Inter Press Service » Trade & Investment http://www.ipsnews.net News and Views from the Global South Fri, 01 Jul 2016 19:48:48 +0000 en-US hourly 1 http://wordpress.org/?v=4.1.12 From Grexit to Brexit: Eurosceptics Claim their -Exithttp://www.ipsnews.net/2016/06/from-grexit-to-brexit-eurosceptics-claim-their-exit/?utm_source=rss&utm_medium=rss&utm_campaign=from-grexit-to-brexit-eurosceptics-claim-their-exit http://www.ipsnews.net/2016/06/from-grexit-to-brexit-eurosceptics-claim-their-exit/#comments Mon, 27 Jun 2016 18:46:17 +0000 Editor sunday http://www.ipsnews.net/?p=145839 By Editor, Sunday Times, Sri Lanka
PARIS, , Jun 27 2016 (The Sunday Times - Sri Lanka)

AFP – It started with “Grexit” — the long trumpeted but never realised axing of Greece from the European Union. It was then reborn as “Brexit” as Britain started down the — this time voluntary — path of leaving the bloc.

The “-exit” formulation was coined by two economists from US financial giant Citigroup in February 2012 to describe the possible of departure of Greece from the EU.

It has now taken on a life of its own on social media, with eurosceptics across the continent all clamouring for their own vote on EU membership: – “Frexit “: French far-right leader Marine Le Pen called for a “Frexit” shortly after the results of Britain’s membership referendum were announced. “Victory for Freedom! As I have been asking for years, we must now have the same referendum in France and EU countries,” she declared on Twitter.

– “Nexit “: “Now it is our turn,” trumpeted Geert Wilders, the leader of the anti-Islam far-right Freedom Party (PVV) in the Netherlands, after Britain opted out of the EU. Wilders has promised to make a referendum on a “Nexit” a central plank of his party’s election campaign.

– “Oexit “: Austria’s version comes from Oesterreich, the country’s name in Austrian. And the idea is gaining ground in a country where far right party leader Norbert Hofer came within a hair’s width of being elected to the largely ceremonial but coveted post of president last month. “Outstria” has been suggested as an alternative.

– “Swexit “: The far right Sweden Democrats have floated the idea of a “Swexit”, with opinion polls suggesting support for leaving the EU stands at 31 percent.

– “Fixit “: Although the English version doesn’t quite hold the right connotations, a petition calling for a Finnish exit has garnered thousands of signatures.

– “Dexit “: The phrase has emerged in the Danish press, where the populist Danish People’s Party (DPP) has been calling for a renegotiation of its EU accords.

– “Gerxit “: It has appeared in French- and English-language media, but the idea of a “Gerxit” has little traction back at home in Germany. Though right-wing populist Alternative for Germany (AfD) party Frauke Petry did describe “Brexit” as a warning to the EU. “If the EU does not abandon its quasi-socialist experiment of ever-greater integration then the European people will follow the Brits and take back their sovereignty,” he said.

– “Italexit “: A bid to leave the EU has also not gained much ground at home in Italy, a founding member of the union — apart from with the country’s most prominent far-right politician, Matteo Salvini. “Cheers to the bravery of free citizens,” the leader of the anti-immigration, anti-EU Northern League wrote on Twitter. “Heart, head and pride beat lies, threats and blackmail. THANKS UK, now it is our turn #Brexit”.

This story was originally published by The Sunday Times, Sri Lanka

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The Brexit Shock – Now All Is Up in the Air!http://www.ipsnews.net/2016/06/the-brexit-shock-now-all-is-up-in-the-air/?utm_source=rss&utm_medium=rss&utm_campaign=the-brexit-shock-now-all-is-up-in-the-air http://www.ipsnews.net/2016/06/the-brexit-shock-now-all-is-up-in-the-air/#comments Sun, 26 Jun 2016 06:03:00 +0000 Jan Oberg http://www.ipsnews.net/?p=145827 The author is TFF Director & Co-founder, peace studies professor. PhD in sociology, peace and future researcher. Associate professor (Docent) at Lund University, thereafter visiting or guest professor at various universities. Former director of the Lund University Peace Research Institute (LUPRI); former secretary-general of the Danish Peace Foundation; former member of the Danish government’s Committee on security and disarmament.]]>

The author is TFF Director & Co-founder, peace studies professor. PhD in sociology, peace and future researcher. Associate professor (Docent) at Lund University, thereafter visiting or guest professor at various universities. Former director of the Lund University Peace Research Institute (LUPRI); former secretary-general of the Danish Peace Foundation; former member of the Danish government’s Committee on security and disarmament.

By Jan Oberg
Lund, Sweden, Jun 26 2016 (IPS)

The UK, Europe and the rest of the world will be affected. But there has been no planning for this anywhere.

It’s now all up in the air what this Brexit vote will be the starting point of. All we can safely predict is that we are in for interesting times!

Jan Oberg

Jan Oberg

Why did it happen?

Arrogant corporate and other elites continuously enriching themselves against all common social sense and ignoring the legitimate needs and concerns of ordinary citizens, women in particular – so, class and gender.

So too that more highly educated people tended to vote for Remain and older people voting Leave – more interesting sociological analysis here.

Interestingly, the whole art world supported Remain – and now fear for the effects of Brexit on Britain’s cultural development.

An EU that has failed to create a new, better way of doing politics, merely growing its original democratic deficit – so, lack of real democracy.

An EU that has had a woefully inadequate, cynical response to a refugee crisis caused by leading EU member states’ warfare – so, (mis)management and lack of leadership.

Significantly, the leading Muslim Association of Britain, MAB, supported Remain with the argument that ”Exit from the EU runs the risk of perpetuating rifts in British society, which would increase levels of hate crimes against British Muslims.” So, Islamophobia.

A general sense (but sometimes denial) of insecurity about the future all over the Western world, a deep sense of failure, loss, sense of risk of war in Europe and the fact that the rest of the world is moving ahead and will surpass the West; a sense that of the West lead by the the US getting relatively weaker and lacking leadership – so, psycho-political-civilisational insecurity.

A fall-back to ”me and my home” and closing the doors to the wider world world’s problems – nationalism, xenophobia, right-wing, neo-nazism populism and all the things many of us hoped had visited Europe for the last time – so, populism/nationalism/regression.

What could it lead to?

An exit domino effect in a number of countries – referendums and eventually a quite small EU or no EU.

A punishment by Germany and other EU of the UK for leaving, depending somewhat on whether the post-EU Britain will not only move out of the EU but also closer to the US.

It could also, in the best of cases, lead to a re-think throughout the EU and a real effort to do things differently – but unlikely given the EU is already in crisis and lack visionaries in politics.

A referendum in Scotland, further reducing the unitedness of the Kingdom.

A reshuffling in the global economy – London being so much of a global financial centre. Where will the banks and investors go now? What will China do that had London as it’s major hub?

A tumbling of the British £ and turmoil on the financial markets, weakening of the US$?

A Britain in deep economic crisis – or perhaps starting out on a new course with a great future, speeding ahead of the average EU?

A Britain that ties itself (even more) to the US in security political terms and an increasing conflict between those two and EU/NATO countries – spelling the dissolution of NATO.

What does it signify?

That democracy works – and that it doesn’t. The referendum instrument is an utterly democratic method – as Switzerland continues to prove to the world.

But then, is it wise that such an important decision can be made with such a small majority? Wouldn’t it have been reasonable to demand, say, 2/3 majority for Leave?

To ignore now what over 48% wanted isn’t good. But, anyhow, nobody trusts politicians nowadays and perhaps the effects will be smaller than most fear today.

That the – Western centre – doesn’t hold anymore. Such an important country leaving the EU is a blow beyond imagination to the entire idea of that Union.

Basically that the West is getting weaker and while trying to ’divide and rule’ it is fragmenting from inside.

The EU is getting weaker in spite of still being the largest economic bloc in human history. Because of the rise of other economies, the 28 countries accounted for 30% of the world’s total output in 1980 and 16,5% in 2015. With the UK leaving, the EU loses 15% of its GDP.

That the EU construction and Lisbon Treaty, written up by three old men, was wrong and outdated from the outset and lacked every potential to appeal to the diverse citizenry throughout Europe, particularly the younger ones.

That there is no vision and strategy; no one – no one! – seems to have the faintest idea about what will happen now – as Ken Livingstone, London’ former mayor, expressed it on Russia Today the morning after.

Be sure that Brexit on June 23, 2016 will be remembered as a turning point. And be sure that, while we do not know what will happen after Brexit, it’s not a message of good things to come for the already crumbling, vision-losing Western part of our world.

”May you live in interesting times” as the English say, considering it a curse. The Chinese – to whom this phrase is often falsely attributed – expresses it differently: ”Better to be a dog in peaceful time, than to be human in a chaotic (warring) time.”

Both probably meaning that our time is more fraught with insecurity than ever…

 
Jan Oberg’s article was published on 24 June 2016 in: TFF – Transnational Foundation for Peace and Future Research. Go to Original.

The statments and views expressed in this article are those of the author and do nt necessarily represent those of IPS

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Brex’it, So Be’it; And Then What?http://www.ipsnews.net/2016/06/brexit-so-beit-and-then-what/?utm_source=rss&utm_medium=rss&utm_campaign=brexit-so-beit-and-then-what http://www.ipsnews.net/2016/06/brexit-so-beit-and-then-what/#comments Sun, 26 Jun 2016 05:19:41 +0000 Johan Galtung http://www.ipsnews.net/?p=145824 The author is professor of peace studies, dr hc mult, is founder of the TRANSCEND Network for Peace, Development and Environment and rector of the TRANSCEND Peace University-TPU. He has published 164 books on peace and related issues, of which 41 have been translated into 35 languages, for a total of 135 book translations, including ‘50 Years-100 Peace and Conflict Perspectives,’ published by the TRANSCEND University Press-TUP.]]> Source: TRANSCEND Media Service

Source: TRANSCEND Media Service

By Johan Galtung
ALICANTE, Spain, Jun 26 2016 (IPS)

The vote turned out like the two referenda held in Norway in 1972 and 1994. And much for the same reason: Protestant break with Rome–Catholic, imperial–Henry VIII made himself head of the Anglican Church in 1534.

Religion was not the only reason, there are Protestant Nordic members of EU, closer to the continent and closer to Russia. World history, a short while after Pope Francis-Patriarch Kirill also made world history, bridging the Catholic-Orthodox 395-1054 gap.

The Disunited Queendom is now London with surroundings; England. The implications are enormous, for UK-GB and the British Isles in general, for EU and Europe in general, USA and the world in general. The US Trojan horse decided to leave the EU on 23 June 2016.

UK-GB and the British Isles in general.

Johan Galtung

Johan Galtung

Goodbye United Kingdom, UK, we may get United Ireland, UI, instead.

Goodbye Great Britain, GB, we may get Scotland in EU instead.

Welcome to Britain of England-Wales, if they care for that vocabulary.

Welcome to new-born England, 23 June being the Day of Independence.

Independence? Washington, having lost its inside EU ally, will soon remind London of their “special relationship” as unsinkable aircraft carrier also doing the killing job–maybe some wanted that.

And yet. England had the whole Global Establishment, if there ever was one, mobilized to pressure them to remain. They did not. There is something very impressive in that, however bad the campaign.

And yet. There is something to those British Isles, a shared and twisted history between Anglo-Saxons and Celts–Vikings, Normans–an enormous impact on the world now torn to pieces, torn into new pieces.

Maybe time has come for something this author proposed in an NGO encounter at the Houses of Parliament on Northern Ireland-Ulster right before the Good Friday Agreement: CBI, a Confederation of the British Isles, with United Ireland, Scotland, England-Wales and smaller islands.

EU and Europe in general.

On the possible positive side is EU independence of the USA, not choosing US foreign-military (and university system!) policy instead of working out its own. EU can now follow France-Germany in a Ukraine they know much better than the USA.

They nay one day meet Russia in some “European House”–may Gorbachev see that before he passes away–and they may one day, hopefully soon, have a European Parliament recognizing Palestine as a state, making it clear this is not anti-Semitic, anti-Israel, but pro the other Semitic, pro-Palestine.

On the possible negative side is Germany winning the two “world wars” in Europe over who shall run Europe: Germany or England-France.

Germany had visions of something close to an EU with economic center in Brussels and political in Berlin. After 1945 it was France, not England that stretched out a hand to beaten Germany, the 1950 coal and steel handshake that morphed into the Treaty of Rome (what a bad choice of name).

