Women and children from the village where the Esparza family was murdered by soldiers in Mexico's "drug war" demand justice outside the schoolhouse.Mónica González /IPS

Following the release of a major draft report on drug policy in the Americas, the secretary-general of the Organisation of American States (OAS), Jose Miguel Insulza, called for the beginning of debate aimed at reforming those policies throughout the region.

“Delivering this report today,” Insulza said Wednesday, “we are encouraged by the sincere aspiration, which I now have the privilege of presenting to the entire hemisphere, that this is not a conclusion but only the beginning of a long-awaited discussion.”

The draft report was shared with the 35 member countries of the OAS and is now scheduled to be discussed in depth at the upcoming organisation’s general assembly, on Jun. 4 in Guatemala.

The call for a new debate comes in light of a strengthened resolve on the issue throughout the region. This relates to the violence associated with drug trafficking as seen along the U.S.- Mexico border, as well as an increased prevalence of drug use and growing demand for health care services to treat addictions.

While acknowledging shortcomings in the implementation of current policies, some countries are continuing to defend the overall approach, and are encouraging a plan of action adopted by the Inter-American Drug Abuse Control Commission (CICAD) branch of the Washington-based OAS. This approach calls for the continued concentration of efforts to reduce both supply and demand, as well as measures in line with United Nations conventions on drug law.

The new OAS discussion will inevitably be energised by the recent surprise legalisation of marijuana in two U.S. states in November.

“A one-size-fits-all response won’t work for complex problems that affect different countries in various ways,” John Walsh, a senior associate with the Washington Office on Latin America (WOLA), an advocacy group here, told IPS.

“The report points to the need for flexibility to pursue options that may imply national and international reforms, including legal and regulated cannabis markets. And it emphasises that this more open debate is really just now beginning.”

Many of the region’s leaders have expressed frustration with the limits and exorbitant costs of current policies and their desire for a fuller and more creative debate.

But according to Walsh, who participated in writing the OAS report, there is a lot of scepticism over whether the OAS will be up to the task, especially given U.S. domination of the issue. But he also emphasises that the new report represents a good first step in the direction of a more constructive and nuanced debate.

“Drug policy is an international issue as well as a domestic issue and it can be hard to separate them, especially when you’re talking about drugs trafficking across borders – if it’s an issue in Colorado, chances are it is related to the issue in Mexico,” Walsh, who released a paper on this issue earlier this week, told IPS.

“In the case of cannabis in particular, the U.S. has been the chief advocate for international drug conventions that place strict controls on cannabis. However, as the U.S. begins to revisit and alter its cannabis laws, this will certainly have an effect on how the drug conventions are seen within the U.S. – and, and in turn, in Latin America, because all countries in the Americas are signatories of the same treaties.”

The OAS draft report even explores the potential creation of legal and regulated markets that would reflect these changes taking place in the United States.

“Changing U.S. public opinion towards cannabis is being reflected in changes in state policy, which has already placed the U.S. at odds with the drug conventions,” Walsh notes. “And while some of the Latin American states might be feeling a bit puzzled by the U.S.’s new approach to drug policy, others are seeing an opportunity to have similar proposals.”

Yet significant differences remain in public attitudes on this issue outside the United States. Walsh suggests that while public opinion has led government policy in this county, governments would need to lead public opinion towards legalisation in many Latin American countries.

Cannabis disconnect

Following the November elections here, a looming disconnect has opened up between where the United States seems to be going on cannabis policy and how the U.S. is asking other countries in the region to act. This is most evident in the case of Mexico, with Washington continuing to push the Mexican government to use its security institutions to forcefully crack down on the illicit cross-border drug trade.

For the moment, it appears unlikely that this policy will change. Yet some analysts say they are already seeing a fundamental shift in this dynamic, with Latin American governments taking the lead for the first time, in trying to define drug policies in the region.

Depending on how it proceeds at the meeting on Jun. 4, the new OAS report could be a central component of this shift. Beyond the cannabis issue, for instance, the OAS report offers a range of proposals and alternatives to be considered which, if adopted, would dramatically change the way drug policies are implemented.

This is happening after years in which the U.S. government was able to largely dictate such policy. Very recently, however, Latin American countries have been examining the drugs problems they’re dealing with on an individual level – and to decide on the most appropriate policy responses.

“Most of the considerations of new cannabis policy involve examining the potential to separate the cannabis market from the wider black market for illicit drugs,” Colletta Youngers, a long-time Latin American drugs expert with WOLA, told IPS.

“This is both to protect the people who want to obtain cannabis from having to go into criminal markets, and also to the extent that cannabis is a big part of illicit drug revenues that are for now entirely in criminal hands and to put those revenues into the hands and control of the state.”

Still, she admits that for the time being the issue of legal, regulated cannabis markets is a priority for some U.S. states, but not yet for the national government. But Youngers also points to countries such as Uruguay – where such a law is currently pending – and others that are currently exploring such issues.

A port of entry into Myanmar (Burma) from Thailand. Credit: Preethi Nallu/IPS

Nangnyi Foung reaches into the dryer, pulls out another pair of pants and places it on the ironing board. “I still have several more loads to go,” she says as the clock strikes nine p.m., marking the start of her 14^th hour on the shift.

She has been on her feet in this laundromat in the northern Thai city of Chiang Mai since seven in the morning and had been hoping to call it a day when two more customers walked in.

She is not in a position to turn anyone away: “I need the money. My family needs me to work,” she tells IPS, her voice tinged with desperation as she begins yet another load.

Six do-it-yourself washing machines stand like sentries at the entrance of this storefront-turned-laundromat. A flight of stairs leads to Nangnyi Foung’s living quarters, where she retires late at night only to collapse in exhaustion before waking up and beginning all over again.

Originally from the Shan State in neighbouring Myanmar (formerly Burma), Nangnyi Foung came here saddled with debt.

Fleeing persistent violence in her home country, she took out loans and paid middlemen hefty sums in order to win safe passage to Thailand, where, she had heard, employment opportunities awaited.

Ten years later Nangnyi Foung is still working to pay off her debt, awaking daily to a rigorous fourteen-hour shift of washing and ironing. Her earnings after seven days’ work without a single day off amount to little over six dollars, much of which is remitted back home.

Reaching for the steaming iron Nangnyi Foung tells IPS she saves on living expenses by sleeping in the basement of this facility. If she also had to pay for lodging she would not be able to send money home to her family of four.

Accounting for over 80 percent of Thailand’s 2.5-million-strong migrant labour force, Burmese migrants like Nangnyi Foung provide a lifeline to cash-strapped families back in Myanmar, one of Southeast Asia’s poorest countries that is struggling to recover from decades of economic stagnation.

