Inter Press Service » Globalisation http://www.ipsnews.net Turning the World Downside Up Tue, 01 Sep 2015 03:54:51 +0000 en-US hourly 1 http://wordpress.org/?v=4.1.7 Opinion: A Farewell to Arms that Fuel Atrocities is Within Our Grasphttp://www.ipsnews.net/2015/08/opinion-a-farewell-to-arms-that-fuel-atrocities-is-within-our-grasp/?utm_source=rss&utm_medium=rss&utm_campaign=opinion-a-farewell-to-arms-that-fuel-atrocities-is-within-our-grasp http://www.ipsnews.net/2015/08/opinion-a-farewell-to-arms-that-fuel-atrocities-is-within-our-grasp/#comments Thu, 27 Aug 2015 19:09:41 +0000 Marek Marczynski http://www.ipsnews.net/?p=142170 The recent destruction of this 2,000-year-old temple – the temple of Baal-Shamin in Palmyra, Syria – is yet another grim example of how the armed group calling itself the Islamic State (IS) uses conventional weapons to further its agenda – but what has fuelled the growing IS firepower? Photo credit: Bernard Gagnon/CC BY-SA 3.0

The recent destruction of this 2,000-year-old temple – the temple of Baal-Shamin in Palmyra, Syria – is yet another grim example of how the armed group calling itself the Islamic State (IS) uses conventional weapons to further its agenda – but what has fuelled the growing IS firepower? Photo credit: Bernard Gagnon/CC BY-SA 3.0

By Marek Marczynski
CANCUN, Mexico, Aug 27 2015 (IPS)

The recent explosions that apparently destroyed a 2,000-year-old temple in the ancient city of Palmyra in Syria were yet another grim example of how the armed group calling itself the Islamic State (IS) uses conventional weapons to further its agenda.

But what has fuelled the growing IS firepower? The answer lies in recent history – arms flows to the Middle East dating back as far as the 1970s have played a role.

Marek Marczynski

Marek Marczynski

After taking control of Mosul, Iraq’s second largest city, in June 2014, IS fighters paraded a windfall of mainly U.S.-manufactured weapons and military vehicles which had been sold or given to the Iraqi armed forces.

At the end of last year, Conflict Armament Research published an analysis of ammunition used by IS in northern Iraq and Syria. The 1,730 cartridges surveyed had been manufactured in 21 different countries, with more than 80 percent from China, the former Soviet Union, the United States, Russia and Serbia.

More recent research commissioned by Amnesty International also found that while IS has some ammunition produced as recently as 2014, a large percentage of the arms they are using are Soviet/Warsaw Pact-era small arms and light weapons, armoured vehicles and artillery dating back to the 1970s and 80s.

Scenarios like these give military strategists and foreign policy buffs sleepless nights. But for many civilians in war-ravaged Iraq and Syria, they are part of a real-life nightmare. These arms, now captured by or illicitly traded to IS and other armed groups, have facilitated summary killings, enforced disappearances, rape and torture, and other serious human rights abuses amid a conflict that has forced millions to become internally displaced or to seek refuge in neighbouring countries.“It is a damning indictment of the poorly regulated global arms trade that weapons and munitions licensed by governments for export can so easily fall into the hands of human rights abusers … But world leaders have yet to learn their lesson”

It is a damning indictment of the poorly regulated global arms trade that weapons and munitions licensed by governments for export can so easily fall into the hands of human rights abusers.

What is even worse is that this is a case of history repeating itself. But world leaders have yet to learn their lesson.

For many, the 1991 Gulf War in Iraq drove home the dangers of an international arms trade lacking in adequate checks and balances.

When the dust settled after the conflict that ensued when Iraqi President Saddam Hussein’s powerful armed forces invaded neighbouring Kuwait, it was revealed that his country was awash with arms supplied by all five Permanent Members of the U.N. Security Council.

Perversely, several of them had also armed Iran in the previous decade, fuelling an eight-year war with Iraq that resulted in hundreds of thousands of civilian deaths.

Now, the same states are once more pouring weapons into the region, often with wholly inadequate protections against diversion and illicit traffic.

This week, those states are among more than 100 countries represented in Cancún, Mexico, for the first Conference of States Parties to the Arms Trade Treaty (ATT), which entered into force last December. This Aug. 24-27 meeting is crucial because it is due to lay down firm rules and procedures for the treaty’s implementation.

The participation of civil society in this and future ATT conferences is important to prevent potentially life-threatening decisions to take place out of the public sight. Transparency of the ATT reporting process, among other measures, will need to be front and centre, as it will certainly mean the difference between having meaningful checks and balances that can end up saving lives or a weakened treaty that gathers dust as states carry on business as usual in the massive conventional arms trade.

A trade shrouded in secrecy and worth tens of billions of dollars, it claims upwards of half a million lives and countless injuries every year, while putting millions more at risk of war crimes, crimes against humanity and other serious human rights violations.

The ATT includes a number of robust rules to stop the flow of arms to countries when it is known they would be used for further atrocities. 

The treaty has swiftly won widespread support from the international community, including five of the top 10 arms exporters – France, Germany, Italy, Spain and the United Kingdom.

The United States, by far the largest arms producer and exporter, is among 58 additional countries that have signed but not yet ratified the treaty. However, other major arms producers like China, Canada and Russia have so far resisted signing or ratifying.

One of the ATT’s objectives is “to prevent and eradicate the illicit trade in conventional arms and prevent their diversion”, so governments have a responsibility to take measures to prevent situations where their arms deals lead to human rights abuses.

Having rigorous controls in place will help ensure that states can no longer simply open the floodgates of arms into a country in conflict or whose government routinely uses arms to repress peoples’ human rights.

The more states get on board the treaty, and the more robust and transparent the checks and balances are, the more it will bring about change in the murky waters of the international arms trade. It will force governments to be more discerning about who they do business with.

The international community has so far failed the people of Syria and Iraq, but the ATT provides governments with a historic opportunity to take a critical step towards protecting civilians from such horrors in the future. They should grab this opportunity with both hands.

Edited by Phil Harris   

The views expressed in this article are those of the author and do not necessarily represent the views of, and should not be attributed to, IPS – Inter Press Service. 

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Emerging Industrial Power Rises From Aid Beneficiary to Donor Nationhttp://www.ipsnews.net/2015/08/emerging-industrial-power-rises-from-aid-beneficiary-to-donor-nation/?utm_source=rss&utm_medium=rss&utm_campaign=emerging-industrial-power-rises-from-aid-beneficiary-to-donor-nation http://www.ipsnews.net/2015/08/emerging-industrial-power-rises-from-aid-beneficiary-to-donor-nation/#comments Thu, 27 Aug 2015 18:12:22 +0000 Thalif Deen http://www.ipsnews.net/?p=142165 In the past two decades South Korea has made such vibrant progress that it now counts itself as one of the world’s leading economies. Credit: Anton Strogonoff/CC-BY-2.0

In the past two decades South Korea has made such vibrant progress that it now counts itself as one of the world’s leading economies. Credit: Anton Strogonoff/CC-BY-2.0

By Thalif Deen
UNITED NATIONS, Aug 27 2015 (IPS)

Back in 1996, when South Korea voluntarily quit the 132-member Group of 77 (G77) – described as the largest single coalition of developing nations — it joined the 34-member Organisation for Economic Cooperation and Development (OECD), long known as the “rich man’s club” based in Paris.

As one of only three countries to leave the G77 for the OECD – the other two being Mexico and Chile – Korea elevated itself from the ranks of developing nations to the privileged industrial world.

Perhaps more significantly, Korea also swapped places at the negotiation table: from an aid recipient to a donor nation.

“To play a greater role in the global community and fulfill its responsibility as one of the important donors, Korea will continue to increase its ODA [official development assistance]." -- Ambassador Choong-Hee Hahn, South Korea’s deputy Permanent Representative to the United Nations
Since then, the Korean government has made a significant contribution to development aid, providing assistance to some 26 developing nations.

Ambassador Choong-Hee Hahn, South Korea’s deputy Permanent Representative to the United Nations, told IPS Korea has selected 26 priority partner countries – out of 130 partner countries – for development assistance.

The countries have been singled out based on their income level, political situation, diplomatic relations with Korea, and economic cooperation potential.

To enhance aid effectiveness, he pointed out, the Korean government provides 70 percent of its Official Development Assistance (ODA) to 26 countries, namely, Ghana, Nigeria, Nepal, East Timor, Laos, Rwanda, Mozambique, Mongolia, Bangladesh, Viet Nam, Bolivia, Solomon Islands, Sri Lanka, Azerbaijan, Ethiopia, Uganda, Uzbekistan, Indonesia, Cameroon, Cambodia, Colombia, DRC, Paraguay, Pakistan, Peru, and the Philippines.

In 2014, Korea’s net ODA amounted to 1.85 billion dollars, ranking 16th in volume among OECD’s Development Assistance Committee (DAC) members.

Korea’s ODA-Gross National Income (GNI) ratio reached 0.13 percent, ranking 23rd among the OECD DAC members.

“To play a greater role in the global community and fulfill its responsibility as one of the important donors, Korea will continue to increase its ODA,” the Korean envoy said.

U.N. Secretary-General Ban Ki-moon, a former foreign minister of South Korea, points out that the international community must make progress on the three pillars of United Nations engagement.

First:  sustainable development. Second: conflict prevention and resolution. And third:  advancing human rights and democracy.

“Korea has unique lessons to share on all three pillars and can be an active catalyst in bringing the world together on these issues,” the U.N. chief said.

He said Korea evolved from a developing to a developed country within the span of a single generation, and successfully hosted the Group of 20 (G20) Summit in 2010.

“The international community is looking to Korea with high expectations,” said Ban praising his home country “for rising from a beneficiary to a donor.”

As it continues to enhance its international profile, Korea is now home to the Global Green Growth Institute and also host to the new secretariat of the Green Climate Fund.

Over the last 20 to 30 years, Korea has made such vibrant economic progress that it is now one of the world’s, if not Asia’s, leading economies, with global brand names such as Samsung, Hyundai, Kia, LG and Daewoo.

Asked about the secret of his country’s economic success, Ambassador Hahn told IPS Korea went through an unprecedented transformation from one of the least developed countries to a member of the OECD within a generation. Such economic success can be explained by several key factors.

First, Korea set ambitious yet realistic goals based on sustainable economic development plans.

He said this was achieved through the implementation of five-year economic development plans in the initial stage, even as Korea has made steady progress from the light industry to heavy industry, then to the service industry.

Second, human capital secured through quality education has been another major factor.

In sync with economic development, he pointed out, mandatory primary and secondary education was phased in.

“The strong will of the Korean people to educate also led to the establishment of high quality higher education infrastructure.”

Third, traits such as diligence, self-help, and cooperation contributed to the improvement in the ownership of the country’s development.

Especially, the concept of ‘Saemaul Undong’, which decisively contributed to poverty eradication and development of rural areas in the 1970s, created systematic cooperation between the central and local governments and motivated local governments and communities to foster leadership and ownership of poverty eradication.

These elements, he said, can be seen as the key characteristics of the Korean rural development model, which continues to be a good role model for developing countries today.

Lastly, securing efficiency and accountability through the establishment of democratic and efficient governance led to successful poverty eradication and democratization.

“I believe inclusive institutions, rule of law, and a healthy civil society played a significant role in progressing towards a democratic and open society that is respectful of justice and human rights, considerate of the vulnerable, and that emphasizes human dignity.”

Asked if North and South Korea will one day join into a single union – as East and West Germany did decades ago – Ambassador Hahn said this year marks the 70th anniversary of the division of Korea.

Just as South Korean President Park Geun-hye repeatedly called for bringing down the barriers dividing the Korean peninsula, “it is our sincere hope that conditions for a peaceful unification of the Korean peninsula are created in the near future, and that the Korean peninsula becomes a foothold to realize a ‘world free from nuclear weapons’,” he stated.

“Based on the Trust-building Process on the Korean Peninsula, we currently make efforts to lay the ground for unification by further developing inter-Korea relations, building confidence and easing tensions in the Korean peninsula,” he declared.

Edited by Kanya D’Almeida

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Opinion: How Will Wall Street Greet the Pope?http://www.ipsnews.net/2015/08/opinion-how-will-wall-street-greet-the-pope/?utm_source=rss&utm_medium=rss&utm_campaign=opinion-how-will-wall-street-greet-the-pope http://www.ipsnews.net/2015/08/opinion-how-will-wall-street-greet-the-pope/#comments Thu, 27 Aug 2015 09:14:17 +0000 Hazel Henderson http://www.ipsnews.net/?p=142152

Hazel Henderson, author of 'Mapping the Global Transition to the Solar Age' and other books, is President of Ethical Markets Media (USA and Brazil), Certified B Corporation

By Hazel Henderson
ST. AUGUSTINE, Florida, Aug 27 2015 (IPS)

Millions in the New York City area are excited about Pope Francis’ visit on Sep. 25 to address the U.N. General Assembly as worldwide consensus grows on the need to shift global investments from fossil fuels to clean, efficient, renewable energy in the UN’s Sustainable Development Goals (SDGs) scheduled to replace the expiring Millennium Development Goals (MDGs). 

Private investments worldwide in the clean energy transition now total 6.22 trillion dollars while successful U.S. students’ divestment networks have forced over 30 college endowments to divest.  Over 200 institutions have divested worldwide, including the U.S. cities of Minneapolis and Seattle, Oxford in the United Kingdom and Dunedin in New Zealand.

Hazel Henderson

Hazel Henderson

The Episcopal Church and the Church of England, in a faith-based consortium, are calling on Pope Francis to urge divestment for all religious and civic groups.  Islamic Climate Change Symposium leaders cited the Quran earlier this month in calling 1.6 billion Muslims to act in phasing out fossil fuels by 2050.