France will have to do that again, but this time not from the strong position of being on the winning side of a war, but the weak position of being in layer 3 of the present 5 in EU with Germany on top and Greece at the bottom, the Nordics no 3, then the Latins, then Eastern Europe.

This pyramid has to be flattened; many of the exit movements derive their momentum from that sad EU reality.

But also from a boring EU in spite of having to its credit, “acquis” open borders, the euro, a Europe with war held unthinkable.

Could some of that come from not being masters in their own house, always listening to His Master’s Voice?

Could healthy regionalism inspire a new deal, like healthy nationalism could for England? Freed from fighting US wars, liberated to build peace all over, like in EU?

Making an ever stronger or weaker union? Maybe stronger in peace policy. And maybe with the euro as common, not single currency, and not pressing members into a solidarity with no historical basis?

USA and the world in general.

This might be one more wake-up call for the USA, at a time with everybody but Hillary already awake.

Talk about NATO as out of date, Europe and the Middle East taking care of their own affairs, wars as non-affordable, as counter-productive, some awareness that there are other victims than Americans in the wars, had been unthinkable, unspeakable. But old addictive habits are hard to change.

That opens for a possible widening slit between USA-England and EU-Europe. There is a model: the split between the West Roman (Catholic) and East Roman (Orthodox) empires in 395, the former lasting about 81 more years, the latter more than a thousand.

This time the religious split would be between evangelical-protestant in the West and catholic-orthodox in the East, with a smart federation at the border, Ukraine, as a possible solution. A major test.

Another: defensive defense against IS brutality, negotiations with them, recognizing their right to have an IS when Europe has EU, and a Caliphate when Christianity has Vatican and the Patriarchy(ies).

Learning from Islam about togetherness and sharing, how to overcome loneliness and alienation, admitting that the West needs to learn.

And China? Learning from them like they do from the West, inviting them to join the world from “between heaven and earth”.

The world in general? Moving away from states, toward regions. Be a good, caring Mother of regions, sharing solutions and problems generously with other regions around the world.

With Latin America-Caribbean, Anglo-America–maybe with Mexico as MEXUSCAN–the African Union, the European House, SAARC, ASEAN. And the three badly missing ones in Asia: West Asia with Israel and Palestine, Iraq and Syria; Central Asia with Afghanistan, and Northeast Asia with the two Chinas, the two Koreas, Far East Russia and Japan now at nuclear logger-heads.

EU: a wake-up call! Don’t despair, grow, and help the world.

 
This article originally appeared on Transcend Media Service (TMS) on 24 June 2016: TMS: Brex’it, So Be’it; And Then What?

The statments and views expressed in this article are those of the author and do not necessariliy represente those of IPS.

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Making Sustainability Part of the Corporate DNAhttp://www.ipsnews.net/2016/06/making-sustainability-part-of-the-corporate-dna/?utm_source=rss&utm_medium=rss&utm_campaign=making-sustainability-part-of-the-corporate-dna http://www.ipsnews.net/2016/06/making-sustainability-part-of-the-corporate-dna/#comments Sat, 25 Jun 2016 17:26:44 +0000 Phillip Kaeding http://www.ipsnews.net/?p=145814 http://www.ipsnews.net/2016/06/making-sustainability-part-of-the-corporate-dna/feed/ 0 Brexit and EUexithttp://www.ipsnews.net/2016/06/brexit-and-ueexit/?utm_source=rss&utm_medium=rss&utm_campaign=brexit-and-ueexit http://www.ipsnews.net/2016/06/brexit-and-ueexit/#comments Sat, 25 Jun 2016 17:12:42 +0000 Roberto Savio http://www.ipsnews.net/?p=145815 Roberto Savio, is founder and president emeritus of the Inter Press Service (IPS) news agency and publisher of Other News. ]]>

Roberto Savio, is founder and president emeritus of the Inter Press Service (IPS) news agency and publisher of Other News.

By Roberto Savio
ROME, Jun 25 2016 (IPS)

The Europeans went to bed Thursday night, with exit polls giving a comfortable margin of victory for those who wanted to Remain. The following morning they awakened to find that the real result was the opposite.

Specialists in polling say that this happens when electors do not feel comfortable to say how they will rally voters because they are not comfortable, on a rational level, with what they will do. In other words, voters act because of their guts, not because of their brain.

Roberto Savio

Roberto Savio

Brexit was really based on gut feelings. It was a campaign of fear. The “Leave” campaign was about the Turks massively invading Great Britain, because of their admittance in the EU (totally false); that Great Britain was paying to the EU 50 million pounds a day (again, a false figure). But the central question raised, especially by Boris Johnson, was: we are not free any longer… Let us get our independence.

And he went to compare the EU to the Nazi Germany who wanted to take over Europe. Of course, his intention was simple: get prime minister David Cameron to resign and take his post. A good example of idealism.

This cry for independence stirred the nationalist nerve of the nostalgia of the imperial times… We are facing enormous tides of foreigners coming if we stay in the EU, and we have no control on our borders, etc. The fact that Great Britain in fact had got from the EU already the control of its frontiers, was totally lost.

But beside this specific trait of British identity, the reasons for Brexit were common to the xenophobic, nationalism and populism tide which is spreading all over Europe. The Brexit campaign did contain all three, plus an emerging fourth factor: the revolt of people against their elites.

The “Remain” campaign had all of them; from the leaders of the Tory and Labour party to all the industrial and financial sectors, from the International Monetary Fund (IMF) to the European Central Bank, from Obama to Merkel, from the elite media (Financial Times, the Economist) to the Soccer League. Their campaign was also of fear: if we get out we will lose markets, our deficit will increase, and our welfare system is at risk.

What now finally analysts are beginning to grasp is that rational arguments are not important any longer. Fear is more important. And anything that smacks of elite and establishment creates an iconoclastic reaction, which is to throw away the icons of the elite. This call for a change is now a new factor of politics all over Europe.

A good example is the town of Turin, where a few days before the Brexit a honest, efficient and respected outgoing mayor Piero Fassino (who did a good job), lost to a young woman without any prior experience. People feel an urge to throw away all the old, because clearly it has failed to address their needs.

It is to soon to predict a dismembering of Great Britain, with Scotland calling this time for its independence. Brexit was decided by England, where a considerable number of citizens suddenly feel a reawakening of their identity.

It is the same call of Marie Le Pen in France (another lost empire), which has opened a debate about French identity, and the need to not get diluted by multiculturalism, immigrants, especially Muslim, and get again the control of the borders, out from the domination of the European Union.

Next year, we have French and German elections. Le Pen is now the leader of the largest party in France, And it will be difficult to keep her out of power. Then elections in Germany will see a rise of Alternative fur Deutschland (AFD), which makes re-appropriation of German identity and sovereignty the basis for leaving Europe.

All the xenophobic right wing parties have expressed their enthusiasm for the Brexit, which is going to give them more push. Brexit comes after the Austrian elections, where the right wing lost for few votes. If elections were held today in the Netherlands, its xenophobic party would be the largest. And in total symmetry, Donald Trump has expressed his enthusiasm for the Brexit.

One of the few positive elements of Brexit is that there is now a growing chorus on the fact that globalisation has not kept its promises.: wealth for everybody.

On the contrary, it has created a dramatic social inequality, with few people having the bulk of national wealth, and many left out. According to OECD statistics, Europe has lost 18 millions of middle class citizens, in the last 10 years.

The fact that bankers were unanimously voicing for “Remain”, had quite the opposite effect on those 27% of British citizens who have difficulty to reach the end of the month, while they see over 1.000 bankers, and 1.500 CEO make more than 1 million pounds a year.

Now even the IMF is publishing studies on how social inequality is a draw to growth, and the importance of investing in welfare policies of inclusion and equal opportunities.

This is happening, some could say, because reaction to globalisation does not create only right-wing waves. With the feeling that all those in the system are ignoring their problems, new mass movements are coming from the left, like Podemos in Spain or Bernie Sanders in the US.

In the coming elections in Spain, the traditional social democrat party, PSOE, risks to be after Podemos. In Italy few days ago, after winning the provincial elections, the 5 Star movement now looks to take over the national government, held by a social democrat party, the PD. After two years in power, the young Matteo Renzi looks already an old establishment figure.

The EU suffers the same problem. Everybody talks of its marginal role in the world, of the fact that the unelected bureaucrats in Brussels live detached from reality and dedicate themselves to discuss rules on how to pack tomatoes, indifferent to the problems of the common European citizen.

We should pause to reflect that this is the same kind of criticism we hear about the United Nations. International organisations can only do what their members allow them to do. The EU is a supranational organisation (the only in existence), yet all the political power is in the hands of the Council of Ministers, where governments sits and take decision.

The Commission is left to implement these and the bureaucrats (the same number of those who run the town of Rome), have autonomy to decide the size of tomato packaging. Then the same national government that has taken the decisions, finds it convenient to denounce the EU inefficiency, and complain that there is an European external policy. This irresponsible game is now seeing the concrete result in Brexit, and governments should think now carefully about continuing on this double standard path.

Anyhow, the king now is finally without clothes. Europe is disintegrating, and a very large responsibility falls on German shoulders.

Germany has been blocking any attempt to create European economic and welfare measures, because they do not want to pay for the mistakes of the debtors countries, Greece, Italy, and the south of Europe. The Economy minister of Germany, Wolfgang Schauble, even went to attribute to Mario Draghi, the BCE governor, 50% of the success of the xenophobe Alternative fur Deutschland in the last elections. Draghi , was doing a policy in the interest of Europe, and not of the German voters. Germany is by far the most powerful country in the EU.

It is ironic to know that all the important posts in the EU bureaucracy have been taken by the British and Germans. In fact, those who control the bureaucracy and the debate on tomato packaging come from those two countries. And chancellor Angela Merkel is considered the one who runs the EU. In fact, the fateful agreement with Turkey on refugees, was decided by the German chancellor, without even consulting France

Now Germany has to decide: or continue on its path to germanize Europe, or to become again a European Germany, as it was when it’s capital was Bonn. Germany has consistently ignored all European and international calls for playing a different policy in the EU. She has refused to increase spending, to share funding of any initiative on European bonds or any measure of socialisation of the crisis.

But it would be a mistake to think that this is due to the peculiar personality traits of Schauble. The large majority of German citizens share the belief that they should not pay for the mistake of others. To be fair, the German government has never tried to educate them on European needs. And now, may be it is too late….

Therefore, the coming elections will be difficult for the government. An ever more insular party, the AfD is expected to have a large increase, and the two traditional parties are very worried. Merkel will try to take away some of the AfD banners further reducing her European policy. What is she Going to do now after the Brexit?

Attempt to start a Europe on two speeds, with Baltic countries, Poland, Hungary and all other Eurosceptics left out? Or she is ready to change her self-centred policy and play a real European role, in spite of AfD rise? Europe now depends clearly on Germany. Here we will see if Merkel is a states-person or just a successful national politician.

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Can Better Technology Lure Asia’s Youth Back to Farming?http://www.ipsnews.net/2016/06/can-better-technology-lure-asias-youth-back-to-farming/?utm_source=rss&utm_medium=rss&utm_campaign=can-better-technology-lure-asias-youth-back-to-farming http://www.ipsnews.net/2016/06/can-better-technology-lure-asias-youth-back-to-farming/#comments Sat, 25 Jun 2016 13:38:29 +0000 Diana G Mendoza http://www.ipsnews.net/?p=145811 ADB president Takehiko Nakao speak at the Food Security Forum in Manila. Credit: Diana G. Mendoza/IPS

ADB president Takehiko Nakao speaks at the Food Security Forum in Manila. Credit: Diana G. Mendoza/IPS

By Diana G Mendoza
MANILA, Jun 25 2016 (IPS)

Farming and agriculture may not seem cool to young people, but if they can learn the thrill of nurturing plants to produce food, and are provided with their favorite apps and communications software on agriculture, food insecurity will not be an issue, food and agriculture experts said during the Asian Development Bank (ADB)’s Food Security Forum from June 22 to 24 at the ADB headquarters here.

The prospect of attracting youth and tapping technology were raised by Hoonae Kim, director for Asia and the Pacific Region of the International Fund for Agricultural Development (IFAD) and Nichola Dyer, program manager of the Global Agriculture and Food Security Program (GAFSP), two of many forum panelists who shared ideas on how to feed 3.74 billion people in the region while taking care of the environment.