Today, the minimum wage in Myanmar – about 180 dollars a month – buys eight to 10 times fewer daily consumption commodities like rice, salt, sugar and cooking oil than it did twenty years ago. The average Burmese lives on less than a dollar per day.

Though Myanmar is the world’s largest exporter of teak, jade, pearls, rubies and sapphires, and boasts lucrative extractive industries such as mining, timber and power generation, very little of the country’s natural wealth trickles down to the masses: approximately 32 percent of the population lives below the poverty line, while unemployment is at 5.4 percent.

According to a 2006 survey of migrant workers from Myanmar, conducted by the Asian Research Centre for Migration, more than two-thirds of the 600 respondents admitted to being unemployed before migrating to Thailand.

Remittances jump hurdles

While migrant workers fill crucial gaps in Thailand’s labour market, and their remittances account for five percent of Myanmar’s gross domestic product (GDP), neither government has attempted to make the flow of money between workers and their families any easier.

Despite the existence of commercial banks or official ‘Xpress Money’ outlets, most migrants prefer to use the informal remittance channel known as the “hundi” system.

These unauthorised transactions involve dealers in Thailand relaying messages to members of their network in Myanmar, who then deliver the necessary amount to the family.

Some migrants rely on friends and loved ones who travel between the neighbouring countries to act as conduits, thereby circumventing costly bank transfers.

“The banks can’t be trusted and they require a work permit, a letter of recommendation from our employer and a passport,” Nangnyi Foung says, documents very few migrants have access to.

Migrants with families in rural areas go through brokers, who deliver cash to the recipient’s doorstep, eliminating the hassle of them having to locate cash points.

According to a new report released Monday by the International Fund for Agricultural Development (IFAD), Asian countries dispatched over 60 million migrants into the world, “who sent almost 260 billion dollars to their families in 2012. This represented 63 percent of global flows to developing countries.”

Yet the continent seems ill equipped to deal with the influx of remittances, which benefit one in 10 Asian households.

“Although the clear majority of the region’s population lives in rural areas, 65 percent of payment locations are in urban areas,” the report found. In most Asian countries, only banks are authorised to deal with foreign currency transactions, making it difficult for poor rural communities to access funds coming in from abroad.

The report stressed the urgent need to provide remittance-receiving families with “more options” to secure and spend this money, especially since nine Asian countries currently receive remittances “exceeding 10 percent of GDP.”

The report has particularly vital policy implications for Southeast Asia, where 13 million migrants are currently living and working abroad. Thailand has become a “net importer” of migrant labour – attracting more than double the number of migrants to work in its expanding economy than it is sending abroad.

Women forfeit rights for employment

Constituting nearly 49 percent of the global population of 214 million migrant workers, women are responsible for the lion’s share of remittances flowing around the world.

Acutely aware of their families’ needs, like food, housing costs, education for children or younger siblings, and healthcare – women often endure extreme conditions in order to remit money back home.

The town of Mae Sot, located along the Thai-Myanmar border, hosts the largest number of women migrant workers in Thailand, who toil over fifteen hours a day in garment factories. In 2012, this sector netted estimated profits of 6.3 billion, while labourers who keep the industry running earned between 66 and 100 dollars per month.

Kyoko Kusakabe, associate professor of gender and development at the Asian Institute of Technology and co-author of ‘Thailand’s Hidden Workforce’, told IPS that most female migrants in Mae Sot “avoid labour strikes and forfeit their rights in favour of (continued employment).”

She says this is part of a culture that forces women to be “responsible” from a very young age, while their male counterparts have few obligations.

According to Kusakabe, this culture is reflected in remittance patterns: when the economy is booming, remittances from men increase, falling again when the economy enters a slump. Remittances from women, on the other hand, remain steady regardless of the overall economic climate, suggesting that women save more, or forego their own needs during times of economic austerity in order to preserve their family’s lifeline.

Her research found that even if women are not paid their salaries, or lose their jobs, they borrow money in order to send home, fearful that their children or parents will starve without financial support.

Toasted grasshoppers on sale in the Benito Juárez market in the capital of Oaxaca state, Mexico. Credit: Nsaum75 CC BY-SA 3.0

The Food and Agriculture Organisation’s recommendation to consider using edible insects as a food source to combat hunger may have particular repercussions in Colombia and Mexico, two Latin American countries that have a tradition of eating insects and a high degree of biodiversity.

Mexico has 300 edible insect species, according to a study published in May by the entomology department of Wageningen University in the Netherlands and the Food and Agriculture Organisation of the United Nations (FAO), titled “Edible insects: Future prospects for food and feed security”.

But local researchers have identified more than 500 species in the centre, south and southeast of Mexico, a mega-biodiverse country with a poverty rate of 47 percent.

“Insects are a viable, cheap source of high quality food that could be even better than the packaged foods that are consumed at present,” researcher Julieta Ramos-Elorduy, at the National Autonomous University of Mexico’s Biology Institute, told IPS.

In her view, “This country is ready for mass consumption of insects, but people need education about techniques and ways of marketing them. Protecting them is not a concern. There are no official measures,” said the expert, who has been carrying out research since the 1970s on the benefits of insects, and has reported 549 edible species.

The issue acquires an environmental dimension, particularly on International Day for Biological Diversity, celebrated this Wednesday May 22.

Eating insects or entomophagy is an indigenous tradition in Mexico, attested to by the Florentine Codex, written by Franciscan friar Bernardino de Sahagún (1499-1590) who described the consumption of 96 species.

Some insects provide up to three times more protein, weight for weight, than beef, and their nutrient concentrations are surpassed only by fish, according to the National Commission for Knowledge and Use of Biodiversity (CONABIO).

The Mexican insect menu is made up of blood-sucking bugs, worms, beetles, butterflies, ant and fly larvae, bees, wasps and “chapulin” grasshoppers. They can be grilled, fried or served with different kinds of sauces.

In recent decades, several of these delicacies have vaulted from kitchens in poor rural homes to tables in fancy restaurants.

In Mitla, a town close to a Zapotec archaeological site of the same name in the southern state of Oaxaca, a small business uses moth larvae (Hypopta agavis) that feed on American aloe leaves to make a hot spicy salt to accompany mescal, an alcoholic drink distilled from the same aloe plant.

“We follow a homemade recipe. Grinding is done by hand and we use a hand mixer. We also package by hand,” Diana Corona, the commercial manager of the firm Gran Mitla which produces 300 kilograms of “sal de gusano” (larva salt) a month, told IPS.

