Inter Press Service » South-South http://www.ipsnews.net News and Views from the Global South Thu, 30 Jun 2016 15:14:18 +0000 en-US hourly 1 http://wordpress.org/?v=4.1.12 Brexit – Perceptions and Repercussions in the Americashttp://www.ipsnews.net/2016/06/brexit-perceptions-and-repercussions-in-the-americas/?utm_source=rss&utm_medium=rss&utm_campaign=brexit-perceptions-and-repercussions-in-the-americas http://www.ipsnews.net/2016/06/brexit-perceptions-and-repercussions-in-the-americas/#comments Mon, 27 Jun 2016 13:12:17 +0000 Joaquin Roy http://www.ipsnews.net/?p=145831 Joaquín Roy

Joaquín Roy

By Joaquín Roy
MIAMI, Jun 27 2016 (IPS)

The hopes of many of those who confidently expected the British electorate to vote, by a slender margin, for the country to remain in the EU have been dashed. All that is left to do now is to ponder the causes and background of this regrettable event, and consider its likely consequences, especially for relations with the United States.

In the first place one must point out and – and this is a general criticism of the present British political system – that Prime Minister David Cameron was hugely irresponsible to steer his country into this risky adventure. It has resulted in the worst calamity to befall Britain in the last half century and has inflicted severe damage not only on the EU but also on all the countries of the North Atlantic rim.

Cameron went out on a limb, thinking to secure total control over the country for his Conservative Party for the next several years. Next he pursued a surrealist referendum campaign agenda, seeking to persuade the public to vote to remain in the EU, against the Brexit proposal that he himself had engineered. He relied on the advantages and special privileges promised to the UK by the EU if the British people voted to remain.

Brussels had already warned that the EU would not grant Britain any further concessions or benefits over and above the conditions that apply in common to all EU members. It pointed out that Britain was in fact already a privileged partner, having opted out of the common currency (the euro) under a special agreement that did not even fix a timescale for its putative future membership of the euro area.

London also retains full control of Britain’s borders, having declined to sign the innovative Schengen Agreement which abolished many internal borders and introduced passport-free movement across the 26 Schengen countries.

The EU has indeed done everything in its power to keep the UK government and people happy and flaunting their prized British exceptionalism.

And now the fateful moment is at hand. The effect on Europe has been devastating. The one possible advantage for the EU – which has discreetly remained unvoiced – is that of ridding itself of an awkward partner, a dinner guest with an unfortunate habit of drawing attention to itself in negative ways. Britain slammed the brakes on progress towards fuller European integration and was a temptation to other recalcitrant EU countries to follow its bad example.

Recently concerns were raised in Washington over the Brexit referendum.

President Barack Obama himself did his best to urge Britons to stick with the EU when he visited London in April.

Cameron, and the people who voted for the UK to leave the EU, have done Obama a disservice. Britain’s image in the United States will deteriorate to unprecedented depths. The vaunted special relationship between the U.S. and Britain will no longer be an effective force underpinning one of the strongest alliances in recent history.

The first victim of the debacle may be the approval process for the Transatlantic Trade and Investment Partnership (TTIP) between the United States and the European Union, which is already looking shaky, at least for the immediate future.

The TTIP was meant to replicate the Trans-Pacific Partnership (TPP), an ambitious deal to cut trade barriers, set labour and environmental standards and protect corporate intellectual property. The TPP was signed in principle by twelve Pacific Rim countries including the United States, and now awaits approval by legislators in each of the countries.

The rise of populism and anti-free trade sentiment is reflected in speeches by both U.S. presidential candidates, and is likely to slow down what is now viewed as “excessive globalisation”. There is a return to a style of nationalism that exerts control over economic as well as political initiatives.

The next U.S. president will find it difficult to advance their country’s alliance with London on defence issues. The UK will have freed itself from what was already problematic military cooperation with Europe, and only its link with the North Atlantic Treaty Organisation (NATO) will endure. Some European NATO partners will be cautious about developing joint operations with a fellow member they view as uncommitted to agreements within the EU.

In the matter of trade per se, Washington will not take kindly to the new position of the City of London once it has lost its enviable status as a financial hub embedded in the EU. Siren songs from other European capitals solidly anchored in the soon-to-be expanded European community will be hard to resist, especially if European leaders adopt policies to strengthen the euro zone.

In Latin America, Brexit will be read as a confirmation that supranational practices and thoroughgoing integration are no longer a priority for the UK. The referendum result sends the message that national sovereignty is now paramount. All the time and effort the EU has spent over the years to promote the advantages of the European model of integration, based on the strength of its treaties and the effectiveness of its institutions, will be regretted as a sheer waste of time and energy.

An alternative “model of integration” based on the U.S. agenda, favouring one-off arrangements or treaties limited in scope exclusively to trade issues, will prevail over the already weakened European model.

The Caribbean region has strong historical and cultural ties to Britain. It will suffer from a less secure bond with the UK and will incline more closely to Washington.

The continent of the Americas, which is closest to Britain from the point of view of history and culture as well as in political and economic terms, will thus find itself further apart from Europe than before.

Joaquin Roy is Jean Monnet Professor and Director of the European Union Centre at  the University of Miami.  jroy@Miami.edu

Translated by Valerie Dee

 

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What is Missing on the Global Health Front?http://www.ipsnews.net/2016/06/what-is-missing-on-the-global-health-front/?utm_source=rss&utm_medium=rss&utm_campaign=what-is-missing-on-the-global-health-front http://www.ipsnews.net/2016/06/what-is-missing-on-the-global-health-front/#comments Tue, 21 Jun 2016 13:54:49 +0000 Martin Khor http://www.ipsnews.net/?p=145722 Martin Khor is the Executive Director of the South Centre.]]>

Martin Khor is the Executive Director of the South Centre.

By Martin Khor
GENEVA, Jun 21 2016 (IPS)

The last World Health Assembly (WHA) in Geneva (23-28 May) discussed the manifold global health crises that require urgent attention, and adopted resolutions to act on many issues. We are currently facing many global health related challenges, and as such multiple actions must be taken urgently to prevent these crises from boiling over.

Martin Khor

Martin Khor

The WHA is the world’s prime public health event and this year 3,500 delegates from 194 countries took part, including Health Ministers of most countries. World Health Organization (WHO) Director-General, Dr. Margaret Chan gave an overview of some of the successes and further work needed on the global health front.

The good news includes 19,000 fewer children dying every day, 44% drop in maternal mortality, 85% of tuberculosis cases that are successfully cured, and the fastest scale-up of a life-saving treatment in history, with over 15 million people living with HIV now receiving therapy, up from just 690,000 in 2000. As a result, aid for health is now far more effective, and the issue of health has become an investment for stable and equitable societies, not just a drain on resources.

The recent Ebola and Zika outbreaks showed how global health emergencies can develop very quickly. There is a dramatic resurgence of emerging and re-emerging infectious diseases, which the world is currently not prepared to cope with. Dr. Chan gave three examples of the emerging global health emergencies: climate change, antimicrobial resistance, and the rise of chronic-communicable diseases as the leading causes of death worldwide.

Many of the issues addressed are largely anthropogenic, created by policies that place economic interests above health and environmental concerns. Fossil fuels power economies, medicines for treating chronic conditions are more profitable than a short course of antibiotics, and highly processed foods provide longer term profit than fresh fruits and vegetables.

Unchecked, these emergencies will eventually reach a tipping point and become irreversible and as regards antimicrobial resistance, “we are on the verge of a post-antibiotic era in which common infectious diseases will once again kill.” On moving ahead, Dr. Chan highlighted universal health coverage as an essential aspect of the Sustainable Development Goals. It is the ultimate expression of fairness that ensures no one is left behind, and to provide comprehensive care for all.

A question however, was not covered by Dr Chan in her speech; how can some governments- especially in underdeveloped countries, obtain enough funds to finance the idealistic goal of providing healthcare for their citizens?

The Assembly agreed that WHO set up a new Health Emergencies Programme, enabling it to provide rapid, consistent, and comprehensive support to countries and communities facing or recovering from various emergencies, disease outbreaks, disasters or conflicts.

The WHO has produced a new paper to set up a global stewardship framework to support the development, control and appropriate use of new antimicrobial medicines and diagnostic tools to counter the threat of a global increase in antimicrobial resistance. The Secretariat has made quite a lot of progress, but action on the ground is still slow, in the Asia-Pacific region so far, only six countries have completed their national plans and another five have plans that are being developed.

WHO assistant Director-General, Keiji Fukuda said that focus in the upcoming year will include: making progress on the Global Action Plan (established in 2015), further developing the global stewardship framework, and involving political leaders by meeting in the United Nations headquarters in New York in September.

There were two issues on childhood nutrition that highlighted the need to put health concerns above corporate interests. The first of these issues was childhood and adolescent obesity. In 2014, an estimated 41 million children under 5 years were affected by being overweight or obese, and 48% of them lived in Asia and 25% in Africa.

The Commission on Ending Childhood Obesity recommended the promotion of healthier foods, reducing the consumption of highly processed foods and sugar-sweetened beverages by children and adolescents. It proposed more effective taxation on sugar-sweetened beverages and curbing the marketing of unhealthy foods.

On the second issue, the Assembly welcomed WHO guidance on ending the inappropriate promotion of foods for infants and young children. According to the guidelines, to support breastfeeding, the marketing of “follow-up formula” and “growing-up milks” targeted for babies aged 6 months to 3 years should be regulated in the same manner as infant formula for babies below 6 months.

On access to medicines and vaccines, the WHA agreed on measures to address the global shortage of medicines and vaccines, including monitoring supply and demand, improving procurement systems and improving affordability through voluntary or compulsory licensing of high-priced medicines.

An interesting and well-attended side event was organised by India on behalf of the BRICS countries (Brazil, Russia, India, China and South Africa) on the effects of free trade agreements on access to medicines. After remarks from the health ministers of these, the main speaker, American law professor Frederick Abbott, spoke about why the Trans Pacific Partnership Agreement (TPPA) could make it very difficult for the TPPA members to have access to affordable medicines.

His warning was complemented by the head of UNAIDS Michel Sidibé who estimated that the annual cost of treating 15 million AIDS patients could increase from US$2 to US$150 billion without the availability of generic drugs, costing about US$10,000 per patient annually.

Air pollution and the use of chemicals were other important environmental issues highlighted by the Assembly. Every year, 8 million deaths are attributed to air pollution – 4.3 million indoor and 3.7 million due to outdoor air pollution. The Assembly has also welcomed a new WHO roadmap to respond to the adverse health effects of increasing air pollution.

Since 1.3 million deaths worldwide are caused by exposure to extremely harmful chemicals, among them lead and various pesticides. WHA would like to ensure that the use and production of chemicals is regulated to minimize adverse health and environmental effects by 2020. Some agreed actions include the transfer of expertise, technologies and scientific data, and exchanging good practices to manage chemicals and waste between cooperating countries. WHO will develop a roadmap to meet the 2020 goals and the associated SDG targets.

A controversial issue that has taken two years of negotiations was how WHO should cooperate with non-state actors. The WHA finally adopted the WHO Framework of Engagement with Non-State Actors (FENSA), which provides WHO with policies and procedures to engage with NGOs, private sector entities, philanthropic foundations and academic institutions.

On the one hand, there is the aim to strengthen WHO’s engagement with non-state stakeholders. On the other hand, there is the need for WHO to avoid conflicts of interest that may arise when corporations and their foundations, associations and lobbies wield large and undue influence if they are allowed to get too close to WHO. Many NGOs and several developing countries are concerned about how this corporate influence is undermining WHO’s public health responsibilities, and that FENSA will worsen rather than reverse this trend.

On the health-related Sustainable Development Goals, the Assembly agreed to prioritize universal health coverage; to work with actors outside the health sector to address the social, economic and environmental causes of health problems, including antimicrobial resistance; to expand efforts to address poor maternal and child health, infectious diseases in developing countries; and to put a greater focus on equity within and between countries.

The WHA also adopted many other resolutions on international health regulations including; tobacco control, road traffic deaths and injuries, HIV, viral hepatitis and sexually transmitted infections, Mycetoma, integrated health services, the health workforce, the Global Plan of Action on Violence, Prevention and Control of Non-communicable Diseases, the Global Strategy for Women’s, Children’s and Adolescents’ Health, and healthy ageing.