“There are 700 million young people in Asia Pacific. If we empower them, give them voice and provide them access to credit, they can be interested in all areas related to agriculture,” Kim said. “Many young people today are educated and if they continue to be so, they will appreciate the future of food as that of safe, affordable and nutritious produce that, during growth and production, reduces if not eliminate harm to the environment.”

Dyer, citing the U.N. Food and Agriculture Organization (FAO) estimate that 1.3 billion tons of food is wasted every year worldwide, said, “We have to look at scaling up the involvement of the private sector and civil societies to ensure that the policy gaps are given the best technologies that can be applied.”

Dyer also said using technology includes the attendant issues of gathering and using data related to agriculture policies of individual countries, especially those that have recognized the need to lessen harm to the environment while looking for ways to ensure that there is enough food for everyone.

“There is a strong need to support countries that promote climate-smart agriculture, both financially and technically as a way to introduce new technologies,” she said.

The Leaders Roundtable on the Future of Food was moderated by the DG IPS Farhana Haque Rahman. The President of ADB, Takehiko Nakao was a panellist along with Ministers of Food and Agriculture of Indonesia and Lao PDR, FAO regional ADG and CEO of Olam International. - Credit: ADB

The Leaders Roundtable on the Future of Food was moderated by the DG IPS Farhana Haque Rahman. The President of ADB, Takehiko Nakao was a panellist along with Ministers of Food and Agriculture of Indonesia and Lao PDR, FAO regional ADG and CEO of Olam International. – Credit: ADB

The UN Economic and Social Commission for Asia and the Pacific estimated in 2014 that the region has 750 million young people aged 15 to 24, comprising 60 percent of the world’s youth. Large proportions live in socially and economically developed areas, with 78 percent of them achieving secondary education and 40 percent reaching tertiary education.

A regional paper prepared by the Asian Farmers Association for Sustainable Rural Development (AFA) in 2015, titled “A Viable Future: Attracting the Youth Back to Agriculture,” noted that many young people in Asia choose to migrate to seek better lives and are reluctant to go into farming, as they prefer the cities where life is more convenient.

“In the Philippines, most rural families want their children to pursue more gainful jobs in the cities or overseas, as farming is largely associated with poverty,” the paper stated.

Along with the recognition of the role of young people in agriculture, the forum also resonated with calls to look at the plight of farmers, who are mostly older in age, dwindling in numbers and with little hope of finding their replacement from among the younger generations, even from among their children. Farmers, especially those who do not own land but work only for landowners or are small-scale tillers, also remain one of the most marginalised sectors in every society.

Estrella Penunia, secretary-general of the AFA, said that while it is essential to rethink how to better produce, distribute and consume food, she said it is also crucial to “consider small-scale farmers as real partners for sustainable technologies. They must be granted incentives and be given improved rental conditions.” Globally, she said “farmers have been neglected, and in the Asia Pacific region, they are the poorest.”

The AFA paper noted that lack of youth policies in most countries as detrimental to the engagement of young people. They also have limited role in decision-making processes due to a lack of structured and institutionalized opportunities.

But the paper noted a silver lining through social media. Through “access to information and other new networking tools, young people across the region can have better opportunities to become more politically active and find space for the realization of their aspirations.”

Calls for nonstop innovation in communications software development in the field of agriculture, continuing instruction on agriculture and agriculture research to educate young people, improving research and technology development, adopting measures such as ecological agriculture and innovative irrigation and fertilisation techniques were echoed by panelists from agriculture-related organizations and academicians.

Professor David Morrison of Murdoch University in Perth, Australia said now is the time to focus on what data and technology can bring to agriculture. “Technology is used to develop data and data is a great way of changing behaviors. Data needs to be analyzed,” he said, adding that political leaders also have to understand data to help them implement evidence-based policies that will benefit farmers and consumers.

President of ADB Takehiko Nakao - Credit: ADB

President of ADB Takehiko Nakao – Credit: ADB

ADB president Takehiko Nakao said the ADB is heartened to see that “the world is again paying attention to food.” While the institution sees continuing efforts in improving food-related technologies in other fields such as forestry and fisheries, he said it is agriculture that needs urgent improvements, citing such technologies as remote sensing, diversifying fertilisers and using insecticides that are of organic or natural-made substances.

Nakao said the ADB has provided loans and assistance since two years after its establishment in 1966 to the agriculture sector, where 30 percent of loans and grants were given out. The ADB will mark its 50th year of development partnership in the region in December 2016. Headquartered in Manila, it is owned by 67 members—48 from the region. In 2015, ADB assistance totaled 27.2 billion dollars, including cofinancing of 10.7 billion dollars.

In its newest partnership is with the International Rice Research Institute (IRRI), which is based in Los Banos, Laguna, Philippines, Nakao and IRRI director general Matthew Morell signed an agreement during the food security forum to promote food security in Asia Pacific by increasing collaboration on disseminating research and other knowledge on the role of advanced agricultural technologies in providing affordable food for all.

The partnership agreement will entail the two institutions to undertake annual consultations to review and ensure alignment of ongoing collaborative activities, and to develop a joint work program that will expand the use of climate-smart agriculture and water-saving technologies to increase productivity and boost the resilience of rice cultivation systems, and to minimize the carbon footprint of rice production.

Nakao said the ADB collaboration with IRRI is another step toward ensuring good food and nutrition for all citizens of the region. “We look forward to further strengthening our cooperation in this area to promote inclusive and sustainable growth, as well as to combat climate change.” Morell of the IRRI said the institution “looks forward to deepening our already strong partnership as we jointly develop and disseminate useful agricultural technologies throughout Asia.”

DG IPS Farhana Haque Rahman - Credit: ADB

DG IPS Farhana Haque Rahman – Credit: ADB

The ADB’s earlier agreements on agriculture was with Cambodia in 2013 with a 70-million-dollar climate-smart agriculture initiative called the Climate-Resilient Rice Commercialization Sector Development Program that will include generating seeds that are better adapted to Cambodia’s climate.

ADB has committed two billion dollars annually to meet the rising demand for nutritious, safe, and affordable food in Asia and the Pacific, with future support to agriculture and natural resources to emphasize investing in innovative and high-level technologies.

By 2025, the institution said Asia Pacific will have a population of 4.4 billion, and with the rest of Asia experiencing unabated rising populations and migration from countryside to urban areas, the trends will also be shifting towards better food and nutritional options while confronting a changing environment of rising temperatures and increasing disasters that are harmful to agricultural yields.

ADB president Nakao said Asia will face climate change and calamity risks in trying to reach the new Sustainable Development Goals. The institution has reported that post-harvest losses have accounted for 30 percent of total harvests in Asia Pacific; 42 percent of fruits and vegetables and up to 30 percent of grains produced across the region are lost between the farm and the market caused by inadequate infrastructure such as roads, water, power, market facilities and transport systems.

Gathering about 250 participants from governments and intergovernmental bodies in the region that include multilateral and bilateral development institutions, private firms engaged in the agriculture and food business, research and development centers, think tanks, centers of excellence and civil society and advocacy organizations, the ADB held the food security summit with inclusiveness in mind and future directions from food production to consumption.

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Least Developed Countries’ Vulnerabilities Make Graduation Difficulthttp://www.ipsnews.net/2016/06/least-developed-countries-vulnerabilities-make-graduation-difficult/?utm_source=rss&utm_medium=rss&utm_campaign=least-developed-countries-vulnerabilities-make-graduation-difficult http://www.ipsnews.net/2016/06/least-developed-countries-vulnerabilities-make-graduation-difficult/#comments Sat, 25 Jun 2016 02:25:40 +0000 Ahmed Sareer http://www.ipsnews.net/?p=145797 An aerial view of the Village of Kolhuvaariyaafushi, Mulaaku Atoll, the Maldives, after the Indian Ocean Tsunami. UN Photo/Evan Schneider

An aerial view of the Village of Kolhuvaariyaafushi, Mulaaku Atoll, the Maldives, after the Indian Ocean Tsunami. UN Photo/Evan Schneider

By Ahmed Sareer
UNITED NATIONS, Jun 25 2016 (IPS)

Last month, over two thousand high-level participants from across the world met in Antalya, Turkey for the Midterm Review of the Istanbul Programme of Action, an action plan used to guide sustainable economic development efforts for Least Developed Countries for the 2011 to 2020 period. The main goal was to understand the lessons learnt by the world’s Least Developed Countries (LDCs) over the past five years and apply the knowledge moving forward.

For my country, the Maldives, the past five years have been a chance to experience first-hand the realities of life after graduation from LDC status. In January 2011, the Maldives was officially removed from the list of LDCs, the culmination of decades of hard work and determined efforts of developing the country. The Fourth UN Conference on LDCs, held in May 2011, was the last for the Maldives as an LDC, but last month in Antalya, we went back because we believed it was important to share the lessons we had learnt since 2011.

While our graduation was naturally a moment of pride and cause for celebration for a country only 50 years old, it was accompanied by a sense of uncertainty about the challenges we would face following the withdrawal of the protections and special preferences afforded to LDCs.

Ultimately, we were able to forge ahead in spite of these difficulties and adapted to the new realities. We ensured that our economy, driven by a world-class tourism sector, and a robust fisheries industry, would continue to be competitive and dynamic. We focused on fostering a business-friendly climate, while making prudent investments for future growth.

However, we remain conscious of the degree to which the gains we have made are vulnerable to exogenous shocks. On 20 December 2004, the United Nations General Assembly (UNGA) decided to graduate the Maldives effective 1 January 2008. But just four days before the UNGA decision, a catastrophic tsunami swept across the Indian Ocean, claiming the lives of over 275,000 people in fourteen countries.

The 2004 tsunami was especially devastating in the Maldives. With the highest point in our country being just 2.5 metres high, virtually all of it was, for a few harrowing minutes, underwater.

Several islands were rendered uninhabitable; nearly one in ten people were left homeless.

Farms were destroyed, the fresh water lens corrupted, with large-scale loss to infrastructure. The economic cost of the destruction was equivalent to close to 70 percent of GDP, a blow from which it took us over a decade to recover.

The Maldives is not alone in facing such vulnerabilities. For many countries, particularly Small Island Developing States (SIDS) such as our own, an end to LDC status does not necessarily herald the disappearance of structural barriers to growth—such as limited access to markets, geographical isolation, environmental pressures, or difficulty achieving economies of scale.

By 1997, the Maldives had already exceeded two of the three thresholds that determine LDC status—GNI per capita, and the Human Capital Index, measured in terms of undernourishment, child mortality rates, secondary school enrolment rates, and adult literacy.

But we did not exceed the threshold for the third criterion, the Economic Vulnerability Index (EVI), which measures the structural vulnerability of countries to exogenous economic and environmental shocks – we did not meet this threshold to date. It is not necessary to meet all three thresholds to in order to graduate—meaning we were considered ready for graduation.

As the tragedy of 2004 taught us, persistent vulnerabilities have the potential to undermine, if not reverse, gains made towards development. Despite meeting the formal requirements, we were not yet ready. The lessons of our own experiences have meant that the Maldives has been consistent in calling for a smoother and more holistic approach to the graduation process.

Firstly, the criteria for graduation must account for the structural vulnerabilities of developing countries. The fact that economic vulnerability can be disregarded in determining whether a country is ready to graduate from LDC status represents a critical oversight.

Second, the Economic Vulnerability Index itself must also be redesigned to better account for vulnerability. At present, the index fails to account for key considerations such as geographic and environmental vulnerability, import dependency, and demographic pressures.

With greater attention being paid to the effects of climate change on developing countries, most notably in the Sustainable Development Goals (SDGs), evaluating vulnerabilities more comprehensively is a task that has acquired even greater importance.

Lastly, the extension of support and assistance to countries must be determined on the basis of their individual capabilities and challenges, rather than their mere place on a list. We would be remiss to overlook the role that development assistance, including that provided by the UN, has played in helping the Maldives progress—as it has for many others—particularly in regards to our work in disaster preparedness and climate change mitigation.

The withdrawal of such assistance—including preferential trade access and concessionary financing—following our graduation from the ranks of the LDCs has meant increased fiscal challenges. This disregards the unique challenges faced by countries like the Maldives due to their specific structural constraints—constraints ignored under the present graduation regime.

While efforts have been made to smooth the graduation process for LDCs—in 2004, and most recently in 2012—the process remains deeply flawed and in need of comprehensive reform. To this end, the Maldives has called for the World Trade Organization (WTO) to extend the application of TRIPS (trade-related aspects of intellectual property rights) for all LDCs, in addition to the exploration of a “small and vulnerable economy” category at the United Nations, which would recognize the particular needs of such countries.