It takes 300 grams of ground larvae, 300 grams of dry chili peppers and 400 grams of salt to produce one kilo.

The larvae or worms are collected from August to October and frozen to ensure continuous production, as from November to the following May harvesting is banned throughout the country.

The FAO publication says that more than 1,900 species are part of the traditional diets of at least two billion people worldwide. The favourites are beetles, caterpillars, bees, wasps, ants, grasshoppers, locusts and crickets.

Collecting and farming insects could create jobs and income, and could have industrial-scale potential, the authors say.

“That could be achieved if the insects are farmed and marketed in large quantities. But producers need to be aware that their resources are being depleted,” said Ramos-Elorduy, who is investigating the productivity of insect species that feed on maize and pumpkin, and seeking ways of increasing it.

“Collecting techniques are the same everywhere, but there is no legislation stipulating proper techniques. People do not know what they are. Besides, wages are very low,” she said.

In their research paper “Edible insects in some locations in Central Region of Mexico State: Collection techniques, sale and preparation”, Ramos-Elorduy, Andrés Juárez and José Manuel Pino warn that “this valuable food resource is in danger of disappearing, due to a variety of environmental and socio-economic problems.”

The paper, published in December, concludes that “impacts on the environment, cultural change and changes in land use are causing the consumption of insects to decrease, especially among young people.”

Corona, of Gran Mitla, agreed that measures should be taken to protect these species. “Regulations are needed for collection and marketing. Insects are part of the Mexican diet and the resource must be protected,” she said.

For the same reason, many collectors are reluctant to talk about where they find their insects and grubs, and how they capture or harvest them.

The FAO report recommends automated infrastructure and regulatory frameworks to ensure stable, reliable and safe production. It also stresses that insect biomass could be used as the raw material for animal feed.

In Colombia, a snack available from street stalls is the crunchy “hormiga culona” (Atta laevigata), a leafcutter ant species, sold toasted and salted. The origin of this and other dishes is native culture.

But “going into the rainforest for large-scale extraction of insects is a touchy issue, because they are found in wildlife habitats,” Colombian biologist and regional planner Jaime Bernal Hadad told IPS.

Colombia has a poverty rate of 33 percent, and it is the second most mega-biodiverse country on the planet, after Brazil.

“In tropical ecosystems, although there is a great diversity of species, there are only relatively few individuals per species,” said Bernal Hadad. “Large-scale extraction could lead to the extinction of species, or create environmental imbalances.

“Beetles on fallen trees in the forest help decomposition and the balance of those forests,” he said. “Wasps and bees have an important role in pollination. And while there are native groups who eat beetles and prize them highly, they are minority groups and do not create problems.”

In Bernal Hadad’s view, farming insects “is an interesting option. But other factors come into play, such as the issue of cultural acceptability and consumption.

“Of course, in Europe it may be regarded as exotic, but if we consider marginalised populations in Latin America, the issue is very different,” he said.

The fight against hunger “cannot ignore structural issues,” he said. Moreover, “it is worth asking whether the proposal could be controlled or if it would become another method of interfering with conservation, not as a result of ranching and the timber industry, but because of insects,” he said. “Then we would continue to reproduce the destruction of natural systems, without real solutions.”

With additional reporting from Helda Martínez in Bogotá.

Nawaz Sharif addressing a public gathering in 2012. Credit: cc by 2.0

While entrenched interests among Pakistan’s powerful security establishment constitute one prominent obstacle to any such optimism, a more significant hindrance could be scepticism among the country’s other two neighbours – Afghanistan and Iran – over Sharif’s own past, including his dealings during his two previous stints as prime minister.

Better relations with India

For the moment, Sharif himself is attempting to stoke this optimism. During his election campaign, Sharif pledged to revive India-Pakistan relations, which soured during Pervez Musharraf’s presidency from 2001 to 2008, and during a post-election phone call Indian Prime Minister Manmohan Singh expressed his wish for a “new course” between the two countries.

Following through on this vow, however, will be very difficult. Pakistan has long used ethnic tensions against India, as against Afghanistan, and changing this policy will require both a new mindset and a new set of convictions.

Sayeed Salahudeen, chief of the Muttahida Jihad Council (MJC) and the Hizb-ul-Mujahedeen, a powerful separatist Kashmiri militia group believed to be based in Pakistan, has already warned Sharif not to abandon the “Kashmir cause” over “friendship with India”. As long as “Kashmir is under India’s occupation”, Sulahudeen continued, “the national security of Pakistan, the safety and security of its borders, and its economic stability is at stake.”

Pakistan’s support for Kashmiri militants has been an essential part of Pakistan’s approach toward India, and any attempt to end this will take time. During his election campaign, Sharif stated that the Kashmiri conflict “needs to be resolved peacefully, to the satisfaction of not only both countries but also of the Kashmiri people.”

Sharif also promised a full investigation into the Kargil conflict, the 1999 incident in which Pakistani soldiers and Kashmiri militants infiltrated Indian side of the Line of Control, setting off a major crisis between the two nuclear powers. Sharif, who was prime minister at the time, has long claimed that Musharraf, as the military commander, had acted on his own, although another Pakistani army general insisted in January that Sharif himself was not as ignorant about the plans as he has said.

The new prime minister has also said he plans to investigate the alleged involvement of Pakistan’s powerful Inter Services Intelligence (ISI) agency in the 2008 Mumbai bombings, another key action that would please India but thoroughly aggravate powerful elements within the Pakistani establishment.

The India-Pakistan conflict is today deeply rooted, and governments in Pakistan, both civilian and military, have for decades viewed India as a strategic rival. Indeed, the potential “threat” from India has consistently been the army’s justification for its massive budget.

While civilian governments have generally opposed increasing military expenditures, the military-intelligence establishment continues to exert considerable influence, particularly in foreign and security policymaking. Sharif’s post-election statement that the prime minister would now be “the army chief’s boss” was an attempt to mitigate this concern, but it remains unclear whether he will be able to effectively follow through.

Sharif appears to hope that expanding economic ties between the two countries will weaken resistance to enhancing relations between the two long-time rivals. India’s economy has grown at a much more rapid pace than Pakistan’s over the past decade, and building stronger commercial ties to its giant western neighbour offers Islamabad perhaps the most direct route to getting its own economy out of the doldrums.

Afghan discomfort

While Sharif has established a certain credibility regarding his desire for better relations with India, the same does not hold true for Afghanistan where the new prime minister does not enjoy much popularity.

