The Finance Ministers and Central Bank Governors of the G20. Credit: TCMB/cc by 2.0

By Jaya Ramachandran
BERLIN, Sep 9 2015 (IPS)

Finance ministers and central bank governors of the world’s 20 major economies, accounting for 66 percent of world population, have pledged to “promote an enabling global economic environment for developing countries as they pursue their sustainable development agendas”.

In this context, they are looking forward to “a successful outcome” of the U.N. Summit in New York for the adoption of the 2030 Agenda for Sustainable Development. The summit will be held from Sep. 25 to 27 in New York as a high-level plenary meeting of the General Assembly of the world body.

The G20, meeting in Turkey’s capital Ankara on Sep. 4-5, reviewed ongoing economic developments, their respective growth prospects, and recent volatility in financial markets and its underlying economic conditions. They welcomed “the strengthening economic activity in some economies” but said that global growth was falling short of their expectations.

To remedy the situation, they vowed to take decisive action to keep the economic recovery on track and expressed confidence that the global economic recovery would gain speed. With this in view, they would continue to monitor developments, assess spillovers and address emerging risks as needed to foster confidence and financial stability.

The G20 welcomed “the positive outcomes of the Addis Ababa Conference on Financing for Development (FFD)”. In support of these, they aim to scale up their technical assistance efforts to help developing countries build necessary institutional capacity, particularly in the areas specified in the Addis Ababa Action Agenda.

The agreement was reached by the 193 U.N. Member States attending the Conference, following negotiations under the leadership of Ethiopian Foreign Minister Tedros Adhanom Ghebreyesus.

U.N. Secretary-General Ban Ki-moon said: “This agreement is a critical step forward in building a sustainable future for all. It provides a global framework for financing sustainable development.”

He added, “The results here in Addis Ababa give us the foundation of a revitalized global partnership for sustainable development that will leave no one behind.”

The G20 includes 19 individual countries – Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom and the United States – along with the European Union (EU). The EU is represented by the European Commission and by the European Central Bank.

The Group was founded in 1999 with the aim of studying, reviewing, and promoting high-level discussion of policy issues pertaining to the promotion of international financial stability.

It seeks to address issues that go beyond the responsibilities of any one organisation. Collectively, the G20 economies account for around 85 percent of the gross world product (GWP), 80 percent of world trade (or, if excluding EU intra-trade, 75 percent), and two-thirds of the world population. The G20 heads of government or heads of state have periodically conferred at summits since their initial meeting in 2008.

The G20 are responsible for 84 percent fossil fuel emissions worldwide. To support the climate change agenda of 2015, they welcomed the Climate Finance Study Group (CFSG) report, took note of the inventory on climate funds developed by the OECD (Organisation for Economic Cooperation and Development), and the toolkit developed by the OECD and the GEF (Global Environment Facility) to enhance access to adaptation finance by the low income and developing countries, especially those that are particularly vulnerable to the adverse effects of climate change.

While recognising developed countries’ ongoing efforts, they called on them to continue to scale up climate finance in line with their commitments.

“We are working together to reach a positive and balanced outcome at the 21st Conference of Parties of the UNFCCC (COP 21). Based on the outcomes and towards the objectives of the COP21, CFSG will continue its work in 2016 by following the principles, provisions and objectives of the UNFCCC,” they added.

UNFCC is the United Nations Framework Convention on Climate Change that emerged from the Earth Summit in June 1992 in Rio, Brazil, which is currently the only international climate policy treaty with broad legitimacy, due in part to its virtually universal membership.

The CFSG was established by Finance Ministers, in April 2012, and was welcomed by leaders in the Los Cabos Summit, in Jun 2012, with a view “to consider ways to effectively mobilize resources taking into account the objectives, provisions and  principles of the UNFCCC”.

In November 2012, Finance Ministers agreed to “continue working towards building a better understanding of the underlying issues among G20 members taking into account the objectives, provisions and principles of the UNFCCC”, and also recognised that the “UNFCCC is the forum for climate change negotiations and decision making at the international level”.

Following the mandate of the group, and building on the CFSG 2013 Report, the Group identified four areas to be studied in 2014, namely: (a) Financing for adaptation; (b) Alternative sources and approaches to enhance climate finance and its effectiveness; (c) Enabling environments, in developing and developed countries, to facilitate the mobilization and effective deployment of climate finance; (d) Examining the role of relevant financial institutions and MDBs in mobilizing climate finance.

This report aims to present to the G20 Finance Ministers and Leaders a range of non-exhaustive policy options (“toolbox”) for voluntary consideration, related to these four areas, and to suggest further work on other important issues on climate finance.