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

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

By Roberto Azevêdo
GENEVA, Jun 10 2016 (IPS)

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

Roberto Azevêdo

Roberto Azevêdo

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Climate Change Compounds Humanitarian Crises in Global Southhttp://www.ipsnews.net/2016/05/climate-change-compounds-humanitarian-crises-in-global-south/?utm_source=rss&utm_medium=rss&utm_campaign=climate-change-compounds-humanitarian-crises-in-global-south http://www.ipsnews.net/2016/05/climate-change-compounds-humanitarian-crises-in-global-south/#comments Fri, 20 May 2016 06:20:41 +0000 Diego Arguedas Ortiz http://www.ipsnews.net/?p=145197 Tacloban, in the Philippines, one of the areas hit hardest by super typhoon Haiyan in November 2013. The disaster coincided with the COP19 climate talks and served as the backdrop for negotiations on mechanisms of damage and losses. Credit: Russell Watkins/Department for International Development

Tacloban, in the Philippines, one of the areas hit hardest by super typhoon Haiyan in November 2013. The disaster coincided with the COP19 climate talks and served as the backdrop for negotiations on mechanisms of damage and losses. Credit: Russell Watkins/Department for International Development

By Diego Arguedas Ortiz
SAN JOSE, May 20 2016 (IPS)

As the Global South works to overcome a history of weak institutions, armed conflict and poverty-driven forced exodus, key causes of its humanitarian crises, developing countries now have to also fight to keep global warming from compounding their problems.

“Disaster Risk Reduction and climate change adaption in fragile and conflict-affected states in the Global South have long been overlooked, as it is often perceived as too challenging or a lower priority,” Janani Vivekananda, an expert in security and climate change, told IPS.

Vivekananda, the head of Environment, Climate Change and Security in International Alert, a London-based non-governmental organisation working to prevent and end violent conflict around the globe, cited her country, Sri Lanka, as an example of problems shared by developing countries.

“Given the fragile political situation since 25 years of violent conflict ended in May 2009, ensuring that climate impacts do not fuel latent conflict dynamics is critical,” she said from London.

A politically unstable developing island nation like Sri Lanka, and many other countries in the South, will see their problems multiply in a warmer planet with higher sea levels, she said.

“Climate change is the ultimate ‘threat multiplier’: it will aggravate already fragile situations and may contribute to social upheaval and even violent conflict,” says “A New Climate for Peace”, an independent report commissioned in 2015 by members of the Group of Seven (G7) wealthiest nations.

This is the challenge faced by the governments and organisations that will attend the first World Humanitarian Summit to be held May 23-24 in Istanbul. The conference was convened by United Nations Secretary-General Ban Ki-moon, “to generate strong global support for bold changes in humanitarian action.”

At the summit, the delegates will search for ways to integrate the traditional conception of humanitarian emergencies with new crises, such as those caused by climate change, which this year caused record high temperatures.

“This is why the World Humanitarian Summit’s initiative to remake the humanitarian system is so timely and so important,” said Vivekananda.

The Intergovernmental Panel on Climate Change (IPCC) estimates that in the absence of policies that effectively curb greenhouse gas emissions, global temperatures will rise by four degrees Celsius by 2100.

And even if the world were to reach the “safe limit” for global warming – a rise of 1.5 to 2.0 degrees C, the target agreed in the Paris Agreement in December – the effects would still be felt around the planet, warns the IPCC, which decided in April to prepare a special report on the impacts of global warming of 1.5 degrees Celsius.

The landmark climate deal is one of the key elements that the national delegations will have when they reach Istanbul, along with the 2030 Agenda for Sustainable Development, agreed in September, and the Sendai Framework for Disaster Risk Reduction 2015-2030, agreed in March 2015.

More people were displaced worldwide in 2015 by weather-related hazards than by geophysical events. Credit: IDMC 2016 report

More people were displaced worldwide in 2015 by weather-related hazards than by geophysical events. Credit: IDMC 2016 report

“Explicit recognition of the linkages between different types of risks and vulnerabilities is still missing,” said Vivekanada, with regard to the not yet formalised connection between these two agreements and the World Humanitarian Summit.

The 17 Sustainable Development Goals (SDGs) forming part of the 2030 Agenda are essential for understanding the relationship between climate change and humanitarian assistance.

The report commissioned by the G7 says the poorest countries with the most fragile political systems, like Iraq, the Democratic Republic of Congo or Haiti face the greatest risks and difficulties adapting to climate change.

Climate pressure could hurt food production or require extra aid for local governments overwhelmed by the situation. In extreme circumstances, these phenomena can lead to forced migration.

According to the 2016 Global Report on Internal Displacement, published this month by the Internal Displacement Monitoring Centre (IDMC), more people were displaced in 2015 by hydrometeorological disasters (14.7 million) than by conflicts or violence (8.5 million).

The report also stressed the impact of the El Niño Southern Oscillation (ENOS) meteorological phenomenon and said that for the people most exposed and vulnerable to extreme rainfall and temperatures, the effects have been devastating and have caused displacement.

For example, El Niño caused intense drought along Central America’s Pacific coast and in particular in the so-called Dry Corridor, a long, arid stretch of dry forest where subsistence farming is predominant and rainfall shrank by 40 to 60 percent in the 2014 rainy season.

“Hundreds of people were forced to leave Nicaragua because of the drought,” Juan Carlos Méndez, with Costa Rica’s National Commission for Risk Prevention and Emergency Management (CNE), told IPS.

As a CNE official, Méndez is also an adviser to the Nansen Initiative, an inter-governmental process to address the challenges of cross-border displacement in the context of disasters and the effects of climate change.

“This is where we see the biggest political and technical challenges. You can clearly associate displacement with a natural disaster like an earthquake or a hurricane, but now we have to link it to climate change issues,” the expert said.

Partly for that reason, Costa Rica and another 17 countries launched the Geneva Pledge for Human Rights in Climate Action in February 2015, a voluntary initiative to get human rights issues included in the climate talks.

In the final version of the Paris Agreement, the concept was incorporated as one of the principles that will guide its implementation.

The simultaneous inclusion of climate change and its humanitarian impacts in international summits is not new, but is growing.

The backdrop to the climate talks at the 19th United Nations Climate Change Conference in November 2013 in Warsaw was the devastation wrought by Super Typhoon Haiyan in Southeast Asia, and in the Philippines in particular.

The human impact of the typhoon, which claimed 6,300 lives, intensified the talks in the Polish capital and prompted the creation of a mechanism to address climate change-related damage and losses.

A scientific study published in January this year found that the Philippines would experience the highest sea level rise in the world, up to 14.7 mm a year – nearly five times the global average.

“Which is why it is very urgent for the Philippines to beef up efforts on disaster preparedness, particularly in the communities with high risk for disasters and high poverty incidence,” Ivy Marian Panganiban, an activist with the Caucus of Development NGO Networks (CODE-NGO), told IPS.

Along with six other Filipino institutions, CODE-NGO is calling for locally-based humanitarian emergency response, with an emphasis on local leadership, and hopes Istanbul will provide guidelines in that sense.

NGOS “should really be capacitated and involved in the governance process since they are the ones that are in the forefront – people who are actually affected by disasters,” she said from Manila.

Edited by Estrella Gutiérrez/Translated by Stephanie Wildes

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Many Cities Don’t Know How Dangerous Their Air Pollution Ishttp://www.ipsnews.net/2016/05/many-cities-dont-know-how-dangerous-their-air-pollution-is/?utm_source=rss&utm_medium=rss&utm_campaign=many-cities-dont-know-how-dangerous-their-air-pollution-is http://www.ipsnews.net/2016/05/many-cities-dont-know-how-dangerous-their-air-pollution-is/#comments Thu, 19 May 2016 05:28:07 +0000 Lyndal Rowlands http://www.ipsnews.net/?p=145176 http://www.ipsnews.net/2016/05/many-cities-dont-know-how-dangerous-their-air-pollution-is/feed/ 0 Progress of The World’s Least Developed Countries to be Reviewedhttp://www.ipsnews.net/2016/05/progress-of-the-worlds-least-developed-countries-to-be-reviewed/?utm_source=rss&utm_medium=rss&utm_campaign=progress-of-the-worlds-least-developed-countries-to-be-reviewed http://www.ipsnews.net/2016/05/progress-of-the-worlds-least-developed-countries-to-be-reviewed/#comments Fri, 13 May 2016 01:05:36 +0000 Aruna Dutt http://www.ipsnews.net/?p=145105 Progress for Least Developed Countries could be a mixed blessing. Credit: Amantha Perera/IPS.

Progress for Least Developed Countries could be a mixed blessing. Credit: Amantha Perera/IPS.

By Aruna Dutt
UNITED NATIONS, May 13 2016 (IPS)

The United Nations will undertake a major review of progress made in the world’s 48 Least Developed Countries (LDCs) later this month.

“Many positive steps have been made by the world’s most vulnerable countries, demonstrating what they can do with the right support, but much more needs to be done given the persistent challenges and structural bottlenecks”, Gyan Chandra Acharya, High Representative for Least Developed Countries and Small Island Developing States said at a press conference here Tuesday.

The Midterm Review of the Istanbul Programme of Action for the Least Developed Countries will take place in Antalya, in the south of Turkey, from 27 to 29 May.

The countries defined by the UN as Least Developed Countries (LDCs) represent the poorest and under-developed segment of the international community. Two thirds of the 48 countries are in Africa, with the remaining one-third in the Asia-Pacific region, with Haiti the only LDC in the Americas. They comprise more than 880 million people – 12 per cent of the global population – half of which currently lives below the poverty line.

“We do not want to see a situation where a country graduates [from the LDC category] and then comes back again." -- Gyan Chandra Acharya.

In the past five years, the LDCs have made progress, including through access to the internet and telephone networks, infrastructure expansion, access to energy, reduction of child and maternal mortality rates, access to primary education, and women’s representation in parliament.

However development for the LDCs can be considered a mixed blessing, since many special forms of development assistance are directly targeted at these countries.

According to Acharya, this is why so-called graduation from the LDC category is more of a transition which takes place over a period of several years.

“We do not want to see a situation where a country graduates [from the LDC category] and then comes back again as an LDC,” he said.

He pointed to examples of recently graduated countries such as the Maldives and Samoa which are still receiving many of the facilities provided to the LDCs.

Acharya also said that consideration of when a country will graduate from LDC status was not only based on income.

To constitute a country as an LDC, three aspects of development are looked at, Gross National Income (GNI), Human Assets Index (HAI) and the Economic Vulnerability Index (EVI).

This reflects other aspects of an LDCs development, including their resilience to set-backs such as conflict, climate change and natural disasters.

According to the Group of 77 plus China (G77) which represents developing countries at the United Nations, “LDCs are the major victims of climate change.”

They are also vulnerable to “major health crises, natural calamities, price fluctuations of commodities, and external financial shocks,” the group said in its most recent statement on the upcoming review.

The G77 says that although the Istanbul Programme of Action stressed the importance of building the resilience of developing countries to withstand such shocks, “no visible international support has been devoted to build resilience of the LDCs.”

Acharya is hopeful for the meeting in Turkey, the review “provides an important opportunity for the global community to reaffirm its commitment to the world’s most vulnerable nations,” he said.

“Now is the time for action to ensure that no one is left behind as we build new and transformative partnerships, forging an inclusive and empowering future for millions of people living in Least Developed Countries.”

 

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West Papuans Turn to Africa for Support in Freedom Bidhttp://www.ipsnews.net/2016/04/west-papuans-turn-to-africa-for-support-in-freedom-bid-2/?utm_source=rss&utm_medium=rss&utm_campaign=west-papuans-turn-to-africa-for-support-in-freedom-bid-2 http://www.ipsnews.net/2016/04/west-papuans-turn-to-africa-for-support-in-freedom-bid-2/#comments Sat, 30 Apr 2016 06:30:44 +0000 Catherine Wilson http://www.ipsnews.net/?p=144913 Former President of Ghana, John Kufuor, voiced his support for West Papuan political aspirations during a meeting with West Papuan indigenous leader, Benny Wenda, at Ghana's 59th Independence celebrations in March this year. Credit: Benny Wenda

Former President of Ghana, John Kufuor, voiced his support for West Papuan political aspirations during a meeting with West Papuan indigenous leader, Benny Wenda, at Ghana's 59th Independence celebrations in March this year. Credit: Benny Wenda

By Catherine Wilson
CANBERRA, Australia, Apr 30 2016 (IPS)

For more than half a century, the indigenous people of West Papua, located on the western side of the island of New Guinea, who are related to the Melanesians of the southwest Pacific Islands, have waged a resistance to governance by Indonesia and a relentless campaign for self-determination.