Backlash from traditional Wall Streeters has joined some U.S. Catholic organisations with millions still invested in fossil energy, fracking and oil sands.  The U.S. Conference of Catholic Bishops (USCCB) has guidelines against investing in abortion, contraception, pornography, tobacco and war but is silent on energy stocks.

Reuters reports that Catholic dioceses in Boston, Baltimore, Toledo and much of Minnesota in the United States have millions of dollars in oil and gas stocks, making up between 5-10 percent of their holdings.  It has been reported that Chicago’s Archbishop Blasé Cupich, appointed by Pope Francis, will re-examine over 100 million dollars in fossil fuel investments.

Wall Street is also re-examining its positions on fossil fuels.  A survey of asset managers in Institutional Investor, July 2015, found that 77 percent expected the carbon-divestiture movement to continue and gain momentum.  Yet, Exxon Mobil CEO Rex Tillerson has claimed that the models on climate change “aren’t that good” and has no plans to invest in renewable energy.

Recently, many large companies have been calling for and budgeting for carbon pricing – favoured by most economists.  Britain’s BG Group, BP, Italy’s ENI, Shell, Norway’s Statoil and France’s Total sent an open letter to world governments and the United Nations in June asking them to accelerate carbon pricing schemes.The U.S. Conference of Catholic Bishops (USCCB) has guidelines against investing in abortion, contraception, pornography, tobacco and war but is silent on energy stocks

The ethical investing movement now accounts for one-sixth of all holdings on Wall Street and the U.N. Principles of Responsible Investing counts signatory institutions with 59 trillion dollars in assets under management.

Hybrid approaches include venture philanthropy and “impact” investing, while a recent CFA Institute survey found almost three quarters of investment professionals use environmental, social and governance information in their investment decisions.

Against this backdrop, Timothy Smith, pioneer founder of the Interfaith Council on Corporate Responsibility (ICCR) and now Senior Vice-President of Walden Asset Management, says that the “visit of the Pope in the wake of his prophetic Encyclical on climate is a clarion call – to ramp up our efforts to combat climate change with concrete actions,” adding that “it’s not the Pope’s job to present a specific game plan for Americans.  That is our job.”

Through ICCR, religious investors have worked for two decades on these issues.  Firms like Walden, Ceres and others have joined up to combat climate change, promoting efficiency and renewable resources.  All this new activity within the climate debate provides the greatest challenge yet to business-as-usual capitalism.

Many financiers in the global casino still see themselves as “masters of the universe” because they control capital flows, most investments, pension funds, influence monetary policies, capture politicians and regulators, while funding friendly academics and think tanks.

The recent jitters of stock markets have again revealed their fragility and the increasing turbulence and volatility caused by computerized algorithms accounting for over half of all activity.  High-frequency trading (HFT), “flash crashes”, are continuing with little regulation.  Foundations are crumbling from these many new challenges as small investors flee. 

Crowdfunding, peer-to-peer lending, local and cryptocurrencies, credit unions and cooperative enterprises are flowering along with hybrid start-ups in the “shareconomy” – AirBnB, Uber, Lyft, Task Rabbit and the growth of farmers markets, swap sites for tools, clothes and second-hand exchanges.

Many reformers of capitalism try to change its culture, of short term gain and speculative trading.  The U.N. Inquiry into the Design of a Sustainable Financial System will release its report to the General Assembly on Sep. 25, with global research on current practices and potential reforms.

A promising new effort to mobilise U.S. public opinion is JUSTCapital, founded by luminaries Deepak Chopra, Arianna Huffington and hedge fund philanthropist Paul Tudor Jones.  CEO Martin Whittaker says: “We are addressing some of the core questions affecting capitalism and corporations in the 21st century.  We are applying policy, research and surveys to define ‘just business behaviour’ in the eye of the public, using this definition to evaluate and rank the performance of the largest publicly traded American companies.”

While such caring financiers are quietly exploring reforms, the biggest threat is the fragility of global market structures from automation, algorithms, HFT and artificial intelligence which financiers still believe they can control.

Yet these same computers can now run markets more efficiently than humans.  Matching and trading buy and sell orders in transparent computerised black boxes makes human traders redundant, as well as reducing insider trading, speculating, front-running, naked short-selling, fixing interest rates and today’s widespread greed and corruption.

Capitalism’s greatest challenge is its reliance on rollercoaster national money systems and currencies.  Central bankers and governments’ tools fail along with economic theories as social movements are now aware of money-printing and the politics of money creation and credit-allocation, revealed in all its favouritism and inequalities.

Edited by Phil Harris   

The views expressed in this article are those of the author and do not necessarily represent the views of, and should not be attributed to, IPS – Inter Press Service. 

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China’s Economy Has Sounded the Alert; Will Latin America Listen?http://www.ipsnews.net/2015/08/chinas-economy-has-sounded-the-alert-will-latin-america-listen/?utm_source=rss&utm_medium=rss&utm_campaign=chinas-economy-has-sounded-the-alert-will-latin-america-listen http://www.ipsnews.net/2015/08/chinas-economy-has-sounded-the-alert-will-latin-america-listen/#comments Fri, 21 Aug 2015 23:00:08 +0000 Diego Arguedas Ortiz http://www.ipsnews.net/?p=142093 Costa Rica’s National Stadium, donated by China as a gift for the reestablishment of bilateral ties in 2007, and built in 2009-2010 by a Chinese company with Chinese labour. Credit: Diego Arguedas Ortiz/IPS

Costa Rica’s National Stadium, donated by China as a gift for the reestablishment of bilateral ties in 2007, and built in 2009-2010 by a Chinese company with Chinese labour. Credit: Diego Arguedas Ortiz/IPS

By Diego Arguedas Ortiz
SAN JOSE, Aug 21 2015 (IPS)

For years, Latin America has exported its raw materials to China’s voracious factories, fuelling economic growth. But now that the Asian giant is putting a priority on domestic consumption over industrial production, how will this region react?

China’s dizzying growth gave a boost to the economies of Latin America, and in exchange, this region received manufactured products, credits, and heavy investment in infrastructure.

Given the slowdown in China’s growth, the countries of Latin America have two options: move toward a more value-added economy or lose relevance with an obsolete economic model inherited from the 20th century, said several experts consulted by IPS.

“Over the last five years, the relationship between Latin America and China has been dominated by Latin America sending China a few raw materials and China sending Latin America manufactured goods,” U.S. academic Rebecca Ray told IPS.“In simple terms, China’s rebalancing is aimed at reducing the relative importance of investment and exports in its economic growth, relying on household consumption playing a larger role.” -- Keiji Inoue and Sebastián Herreros

“But this may be about to change,” added the research fellow at the Boston University Global Economic Governance Initiative, where she coordinates the Working Group on Development and the Environment in the Americas’ China in Latin America project and coauthors the China-Latin America Economic Bulletin.

According to Ray, China’s leaders are shifting toward a development strategy with an emphasis on slower but steady growth, which prioritises internal consumption over factory production, thus opening up opportunities for importing manufactured goods from other countries.

The path toward that future was one of the central focuses of the Forum for East Asia-Latin America Cooperation (FEALAC) meeting in the Costa Rican capital from Tuesday, Aug. 18 to Friday, Aug. 21, which brought together foreign ministers and other senior officials from 36 countries under the theme “Two Regions, One Vision”.

The experts who spoke to IPS all agreed that given China’s slowdown, decision-makers in Latin America must take the initiative and propose economic alternatives based on more value added.

But the region has been slow to make the leap. Just five commodities – soy, iron, oil and unrefined and refined copper – account for 75 percent of exports to China, only a tiny share of which are manufactured goods.

But the other major economic flow between China and Latin America, investment in infrastructure, could paradoxically benefit from the slowdown and the shift in direction of the Chinese economy, the experts said.

The deceleration in the engine of the global economy since 2014, when China’s growth stood at 7.4 percent, the lowest level in 24 years, “May hurt Latin American economies that have become dependent on exporting those few commodities. In contrast, China’s infrastructure investments can help all industries do well,” Ray said.

Ponta da Madeira, a port in northeast Brazil where ships carrying iron ore set out, mainly for China. Credit: Mario Osava/IPS

Ponta da Madeira, a port in northeast Brazil where ships carrying iron ore set out, mainly for China. Credit: Mario Osava/IPS

Well-administered, she said, Chinese-financed projects could close the region’s historic gap in infrastructure and serve as a platform for the development of other industries that would benefit from investment in transport and energy, two main areas of interest for China.

“Hopefully, policy makers will make use of this opportunity to spur development in non-traditional industries,” Ray said.

Keiji Inoue and Sebastián Herreros, with the Economic Commission for Latin America and the Caribbean’s (ECLAC) International Trade and Integration Division, concurred.

“To the extent that these projects are aligned with the priorities of countries in the region, a greater Chinese presence could help gradually close Latin America’s infrastructure gap, thus strengthening regional integration and improving the region’s international competitiveness,” they stated in a joint analysis for IPS.

One of the aims of China’s investments in infrastructure in Latin America, they noted, is for that country’s to invest people’s savings.

But the direction taken by the growing links between Latin America and China do not leave much room for optimism.

Up to now, the region’s exports to China “Support fewer jobs, generate more net greenhouse gas emissions, and use more water than other LAC (Latin American and Caribbean) exports,” according to a study by GEGI.

China, meanwhile, has been promoting and financing controversial megaprojects in the region, like the “great inter-oceanic canal” in Nicaragua, to be built by the Chinese consortium Hong Kong Nicaragua Canal Development (HKDN-Group) at an estimated cost of 50 billion dollars, and the projected 5,000-km Transcontinental Railway, which would connect Brazil and Peru.

Chinese investment has also fuelled trade ties based on raw materials. According to ECLAC, between 2010 and 2013 nearly 90 percent of China’s investment in the region went into the extractive industry, mainly mining and fossil fuels.

Executives of the Chinese consortium HKDN-Group behind a big sign on Dec. 22, 2014 in the town of Brito Rivas on the Pacific ocean coast, at the ceremony for the formal start of construction of the Great Canal of Nicaragua, which will cut across the country. Credit: Mario Moncada/IPS

Executives of the Chinese consortium HKDN-Group behind a big banner on Dec. 22, 2014 in the town of Brito Rivas on the Pacific ocean coast, at the ceremony for the formal start of construction of the Great Canal of Nicaragua, which will cut across the country. Credit: Mario Moncada/IPS

“From that perspective, China’s high level of demand for raw materials at a global level has effectively consolidated and reinforced the specialisation of these processes, also known as ‘re-primarisation’ of the economy,” Enrique Dussel, director of the Centre for China-Mexico Studies of the National Autonomous University of Mexico, told IPS.

But Dussel said emphatically that the countries of Latin America will have to respond, given the signals. “It is Latin America and the Caribbean that have the responsibility – and need – to make a decision, not China,” he stated.

This refocusing of the economies of the region on the production of primary commodities for export happened when Latin America was seduced by last decade’s high commodities prices and prioritised exports of raw materials over exports of greater added value.

Raw materials represent more than 60 percent of the region’s exports – the highest proportion seen since the early 1990s, according to ECLAC studies – up from 44 percent at the start of the century.

Manufactured goods like machinery and electronic devices, meanwhile, make up 64 percent of China’s exports to this region, and are less sensitive to price swings.

Between 2000 and 2014, imports from China rose from two to 14 percent of the regional total.

Dussel said China’s growth highlighted the serious problems faced by the region’s exports. In his view, the problems do not necessarily lie in the predominance of raw materials, but in the fact that these industries have “very little value added and technology.”

ECLAC’s Inoue and Herreros say the shift in focus of China’s development presents an opportunity.

They said that “in simple terms, China’s rebalancing is aimed at reducing the relative importance of investment and exports in its economic growth, relying on household consumption playing a larger role.”

“To the extent that this process has an effect, it should favour the diversification of Latin America’s exports to China,” they said.

They expect sectors like agribusiness and processed food to become more important in the region, although they warn that it could take years for the effects to be felt, and say that in order for that to happen, decision-makers would have to take ambitious steps toward consolidating the region as a trade bloc.

“We must also make more decisive progress towards a truly integrated regional market,” Inoue and Herreros wrote. “That would make Latin America more attractive and increase its bargaining power vis-à-vis China, the rest of Asia and other big global economic actors.”

Edited by Estrella Gutiérrez/Translated by Stephanie Wildes

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UK, France Agree to New Measures to Tackle Migration Crisishttp://www.ipsnews.net/2015/08/uk-france-agree-to-new-measures-to-tackle-migration-crisis/?utm_source=rss&utm_medium=rss&utm_campaign=uk-france-agree-to-new-measures-to-tackle-migration-crisis http://www.ipsnews.net/2015/08/uk-france-agree-to-new-measures-to-tackle-migration-crisis/#comments Fri, 21 Aug 2015 20:22:13 +0000 Tharanga Yakupitiyage http://www.ipsnews.net/?p=142087 By Tharanga Yakupitiyage
UNITED NATIONS, Aug 21 2015 (IPS)

In response to the rapidly growing numbers of refugees and asylum seekers flooding European shores, France and the UK have announced new measures to crack down on English Channel crossings.

The deal consists of a new joint command and control centre in the northern French port city of Calais that aims to “relentlessly pursue and disrupt the callous criminal gangs that facilitate and profit from the smuggling of vulnerable people, often with total disregard for their lives,” Britain’s Home Secretary Theresa May stated during a press conference Thursday.

Calais has become the focal point of a growing migration crisis, largely fueled by wars, hunger and political repression driving hundreds of thousands of desperate civilians out of countries like Syria, Libya, Sudan and other states across the Middle East and Africa.

An estimated 3,000 refugees live in makeshift tents in French port city.

The agreement also includes tough security measures such as increased police numbers, fencing, and CCTV to secure the Channel’s tunnel. The UK government has also pledged to establish a fast-track asylum process and to fund return flights for migrants. Britain plans to contribute 11.2 million dollars to the effort.