The G20 said they were “deeply disappointed” with the continued delay in progressing the 2010 International Monetary Fund (IMF) Quota and Governance Reforms. In their view, their earliest implementation is essential for the credibility, legitimacy and effectiveness of the Fund and “remains our highest priority”.

As part of continuing efforts to promote market confidence and business integrity, G20 Finance Ministers also endorsed a new set of G20/OECD corporate governance principles.

The G20/OECD Principles of Corporate Governance provide recommendations for national policymakers on shareholder rights, executive remuneration, financial disclosure, the behaviour of institutional investors and how stock markets should function.

Sound corporate governance is seen as an essential element for promoting capital-market based financing and unlocking investment, which are keys to boosting long-term economic growth.

“In today’s global and highly interconnected world of business and finance, creating trust is something that we need to do together,” OECD Secretary-General Angel Gurría said during a presentation of the new Principles with Turkish Deputy Prime Minister Cevdet Yilmaz,‎ who chaired the G20 finance ministers meeting.

Edited by Kitty Stapp

The Organisation for Economic Cooperation and Development (OECD), once a domain of the rich countries, is keen to extend its global membership and has set out a clear path for Costa Rica’s membership, within months of launching accession discussions with Colombia and Latvia.

As part of this strategy, the 34-nation OECD has in fact been strengthening cooperation with Brazil, India, Indonesia, the People’s Republic of China and South Africa through ‘Enhanced Engagement’ programmes.

According to OECD official sources, over time the organisation’s focus “has broadened to include extensive contacts with non-members and it now maintains cooperative relations with a large number of them.”

Li Keqiang, Premier of the State Council of the People’s Republic of China, paid a historic visit to the OECD on Jul 1, 2015, to sign cooperation agreements in a move that will bolster ongoing collaboration.

The visit to the OECD, the first by a Chinese state leader, coincided with the 20th anniversary of OECD-China relations, as well as China’s upcoming Presidency of the G20 in 2016.

Premier Li Keqiang delivered a keynote address in the context of the OECD Leaders Programme. He was accompanied by a number of ministers and high-ranking officials from the Chinese government.

OECD’s Global Relations Secretariat (GRS) develops and oversees the strategic orientations of OECD’s global relations with non-members. More than 15 Global Fora have been established to address trans-boundary issues where the relevance of OECD work is dependent on policy dialogue with non-members.

Regional initiatives cover Europe, the Caucasus and Central Asia; Asia; Latin America; and the Middle East and North Africa (MENA). The Sahel and West Africa Club creates, promotes and facilitates links between OECD members and West Africa.

Helping improve public governance and management in European Union candidate countries, potential candidates and European Neighbourhood Policy partners is the mission of a joint OECD-EU initiative, the Support for Improvement in Governance and Management (SIGMA) programme.

The OECD’s current members are Austria, Australia, Belgium, Canada, Chile, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States.

On Jul. 8, 2015, OECD members adopted the Roadmap for the Accession of Costa Rica to the OECD Convention setting out the terms, conditions and process for its accession.

OECD Secretary-General Angel Gurría said: “Launching the accession process of Costa Rica underlines the organisation’s commitment to broaden its global outreach. Our joint objective is to work together to bring Costa Rica’s policies and practices closer to OECD best policies and practices.”

Gurría, who hails from Mexico, added: “This process, through which standards and best practices are adopted, is as important as membership itself and will help improve the lives of all Costa Ricans. It will be mutually enriching, as it will also allow the OECD to learn from Costa Rica’s experience in various policy areas.”

The first step in the process will see Costa Rica submit an initial memorandum setting out its position on approximately 260 OECD legal instruments. This will in turn lead to a series of technical reviews by OECD experts, who will collect further information from Costa Rica through questionnaires and fact-finding missions.

As part of the accession process, the OECD will evaluate Costa Rica’s implementation of the organisation’s policies, practices and legal instruments. Its committees may make recommendations for adjustments to legislation, policy or practice to bring Costa Rica closer to OECD instruments or best practices, serving as a catalyst for reform.

There is no deadline for completion of the accession processes, said an OECD official. Final accession will depend on the candidate country’s capacity to adapt and adjust to meet the organisation’s standards. Once all the committees have given their opinion, a final decision will be taken by all OECD member countries in the Governing Council.

Created in 1961 as the successor to the Organisation for European Economic Cooperation, which administered the Marshall Plan at the end of the Second World War, OECD serves as an economic, environmental and social policy forum for its 34 member countries, as well as partners worldwide, on the world’s most important global challenges.