This is due not only to his support for warring jihadi factions in 1992, but also because Pakistan under his watch became the first country to recognise the Taliban as the legitimate Afghan government in 1997. In addition, Afghans have yet to forget Sharif’s attempt to impose Sharia law in 1999, the same set of decrees the Taliban brutally imposed in Afghanistan.

In his congratulatory message to Sharif, Afghan President Hamid Karzai expressed his hope that the two countries would be able to cooperate “to root out terrorism”. However, this was viewed mostly as a formality.

“If Pakistan’s political officials want to show good faith,” an Afghan news website states, “they have to confront terrorist groups inside Pakistan that are organised by ISI.”

Indeed, concern over an uncomfortably close association between Sharif and the Taliban intensified during the candidate’s pre-election gathering in Lahore. If he won, Sharif promised, he would pull Pakistan back from the U.S.-led international “war on terror” coalition. If such a statement were not meant to “blackmail” the United States, an editorial in Afghanistan’s Hasht-e Sobh newspaper stated, it means “he is serious in what he is saying.”

In a separate interview with the Hasht-e Sobh, Mahmoud Karzai – Hamid Karzai’s brother and a possible presidential candidate for Afghanistan’s 2014 election – accused Pakistan of attempting to annex Afghanistan, the prospects for which the country “tasted during Taliban rule”.

Such rhetoric refers to an old dispute over the British-drawn boundary that divides Pakistan and Afghanistan as well as Pashtun tribal areas, though the region continues to be prone to frequent violence and remains a source of tension between the two countries. Whether Sharif can dispel such suspicions will yet another challenge he faces in improving ties with his neighbours.

Iran and Saudi Arabia

Iran, which also accumulated its share of complaints about Islamabad’s behaviour under Sharif in the 1990s, is not expected to play a primary role in Pakistan’s regional policies, barring a major event such as a military crisis or controversy around gas pipelines.

Contrary to some analyses, any Iranian scepticism regarding the new Pakistani government is not related to the Islamabad’s alleged support for Sunni insurgents in Balochistan province, on the Iranian side of the border. In fact, Iran and Pakistan have established a cooperative relationship on this front.

Rather, scepticism stems, again, from Nawaz Sharif’s support of the Taliban during the 1990s, as well as his close associations with Saudi Arabia which, among other support, gave him safe haven during the years he was exiled from Pakistan after his ouster by Musharraf in 1999.

Iran and Afghanistan almost went to war in 1998, after Taliban militants murdered Iranian diplomats in Mazar-e Sharif. Because of Sharif’s support for the Taliban, as well as his close ties to Riyadh, Tehran’s chief rival in a region that has become increasingly polarised along sectarian lines, Iran’s hard-line media has reacted with concern to his return as prime minister.

Among other things, Tehran is concerned about the fate of the cross-border natural-gas pipeline between Iran and Pakistan despite strong U.S. opposition. Pakistan desperately needs Iranian gas to meet its growing energy needs, and outgoing Pakistani President Asif Ali Zardari and Iranian President Mahmoud Ahmadinejad inaugurated the final construction phase of the pipeline in March.

Pakistan received 500 million dollars to start building the pipeline in its territory, running through Balochistan into Karachi, and the deal is clearly to Pakistan’s advantage.

However, if a story by one influential Pakistani newspaper is true, that deal could now find itself in jeopardy. The Dawn newspaper has reported on Sharif’s rumoured suggestions to Saudi Arabia that “he may be open to reviewing the Iran-Pakistan gas pipeline.”

South Africa has pledged to help Nigeria make the automotive sector the West African nation’s flagship industrial target. Currently German car manufacturer BMW has a plant at Rosslyn near Pretoria. About 80 percent of the BMWs produced there are for the international market. Credit: John Fraser/IPS

The lack of economic diversification throughout sub-Saharan Africa means that despite South Africa’s pledges to help Nigeria make the automotive sector the West African nation’s flagship industrial target, it may be difficult to do so, experts say.

Earlier this month, South African Trade and Industry Minister Rob Davies announced the initiative during a visit here by Nigerian President Goodluck Jonathan.

It is a move that is seen as an important milestone in inter-African industrial cooperation. However, Peter Draper, a research fellow at the South African Institute of International Affairs, questioned whether this collaboration would develop into economic integration.

“The real question is whether such cooperation could ultimately evolve into meaningful, broader, economic integration rather than the network of mostly hollow shells that currently masquerade as free trade agreements,” he told IPS.

“I think that Nigeria and the Southern African Customs Union should negotiate a complementary Free Trade Area agreement to promote closer economic relations – as the complementarities are strong, and it would bring the two countries closer together politically.”

Draper said that the African Union (AU) has already developed a number of initiatives for specific sectors, but more needs to be done.

“Actually there are quite a few sectoral policies covering, inter alia, energy, communications, transport, and various other integration initiatives. The problem remains implementation, not a lack of plans,” he said.

He said that it seemed to be commonly accepted that the AU’s role was to develop and coordinate implementation of a continental “master plan” that integrates these various initiatives.

“I think there is a role for a broader continental perspective, but I prefer the notion of ‘subsidiarity’ – pioneered in the European Union – where implementation is left to the lowest possible level of government.”

Draper said that the cooperation between South Africa and Nigeria could be an important mentoring initiative for South Africa.

“South Africa has been (involved in) auto industry policy development since the mid-1920s and has a lot of experience to draw on and share,” he explained.

“It reminds me of cooperation in Latin America, which historically evolved through sectors, involving the auto industry particularly. The European Community (which became the EU) also started out through a network of sectoral collaboration – iron and steel in particular.”

Minister Davies told the Business Day newspaper that discussions on automotive cooperation with Nigeria were still at an early stage.

But while some manufacturers, such as Nissan, might be willing to set up plants in Nigeria, others are more cautious.

Bodo Donauer, the managing director of BMW South Africa, said that in his group “production follows the market” and he does not currently envisage a BMW plant being established in Nigeria.

“Local production plants make it easier to access and develop new markets with long-term growth potential. Having a local plant also makes the company a ‘local player’ and boosts acceptance of the products locally and underscores our good corporate citizen approach,” he said.

“The success of this strategy has been proven by positive sales trends since the ramp-up of production plants, for example in the Unites States, in China, in the United Kingdom and, of course, in South Africa.”

He said that around 20 percent of BMWs produced at the Rosslyn plant near Pretoria are sold on the local market in South Africa “with more than 80 percent exported to markets around the world, including one percent to certain markets in the rest of Africa.”

“Given the current size of the new premium car market in the rest of Africa, we believe the BMW Group is well-placed with its current global production network to meet any additional demand in markets like Nigeria without the necessity for additional production locations,” he said.