“Our joint approach rests on securing the border, identifying and safeguarding the vulnerable, preserving access to asylum for those who need it and giving no quarter to those who have no right to be here or who break the law,” said May and French Interior Minister Bernard Cazeneuve in the 6-page agreement.

However, Calais is only one of many regions seeing increased migration.

The European Union’s border agency Frontex declared on Aug. 18 that in the month of July alone, some 107,500 migrants crossed into Europe, more than triple the figure in July 2014, representing the first time since the agency began keeping records in 2008 that new arrivals surpassed the 100,000 mark in a single month.

What will the new agreement mean for Eritreans?

Many of the migrants that make the perilous crossing into Europe are from Eritrea. Each month, approximately 5,000 Eritreans leave the small country of six million people in the Horn of Africa, reported a U.N. commission of inquiry on June 2015.

In a migration pattern report, Frontex found that Eritrean refugees were the second largest group in 2014 to have migrated to Europe, after Syrians.

Eritreans flee to escape gross human rights violations committed by the Eritrean government.

In the 2015 inquiry report, the U.N. commission found cases of extrajudicial killing, arbitrary arrest and detention, forced labour, enforced disappearance, as well as restrictions on speech, religious expression, and movement.

The commission also detailed the Eritrean government’s policy of military conscription, which forces men and women into national service indefinitely. This has prompted thousands of young Eritreans to flee the country.

Though the U.N. commission recognised that military conscription of citizens is a “prerogative of sovereign States,” it stated that it still involves the unlawful denial of freedoms and rights.

The commission concluded that the Eritrean government’s human rights restrictions could constitute crimes against humanity.

As a result, Eritreans migrate to Europe via neighboring countries of Sudan and Egypt. The U.N. Special Rapporteur on Human Rights in Eritrea, Sheila Keetharuth, expressed concern over the human rights abuses in Eritrea to the General Assembly in 2013, stating, “The fact that they have crossed borders is indicative of the scale of despair these children are facing at home.”

The journey is not without its risks. Human Rights Watch has reported the brutal trafficking and torture of Eritreans for ransom money. Refugees also face the threat of treacherous boat accidents such as the 2013 Lampedusa shipwreck that killed over 350 Eritreans.

But many are willing to face such dangers. While speaking to the Guardian, an Eritrean refugee discussed the decision to migrate to Europe, stating: “I have two choices – one is to die, the other is to live. If I die at sea, it won’t be a problem – at least I won’t be tortured.”

Such sentiments are heard often among refugees and asylum seekers who are increasingly risking hazardous journeys on makeshift vessels to escape brutal, degrading or even deadly conditions in their home countries.

In response to the situation in Calais, Amnesty International UK’s Refugee Programme Director Steve Symonds said that May must drop “tough” rhetoric on refugees and discuss “how the UK can save lives and protect the vulnerable.”

According to the U.N. Refugee Agency, over 3,000 asylum seekers entering the UK in the first three months of 2015 were Eritrean, constituting the majority of applicants.

Edited by Kanya D’Almeida

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Opinion: No Aid, No Tax, No Developmenthttp://www.ipsnews.net/2015/08/opinion-no-aid-no-tax-no-development/?utm_source=rss&utm_medium=rss&utm_campaign=opinion-no-aid-no-tax-no-development http://www.ipsnews.net/2015/08/opinion-no-aid-no-tax-no-development/#comments Wed, 05 Aug 2015 22:49:56 +0000 Jomo Kwame Sundaram http://www.ipsnews.net/?p=141881 Jomo Kwame Sundaram. Credit: FAO

Jomo Kwame Sundaram. Credit: FAO

By Jomo Kwame Sundaram
ROME, Aug 5 2015 (IPS)

The Addis Ababa Action Agenda is widely seen as a major disappointment for developing countries as well as others hoping for adequate means of implementation to realise national development ambitions and the Sustainable Development Goals (SDGs).

It has become clear that the South, including the least developed countries, should not expect any serious progress to the almost half century old commitment to transfer 0.7 percent of developed countries’ economic output to developing countries. But to add insult to injury, developing countries cannot expect to participate meaningfully in inter-governmental discussions to enhance overall as well as national tax capacities.In the vast majority of countries in sub-Saharan Africa and Latin America, the tax to GDP ratio has actually stagnated or declined as tariffs and export duties, which accounted for the largest share of tax revenue, declined with trade liberalisation.

While OECD countries agree that taxation is the only viable strategy for developing countries to exit foreign aid dependency in the long run, they have refused to accede to the latter’s desire for a full-fledged inter-governmental body for international tax cooperation under United Nations auspices.

The ability to pursue development policies depends crucially on available fiscal space, which relies mostly on domestic revenues, especially taxes. However, tax revenues in most low- and lower middle-income developing countries are low.

The average tax-GDP ratios in low-income and lower-middle income countries are around 15 and 19 per cent respectively, compared to over 30 percent in high income countries.

Low- and lower-middle-income countries should take steps to increase their revenues; but the main approach in recent decades has been to increase tax rates only if unavoidable. It was presumed that lower rates would ensure better compliance with tax laws, and thus raise revenue.

The prevailing tax wisdom also favoured broadening the tax base, even when taxation capacities are modest. Thus, indirect taxation has tended to increase while direct taxation of corporations and individuals has tended to decline. The latter was supposed to be good for investment and growth although the empirical support for this presumption is dubious.

In the vast majority of countries in sub-Saharan Africa and Latin America, the tax to GDP ratio has actually stagnated or declined as tariffs and export duties, which accounted for the largest share of tax revenue, declined with trade liberalization. Unfortunately, other taxes have not grown to compensate for the lower trade taxes.

There is an urgent need to reverse this trend, with greater commitment to revenue generation in order to improve social protection, create employment and otherwise contribute to sustained economic recovery.

With their different economic circumstances, it does not make sense for developing countries to simply try to emulate developed economies in trying to generate revenue. Even among developing countries, no one size fits all.

And certainly not for all time, as tax systems must evolve with changing economic circumstances. A key question is: which taxes are most likely to meet the requirements of implementability, buoyancy and stability?

Domestic Taxes: Direct or Indirect?

The revenue to GDP ratio can rise in the following ways: the domestic tax base is widened; tax avoidance and evasion are reduced; and new sources of international taxation are found.

There is no reason to be overly pessimistic about direct taxation as tax reform has significantly improved the contribution of direct taxes to overall revenue in many countries. It is certainly possible to enhance tax revenues by increasing the share of direct taxation of the wealthy through more progressive income taxes in developing countries.

However, there should also be a greater effort to ensure better compliance with, and higher collection of existing taxes.

Limiting the discretionary authority of tax officials could also help improve compliance and reduce evasion. Computerisation of tax administration can help limit corruption, as it makes it harder to tamper with records. But government computerisation alone cannot ensure effective introduction of the much-touted value-added tax (VAT), an indirect tax largely responsible for facilitating the shift from direct to indirect taxation.

Improved tax administration can increase the share of personal income taxes in total tax revenue. Expansion of the scope for tax deduction at source has been very effective in taxing those otherwise hard to reach.

Every individual who is a house owner, vehicle owner, club member, credit card holder, passport, driving licence or identity card holder and telephone subscriber can be required to file a tax return.

Excise taxes are another important source of revenue in developing countries as they have a buoyant base and can be administered at low cost. They are typically levied on products such as alcohol, tobacco, petroleum, vehicles and spare parts.

From a revenue perspective, they are convenient, involving few producers, large sales volumes, relatively inelastic demand and easy observability.

Excises may be levied on quantities leaving the factory or arriving at ports, thus simplifying measurement and collection, ensuring coverage, limiting evasion and improving monitoring. Excise taxes currently amount to less than 2 per cent of GDP in low-income countries, compared to about 3 per cent in high-income countries.

Globalisation and Tax Evasion

Revenue losses due to globalisation need to be addressed. There are three main reasons for revenue losses: first, capital movements increase opportunities for tax evasion because of the limited capacity that any tax authority has to check the overseas incomes of its residents; evasion is easier as some governments and financial institutions systematically conceal relevant information.

Where dividends, interest, royalties, and management fees are not taxed in the country in which they are paid, they more easily escape notice in the countries where the beneficiaries live. There have been large non-resident aliens’ bank deposits in some countries like the U.S. that imposes no taxes on interest from such deposits.

Second, avoidance (not evasion) may increase, given international differences in tax rules and rates, because of the choice of tax regime that international-tax-treatment of enterprise income commonly offers. This is more likely for taxation of profits from corporations’ international operations.

Transfer pricing for goods, services and resources – moving among branches or subsidiaries of a company – provides opportunities for shifting income to minimise tax liability.

Third, international competition for inward foreign direct investment has lead governments to reduce tax rates and increase concessions to foreign investors. The tax rates that governments can impose are thus constrained by international competition.

Hence, they are reluctant to raise rates or to tax dividend and interest income for fear of capital flight although it is well known that direct tax concessions have little effect in diverting international investment, let alone in attracting such flows. Hence, such tax concessions constitute an unnecessary loss of revenue.

Not surprisingly, income tax rates, both on corporations and on individuals, have fallen sharply since the 1980s. Beggar-thy-neighbour policies have led to losses of revenue for many developing countries in a larger race-to-the-bottom also involving labour and environmental standards and conditions, which also undermines the possibility of balanced, inclusive and sustainable development.

Finance ministries and tax authorities in developing countries need to cooperate among themselves and with their counterparts in the OECD economies to learn from one another and to close existing loopholes in their mutual interest. With the huge and growing size of public debts as well as the real and imagined fiscal constraints to sustained global economic recovery, such cooperation is more urgent than ever.

Edited by Kitty Stapp

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Opinion: The Sad Historical Consequences of the Greek Bailouthttp://www.ipsnews.net/2015/08/opinion-the-sad-historical-consequences-of-the-greek-bailout/?utm_source=rss&utm_medium=rss&utm_campaign=opinion-the-sad-historical-consequences-of-the-greek-bailout http://www.ipsnews.net/2015/08/opinion-the-sad-historical-consequences-of-the-greek-bailout/#comments Sat, 01 Aug 2015 16:59:06 +0000 Roberto Savio http://www.ipsnews.net/?p=141832

In this column, Roberto Savio, founder and president emeritus of the Inter Press Service (IPS) news agency and publisher of Other News, writes that what lies behind the recent convoluted negotiations over Greek debt is nothing other than a dramatic demonstration that Europe is no longer about solidarity, which was the original European dream, but all about fiscal and monetary considerations.

By Roberto Savio
SAN SALVADOR, Aug 1 2015 (IPS)

In recommendations to German Chancellor Angela Merkel at the end of July, the German Council of Economic Experts outlined how a weak member country could leave the Eurozone and called for strengthening the European monetary union.

German Finance Minister Wolfgang Schäuble wants Greece out because he does not believe that it will ever be able to refund the loans it has received so far, and because he thinks it is question of principle to be strict. In an interview with Der Spiegel a few days after the historical date of Jul. 13, at the end of negotiations on Greece, he said: “My grandmother used to say: benevolence comes before dissoluteness.”

Roberto Savio

Roberto Savio

Explaining the recommendations of the Council of Economic Experts, however, its chairman Christoph M. Schmidt expressed another opinion. “To ensure the cohesion of monetary union, we have to recognise that voters in creditor countries are not prepared to finance debtor countries permanently … A permanently uncooperative member state should not be able to threaten the existence of the euro.”

This is the best illustration of Germany’s Europe. Any country which does not fit into the German scenario will have to quit. Europe is no longer a question of solidarity, it is all about fiscal and monetary considerations.

Germany now says that federalism has exceptions – whenever a member of the Eurozone is perceived to be challenging the rules of the monetary union, it will be subject to complete annihilation of its state sovereignty and national democracy. This is the kind of federalism that Germany has now proclaimed.

This German position on its vision of Europe, where political and ideal considerations are no longer the basis of the European project, has triggered a strong response from a normally obedient France.“We should all realise that the idea of Europe as a political project, based on solidarity and mutual support, is on the wane. Monetary union is no longer just a step towards a democratic political union”

President François Hollande, who appears to have suddenly woken up, has come out with a call to reinforce European integration through the establishment of a “Eurozone government”, which run in the opposite direction from that of Berlin.

Germany will of course go ahead and pursue its own course, but the Paris-Berlin axis which was conceived as the fulcrum of European integration has now been seriously weakened after Germany’s imposed agreement on Greece on Jul. 13. So we have now a major realignment.

France has been the country which has always blocked any substantial progress on European integration, by continually voting against any radical step towards integration in order to preserve as much of its national sovereignty as possible.

Now it is Germany which is intent on changing the course of integration, from a political project to a fixed exchange monetary system based on creditor countries – a system in which some democracies are more equal than others.

Schäuble has been reported as expressing concern over the European Commission’s increased political role, interfering in political issues for which it has no mandate. And it is a stark fact that the Jul. 13 Brussels agreement has sought to remove politics and discretion from the functioning of the monetary union, an idea that has long been very dear to the French, and now are the French who want more European integration as protection from a German Europe.

We should all realise that the idea of Europe as a political project, based on solidarity and mutual support, is on the wane.

Monetary union is no longer just a step towards a democratic political union, as Helmut Kohl and François Mitterand sought at the reunification of Germany, and the creation of the Euro.

We are, in fact, going back to a more toxic version of the old exchange-rate mechanism of the 1990s that left countries trapped in a mechanism which worked primarily for Germany, and which led to the exit of the British pound and the temporary exit of the Italian lira.

But the euro, as Nobel laureate in economics Paul Krugman says, “has turned into a Roach Motel, a trap that’s hard to escape.” Once you’re in, you cannot get out, and you have to accept the diktat of the creditors.