Similarly, we must move towards devising measures of development that do more than just record national income, and instead provide a more meaningful assessment of national capability and capacity, for which GDP can often be a poor proxy.

No country wishes to be called “least developed”, much less remain in that classification indefinitely, but the factors driving underdevelopment must be meaningfully dealt with if we wish to attain genuinely sustainable development. It is for this reason that we believe that the desire by countries to eradicate poverty and achieve economic development must be met with commitment on part of the United Nations and other organizations to chart a realistic and holistic path towards that end.

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To Be Fixed, Europe Needs a Wrecking Ballhttp://www.ipsnews.net/2016/06/to-be-fixed-europe-needs-a-wrecking-ball-3/?utm_source=rss&utm_medium=rss&utm_campaign=to-be-fixed-europe-needs-a-wrecking-ball-3 http://www.ipsnews.net/2016/06/to-be-fixed-europe-needs-a-wrecking-ball-3/#comments Fri, 24 Jun 2016 22:38:25 +0000 David Ignatius2 http://www.ipsnews.net/?p=145810 By David Ignatius
Jun 24 2016 (Manila Times)

One-time shot exclusive for The Manila Times
WASHINGTON: Imagine a young Margaret Thatcher, a politician who deeply mistrusts the political establishment and identifies on a gut level with the frustrations of the middle class. That’s shorthand for what Britain will need as it picks up the pieces after Thursday’s “Brexit” referendum.

DAVID IGNATIUS

DAVID IGNATIUS

Friends of Britain (and Europe, too) need to stop pretending that support for withdrawal from the European Union is simply a product of xenophobic right-wing nationalism. Nearly half the country supports a British exit, according to pre-referendum polls, and these people are not all deluded reactionaries.

The European Union is unpopular in Britain for the same reason it is in many other parts of Europe: It’s seen as the project of a financial and political elite that often operates without regard for public sentiment. Nationalism may be a tarnished, retrograde sentiment, but the fact remains that many people feel deeply attached to their countries.

This patriotic feeling can’t be expunged. But it should be modernized. And that’s where a modern Maggie could do wonders. Think of a restless, mildly rebellious British politician who could find common cause with like-minded Europeans who are tired of being lectured by Brussels.

Thatcher took a wrecking ball to an earlier generation of entrenched, elite opinion in Britain. When she became prime minister in 1979, Britain was still encased in a class system that maintained the conservative status quo at both ends—the power of the aristocratic Tory elite and the Labor Party trade-union bosses, who in tandem resisted any reforms that might challenge their power.

Thatcher, a grocer’s daughter, despised this status quo. She defied a bitter 1983-84 strike by the National Union of Mineworkers where previous prime ministers, Labor and Tory, had caved. She deregulated the financial sector, in what was called the “Big Bang,” restoring the City of London to global primacy.

Britain in recent years has seemed to be slipping backward. David Cameron, the conservative leader, is an Old Etonian who, in form and function, is a latter-day embodiment of the Tory elite. Labor leader Jeremy Corbyn, similarly, is a throwback to the left-wing, union-cosseted yesterday of his party.

The most hopeful aspect of the Brexit debate is that most young British people seem to be instinctively European. They have grown up in a global economy where people move from job to job and country to country. A June 13 poll by ICM for the Guardian found that 56 percent of voters aged 18 to 34 want to remain in the EU, while just 39 percent favor leaving. By contrast, 55 percent of those over 65 favor withdrawal.

Other surveys make the same point: The older people get in Britain, the more they mistrust the EU. That’s the biggest danger of the pro-Brexit campaign, beyond the economic damage it has risked. It would tie the country’s future to the oldest, most conservative cohort of its population.

The EU leadership in Brussels deserves its bad reputation. Lacking the instruments of real governance, the Eurocrats have nibbled around the edges with rules and regulations that imply a common destiny but leave to others the hard questions, such as border security and fiscal discipline.

Germany sits uneasily atop this shaky enterprise. The Germans are lucky to have a chancellor who, no matter how wealthy and privileged her country may be, still acts like the Lutheran pastor’s daughter who was raised in East Germany. Asked once what was distinctive about Germany, she gave this sturdy, if unlikely, answer: “No other country can build such airtight and beautiful windows.” Her power comes in part from her ability to appear ordinary.

Europe is only beginning its process of change. A senior German official told me a few months ago that the strange thing about the Brexit vote was that “the best case and the worst case are so close together.” What he meant was that Germany understands that Europe’s institutions must change, regardless of whether Britain is in or out.

EU purists may still dream of a tighter federalism, but that would involve a surrender of national power that nobody, least of all the Germans or French, really wants. What’s more likely is a core EU that runs at German speed, and allows the periphery some of the leeway that Cameron won for Britain in the negotiation that preceded the wretched Brexit campaign.

Rather than crying crocodile tears for the old version of the EU, modernizing politicians in Britain and on the continent should be thinking about change. It’s time for “Maggie redux.” Bring on the wrecking ball.

©2016 THE WASHINGTON POST WRITERS GROUP

This story was originally published by The Manila Times, Philippines

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Brits Shouldn’t ‘Brexit’http://www.ipsnews.net/2016/06/brits-shouldnt-brexit/?utm_source=rss&utm_medium=rss&utm_campaign=brits-shouldnt-brexit http://www.ipsnews.net/2016/06/brits-shouldnt-brexit/#comments Thu, 23 Jun 2016 16:53:25 +0000 Editor Manila Times http://www.ipsnews.net/?p=145778 By Editor, The Manila Times, Philippines
Jun 23 2016 (Manila Times)

Today the British will vote in their “Brexit” referendum whether to stay in or exit from the European Union.

The United Kingdom applied for the first time to join what was then called the European Economic Community, in 1961. The Brit movers for membership were afraid their country would get politically isolated from Western Europe. At that time the USA’s and its allies’ Cold War with the Soviet Union was still ablaze.

UK’s bid for EEC membership had strong US support but the French Government (with Gen. De Gaulle as President) vetoed it in 1963 and also the second British application in 1967. Only on Jan. 1, 1973 did the UK (along with Denmark and Ireland) get to join the EEC.

At first opposed to EEC membership, the UK Labour Party wanted to renegotiate the membership but settled for a referendum to determine if the people of Britain really wanted to remain in the EEC. In the referendum held in 1975, 67 percent of the Brits voted to remain.

These days, polls show only a slight majority of the British public to be in favor of remaining.

This is because the Brits are doing very well compared to the countries of the EU, whose only solidly rich country is Germany. Europe seems to be in one kind of economic crisis after another.

The problem of refugees flooding into Europe from the Middle East and North Africa has become too much for the EU countries to bear. It has caused anti-immigrant militancy among the poor in nearly every European country. Terrorist ISIS bombings in Paris and Brussels and false-alarm news of new attacks are agitating Europeans, who have lost their former sense of security.

These tensions in the continent have made the anti-Europe side in Britain restive. For decades now they have been calling for their country’s exit from the EU.

Today’s Brexit referendum, if won by the Yes side, would still have to be ratified by the British parliament. The majority and ruling Conservatives would not dare go against the winning public vote.

But for all the mess that Europe is in, it is still in the British people’s best interest to stay in the EU and keep it whole. For if the UK exits it, some other countries, also fed up with having to bear the continent’s troubles and having to share their wealth with the poorer European countries that are always in need of aid, would promptly follow the British lead. Europe would then break up.

The UK would also lose a lot of the economic advantages it has in the continent as an EU member. For one, a lot of the British products that are sold in Europe tariff-free would cost more to EU customers. And it is, despite any cultural protests from Frenchmen, looked up to as the country that is EU’s political leader, and shares EU’s economic leadership with Germany.

It is not true, as Brexit proponents argue, that Britain would become stronger by leaving the EU. It would instead become weaker. And it would begin to face problems in dealing with countries in Europe—as an outsider.

This story was originally published by The Manila Times, Philippines

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Rethinking Fiscal Policy for Global Recoveryhttp://www.ipsnews.net/2016/06/rethinking-fiscal-policy-for-global-recovery/?utm_source=rss&utm_medium=rss&utm_campaign=rethinking-fiscal-policy-for-global-recovery http://www.ipsnews.net/2016/06/rethinking-fiscal-policy-for-global-recovery/#comments Thu, 23 Jun 2016 14:42:37 +0000 Anis Chowdhury and Jomo Kwame Sundaram http://www.ipsnews.net/?p=145763 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, Jun 23 2016 (IPS)

Global economic recovery is being held hostage by the ideological dogma of the last three and a half decades. After long contributing to neo-liberal conventional wisdom, in its October 2015 World Economic Outlook, the IMF identified the vicious circle undermining global recovery and growth. Low aggregate demand is discouraging investment; slower expected potential growth itself dampens aggregate demand, further limiting investment.

Investment in Europe, especially in crisis-ridden economies, has collapsed sharply despite very low interest-rates. The IMF also noted that prolonged recessions may have a permanent negative effect, not only on trend productivity levels but also on trend productivity growth as well as wage growth that, in turn, sustains low aggregate demand.

The rise of fiscal policy

From the mid-1930s until about the mid-1960s, fiscal policy has played a major role, both in developed and developing countries. The fiscal deficit was the main policy instrument to address the Great Depression of the 1930s and later, to maintain full-employment in developed countries. Deficits and surpluses were adjusted counter-cyclically over business cycles. In his 1936 budget speech, President Roosevelt noted, “the deficit of today … is making possible the surplus of tomorrow.”

Governments in developing countries have played a major role in building infrastructure and providing basic public services such as health-care and education. They often did not have the resources, domestic or foreign, as war-torn Europe had with the Marshall Plan, to rebuild their economies.

Thus, the main way to develop their newly decolonized countries was by running deficits, financed by printing money. This was also the case when the US emerged as a newly independent nation. Alexander Hamilton, the first US Treasury Secretary under President Washington, incurred debt to establish “sound credit”, laying the foundation for a robust future market in US debt.

There was a brief revival of fiscal activism when the 2008-2009 financial crisis hit the global economy. Developed countries responded with large fiscal stimulus packages, in addition to bailing out troubled financial institutions. Major developing countries also put in place carefully designed fiscal stimulus packages that included public infrastructure investment and enhanced social protection measures.

But instead of recognizing that deficits and surpluses should be adjusted counter-cyclically over business cycles rather than being held hostage by financial markets, this moment was soon lost to claims of ‘green shoots of recovery’ once the most influential financial interests had been saved.

The fall of fiscal policy

With the counter-revolution against Keynesian and development economics in the late 1970s and early 1980s, budget deficits became taboo. The fall from grace of fiscal policy followed the ascendancy of market-fundamentalist conservative politics with the election of Margaret Thatcher in the UK and Ronald Reagan in the US.

The conservative distrust of governments favoured rule-based policies to curb discretionary government spending, including the US Gramm-Rudman-Hollings deficit-control legislation and the EU’s Stability and Growth Pact that set a 60 percent debt-GDP ratio ceiling. In fact, debt is sustainable if government expenditure enhances both growth and productivity. The claim that government deficits will need to be ‘financed’ with higher tax rates in future is spurious as revenues are bound to rise in an expanding economy.

Understanding this requires abandoning the narrow concept of “sound” finance in favour of “functional” finance, which evaluates government finance based on its impact. Thus, for Abba Lerner, “The central idea is that government fiscal policy, its spending and taxing, its borrowing and repayment of loans, its issue of new money and its withdrawal of money, shall all be undertaken with an eye only to the results of these actions on the economy and not to any established traditional doctrine about what is sound or unsound.”

Crowding-out or -in

A lingering concern is financing the deficit. The first recourse for governments is to borrow domestically, raising the spectre of “crowding-out”, i.e. government borrowings driving up interest rates, adversely affecting private investment. This view ignores the consequences (e.g. low profitability, bankruptcies, etc.) of a depressed economy. After all, government action is necessitated, in the first place, by inadequate private spending.

Moreover, the immediate financial implication of expansionary policy action is to augment the cash reserves of private sector banks where government cheques are deposited. This, in turn, increases (net) liquidity if the central bank does not implement offsetting money market operations. Hence, the actual central bank discount rate should decrease, exerting downward pressure on retail interest rates. This should, therefore, encourage, rather than crowd-out private investment.

In its October 2014 World Economic Outlook, the IMF favoured an infrastructure push in the face of low borrowing costs and weak aggregate demand. It also observed that “debt-financed projects could have large output effects without increasing the debt-to-GDP ratio if clearly identified infrastructure needs are met through efficient investment”. Maintaining this favourable view of debt-financed public investment, the IMF’s October 2015 World Economic Outlook asserted that debt-financed public investment in infrastructure, education, health and social protection would boost aggregate demand and productivity.