Edited by Phil Harris   

While lauding South Africa for impressive social progress over the past two decades, a new study has asked the country to build on the successes achieved and reduce inequality further.

The latest OECD Economic Survey of South Africa by the 34-nation Organisation for Economic Cooperation and Development (OECD) says: “South Africa has made impressive social progress over the past two decades, lifting millions of people out of poverty and broadening access to essential services like water, electricity and sanitation. Now is the time to build on these successes to reduce inequality further, create badly needed jobs and ensure stronger, sustainable and more inclusive growth for all.”

The survey, released in Pretoria, the capital of South Africa, by OECD Secretary-General Angel Gurría and South African Finance Minister Nhlanhla Nene, notes that prudent macroeconomic policies have secured the confidence of financial markets.

However, economic growth has been too slow and further measures are needed to overcome infrastructure bottlenecks, strengthen the business environment, improve labour markets and ensure future spending needs can be financed.

“The National Development Plan sets the direction for reforms needed for a strong and inclusive country. Our survey provides targeted recommendations to reach these objectives,” said Gurría.

“Millions of young South Africans are eager to work, and their potential must not be wasted. Their future is precious enough to justify tough reforms and hard spending choices,” he added.

According to the survey, improving infrastructure will be essential for boosting future growth and living standards while, given the large needs, prioritisation and cost effectiveness will be crucial.

The OECD noted out that the most immediate priority is to secure additional electricity generation capacity by opening the market to independent producers. Opening electricity and transport will require strong and independent regulators to protect households and firms.

The organisation pointed out that improving the regulatory environment would promote entrepreneurship and growth opportunities for small and medium enterprises (SMEs), which offer the greatest potential for creating jobs and future growth. Reducing barriers to entry, cutting red tape and promoting competition, will be essential.

According to the survey, labour market reforms can raise employment and incomes. Establishing a public employment service as a one-stop shop for job seekers would make it easier for people to find jobs, and for employers to find the right workers.

Costly industrial actions have held back the economy without delivering major gains to workers. The OECD suggests an increased role for mediation and arbitration in order to reduce conflict and provide better outcomes for workers and employers.

The survey pleads for “a high degree of public sector efficiency, prioritisation of spending and a strong revenue base” with a view to meeting public spending needs for infrastructure and the social safety net.

It argues that the South African tax system “is well designed and well administered, but there is scope to broaden key tax bases by reducing deductions, credits and exemptions.  Such tax reform would solidify public finances and make the tax system fairer.”

Edited by Phil Harris   

The OPEC Fund for International Development (OFID) has agreed to give the United Nations Industrial Development Organization (UNIDO) a grant in support of a project aimed at improving the productivity and competitiveness of the shrimp value chain in the Latin America and Caribbean (LAC) region.

OFID is the development finance institution established by the member states of the Organisation of Petroleum Exporting Countries (OPEC) in 1976 as a collective channel of aid to the developing countries.

The grant, which amounts to 300,000 dollars, aims at co-financing a project worth close to 900,000 dollars. OFID Director-General, Suleiman J. Al-Herbish and UNIDO Director General Li Yong, signed the agreement in Austria’s capital, where the two organisations are based.

UNIDO Director General Li Yong (left) and OFID Director-General Suleiman J. Al-Herbish (right). Credit: Courtesy of OFID

Al-Herbish said that the project “will support the sustainable development of the fisheries sector in the LAC region through the promotion of more resource efficient, environment friendly and socially equitable fish farming and processing practices.”

It will also contribute to poverty reduction efforts through the creation of direct and indirect employment and income generation opportunities, as well as improved food and nutrition security, he added.

UNIDO Director General Li pointed out that the shrimp farming sector represented an important source of income in countries such as Colombia, Cuba, Dominican Republic, Ecuador, Mexico and Nicaragua.

“However, in most of these countries there is a need to enhance the productivity and competitiveness of the sector and its compliance with international quality and environmental standards.”

Aquaculture, especially shrimp farming, has been a vital source of economic growth in developing countries. Shrimp farming represents 15 percent of the total value of the fishery products internationally traded in 2011. Ecuador and Mexico are currently among the largest producers in the sector at regional level.

The agreement was signed on Aug. 25, within four weeks of OFID and the Inter-American Development Bank (IDB) signing a co-financing agreement to jointly promote development and economic growth in the LAC region through the expansion of trade financing to banks in the region.

According to the agreement, OFID and IDB will build on the existing Trade Finance Facilitation Programme (TFFP) to provide lines of credit to commercial banks in the LAC region to broaden the sources of trade finance available for LAC importing and exporting companies and support their internationalisation.