Another Nobel laureate in economics, Joseph Stigliz, who was Chief Economist of the World Bank, says that the current European policy of austerity at any cost, is like going back to a “19th century debtors’ prison. Just as imprisoned debtors could not make the income to repay, the deepening depression in Greece will make it less and less able to repay.”

Of course, what is never said openly (except by Stigliz) is that in the Greek bailout one central reason for the extremism of the new package of conditions was to teach a lessons to a radical left-wing party, Syriza, and to the Greek people who had had the audacity to reject the calls from European leaders to vote against that party.

It is not by chance that countries like Poland, which were asking to be admitted to the Eurozone, have withdrawn their applications.  The euro has become a rallying political issue, with parties from all over Europe asking to withdraw. It has become the first line of action for those who oppose European integration.

Until now, the answer of European governments has been that withdrawal is impossible under the European constitution. But now that the German Council of Economic Experts has come out with a concrete proposal on how to do that, that line of defence is crumbling.

According to many analysts, Angela Merkel is playing with fire. Germany cannot remain a credible leader of a coalition of Northern and Eastern European countries and ignore the realities and needs of Southern Europe. This is unsustainable, even in the medium term.

Meanwhile, the world goes on. Within seven years India will have overtaken China as the most populous country in the world, while within a few decades Nigeria will have a larger population than the United States.

And Europe? Europe will have become the continent with most old people and lower productivity, and will have to face its four horses of the apocalypse:

  • a solution to relations with Russia;
  • common agreement on how to deal with the dramatic flow of immigrants, when countries are not even able to relocate 40,000 people in a region of 450 million;
  • a real policy on the explosive Middle East and terrorism; and soon
  • the request of United Kingdom for a new agreement on the European Union, or else it will exit Europe.

We can safely bet that those negotiations, which will be based purely on economic issues, will be the kiss of death for the original European dream. (END/COLUMNIST SERVICE)

Edited by Phil Harris    

The views expressed in this article are those of the author and do not necessarily represent the views of, and should not be attributed to, IPS – Inter Press Service. 

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Even the Rich Have Not Harnessed Full Potential of Digital Economyhttp://www.ipsnews.net/2015/07/even-the-rich-have-not-harnessed-full-potential-of-digital-economy/?utm_source=rss&utm_medium=rss&utm_campaign=even-the-rich-have-not-harnessed-full-potential-of-digital-economy http://www.ipsnews.net/2015/07/even-the-rich-have-not-harnessed-full-potential-of-digital-economy/#comments Thu, 30 Jul 2015 23:04:51 +0000 Jaya Ramachandran http://www.ipsnews.net/?p=141808 The ICT sector employed more than 14 million people in OECD countries in 2013, almost 3 percent of jobs in the 34-country bloc. Credit: Kristin Palitza/IPS

The ICT sector employed more than 14 million people in OECD countries in 2013, almost 3 percent of jobs in the 34-country bloc. Credit: Kristin Palitza/IPS

By Jaya Ramachandran
PARIS, Jul 30 2015 (IPS)

The digital economy permeates countless aspects of the world economy, impacting sectors as varied as banking, retail, energy, transportation, education, publishing, media or health. But the full potential of the digital economy has yet to be realised even in the world’s most advanced and emerging countries, says a new report.

On the one hand, Information and Communication Technologies (ICT) are transforming the ways social interactions and personal relationships are conducted, with fixed, mobile and broadcast networks converging, and devices and objects increasingly connected to form the Internet of things.

On the other hand, none of the 34 countries of the Organisation for Economic Co-operation and Development (OECD) has a national strategy on protecting online privacy or funding research in this area, which tends to be viewed as a matter for law enforcement authorities to handle, says the report.

The OECD Digital Economy Outlook 2015, which covers areas from broadband penetration and industry consolidation to network neutrality and cloud computing in the OECD and its partner countries like Brazil, Colombia and Egypt, also stresses the need to do more to offer information and communication technology (ICT) skills training to help people transition to new types of digital jobs.

In a 2014 OECD survey, 26 out of 29 countries considered building broadband infrastructure as their top priority and 19 of 28 countries put digital privacy and security second and third, observes the report.

Asked about the future, countries placed skills development as their top objective, followed by public service improvements and digital content creation.

Other surveys cited in the report suggest that two-thirds of people are more concerned about their online privacy than a year ago and only a third believe private information on the Internet is secure. More than half fear monitoring by government agencies, adds the report.

Other important findings in the Digital Economy Outlook are:

Of 34 countries surveyed, 27 have a national digital strategy. Many were established or updated in 2013 or 2014. Most focus on telecoms infrastructure, broadband capacity and speed. Few cover international issues such as internet governance.

Seven of the OECD’s 34 member countries count more than one mobile broadband subscription per person. Around three-quarters of smartphone use in OECD countries occurs on private Wi-Fi access via fixed networks.

All OECD countries have at least three mobile operators and most have four. Prices for mobile services fell markedly between 2012 and 2014 with the biggest declines in Italy, New Zealand and Turkey. Prices rose in Austria and Greece, however.

The ICT sector employed more than 14 million people in OECD countries in 2013, almost 3 percent of jobs in the 34-country bloc. ICT employment ranges from above 4 percent of total employment in Ireland and Korea to below 2 percent in Greece, Portugal and Mexico.

ICT venture capital is on the rise again and is now back at its highest level in the U.S. since the dot-com bubble.

China is the leading gross exporter of ICT goods and services, but the U.S. is the top exporter when trade is calculated in value-added terms, due in part to the high presence of U.S. ICT services embodied in final products. Embodied ICT services also contributed to higher shares for India and the UK in value-added terms.

Korea is the most specialised of OECD and partner countries in computer, electronic and optical products; Luxembourg is strongest in telecoms; while Ireland, Sweden and the UK are most specialised in IT and other information services.

Edited by Kitty Stapp

 

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Faith Leaders Issue Global “Call to Conscience” on Climatehttp://www.ipsnews.net/2015/07/faith-leaders-issue-global-call-to-conscience-on-climate/?utm_source=rss&utm_medium=rss&utm_campaign=faith-leaders-issue-global-call-to-conscience-on-climate http://www.ipsnews.net/2015/07/faith-leaders-issue-global-call-to-conscience-on-climate/#comments Fri, 24 Jul 2015 08:36:34 +0000 A. D. McKenzie http://www.ipsnews.net/?p=141742 Patricia Gualinga (right), a representative of the Serayaku community in the Amazonic part of Ecuador, told the Summit of Conscience for the Climate in Paris: “We’re here because we want the voices of indigenous people to be heard”. Credit: A.D. McKenzie/IPS

Patricia Gualinga (right), a representative of the Serayaku community in the Amazonic part of Ecuador, told the Summit of Conscience for the Climate in Paris: “We’re here because we want the voices of indigenous people to be heard”. Credit: A.D. McKenzie/IPS

By A. D. McKenzie
PARIS, Jul 24 2015 (IPS)

“We received a garden as our home, and we must not turn it into a wilderness for our children.”

These words by Cardinal Peter Turkson summed up the appeal launched by dozens of religious leaders and “moral” thinkers at the Summit of Conscience for the Climate, a one-day gathering in Paris earlier this week aimed at mobilising action ahead of the next United Nations climate change conference (COP 21) scheduled to take place in the French capital in just over four months.

“The single biggest obstacle to changing course [over climate change] is our minds and hearts” – Cardinal Peter Turkson, an adviser for Pope Francis’ encyclical on climate change
“Our prayerful wish is that governments will be as committed at COP 21 as we are here,” said Turkson, president of the Pontifical Council for Justice and Peace and one of the advisers for Pope Francis’ encyclical on climate change, released in June.

With the theme of “Why Do I Care”, the Summit of Conscience drew participants from around the globe, representing the world’s major religions – Buddhism, Christianity, Hinduism, Islam and Judaism – and other faiths and movements.

Government representatives also joined activists from environmental groups, indigenous communities and the arts sector to call for an end to the world’s “throw-away consumerist culture” and the “disastrous indifference to the environment”, as Turkson put it.

“The single biggest obstacle to changing course is our minds and hearts,” he said, after pointing out that “climate change is being borne by those who have contributed least to it”.

The summit was used to highlight an international “Call to Conscience for the climate” and to launch a new organisation called ‘Green Faith in Action’, aimed at raising awareness about environmental and sustainable development issues among adherents of different religions.

Participants drew up a letter that will be delivered to the 195 state parties at COP 21, signed by summit speakers including Prince Albert II of Monaco; Sheikh Khaled Bentounès, Sufi Master of the Alawiya in Algeria; Rajwant Singh, director of an international network called Eco Sikh; and Nigel Savage, president of the Jewish environmental organisation Hazon.

Voicing the concerns of religious groups and faith leaders, the letter is equally a reflection of the challenges faced by indigenous communities, who made their voices heard in Paris, describing attacks on their territories and way of life by the petroleum industry, for example.

“We’re not some kind of folkloric tradition, we’re living beings,” said Valdelice Veron, spokesperson of the Guarani-Kaoiwa people of Brazil, who delivered her speech in traditional dress.

She and other indigenous delegates spoke of their culture also being decimated by the practice of mono-cropping, where large soybean plantations are causing ecological damage.

“We’re here because we want the voices of indigenous people to be heard,” Patricia Gualinga, a representative of the Serayaku community in the Amazonic part of Ecuador, told IPS.

“We share all the concerns about the climate and we too are being affected in many different ways,” she said.

Ségolène Royal, the French Minister for Ecology, Sustainable Development and Energy who spoke near the end of the summit, said the participants’ appeal was “first and foremost, an appeal for action”.

“Climate change should be considered as an opportunity – for business, technology, [and other sectors],” Royal said. “We need to pave the way together.”

Three participants at the Summit of Conscience for the Climate stand  together for a photo. Credit: A.D. McKenzie/IPS

Three participants at the Summit of Conscience for the Climate stand together for a photo. Credit: A.D. McKenzie/IPS

For Samantha Smith, leader of the “Global Climate and Energy Initiative” at green group WWF, the Summit of Conscience reflected a “really big and unprecedented social mobilisation” of civil society, which she hopes will continue beyond COP 21.

“When I read the latest climate science report, it keeps me awake at night. But when I see the mobilisation and the strength of the conviction, I’m optimistic,” Smith said in an interview on the sidelines of the summit.

“Now is not the time to focus on where we disagree. Now is the time to work together,” she added.

But not everyone is invited to the same table – the alliances do not necessarily extend to companies in the fossil fuel industry, said Smith.

“When I say that we need to be united, it doesn’t mean that we need to be united with the fossil fuel industry,” Smith told IPS. “That is an industry which has contributed vastly to the problem and so far is not showing a very substantial contribution to the solution.”

The business sector, including oil producers, held their own conference in May, titled the Business & Climate Summit. At that event, which also took place in Paris, around 2,000 representatives of some of the world’s largest companies declared that they wanted “a global climate deal that achieves net zero emissions” and that they wished to see this achieved at COP 21.

Then at the beginning of July, hundreds of local authority representatives, civil society members and other “non-state actors” took part in the World Summit on Climate & Territories in Lyon, France.

There, participants pledged to take on the “challenge” of keeping global temperatures below a 2 degree Celsius increase “by aligning their daily local and regional actions with the decarbonisation of the world economy scenario”.

The scientific community also held their meeting on climate this month at the Paris headquarters of the U.N. Educational, Scientific and Cultural Organisation (UNESCO).

At most of these conferences, French president François Hollande has been a keynote speaker, reiterating his message that the stakes are high and that governments need to show commitment to reach a legally binding, global accord at COP 21, which will take place from Nov. 30 to Dec. 11.

“We need everyone’s commitment to reach this accord,” Hollande said at the Summit of Conscience. “We need the heads of state and government … local actors, businesses. But we also need the citizens of the world.”

Even as he delivered his speech, another conference on the climate was taking place – at the Vatican, with the mayors of about 60 cities meeting with Pope Francis to formulate a pledge on combating greenhouse gas emissions.

Mayors from around the world will meet again, in Paris during COP 21, through an initiative organised by the Mayor of Paris Anne Hidalgo, and by Michael Bloomberg, U.N. Special Envoy for Cities and Climate Change and former mayor of New York. Billed as the Climate Summit for Local Leaders, this meeting will be held Dec. 4 and should bring together 1,000 mayors.

A question that some observers have been asking, however, is how does one cut through all the grandiose and repetitive speeches at these incessant “summits” and get to real, sustainable action?

Nicolas Hulot, the “Special Envoy of the French President for the Protection of the Planet” and the main organiser of the Summit of Conscience, said he has faced similar queries.

“I’ve been asked ‘what is this going to be useful for’,” he said. “But a light has emerged today, and I hope it will light us up.”

Hulot sought to encourage indigenous groups and others who had travelled from South America, Africa and other regions to Paris for the event, promising them continued support.

“Don’t you doubt the fact that we’re all involved, and we’ll never give in to despair,” he said. “We want to make sure that everybody hears your message because we heard it.”

Edited by Phil Harris

The writer can be followed on Twitter: @mckenzie_ale

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Opinion: A BRICS Bank to Challenge the Bretton Woods System?http://www.ipsnews.net/2015/07/opinion-a-brics-bank-to-challenge-the-bretton-woods-system/?utm_source=rss&utm_medium=rss&utm_campaign=opinion-a-brics-bank-to-challenge-the-bretton-woods-system http://www.ipsnews.net/2015/07/opinion-a-brics-bank-to-challenge-the-bretton-woods-system/#comments Wed, 22 Jul 2015 08:12:45 +0000 Daya Thussu http://www.ipsnews.net/?p=141689

Daya Thussu is Professor of International Communication at the University of Westminster in London.