Peggy Droidskie, an advisor to the South African Chamber of Commerce and Industry, said that the initiative between South Africa and Nigeria was very welcome, as regional integration in Africa remains high on the development agenda.

“Nigeria is a large market, and it is closer to Europe. This proximity to Europe implies that it would be logical for European connections to be used.

“The fact that South Africa is preferred (as a partner for Nigeria) indicates that South Africa is very competitive and can accommodate the requirements of Nigeria. It also provides South African manufacturers with an additional footprint in Africa,” she said.

Droidskie predicted that some manufacturers who currently operate in South Africa would become interested in setting up in Nigeria.

“Agreements of this nature are driven by politicians,” she noted. “The politicians believe that the agreements that they enter into benefit the private sector, which is often, but not always, the case.”

She said that South African vehicle manufacturers are already exporting a significant number of vehicles to Nigeria.

“Last year, the number was nearly 15,000. Nigeria is therefore currently a lucrative market for South African vehicle manufacturers. It is therefore very likely that the manufacturers will take advantage and come to the party.”

And she predicted that this cooperation could expand to other industrial sectors.

“If the profile of Nigeria’s imports is taken into account, there is considerable room for an increase in South African exports to Nigeria. For instance, there is room for greater trade in electrical and electronic equipment and machinery.

“With the development of the Tripartite Free Trade Agreement between the three regional economic blocs in sub-Saharan Africa, there is considerable potential for cooperation to expand to other countries and to other sectors.”

HIJOS, the acronym for “Sons and Daughters for Identity and Justice Against Oblivion and Silence”, is an Argentine rights group founded in 1995 when children of people “disappeared” by that country’s 1976-1983 military regime came together to hold escraches or outings of human rights violators.

Argentine victims of forced disappearance. Credit: ha+/CC BY 2.0

An estimated 30,000 people were forcibly disappeared during the Argentine dictatorship’s systematic suppression of dissent. In 1976, then army chief Videla led the junta made up of the commanders of the three military forces after the coup d’état that overthrew the democratic government of Isabel Perón.

Videla, who died on May 17, may be physically no more, the 25-year-old Parodi told the audience in her acceptance speech, but Argentina is still trying to correct the historical wrongs of the regime he led for most of its seven years in power.

Parodi was with her colleague Marcos Kary in Gwangju to share the human rights experiences of Argentina and South Korea.

The Gwangju Prize is awarded by the May 18 Memorial Foundation in South Korea, which like HIJOS was established by the families of those subjected to the brutal excesses of a dictatorship. Protests against the rule of South Korean military commander and strongman Chun Doo-hwan (1979-1988) had culminated in the May 18-27, 1980 uprising in Gwangju, also known as 518, an allusion to the date the bloody crackdown began.

In spring 1980 there was a wave of demonstrations across South Korea. In Gwangju, in the southwest, the military responded with brute force, firing indiscriminately into crowds. Even passersby were killed. The final death toll is still uncertain, but up to 2,000 people may have died.

The uprising is seen as a pivotal moment in the struggle for South Korean democracy.

The May 18 Memorial Foundation was established in 1994, and the Gwangju Prize was created in 2000. Xanana Gusmao, who fought for the freedom of East Timor in Southeast Asia and was elected as its first president when it became a new country in 2002, was the first recipient of the prize.

The award has since gone to other leaders in South Asia, notably Aung San Suu Kyi, the icon for democracy in Myanmar/Burma, in 2004; Manipur’s Irom Sharmila, fighting the excesses of the military in northeastern India, in 2007; and Dr Binayak Sen, a civil rights activist working for the rights of tribal populations in India, in 2011.

For the first time, however, the prize has gone this year to an organisation so many miles and whole continents away from the parent country. HIJOS was chosen for its dedication to get justice for victims of human rights abuses during Argentina’s dictatorship.

Parodi and Kary, both students who work for and represent HIJOS, are not the children of any of those who fell prey to the atrocities of the regime, but are willing to carry on the job that the daughters and sons of the victims began nearly two decades ago.

Like other human rights groups in their country, their aim is to help restore truth and bring justice to Argentine society. The organisation has helped collect evidence, arranged legal assistance for those wishing to prosecute human rights violators, and offered psychological support.

Videla’s sentencing was a part of this effort. Tried and sentenced to life for human rights abuses soon after democracy was restored, he only served a few years in prison before he was released under a broad presidential pardon from Carlos Menem (1989-1999).

But the sustained efforts of organisations like HIJOS ensured that this impunity would not be permanent.

In the mid-2000s, the Argentine Supreme Court struck down the presidential pardon for the former members of the junta, as well as the two late 1980s amnesty laws, ruling that they were unconstitutional.

“In the period that no trials took place,” Parodi told IPS, “we undertook social action by identifying the perpetrators of atrocities and distributing leaflets to their neighbours indicating that the people next door were responsible for the brutal abuses that happened in the 1970s and 1980s.”

The human rights trials resumed after the pardons and amnesty laws were thrown out. In the central city of Córdoba, where Parodi and Kary work, there have already been four trials involving 400 victims and 43 accused, said Parodi. And a fifth trial began in December 2012 and will last another two years, the two activists told IPS.

However, helping to bring the perpetrators to court is not the end of HIJOS’s job, Parodi said, adding that there is still a lot to be done for human rights in their country.

“Human rights continue to be suppressed in Argentina,” Kary told IPS. “The military may no longer be in power, but the police continue to wield power, and their mindset has never really changed. Torture in jails continues.”

Meanwhile, the Gwangju Prize – and its 50,000 dollar cash award – has given the organisation an opportunity to share its human rights experience with rights groups and democratic movements in Asia. It is the first international recognition that HIJOS has received, and one it hopes to build on in its fight for human rights.

Trinidad and Tobago’s Foreign Affairs Minister Winston Dookeran, speaking, with CARICOM Secretary General Irwin La Roque (seated right).

Whether by accident or coincidence, recent days have seen a variety of Caribbean leaders and journalists question whether the region is failing to pursue leadership roles within international organisations – and thus losing its voice in global issues like trade, climate change, and peace and security.

“These days, it is difficult to find CARICOM citizens in top positions, except for Dr. Carissa F. Etienne of Dominica who is director general of PAHO [the Pan American Health Organisation]; Albert Ramdin of Suriname, who is assistant secretary general at the OAS [Organisation of American States]; and Judge Patrick Robinson of Jamaica, who is president of the International Criminal Tribunal for the former Yugoslavia,” the Jamaica Observer said in an editorial this week.