As outgoing Reserve Bank of Australia governor, Glenn Stevens has pointed out, “the impediments… are not financial. The funding would be available, with long- term interest rates the lowest we have ever seen or are likely to…The impediments are in our decision-making processes and, it seems, in our inability to find a political agreement on how to proceed.”

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Latin America and the Caribbean: What does it take to prevent people from falling back into povertyhttp://www.ipsnews.net/2016/06/latin-america-and-the-caribbean-what-does-it-take-to-prevent-people-from-falling-back-into-poverty/?utm_source=rss&utm_medium=rss&utm_campaign=latin-america-and-the-caribbean-what-does-it-take-to-prevent-people-from-falling-back-into-poverty http://www.ipsnews.net/2016/06/latin-america-and-the-caribbean-what-does-it-take-to-prevent-people-from-falling-back-into-poverty/#comments Wed, 22 Jun 2016 18:06:56 +0000 Jessica Faieta http://www.ipsnews.net/?p=145748 http://www.ipsnews.net/2016/06/latin-america-and-the-caribbean-what-does-it-take-to-prevent-people-from-falling-back-into-poverty/feed/ 0 Is globalization the death knell of branding?http://www.ipsnews.net/2016/06/is-globalization-the-death-knell-of-branding/?utm_source=rss&utm_medium=rss&utm_campaign=is-globalization-the-death-knell-of-branding http://www.ipsnews.net/2016/06/is-globalization-the-death-knell-of-branding/#comments Wed, 22 Jun 2016 07:55:18 +0000 Ben D. Kritz http://www.ipsnews.net/?p=145743 Shipping Container - Credit: Bigstock

Shipping Container - Credit: Bigstock

By Ben D. Kritz
MANILA, Jun 22 2016 (Manila Times)

SPEAKING to his company’s investor conference last Tuesday, Alibaba founder Jack Ma made a controversial, and entirely valid, observation:

“The problem is that the fake products today, they make better quality, better prices than the real products, the real names,” Ma said, according to a Bloomberg report. “It’s not the fake products that destroy them, it’s the new business models.”

The same factories being used to produce branded products are the ones making the counterfeit products, Ma explained. The goods are made in the same place, by the same workforce, using the same materials and methods; the only difference is whether the name that is hung on the finished goods complies with trademark law.

The same factories being used to produce branded products are the ones making the counterfeit products, Ma explained. The goods are made in the same place, by the same workforce, using the same materials and methods; the only difference is whether the name that is hung on the finished goods complies with trademark law.

The same factories being used to produce branded products are the ones making the counterfeit products, explained Alibaba founder Jack Ma
Because of the rapid growth of market access through the internet, in part thanks to platforms like Ma’s Alibaba, factories that produce ‘counterfeit goods’ can promote them directly to consumers, making policing the global marketplace increasingly more difficult. Ma assured his audience that his company—which has come under fire for ‘not doing enough’ to combat piracy and trademark infringement—is doing the best it can to combat the problem, but the implication of his comments was that the effort was at best only partly successful, and is probably doomed to eventually fail.

Ma’s comments didn’t sit well with many people, especially the Chinese authorities, who are quite anxious to change their country’s reputation as the world’s source of cheap knock-offs. But he was undeniably correct; and to be fair to China, it’s not the only country grappling with the problem. Bangladesh, which is a source for a significant amount of the world’s supply of apparel, has also been taken to task for not having stronger protections against counterfeiting, and other countries like India, Pakistan, and Sri Lanka have also been criticized.

As Ma pointed out, it’s not the factories or their output that are the real problem, it’s the globalization business model. There was a time a few decades ago when to Western consumers a branded product was superior to a cheaper, unbranded product because of its origin; one would prefer a pair of Adidas sneakers over a less expensive no-name pair, because the Adidas shoes were made in Germany with all the attention to quality that origin implies. As companies began to move manufacturing overseas, however—to places like Korea and Taiwan at first, then later to countries like China, India, or Bangladesh—the branded products were still preferred because of the assumption that the quality standards were still maintained.

But now, particularly with the rise of native Chinese brands—names like Huawei and ZTE in the electronics sector are probably good examples—the brand premium of Western brands like Adidas, Nike and Apple is no longer self-evident, for the very reason Ma described. If a particular branded product is produced in a Chinese factory alongside and in precisely the same way as a counterfeit or otherwise ‘unbranded’ product, explaining what distinguishes the former from the latter becomes very difficult.

So long as the product is properly made, tangible brand attributes, the actual features and benefits, cannot be used to support the notion that the brand is a superior choice. The brand value has to be based on entirely evocative cues, which really only works on stupid people, and ultimately transfers the added value from the product to the consumer—in other words, what makes the brand worth its premium price is the mere fact that some consumers are able to pay more for it. In consciously consumerist markets (like the Philippines) where there is still a great deal of social worth attached to labels, brands still have some traction, but their staying power will have a short duration. Consider, as an example, the market for mobile phones: Brands that were once considered ‘second-rate’ (or didn’t even exist a few years ago) collectively dominate the market, and have democratized it—when nearly everyone can afford a smartphone that has capabilities equal to everyone else’s phone, the perception of prestige that comes from owning an iPhone or top-end Samsung vanishes.

And that leads to another disturbing, but interesting question: If a brand is not uniquely associated with objective attributes of a product—technical specifications, proprietary methods of manufacture, or the like—and the intangibles associated with the brand are essentially valueless, then what exactly are companies protecting against counterfeiters and copycats, and why should government aggressively support those efforts? The easiest answer is that if they did not, it would be difficult to impose and maintain standards for products. But on the other hand, that is an area where the market tends to be self-correcting, even if it lags in the sense that the market has to first discover that a product is bad. With the acceleration of public communication, thanks to the internet and social media, however, that time gap is narrowing; consumers need not rely on regulators to protect them as much as they needed to in the past.

One conclusion to all this may be that globalization may be having the opposite effect in terms of strengthening companies than its proponents—the companies themselves—intended. That’s ultimately good for consumers, and probably good for the vast class of smaller businesses, the sort that benefits the most from platforms like Jack Ma’s Alibaba, but bad for the engines that drive globalization in the first place. What happens next is anyone’s guess.

This story was originally published by The Manila Times

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Civil Society in Latin America Campaigns Against Trans-Pacific Partnershiphttp://www.ipsnews.net/2016/06/civil-society-in-latin-america-campaigns-against-trans-pacific-partnership/?utm_source=rss&utm_medium=rss&utm_campaign=civil-society-in-latin-america-campaigns-against-trans-pacific-partnership http://www.ipsnews.net/2016/06/civil-society-in-latin-america-campaigns-against-trans-pacific-partnership/#comments Mon, 20 Jun 2016 14:22:12 +0000 Emilio Godoy http://www.ipsnews.net/?p=145699 Activists from Chile, Mexico and Peru opposed to the Trans-Pacific Partnership (TPP), during a meeting in January in the Mexican capital, which was also attended by representatives of civil society from Canada and the United States. Credit: Emilio Godoy/IPS

Activists from Chile, Mexico and Peru opposed to the Trans-Pacific Partnership (TPP), during a meeting in January in the Mexican capital, which was also attended by representatives of civil society from Canada and the United States. Credit: Emilio Godoy/IPS

By Emilio Godoy
MEXICO CITY, Jun 20 2016 (IPS)

Civil society organisations from Chile, Mexico and Peru are pressing their legislatures and those of other countries not to ratify the Trans-Pacific Partnership (TPP).

The free trade agreement, which was signed in New Zealand on Feb. 4, is now pending parliamentary approval in the 12 countries of the bloc, in a process led by Malaysia. Chile, Mexico and Peru are the three Latin American partners.

The treaty will enter into effect two months after it has been ratified by all the signatories, or if six or more countries, which together represent at least 85 percent of the total GDP of the 12 partners, have ratified it within two years.

“We are seeking a dialogue with like-minded parliamentary groups that defend national interests, and we provide them with information. We want to use the parliaments as hubs, and we also want dialogues with organisations from the United States, Canada and the Asian countries,” Carlos Bedoya, a Peruvian activist with the Latin American Network on Debt, Development and Rights (LATINDADD), told IPS.

Civil society groups in Peru created the “Our Rights Are Not Negotiable” coalition, to reject the most controversial parts of the agreement.

With similar initiatives, “A Better Chile without TPP” and “A Better Mexico without TPP”, non-governmental organisations and civil society figures are protesting the negative effects that the treaty would have on their societies.

The activists complain that the intellectual property chapter of the agreement stipulates a minimum of five years of data protection for clinical trials for Mexico and Peru. And in the case of biologics, the period is three years for Mexico and 10 years for Peru.

In Chile, in both cases it will be five years of protection, in line with its other free trade agreements.

These barriers delay cheaper, generic versions of drugs from entering the market for a longer period of time.

Another aspect criticised by activists is that the member countries must submit disputes over investments to extraterritorial bodies, like the International Centre for Settlement of Investment Disputes (ICSID).

The alliances against the TPP also criticise the provisions for Internet service providers to oversee content on the web in order to control the distribution of material that violates copyright laws.

Latin American activists complain as well about the U.S. demand that the partners reform domestic laws and regulations to bring them into line with the TPP, in a process separate from or parallel to ratification by the legislature.

In addition, they protest that Washington was given the role of certifying that each partner has faithfully implemented the agreement.

The TPP emerged from the expansion of an alliance signed in 2006 by Brunei, Chile, New Zealand and Singapore, within the framework of the Asia-Pacific Economic Cooperation (APEC) forum. These countries were later joined by Australia, Canada, Japan, Malaysia, Mexico, Peru, the United States and Vietnam.

A girl holds a sign saying the TPP means Transferring Fully our Powers, during a protest against the trade agreement in Santiago, Chile. Credit: Courtesy of "A Better Chile without TPP"

A girl holds a sign saying the TPP means Transferring Fully our Powers, during a protest against the trade agreement in Santiago, Chile. Credit: Courtesy of “A Better Chile without TPP”

The agreement encompasses areas like customs, textiles, investment, telecommunications, e-commerce, dispute settlement, and labour and environmental issues.

The economies in the bloc represent 40 percent of global GDP and 20 of world trade.

The TPP “has negative effects on health and economic development. It won’t benefit our countries. But there will be a lengthy debate, because it contains issues that generate conflict,” Carlos Figueroa, a Chilean activist with his country’s coalition against the treaty, which encompasses 99 organisations, prominent individuals and five parliamentarians, told IPS.

Among its actions, the “A Better Chile without TPP” organises mass email campaigns to petition the government against the accord, promotes campaigns over the social networks, holds public demonstrations and is lobbying in parliament to block approval of the treaty.

In Mexico, conservative President Enrique Peña Nieto has enough votes in the Senate, which is responsible for ratifying international accords, to approve the treaty, with the votes from the governing Institutional Revolutionary Party, its ally the Green Party, and the opposition right-wing National Action Party.

In Chile, socialist President Michelle Bachelet’s centre-left alliance will be able to count on enough votes from the right to ratify the agreement.

And in Peru, the party of President-elect Pedro Pablo Kuczynski, a former World Bank economist and Wall Street banker in favour of free trade, has only a small number of seats in Congress. But a rival right-wing party, Fuerza Popular, which has a broad majority in the legislature, will approve the TPP, after the new government takes office in July and the new lawmakers are sworn in.

But furthermore, in Peru, the content of any free trade agreement does not require legislative approval unless it goes beyond what was agreed in 2009 with the United States.

Despite attempts by governments of the countries in the bloc to promote the positive impacts of the TPP, recent reports call the supposed benefits into question.

“Global Economic Prospects; Potential Macroeconomic Implications of the Trans-Pacific Partnership”, a report published in January by the World Bank, projected that the treaty could boost the GDP of its members by 1.1 percent and their trade by 11 percent a year on average by 2030.

In the case of Canada, Mexico and the United States, which have their own free trade agreement, NAFTA, since 1994, the benefit is just 0.6 percent of GDP.

And for Mexico, the positive impact would be even more reduced, because the cuts in import duties give other members of the TPP greater access to the U.S. market, the document says.

Economists from Tufts University in the U.S. state of Massachusetts had a more negative view of the trade deal, predicting “increasing inequality and job losses in all participating economies.”