By Daya Thussu
LONDON, Jul 22 2015 (IPS)

The formal opening of the BRICS Bank in Shanghai on Jul. 21 following the seventh summit of the world’s five leading emerging economies held recently in the Russian city of Ufa, demonstrates the speed with which an alternative global financial architecture is emerging.

The idea of a development-oriented international bank was first floated by India at the 2012 BRICS summit in New Delhi but it is China’s financial muscle which has turned this idea into a reality.

Daya Thussu

Daya Thussu

The New Development Bank (NDB), as it is formally called, is to use its 50 billion dollar initial capital to fund infrastructure and developmental projects within the five BRICS nations – Brazil, Russia, India, China and South Africa – though it is also likely to support developmental projects in other countries.

According to the 43-page Ufa Declaration, “the NDB shall serve as a powerful instrument for financing infrastructure investment and sustainable development projects in the BRICS and other developing countries and emerging market economies and for enhancing economic cooperation between our countries.”

The NDB is led by Kundapur Vaman Kamath, formerly of Infosys, India’s IT giant, and of ICICI Bank, India’s largest private sector bank. A respected banker, Kamath reportedly said during the launch that “our objective is not to challenge the existing system as it is but to improve and complement the system in our own way.”

The launch of the NDB marks the first tangible institution developed by the BRICS group – set up in 2006 as a major non-Western bloc – whose leaders have been meeting annually since 2009. BRICS countries together constitute 44 percent of the world population, contributing 40 percent to global GDP and 18 percent to world trade.“Our objective is not to challenge the existing system as it is but to improve and complement the system in our own way” – Kundapur Vaman Kamath, head of the New Development Bank (NDB)

In keeping with the summit’s theme of ‘BRICS partnership: A powerful factor for global development’, the setting up of a developmental bank was an important outcome, hailed as a “milestone blueprint for cooperation” by a commentator in The China Daily.

The Chinese imprint on the NDB is unmistakable. The Ufa Declaration is clear about the close connection between the NDB and the newly-created Asian Infrastructure Investment Bank (AIIB), also largely funded by China. It welcomed the proposal for the New Development Bank to “cooperate closely with existing and new financing mechanisms including the Asian Infrastructure Investment Bank.” China is also keen to set up a regional centre of the NDB in South Africa.

If economic cooperation remained the central plank of the Ufa summit, there is also a clear geopolitical agenda.

The Global Times, China’s more nationalistic international voice, pointed out that the establishment of the NDB and the AIIB will “break the monopoly position of the International Money Fund (IMF) and the World Bank (WB) and motivate [them] to function more normatively, democratically, and efficiently, in order to promote reform of the international financial system as well as democratisation of international relations.”

The reality of global finance is such that any alternative financial institution has to function in a system that continues to be shaped by the West and its formidable domination of global financial markets, information networks and intellectual leadership.

However, China, with its nearly four trillion dollars in foreign currency reserves, is well-placed to attempt this, in conjunction with the other BRICS countries. China today is the largest exporting nation in the world, and is constantly looking for new avenues for expanding and consolidating its trade relations across the globe.

China is also central to the establishment of the Shanghai Cooperation Organisation (SCO), a Eurasian political, economic and security grouping whose annual meeting coincided with the seventh BRICS summit. Founded in 2001 and comprising China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan, the SCO has agreed to admit India and Pakistan as full members.

Though the BRICS summit and the SCO meeting went largely unnoticed by the international media – preoccupied as they were with the Iranian nuclear negotiations and the ongoing Greek economic crisis – the economic and geopolitical implications of the two meetings are likely to continue for some time to come.

For host Russia, which also convened the first BRICS summit in 2009, the Ufa meeting was held against the background of Western sanctions, continuing conflict in Ukraine and expulsion from the G8. Partly as a reaction to this, camaraderie between Moscow and Beijing is noticeable – having signed a 30-year oil and gas deal worth 400 billion dollars in 2014.

Beijing and Moscow see economic convergence in trade and financial activities, for example, between China’s Silk Road Economic Belt initiative for Central Asia and Russia’s recent endeavours to strengthen the Eurasian Economic Union. The expansion of the SCO should be seen against this backdrop. Moscow has also proposed setting up SCO TV to broadcast economic and financial information and commentary on activities in some of the world’s fastest growing economies.

Whatever the outcome, it is clear that a new international developmental agenda is being created, backed by powerful nations, and to the virtual exclusion of the West.

China is the driving force behind this. Despite its one-party system which limits political pluralism and thwarts debate, China has been able to transform itself from a largely agricultural self-sufficient society to the world’s largest consumer market, without any major social or economic upheavals.

China’s success story has many admirers, especially in other developing countries, prompting talk of replacing the ‘Washington consensus’ with what has been described as the ‘Beijing consensus’. The BRICS bank, it would seem, is a small step in that direction.

Edited by Phil Harris    

The views expressed in this article are those of the author and do not necessarily represent the views of, and should not be attributed to, IPS – Inter Press Service. 

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Calls Mount for “Bold” Climate Deal in Parishttp://www.ipsnews.net/2015/07/calls-mount-for-bold-climate-deal-in-paris/?utm_source=rss&utm_medium=rss&utm_campaign=calls-mount-for-bold-climate-deal-in-paris http://www.ipsnews.net/2015/07/calls-mount-for-bold-climate-deal-in-paris/#comments Tue, 21 Jul 2015 18:47:15 +0000 Kitty Stapp http://www.ipsnews.net/?p=141684 By Kitty Stapp
NEW YORK, Jul 21 2015 (IPS)

A diverse coalition of 24 leading British scientific institutions has issued a communique urging strong and immediate government action at the U.N. climate change conference set for Paris in December.

Nicholas Stern, a former chief economist of the World Bank and president of the British Academy, has called for a strong international climate agreement in Paris this year. Credit: public domain

Nicholas Stern, a former chief economist of the World Bank and president of the British Academy, has called for a strong international climate agreement in Paris this year. Credit: public domain

The statement, issued Tuesday, points to overwhelming evidence that if humanity is to have a reasonable chance of limiting global warming to two degrees C, the world economy must transition to zero-carbon by early in the second half of the century.

Climate economist Lord Nicholas Stern, president of the British Academy, one of the signers, said it “demonstrates the strength of the agreement among the UK’s research institutions about the risks created by rising levels of greenhouse gases in the atmosphere.

“Our research community has for many decades been at the forefront of efforts to expand our understanding and knowledge of the causes and potential consequences of climate change,” he said.

“While some of our politicians and newspapers continue to embrace irrational and reckless denial of the risks of climate change, the UK’s leading research institutions are united in recognising the unequivocal evidence that human activities are driving climate change.”

Other signatories include the British Ecological Society, the Institute of Physics, the Royal Astronomical Society, the Royal Meteorological Society and the Wellcome Trust.

The letter notes that the dangers are hardly theoretical, and in fact, many systems are already at risk. A two-degree rise would bring ever more extreme weather, placing entire ecosystems and cultures in harm’s way.

At or above 4 degrees, it notes, the world faces substantial species extinction, global and regional food insecurity, and fundamental changes to human activities that today are taken for granted.

It also stresses that addressing the problem has vast potential for innovation, for example in low-carbon technologies.

Climate mitigation and adaptation actions, including food, energy and water security, air quality, health improvements, and safeguarding the services that ecosystems provide, would bring considerable economic benefits.

Also on Tuesday, the Vatican hosted mayors and governors from major world cities who signed a declaration urging global leaders to take bold action at the U.N. summit.

Mayors from South America, Africa, the United States, Europe and Asia signed a declaration stating that the Paris summit “may be the last effective opportunity to negotiate arrangements that keep human-induced warming below 2 degrees centigrade.”

Leaders should come to a “bold agreement that confines global warming to a limit safe for humanity while protecting the poor and the vulnerable,” said the declaration, which Pope Francis, who has taken a strong public stand on climate change, also signed.

California Governor Jerry Brown, who is in Rome this week, skewered climate change deniers in an interview with the Sacramento Bee, calling them “troglodytes.”

“Because the other side, the Koch brothers, are not sitting still,” Brown said. “They’re raising money, they’re supporting candidates, they’re putting money into think tanks, and denial, doubt and skepticism is being spewed through various media channels, and therefore the sincerity and the authority of the pope is a welcome antidote to that rather virulent strain of climate change denial.”

According to research by Greenpeace, Charles and David Koch (who also funded the right-wing U.S. Tea Party) have sent at least 79,048,951 dollars to groups denying climate change science since 1997.

“We don’t even know how far we’ve gone, or if we’ve gone over the edge,” Brown said in a speech at the Vatican climate summit. “There are tipping points, feedback loops, this is not some linear set of problems that we can predict.

“We have to take measures against an uncertain future which may well be something no one ever wants. We are talking about extinction. We are talking about climate regimes that have not been seen for tens of millions of years. We’re not there yet, but we’re on our way.”

Edited by Kanya D’Almeida

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The Myths About the Nuclear Deal With Iranhttp://www.ipsnews.net/2015/07/the-myths-about-the-nuclear-deal-with-iran/?utm_source=rss&utm_medium=rss&utm_campaign=the-myths-about-the-nuclear-deal-with-iran http://www.ipsnews.net/2015/07/the-myths-about-the-nuclear-deal-with-iran/#comments Fri, 17 Jul 2015 22:05:19 +0000 Thalif Deen http://www.ipsnews.net/?p=141644 EU High Representative for Foreign Affairs and Security Policy Federica Mogherini with with Iranian Foreign Minister Javad Zarif and American Secretary of State John Kerry at the Palais Coburg Hotel, the venue of the nuclear talks in Vienna, Austria on July 9, 2015. Credit: European External Action Service

EU High Representative for Foreign Affairs and Security Policy Federica Mogherini with with Iranian Foreign Minister Javad Zarif and American Secretary of State John Kerry at the Palais Coburg Hotel, the venue of the nuclear talks in Vienna, Austria on July 9, 2015. Credit: European External Action Service

By Thalif Deen
UNITED NATIONS, Jul 17 2015 (IPS)

The single biggest misunderstanding about the nuclear agreement with Iran is that it is a bilateral deal with the United States.

Not true.“Beware of American and Israeli politicians and commentators who claim this agreement will enable Iran to acquire nuclear weapons, or that if the U.S. Congress rejects the deal, more negotiations will deliver a better one. Sticking this non-proliferation pudding back in the oven at a higher heat is more likely to get us all burned." --
Dr Rebecca Johnson

The agreement involved the U.N.’s five big powers, namely, the United States, Britain, France, China and Russia, plus Germany (P5+1).

But still, right-wing conservatives and U.S. legislators want to dissect and delegitimise an international agreement, whose clauses include the phased removal of U.N. sanctions on Iran.

The Security Council, where the P5 have veto powers, will meet next week to adopt a resolution and thereby give its blessings to the agreement.

But pro-Israeli groups and some members of the U.S. Congress want it delayed, arguing the United States should take political precedence over the United Nations.

At a press conference early this week, Wendy Sherman, U.S. Under Secretary of State for Political Affairs and a member of the U.S. negotiating team, told reporters: “Well, the way that the U.N. Security Council resolution is structured, there is an interim period of 60 to 90 days that I think will accommodate the congressional review.”

And it would have been a little difficult, she said, “when all of the members of the P5+1 wanted to go to the United Nations to get an endorsement of this since it is a product of the United Nations process, for us to say, ‘Well, excuse me, the world, you should wait for the United States Congress.’”

“The proof of the Iran nuclear deal will be in its results,” Dr Rebecca Johnson, director of the Acronym Institute for Disarmament Diplomacy and member of Princeton University’s International Panel on Fissile Materials, told IPS.

“I’ve spent time talking with American and Iranian scientists, diplomats and also human rights defenders. None of us is naive about the hurdles still to be overcome, and yet we are convinced this agreement is a positive step forward – and much better than more years of stalemate and hostility,” she added.

“But we also have to be honest that preventing nuclear proliferation and promoting human rights doesn’t stop with that. We welcome that Iran was one of 112 Nuclear Non-Proliferation Treaty (NPT) states parties to sign the humanitarian pledge initiated by Vienna this year, to ‘fill the legal gap for the prohibition and elimination of nuclear weapons’.”

Dr Johnson said “multilateral negotiations to ban nuclear weapons as well as efforts to rid the
Middle East of all nuclear and weapons of mass destruction (WMD) have to keep going forward if we want to avoid further proliferation and nuclear threats in the future.”

Responding to the strong negative reactions from Israel, Hillel Schenker, Co-Editor, Palestine-Israel Journal, told IPS that Prime Minister Benjamin Netanyahu seems to think the deal between the global powers and Iran is “the end of the world.”

His house organ, the Yisrael Hayom freebie, financed by the right-wing Las Vegas-based casino magnate Sheldon Adelson, who is active on both the Israeli and American political playing fields, greeted the deal with the headline “An Eternally Disgraceful Deal”.

The leaders of the opposition, on the other hand, have declared that the agreement is a “bad deal”, only criticising Netanyahu for ruining Israel’s relationship with U.S. President Barack Obama and the U.S. government.

“What we are actually witnessing however is the failure of Netanyahu’s policy of fear, and the triumph of President Obama’s policy of hope,” Schenker added.

He also said, “Netanyahu was nurtured in a home dominated by his father, the late Prof. Benzion Netanyahu, whose analysis of the Spanish Inquisition led him to conclude that no matter what we, the Jews and the Israelis, do, the whole world will continue to be against us, and we can only rely on ourselves.”

This approach, he argued, is totally contrary to the approach of the founding fathers of modern Zionism, all of whom understood the importance of creating alliances with global powers.

Dr M.V. Ramana, a physicist and lecturer at Princeton University’s Programme on Science and Global Security and the Nuclear Futures Laboratory, told IPS the confrontation with Iran has been built up with very little evidence open to the public, allowing for all kinds of claims to be made.

“I hope that this deal will put an end to such Iran-bashing. In any case, I think the deal is an important step in the right direction,” he said.