But despite regular bloodshed and reports of systematic human rights abuses by national security forces, which have taken an estimated half a million West Papuan lives, the international community has remained mostly unwilling to take concerted action in support of their plight.

Now Benny Wenda, a West Papuan independence leader who has lived in exile in the United Kingdom since 2003, is driving a mission to build the support of African states. Following a visit to Senegal in 2010 and two visits to South Africa last year, Wenda was welcomed at the 59th Independence anniversary celebrations in Ghana in March this year.

“There has been widespread attention and further pan-African solidarity for West Papua renewed following my diplomatic visits to these African countries, both at parliamentary and grassroots levels,” Wenda told IPS.

In Ghana, Wenda met with political and church leaders, including former Presidents, Jerry John Rawlings and John Kufuor.

‘We are honoured to fight for your people. We share a similar history. It is no surprise to me that you had support from Ghana at the UN in 1969 and that we accepted West Papuan refugees in the 1980s,’ Jerry John Rawlings said to the Ghanaian media.

The alliance which Wenda is forging is based on a sense of shared historical experience.

“Africa is the motherland to all people and we Melanesians feel this strongly….our affinity primarily lies in our shared ancestral heritage, but also in our recent history because Africa has also suffered the brutalities of colonialism,” Wenda said.

Following decolonisation of the Dutch East Indies, Indonesia gained independence in 1949, but there was disagreement between the Netherlands and Indonesia about the fate of Dutch New Guinea, which the former was preparing for self-determination. A United Nations supervised referendum on its political future, named the ‘Act of Free Choice,’ was held in 1969, but less than 1 per cent of the region’s population was selected to vote by Indonesia, guaranteeing an outcome for integration, rather than independence.

At the time, Ghana and more than a dozen other African states were the only United Nations members to reject the flawed ballot.

During Wenda’s visit to South Africa last February, other leaders, such as Archbishop Emeritus Desmond Tutu and Nelson Mandela’s grandson, Chief Nkosi Zwelivelile ‘Mandla’ Mandela MP, added their solidarity.

‘I’m shocked to learn that West Papua is still not free. I call on the United Nations and all the relevant bodies, please, do what is right, as they know, for West Papua,’ Tutu said in a public statement.

The momentum continued when the Nigeria-based non-government organisation, Pan African Consciousness Renaissance, held a pro-West Papua demonstration outside the Indonesian Embassy in Lagos in April 2015.

Indonesia’s refusal to recognise secessionist aspirations in its far-flung troubled region is often attributed not only to concerns about national unity, but the immense mineral wealth of copper, gold, oil and natural gas which flows to the state from ‘West Papua’, the umbrella term widely used for the two Indonesian provinces of Papua and West Papua.

Since coming to power in 2014 populist Indonesian President, Joko Widodo, has vowed to increase inclusive development in the region and called on security forces to refrain from abusive measures, but the suffering of West Papuans continues. In May last year, there were reports of 264 activists arrested by police ahead of planned peaceful protests. Twelve Papuans were shot by security forces in Karubaga in the central highlands in July, while in August three people were abducted and tortured by police in the Papuan capital, Jayapura, and two shot dead outside the Catholic Church in Timika.

West Papua’s political fate stands in contrast to that of East Timor at the end of last century. East Timor, a Portuguese colony militarily annexed by Indonesia in 1975, gained Independence in 2002. The positive result of an independence referendum in 1999 was widely accepted and further supported by a multi-national peacekeeping force when ensuing violence instigated by anti-independence forces threatened to derail the process.

But in the political climate of the 1960s, Wenda says “West Papua was effectively handed over to Indonesia to try and appease a Soviet friendly Indonesian government….our fate was left ignored for the sake of cold war politics.” Now Indonesia staunchly defends its right of sovereignty over the provinces.

In the immediate region, West Papua has obtained some support from Pacific Island countries, such as the Solomon Islands, Tonga and Vanuatu which have voiced concerns about human rights violations at the United Nations.

And last year the Melanesian Spearhead Group, a sub-regional intergovernmental organisation, granted observer status to the United Liberation Movement for West Papua coalition. However, Indonesia, a significant trade partner in the Pacific Islands region, was awarded associate membership, giving it an influential platform within the organisation.

“Luhut Pandjaitan’s [Indonesia’s Presidential Chief of Staff] recent visit to Fiji suggests that Indonesia is continuing its efforts to dissuade Pacific states from supporting West Papua and is willing to allocate significant diplomatic and economic resources to the objective,” Dr Richard Chauvel at the University of Melbourne’s Asia Institute commented to IPS.

In contrast to Indonesia’s Pacific Island neighbours, Dr Chauvel continued, “African states mostly do not have significant trade, investment, diplomatic and strategic interests with Indonesia and do not have to weigh these interests against support for the West Papuan cause at the UN or elsewhere.”

How influential south-south solidarity by African leaders will be on West Papua’s bid for freedom hinges on whether championing words translate into action. In the meantime, Benny Wenda’s campaign continues.

(End)

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“Together, Civil Society Has Power”http://www.ipsnews.net/2016/04/together-civil-society-has-power/?utm_source=rss&utm_medium=rss&utm_campaign=together-civil-society-has-power http://www.ipsnews.net/2016/04/together-civil-society-has-power/#comments Fri, 29 Apr 2016 22:53:55 +0000 Constanza Vieira http://www.ipsnews.net/?p=144908 Participants in the biannual International Civil Society Week 2016, held in Bogotá, waiting for the start of one of the activities in the event that drew some 900 activists from more than 100 countries. Credit: CIVICUS

Participants in the biannual International Civil Society Week 2016, held in Bogotá, waiting for the start of one of the activities in the event that drew some 900 activists from more than 100 countries. Credit: CIVICUS

By Constanza Vieira
BOGOTA, Apr 29 2016 (IPS)

When Tamara Adrián, a Venezuelan transgender opposition legislator, spoke at a panel on inclusion during the last session of the International Civil Society Week held in Bogotá, 12 Latin American women stood up and stormed out of the room.

Adrián was talking about corruption in Venezuela, governed by “Chavista” (for the late Hugo Chávez) President Nicolás Maduro, and the blockade against reforms sought by the opposition, which now holds a majority of seats in the legislature.

The speaker who preceded her, from the global watchdog Transparency International, referred to corruption among left-wing governments in South America.

Outside the auditorium in the Plaza de Artesanos, a square surrounded by parks on the west side of Bogotá, the women, who represented social movements, argued that, by stressing corruption on the left, the right forgot about cases like that of Fernando Collor (1990-1992), a right-wing Brazilian president impeached for corruption.“Together, civil society has power…If we work together and connect with what others are doing in other countries, what we do will also make more sense.” -- Raaida Manaa

“Why don’t they mention those who have staged coups in Latin America and who have been corrupt?” asked veteran Salvadoran activist Marta Benavides.

Benavides told IPS she was not against everyone expressing their opinions, “but they should at least show respect. We don’t all agree with what they’re saying: that Latin America is corrupt. It’s a global phenomenon, and here we have to tell the truth.”

That truth, according to her, is that “Latin America is going through a very difficult situation, with different kinds of coups d’etat.”

She clarified that her statement wasn’t meant to defend President Dilma Rousseff, who is facing impeachment for allegedly manipulating the budget, or the governing left-wing Workers’ Party.

“I want people to talk about the real corruption,” she said. “In Brazil those who staged the 1964 coup (which ushered in a dictatorship until 1985) want to return to power to continue destroying everything; but this will affect everyone, and not just Brazil, its people and its resources.”

In Benavides’ view, all of the panelists “were telling lies” and no divergent views were expressed.

But when the women indignantly left the room, they missed the talk given on the same panel by Emilio Álvarez-Icaza, executive secretary of the Inter-American Commission on Human Rights (IACHR), who complained that all of the governments in the Americas – right-wing, left-wing, north and south – financially strangled the IACHR and the Inter-American Court of Human Rights.

Emilio Álvarez-Icaza, executive secretary of the Inter-American Commission on Human Rights (IACHR), the last one on the right, speaking at an International Civil Society Week panel on the situation of activism in Latin America. Credit: Constanza Vieira/IPS

Emilio Álvarez-Icaza, executive secretary of the Inter-American Commission on Human Rights (IACHR), the last one on the right, speaking at an International Civil Society Week panel on the situation of activism in Latin America. Credit: Constanza Vieira/IPS

He warned that “An economic crisis is about to break out in the Inter-American human rights system,” which consists of the IACHR and the Court, two autonomous Organisation of American States (OAS) bodies.

“In the regular financing of the OAS, the IACHR is a six percent priority, and the Inter-American Court, three percent,” said Álvarez-Icaza.

“They say budgets are a clear reflection of priorities. We are a nine percent priority,” he said, referring to these two legal bodies that hold states to account and protect human rights activists and community organisers by means of precautionary measures.

He described as “unacceptable and shameful” that the system “has been maintained with donations from Europe or other actors.”

There were multiple voices in this disparate assembly gathered in the Colombian capital since Sunday Apr. 24. The meeting organised by the global civil society alliance CIVICUS, which carried the hashtag ICSW2016 on the social networks, drew some 900 delegates from more than 100 countries.

The ICSW2016 ended Friday Apr. 29 with the election of a new CIVICUS board of directors.

Tutu Alicante, a human rights lawyer from Equatorial Guinea, is considered an “enemy of the state” and lives in exile in the United States. He told IPS that “we are very isolated from the rest of Africa. We need Latin America’s help to present our cases at a global level.”

Equatorial Guinea’s President Teodoro Obiang has been in power for 37 years. On Sunday Apr. 24 he was reelected for another seven years with over 93 percent of the vote, in elections boycotted by the opposition. His son is vice president and has been groomed to replace him.

“Because of the U.S. and British interests in our oil and gas, we believe that will happen,” Alicante stated.

He said the most interesting aspect of the ICSW2016 was the people he met, representatives of “global civil society working to build a world that is more equitable and fair.”

He added, however, that “indigenous and afro communities were missing.”

“We’re in Colombia, where there is an important afro community that is not here at the assembly,” Alicante said. “But there is a sense that we are growing and a spirit of including more people.”

He was saying this just when one of the most important women in Colombia’s indigenous movement, Leonor Zalabata, came up. A leader of the Arhuaco people of the Sierra Nevada de Santa Marta mountains, she has led protests demanding culturally appropriate education and healthcare, and indigenous autonomy, while organising women in her community.

She was a keynote speaker at the closing ceremony Thursday evening.

A woman with an Arab name and appearance, Raaida Manaa, approached by IPS, turned out to be a Colombian journalist of Lebanese descent who lives in Barranquilla, the main city in this country’s Caribbean region.

She works with the Washington-based International Association for Volunteer Effort.

“The most important” aspect of the ICSW2016 is that it is being held just at this moment in Colombia, whose government is involved in peace talks with the FARC guerrillas. This, she said, underlines the need to set out on the path to peace “in a responsible manner, with a strategy and plan to do things right.”

The title she would use for an article on the ICSW2016 is: “Together, civil society has power.” And the lead would be: “If we work together and connect with what others are doing in other countries, what we do will also make more sense.”

In Colombia there is a large Arab community. Around 1994, the biggest Palestinian population outside the Middle East was living in Colombia, although many fled when the civil war here intensified.

“The peaceful struggle should be the only one,” 2015 Nobel Peace Prize-winner Ali Zeddini of the Tunisian Human Rights League, who took part in the ICSW2016, said Friday morning.

But, he added, “you can’t have a lasting peace if the Palestinian problem is not solved.” Since global pressure managed to put an end to South Africa’s apartheid, the next big task is Palestine, he said.

Zeddini expressed strong support for the Nobel peace prize nomination of Marwan Barghouti, a Palestinian leader serving five consecutive life sentences in an Israeli prison. He was arrested in 2002, during the second Intifada.

 Edited by Estrella Gutiérrez/Translated by Stephanie Wildes

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G-77 Should Adopt South-South Climate Change Program of Action: Ambassador Djoghlafhttp://www.ipsnews.net/2016/04/g-77-should-adopt-south-south-climate-change-program-of-action-ambassador-djoghlaf/?utm_source=rss&utm_medium=rss&utm_campaign=g-77-should-adopt-south-south-climate-change-program-of-action-ambassador-djoghlaf http://www.ipsnews.net/2016/04/g-77-should-adopt-south-south-climate-change-program-of-action-ambassador-djoghlaf/#comments Tue, 26 Apr 2016 18:53:36 +0000 Lyndal Rowlands http://www.ipsnews.net/?p=144835 The beauty of the Paris agreement is that it’s a universal agreement, unlike the Kyoto protocol, said Ambassador Djoghlaf. Credit: Ahmed Djoghlaf.

