kenya’s working age population will grow to 73 percent by year 2050, potentially bolstering the country’s GDP per capita 12 times higher than the present, with nearly 90 percent of the working age in employment. (NCPD Policy Brief: Demographic dividend opportunities for Kenya, July 2014.)

But Kenya’s demographic dividend is not guaranteed by its changing demographics alone. Key actions are required if children of today – who will be entering the labor force a decade’s time – are skilled, dynamic and entrepreneurial.

Unemployment among Kenya’s youth is now estimated to stand at 17.3 per cent compared to six per cent for both Uganda and Tanzania. A World Bank report says mass unemployment continues to deny Kenya the opportunity to put its growing labour force to productive use, thereby “denying the economy the demographic dividend from majority young population”.

Investment in children is Kenya’s best hope to set the right pre-conditions for this potentially transformative demographic dividend. Properly harnessed, the potential of the youth could propel the country forward as a dynamic and productive engine of growth in all the 17 Sustainable Development Goals (SDGs) set out last September.

At the beginning of this year, UN member states started the long journey to implement the SDGs and they all have 169 targets to achieve by end of December 2030. Some countries have already made good progress on the localization and mainstreaming of the SDGs in their development plans and budgeting processes. In fact, 22 of the 193 Member States that endorsed the SDGs voluntarily reported on their progress at the High-level Political Forum (HLPF) held last month in New York.

The Government Kenya played a very important role in the design of the global development agenda. About 20,000 Kenyans participated in the MyWorld Survey, in which they voted on the kind of world they wanted after the MDGs. Kenya was also one of many countries that commissioned consultations at national, regional and community levels to discuss the Post-2015 development agenda, and these culminated into a position paper that was presented for inclusion into the post-2015 development agenda.

The global development agenda dovetails with Kenya’s Vision 2030 in terms of timeline and key strategic focus and seeks as well to make Kenya globally competitive and prosperous for all citizens. Kenya Vision 2030 does capture the three dimensions of sustainable development including economic, social and environment. This makes it much easier to align the national development plan of Kenya to the SDGs.

However, as was evident with the millennium development goals (MDGs), the work of translating SDGs into results requires strategic actions. It requires that countries exploit fully the resources within in order to make the giant leaps needed to meet the targets.

Experts agree that for Kenya and the rest of Africa, these giant leaps will come through the youthful human resource, but only when the working age population becomes larger than people of non-working age.

In Kenya, there are about eight dependents for every working person, meaning that the state faces very high costs associated with economically unproductive populations. It means that Kenya must invest to create jobs, and invest in the young people with the skills to fill those jobs.

A society that wants to diversify its economy, achieve industrialization and socio-economic transformation and the SDGs must invest heavily in a strong, dynamic and empowered youth and women to drive this agenda. Kenya’s children will need quality learning that leads to educational attainment that is relevant to their lives, and gives them with the skills needed for the country’s changing labor market. Protection from ill health, malnutrition, violence, conflict, abuse and exploitation are also crucial for children – and their nation – to prosper.

In Kenya, the youth constitute an important segment of the country’s population, accounting for 35.4% of the total population and 66.7% of the adult population in 2009. The proportion of the youth category is expected to remain relatively high at 35.4% of the population in 2015, 34.8% in 2020, 34.6% in 2025 and 35.2% by 2030. This means that at least one in every three Kenyans will continue to be young.

Therefore, if Kenya and all other developing countries must successfully implement the SDGs, it is very important that young people, both boys and girls, no longer remain passive beneficiaries of development but must become equal and effective partners for development. This means that the problem of youth must be addressed as a policy and development issue, which must be mainstreamed in all planning and budgeting processes.

In addition, strong political commitment and leadership must be demonstrated at both national and local levels to address the problems of youth in Kenya. High growth rates must be translated into skills and jobs for the increasing young population and workforce in Kenya. Such actions will indeed help to keep young people away from being targets of youth radicalization and violent extremism.

Investing in youth is not only an investment in the future but also fundamental for the successful implementation of the SDGs.