The next step is for all the countries in the region to accept the same nuclear limitations as Iran – in particular, Israel, he added.

“It is high time the international community turned its attention to Israel and demand that the country eliminate its nuclear arsenal and the nuclear facilities that allow it to manufacture nuclear weapons,” said Dr Ramana, author of “The Power of Promise: Examining Nuclear Energy in India” and a member of the Science and Security Board of the Bulletin of the Atomic Scientists and the International Panel on Fissile Materials.

Dr Johnson told IPS that negotiations, like baking, involve craft as well as science – getting the timing as well as the ingredients right is crucial.

She said diplomatic persistence made the time right for this deal to be brokered, but Americans, Israelis, Iranians, Arabs, Europeans and the rest of the world have to commit to going forward or it won’t succeed.

“Beware of American and Israeli politicians and commentators who claim this agreement will enable Iran to acquire nuclear weapons, or that if the U.S. Congress rejects the deal, more negotiations will deliver a better one,” she warned.

“Sticking this non-proliferation pudding back in the oven at a higher heat is more likely to get us all burned.”

She said such erroneous claims just feed into the hard-line minority in Iran – rump factions close to former Iranian president Mahmoud Ahmadinejad – that would also benefit if this deal is rejected.

“I don’t think those commentators are so naive that they actually believe their criticisms of the deal. They don’t want Iran to come in from the cold because – for whatever political or financial reasons of their own – they have a vested interest in stoking outdated rivalries and continuing to demonise and isolate Iran.”

She also said sanctions are a blunt instrument of coercion, usually causing most harm to the most vulnerable – women and children – and playing into authoritarian cliques who want to suppress human rights and democracy.

“It will be a tragic lost opportunity if these U.S. and Iranian hard-liners succeed in derailing this constructive nuclear agreement,” she declared.

Schenker told IPS said Netanyahu’s entire political career has been based on fear-mongering, and the need for “a strong leader” to confront the dangers.

In the recent election, this was typified by his last minute declaration that “the (Israeli) Arabs are going to the polling stations in droves, being bused-in by left-wingers.”

But during his past three terms, the ultimate source of fear was the threat of the Iranian bomb, which was picturesquely presented at the U.N. General Assembly session two years ago, and with his speech before U.S. Congress last year.

The headline in today’s Ma’ariv daily (Friday, June 17), is that “47 percent of the Israeli public favour a military attack on Iran following the signing of the agreement”, despite the fact that virtually the entire leadership of the Israeli military and security establishment is opposed to such an attack.

The survey results are clearly the product of the fears generated by Netanyahu and his allies, and much of the mainstream media commentators. However, alternative, calmer voices are also being heard, Schenker noted.

Many Israeli observers wonder why Netanyahu thinks he can still go against the entire international community, with the aid of his Republican allies in the U.S., given that they have no chance to overturn a presidential veto of any obstructionist resolution that they may pass.

As President Clinton once said after his first meeting with Netanyahu back in 1996, “Who does he think he is? Who’s the superpower here?”

Edited by Kitty Stapp

The writer can be contacted at thalifdeen@aol.com

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Opinion: Unrestrained ‘Privatisation of Poverty-Reduction’ Puts Human Rights at Riskhttp://www.ipsnews.net/2015/07/opinion-unrestrained-privatisation-of-poverty-reduction-puts-human-rights-at-risk/?utm_source=rss&utm_medium=rss&utm_campaign=opinion-unrestrained-privatisation-of-poverty-reduction-puts-human-rights-at-risk http://www.ipsnews.net/2015/07/opinion-unrestrained-privatisation-of-poverty-reduction-puts-human-rights-at-risk/#comments Thu, 16 Jul 2015 13:54:44 +0000 Savio Carvalho http://www.ipsnews.net/?p=141612

Savio Carvalho is Senior Advisor, Campaigning on International Development and Human Rights, Amnesty International, International Secretariat, London, and has worked for two decades in the Development and Human Rights sector in South and Central Asia, East Africa and Europe.

By Savio Carvalho
LONDON, Jul 16 2015 (IPS)

Corporate lobbyists are unusual guests at development meetings, but when the United Nations held its Financing for Development conference in Addis Ababa this week to decide who pays for its new “Sustainable Development Goals”, some governments laid out the red carpet for the private sector.

Photo Courtesy of Amnesty International

Photo Courtesy of Amnesty International

Unfortunately, the conference failed to agree on any mechanism for making sure the role of companies in development is kept transparent and accountable.

Some see giving companies a bigger role in development as a simple win-win. Governments get access to financing to take the pressure off aid budgets and come up with the 2.5 trillion dollars needed to respond to poverty and climate change, while meeting the housing, health, education and infrastructure targets in the post-2015 agenda.

On the other hand, companies get a potential say in policy making and access to juicy public contracts.

But before governments allow companies to shoulder significant responsibility for fighting poverty, climate change and other global challenges, they will have to convince critics who warn that they are putting the fox in charge of the henhouse.

While getting companies involved in development has the potential to provide important sources of funding to improve lives, experience equally shows that when companies are not held to account, people and communities can be seriously harmed. If private sector involvement in development is going to pay off for the people who need it and not just corporate shareholders, states have to leave impunity at the door.

Increasing the role of the private sector in the delivery of crucial public services such as water, education and health is fraught with risk. On July 2, the U.N. Human Rights Council warned that without proper regulation the privatisation of education could put the right to education at risk for countless children, especially if it means those children who cannot afford to pay lose out on quality education.

Around the world, Amnesty International has documented too many cases of marginalised communities waiting to see justice done, sometimes for decades, for human rights abuses perpetrated after a multinational company rolled into town. States who seek the involvement of the private sector in advancing development goals without putting effective safeguards in place, forget these cases at their peril.

The more than 570,000 victims of the 1984 Bhopal toxic gas leak, India’s worst industrial disaster, are still waiting for justice more than 30 years later. The firm responsible, Union Carbide, is now owned by U.S.-based Dow Chemical. A Bhopal court is pursuing criminal charges against Dow but the company has failed to even show up to multiple hearings over the last year. Meanwhile, survivors have tried and failed to seek justice in both India and the U.S.

While Union Carbide paid some compensation to those affected under a 1989 settlement agreement with the Indian government, it was wholly inadequate to cover the harm caused and there were serious issues with the way it was paid out to victims. At the time, the Indian government lacked the leverage to effectively hold a powerful global company to account.

Foreign companies operating in countries that are rich in natural resources and poor in regulation can reap huge profits at the expense of vulnerable people.

Earlier this year Amnesty International warned that Canadian and Chinese mining giants have profited from, and in some cases colluded, with  human rights abuses by the Myanmar authorities to exploit one of the country’s most important copper mines, with thousands of people being illegally driven off their lands, serious environmental risks going unchecked, and peaceful protest brutally suppressed.

Far from investigating the abuses, one multinational company involved used an opaque trust fund in the British Virgin Islands to divest its investment, in a manner which possibly breached economic sanctions applicable at the time. Reducing their exposure to the problem, rather than fixing it, has often been the mantra of companies faced by scandalous abuses.

For residents of Niger Delta, the legacy of half a century of oil production in Nigeria is the devastation of their farming and fishing lands. Today the oil spills continue unabated. In Shell’s operations alone, there were 204 spills in 2014. Shell blames sabotage and theft, but old pipelines and badly maintained infrastructure are a major cause of pollution.

This year one local community in Bodo has finally won 80 million dollars in compensation from Shell for the impacts of a massive spill, but only after a lengthy court battle in the UK and years of false claims by the company.

These are cautionary tales world leaders should consider as they plan to entrust the private sector with responsibility for funding and carrying out development projects. In all these cases, corporate political and financial clout created barriers to local communities accessing justice and accountability.

Governments have watched corporate political power grow for decades, often doing their best to get out of its way instead of properly regulating it to ensure that human rights are not violated.

Corporate lobbyists, meanwhile, have done everything possible to ensure that the important international standards addressing these risks remain entirely voluntary.  Voluntary codes of conduct and standards that have no enforcement mechanism ultimately lack the teeth to really change corporate behaviour, and when abuses occur, they can leave victims with little or no hope of remedy.

If private sector involvement in development is going to pay off for the people who need it and not just corporate shareholders, states have to leave impunity at the door. Companies that want to make a profit through work on sustainable development must be required to show they have a clean track record when it comes to human rights.

They must demonstrate that they have internal systems that ensure they do not cause human rights abuses. They must disclose information to communities about any local operations that impact them, as well as any payments they make to the authorities.

Crucially, governments must be ready to hold companies to account when abuses happen. The failure of all but five countries to meet the U.N.’s official aid targets is a crying shame, but if filling the gap by giving the private sector free rein leads to human rights abuses in already vulnerable communities, it will only rub salt in the wounds that sustainable development is supposed to heal.

Edited by Kitty Stapp

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IMF Steps Up Lending to Achieve Sustainable Developmenthttp://www.ipsnews.net/2015/07/imf-steps-up-lending-to-achieve-sustainable-development/?utm_source=rss&utm_medium=rss&utm_campaign=imf-steps-up-lending-to-achieve-sustainable-development http://www.ipsnews.net/2015/07/imf-steps-up-lending-to-achieve-sustainable-development/#comments Mon, 13 Jul 2015 16:45:40 +0000 Zhai Yun Tan http://www.ipsnews.net/?p=141557 By Zhai Yun Tan
WASHINGTON, Jul 13 2015 (IPS)

As the Third International Conference on Financing for Development opens in the Ethiopian capital, Addis Ababa, Monday, all eyes are on the United Nation’s post-2015 development agenda, billed as the most ambitious and far-reaching poverty eradication plan in the organisation’s history.

On the eve of the conference, on Jul. 10, some of the world’s leading development banks announced plans to extend 400 billion dollars in financing towards the U.N.’s Sustainable Development Goals (SDGs) over a three-year period.

The African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development, European Investment Bank, Inter-American Development Bank, World Bank Group (referred to as the MDBs), together with the International Monetary Fund (IMF), have also “vowed to work more closely with private and public sector partners to help mobilize the resources needed to meet the historic challenge of achieving the SDGs”, said a press release issued this past weekend.

Christine Lagarde, managing director of the IMF, announced here in Washington on Jul. 8 that the Fund has decided to increase developing nations’ access to credit to promote sustainable growth.

The changes, approved by the IMF executive board on Jul. 1, will expand concessional facilities – money-lending mechanisms – to developing countries by 50 percent.

More aid will be targeted at poor and vulnerable countries, and the IMF will maintain a zero-percent interest rate on rapid credit facility loans to fragile states and countries hit by natural disasters

Lagarde referred to three major international conferences – including the financing conference underway in Ethiopia, the U.N. summit slated to take place in New York City in September, and the year-end climate negotiations scheduled to be held in Paris – as “rare windows of opportunities” for the international community, including the IMF, to help developing countries achieve the SDGs.

“These three [meetings] combined can help us change the music,” she said. “We have a chance to collectively take a new approach.”

First laid out in the Rio+20 summit in 2012, the SDGs currently comprise 17 goals, ranging from reducing poverty and inequality to combating climate change. They are expected to form the global blueprint from which member states will derive their national policies over the next 15 years.

The goals come on the heels of the Millennium Development Goals (MDGs), eight poverty reduction targets set out in 2000 that will expire by the end of this year.

Many are worried that the SDGs are too broad and may be costly.

A United Nations report by the Intergovernmental Committee of Experts on Sustainable Development Financing released in August 2014 puts the estimate of eradicating extreme poverty in all countries, one of the goals, at around 66 billion dollars annually.

The cost of investments required to achieve “climate-compatible” scenarios may go up to several trillion dollars per year.

United Nations Under-Secretary General for Economic and Social Affairs Wu Hongbo said in an IMF Survey published on Apr. 18 that achieving the SDGs will cost more than the MDGs.

“In addition to eradicating poverty, this agenda will cover economic, social and environmental issues, so huge amounts of financial resources will be required for its implementation,” he said.

Other than international aid, the report calls for the use of private resources, partnerships and innovative mechanisms to finance implementation of the SDGs.

But international aid is still crucial for many least developed countries, especially nations on the African continent and landlocked developing states.

In 1970, a target was set for developed countries to allocate 0.7 percent of their Gross National Income (GNI) as Official Development Assistance (ODA) to developing countries. However, only five developed countries from the Organisation for Economic Cooperation and Development (OECD) have reached the target so far.

ODA is the measure of resource flows to developing countries for economic development and welfare.

Charles Kenny, senior fellow at the Center for Global Development in Washington, D.C. said in a blog post on Jul. 7 that aid flows alone could not float the multi-trillion-dollar price tag of the SDGs.

“The truth is that development is no longer mostly about aid,” he said.

He referred to remittances from migrants living overseas, foreign direct investment and private lending to developing countries as well as domestic government revenues as other lucrative sources of financing.

The IMF has contributed to the goals by providing advice, assistance and lending to the countries.

Lagarde said that the IMF will focus on mobilising domestic revenue, especially through increasing the tax ratios in developing countries. She said that tax ratios in developing countries are below 15 percent in comparison to the OECD average of 34 percent.

“Money raised in that simple, fair and broad-based system and well spent on the right policies can be a game changer,” she said.

Eliminating inefficiency by combating corruption and untargeted subsidies was another IMF goal. Around 30 percent of public spending is lost due to inefficiencies in the public investment process, she said.

“They [developing countries] can’t do it by themselves,” Lagarde said. “If the international community participates in that effort, it will go a lot further.”