The paper went on to blame “the complete lack of strategic planning by the political leadership and Caricom Secretariat in positioning our regional citizens for top jobs.”

Earlier in the week, the country’s former prime minister P.J. Patterson, speaking at the launch of the book “Multilateral Diplomacy for Small States” by former Guyanese foreign affairs minister Rudy Insanally, also lamented the fact that few from the Caribbean Community (CARICOM) were occupying high-profile positions outside the region itself.

In defence of the 15-member bloc, Trinidad and Tobago’s Foreign Affairs Minister Winston Dookeran, who chairs the CARICOM Council for Foreign and Community Relations (COFCOR), said the issue was among “strategic matters” discussed during the two-day meeting of Caribbean foreign ministers that ended here Wednesday.

“At the level of Caribbean personalities in international organisations we are conscious of it and we had a long discussion on that and we are devising a process by which we are trying to improve that presence,” he told IPS.

Dookeran, who in his own address to the foreign ministers had also questioned whether “diplomacy in the Caribbean has lost its magic”, said that Caribbean countries need to make “the political statement as necessary in the councils of those bodies that we need to have a higher presence”.

CARICOM Secretary General Irwin La Rocque told IPS that Caribbean countries, despite their seemingly low profile, are still viewed as “prized assets” globally, and points to the presence at the meeting here of delegations from as far away as Japan and New Zealand.

“I am not so sure we have lost our charm, I think it is there. A number of political personalities have expressed an interest in coming to the heads of government meeting in Trinidad in July and I think that in itself speaks volumes,” La Roque said.

He added that there have been recent bilateral discussions with the United Arab Emirates, Turkey and Chile, arguing “the outside world seems to recognise the ability of the CARICOM countries to punch above its weight.

“I don’t think we have lost the charm, I think what we have to do is to be a little certain in terms of harnessing and leveraging our collective voices in the international forum,” he told IPS.

Caribbean diplomacy is expected to benefit from the decision of the Trinidad and Tobago government to fund a diplomatic academy at the University of the West Indies (UWI) that “would provide current and future diplomats, government officials, non-state actors with training and learning facilities on issues and processes that are relevant to the discharge of our diplomacy and the conduct of our foreign relations”.

Dookeran, who has been calling for a “new frontier for Caribbean convergence”, said the academy, which opens in September with an international conference, “will establish a network of cooperation with similar training and learning institutions to benefit from the benefits and offerings from other countries,” and that interest has been shown by countries in North America, Asia, Europe and Latin America.

“We are realising the limitations of being a one-language country,” he conceded. “It will take time to change that…this is part of our British inheritance.”

The CARICOM foreign ministers have also vowed to pursue reforms in the United Nations Security Council to better take into consideration the positions of developing countries.

“Clearly that’s an issue that is very troubling,” Dookeran said, adding that the membership should be “placed on the agenda squarely and frontally at the next [General] Assembly”.

“We have in fact begun to talk with some major countries in the world in order to make sure we have the necessary political clout to make a start,” he said.

The communiqué issued at the end of the meeting here said Japan’s candidature for a 2016-2017 non-permanent seat and reform of the Security Council had been discussed with Minoru Kiuchi, the parliamentary vice-minister for foreign policy, and “welcomed the commitment expressed by Japan to drastically increase assistance” to the region.

Nonetheless, Dookeran insists that small states “should have a political presence in the Security Council”.

“We are not saying in what ways it should be done at this stage, and we are saying that the continent of Africa should definitely be part of that process,” he said. Such changes would be a reflection “of the return to political and moral legitimacy of the body and therefore there is need to establish that so that its views cannot be ignored.

“There is [also] need to have more diplomatic dialogue with international financial institutions” such as the World Bank and the International Monetary Fund (IMF) so as to get them to change their lending policies to small island developing states (SIDS), he said.

In this vein, the Caribbean is working on developing new strategic partnerships with other SIDS “so that we can improve the strength of the voice of the small economies of the world.”

Twelve feature-length and 10 short films were screened at the May 13-16 festival, held in the border cities of Cúcuta in northeastern Colombia and San Cristóbal in western Venezuela.

The festival is aimed at promoting each nation’s films in the neighbouring country, especially in border areas, and at getting nationally-made films to focus more on Latin American audiences and matters of interest to them.

The binational jury gave first prize to the film by brothers Luis and Andrés Rodríguez because it was “the best film presented, area by area, due to…the original approach to the subject, the screenplay, and the noteworthy acting,” one of the jury members, Venezuelan filmmaker Rodolfo Cova, told IPS.

In the first edition of the festival held in 2012 in this border area crossed by the Andes mountains, first prize went to the Colombian film “Todos tus muertos” (All Your Dead Ones) by Carlos Moreno, about the political violence plaguing the poor rural population in the civil war-torn country.

This time, the prize went to a Venezuelan film, “not because of a principle of rotation, but because the jury analysed what it found to be the best film, just like a festival on music would select a bolero regardless of whether it came from Puerto Rico or Cuba,” another of the jury members, Colombian director and screenwriter Jorge Navas, told IPS.

While their film was winning the prize in San Cristóbal, the Rodríguez brothers, prolific documentary-makers who made their first incursion into the world of fiction with Brecha en el silencio, working as a team filming and directing, were presenting the movie at the Latin American Film Festival in Utrecht, Netherlands.

The film has won nearly a dozen prizes so far, in festivals in Venezuela, the Dominican Republic, Uruguay, and Egypt, and is showing at the Seattle International Film Festival, which kicked off Thursday May 16.

The Rodríguez brothers, “by combining a social focus with filmmaking, show the question of sexual abuse as part of the reality of Latin American poverty, and as something that should be talked about so the victims can find a way to free themselves,” Rafael Pinto, one of the film’s screenwriters along with the two brothers, commented to IPS.

In the film, 19-year-old Ana (Vanessa Di Quattro), who is deaf, takes care of her younger sister and brother in one of Caracas’s poor barrios. She does not know how to read or write, and creates her own language to communicate. She hands her weekly earnings as a textile worker over to her mother Julia, who works with her.

When Julia’s violent machista husband, who works off and on as a mechanic, tries to continue the saga of abuse against his younger stepchildren, Ana makes a decision that changes the lives of the entire family.

Di Quattro, born to a Colombian mother and an Italian father in a poor Caracas neighbourhood 26 years ago, was awarded the prize for best actress at the Colombia-Venezuela festival.