The beauty of the Paris agreement is that it’s a universal agreement, unlike the Kyoto protocol, said Ambassador Djoghlaf. Credit: Ahmed Djoghlaf.

By Lyndal Rowlands
UNITED NATIONS, Apr 26 2016 (IPS)

The 134 members of the Group of 77 and China (G-77) made their mark on the Paris Climate Change Agreement and should now adopt a program of action to implement it, Ambassador Ahmed Djoghlaf told IPS in a recent interview.

Djoghlaf, of Algeria, was co-chair of the Ad Hoc Working Group on the Durban Platform for Enhanced Action (ADP), together with Daniel Reifsnyder, of the United States, a position which allowed him to “witness very closely” the negotiation of the Paris Agreement.

“As the co-chair of the preparatory committee I can tell you that the G-77 has been a major actor during the  negotiation and a major player for the success of the Paris conference,” said Djoghlaf.

Djoghlaf said that the Group of 77 and China made its mark on the Paris agreement by mobilising a diverse range of countries and sub-groups, to “defend the collective interests of the developing countries.”

The group helped to find balance in the agreement “between mitigation issues that are important for developed countries and adaptation issues that are very close to the heart of the developing countries,” said Djoghlaf.

He also said that the group fought for equity, response measures, loss and damage as well as means of implementation, including financing, capacity building and transfer of technology.

“Those that are suffering the most nowadays are those that have less contributed to climate change crisis and they are using their own limited financial resources to address them, to adapt, to adjust to the consequences created by others,” he said.

Program of Action in Marrakech

“I hope that the G-77 through the leadership of Thailand will be able to take the lead and submit to its partners at the next conference of the parties in Marrakech a draft work program on capacity building for the implementation of the Paris agreement,” said Djoghlaf.

The 22nd meeting of the Conference of Parties (COP22) to the UN Framework Convention on Climate Change (UNFCCC) will be held in Marrakech, Morocco, from 7 to 18 Nov. 2016.

Djoghlaf said the program should address North-South as well as South-South capacity building, which is needed to ensure that developing countries can implement their commitments including on issues related to the finalisation of their nationally determined contributions and preparation of their future contributions.

“It would be important for the developing countries to be able to identify their own capacity building needs and let others do it for them. It will be also important to have a framework to coordinate the South-South cooperation on climate change similar to the Caracas Plan of Action on South-South Cooperation or the Buenos Aires Plan of Action on economic and technical cooperation among developing countries,” he said.

Quoting Victor Hugo Djoghlaf said that “not a single army in the world can stop an idea whose time has come, I do believe when it comes to South-South cooperation on climate change it’s an idea whose time has come also.”

“Within the G-77, the diverse group, you have emerging countries that are now leaders in renewable energy and the energy of tomorrow and the they have I think a responsibility to share their experience and to allow other countries from the same region and the same group to benefit from their experience,” he said.

"It is crystal clear that the Paris agreement will enter into force well before the original expected date of 2020. The clock is ticking and we cannot afford any delay” -- Ambassador Ahmed Djoghlaf

“I also believe that time has come for the G-77 to initiate it’s own program of action on climate change,” he said.

Djoghlaf said that developing countries need capacity building to ensure that they can continue to participate fully in the implementation of the Paris Climate Change Agreement.

Unlike developed countries, which “have fully-fledged ministries dealing with climate change,” he said, “In the South there is not a single country that has a Minister of Climate Change.”

He spoke about how during the negotiations of the Paris agreement many countries of the South had only one focal point and yet sometimes there were 15 meetings taking place at the same time and the meetings also often continued into the night.

It can be difficult for this focal point “to be able to understand and to participate, let alone be heard” when there is a “proliferation of simultaneous meetings,” he said.

Djoghlaf said that countries of the South could help address this disparity by establishing national committees, which include representatives from a number of different ministries.

“There’s not a single sector of activities which is not nowadays affected by the negative impact of climate change,” said Djoghlaf.

“All the sectors need to be engaged and we will succeed to win the battle of climate change when all these ministers, economic ministers and social ministers, will be fully integrating climate change in their planning and in their decision making processes,” he said.

Djoghlaf acknowledged it’s not easy for ministers in developing countries to engage because they have other urgent priorities. “They tend not to see the importance of the impact of climate change because they believe that this is not a priority for them,” he said. Yet there is often evidence that supports a more cross-cutting approach. For example, said Djoghlaf, World Health Organization research, which shows that 7 million people die from air pollution every year, demonstrates that climate change should also be a priority for health ministries.

The beauty of the Paris agreement

Djoghlaf said that the beauty of the Paris agreement is that it’s a universal agreement, unlike the Kyoto protocol. The Paris agreement is “very balanced” and should last for years to come because it takes into in to consideration the evolving capacities and the evolving responsibilities of countries, he said.

“We need a North-South and a South-South global climate solidarity,” said Djoghlaf.

“Without judging the past, who is responsible now, and who is responsible tomorrow, and who is responsible yesterday, I think we are all in the same boat, we are all in the same planet and we have to contribute based on our capacity,” he said.

He described the success of the signing ceremony held here Friday, where in total 175 countries signed and 15 countries deposited their instruments of ratification as “unprecedented”. “This has never happened before,” he said, referring to the developing countries, which also ratified the agreement. “It is a resounding political message and a demonstration of leadership,” he said. “It is crystal clear that the Paris agreement will enter into force well before the original expected date of 2020. The clock is ticking and we cannot afford any delay.”

Djoghlaf also said that he was not concerned about upcoming changes to the United States domestic political situation.

“When you are a party to the Paris agreement you can’t withdraw before three years after its entry into force. In addition I do believe that this historical agreement is in the long term interest of all Parties including the United States of America” he said.

“I believe that this Paris agreement is in the long term strategic interests of every country,” in part because eventually fossil fuel energy is going to disappear.

Investment in renewable energy was six times higher in 2015 than in 2014, he added.

“We tend to ignore the tremendous impact and signal the Paris agreement has already been providing to the business community,” he said.

Another part of the Paris agreement which Djoghlaf is happy about is what he describes as a “fully-fledged article on public awareness and education.”

“It’s to ensure that each and every citizen of the world, in particular the developing countries, are fully aware about the consequences of the climate change and the need for each of us as an individual to make our contribution to address the climate change,” he said.

“There is a need also to educate the people of the world of the need to have a sustainable lifestyle this throw away society can not continue to exist forever and we need to establish a sustainable pattern of production and consumption,” said Djoghlaf.

However Djoghlaf, who was the Executive Secretary of the Convention on Biological Diversity, said that he was concerned that the negotiations in 2015 didn’t adequately reflect the importance of ecosystems and biodiversity.

“Healthy biodiversity and healthy ecosystems have a major role to play to combat climate change,” said Djoghlaf, adding that 30 percent of carbon dioxide is absorbed by forests and 30 percent by oceans.

“For each breath that we have we owe it to the forests, but also to the ocean, also wetlands have a major contribution to make, the peat lands have a major contribution to make, the land itself, the fertile soil of course has a major contribution to play, so biodiversity is part and parcel of the climate global response,” he said.

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Latin America to Redouble Its Climate Efforts in New Yorkhttp://www.ipsnews.net/2016/04/latin-america-to-redouble-its-climate-efforts-at-new-york-ceremony/?utm_source=rss&utm_medium=rss&utm_campaign=latin-america-to-redouble-its-climate-efforts-at-new-york-ceremony http://www.ipsnews.net/2016/04/latin-america-to-redouble-its-climate-efforts-at-new-york-ceremony/#comments Wed, 20 Apr 2016 23:48:16 +0000 Diego Arguedas Ortiz http://www.ipsnews.net/?p=144741 Deforestation, as seen in this part of Rio Branco, the northern Brazilian state of Acre, is one of the main sources of greenhouse gas emissions in Latin America. Credit: Kate Evans/Center for International Forestry Research

Deforestation, as seen in this part of Rio Branco, the northern Brazilian state of Acre, is one of the main sources of greenhouse gas emissions in Latin America. Credit: Kate Evans/Center for International Forestry Research

By Diego Arguedas Ortiz
SAN JOSE, Apr 20 2016 (IPS)

The countries of Latin America will flock to sign the Paris Agreement, in what will be a simple act of protocol with huge political implications: it is the spark that will ignite actions to curb global warming.

More than 160 countries have confirmed their attendance at the ceremony scheduled for Friday, Apr. 22 in New York by United Nations Secretary-General Ban Ki-moon. And eight have announced that they will present the ratification of the agreement during the event, having already completed the internal procedures to approve it.

The countries of Latin America, with the exception of Nicaragua and Ecuador, promised to participate in the collective signing of the historic binding agreement reached by 195 countries on Dec. 12 in the French capital.

Experts consulted by IPS stressed the political symbolism of the ceremony, and said they hoped Latin America would press for rapid implementation of the climate deal. “In New York, the region will underscore the importance of acting with the greatest possible speed, in view of the impacts that we are feeling in each one of our countries.” -- Andrés Pirazzoli

“In New York, the region will underscore the importance of acting with the greatest possible speed, in view of the impacts that we are feeling in each one of our countries,” said Chilean lawyer Andrés Pirazzoli, a former climate change delegate of Chile and an expert in international negotiations.

The countries of Latin America and the Caribbean, many of which are especially vulnerable to the effects of climate change, are calling for the adoption of global measures to curb global warming.

According to a 2014 World Bank report, “In Latin America and the Caribbean temperature and precipitation changes, heat extremes, and the melting of glaciers will have adverse effects on agricultural productivity, hydrological regimes, and biodiversity.”

Pirazzoli said this recognition of the threat posed by climate change in the region would be a bone of contention for the participating countries.

At the Paris Summit or COP 21 – the 21st session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC) – the Chilean expert led the technical team of the Independent Association of Latin America and the Caribbean (AILAC), made up of Chile, Colombia, Costa Rica, Guatemala, Honduras, Panama, Paraguay and Peru.

Pirazzoli said that “if there is one issue that has brought Latin America together, beyond internal ideological questions, it was the issue of vulnerability.”

“That will be a mantra for the region in the negotiations that will follow the signing of the agreement,” which will get underway again in Bonn in May, he added.

Friday’s ceremony is just the first piece in a puzzle that involves the 197 parties to the UNFCCC, in which each one will have to activate its mechanism to achieve ratification of the international agreement.

On Dec. 12, 2015, at the end of COP 21, United Nations Secretary-General Ban Ki-moon (centre) and other dignitaries celebrated the historic Paris Agreement on climate change, to be signed this week in New York. Credit: United Nations

On Dec. 12, 2015, at the end of COP 21, United Nations Secretary-General Ban Ki-moon (centre) and other dignitaries celebrated the historic Paris Agreement on climate change, to be signed this week in New York. Credit: United Nations

In order for the treaty to enter into effect, it must be signed by at least 55 parties accounting for a combined total of at least 55 percent of global greenhouse gas emissions, and this is to happen by 2020, according to what was agreed on at COP 21.

The countries agreed to limit global warming to 2 degrees Celsius by the end of this century relative to pre-industrial levels to prevent “catastrophic and irreversible impacts”.

The agreement set guidelines for the reduction of greenhouse gas emissions, for addressing the negative impacts of global warming, and for financing, to be led by the countries of the industrialised North.

In the region, the process will vary from country to country, but “according to tradition in Latin America, normally these accords have to go through two houses of Congress, which makes the process more complex,” said Pirazzoli.

He pointed out that Mexico and Panama committed to ratifying the agreement this year.

The United Nations reported that the eight countries that will attend the agreement signing ceremony with their ratification instrument in hand are Barbados, Belize and St. Lucia – in this region – along with Fiji, the Maldives, Nauru, Samoa and Tuvalu.

“A story of power of vulnerable countries is beginning to emerge, and instead of coming as victims, they will use this ceremony to show that they want to be in the leadership,” said Costa Rican economist Mónica Araya, another former national climate change negotiator.