Edited by Kanya D’Almeida

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“Why Hire a Lawyer When You Can Buy a Judge?”http://www.ipsnews.net/2015/07/why-hire-a-lawyer-when-you-can-buy-a-judge/?utm_source=rss&utm_medium=rss&utm_campaign=why-hire-a-lawyer-when-you-can-buy-a-judge http://www.ipsnews.net/2015/07/why-hire-a-lawyer-when-you-can-buy-a-judge/#comments Wed, 08 Jul 2015 21:16:36 +0000 Kanya DAlmeida http://www.ipsnews.net/?p=141490 Women and children hold up signs at a rally against corruption in the northern Pakistani city of Peshawar. Credit: Ashfaq Yusufzai/IPS

Women and children hold up signs at a rally against corruption in the northern Pakistani city of Peshawar. Credit: Ashfaq Yusufzai/IPS

By Kanya D'Almeida
UNITED NATIONS, Jul 8 2015 (IPS)

A woman is stopped at a checkpoint; she gives birth, and dies. Another is sold in a slave market. A boy is killed by a tank. A young man drowns at sea, trying to reach a haven safe from oppression and poverty.

These were just some of the examples that Rima Khalaf, executive secretary of the Economic and Social Commission for Western Asia (ESCWA), touched on during a panel discussion on the importance of the rule of law held at the U.N. headquarters on Jul. 7.

In each of scenarios laid out above, Khalaf said, had the person in question been of a different race, ethnic group, gender or religion, they might have been spared an untimely or violent death. In other words, they might have been under the protection of the law.

All too often, however, citizens are either unable or unaware of how to demand their legal rights – be it access to food, jobs or justice.

As the U.N. closes a 15-year chapter of poverty eradication efforts defined by the eight ambitious Millennium Development Goals (MDGs), and moves towards a new, sustainable development agenda, legal experts came together Tuesday to discuss how the rule of law can help bolster the post-2015 blueprint for global change.

Organised by the International Development Law Organisation (IDLO), an intergovernmental body devoted to empowering citizens and enabling governments to establish robust legal systems worldwide, the two-part event series revolved around Goal 16 of the proposed Sustainable Development Goals (SDGs), which aims to build inclusive societies by providing equal justice to all.

Promoting and strengthening the rule law in the realm of international development would seem, as IDLO Director-General Irene Khan pointed out, “a no-brainer”.

Fast Facts: 2015 Rule of Law Index

The 2015 Rule of Law Index, published annually by the World Justice Project (WJP) crunched data from 100,000 households and 2,400 expert surveys in 102 countries to present a portrait of how ordinary people around the world perceive and experience the rule of law in their everyday lives.

Countries are scored on a 0-1 scale based on eight factors:
- Constraints on government powers
- Absence of corruption
- Open government
- Fundamental rights
- Order and security
- Regulatory enforcement
- Civil justice and
- Criminal justice

Under these criteria, Denmark bagged the top spot on this year’s index with a score of 0.87, while countries like Afghanistan and Zimbabwe brought up the rear, scoring 0.35 and 0.37 respectively.

Other countries in the top 10 zone include Singapore, Finland and New Zealand, while states like Myanmar, Bangladesh and Uganda live closer to the bottom of the index.

Asian countries featured heavily at the mid-point of the index, with India, Sri Lanka, Thailand, Indonesia and the Philippines occupying spots in the 50-60 range out of 102 surveyed states.

According to the WJP, “the Index is the world’s most comprehensive data set of its kind and the only to rely solely on primary data, measuring a nation’s adherence to the rule of law from the perspective of how ordinary people experience it.”
In reality, however, the SDGs mark the first time that the U.N. has explicitly written the rule of law into its development plans.

“There is a paradox here at the U.N. that bothers me deeply,” Khan said at a panel co-hosted by the IDLO and the Law School of the University of Pennsylvania (Penn Law) Tuesday. “You can almost think of it as parallel railway lines, with two trains hurtling down these tracks through the landscape of the U.N. since its inception.

“One is the train that is running the development agenda, and the other is the train running the human rights agenda. I only hope that the principle of the rule of law that has now been acknowledged as part of the development agenda will bring these two tracks together – and that the meeting won’t be a crash but a synergy.”

Since its inception in 1988, the IDLO has remained the only organisation dedicated entirely to promoting the rule of law, repeatedly pushing for effective and accountable legal systems around the world as the basis for eradicating poverty, fighting discrimination and ensuring access to basic services.

It also highlights the links between inequality and lawlessness, where good governance seeps through cracks in weak justice systems, eroding the public’s confidence in the very structures that are designed to ensure their well-being.

Recounting a conversation she had with a chief justice in one of the IDLO’s partner countries, Khan said, “I was told that in this particular country people often say, ‘Why hire a lawyer if you can buy a judge?’ It is these situations that the rule of law addresses.”

In short, she said, the rule of law regulates power, a crucial step in the realisation of the SDGs.

“Poverty is not a matter of income,” she stressed. “It is a matter of powerlessness.”

Consider the following example from Uganda, where three-quarters of the population are subsistence farmers and where land disputes can have a heavy impact on livelihood and food security.

For many years, inefficient and informal justice systems meant that farmers, and particularly women, had no recourse to resolutions over even the most minor discord.

With the introduction in 1995 of the Uganda Land Alliance (ULA) – established to provide legal empowerment to rural communities through Land Rights Information Centres – fair land laws and policies, as well as swift access to justice, has become the norm, rather than the exception.

In Ecuador, an IDLO training programme on access to fair trade markets and the basic legal aspects of forming and running micro-enterprises has given local communities in predominantly rural areas significant leverage in tapping into new revenue streams.

And in Rwanda, where women held just 43 percent of seats in the lower parliament in 2003, a new constitution and the creation of women’s councils over the past decade pushed women’s political representation to 64 percent in 2013, resulting in stronger laws on violence against women and gender-based crimes.

Any number of similar examples, from Afghanistan to Kyrgyzstan to Kenya, stand as testimony to the sheer scope and significance of the rule of law for the global development agenda.

But while legal frameworks are vital to securing rights and enshrining the basic tenets of development in constitutions worldwide, they cannot and do not exist in a vacuum.

“Laws alone are not enough,” Khalid Malik, former director of the United Nations Development Programme’s (UNDP) Human Development Report noted during the panel discussion. “Many countries have all manner of statutes and conventions, but behaviors have not altered. If institutions are not pro-poor, change will not happen.”

He stressed that part of the problem lies in “institutions often being captured by the elites”, or other powerful interests, making them less accessible to marginalised groups.

What is needed, he says, is an approach to the rule of law that is rooted in justice, and the empowerment of ordinary people.

“When you have a universal approach to education and health,” he stated, “You empower people enormously. Think of the Arab Spring – it happened mostly in countries that were doing well on health and education. Why? Because once you’re educated, you become far more aware of your rights, you start expecting more from institutions, and the relationship between the citizen and the state starts to change.”

It is precisely this change that lawmakers hope to see as the U.N. finalizes its new development plans for a more just and sustainable world.

Edited by Kitty Stapp

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Social Safety Net Not Wide Enough to Protect World’s Poorhttp://www.ipsnews.net/2015/07/social-safety-net-not-wide-enough-to-protect-worlds-poor/?utm_source=rss&utm_medium=rss&utm_campaign=social-safety-net-not-wide-enough-to-protect-worlds-poor http://www.ipsnews.net/2015/07/social-safety-net-not-wide-enough-to-protect-worlds-poor/#comments Tue, 07 Jul 2015 21:50:50 +0000 Zhai Yun Tan http://www.ipsnews.net/?p=141473 By Zhai Yun Tan
WASHINGTON, Jul 7 2015 (IPS)

Fifty-five percent of the world’s poor still have limited protection from hunger and economic, social or political crises despite expansion of social safety programmes in developing countries in recent years.

According to a report released by the World Bank on Jul. 7, most of the poor without a social safety net system are in lower-income countries, especially in sub-Saharan Africa and South Asia, where the vast majority of the world’s poor reside.

In these countries, safety schemes like cash transfers and school feeding programmes only cover 25 percent of the extreme poor, compared to 64-percent coverage in upper-middle-income countries.

Existing social welfare mechanisms are insufficient to close the poverty gap, leaving approximately 773 million people struggling to survive, experts say.

The report, the second in a series, was released following the World Bank Group and International Labor Organisation’s (ILO) announcement of their goals to provide universal social protection within the next 15 years.

A joint statement released by the two organisations on Jun.30 cited universal coverage and access to social protection as twin goals by 2030.

“The World Bank Group and the ILO share a vision of social protection for all, a world where anyone who needs social protection can access it at any time,” according to the joint statement by Jim Yong Kim, president of the World Bank Group, and Guy Ryder, executive director of the ILO.

“The new development agenda that is being defined by the world community – the sustainable development goals (SDGs) – provides an unparalleled opportunity for our two institutions to join forces to make universal social protection a reality, for everyone, everywhere.”

The report comes just ahead of the United Nations’ third Financing for Development (FfD) conference scheduled to take place in the Ethiopian capital Addis Ababa next week, where world leaders will discuss plans for funding the post-2015 development agenda, due to be launched in September.

The issue of providing universal social protection is slated to be at the centre of the agenda.

The five largest social safety programmes in the world are in China, India, South Africa and Ethiopia, where regular assistance reaches a combined total of 526 million people.

According to the report, all countries have at least one type of social security scheme, while the average developing country has about 20 such programmes. Globally, approximately 1.9 billion people benefit from these mechanisms.

On average, low-middle-income countries devote 1.6 percent of their gross domestic product (GDP) to these mechanisms, while richer countries devote 1.9 percent of their earnings to social programmes.

The World Bank reports that poor policy choices lie at the heart of inefficiencies in adequately providing for the poor. Fuel and electricity subsidies, for instance, reduce the portion of government spending allocated to social spending. These regressive subsidies disproportionately benefit the rich.

For example, Yemen spends nine percent of its GDP on energy and electricity subsidies, compared to the three percent it spends on social security net programs. The country, engulfed in political turmoil for the past few years, is already one of the poorest countries in the Arab World with up to 54.5 percent of its population living in poverty.

As developed countries like the United States and the European Union grapple with the balance between providing social security and maintaining economic growth in the slumping economy, developing countries have expanded their safety nets in a bid to reduce poverty.

Cash transfer programmes, recommended by the report as the most effective method, has “positive spillover effects on the local economy.” For each dollar transferred, the total income of the beneficiary increases from 1.08 dollars to 2.52 dollars.

“There is a strong body of evidence that these programmes ensure poor families can invest in the health and education of their children, improve their productivity, and cope with shocks,” said Arup Banerji, the World Bank Group’s senior director for social protection and labour.

“Going forward, more can be done to close the coverage gap and reach the world’s poorest by improving the effectiveness of these programmes underpinned by enhanced targeting, improved policy coherence, better administrative integration, and application of technologies.”

Edited by Kanya D’Almeida

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Will the New BRICS Bank Break with Traditional Development Models, or Replicate Them?http://www.ipsnews.net/2015/07/will-the-new-brics-bank-break-with-traditional-development-models-or-replicate-them/?utm_source=rss&utm_medium=rss&utm_campaign=will-the-new-brics-bank-break-with-traditional-development-models-or-replicate-them http://www.ipsnews.net/2015/07/will-the-new-brics-bank-break-with-traditional-development-models-or-replicate-them/#comments Tue, 07 Jul 2015 21:10:17 +0000 Kanya DAlmeida http://www.ipsnews.net/?p=141467 The heads of state of three of the five BRICS countries - Russia, India and Brazil – pose for a photograph during the 2014 BRICS Summit. Credit: Official Flickr Account for Narendra Modi/CC-BY-SA-2.0

The heads of state of three of the five BRICS countries - Russia, India and Brazil – pose for a photograph during the 2014 BRICS Summit. Credit: Official Flickr Account for Narendra Modi/CC-BY-SA-2.0

By Kanya D'Almeida
UNITED NATIONS, Jul 7 2015 (IPS)

Just days ahead of a summit of the BRICS group of emerging economies (Brazil, Russia, India, China and South Africa) in which the five countries are expected to formally launch their New Development Bank (NDB), 40 NGOs and civil society groups have penned an open letter to their respective governments urging transparency and accountability in the proposed banking process.

“In terms of the type of development the bank delivers, we don't have signs yet that the NDB will go in a qualitatively different direction than the Washington Consensus institutions." -- Gretchen Gordon, coordinator of Bank on Human Rights
The NDB is expected to finance infrastructure and sustainable development in the global South.

With an initial capital of 100 billion dollars, it was born from a combination of circumstances including emerging economies’ frustration with the largely Western-dominated World Bank Group (WBG) and International Monetary Fund (IMF).

According to a 2014 Oxfam Policy Brief, another factor leading to the creation of the BRICS Bank was a major gap in financing for infrastructure projects, with official development assistance (ODA) and funding from multilateral institutions meeting just two to three percent of developing countries’ needs.

Strained by economic sanctions as a result of the Ukrainian crisis, Moscow has been particularly keen to bring the fledgling lending institution to its feet and has been pushing international rating agencies to rate the bank’s debt, as a necessary first step for it to begin operations.

Even without counting the contributions of its newest member – South Africa – the four BRIC nations represent 25 percent of global gross domestic product (GDP) and 41.4 percent of the world’s population, or roughly three billion people.

In addition, the borders of these countries enclose a quarter of the planet’s land area on three continents.

But even as the five political leaders prepare to take centre stage in the Russian city of Ufa on Jul. 9, citizens of their own countries are already expressing doubts that the nascent financial body will truly represent a break from traditional, Western-led development models.

“The existing development model in force in many emerging and developing countries is one that favors export-oriented, commodity driven strategies and policies that are socially harmful, environmentally unsustainable and have led to greater inequalities between and within countries,” said the statement, released on Jul. 7

“If the New Development Bank is going to break with this history, it must commit itself to the following four principles: 1) Promote development for all; 2) Be transparent and democratic; 3) Set strong standards and make sure they’re followed; 4) Promote sustainable development,” the signatories added.