“Trading Down: Unemployment, Inequality and Other Risks of the Trans-Pacific Partnership Agreement”, a study by the Global Development and Environment Institute at Tufts University, estimates that the TPP would lead to employment loss in all member countries, with a total loss of 771,000 jobs, including 448,000 in the United States alone.

In Mexico, 78,000 jobs would be lost, and in Chile and Peru, 14,000.

The authors estimate that by 2025, Mexican exports will grow 6.2 percent and GDP one percent; Peru’s exports will grow 7.1 percent and GDP 1.4 percent; and Chile’s exports will grow 2.5 percent and GDP 0.9 percent.

For its part, the U.S. International Trade Commission stated May 18, in its report “Trans-Pacific Partnership Agreement: Likely Impact on the U.S. Economy and on Specific Industry Sectors”, that by 2032 the TPP would boost the U.S. economy by an average of 0.01 percent a year and employment by 0.07 percent.

Enrique Dussel, coordinator of the China/Mexico Studies Center at the National Autonomous University of Mexico, questions Mexico’s involvement in the TPP without evaluating the consequences of further freeing up trade.

“There has been a 20-year learning process to know what works and what doesn’t,” he told IPS. “TPP partners without free trade agreements represent one percent of trade with Mexico and one percent of investment. The question is what do I do with the remaining 99 percent, what focus do I give trade and investment.”

NGOs in Latin America are hoping the U.S. election campaign will limit the debate on the TPP to Congress until the winner of the November elections takes office.

“That gives us a little time to fight against ratification. It will be a long battle,” said Bedoya.

Dussel anticipated three possible scenarios. “In two years it goes into effect; there will be no TPP; or in the United States the new president will call for substantial changes.”

Edited by Estrella Gutiérrez/Translated by Stephanie Wildes

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Building Africa’s Energy Grid Can Be Green, Smart and Affordablehttp://www.ipsnews.net/2016/06/building-africas-energy-grid-can-be-green-smart-and-affordable/?utm_source=rss&utm_medium=rss&utm_campaign=building-africas-energy-grid-can-be-green-smart-and-affordable http://www.ipsnews.net/2016/06/building-africas-energy-grid-can-be-green-smart-and-affordable/#comments Thu, 16 Jun 2016 15:24:55 +0000 Friday Phiri http://www.ipsnews.net/?p=145650 A Congolese man transports charcoal on his bicycle outside Lubumbashi in the DRC. An estimated 138 million poor households spend 10 billion dollars annually on energy-related products such as charcoal, candles, kerosene and firewood. Credit: Miriam Mannak/IPS

A Congolese man transports charcoal on his bicycle outside Lubumbashi in the DRC. An estimated 138 million poor households spend 10 billion dollars annually on energy-related products such as charcoal, candles, kerosene and firewood. Credit: Miriam Mannak/IPS

By Friday Phiri
PEMBA, Zambia, Jun 16 2016 (IPS)

It’s just after two p.m. on a sunny Saturday and 51-year-old Moses Kasoka is seated outside the grass-thatched hut which serves both as his kitchen and bedroom.

Physically challenged since birth, Kasoka has but one option for survival—begging. But he thinks life would have been different had he been connected to electricity. “I know what electricity can do, especially for people in my condition,” he says.

“With power, I would have been rearing poultry for income generation,” says Kasoka, who is among the estimated 645 million Africans lacking access to electricity, hindering their economic potential.

“As you can see, I sleep beside an open fire every night, which serves for both lighting and additional warmth in the night,” adds Kasoka, inviting this reporter into his humble home.

But while Kasoka remains in wishful mode, a kilometer away is Phinelia Hamangaba, manager at Pemba District Dairy milk collection centre, who is now accustomed to having an alternative plan in case of power interruptions, as the cooperative does not have a stand-by generator.

Phinelia has daily responsibility for ensuring that 1,060 litres of milk supplied by over a hundred farmers does not ferment before it is collected by Parmalat Zambia, with which they have a contract.

“Electricity is our major challenge, but in most cases, we get prior information of an impending power interruption, so we prepare,” says the young entrepreneur. “But when we have the worst case scenario, farmers understand that in business, there is profit and loss,” she explains, adding that they are called to collect back their fermented milk.

Moses Kasoka sits in his wheelchair outside his grass-thatched hut in Pemba, Zambia. Credit: Friday Phiri/IPS

Moses Kasoka sits in his wheelchair outside his grass-thatched hut in Pemba, Zambia. Credit: Friday Phiri/IPS

The cooperative is just one of several small-scale industries struggling with country-wide power rationing. Due to poor rainfall in the past two seasons, there has not been enough water for maximum generation at the country’s main hydropower plants.

According to the latest Economist Intelligence Unit report, Zambia’s power deficit might take years to correct, especially at the 1,080MW Kariba North Bank power plant where power stations on both the Zambian and Zimbabwean side of the Zambezi River are believed to have consumed far more than their allotted water over the course of 2015 and into early 2016.

The report highlights that in February, the reservoir at Kariba Dam fell to only 1.5 meters above the level that would necessitate a full shutdown of the plant. Although seasonal rains have slightly replenished the reservoir, it remained only 17 percent full as of late March, compared to 49 percent last year. And refilling the lake requires a series of healthy rainy seasons coupled with a moderation of output from the power plant—neither of which are a certainty.

This scenario is just but one example of Africa’s energy and climate change nexus, highlighting how poor energy access hinders economic progress, both at individual and societal levels.

And as the most vulnerable to climate change vagaries, but also in need of energy to support the economic ambitions of its poverty-stricken people, Africa’s temptation to take an easy route through carbon-intensive energy systems is high.

“We are tired of poverty and lack of access to energy, so we need to deal with both of them at the same time, and to specifically deal with poverty, we need energy to power industries,” remarked Rwandan President Paul Kagame at the 2016 African Development Bank Annual meetings in Lusaka, adding that renewables can only meet part of the need.

But former United Nations Secretary General Kofi Annan believes Africa can develop using a different route. “African nations do not have to lock into developing high-carbon old technologies; we can expand our power generation and achieve universal access to energy by leapfrogging into new technologies that are transforming energy systems across the world. Africa stands to gain from developing low-carbon energy, and the world stands to gain from Africa avoiding the high-carbon pathway followed by today’s rich world and emerging markets,” says Annan, who now chairs the Africa Progress Panel (APP).

In its 2015 report Power, People, Planet: Seizing Africa’s Energy and Climate Opportunities, the APP outlines Africa’s alternative, without using the carbon-intensive systems now driving economic growth, which have taken the world to the current tipping point. And Africa is therefore being asked to lead the transition to avert an impending disaster.

The report recommends Africa’s leaders use climate change as an incentive to put in place policies that are long overdue and to demonstrate leadership on the international stage. In the words of the former president of Tanzania, Jakaya Kikwete, “For Africa, this is both a challenge and an opportunity. If Africa focuses on smart choices, it can win investments in the next few decades in climate resilient and low emission development pathways.”

But is the financing mechanism good enough for Africa’s green growth? The APP notes that the current financing architecture does not meet the demands, and that the call for Africa’s leadership does not negate the role of international cooperation, which has over the years been a clarion call from African leaders—to be provided with finance and reliable technology.

The Pan African Climate Justice Alliance (PACJA) mourns the vague nature of the Paris agreement in relation to technology transfer for Africa. “The agreement vaguely talks about technologies without being clear on what these are, leaving the door open to all kinds of false solutions,” reads part of the civil society’s analysis of the Paris agreement.

However, other proponents argue for home solutions. According to available statistics, it is estimated that 138 million poor households spend 10 billion dollars annually on energy-related products, such as charcoal, candles, kerosene and firewood.

But what would it take to expand power generation and finance energy for all? The African Development Bank believes a marginal increase in energy investment could solve the problem.

“Africa collects 545 billion dollars a year in terms of tax revenues. If you put ten percent of that to electricity, problem is solved. Second, share of the GDP going to energy sector in Africa is 0.49 percent. If you raise that to 3.4 percent, you generate 51 billion dollars straight away. So which means African countries have to put their money where their mouth is, invest in the energy sector,” says AfDB Group President, Akinwumi Adesina, who also highlights the importance of halting illicit capital flows out Africa, costing the continent around 60 billion dollars a year.

While Kasoka in Southern Zambia’s remote town awaits electricity , the country’s Scaling Solar programme, driving the energy diversification agenda, may just be what would light up his dream of rearing poultry. According to President Edgar Lungu, the country looks to plug the gaping supply deficit with up to 600 MW of solar power, of which 100 MW is already under construction.

With the world at the tipping point, Africa will have to beat the odds of climate change to develop. Desmond Tutu summarises what is at stake this way: “We can no longer tinker about the edges. We can no longer continue feeding our addiction to fossil fuels as if there were no tomorrow. For there will be no tomorrow. As a matter of urgency we must begin a global transition to a new safe energy economy.

“This requires fundamentally rethinking our economic systems, to put them on a sustainable and more equitable footing,” the South African Nobel Laureate says in the APP 2015 report.

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Unfounded Debt Fears Block Economic Recoveryhttp://www.ipsnews.net/2016/06/unfounded-debt-fears-block-economic-recovery/?utm_source=rss&utm_medium=rss&utm_campaign=unfounded-debt-fears-block-economic-recovery http://www.ipsnews.net/2016/06/unfounded-debt-fears-block-economic-recovery/#comments Thu, 16 Jun 2016 13:58:46 +0000 Anis Chowdhury and Jomo Kwame Sundaram http://www.ipsnews.net/?p=145649 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, Jun 16 2016 (IPS)

Debt anxieties are not new, often fanned by political competition. But so is a double dip recession due to premature deficit reduction. For example, to seek re-election, President Roosevelt backed down from his New Deal in 1937, promising that “a balanced budget [was] on the way”. In 1938, he slashed government spending, and unemployment shot up to 19 per cent.

Deficits and debt

Many countries had huge public debts when World War II ended. Despite such anxieties and calls for drastic spending cuts, governments continued to spend. Had they caved in, Europe would not have been rebuilt so soon. As governments continued with massive expenditure to rebuild their countries, economies grew and the debt burden diminished rapidly with rapid economic growth. Clearly, debt is sustainable if government expenditure enhances both growth and productivity.

When the debate about deficits and public debt was raging during the Great Depression, Evsey Domar, growth theory pioneer, noted, “Opponents of deficit financing often disregard … completely, or imply, without any proof, that income will not rise as fast as the debt… There is something inherently odd about any economy with a continuous stream of investment expenditures and a stationary national income.”

After the 2008-2009 financial meltdown brought many OECD economies to a standstill, there was a brief revival of fiscal activism. Many OECD governments initially responded with large fiscal stimulus packages, while bailing out influential financial institutions. Major developing countries also put in place well designed fiscal stimulus packages including public infrastructure investment and better social protection.

Hence, there were sudden increases in debt/GDP ratios, mainly due to large financial bail-out packages and some fiscal activism. But with the first hints of “green shoots” of recovery from mid-2009, fiscal hawks stepped up their calls for winding back, sounding dire warnings about ballooning deficits. They argued that rapid fiscal consolidation would boost confidence, particularly in the finance sector, creating an expansionary impulse.

Thus, the affected countries undertook rapid fiscal consolidation measures with large cuts in public expenditure, especially in the areas of health, education, social security and infrastructure. Yet, their debt-GDP ratios continue to rise as they struggle to reignite growth. Meanwhile, the IMF has admitted that its initial fiscal consolidation advice was based on erroneous ad-hoc calculations.

Overwhelming recent research findings, including from the IMF, indicate that discretionary counter-cyclical fiscal policy in recessionary periods augments and catalyses aggregate demand, encourages private investment and enhances productivity growth, instead of raising interest rates and crowding-out private spending.

Optimal debt-GDP ratio?

The fixation with a particular debt-GDP ratio lacks any sound basis. The 60 per cent debt-to-GDP ratio, used by the European Commission and the IMF as the upper threshold for fiscal sustainability by 2030, was simply the median pre-crisis ratio for developed countries and the median debt-GDP ratio of EU countries at the time of the Maastricht Treaty. Similarly, the 3 per cent budget deficit rule of the EU happened to be the median budget deficit ratio at the time of the Treaty. None of these ostensible bench-marks imply optimality in any meaningful, economic sense.

Public debt in Japan soared to well over 200 per cent of GDP over two and a half decades of deflation. Yet, interest rates have remained low for many decades. In 1988, Belgium had the highest public debt, and Italy’s debt rose above 100 per cent of GDP during this period. Neither of them experienced spiraling inflation or very high interest rates as ‘austerity hawks’ claim will happen when government fiscal deficits rise. Meanwhile, studies of public finance in the United States do not find any significant relationship between debt-to-GDP ratios and inflation or interest rates during 1946-2008.