Today 12 August 2016 is International Youth Day. Let’s commit to investing in youth. It is not only an investment in the future but also fundamental for the successful implementation of the SDGs.

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Youth Employment: Turning Workplace Partnerships into Opportunity Fri, 12 Aug 2016 09:53:45 +0000 Sofia Garcia Sofía García García is the SOS Children’s Villages Representative to the United Nations in New York.]]> Sofía García García is the SOS Children’s Villages Representative to the United Nations in New York.]]> 0 War on Climate Terror (II): Fleeing Disasters, Escaping Drought, Migrating Thu, 11 Aug 2016 16:13:57 +0000 Baher Kamal Young, new arrivals from Sudan’s Darfur region endure a sandstorm in the border town of Bamina, eastern Chad. Rainfall in this region has been in decline since 1950. This, coupled with deforestation, has had a devastating effect on the environment. Credit: ©UNHCR/H.Caux

Young, new arrivals from Sudan’s Darfur region endure a sandstorm in the border town of Bamina, eastern Chad. Rainfall in this region has been in decline since 1950. This, coupled with deforestation, has had a devastating effect on the environment. Credit: ©UNHCR/H.Caux

By Baher Kamal
ROME, Aug 11 2016 (IPS)

“No one can deny the terrible similarities between those running from the threat of guns and those fleeing creeping desertification, water shortages, floods and hurricanes.”

Hardly a short, simply-worded statement could so sharply describe the ignored human drama of millions of victims of man-made wars, violence, poverty and disasters like the one spelled out by the authoritative voice of Prof. Dr. Konrad Osterwalder, the former rector of United Nations University, a global think tank and postgraduate teaching organisation headquartered in Japan.

But while widespread violence and climate catastrophes are common to all continents and countries, there is an overwhelming consensus among experts, scientific community and international specialised organisations that Africa is the most impacted region by them.

Only second to Asia, both extension and population wise, Africa is on the one hand home to nearly half of some 40 on-going armed conflicts. On the other, this continent made of 54 states and 1,2 billion inhabitants, is the most hit region by all sorts of consequences of growing climate change—to which by the way it is the least originator.

Key Facts

The cause-effect relationship between climate and massive population movement is already an indisputable fact. See what world specialised organisations say:

1. – Droughts combined with population growth, a lack of sustainable land and water management, natural disasters, political conflicts and tensions and other factors have resulted in massive population movements across Africa, the United Nations Environment Programme (UNEP) reports.

Somali refugees flee flooding in Dadaab, Kenya. The Dadaab refugee camps are situated in areas prone to both drought and flooding, making life for the refugees and delivery of assistance by UNHCR challenging. Credit:©UNHCR/B.Bannon

Somali refugees flee flooding in Dadaab, Kenya. The Dadaab refugee camps are situated in areas prone to both drought and flooding, making life for the refugees and delivery of assistance by UNHCR challenging. Credit:©UNHCR/B.Bannon

Displacement in Africa is the result of a multitude of causes including struggles for political power, communal violence, disputes over land, floods, storms and other such natural hazards, it adds. More than half of the world’s fragile states are in sub-Saharan Africa, and some of these states have the largest numbers of internally displaced persons (IDPs).

“Africa has more countries affected by displacement than any other continent or region, and was home to more than 15 million internally displaced persons in 2015.”

In short, “the relationship between displacement and the environment is well established in Africa. People leave places with slow-onset environmental degradation, such as drought and desertification and continue to flee rapid on-set environmental emergencies such as tropical storms and flash floods,” says Saidou Hamani, Regional Coordinator for Disasters and Conflict sub-programme, UNEP Regional Office for Africa.

2. – According to the 2016 Global Report on Internal Displacement, there were 27.8 million new displacements in 127 countries during 2015, roughly the equivalent of the populations of New York City, London, Paris and Cairo combined; of the total, 8.6 million were associated with conflicts and violence in 28 countries, while 19.2 million were associated with disasters in 113 countries.