Gretchen Gordon, coordinator of Bank on Human Rights, a global network of social movements and grassroots organisations working to hold international financial institutions accountable to human rights obligations, told IPS, “[Although] the Bank’s Articles of Agreement have an article on Transparency and Accountability […] thus far we haven’t seen any indication of operational policies on transparency or anything relating to accountability mechanisms.”

“And unfortunately,” she added, “there is no open engagement with civil society on these questions.”

“In terms of the type of development the bank delivers, we don’t have signs yet that the NDB will go in a qualitatively different direction than the Washington Consensus institutions,” Gordon told IPS in an email.

“That is why civil society groups in BRICS countries are calling for a participative and transparent process to identify strategies and policies for the NDB that can set it on a different path and actually deliver development.”

A primary concern among NGOs has been that the BRICS bank will replicate the old “mega-project” model of development, which has proven to be a failure both in terms of poverty eradication and increased access to basic services.

A recent international investigation revealed that in the course of a single decade, an estimated 3.4 million poor people – primarily from Asia, Africa and Latin America – were displaced by mega-projects funded by the World Bank and its private sector lending arm, the International Finance Corporation (IFC).

Though these projects were ostensibly aimed at strengthening transportation networks, expanding electric grids and improving water supply systems, they resulted in a worsening of poverty and inequality for millions of already marginalised people.

Following closely on the heels of this damning expose, a major report by the international watchdog Human Rights Watch (HRW) found that the Bank’s lax safeguards and protocols resulted in a range of rights violations against those who spoke out against the economic, social and environmental fallout of Bank-funded projects.

Behind this track record, rights groups and NGOs are concerned that a new development bank operating on within a broken framework will contribute to the spiral of violence and poverty that has marked the age of mega-projects.

At a time when one billion people lack access to an all-weather road, 783 million people live without clean water supplies and 1.3 billion people are not connected to an electricity grid, there is no doubt that the developing world stands to gain greatly from a Southern-led financial institution.

What remains to be seen is to what extent the new bank will move away from the old model of financing and truly set a standard for inclusive and pro-poor development.

Edited by Kitty Stapp

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Putting the “Integrity of the Earth’s Ecosystems” at the Centre of the Sustainable Development Agendahttp://www.ipsnews.net/2015/07/putting-the-integrity-of-the-earths-ecosystems-at-the-centre-of-the-sustainable-development-agenda/?utm_source=rss&utm_medium=rss&utm_campaign=putting-the-integrity-of-the-earths-ecosystems-at-the-centre-of-the-sustainable-development-agenda http://www.ipsnews.net/2015/07/putting-the-integrity-of-the-earths-ecosystems-at-the-centre-of-the-sustainable-development-agenda/#comments Mon, 06 Jul 2015 22:22:31 +0000 Kanya DAlmeida http://www.ipsnews.net/?p=141446 Mangrove forests, like this one in western Sri Lanka, can store up to 1,000 tonnes of carbon per hectare in their biomass, yet they are being felled at three to five times the rate of other forests. Credit: Kanya D’Almeida/IPS

Mangrove forests, like this one in western Sri Lanka, can store up to 1,000 tonnes of carbon per hectare in their biomass, yet they are being felled at three to five times the rate of other forests. Credit: Kanya D’Almeida/IPS

By Kanya D'Almeida
UNITED NATIONS, Jul 6 2015 (IPS)

By 2050, we will be a world of nine billion people. Not only does this mean there’ll be two million more mouths to feed than there are at present, it also means these mouths will be consuming more – in the next 20 years, for instance, an estimated three billion people will enter the middle class, in addition to the 1.8 billion estimated to be within that income bracket today.

These changes are going to put unprecedented pressure on the world’s natural resources, according to a new report by the United Nations Environment Programme (UNEP)’s International Resource Panel (IRP).

Entitled ‘Policy Coherence of the Sustainable Development Goals: A Natural Resource Perspective’, the report warns that maintaining and restoring healthy ecosystems will be critical for the successful realisation of the U.N.’s post-2015 development agenda.

Unless the new development blueprint is centered on protecting and respecting the earth’s limited bounty, the goals of poverty eradication and ensuring decent lives for current and future generations will fall by the wayside, experts predict.

For instance, IRP studies have shown that annual global extraction increased “by a factor of eight in the 20th century” from seven billion tonnes of material in 1900 to 68 billion tonnes of resources by 2009.

Based on current trends, resource use and extraction could hit 140 billion tonnes by 2050 – three times what was extracted in the year 2000, according to UNEP data.

“Due to declining ore grades, depending on the material concerned, about three times as much material needs to be moved today for the same ore extraction as a century ago, with concomitant increases in land disruption, groundwater implications and energy use,” UNEP said in a press release on Jul. 6.

Meanwhile, pressures on biotic resources are also on the rise, with 20 percent of cultivated land, 30 percent of the world’s forests and 10 percent of its grasslands being degraded at a rate that far outstrips the ability of such earth systems to replenish themselves.

Deterioration of ecosystems also threatens to worsen the impacts of climate change, contribute to water scarcity and exacerbate world hunger, with environmental experts fearing that 25 percent of total global food production could be lost by 2050 as a result of converging land and resource issues.

“The core challenge of achieving the SDGs will be to lift a further one billion people out of absolute poverty and address inequalities, while meeting the resource needs – in terms of energy, land, water, food and material supply – of an estimated eight billion people in 2030,” U.N. Under-Secretary-General and UNEP Executive Director Achim Steiner said Monday.

“The fulfillment of the SDGs in word and spirit will require fundamental shifts in the manner with which humanity views the natural environment in relation to human development,” he added.

Representing over 30 renowned experts and scientists, and as many national governments, the IRP today called for the “prudent management and use of natural resources, given that several Goals are inherently dependent on the achievement of higher resource productivity, ecosystem restoration and resource conservation”.

The report also urged policy makers to introduce practices based on a ‘circular economy’ approach, whereby reusing, recycling and remanufacturing products and other materials reduces waste by “decoupling” natural resource use from economic progress.

While the SDGs represent a bold and wide-reaching framework for ending some of the world’s most pressing problems – among them hunger and extreme poverty – avoiding counter-productive results will depend on a “commitment to maintaining the integrity of the Earth’s systems while addressing the resource demands driven by individual goals,” UNEP experts cautioned.

As the world’s population increases, and more people climb into the ranks of the middle class (defined by increased income and a corresponding rise in consumption), it will become crucial for individuals to adopt consumption patterns – and governments and corporations to adopt production systems – that contribute to human well-being “without putting unsustainable pressures on the environment and natural resources”, the report said.

Edited by Kitty Stapp

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Panama and Nicaragua – Two Canals, One Shared Dreamhttp://www.ipsnews.net/2015/07/panama-and-nicaragua-two-canals-one-shared-dream/?utm_source=rss&utm_medium=rss&utm_campaign=panama-and-nicaragua-two-canals-one-shared-dream http://www.ipsnews.net/2015/07/panama-and-nicaragua-two-canals-one-shared-dream/#comments Wed, 01 Jul 2015 23:31:54 +0000 Iralis Fragiel http://www.ipsnews.net/?p=141388 http://www.ipsnews.net/2015/07/panama-and-nicaragua-two-canals-one-shared-dream/feed/ 1 Opinion: BRICS for Building a New World Order?http://www.ipsnews.net/2015/07/opinion-brics-for-building-a-new-world-order/?utm_source=rss&utm_medium=rss&utm_campaign=opinion-brics-for-building-a-new-world-order http://www.ipsnews.net/2015/07/opinion-brics-for-building-a-new-world-order/#comments Wed, 01 Jul 2015 11:38:34 +0000 Daya Thussu http://www.ipsnews.net/?p=141375

Daya Thussu is Professor of International Communication at the University of Westminster in London.

By Daya Thussu
LONDON, Jul 1 2015 (IPS)

As the leaders of the BRICS five meet in the Russian city of Ufa for their annual summit Jul. 8–10, their agenda is likely to be dominated by economic and security concerns, triggered by the continuing economic crisis in the European Union and the security situation in the Middle East.

The seventh annual summit of the large emerging economies – Brazil, Russia, India, China and South Africa – also takes place with a background of escalating tensions between Russia and the West over Ukraine and the eastward expansion of the North Atlantic Treaty Organisation (NATO), as well as the growing economic power of Asia, in particular, China.

Daya Thussu

Daya Thussu

Nearly a decade and a half has passed since the BRIC acronym was coined in 2001 by Jim O’Neill, a Goldman Sachs executive, now a minister in David Cameron’s U.K. government, to refer to the four fast-growing emerging markets. South Africa was added in 2011, on China’s request, to expand BRIC to BRICS.

Although in operation as a formal group since 2006, and holding annual summits since 2009, the BRICS countries have escaped much comment in international media, partly because of the different political systems and socio-cultural norms, as well as stages of development, within this group of large and diverse nations.

The emergence of such groupings coincides with the relative economic decline of the West.

This has created the opportunity for emerging powers, such as China and India, to participate in global governance structures hitherto dominated by the United States and its Western allies.

That the centre of economic gravity is shifting away from the West is acknowledged in the view of the U.S. Administration of Barack Obama that the ‘pivot’ of U.S. foreign policy is moving to Asia.“The major countries of the global South have shown impressive economic growth in recent decades … [it is predicted that] by 2020 the combined economic output of China, India and Brazil will surpass the aggregated production of the United States, Britain, Canada, France, Germany and Italy”

And there is evidence of this shift. In the Fortune 500 ranking, the number of transnational corporations based in Brazil, Russia, India and China has grown from 27 in 2005 to more than 100 in 2015. China’s Huawei, a telecommunications equipment firm, is the world’s largest holder of international patents; Brazil’s Petrobras is the fourth largest oil company in the world, while the Tata group became the first Indian conglomerate to reach 100 billion dollars in revenues.

Since 2006, China has been the largest holder of foreign currency reserves, estimated in 2015 to be more than 3.8 trillion dollars. According to the International Monetary Fund (IMF), China’s gross domestic product (GDP) surpassed that of the United States in 2014, making it the world’s largest economy in purchasing-power parity terms.

More broadly, the major countries of the global South have shown impressive economic growth in recent decades, prompting the United Nations Development Programme to proclaim The Rise of the South (the title of its 2013 Human Development Report), which predicts that by 2020 the combined economic output of China, India and Brazil will surpass the aggregated production of the United States, Britain, Canada, France, Germany and Italy.

Though the individual relationships between BRICS countries and the United States differ markedly (Russia and China being generally anti-Washington while Brazil and South Africa relatively close to the United States and India moving from its traditional non-aligned position to a ‘multi-aligned’ one), the group was conceived as an alternative to American power and is the only major group of nations not to include the United States or any other G-7 nation.

Nevertheless, none of the five member nations are eager for confrontation with the United States – with the possible exception of Russia – the country with which they have their most important relationship. Indeed, China is one of the largest investors in the United States, while India, Brazil and South Africa demonstrate democratic affinities with the West: India’s IT industry is particularly dependent on its close ties with the United States and Europe.

Although the idea of BRIC was initiated in Russia, it is China that has emerged as the driving force behind this grouping. British author Martin Jacques has noted in his international bestseller When China Rules the World, that China operates “both within and outside the existing international system while at the same time, in effect, sponsoring a new China-centric international system which will exist alongside the present system and probably slowly begin to usurp it.”

One manifestation of this change is the establishment of a BRICS bank (the ‘New Development Bank’) to fund developmental projects, potentially to rival the Western-dominated Bretton Woods institutions, such as the World Bank and the IMF. Headquartered in Shanghai, China has made the largest contribution to setting it up and is likely that the bank will further enhance China’s domination of the BRICS group.

Beyond BRICS, Beijing has also established the Asian Infrastructure Investment Bank (AIIB), which already has 57 members, including Australia, Germany and Britain, and in which China will hold over 25 percent of voting rights. Two other BRICS nations – India and Russia – are the AIIB’s second and third largest shareholders.

Such changes have an impact on the media scene as well. As part of China’s ‘going out’ strategy, billions of dollars have been earmarked for external communication, including the expansion of Chinese broadcasting networks such as CCTV News and Xinhua’s English-language TV, CNC World.

Russia has also raised its international profile by entering the English-language news world in 2005 with the launch of the Russia Today (now called RT) network, which, apart from English, also broadcasts 24 hours a day, 7 days a week in Spanish and Arabic.

However, as a new book Mapping BRICS Media – which I co-edited with Kaarle Nordenstreng of the University of Tampere, Finland – shows, there is very little intra-BRICS media exchange and most of the BRICS nations continue to receive international news largely from Anglo-American media.

The growing economic cooperation between Moscow and Beijing – most notably in the 2014 multi-billion dollar gas deal – indicates a new Sino-Russian economic equation outside Western control.

Two key U.S.-led trade agreements being negotiated – the Transatlantic Trade and Investment Partnership (TTIP) and the Trans Pacific Partnership (TPP), and both excluding the BRICS nations – are partly a reaction to the perceived competition from nations such as China.

For its part, China appears to have used the BRICS grouping to allay fears that it is rising ‘with the rest’ and therefore less threatening to Western hegemony.

The BRICS summit takes place jointly with Shanghai Cooperation Organization (SCO) Heads of State Council meeting. The only other time that BRICS and the SCO combined their summits was also in Russia – in Ekaterinburg in 2009.

Apart from two BRICS members, China and Russia, the SCO includes Kazakhstan, Kyrgystan, Tajikistan and Uzbekistan. SCO has not expanded its membership since it was set up in 2001. India has an ‘observer’ status within SCO, though there is talk that it might be granted full membership at the Ufa summit.

Were that to happen, the ‘pivot’ would have moved a few notches further towards Asia.

Edited by Phil Harris    

The views expressed in this article are those of the author and do not necessarily represent the views of, and should not be attributed to, IPS – Inter Press Service. 

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