However, real interest rates may be adversely impacted by whether the debt is denominated in domestic or foreign currencies. In other words, a sovereign country should have the option to monetize debt. The problem arises when that option does not exist, as with countries in the Euro zone. This is clear from the contrasting experiences of Spain and the UK during the recent rapid public debt build-up.

The UK public debt-GDP ratio was 17 percentage points higher than the Spanish Government debt (89 versus 72 per cent) in 2011. Yet, the yield on Spanish government bonds rose strongly relative to the UK’s from early 2010, suggesting that international bond markets costed Spanish risk much more than UK government bonds.

As a member of a monetary union, Spain does not have control over the currency in which its debt is issued, while UK public debt is mostly in its own currency, as in the US and Japan. Therefore, much of the problem in the Euro zone is not really about high public debt or deficits. Rather, it is rooted in the currency union that limits its members’ policy space with regard to money creation and exchange rate policy. Hence, the only way they can improve what is seen as competitiveness is by cutting wages!

Then and now

Since 2014, even the IMF has changed its stance. In its October 2014 World Economic Outlook, it advised that “debt-financed projects could have large output effects without increasing the debt-to-GDP ratio, if clearly identified infrastructure needs are met through efficient investment”.

There is, of course, one difference between now and the 1930s. The finance sector and rating agencies are much more influential and powerful now than then. Democratically elected governments have become hostage to money-market investors who shift money from one place to another in search of quick profits.

Governments should not be driven by superficial diagnoses of complex economic issues by rating agencies. The record of rating agencies before the 2008 global economic crisis was abysmal, and the US Congress has seriously debated whether they should be prosecuted. Trying to win their confidence is futile, and trying to anticipate them is hazardous, but they nevertheless hold finance ministries and central banks to ransom.

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Western Nations, Blaming Cash Crunch, Pull out of UNIDOhttp://www.ipsnews.net/2016/06/western-nations-blaming-cash-crunch-pull-out-of-unido/?utm_source=rss&utm_medium=rss&utm_campaign=western-nations-blaming-cash-crunch-pull-out-of-unido http://www.ipsnews.net/2016/06/western-nations-blaming-cash-crunch-pull-out-of-unido/#comments Wed, 15 Jun 2016 20:00:38 +0000 Thalif Deen http://www.ipsnews.net/?p=145638 http://www.ipsnews.net/2016/06/western-nations-blaming-cash-crunch-pull-out-of-unido/feed/ 0 Leaving Saudi Arabiahttp://www.ipsnews.net/2016/06/leaving-saudi-arabia/?utm_source=rss&utm_medium=rss&utm_campaign=leaving-saudi-arabia http://www.ipsnews.net/2016/06/leaving-saudi-arabia/#comments Wed, 15 Jun 2016 15:53:22 +0000 Rafia Zakaria http://www.ipsnews.net/?p=145634 By Rafia Zakaria
Jun 15 2016 (Dawn, Pakistan)

The Eastern Province of Saudi Arabia is not one pilgrims or foreign tourists normally visit. Set against the Persian Gulf, it is the heart of the kingdom’s oil industry. Unsurprisingly, it is also home to most of its migrant workers whose labour populates this sector.

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

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

Other than migrant workers, mostly Pakistani, Indian, Sri Lankan or from one or another poor labour-exporting nation, the Eastern Province is also home to the majority of Saudi Arabia’s Shia population. Perhaps because of this diverse mix, the province has also been the place where the government has chosen to launch a programme called ‘Ehna al-Ahl’ or ‘We are one family’. According to an article in the Saudi Gazette, this programme, which organises performances in the region’s malls and arranges for the distribution of brochures, is meant to enhance national cohesion and denounce extremism and divisions. The programme is supposed to last throughout the month of Ramazan.

It can be safely assumed, however, that the Pakistanis labouring in the Eastern Province are not part of the ‘one family’ whose cohesion and lack of division is a priority for the kingdom. Among them is Mohammad Ilyas who works as the head of budgeting and finance at a multinational steel company. For several months now, Mr Ilyas has been trying to obtain an exit permit that would enable him to visit Pakistan. As some may remember, a confusing directive by the Saudi government several months ago stated that Pakistani workers living in Saudi Arabia would only be permitted to visit Pakistan once every year. A few weeks later, however, the Saudi government said that the directive had been withdrawn and that Pakistani workers could go back home for visits multiple times as they did in previous years.

The issue of Pakistani workers trapped in Saudi Arabia’s eastern region deserves the urgent attention of both Islamabad and Riyadh.

The renewed permission to leave more than once seems only to apply to Pakistanis in certain parts of the kingdom. In the Eastern Province, which includes the areas of Jubail and Dammam, however, things are far more complicated. As per the kingdom’s latest requirements, workers must apply for the entry/exit permit through the computerised system known as muqeem. However, when Mohammad Ilyas and others in the Eastern Province use it to apply for the permit, the system gives them an error message and asks them to visit the passport office in Jubail in person.

Both Mr Ilyas and his company representative have visited the passport office numerous times. When Mr Ilyas did so, the people at the passport office told him that he was only permitted to visit Pakistan once a year and that if he could not obtain a permit online, he simply could not go home. To add to the humiliation of denied workers like Mr Ilyas, colleagues of different nationalities, including Indians, have no problem obtaining the multiple exit/re-entry permit via the system and can visit home as many times as they wish.

Nor is Mohammad Ilyas alone in this predicament. According to the online forum Life in Saudi Arabia, where numerous overseas Pakistani workers share their issues, many other Pakistanis in the Eastern Province are similarly being denied exit permits to go home. Saudi officials at the passport office either tell them that they must try again online or simply state that no permit will be issued at the office itself. In other cases they are told that they have already visited Pakistan more than once this year and are hence not eligible for an exit permit.

On May 5, the embassy of Pakistan in Riyadh took note of the problem. The press release posted on the embassy’s website says: “The embassy of Pakistan, Riyadh is aware of the fact that some of our nationals face difficulty in obtaining multiple exit/re-entry visa from the passport offices of the Eastern Province of Saudi Arabia. The embassy is in constant contact with the concerned authorities to resolve the matter.” In a previous communication issued on April 16, the embassy has stated that it had brought up the issue in writing and in person with the Saudi authorities concerned and was trying its level best to handle the situation.

It is now June 15 and Mohammad Ilyas (who has lived and worked in Saudi Arabia for the past 10 years) and many other Pakistani workers in the Eastern Province continue to be without exit/re-entry permits and are hence unable to leave the kingdom. It is true that the embassy of Pakistan has many issues on its hands. Some weeks ago, the Ministry of Foreign Affairs revealed that over 2,000 Pakistanis are languishing in Saudi jails on various charges. The Pakistani embassy is the only recourse for all of these accused. Add to this the demands of the upcoming Haj season and the ever larger number of pilgrims that wish to travel to Makkah, and you have a small consular staff beset with large problems.

Even so, the issue of Pakistani workers trapped in Saudi Arabia’s eastern region is one deserving the urgent attention of both governments. At the Saudi end, the kingdom’s commitment to the principles of justice and fair treatment, particularly in this, the holiest month of the Muslim calendar, means that they should not entrap Pakistani workers in a situation that is akin to enslavement.

At the Pakistani end, some honest answers must be demanded on the discrepancy between the ‘official’ statements given by the Saudi government’s representatives (ones that state that no restriction exists on the multiple exit/re-entry of Pakistani workers) and the reality via which Pakistani workers are being denied exit.

It is Ramazan now and soon it will be Eid. Pakistan’s workers — forced abroad because of the scant sources of employment at home — should not be permitted to become pawns of a Saudi government that seems to care little about whether or not they can be with their families for the holiday. Workers, it must be remembered, are not slaves chained to their place of employment and must be accorded the very basic right to leave and return.

The writer is an attorney teaching constitutional law and political philosophy. rafia.zakaria@gmail.com

This story was originally published by Dawn, Pakistan

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Brexit and Its Economic Fallouthttp://www.ipsnews.net/2016/06/brexit-and-its-economic-fallout/?utm_source=rss&utm_medium=rss&utm_campaign=brexit-and-its-economic-fallout http://www.ipsnews.net/2016/06/brexit-and-its-economic-fallout/#comments Wed, 15 Jun 2016 15:33:00 +0000 Abdullah Shibli http://www.ipsnews.net/?p=145633 By Dr. Abdullah Shibli
Jun 15 2016 (The Daily Star, Bangladesh)

The United Kingdom is now in the midst of a Shakespearean dilemma, “to stay or not to stay”. Voters will decide in a referendum on June 23 whether to stay in the European Union or to break the four decades old relationship they forged, i.e. opt for “Brexit” as it is popularly known. If the majority decides to leave, it will have implications for Britain across the spectrums, political, economic, and social. While in the last referendum on this issue in 1975, an overwhelming 68 percent of the electorate had decided to stay, this time the margin will be narrower, one way or the other. Britain’s departure from the EU will also undoubtedly set a bad example for advocates of Customs Union, an economic arrangement of sovereign countries set up to facilitate trade and economic integration through trade.

While there are many issues relating to the current mood of disillusionment with Britain’s ties with EU, they are not all economic. The most important ones are: immigration, excessive EU regulations, budgetary contributions, loss of sovereignty, and EU social policy. However, all of them have economic side-effects, including the non-economic ones, immigration and EU’s regulatory influence. Prima facie, Brexit appears to be a dramatic move; nonetheless most analyses show that the most important long-term impact could be minor in terms of GDP and unemployment rate. As one meta-analysis points out, the decision to leave the EU appears to be mainly a political consideration about sovereignty and self-determination.

From the policymaker’s perspective, the most important lesson is that the forecasts on GDP are very uncertain. Nine out of ten economists surveyed indicate that in the short-run the economy will experience a downward adjustment, but the loss of income is small. But in the long run, there is a potential for greater loss, and the risk of bigger losses is large.

Fortunately, Britain is not in the same shoes as Greece, since the former has its own currency – the pound sterling – and has not embraced the Euro. It has also been doing much better than its EU partners in recent years. However, EU is Britain’s most important trading partner, accounting for half of all UK exports and imports. UK exports to the EU correspond to almost 15 percent of national output (GDP). Eurosceptics, i.e., those who believe that membership in EU is hurting the UK, counter that “membership of the single market imposes too many regulations on Britain in exchange for too little opening of European markets and that Britain’s trade with countries outside Europe would be higher if it left”.

Unfortunately, should Brexit occur, the UK will need to negotiate a new trade relationship with the EU, and outcomes will depend on the terms of the subsequent trade arrangement and the regulatory framework that it adopts once it is free of EU’s regulatory framework. And there are many alternative trade regimes that have been circulating in the research and media world to capture the short and long-term economic impacts in the post-Brexit world. A sampling of these include joining the European Economic Area (EEA, like Norway), entering into a Customs Union (like Turkey), negotiating a Free Trade Agreement (that eliminates export tariff barriers, like Canada), and the Swiss model (continued bilateral negotiation). Some of the core metrics include GDP growth, trade volumes, inflation, household spending, employment, property values, and assets prices.

A quick survey of economic forecasts based on quantitative models indicates that Britain might benefit or lose from breaking up with the EU. However, the most important conclusion seems to be that the magnitude of the economic impact is hard to predict. Any divorce lawyer will tell you that. Most domestic relationships don’t go sour for economic reasons, rather due to social or personality conflicts. But, any breakup affects both parties and other family members. Britain’s mood until June 23 is captured by a song “Should I Stay or Should I Go” by the English punk rock band The Clash written in 1981. The latest opinion poll indicates that there is a greater than even chance that the Brits will decide to leave, unless Prime Minister Cameron can get the voters out in droves.

The writer is an economist, and writes on public policy issues for this newspaper.

This story was originally published by The Daily Star, Bangladesh

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Drought Dries Up Money from Honeyhttp://www.ipsnews.net/2016/06/drought-dries-up-money-from-honey/?utm_source=rss&utm_medium=rss&utm_campaign=drought-dries-up-money-from-honey http://www.ipsnews.net/2016/06/drought-dries-up-money-from-honey/#comments Wed, 15 Jun 2016 13:14:31 +0000 Busani Bafana http://www.ipsnews.net/?p=145631 Zimbabwean farmer and beekeeper Nyovane Ndlovu with some of the honey produced under his own label. Credit: Busani Bafana/IPS

Zimbabwean farmer and beekeeper Nyovane Ndlovu with some of the honey produced under his own label. Credit: Busani Bafana/IPS

By Busani Bafana
BULAWAYO, Zimbabwe, Jun 15 2016 (IPS)

“It is everything” is how smallholder farmer Nyovane Ndlovu describes beekeeping, which has long been an alternative sweet source of income for drought-beaten farmers in Zimbabwe.