Famine refugees in East Africa are caught in a dust storm. Photo credit: flickr/Oxfam International

Famine refugees in East Africa are caught in a dust storm. Photo credit: flickr/Oxfam International

The growing intensity of meteorological disasters due to climate change, coupled with the effects of environmental degradation is likely to continue being a factor behind human displacement.

The International Organization of Migration (IOM) predicts there will be 200 million environmentally-displaced people by the year 2050 with major effects on countries of origin, transit countries, as well as receiving countries.

Individuals and communities displaced by disasters and climate change and those displaced by conflicts often experience similar trauma and deprivation. They may have protection needs and vulnerabilities comparable to those whose displacement is provoked by armed violence or human rights abuses. “Climate change is expected to further exacerbate the stress that fragile states are already facing.”“Africa has more countries affected by displacement than any other continent or region, and was home to more than 15 million internally displaced persons in 2015” - UNEP

In Africa, environmental degradation and food insecurity are related to floods and other factors such as diminishing pasture for cattle as well as water, firewood and other natural resource scarcities, says IOM. Such factors contribute to displacement, resulting in increasing competition for scarce resources, which also contributes to armed conflict, particularly between pastoralists and sedentary communities.

This is especially pronounced in the Sahel (Lake Chad Basin), Sudan, South Sudan, Djibouti, Somalia, Ethiopia and Kenya, all of which have large pastoralist populations who migrate according to seasonal patterns and climatic variations.

Future forecasts vary from 25 million to 1 billion environmental migrants by 2050, moving either within their countries or across borders, on a permanent or temporary basis, with 200 million being the most widely cited estimate. This figure equals the current estimate of international migrants worldwide.

3. – “Changes in the regional climate are impacting issues linked to the availability of natural resources essential to livelihoods in the region, as well as food insecurity. Along with important social, economic and political factors, this can lead to migration, conflict or a combination of the two,” according to Livelihood Security Climate Change, Migration and Conflict in the Sahel.

4. – It is evident that gradual and sudden environmental changes are already resulting in substantial population movements, the UN Refugee agency (UNHCR) reports.

“The number of storms, droughts and floods has increased threefold over the last 30 years with devastating effects on vulnerable communities, particularly in the developing world.”

“Climate change and the environment have a big impact on the lives of millions of forcibly uprooted people around the world.”

Many of them rely on the environment for survival, particularly during emergencies – for food, shelter, energy, fire and warmth, medicine, agriculture, income-generation activities and more, adds UNHCR.

“Unsustainable use of natural resources can lead to environmental degradation, with lasting impacts on natural resources and on the well-being of the displaced and host communities. Additionally, competition over scarce natural resources, such as firewood, water and grazing land, can lead to friction.”

5. – Gradual changes in the environment tend to have an even greater impact on the movement of people than extreme events. For instance, over the last thirty years, twice as many people have been affected by droughts as by storms (1.6 billion compared with approx. 718m),according to the International Disaster Database.

In 2008, 20 million persons have been displaced by extreme weather events, compared to 4.6 million internally displaced by conflict and violence over the same period.

6. – Disasters and climate change are a growing concern. Since 2009, an estimated one person every second has been displaced by a disaster, with an average of 22.5 million people displaced by climate or weather-related events since 2008, according to the International Displacement Monitoring Centre report. (IDMC 2015).

7. – The Intergovernmental Panel on Climate Change, the UN’s science advisory board, projects an increase in the number of displaced over the course of this century. The majority of the people of concern to UNHCR are concentrated in the most vulnerable areas around the world.

Climate change will force people into increasing poverty and displacement, exacerbating the factors that lead to conflict, rendering both the humanitarian needs and responses in such situations even more complex.

Now two key related events are scheduled to take place in the coming days: Africa Drought Conference in Windhoek, Namibia, August 15-19, and the World Humanitarian Day, August 19.