Best actor went to Gustavo Angarita for his performance in the Colombian film “Sofía y el terco” (Sofía and the Stubborn Man) by Andrés Burgos – the film that won the audience award in the Colombia-Venezuela festival, just as it had at the Biarritz International Festival of Latin American Cinema in September 2012 in southern France.

In “Sofía y el terco”, Spanish actress Carmen Maura plays a 75-year-old woman who lives in a small mountain village in Colombia and whose husband’s promise to take her to the Caribbean Sea has been postponed over and over again. Finally, she decides to make her dream of seeing the sea come true on her own, and life takes on a whole new dimension along the way.

The film is “about the struggle of women to be heard,” Burgos, who adapted a novel he was writing to a screenplay, told IPS. “It’s not your traditional film, which is why we weren’t interested in sticking to the realism of a concrete Colombian town or landscape.”

The prizes for best debut film and best screenplay went to “La Playa D.C.” by Colombian filmmaker Juan Andrés Arango, with the story of Tomás (Luis Carlos Guevara), a young black man who leaves his hometown on the Pacific coast to forge a new life for himself in Bogotá.

“Like in the case of ‘Sofía y el Terco’, ‘La Playa D.C.’ uses short, unconventional, innovative scripts that are very different from commercial films, but with strongly expressive story lines,” Nava said.

The jury also chose a Colombian film to recommend for exhibition in commercial theatres in Venezuela and a Venezuelan film to be shown in Colombia.

These were the thriller “La cara oculta” (The Hidden Face) by Colombian filmmaker Andrés Baiz, the top box-office earning nationally-produced film in Colombia last year, and “El rumor de las piedras” (Rumble of the Stones) a portrait of poverty and violence in Caracas, by Venezuelan filmmaker Alejandro Bellame.

An average of 15 to 20 films are produced every year in both Colombia and Venezuela. But regardless of the commercial success achieved by some films, they are practically unknown in the neighbouring country – something the festival was set up to counteract.

It is difficult for films from either country to recoup their production costs. In Venezuela, a country of 29 million people, ”making a film can cost nine or 10 million bolivars (1.5 million dollars), and to recover that amount it would have to be seen by 12 million people, which isn’t feasible,” Cova said.

In Colombia, according to Burgos, “there are two tendencies: making commercial films, like in the case of ‘El Cartel de los Sapos’ (The Snitch Cartel – a narco crime film that followed a popular TV series and was also seen at this week’s festival), or scrambling to find the funds for making films in genres with a poor box-office performance.”

Both countries have laws to bolster national filmmaking by committing state resources to supporting the industry and ensuring that commercial theatres show local productions as well as the standard Hollywood fare.

In Venezuela, the state provides most of the funds that national filmmakers need to produce a feature-length film. And the Villa del Cine and Amazonia, a state-owned film studio and distributor, respectively, were created in 2006.

In Colombia, the state holds open competitions that award up to 400,000 dollars in funds for film production, and grants tax exemptions to encourage the participation of private companies or foment co-productions like ‘Sofia y el terco’, which also involved Peru.

The spoon-billed sandpiper (Eurynorhynchus pygmeus), seen here in Phetchaburi, Thailand, could be extinct within a decade. Credit: J.J. Harrison/cc by 3.0

Migratory birds, which play an important role in the complex web of life known as ecosystem services, are under threat as never before, with some species facing extinction within the next decade.

Ahead of the International Day for Biological Diversity on May 22, focused this year on water resources, experts are calling for greater international cooperation to find sustainable and cost-effective solutions to the problem of species loss and environmental degradation.

“Both water management boundaries and ecosystems rarely conveniently align with geopolitical boundaries,” notes the report Natural Solutions for Water Security, published by the Convention on Biological Diversity (CBD).

According to Francisco Rilla, information and capacity building officer at the Convention on Migratory Species (CMS), an intergovernmental treaty signed in 1979 in Bonn, Germany, “The ‘Big Five’ primary causes of biodiversity loss … are habitat destruction, overharvesting and poaching, pollution, climate change and introduction of invasive species.”

Migratory species are especially vulnerable “as they depend entirely on a network of well-functioning ecosystems to refuel, reproduce and survive in every ‘station’ they visit and upon unrestricted travel,” Rilla told IPS.

The U.N. Environment Programme (UNEP) notes that many migrating birds, such as cranes, storks, shorebirds and eagles, travel thousands of kilometres across flyways that span countries, continents and even the entire globe.

These birds use wetlands to rest, feed and breed along their migration routes.

However, “half of the world’s wetlands – natural water storage systems – have been lost over the past century,” Nick Nuttall, UNEP spokesperson, told IPS.

Because of the degradation of their habitats, some migratory bird species could lose up to nine percent of their populations, while others, like the spoon-billed sandpiper, could become extinct within a decade, leading to further ecosystem changes and ultimately impacting on human development.

Putting a price on biodiversity loss

In a statement ahead of World Migratory Bird Day on May 11-12, UNEP executive director Achim Steiner underlined that migratory birds “are part of the web of life that underpins nature’s multi-trillion-dollar ecosystem services,” which are the benefits and resources that nature offers to humankind. 

“[Migratory birds’] contribution to ecosystem services is increasingly starting to be measured in monetary terms,” Rilla told IPS.

In March 2007, at the request of the Group of Eight largest economies along with several developing countries, UNEP started an initiative called ‘The Economics of Ecosystems and Biodiversity’ (TEEB), aiming at studying the economic benefits of biodiversity and incorporating them into policy-making.

As an example of TEEB’s implementation, Nuttall explained how UNEP assisted Kenya in 2012 to calculate the economic value of the ecosystem services generated by the Mau forest northwest of the capital Nairobi.

The overall value was assessed at 1.5 billion dollars a year, a consideration that led to the restoration of the forest, as well as of other ecosystems supplying water to Kenyan cities.

The advantages of using natural infrastructure like forests and wetlands instead of human-built infrastructure, such as dams, pipelines, water treatment plants and drainage systems, are highlighted in CBD’s report.

For example, strengthened coastal ecosystems can function as buffer zones that protect coastal communities from storms; rehabilitating soil biodiversity and functions can enhance water availability to crops and hence improve food security; restoring forests can reduce erosion risks and help deliver better quality water.

This approach, known as “Ecosystem-based Adaptation” (EbA), which integrates biodiversity and ecosystem services in climate change adaptation strategies – though cheaper and more sustainable than building new artificial infrastructure – is still under-utilised, says the report.

Agricultural activities, which alone account for approximately 70 percent of global water use, could apply a similar approach.