Araya heads the non-governmental organisation Nivela and is an adviser to the Climate Vulnerable Forum, a self-defined “leadership group” within the UNFCCC negotiations, which assumes strong, progressive positions.

The economist said the confirmation of their participation in the New York ceremony by almost all of the countries in Latin America was one more sign that the region is waking up.

She concurred with Pirazzoli that Latin America’s leaders are finding points in common that enable them to overcome ideological barriers, at least in this field.

“We have seen new efforts, such as the summit of environment ministers in Cartagena, which set a precedent by creating a climate change action platform for the entire region,” said Araya, referring to the 20th Meeting of the Forum of Ministers of the Environment of Latin America and the Caribbean, held in late March in that Colombian city.

But she said that in order for international efforts to be effective, change must start at home. “Public opinion and the business community should be helped to understand that our parliaments will play a key role” in ratifying the agreement, she added.

Enrique Maurtua, climate change director with the Argentine NGO Environment and Natural Resources Foundation, and a veteran of the climate talks, agreed.

“The signing of the accord is only the second step, after reaching the agreement,” he said. “Without this, we can’t go on to the third, which is ratification – the most important step in order for the accord to go into effect.”

Maurtua said these global processes need to take root at a global level, by improving their Intended Nationally Determined Contributions (INDCs), which nearly the entire region submitted last year, with the exception of Panama, which did so on Apr. 14, and Nicaragua, which said it would not do so.

Although they account for only a small proportion of global greenhouse gas emissions, the region’s countries pledged to reduce them in their INDCs – a numerous group with ambitious goals, including the two biggest economies in the region: Brazil and Mexico.

They also listed climate change adaptation actions, in several cases going beyond the minimum required.

Maurtua was upbeat with regard to the implementation of the Paris Agreement by 2020 and the 2016 negotiating process, which will begin in Bonn in May and will continue until COP 22 is held in Morocco.

“Latin America could very well be an example of the implementation of good practices for achieving sustainable development,” he said.

The absence of Ecuador and Nicaragua is in line with previous positions taken, where they have showed a reluctance to participate in multilateral processes.

After COP 21, Nicaragua said the Paris Agreement did not go far enough.

Edited by Estrella Gutiérrez/Translated by Stephanie Wildes

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Maquilas Help Drive Industrialisation in Paraguayhttp://www.ipsnews.net/2016/04/maquilas-help-drive-industrialisation-in-paraguay/?utm_source=rss&utm_medium=rss&utm_campaign=maquilas-help-drive-industrialisation-in-paraguay http://www.ipsnews.net/2016/04/maquilas-help-drive-industrialisation-in-paraguay/#comments Sat, 16 Apr 2016 01:59:21 +0000 Mario Osava http://www.ipsnews.net/?p=144645 Texcin, the garment plant built by Brazilian company Riachuelo near the airport in Asunción, under Paraguay’s maquila law, which offers tax exemptions and other incentives for export-oriented production. In the foreground a garment worker in training (“entrenamiento”). Credit: Mario Osava/IPS

Texcin, the garment plant built by Brazilian company Riachuelo near the airport in Asunción, under Paraguay’s maquila law, which offers tax exemptions and other incentives for export-oriented production. In the foreground a garment worker in training (“entrenamiento”). Credit: Mario Osava/IPS

By Mario Osava
ASUNCION, Apr 16 2016 (IPS)

“There were cases of people who stopped coming to work after receiving their first wages and then came back a few days later to ask if there was more work,” because they were used to casual work in the informal economy, said Ivonne Ginard.

Ginard, a human resources manager in the textile firm Texcin, was in charge of hiring the plant’s 353 employees and helping them make the transition from informal labour to working in a factory with set schedules, uniforms, safety measures and medical certificates to justify absences.

Texcin, a garment factory near the Asunción airport, is emblematic of the incipient industrialisation process in Paraguay, which is still an agriculture-based economy, where soy and beef are the main exports and informal employment is predominant in the cities.

The plant is a joint venture between members of the Paraguayan business community and Riachuelo, one of the biggest clothing brands in Brazil, where it has 285 stores and two industrial plants. Riachuelo decided to take advantage of the incentives provided by the law on maquila export plants, in effect in Paraguay since 2000, to produce clothing in this neighbouring South American country instead of importing from Asia.

The aim is to increase the number of workers twofold by the end of 2016 and to continue to expand, since the company has the space to build a new plant.

“Paraguay offers abundant, young, easily trained workers, cheap energy, and tax incentives for maquilas and duty-free zones, which make it possible to import raw materials tariff-free,” said Andrés Guynn, one of the Paraguayan partners, who heads Texcin.

“Our production is competitive with costs similar to those of Asia, with a big advantage in terms of time: it takes 90 days for products to be shipped from China to Brazil, while ours get to (the Brazilian city of) São Paulo in 72 hours, by truck,” he said.

“Under the maquila regime, 108 companies set up shop in Paraguay, 62 of them in the last two years, and 80 percent of them come from Brazil,” the director of the maquila sector in the Ministry of Industry and Trade, Ernesto Paredes, told IPS.

Maquila or maquiladora plants are built by foreign corporations, generally in free trade zones. They import materials and equipment duty-free for assembly or manufacturing for re-export, and enjoy other tax breaks and incentives, as well as more flexible labour conditions.

Texcin human resources manager Ivonne Ginard (right), next to the woman who trains the garment workers, Rosa Prieto. “Texcin changed my life,” said Prieto, who was a self-employed seamstress in the informal sector of the economy for 15 years, before she was hired by the company in January 2015. Credit: Mario Osava/IPS

Texcin human resources manager Ivonne Ginard (right), next to the woman who trains the garment workers, Rosa Prieto. “Texcin changed my life,” said Prieto, who was a self-employed seamstress in the informal sector of the economy for 15 years, before she was hired by the company in January 2015. Credit: Mario Osava/IPS

“The maquiladora industry is dynamic, but it does not accept trade union freedom, it does not allow unions to be organised in its factories, which violates constitutional rights,” the president of the Confederation of the Working Class (CCT) labour federation, Julio López, told IPS.

Auto parts factories are predominant in the industry, in terms of both revenue and jobs generated by maquiladoras in Paraguay, Paredes said. He said the sector uses the “just-in-time” delivery system developed by Japan’s auto industry, which is an inventory strategy employed to boost efficiency and reduce waste by receiving goods only as they are needed in the production process, which cuts inventory costs.

The Japanese company Yasaki and Germany’s Leoni have recently set up plants in Paraguay, employing thousands of people, nearly all of them women, in the production of electrical car cables.

And Paraguay now has its first car assembly plant. A national company, Reimplex, began to assemble J2 cars for Chinese auto maker JAC Motors on the outskirts of Asunción on Mar. 28.

Clothing factories also employ large numbers of women.

In addition, the plastics industry is expanding fast in the eastern department of Alto Paraná, on the border with Brazil, Paredes said.

Cheap local labour, which he said is “low-cost not so much because of the wages paid, but due to the low social charges” and low taxes, are especially attractive for Brazilian companies. To that is added the cost of electricity, which is 63 percent cheaper than in Brazil, according to the head of the maquila sector.

One limitation is transport and energy infrastructure. “Roads, ports, highways, real estate – all of this is lacking, although Paraguay has been investing heavily in airports, hotels, and office buildings,” he said.

One solution would be to widen the two-lane highway between Asunción and Ciudad del Este, the country’s two main economic hubs. However, the plan is not to expand the existing road, but “to build a second highway exclusively for trucks and trade,” as well as a second bridge to Brazil, said Paredes.

Texcin’s textile warehouse seen behind a sign announcing the expansion of the plant which was built by Brazilian company Riachuelo with partners in Paraguay on the outskirts of Asunción. Credit: Mario Osava/IPS

Texcin’s textile warehouse seen behind a sign announcing the expansion of the plant which was built by Brazilian company Riachuelo with partners in Paraguay on the outskirts of Asunción. Credit: Mario Osava/IPS

Investment is also needed in another route for the transportation of heavy loads, the Paraguay-Paraná waterway, used to export soy.

“Better signalisation would double its capacity and speed up river traffic,” Gustavo Rojas, a researcher at the Center for Economic Analysis and Dissemination in Paraguay (CADEP), told IPS.

This land-locked country of 6.8 million people has the world’s third-largest river barge fleet, as well as shipyards that build them, which favours an increase in river traffic, Paredes said.

Electricity is, potentially, Paraguay’s biggest comparative advantage, since the country owns half of the energy from two huge hydropower dams: Itaipú, shared with Brazil, and Yacyretá, on the border with Argentina, with the capacity to produce 14,000 and 3,200 MW, respectively.

But it only began to use part of that energy when a power line from Itaipú to Villa Hayes, near Asunción, was completed in October 2013. The power line was financed by a Brazilian fund aimed at narrowing the development gap between countries in the Southern Common Market (Mercosur) trade bloc, made up of Argentina, Brazil, Paraguay, Uruguay and Venezuela.

Without an adequate distribution network, however, the new energy supply did not eliminate problems like the February blackout that left 300,000 homes without power in Greater Asunción.

Achieving a more secure energy supply “is a question of time,” said Guynn, who tried to place his company near the new power line.

The problem is that the national power utility, ANDE, does not have investment capacity, and “distribution is not secure and steady,” said Fernando Masi, founding director of CADEP, which carries out research on public policies and provides graduate studies in economy.

But the broad availability of energy is a new element drawing industries to Paraguay, since the other advantages, such as low labour costs and tax incentives, already existed before.

Cheap energy also tempted the British-Australian multinational metals and mining corporation Rio Tinto, which studied the possibility of producing aluminum in Paraguay, even if it had to ship in the raw material, bauxite, from far away, because electric power is the main cost of the aluminum industry.

But a major public campaign, which collected more than 100,000 signatures, managed to block the project, “which would consume more energy than all of the national industries combined,” while requiring subsidies and employing a relatively small number of people, Mercedes Canese, an engineer who was deputy minister of industry during the government of Fernando Lugo (2008-2012), told IPS.

However, another engineer, Francisco Scorza, who studied the case, said the Rio Tinto project became unviable because “China began to produce very cheap aluminum, at 1,200 dollars a ton, 40 percent less expensive than here, and Paraguay can’t afford to subsidise energy.”

CADEP’s Masi said attracting small and medium-sized industries is better for development and employment, but the maquila sector has limits. The auto parts industry, for example, is limited to producing wiring, “because there is no bilateral agreement with Brazil on the car industry,” he said.

Brazil demands that Paraguay stop imports of used automobiles, “a very high cost for Paraguay to pay,” as it has a large fleet of used Japanese vehicles known as the “Vía Chile” cars because they come into Paraguay through that neighbouring country.

The maquila industry only exported 284 million dollars worth of goods in 2015 – very little in comparison to Paraguay’s overall industrial exports of 3.0 to 3.5 billion dollars, said Masi.

Industrialisation in Paraguay “has taken off, but not at the fast pace that was expected,” he said, adding that improving energy and logistics infrastructure could help.

Edited by Estrella Gutiérrez/Translated by Stephanie Wildes

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Opinion: Africa, the Need for Greater Integrationhttp://www.ipsnews.net/2016/04/opinion-africa-the-need-for-greater-integration/?utm_source=rss&utm_medium=rss&utm_campaign=opinion-africa-the-need-for-greater-integration http://www.ipsnews.net/2016/04/opinion-africa-the-need-for-greater-integration/#comments Tue, 12 Apr 2016 15:17:13 +0000 Roberto Azevedo http://www.ipsnews.net/?p=144577 Roberto Azevêdo is WTO Director-General ]]>

Roberto Azevêdo is WTO Director-General

By Roberto Azevêdo
CAPE TOWN, South Africa, Apr 12 2016 (IPS)

There is a misconception, by some, that the World Trade Organization (WTO) is a barrier to regional integration. It is one of a number of misconceptions that do not match up with the facts like the perception that the WTO is a rich man’s club. Today the WTO has 162 members and rising at all stages of development. 43 of those members are African countries and rising. The organization now covers around 98% of world trade. It is a truly global organization, one where everybody has an equal say. And it is an organization which supports regional integration in Africa. Indeed, I would say that the need for better integration across the continent is indisputable.

Roberto Azevêdo

Roberto Azevêdo

It’s clear in the fact that intra-African trade remains just a tenth of Africa’s total trade. Or in the fact that the cost of moving goods within Africa is twice the global average. Or in the fact that an African company faces an average tariff of 8.7% when selling within Africa, against 2.5% elsewhere.