Will this growing, unstoppable human drama deserve the attention of world politicians or at least of the mainstream

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Expansionary fiscal consolidation myth Thu, 11 Aug 2016 12:15:03 +0000 Anis Chowdhury and Jomo Kwame Sundaram Anis Chowdhury was Professor of Economics, University of Western Sydney, and held various senior United Nations positions in New York and Bangkok. Jomo Kwame Sundaram was UN Assistant Secretary General for Economic Development.]]>

Anis Chowdhury was Professor of Economics, University of Western Sydney, and held various senior United Nations positions in New York and Bangkok. Jomo Kwame Sundaram was UN Assistant Secretary General for Economic Development.

By Anis Chowdhury and Jomo Kwame Sundaram
KUALA LUMPUR, Malaysia, Aug 11 2016 (IPS)

The debt crisis in Europe continues to drag on. Drastic measures to cut government debts and deficits, including by replacing democratically elected governments with ‘technocrats’, have only made things worse. The more recent drastic expenditure cuts in Europe to quickly reduce public finance deficits have not only adversely impacted the lives of millions as unemployment soared. The actions also seem to have killed the goose that lay the golden egg of economic growth, resulting in a ‘low growth’ debt trap.

Government debt in the Euro zone reached nearly 92 per cent of GDP at the end of 2014, the highest level since the single currency was introduced in 1999. It dropped marginally to 90.7 per cent at the end of 2015, but is still about 50 per cent higher than the maximum allowed level of 60 per cent set by the Stability and Growth Pact rules designed to make sure EU members “pursue sound public finances and coordinate their fiscal policies”. The debt-GDP ratio was 66 per cent in 2007 before the crisis.

High debt is, of course, of concern. But as the experiences of the Euro zone countries clearly demonstrate, countries cannot come out of debt through drastic cuts in spending, especially when the global economic growth remains tepid, and there is no scope for the rapid rise of export demand. Instead, drastic public expenditure cuts are jeopardizing growth, creating a vicious circle of low growth-high debt, as noted by the IMF in its October 2015 World Economic Outlook.

Deficits, debt and fiscal consolidation

Using historical data, a number of cross-country studies claimed that fiscal consolidation promotes growth and generates employment. Three have been the most influential among policy makers dealing with the economic crisis unleashed by the 2008-2009 global financial meltdown.

First, using data from advanced and emerging economies for 1970-2007, the IMF’s May 2010 Fiscal Monitor claimed a negative relationship between initial government debt and subsequent per capita GDP growth as a stylized fact. On average, a 10 percentage point increase in the initial debt-GDP ratio was associated with a drop in annual real per capita GDP growth of around 0.2 percentage points per year. By implication, a reduction in debt-GDP ratio should enhance growth. Released just before the G20 Toronto Summit, it provided the ammunition for fiscal hawks urging immediate fiscal consolidation. The IMF has since admitted that its fiscal consolidation advice in 2010 was based on an ad-hoc exercise.

Using a different methodology, the IMF’s 2010 World Economic Outlook reported that reducing fiscal deficits by one per cent of GDP “typically reduces GDP by about 0.5% within two years and raises the unemployment rate by about 0.3 percentage point”. Domestic demand—consumption and investment—falls by about 1%”. Similarly, a 2015 IMF research paper concluded that “Empirical evidence suggests that the level at which the debt-to-GDP ratio starts to harm long-run growth is likely to vary with the level of economic development and to depend on other factors, such as the investor base”.

The second study, of 107 episodes of fiscal consolidation in all OECD countries during 1970-2007 by Alberto Alesina and Silvia Ardagna, found 26 cases (out of 107) of fiscal consolidation associated with resumed growth, probably influenced policy makers most. This happened despite the actual finding that “…sometimes, not always, some fiscal adjustments based upon spending cuts are not associated with economic downturns.”

Yet, in Harvard Professor Alesina’s public statement, “several” became “many” and “sometimes” became “frequently”, and mere “association” implied “causation”. In April 2010, Alesina told European Union economic and finance ministers that “large, credible and decisive” spending cuts to rescue budget deficits have frequently been followed by economic growth. Alesina was even cited in the official communiqué of an EU finance ministers’ meeting.