“More sustainable forms of farming can … address water issues while enhancing biodiversity,” Nuttall told IPS. “A survey of thousands of small scale farmers in Africa by UNEP and the U.N. Conference on Trade and Development found that those who had switched to organic or near organic production had seen yields on average climb by 100 percent, in part because returning organic matter to the soils had increased water retention of the soil – like a sponge – and prolonged the growing season.”

Governance matters

“We live in an increasingly water-insecure world,” stresses the CBD report.

Although there is no global water scarcity as such, there is an imbalance in its regional distribution, with only 12 percent of the world’s population consuming 85 percent of the available water.

Sound governance and equity in the distribution of water-derived benefits seem therefore important questions in the debate.

Asked by IPS about sustainable water management strategies in South Asia, one of the most water-scarce regions of the world, Michael Kugelman, senior programme associate for South and Southeast Asia at the Woodrow Wilson International Center for Scholars, cited resource mismanagement as a root cause of problems.

He stressed the lack of interregional cooperation in the area, as well as of understanding of the connections between ecosystem protection and water resources.

“I think that at a government level that linkage is not made at all,” he said, “There are a lot of environmental NGOs that are bringing attention to these issues. … In some ways governments will take the lead from the NGO community.”

Water cooperation in South Asia is limited to some bilateral initiatives, such as the Indus Water Treaty between India and Pakistan.

At a global level, the main mechanisms dealing with biodiversity and water management are the Ramsar Convention on Wetlands (signed in 1971 in Ramsar, Iran) and the above-mentioned CBD, which was created at the 1992 Earth Summit in Rio de Janeiro, Brazil, and in 2010 adopted its Strategic Plan for Biodiversity for the period 2011-2020.

The United Nations declared 2013 the International Year of Water Cooperation.

China and India are expected to be the largest investors by 2030, accounting for 38 percent of all global investment. Credit: Bigstock

Over the next decade and a half, a major global shift will result in the developing world controlling roughly half of the world’s capital, up from less than a third today.

According to new scenarios released Thursday by the World Bank, developing countries could control some 158 trillion dollars (at 2010 rates) by 2030, particularly in East Asia and Latin America. By that time, the developing world could account for 87 to 93 percent of global growth.

Under certain scenarios, “financial markets in economies like Brazil, India, and those of the Middle East will develop considerably, with these countries attaining, by 2030, a level of financial development comparable to the United States in the early 1980s,” a new report from the Washington-based development lender states. “Similarly, the quality of institutions in developing countries will tend to improve significantly.”

This analysis suggests that developing countries will soon gain the resources necessary to bankroll the major investments that the bank says will be necessary, particularly in infrastructure and services. This would mark a stark contrast with the past.

Further, World Bank analysts foresee a massive escalation of global investment from these countries. Whereas in 2000 international investment from developing economies constituted just a fifth of the global total, this could now triple over the next decade and a half.

“We found that developing economies will come to dominate investment,” Maurizio Bussolo, a World Bank lead economist and author of the new Global Development Horizons report, told reporters Thursday.

“By 2030, for every dollar invested around the world, 66 cents will be in developing countries. That’s a dramatic change, as for almost four decades such investments made up just 20 cents on the dollar.”

In fact, Bussolo suggests that developing countries will overtake the developed world in this regard much sooner, perhaps by the end of this decade.

Fast-strengthened systems

China and India are expected to be the largest investors by 2030, accounting for 38 percent of all global investment, almost as much as all high-income countries combined. In fact, China alone could be responsible for nearly a third of global investment by that time, the bank says, while Brazil, India and Russia will together constitute a larger investment bloc than the United States, at around 13 percent.

This means that total investments in the developing world could be half again as large as among developed countries, at 15 versus 10 trillion dollars.

Such changes will require the exponential development and strengthening of financial sectors in developing countries, as emerging economies inevitably move to quickly integrate with the international financial system in a way never before seen.

“Developing countries are currently almost absent from international financial markets, so you can see that we have a very long way to go in a historically short time period – 15 or 20 years for developing financial markets is not long,” Hans Timmer, director of the Development Prospects Group at the World Bank, told reporters.

“But we have seen in high-income countries that if you deregulate too rapidly you have a very dangerous situation. So we have a dilemma: the role of developing countries is increasing very rapidly, but we must deepen these financial markets only very gradually.”

Already, weak financial systems across the developing world are allowing for illicit outflows of capital that are at times far greater than the countries’ external debt, inexorably impacting on those countries’ ability to finance their public sector.

One report last year estimated that North African countries alone lost nearly a half-trillion dollars over the past four decades, almost the equivalent of their combined gross domestic product for 2010.

“It’s important to note that the World Bank is only talking about recorded capital here, but there’s so much illicit capital currently sloshing around that the multilateral institutions haven’t yet gotten their heads around,” Dev Kar, formerly with the International Monetary Fund (IMF) and currently the chief economist with Global Financial Integrity, a Washington advocacy group, told IPS.

“Our studies suggest that the unrecorded capital coming from developing countries is absolutely huge – the losers are losing far more than the gainers are gaining. As a result of these developments, you can understand why the North African countries blew up, as that kind of massive outflow of resources must have some kind of social impact.”

A level field

Of potentially considerable concern in the bank’s projections is where this new wealth will end up being concentrated.

“It’s one thing for the pie to be increasing, but how equitably is it being distributed?” Kar asks.

“Equity is a huge problem, as the rich seem to be getting richer and the poor getting poorer. Further, it seems the nouveau riche in the developing countries are a bit more callous than the established rich in developed countries.”

Kar notes that income inequality is generally not being helped through current redistribution mechanisms aimed at ensuring broader equal opportunity. Meanwhile, the poor, being unable to take advantage of globalisation, are being left behind across the globe.

According to the World Bank and numerous other analysts, wealth in developing countries is today largely locked up among the elite.

“For most of these countries, the first quarter of the population provides almost no savings. The bulk of savings comes from the richest quarter – there is lots of concentration,” the World Bank’s Bussolo told IPS.

In a separate statement, he noted: “Even if wealth will be more evenly distributed across countries, this does not mean that, within countries, everyone will equally benefit. Policymakers in developing countries have a central role to play in boosting private saving through policies that raise human capital, especially for the poor.”

In particular, the new report places significant focus on increasing government funding for education. It points to analysis from Mexico suggesting that changes in education could result in a five percent greater household saving rate by 2050.

“If the distribution of education among workers of future generations were to remain as unequal as it is today, this would perpetuate inequality of earning capacity, saving, and wealth in the future,” the report states.

“Leveling the playing field in terms of educational opportunities could thus be supported not just in terms of fairness but also – given the positive effect on private saving – in terms of efficiency.”