We need to tackle these barriers. And I would argue that doing this will help drive Africa’s integration globally. The statistics I just quoted show that the vast majority of Africa’s trade is with the rest of the world. And existing WTO rules give a great deal of flexibility for members to pursue regional agreements. This is plain in the proliferation of such agreements that we have seen in recent years. But they are not a new phenomenon.

Indeed, regional initiatives such as the Southern African Customs Union predate the multilateral system by some decades. Different kinds of trade initiatives have always co-existed with the multilateral system. It is important that they are coherent and compatible, so that they can all help to spread the benefits of trade.

The economic map of Africa today is defined by these efforts: from Southern African Development Community (SADC), Common Market for Eastern and Southern Africa (COMESA), Economic Community of West African States (ECOWAS), and the East African Community (EAC) to the Tripartite Free Trade Agreement and, in due course, the Continental Free Trade Area.

The WTO supports these efforts. And the WTO’s Trade Facilitation Agreement provides a very practical mechanism for taking them forward. This Agreement, finalised in 2013, is about simplifying and standardising customs procedures, thereby reducing the time and cost of moving goods across borders. We expect that, when fully implemented, the Agreement could reduce trade costs by an average of 14.5%.

The East African Community has already applied a range of trade facilitation reforms, which have delivered remarkable results in cutting the time and expense of moving goods between countries. Rolling out such measures would unlock the potential of many traders across the continent especially small and medium-sized enterprises. But, in order to benefit from the Agreement, first it must be ratified.

The Trade Facilitation Agreement is notable for the benefits it will deliver but also because it was the first multilaterally agreed deal in the WTO’s history. We held another ministerial conference in December last year, in Nairobi and WTO members agreed to eliminate agricultural export subsidies. This helps to level the playing field, so that farmers in developing countries may compete on better terms.

Of course domestic subsidies still exist, so there is much work still to do. But that doesn’t change the fact that abolishing export subsidies is a big step. This is something which developing countries have been fighting for over many years.

In fact, it is the biggest reform of agricultural trade rules for 20 years. And it is a key target of the United Nations’s new Sustainable Development Goals delivered just three months after the goals were agreed. In the context of regional integration it is important to recognise that results like this could only be delivered at the global level. That’s why we need trade initiatives on all levels to be working well.

And this brings me to the other topic before us today the Doha round of world trade negotiations. This action on export competition was part of the Doha round as were other elements that were delivered in Nairobi, relating to food security and Least Developed Countries (LDCs).Notwithstanding these outcomes, clearly progress on the round as a whole has been too slow. It has not delivered as we had hoped when the round was launched in 2001.

The future of Doha was a major feature of the debate in Nairobi, and in the end members could not agree on a common position. Members are committed to keeping development at the centre of our work. They are also committed to addressing the remaining Doha issues, such as agriculture (particularly domestic subsidies), market access for industrial goods and services.

But, they do not agree on how to tackle them. And, at the same time, some members would like to start discussing other issues, in addition to the remaining Doha issues. Members have wisely decided to reflect on how these differences might be overcome and how we might collectively move the agenda forward.

So we are in a very important period right now. Members are talking to each other about how to advance the Doha issues and, potentially, how to move forward on other issues as well. Of course the economic outlook is tough at present, not least given the slump in commodity prices.

To recall Nelson Mandela’s words, there is much ’wise work’ to be done.

(End)

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Focusing on Future of Food: What’s Next for Global Agricultural Research?http://www.ipsnews.net/2016/04/focusing-on-future-of-food-whats-next-for-global-agricultural-research/?utm_source=rss&utm_medium=rss&utm_campaign=focusing-on-future-of-food-whats-next-for-global-agricultural-research http://www.ipsnews.net/2016/04/focusing-on-future-of-food-whats-next-for-global-agricultural-research/#comments Mon, 11 Apr 2016 17:27:53 +0000 Kwesi Atta-Krah http://www.ipsnews.net/?p=144562 Kwesi Atta-Krah is the Director of the CGIAR Research Program on Integrated Systems for the Humid Tropics (Humidtropics) – a program led by the International Institute of Tropical Agriculture (IITA).]]>

Kwesi Atta-Krah is the Director of the CGIAR Research Program on Integrated Systems for the Humid Tropics (Humidtropics) – a program led by the International Institute of Tropical Agriculture (IITA).

By Kwesi Atta-Krah
JOHANNESBURG, Apr 11 2016 (IPS)

Food security scientists from around the globe gathered in Johannesburg last week with one objective: to work towards the transformation of agriculture as engine for growth in developing regions of the world. The gathering was also an opportunity to examine what farmers need to prosper in the face of social and environmental challenges.

Kwesi Atta-Krah

Kwesi Atta-Krah

The Third Global Conference on Agricultural Research for Development (GCARD3) was the culmination of a two-year consultation process with national and regional stakeholders, and a chance to set a new agenda for today’s agricultural research, to ensure it meets the challenges of development for tomorrow.

A major theme running throughout the conference has been ensuring that “no one is left behind” in the unfolding agricultural revolution, and that research remains “future-focused”. We know that sudden shocks such as natural disasters and pest outbreaks can cripple agricultural production – just look at the impact El Niño-induced drought is having on farmers across southern Africa.

We therefore need to be investing in forward-thinking programs that will help communities prepare for such events. However this should not be just a case of researchers thinking for communities, but also of supporting communities to engage in the process of designing desired futures taking into account climate change and other scenarios.

In Africa alone, CGIAR’s global network of research centers is already working on a number of programs to make this happen. For example, a project is under way in Nigeria to map flooding patterns to guide decision-making on future flood response. It will also identify flood capture and storage solutions for flood-recession agriculture and dry-season farming.

Improving access to climate information is also going to be critical, to help farmers maintain their yields in the face of erratic weather patterns. In collaboration with AGRHYMET and the National Meteorological Services of several countries (such as Madagascar, Rwanda, Ethiopia, Tanzania), CGIAR is channelling climate information directly into farmers’ hands across Africa.

By combining traditional and scientific knowledge, locally specific forecasts are tailored to meet farmers’ needs and delivered via mobile phone and radio broadcasts. Farmers benefit from tailored information about what to plant, when to plant, when to fertilise and when to harvest, and are trained in how to interpret and apply the forecasts to their day-to-day farming.

Another overwhelmingly supported take away from the conference was the need to change our mindsets and recognise the yet untapped potential of youth for realising agricultural development, and also providing employment to themselves and others. Two dynamic young speakers (from the Young Professionals for Agricultural Development (YPARD) and Makolobane Farmers Enterprises) urged the audience to stop referring to youth as “leaders of tomorrow” and recognise their role as “leaders of today”.

When one stops to consider that Africa has some 200 million youth in need of employment, and Africa’s food and beverage markets have the potential to be worth US$1 trillion by 2030 – it is an obvious action point to equip young people with the skills they need to participate in this growing market.

Significant investment in training and equipment is required, to make local production, processing and marketing of these foods an attractive choice for young entrepreneurs. In her speech, the young Managing Director of Makolobane Farmers Enterprises, Dimakatso Sekhoto, highlighted the need for more young people to be able to access finance to support their businesses.

Building capacities of the youth in the area of business skills, entrepreneurship, leadership and personal development came across from a number of young people attending GCARD3 as essential support factors. For example, training to write business plans, so that young people are able to go to banks and ask for loans, backed up with the appropriate paperwork and planning, will be a critical step towards this.

It is encouraging that several initiatives are springing up aimed at supporting the “Youth in Agriculture” mission. Examples are the YPARD initiative being implemented by the Global Forum on Agricultural Research (GFAR), in various countries around the world. In 2012, the International Institute of Tropical Agriculture (IITA) in Ibadan, Nigeria, also launched the IITA Youth Agripreneurs (IYA) initiative.

The program is aimed at exposing young people to the opportunities inherent in agriculture for job creation and employment, and encouraging them to explore the various channels that are open to business in agriculture. These include areas such as the specialization and production of quality seeds; value addition through processing; fisheries and brood stock production; marketing and use of ICT in agribusiness.

At IITA, we are investing heavily in this kind of preparation for young “agripreneurs” to enter the market. The IYA initiative has now been replicated in five other countries: Democratic Republic of Congo (DRC), Uganda, Tanzania, Kenya and Zambia. Many more countries are on the horizon.

In DRC, for example, the IITA-Kalambo Youth Agripreneurs (IKYA), a group of young and enterprising graduates engaged in agribusiness, aim to build agribusiness enterprises for themselves and serve as a model to other youth. Formally launched in April 2014 as an offshoot of IYA, the group has a current membership of 32 young “Business Builders”, aged between 25-32 years old from different backgrounds.

The activities of the group cut across the value chains of different crops including cassava, maize, beans and soybeans. The group has engaged in different profitable agriculture business enterprises, including production and sales of agricultural commodities and vegetables, such as agro-processing of cassava and maize, production of high-quality maize flour and cassava flour and starch, as well as fisheries.

Aiming to increase their incomes, the young and enterprising members of IKYA have also increased their business opportunities by going into value-addition activities through the development and marketing of nutritious cassava-soybean agro-foods products, aimed at improving the nutritional diversity of household diets.

In addition to this type of program, several CGIAR centers now have business incubation platforms that develop efficient manufacturing methods that can be replicated by the private sector. One new business incubation hub in Uganda – Afri Banana Products Ltd – has nurtured 39 entrepreneurs; commercialized six technologies and helped generate employment for over 420 people.

New technologies are being tested, that reduce the drudgery of agro-processing and improve efficiency, such as a mechanical sheller that can shell 18 times more groundnuts in one hour than hand shelling, and processors that can turn cassava peels into high quality animal feed. The Business Incubation Platform (BIP) of IITA in Nigeria has set up mini plants for the production of key agricultural inputs, as models for private sector engagement.

A key product from the IITA BIP is aflasafeTM for addressing the problem of aflatoxin contamination in grain and other crops. The aflasafeTM plant produces up to 40 tons of aflasafeTM a day and the BIP’s main goal is to get interested parties to invest in plant construction and laboratories all over Africa.

The GCARD process is designed to make sure that the scientists working on solutions to feed the world are listening to the needs of farmers, and other stakeholders on the ground. The national consultations have given CGIAR research centers around the world a refreshed plan of action for the countries in which they work.

Priorities such as preparing for future risks and consciously leveraging the potential of youth to catalyse agribusiness are going to be two important steps paving the way through the next decade of agricultural research. We are excited to move forward with this new era, towards a world were healthy, sustainable diets are provided for all.

(End)

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Interoceanic Canal Bogged Down in Nicaraguahttp://www.ipsnews.net/2016/04/interoceanic-canal-bogged-down-in-nicaragua/?utm_source=rss&utm_medium=rss&utm_campaign=interoceanic-canal-bogged-down-in-nicaragua http://www.ipsnews.net/2016/04/interoceanic-canal-bogged-down-in-nicaragua/#comments Fri, 08 Apr 2016 23:58:54 +0000 Jose Adan Silva http://www.ipsnews.net/?p=144534 http://www.ipsnews.net/2016/04/interoceanic-canal-bogged-down-in-nicaragua/feed/ 1 Turning to Agriculturehttp://www.ipsnews.net/2016/04/need-to-encourage-agriculture/?utm_source=rss&utm_medium=rss&utm_campaign=need-to-encourage-agriculture http://www.ipsnews.net/2016/04/need-to-encourage-agriculture/#comments Fri, 08 Apr 2016 05:45:44 +0000 Moyiga Nduru http://www.ipsnews.net/?p=144529 A woman weeds a sesame crop field in South Sudan's Eastern Equatoria state. Credit: Charlton Doki/IPS

A woman weeds a sesame crop field in South Sudan's Eastern Equatoria state. Credit: Charlton Doki/IPS

By Moyiga Nduru
JUBA, South Sudan, Apr 8 2016 (IPS)

Facing an unprecedented economic crisis, South Sudan — the newest nation of the world — has urged its 12 million inhabitants to turn to agriculture instead of depending on declining oil revenues.

Before the fall of oil prices below $30 a barrel in the international market, oil-rich South Sudan used to import virtually all of its basic requirements from overseas.

Chicken came from Brazil. Tomatoes, onions, maize flour, cooking oil, dairy products and beans are still being imported from neighbouring Uganda. China and Dubai export a variety of goods such as soft drinks, smart phones as well as construction materials.