In support of global and intraregional integration through trade, this agreement will further strengthen OFID’s long-standing partnership with the IDB and widen OFID’s presence in the trade finance market in the LAC region, OFID said in a press release.

OFID works in cooperation with developing country partners and the international donor community to stimulate economic growth and alleviate poverty in all disadvantaged regions of the world.

It does this by providing financing to build essential infrastructure, strengthen social services delivery and promote productivity, competitiveness and trade.

According to OFID, its work is “people-centred, focusing on projects that meet basic needs – such as food, energy, clean water and sanitation, healthcare and education – with the aim of encouraging self-reliance and inspiring hope for the future.”

Edited by Phil Harris   

Courtesy of UAE Expo Milano 2015.

By Jaya Ramachandran
MILAN, Aug 21 2015 (IPS)

She only turned nine last June. But Mahra Mustafa has become a celebrity at the Expo Milan. She stars as Sara in ‘The Family Tree’, a short film on the UAE’s heritage being screened at the United Arab Emirates pavilion. Sara is in fact the face of young, dynamic and innovative Emirates.

Thousands of Italians and foreign visitors, who throng the UAE pavilion day in and day out, are enchanted by the 12-metre tall sinuous rippled walls that provide an unforgettable experience and give an idea of what the Emirates would offer during the Dubai Expo in 2020.“People get mesmerised with how the UAE has grown from facing challenges like lack of water, coping with heat, humidity, lack of natural resources and still managed to create beautiful cities and communities.” -- Nawal Al Hosany

The Dubai Expo from Oct 20, 2020 through Apr 10, 2021, will launch the UAE’s Golden Jubilee celebration and “serve as a springboard from which to inaugurate a progressive and sustainable vision for the coming decades”, according to information posted on its website.

The organisers proudly announce: “This will be the first time that a World Expo is staged in the Middle East, North Africa and South Asia (MENASA) region.”

While Expo Milan from May 1 to Oct 31 is focussing on ‘Feeding the Planet, Energy for Life’, Dubai’s World Expo will have ‘Connecting Minds, Creating the Future’ as its theme, echoing the powerful spirit of partnership and co-operation that has driven the UAE’s success in pioneering new paths of development and innovation, the organisers say.

“Through this theme, Expo 2020 Dubai will serve as a catalyst, connecting minds from around the world and inspiring participants to mobilise around shared challenges during a World Expo of unprecedented global scope,” the organisers add.

As compared to Expo Milan, which expects to welcome 20 million visitors during six months, Expo 2020 Dubai awaits 25 million visits, 70 per cent from abroad – if only to feel and experience Sara’s ‘The Family Tree’.

“People got so excited seeing movies on Dubai, the feedback we got was that people want to visit before Expo 2020,” ‘The National’, UAE’s English-language publication, quoted Amal Al Kuwaiti, a contract engineer with the Abu Dhabi Distribution Company who worked as a volunteer at the UAE pavilion in Milan.

The architects worked closely with the UAE’s National Media Council to create the pavilion and connect it to the Milan theme of Feeding the Planet, Energy for Life, notes The National.

“Many were surprised to see the country with not much water, how people searched for food. Then suddenly they see videos of the Burj Khalifa (a skyscraper in Dubai) and they are thrilled. Even people who have been to Dubai long ago want to see the changes,” he added.

“People get mesmerised with how the UAE has grown from facing challenges like lack of water, coping with heat, humidity, lack of natural resources and still managed to create beautiful cities and communities,” Nawal Al Hosany, director of sustainability at Masdar, told The National newspaper. He was involved in building the UAE pavilion.

Describing the highlights of the ‘The Family Tree’, the Gulf News writes: Sara is transported back in time, during the generation of her grandparents. Sara gets to live and witness what life was like before modernisation and development in the area, living in the harsh desert conditions, facing many challenges such as finding food and water, and dealing with sandstorms and wild animals.

“The movie’s special effects, story, and professional direction is on par with any Hollywood major production,” claims the Gulf News with some justification.

It is not only the film but also Sara’s rap song that ties in to the Milan Expo theme of Feeding the Planet, Energy for Life: “We have land and food and energy/The sun, the sand and the big blue sea/The people, the animals/I’m beginning to see/Are all interconnected like a tapestry . . .”

The song is for sale on iTunes and the proceeds are going to victims of Nepal’s earthquakes.