A drought worsened by the El Nino phenomenon – which has now eased – led to a write-off of crops in many parts of Zimbabwe and across the Southern Africa region where more than 28 million people will need food aid this year. More than four million people need assistance in Zimbabwe, which has made an international appeal for 1.6 billion dollars to cover grain and other food needs. The drought, the worst in 30 years, has destroyed crops and livestock.

Ndlovu, 57, from a village in the Lupane District, a dry area prone to drought and hunger, is one of the country’s growing number of honey heroes, using forest resources to cope with a changing climate and complement his farming income.

But even beekeeping has not been immune to the latest severe drought , and many farmers who have depended on honey to make ends meet are reporting major losses this year.“Last year I got three 25-litre buckets of honey and this year not even one bucket. The weather changed so that the bees lacked enough flowers for food." -- Nyovane Ndlovu

“Honey is my food and my children love it because they know each time I harvest they never go hungry,” says Ndlovu, who trained in beekeeping more than 10 years ago.

Beekeeping, practiced by more than 16,000 farmers in Zimbabwe, generally complements maize and grain crops. Last season, Ndlovu harvested a tonne of maize and 0.5 tonnes of sorghum, low numbers even for a drought year.

“Even in times of drought I have realized something from the field, especially small grains, but this past season has been terrible for many farmers,” says Ndlovu, who won a scotch cart and a plough in 2012 for emerging as the top farmer in an agriculture competition. “I turned to beekeeping when I realized the benefits. The proceeds from my honey sales have allowed me to pay school fees for my children and cover other household needs. I am getting more from honey than I do from cropping.”

Lupane District located 172km North West of Zimbabwe’s second city of Bulawayo is home to more than 90,000 people, many who get by through limited cropping and extensive cattle rearing. The area is also home to state-owned indigenous hardwood forests, on which communities depend for fuel and food.

More honey, more money

Ndlovu has more than 20 Kenya Top Bar hives and two Langstroth hives – considered the best technology for apiculture because they give a higher production and quality honey. In a good season Ndlovu earns more than 500 dollars from honey sales. He even has his own label, Maguswini Honey, which he plans to commercialize once his honey has received a standard mark. A 375ml bottle of honey sells for four dollars in the village but five dollars when he delivers it to customers in Bulawayo and beyond.

Last year, Ndlovu and his neighbours, who belong to Bumbanani, a 30-member local beekeepers association, sold 900 dollars worth of honey within three days of exhibiting at the Zimbabwe International Trade Fair, an annual business showcase hosted in the city of Bulawayo. This year, they did not even make half the amount because they harvested less honey because of the drought.

“Last year I got three 25-litre buckets of honey and this year not even one bucket. The weather changed so that the bees lacked enough flowers for food and the water was also scarce and the hives did not have a lot of honey,” Ndlovu told IPS.

Another farmer, Nqobani Sibanda from Gomoza village in Ward 12 in Lupane, this year harvested one 20-litre bucket of honey compared to 60 litres last year.

“This year the flowers withered early and we think the bees did not have enough food, hence the honey harvest was low. I have four hives and each hive can give me up to 20 litres of honey on a good season and I can get 300 dollars or more, but not this year,” Sibanda said.

Development researcher with the Institute of Development Studies at the National University of Science and Technology (NUST), Everson Ndlovu, told IPS that income-generating projects such as beekeeping are an easy way for farmers to earn extra income in times of poor or no harvests and these projects can be up scaled into viable commercial enterprises.

“There is need for more training in business management, linking such small scale businesses to the market and business associations to get them properly registered and empowered,” said Ndlovu adding that, “the impact of drought has made it strategic for smallholder farmers to diversity their livelihoods but they need to receive weather information on time and in a manner they understand for them to make right decisions.”

Honey is traded globally and last year’s sales of natural honey were worth 2.3 billion dollars, according the World Top Exports website that tracks key exports. The sales were led by Europe with 35.2 percent of international honey sales, with Africa accounting for just 0.4 percent of the exports.

Bees which provide honey, propolis, Queen Jelly and beeswax among other products, help boost food security for some two billion smallholder farmers worldwide at no cost, a February 2016 study by the United Nations Food and Agriculture Organization (FAO) found. The FAO has called for the protection of bees and insects that play a vital role of pollination thereby sustainably increasing food supply. However, climate change is affecting global bee colonies.

A drought of many things

“Farmers have been affected by the drought and beekeeping was not spared, as seen by the low amount of honey they realized this year compared to last year in Lupane, a dry area,” said Clifford Maunze, a beekeeping trainer and Project Officer with Environment Africa under the Forestry Forces Programme supported by the FAO.

“We have trained farmers on beekeeping and helped them counteract the effects of the drought by planting more trees that bees like such as Moringa Oleifera, commonly known as the drumstick tree, which flowers constantly and have promoted the development of homestead orchard where they can have citrus trees to provide forage for the bees,” Maunze said.

Environment Africa, working with the Department of Agriculture Extension Services (Agritex), has trained 1,382 farmers in Lupane District and over 800 in Hwange District on beekeeping under a programme started in 2011. Lupane was chosen for apiculture projects because of its indigenous forests, some of which are threatened by expanding agricultural land, veld fires and deforestation.

“While the drought has affected farmers in Lupane, apiculture is the way to go providing income and jobs because it is cost-effective,” Maunze said.

In drier regions like Matabeleland North Province, farmers can harvest honey twice a season and with at least five hives a farmer can get 100 litres of honey. This can be even more in regions with higher rainfall and forage, where farmers can harvest up to four times a season.

Figures from the national statistical agency Zimstats and Agritex show that Zimbabwe produces over 427,000 kg of honey annually against a local demand of 447,000 kg. The deficit of nearly 20,000 metric tonnes is made up through imports, a situation that farmers like Ndlovu are seeking to change through intensive investment in apiculture.

Zimbabwe is aiming to raise honey production to a target 500,000 litres by 2018, according to Zim-Asset, a national strategy to revive the country’s battered economy, currently facing a cash crisis.

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A Healthy Trading System Requires Progress and Engagement at All Levelshttp://www.ipsnews.net/2016/06/a-healthy-trading-system-requires-progress-and-engagement-at-all-levels/?utm_source=rss&utm_medium=rss&utm_campaign=a-healthy-trading-system-requires-progress-and-engagement-at-all-levels http://www.ipsnews.net/2016/06/a-healthy-trading-system-requires-progress-and-engagement-at-all-levels/#comments Fri, 10 Jun 2016 16:09:47 +0000 Roberto Azevedo http://www.ipsnews.net/?p=145587

Roberto Azevêdo is the Director General of the World Trade Organization (WTO)

By Roberto Azevêdo
GENEVA, Jun 10 2016 (IPS)

This is a challenging time for global trade. According to the current World Trade Organization (WTO) new trade forecasts, global goods trade is expected to grow by 2.8%, making 2016 the fifth consecutive year of sub 3% growth. The gross domestic product (GDP) is still the most critical variable in the trade expansion equation, and as long as GDP growth remains low, trade numbers are likely to follow a similar trend.

Roberto Azevêdo

Roberto Azevêdo

This sort of dip in the numbers is not unprecedented, and we have experienced low trade growth in the early 1980s. Though we expect to come out of this pattern of low growth in the coming years- with trade growth forecast to pick up to 3.6% in 2017, it is nevertheless of some concern.

While the level of trade growth has stayed fairly constant in recent years, it is interesting to note that its composition is changing. A key driver of trade growth from 2011-2013 was import demand in Asia.

In the last two years this has shifted, with the US and Europe as the driving force of today’s modest growth, making up for slowdowns in Asia and elsewhere. In fact, if Asia’s contribution to trade had matched its average of recent years, world trade would have grown 3.5% in 2015, rather than 2.8%.

Rather than being an abstract indicator, trade growth, often matters because trade can act as a driver of broader economic growth and job creation. It certainly isn’t the only driver, but is an essential component of any strategy for sustainable economic growth.

And so the current downturn leads us to the question: what can we do to respond?

Governments have pushed monetary and fiscal policies to their limits in recent years but there is still room to move on trade. A more proactive approach could help to stimulate global demand.

One step would be for governments to remove the restrictive barriers introduced in recent years. Currently only 25% of these measures put in place by WTO members since the 2008 financial crisis have been removed. A shift in strategy here could help make a big difference.

We can also put in force trade agreements we have reached recently. By implementing the Trade Facilitation Agreement alone we could add another trillion dollars to global trade. This would include exports of about $730 billion dollars from developing countries.

Another step is, of course, striking new trade agreements. And we are seeing a lot of activity on this front both at the regional level, and through the World Trade Organization. While they have grown rapidly in recent years, bilateral and regional trade initiatives are not a new thing, pre-dating the creation of the global trading system.

These two different approaches are frequently portrayed as incompatible, however, they do not require an “either/or” strategy and can be created and implemented to complement each other. These different kinds of initiatives have long co-existed and complemented each other and I have no doubt that they will continue to do so.

Today, virtually all WTO members are involved in at least one of these initiatives. Today there are 270 regional trade agreements or RTAs in force and have been notified to the WTO with over a third in the Asia-Pacific region.

The most recent examples in the region are the Trans-Pacific Partnership (TPP) and the Regional Comprehensive Economic Partnership. And of course there are other important initiatives such as the Silk Road Economic Belt and the Maritime Silk Road, which attempt to build and develop links between several partners.

To take the example of the TPP, many of the 12 partners involved already have existing bilateral agreements with each other. The added advantage of this broader agreement is the potentially enormous market it creates. Instead of dealing with a number of different sets of rules or standards, the TPP could help to homogenize rules between all the parties.

Like several other agreements today, the TPP is an example of deep integration initiative through regional trade agreements. While earlier RTAs concentrated on only liberalizing tariffs, more recent RTAs have gone further.

Empirical evidence suggests that RTAs with deeper integration between signatories provide greater potential for the development of production chains which span national borders. WTO members in the Asia-Pacific region in particular have greatly benefited from these global value chains.

As production networks expand and regional and global value chains become more important, it is critical to minimise significant differences in legislation, rules and infrastructure, which impact international trade and investment between trading partners. This appears to be the case more and more in current RTAs and other regional trade networks.

The silk-road economic belt, for instance, is rebuilding traditional links by concentrating on issues of connectivity such as improved infrastructure including port facilities, roads, and rail links. By improving these infrastructural networks connecting Asia and Europe, it is likely to improve trade by facilitating upgraded trade routes with landlocked areas of Central Asia.

These are all important steps that need to be taken to free up international trade and facilitate greater integration in value chains.

But how does all of this regional activity fit within the global framework of the World Trade Organization?

Currently the WTO has 162 members with increasing numbers. The rules and regulations of the WTO covers 98% of global trade, therefore by and large, RTAs operate within these rules.

Indeed, our analysis of regional agreements have shown that a large number of them fall within the guidelines set by the WTO with no obvious conflicts between overlapping agreements.

Perhaps a bigger consideration is where such initiatives touch on areas that are not currently covered by the WTO, whereby different RTAs deal with the same issues in different ways. This is not to suggest that regional agreements should not venture into these areas. But I think conversations in the WTO could help us establish whether a multilateral approach is feasible or desirable. Through discussions with the WTO, we’re likely to have a much more balanced, and inclusive framework.

A healthy trading system requires progress and engagement at all levels. And we have to acknowledge that one reason for the proliferation of regional agreements over recent years was a lack of progress in striking trade agreements globally through the WTO.

I’m pleased to say that we are now changing this situation. The WTO has actually delivered an impressive amount over the last couple of years.

But it’s also important to note that a healthy trading system isn’t just about negotiating trade agreements, the WTO’s work extends far beyond negotiations. We also monitor trade policies, build trading capacity in developing and struggling countries, and we have built one of the most effective dispute settlement systems in international law.

Indeed, although some RTAs have provisions on disputes, most of the dispute settlement mechanisms provided are rarely used. Meanwhile the level of activity in the WTO’s dispute settlement system is rising very rapidly. We have dealt with over 500 disputes in the WTO’s 21 year history. And of course most of the disputes brought to the WTO involve parties who are also themselves part of an RTA.

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