Jonathan Portes of the UK Treasury has acknowledged that Alesina was particularly influential when the UK Treasury argued in its 2010 ‘Emergency Budget’ that the wider effects of fiscal consolidation “will tend to boost demand growth, could improve the underlying performance of the economy and could even be sufficiently strong to outweigh the negative effects”. Christina Romer, then Chair of the US President’s Council of Economic Advisors, also acknowledged that the paper became ‘very influential’, noting exasperatedly that “everyone has been citing it”.

Researchers have found serious methodological and data errors in this work. Historical experience, including that of current Euro zone economies, suggests that the probability of successful fiscal consolidation is low. These successes depended on factors such as global business cycles, monetary policy, exchange rate policy and structural reforms.

Drawing on the IMF’s critique of Alesina and his associates, even the influential The Economist (30 September, 2010) dismissed the view that fiscal consolidation today would be “painless” as “wishful thinking”. Nevertheless, the IMF’s policy advice remained primarily in favour of fiscal consolidation regardless of a country’s economic circumstances or development level. There seems to be a clear disconnect between the IMF’s research and its operations.

The third study, by Harvard Professors Carmen Reinhart and Kenneth Rogoff on the history of financial crises and their aftermaths, claimed that rising government debt levels are associated with much weaker economic growth, indeed negative rates. According to them, once the debt-to-GDP exceeds the threshold ratio of 90 per cent, average growth dropped from around 3 per cent to -0.1 per cent in the post-World War II sample period. Since then, however, significant data omissions, questionable weighting methods and elementary coding errors in their original work have been uncovered. Nevertheless, the Reinhart-Rogoff findings were seized upon by the media and politicians around the world to justify austerity policies and drastic public spending cuts.

Bill Clinton, fiscal hawk?

Supporters of austerity based fiscal consolidation often cite President Bill Clinton’s second term in the late 1990s. However, the data shows that fiscal consolidation was achieved through growth, contrary to the claim that austerity produced growth. Clinton broke with the traditional policy of using the exchange rate to address current account or trade imbalances, opting for a strong dollar. Thus, the US dollar rose against major currencies from less than 80 in January 1995 to over 100 by January 2000.

The strong US dollar lowered imported inflation, allowing the Fed to maintain low interest rates even though unemployment fell markedly. The low interest rate policy not only boosted growth, but also helped keep bond yields close to nominal GDP growth rates. Thus, the interest burden was kept under control, with primary balances stable at close to zero.

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The Wild Cards Wed, 10 Aug 2016 15:59:32 +0000 Rafia Zakaria By Rafia Zakaria
Aug 10 2016 (Dawn, Pakistan)

The Rio Olympics began with the signature fanfare that accompanies the Games every four years. However, unlike every year, the nature and size of the spectacle, the synchronised dancers, over-the-top fireworks and the millions spent brought a new set of disappointments with them.

The writer is an attorney teaching constitutional law and political philosophy.

The writer is an attorney teaching constitutional law and political philosophy.

Brazil is one of the BRICS nations, the Brazil, Russia, India, China and South Africa constellation that is supposed to represent the hope of the global south — a discourse of globalism not centred on the West, standing up to the colonial underpinnings of so much of the world order.

Yet, if you were holding your breath to see any of this reflected in the opening ceremony of the Rio Olympics, you waited in vain. True, the indigenous tribes of the country, disenfranchised, marginalised and fetishised, were included in the ceremony; but they were forced into the same round of antics and acrobatics that could have belonged in any nation with less of an anti-colonial agenda. If anything, the tributes to all things specifically Brazilian melded in with the general rituals of pomp and pageantry.

A better Olympics, one that is not exploitative, may simply not be possible.

It is not Brazil’s fault and, in a sense, Brazil’s failure underlines the elusiveness of a decolonial discourse that recognises histories of oppression and exclusion, and yet imagines and believes in the possibility of participating in global discourse. Take, for instance, the parade of nations. Out of the 206 nations participating in the Rio Olympics, 75 have never won a medal. The meaning of this statistic is that for the vast majority of participants, this parade at the beginning of the Games was the single moment in which their participation and their nation had a fleeting moment of recognition.