All of this is unsustainable and worries the government. South Sudan has ignored agriculture since it achieved its independence in July 2011. Up to 75 per cent of the country’s land area is suitable for farming.

“South Sudan has virgin land. Yet we import most of our food from neighbouring countries,” finance minister, David Deng Athorbei, complained during a meeting organised in the national capital Juba recently to address the deteriorating economic situation in the country.

Every year, South Sudan spends between US$200-300 million on food imports, according to estimates for 2013 provided by the Abidjan-based African Development Bank (AFDB).

“South Sudan currently imports as much as 50 per cent of its needs, including 40 per cent of its cereals from neighbouring countries, particularly Kenya, Uganda and Ethiopia”, according to AFDB.

During the first two years of independence, the country was producing nearly 245,000 barrels of crude oil per day, raking in billions of dollars in revenue annually. As a result, the elite saw no value in labour-intensive activity like farming.

That is now changing. A drop in the oil output, a decline in global oil prices and the devastating conflict in South Sudan, as well as an acute scarcity of hard currency have triggered shortages of goods in the market.

South Sudan, which currently produces 165,000 barrel of crude oil per day, depends on oil revenue for nearly 98 per cent of the total government budget.

“We must diversify. We should not depend on one commodity — oil. We have gold in Kapoeta (on the border with Kenya). We have cattle,” said Gabriel Alak, a senior official of the ruling Sudan People’s Liberation Movement (SPLM) on a popular programme, Face the Nation, on the state-owned South Sudan Television recently.

Campaigners are now focusing on food production to mitigate the impact of a devastating conflict that erupted in Juba in December 2013. The violence spread quickly to oil-producing states of Jonglei, Unity and Upper Nile.

The fighting has left hundreds of thousands of people in need of humanitarian assistance.

At the height of the oil boom, South Sudanese businesspeople had directed their energy toward trade, ignoring agriculture.

“The business of trade is over. We now need to embark on the business of production. We have to change our ways of doing business. Let’s start with agriculture,” Athorbei advised.

In April 2015, President Salva Kiir donated 1,000 tractors to farmers around the country. He also set up the country’s first food security council headed by himself.

“I am determined to end hunger and malnutrition in the Republic of South Sudan,” Kiir said during the launch of the tractors in Juba.

“We have vast fertile lands, abundant water and climate suitable for production of wide variety of food and cash crops but the country still faces enormous challenges which prevent it from realising its full potential,” he said.

“Experts estimate that up to 300,000 metric tonnes of fish could be harvested on a sustainable basis from its share at the River Nile swamps and tributaries,” Kiir disclosed.

South Sudan produces some food crops, but the food is rotting in the bush due to poor road network to transport the commodities to the market.

Athorbei said he would set aside some money in the financial year 2015/2016 to boost agriculture. He did not say how much he would allocate.

With South Sudan joining the East African Community (EAC) on 2 March 2016, Juba hopes to invite farmers across the region to till the country’s vast lands. “This will cut transport costs and reduce food prices,” vice-president James Wani Igga told a parliamentary caucus of the ruling SPLM in Juba on March 10, 2016.

EAC comprises Kenya, Uganda, Tanzania, Rwanda, Burundi and now South Sudan, with a combined population of more than 157 million.

As South Sudan works out plan to fix agriculture, prices have continued to spiral beyond the reach of the poor. The crisis has prompted parliament to urge government to reduce inflation to mitigate the sufferings of ordinary persons.

“There is urgent need to mobilise up to US $20 million for the importation of food commodities and medicines within a period of one month. The food commodities shall be sold through established consumer cooperative network,” the chairperson for the committee for economy, development and finance in parliament, Goc Makuach Mayol, said in a 14-page report on March 7, 2016.

The parliament has also called for a probe into a US$70 million, which was disbursed by an agency known as “financial auction” to commercial banks and forex bureaux with instructions by the central bank to allocate 50 per cent for importing food commodities, 30 per cent for industrial inputs and 20 per cent for school fees and medical treatment overseas.

The parliament did not indicate when the money was disbursed. But it has demanded for a record showing how the money was spent.

(End)

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OPINION: Ignore Standard Good Governance Prescriptions To Accelerate Developmenthttp://www.ipsnews.net/2016/03/opinion-ignore-standard-good-governance-prescriptions-to-accelerate-development-2/?utm_source=rss&utm_medium=rss&utm_campaign=opinion-ignore-standard-good-governance-prescriptions-to-accelerate-development-2 http://www.ipsnews.net/2016/03/opinion-ignore-standard-good-governance-prescriptions-to-accelerate-development-2/#comments Thu, 31 Mar 2016 12:09:13 +0000 Anis Chowdhury and Jomo Kwame Sundaram http://www.ipsnews.net/?p=144423 Jomo Kwame Sundaram was UN Assistant Secretary General for Economic Development. Anis Chowdhury held various senior positions in the United Nations Secretariat in New York and Bangkok.]]>

Jomo Kwame Sundaram was UN Assistant Secretary General for Economic Development. Anis Chowdhury held various senior positions in the United Nations Secretariat in New York and Bangkok.

By Anis Chowdhury and Jomo Kwame Sundaram
KUALA LUMPUR, Malaysia, Mar 31 2016 (IPS)

Many well-meaning people believe that “good governance” is key to inclusive development. But research claiming that “good governance” is essential for rapid growth suffers from serious methodological or conceptual limitations. Existing definitions are extremely broad, suffer from functionalist tautology, or mainly refer to corruption.

Defining Good Governance

Invoking a functionalist definition (such as ‘good governance’ is “good-for-economic-development”), one cannot define a country’s ‘quality of government’ without measuring its effects. As The Economist (June 4, 2005) noted, defining ‘good governance’ as “good-for-economic-development” may generate tautological explanations and meaningless policy implications: “What is required for growth? Good governance. And what counts as good governance? Whatever promotes growth. And what is required for growth?”

Attempts to define Quality of Governance (QoG) as multi-faceted also suffer from tautology: “What is required for the quality of life enjoyed by citizens? Quality of governance. What is quality of governance? That which promotes the quality of life. . . .”.

If good governance or “QoG is everything, then maybe it is nothing”. Those who have defined ‘good governance’ as what can be shown to be “good for economic development” illustrate this problem. Many important non-economic attributes of good governance, such as trust and subjective measures of well-being, are left out by such definitions.

Thus, ‘good governance’ cannot be defined precisely, and hence, cannot be meaningfully or usefully monitored. Of course, the dire conditions typically associated with failed states probably preclude most economic or social progress, and cause declining living standards. Even recent World Bank research has been sceptical about the World Bank’s own frequently cited World Governance Indicators (WGIs), observing “there is little if any evidence on the concept validity of the six WGI indexes”.

The WGIs do not take into account country-specific challenges and environments, which could be different, not only between developing and developed countries, but also among developing countries. They also suffer from the typical biases of perceptions-based subjective measures. There is also no historical evidence that limited government is better for development — a premise of the WGIs. The view that the existence of government failures implies that minimalist government is best for development has no factual basis.

Growth

Many countries that have performed well in terms of growth, structural transformation and equity, have fallen short on the most widely used “good governance” indicators. Also, not all good governance reforms are similarly feasible or beneficial, let alone necessary or desirable in all circumstances.

For example, the United States and the Republic of Korea did not improve governance significantly until they had become quite affluent. Contrary to the often exaggerated claims about how much ‘institutions matter’, greater transparency, accountability and participation are often a consequence, rather than a direct cause of faster development.

Instead, all the ostensible evidence actually links good governance indicators to income levels. Observing the absence of any strong evidence relating standard good governance criteria to growth, Dani Rodrik notes that “the incontrovertible long-run association between good governance and high incomes provides very little guidance for appropriate strategies to induce high growth”.

Poor countries suffer a multitude of constraints, and effective growth acceleration interventions must address the most binding growth bottlenecks. Thus, as a rule, broad good governance reforms are neither necessary nor sufficient for growth.

Corruption

The popular governance focus on corruption presumes that government policy discretion and interventions necessarily lead to corruption and abuse even though there is no factual basis for this presumption. Small governments are not synonymous with the absence of corruption while countries with very low levels of corruption have relatively large governments, as in Scandinavia and the Netherlands.

Also, defining good governance simply in terms of the absence of corruption is not very useful. While corruption is antithetical to good governance, good governance implies much more than merely the absence of corruption, clientelism, nepotism, cronyism, patronage, discrimination, and regulatory or policy capture.

If good governance indicators suffer from measurement problems, and if the causality from good governance to economic growth cannot be ascertained, is there any causal link between economic growth and corruption? This is relevant, as in practice, the good governance agenda often focuses mostly on anti-corruption measures.

Conceivably, corruption adversely affects development in many different ways, especially if it diverts resources that would otherwise be invested productively. However, the evidence does not show anti-corruption measures accelerating economic growth. Rather, while all corruption is damaging in some way, and is hence undesirable, some types of corruption are much more damaging than others.

Claiming to fight corruption in developing countries generally — by implementing a laundry list of desired governance reforms — seems laudable, impressive and deserving of support, but such efforts typically ignore more feasible and targeted policies that can improve economic performance.

Necessary?

The World Bank’s 1997 World Development Report advised developing countries to pay attention to 45 aspects of good governance. By 2002, the list had grown to 116 items. Countries wanting to improve their governance must undertake a great deal more as good governance advocates continue to extend their indicators lists. And the longer they wait, the more they will need to do!

Unfortunately, the long and lengthening agenda often means that a multitude of governance reforms need to be undertaken urgently, typically with little thought to their sequencing, interdependence, or relative contributions to reforming governments to be more efficient, effective and responsive, let alone to accelerate development and alleviate poverty.

Among the multitude of governance reforms deemed necessary, there is typically little guidance about what is considered essential and what is not, what should come first and what should follow, what can be achieved in the short term and what can only be achieved over the longer term, what is feasible and what is not.

The presumption that good governance accelerates growth, and hence, that comprehensive institutional reform is a pre-requisite for development continues to lose support. Large-scale institutional transformation of the type envisioned by the good governance agenda has never been a prerequisite for accelerating economic growth or poverty reduction.

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Need for an Urgent Revision to Bond Contracts and a Debt Workout Mechanismhttp://www.ipsnews.net/2016/03/need-for-an-urgent-revision-to-bond-contracts-and-a-debt-workout-mechanism-2/?utm_source=rss&utm_medium=rss&utm_campaign=need-for-an-urgent-revision-to-bond-contracts-and-a-debt-workout-mechanism-2 http://www.ipsnews.net/2016/03/need-for-an-urgent-revision-to-bond-contracts-and-a-debt-workout-mechanism-2/#comments Sun, 27 Mar 2016 08:22:06 +0000 Yuefen Li http://www.ipsnews.net/?p=144382 http://www.southcentre.int/category/publications/southviews/]]>

Yuefen Li is Special Advisor on Economics and Development Finance of the South Centre For more information see http://www.southcentre.int/category/publications/southviews/

By Yuefen Li
GENEVA, Mar 27 2016 (IPS)

Argentina signed an agreement in principle on 29 February 2016 with four “super holdout” hedge funds including NML Capital Ltd, Aurelius Capital, Davidson Kempner and Bracebridge Capital. Buenos Aires would pay them a total of about 4.65 billion dollars, amounting to 75 percent of the principal and interest of all their claims of Argentina’s bonds that were defaulted on during the 2001 debt crisis. This deal would allow the return of Argentina to the international capital market after more than 15 years of exclusion.

Yuefen Li

Yuefen Li

The payment is to be made in cash before 14 April 2016, provided that Argentina’s Congress approves the repeal of Argentina’s domestic laws, namely the Lock Law and the Sovereign Payment Law, which prohibit the country from proposing terms to the holdouts that are better than those Argentina offered to its creditors in earlier restructurings.

The reason to call the four hedge funds as “super holdouts” is because they are the largest, the most combative and the most tenacious holdout creditors. Argentina floated exchange bonds in 2005 and then again in 2010 after it defaulted during the 2001 debt crisis on its bonds that were valued at nearly 100 billion dollars. Ninety-three percent of the holders of Argentine restructured sovereign bonds accepted the exchange proposals at a considerable “haircut” (i.e. discount rate) of about 65%.ed bonds). The remaining 7% of the bond holders turned down the offers.

In 2003, NML Capital Ltd first sued Argentina for repayment of 100% of the face value of the bonds they hold. As a result of the suit, U.S. District Judge Thomas Griesa issued his pari passu ruling which prohibited Argentina from servicing its bonds before paying the holdouts. This led Argentina to default on its debt again in 2014.