In Rio this year, this moment was even more fleeting. In a noble effort to thumb their nose at the dominance of English, which can in some rough approximation be equivocated with the omniscience of the colonial worldview, this parade was held in the order prescribed by the Portuguese and not the English alphabet.

It was a great idea, one no doubt adding to what the local organisers may have deemed their moment of anti-colonial independence. Its actual consequence, sadly, was rather dismal. Many countries that do not speak Portuguese but may have had some bare familiarity with the English alphabet (admittedly only owing to the colonial excesses of the British) waited in vain and then abandoned altogether their wait for their nation’s moment.

Brazil’s use of the Portuguese alphabet may have been successful in thumbing its nose at America, but it also ended up excluding several hundreds of millions of others who could make little sense of the means via which the parade of nations was being conducted (not to mention that the Portuguese themselves were colonists, their language an export to Brazil).

The case of Brazil and the Rio Olympics, then, represents the larger problem inherent in decolonisation: the efforts of emerging powers to have it both ways. In this case, Brazil wants millions to watch and the millions spent on the opening ceremony are evidence of that. Millions earned, pro-Olympic Brazilians could argue, means more available to solve the problems of inflation, homelessness, epidemic diseases and all the rest that plague Brazil in its Olympic moment.

It is possibly because of just this that the general framework of Olympic largesse was replicated with such a lack of originality, such a seeming concern toward staying close to what has been done before.

This, it was probably estimated, would ensure an audience and, with the revenue from advertising and endorsements, guarantee the avalanche of cash that all Olympic host nations await. Homage to the uniqueness of Brazil, its efforts to recapture a pre-colonial past, to restore the dignity of its own indigenous people and to present the possibility of a discourse not dominated by imperial erasures, were to be fitted into the details.

The middle ground — a more cheerful anti-colonialism that courts capitalist spending while showing off its local colour, reclaims pre-colonial history without bitterness, shakes hands with former oppressors only to spit behind their backs — is rather marshy and inhospitable. In this sense, the tenacious protesters that picketed outside the selfie-ridden enforced cheer of the inside of the stadium are probably correct; there can be no “moderate exploitation of the poor” and no “thoughtful presentation of over-the-top spending”.

It is perhaps the very framework of the Games, their crucial reliance on inducing awe in the onlooker, an effect that in turn relies essentially on power fitfully and thoughtlessly paraded, that is flawed. A better Olympics, one that is not exploitative, that truly respects and reifies marginalised narratives, may simply not be possible.

While it may not have been intentional, Pakistan’s minimal participation can be justified on the basis of these noble reasons, a disavowal of the Games as showcasing the rich and powerful and their attendant advantages. Pakistan sent perhaps its smallest Olympic squad ever to Rio, a majority of the members of its delegation participating only as wild-card entries. In reality, the small size of the delegation was a product of inattention to procedures: some athletes could not participate because they did not apply for Brazilian visas far enough in advance. This detail is admittedly the fault and product of the neglect-afflicted ranks of Pakistani sports (other than cricket), so commonplace and unsurprising that they no longer make the news.

If Brazil was in search of a real post-colonial gesture, it could have considered loosening its ever-tight visa regime to permit more athletes from poor countries to attend without being subject to the inefficiencies of their nation’s bureaucrats. Unlike white and wealthy others, these left-out athletes would not have worried about the Zika virus or the size of their quarters, relishing instead the very opportunity to compete. Brazil did not choose to follow this path and so the Olympic Games in Rio are a disappointment — a dimmer, more budget-conscious, more mosquito-infested, replication of Olympics past.

The writer is an attorney teaching constitutional law and political philosophy.
Published in Dawn, August 10th, 2016

This story was originally published by Dawn, Pakistan

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Kenya’s Health Sector Challenges Present the Ideal Setting for Creating Shared Value Wed, 10 Aug 2016 11:36:53 +0000 Siddharth Chatterjee and Amit Thakker Siddharth Chatterjee, (@sidchat1) is the United Nations Population Fund (UNFPA) Representative to Kenya. Dr. Amit Thakker (@docthakker) is the chairman of Kenya Healthcare Federation. ]]> UNFPA and private sector representatives in Mandera county in Northern Kenya to develop solutions with the community and the county government. Credit: © Ilija Gudnitz Weber

UNFPA and private sector representatives in Mandera county in Northern Kenya to develop solutions with the community and the county government. Credit: © Ilija Gudnitz Weber

By Siddharth Chatterjee and Dr. Amit Thakker
Mandera County, Kenya, Aug 10 2016 (IPS)

The increased budgetary allocations to the health sector by county governments point to an acknowledgement not only of the enormous challenges facing the sector, but also of good health as a prerequisite to overall development.

There has never been a better time for partnerships that harness the power of business to drive prosperity by tackling health challenges. The combination of a growing population and preventable infections means that companies with a focus on solving consumer challenges can expect to record impressive profits while at the same time serving a social good.

This is the approach that has brought together several public, private and non-profit partners to reduce illness and deaths among mothers and children in six counties in Kenya. Coordinated by the United Nations Population Fund (UNFPA), the Private Sector Health Partnership (PSHP) is an Every Woman Every Child joint commitment whose other partners include the Kenya Healthcare Federation, Philips, Huawei, Safaricom, MSD, and GSK.

The partnership aims to harnesses the strength, resources and expertise of the private sector, in close collaboration with the Government of Kenya and the six County Governments of Mandera, Wajir, Marsabit, Isiolo, Lamu and Migori. These counties contribute close to 50% of the country’s maternal deaths. ¬

The partnership seeks to significantly improve health outcomes in the counties, while also potentially creating shared value business opportunities, ensuring a sustained engagement that has a social as well as economic return on investment.

With support from the World Economic Forum, PSHP Kenya has built a strong platform to engage with key public and private stakeholders, create political support for the initiative as well as catalyse expertise for design of leapfrogging innovations.

It is not a partnership that is led by any one sector, but a coalition model where all players can see opportunity in line with their individual missions.

The active participation of the county governments and community organisations is helping to tweak technologies to suit local purposes. This approach is working impressively for instance in Mandera where Philips is establishing a Community Life Centre.

The Life centre is a health facility for providing vital primary care to mothers and children as well as a community hub. The local community can buy clean water and sustainable products like smokeless stoves and home solar lighting products, and benefit from solar-powered LED outdoor lighting that illuminates the area at night, improving security and extending daylight hours.

Other players like Safaricom and Huawei have started to pool their unique expertise and services in IT and mobile connectivity to design and test transformational digital health solutions. MSD has announced a USD 1.5 million grant, through its Merck for Mothers initiative, to a new project by JHPIEGO which will engage with the Kenya Red Cross Society (KRCS) in Mandera and Migori.

UNFPA has also partnered with the Kenyan innovation incubator Nailab to support young Kenyan entrepreneurs and we have partnered with the First Lady of Kenya, Ms. Margaret Kenyatta’s Beyond Zero campaign to bring together government, private sector and the thriving civil society.

The situation in the six counties has in the past contributed to the country’s reputation as a dangerous place for a woman to give birth. Reduction of maternal and child mortality rates are some of the Millennium Development Goal targets that Kenya missed last year. However, it is clear that it is also an opportunity for collective action and a commitment to shared value creation.

In the words of Michael Porter; “for too long have business and society been pitted against each other”. The PSHP is showing the way in how different sectors with separate mission statements can be galvanized to find intersections in solving social problems.

For long, suspicions about the private sector’s motives have created a wedge, preventing social programmes from accessing the knowledge, ideas, capabilities and resources that abound in private companies.

Shared value propositions will enable different sectors to leverage each other’s assets, connections, creativity and expertise to achieve mutually beneficial outcomes.

We must continue finding new and creative ways to increase collaboration between government, the private sector and non-profits if we hope to reach Sustainable Development Goals.

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