To end the stalemate, the newly elected President of Argentina, Mauricio Macri, made resolving the holdout dispute a priority and in February 2016 offered to pay 6.5 billion dollars to the group of six hedge fund holdouts. Two of the funds accepted the offer but not NML and three other funds which asked for better terms.

Yet the tactics and the business model the “super holdouts” used to get a windfall out the legal battle as well the legal precedence this case left behind may have potential negative systemic impact on future sovereign debt workout. How to mitigate the negative impact and make future debt workout timely and orderly?

Current efforts have concentrated on making it more difficult for holdouts to rush to the court room through strengthening current contract clauses. However, the financial incentives to be “super holdouts” are immense.
However, NML and other holdout hedge funds have done everything within the law. Purchase of sovereign bonds on the secondary market at discount rates may be legal, but one can say that the business model of specializing in purchasing hugely undervalued bonds for the purpose of resorting to litigation and other means to force the distressed governments to pay the full face value is not ethical because it is at the expense of the ordinary tax payers and the well being of a sovereign state. Additional, Judge Griesa’s pari passu injunction is a strong leverage for the holdouts against the bond issuer. This injunction may still be held as a precedence and be resorted to in the future-a bet for bond issuer to lose the case.

Three approaches may be of value to consider for the purpose of reducing the recurrences of the NML-style “super holdouts”.

One approach is to reduce incentives for holdouts. It is common business practice for goods and services bought at huge discount in retail stores or via internet to have clear stipulations that they are either not refundable or cannot be changed or returned. People take it for granted that it is a lawful and correct business practice. To buy things at Christmas sales and go back to the stores and request for refund of the full original price of the products would be considered as unethical. Why then is it so unlawful to reject the request of the “super holdout” to get paid 100% when the bonds were bought at a fraction of their face value? Because sovereign bond contracts never mention bonds bought at very deep discount at the secondary market would be treated differently at times of debt restructuring, the issuing State then gets bound to respect the bond contract and pay it at face value.

In the absence of a multilateral legal framework on sovereign debt restructuring mechanism, reducing incentives may be done through revising the contractual terms for the bonds. In the case when the bonds were bought at a steep discount, there could be a contractual clause to limit the margin of returns to minimize the likelihood of litigating for 100% repayment. Consideration could be given to add a clause to bond contracts to the effect that “in case of a debt restructuring, the bondholders would be paid back no higher than X% of the purchase price of the bond.” The percentage could be a range and take into consideration the past holdout cases together with haircut levels of historical debt restructuring incidences. The range or specific percentage should allow sufficient profit margin and avoid the possibility of moral hazard of strategic default. In this way, secondary market operations would not be disrupted and hopefully the incentives for super holdout could be diminished.

Other ways of reducing incentives for super holdout should be examined. For instance, the statutory penalty interest rates of some of the bonds Elliott Management holds are exorbitantly high.

According to the Wall Street Journal, these bonds would bring 10-15 times of return to Elliott Management. These kinds of arrangements give insane incentives to holdout bond holders.

Another way out is to explore whether it is really beneficial for the stability of the international financial market not to regulate hedge funds specialized in debt holdout. At a time of increased social responsibilities for the institutions of the real economy, more regulations in the banking sector and more specific codes of conduct for various business sectors, should there also be some regulations and codes of conduct with respect to these hedge funds?

Finally, there have been repeated international efforts to establish an international debt workout regime or legal framework to cope with systemic issues relating to the “too late and too little” phenomenon for debt restructurings as well as the holdout problem. The IMF tried in 2003. The United Nations General Assembly set up an Ad Hoc Committee mandated to create a multilateral legal framework for sovereign debt restructurings in September 2014.

As one outcome, in 2015 the Committee formulated the ‘Basic Principles on Sovereign Debt Restructuring’ based on years of research and consensus building in UNCTAD. However, political resistance from the developed countries has made it difficult for the United Nations to push the work to a more inclusive and substantive phase. The Argentina case has proved once again the need of a debt workout mechanism.

(End)

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Food Insecurity in the Far Northhttp://www.ipsnews.net/2016/03/food-insecurity-in-the-far-north/?utm_source=rss&utm_medium=rss&utm_campaign=food-insecurity-in-the-far-north http://www.ipsnews.net/2016/03/food-insecurity-in-the-far-north/#comments Fri, 18 Mar 2016 06:52:41 +0000 Mbom Sixtus Yaounde http://www.ipsnews.net/?p=144237 http://www.ipsnews.net/2016/03/food-insecurity-in-the-far-north/feed/ 0 Improving Rural Livelihoods Boost Agrarian Economieshttp://www.ipsnews.net/2016/03/improving-rural-livelihoods-boosts-agrarian-economies/?utm_source=rss&utm_medium=rss&utm_campaign=improving-rural-livelihoods-boosts-agrarian-economies http://www.ipsnews.net/2016/03/improving-rural-livelihoods-boosts-agrarian-economies/#comments Wed, 16 Mar 2016 06:30:37 +0000 Miriam Gathigah http://www.ipsnews.net/?p=144198 http://www.ipsnews.net/2016/03/improving-rural-livelihoods-boosts-agrarian-economies/feed/ 0 Panama’s Expanded Canal Faces a Challenging Scenariohttp://www.ipsnews.net/2016/03/panamas-expanded-canal-faces-a-challenging-scenario/?utm_source=rss&utm_medium=rss&utm_campaign=panamas-expanded-canal-faces-a-challenging-scenario http://www.ipsnews.net/2016/03/panamas-expanded-canal-faces-a-challenging-scenario/#comments Fri, 04 Mar 2016 16:44:21 +0000 Iralis Fragiel http://www.ipsnews.net/?p=144076 Two ships go through the Miraflores locks on the Pacific side of the Panama Canal, which raise or lower vessels 16.5 metres and take 40 minutes to pass through. Credit: Iralís Fragiel/IPS

Two ships go through the Miraflores locks on the Pacific side of the Panama Canal, which raise or lower vessels 16.5 metres and take 40 minutes to pass through. Credit: Iralís Fragiel/IPS

By Iralís Fragiel
PANAMA CITY, Mar 4 2016 (IPS)

When the new locks of the expanded Panama Canal begin operations, they will do so amidst numerous challenges, because of the storm clouds hanging over the global economy, especially China. But local authorities and experts are not worried about the possible impact on the expanded canal.

The slowdown in the Chinese economy, the second largest client of the Panama Canal, transporting 48.42 million tons in 2015, is one of the factors causing concern regarding this motor of the Panamanian economy, which last grew six percent, the highest rate in Latin America.

But the start of operations of the expanded canal, due in May or June, does not worry Luis Ferreira, spokesman for the Panama Canal Authority (ACP), an autonomous government agency.“When there were economic problems in the past, we would lose basically two to three percent of the cargo; the same thing might happen this time, but we don’t expect a substantial decrease, unless there is an all-out recession in China.” – Luis Ferreira

“When there were economic problems in the past, we would lose basically two to three percent of the cargo; the same thing might happen this time, but we don’t expect a substantial decrease, unless there is an all-out recession in China,” he said in an interview with IPS.

In 2015, China’s GDP grew 6.9 percent, compared to 7.3 percent in 2014, confirming the slowdown after years of double-digit growth.

The expansion of the 80-km canal, which turned 100 years old in 2014 and which handles approximately five percent of global trade, involved an investment of 5.25 billion dollars. Work began on Sep. 3, 2007.

With this megaproject, carried out by Grupo Unidos por el Canal (GUPC), the consortium led by Spanish construction firm Sacyr, Panama hopes to increase daily ship traffic from 35- 40 to 48-51.

The canal will also be able to accommodate larger vessels. Currently, it can only handle ships with a cargo capacity of up to 5,000 tons, but once the expansion is complete New Panamax vessels with a capacity of up to 13,000 tons will be able to go through the canal.

For Panama’s productive sectors, the expansion of the canal holds out the promise of economic growth.

The ACP’s team of experts in foreign trade told IPS that the weakening of the global economy in 2015 did not affect the canal, and that no impact is expected this year either.

“The volumes of raw materials heading for China for industrial use, such as coal and iron ore, are not significant (for the canal), since there are closer sources in Australia and Brazil, which do not use the waterway,” the ACP experts stated in their collective response to IPS.

Meanwhile, the volumes of grains, especially soy, grew at a strong pace in the last few years, due to the rising demand for food in China.

The experts also said the expansion “will open up new opportunities for trade flows of non-traditional products, such as liquefied natural gas, and will offer economies of scale that will make the Panama Canal route more attractive for segments such as container vessels and dry bulk cargo ships.”

The new locks in Cocolí, on the Pacific Ocean, have 16 rolling gates. Each chamber is 427 metres long by 55 metres wide and 18.3 metres deep. The expanded Panama Canal will be able to handle New Panamax vessels with a capacity of up to 13,000 tons, up from the current 5,000 ton limit. Credit: Iralís Fragiel/IPS

The new locks in Cocolí, on the Pacific Ocean, have 16 rolling gates. Each chamber is 427 metres long by 55 metres wide and 18.3 metres deep. The expanded Panama Canal will be able to handle New Panamax vessels with a capacity of up to 13,000 tons, up from the current 5,000 ton limit. Credit: Iralís Fragiel/IPS

Cargo tonnage by origin and destination has remained steady over the last three years, according to the ACP. The United States remains the largest client of the canal, with a total cargo of 160.78 million tons in 2015.

The cargo traded between the two leading clients reflects this stability. From China to the United States, 10.37 million tons were shipped through the canal in 2013, 10.96 million in 2014 and 10.91 million in 2015. And from the United States to China, 24.95 million tons were shipped in 2013, 30.77 million in 2014 and 30.20 million in 2015.

Given the economic outlook in China and changes in the energy sources used, the ACP is also getting ready for traffic of liquefied natural gas carriers.

“An incursion into new areas of business that reinforce the transportation and logistics industries is being evaluated, such as the case of the Corozal port and the creation of a logistics park that would complement the operations of the expanded canal,” the ACP experts said.

Canal revenue totaled 2.6 billion dollars in 2015, up from 2.5 billion in 2014, and equivalent to 5.61 percent of the country’s GDP.

Jordi Prat at the Interamerican Development Bank (IDB) told IPS that Panama has “a positive economic outlook but not without risks.” And in the case of the canal, the United States, which it depends on most, “is growing at a relatively strong pace,” although the vulnerability could increase if the situation in China continues to go downhill.

Prat, the IDB’s principal regional economist for Central America, said the challenge faced by this country is keeping the growth rate between six and eight percent a year, and preventing a decline in maritime trade flows, fuelled by other sources of growth.

Prat pointed out that between 2000 and 2014, the sectors that grew the most in Panama were construction (37 percent), transportation and logistics (22 percent), finance (15 percent) and public services (12 percent).

Besides the economic variables, inclusion is key to development in this Central American nation of four million people, he said.

Panama managed to reduce the poverty level from 38.3 to 25.8 percent, between 2006 and 2014, said Prat. However, inequality is reflected by the fact that 86.9 percent of the population in autonomously governed indigenous “comarcas” or counties is poor.

The IDB economist said Panama should move towards “inclusive growth, by fomenting human capital, education, and access to health and basic services, in order to boost productivity, which has not increased significantly in recent times.”

Analyst Rodrigo Noriega concurs with Prat that Panama has to seriously focus on education, training and scientific research, to bolster development.

“That is where we are limping, in education, and in corruption – these are issues that in the long term definitely hurt the Panamanian economy,” said Noriega.

He said the economy may see growth slow down in 2016 and 2017, due to external factors and the impact of the drought caused by the El El Niño-Southern Oscillation (ENSO), a cyclical climate phenomenon that affects weather patterns around the world.

“These external factors could be reducing Panama’s GDP by 2.0 to 2.5 percent a year. What I’m saying is GDP could be growing between 7.5 and 8.0 percent, instead of the current 5.0 to 5.5 percent,” he said.

But he stressed that a project such as the expansion of the canal is not something that is undertaken with a short-term view, but to address the needs of the country over the next 30 to 50 years.

“There will be two slow years, but that is actually a good thing for us because right now we have a water shortage problem. It’s best if the ship traffic isn’t so heavy, because we need to recover in terms of water supply and take baby steps to learn to handle the larger vessels,” said Noriega.

Edited by Estrella Gutiérrez/Translated by Stephanie Wildes

 

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