When the film The Family Tree ends, visitors are invited to switch to an interactive  ‘Future Talk’, with the presentation being delivered by Sara. The main message of the talk is to encourage people to live their lives in a more sustainable and energy-friendly manner, so that we can have a better future in feeding the planet.

The UAE pavilion also highlights the importance of date palms, a major component of Emirati culture and tradition. The exhibition, ‘The Secret Life of Date Palms’, informs about the date palm features, its form, fruit, hydration, metamorphosis, shade and shadow. As part of the exhibition visitors also get to experience and see the date palms for themselves, with an oasis garden and date palm trees present at the pavilion.

Walking along the sinuous rippled walls, visitors pass by 12 media cubes. These refer to 12 challenges the UAE faces in respect of land, energy, water and food. Then follow the 12 media cubes with 12 solutions. One of the challenges the Emirates face is that it barely gets any rain, and so the solution in providing clean drinking water to its population is through new methods of desalinated seawater using renewable energy.

The media cubes also offer visitors an insight into the UAE and its culture, with five short Discovery films about the UAE. ‘Flavors of the Emirates’ is a short film about the traditional and cultural foods of the UAE.

Another short film, “Helping Feed the Planet”, touches on the UAE’s generous contribution in giving aid to 140 countries around the world, with the short movie going to Ethiopia where schoolchildren are provided with healthy food thanks to a programme funded and organised by Dubai Cares.

Emiratis acting as volunteers and ambassadors at the pavilion are also present to help guide and further explain the culture and history of the UAE, making the tour as interactive as possible for visitors.

Edited by Kitty Stapp

2015 Alison Des Forges Award for Extraordinary Activism Honorees. Top: Khadija Ismayilova (Azerbaijan), Yara Bader (Syria), Father Bernard Kinvi (CAR). Bottom: Nicholas Opiyo (Uganda), Nisha Ayub (Malaysia), Dr. M.R. Rajagopal (India) © Jahangir Yusif, Francesca Leonardi (Internazionale), 2014 Human Rights Watch, 2015 Rebecca Vassie, 2015 Nisha Ayub, Paramount Color Lab, Ulloor, Trivandrum

By Jaya Ramachandran
BERLIN, Aug 13 2015 (IPS)

Governments around the world are obliged to promote and protect all human rights and fundamental freedoms, regardless of their political, economic and cultural systems, according to the Vienna World Conference on Human Rights.  But reality is far removed from international covenants.

This is evidenced yet again by the valiant struggle for human rights in Malaysia, war-torn Syria, the former Soviet republic of Azerbaijan, and in Uganda. Human Rights Watch (HRW) announced earlier this week that it is honouring four “courageous and tireless advocates for human rights” with the 2015 prestigious Alison Des Forges Award for Extraordinary Activism.

The four leading voices for justice in their countries, include: Nisha Ayub, an impassioned human rights defender on transgender rights in Malaysia; Yara Bader, a journalist and human rights activist exposing the detention and torture of journalists in war-torn Syria; and Khadija Ismayilova, a prominent investigative journalist dedicated to fighting for human rights in the former Soviet republic of Azerbaijan.

According to the Human Rights Watch, Ismayilova is currently behind bars and on trial on bogus tax and other charges brought in retribution for her reporting.

Yet another champion of rights is Nicholas Opiyo, an eminent human rights lawyer and founder of the human rights organisation Chapter Four Uganda. He has been working untiringly to defend civil liberties in Uganda.

The four 2015 honourees and two 2014 recipients of the award, Father Bernard Kinvi from the Central African Republic and Dr. M.R. Rajagopal from India, will be honoured at the Voices for Justice Human Rights Watch Annual Dinners held in more than 20 cities worldwide in November 2015 and March-April 2016, Human Rights Watch said on Aug 10.

Ayub will be honoured in Amsterdam; Bader in London and Paris; Ismayilova in Munich and Geneva; and Opiyo in Santa Barbara and Los Angeles. Father Kinvi will tour North America and will be honoured at dinners in New York, San Francisco, Silicon Valley, and Toronto. Dr. Rajagopal will be honoured in Hanover.

The award is named for Dr. Alison Des Forges, senior adviser at Human Rights Watch for almost two decades, who died in a plane crash in New York State on Feb. 12, 2009.

Des Forges was the world’s leading expert on Rwanda, the 1994 genocide, and its aftermath. The Human Rights Watch annual award honours her outstanding commitment to, and defence of, human rights. It celebrates the valour of people who put their lives on the line to create a world free from abuse, discrimination, and oppression, Human Rights Watch said.

“The Alison Des Forges Award honours people who work courageously and selflessly to defend human rights, often in dangerous situations and at great personal sacrifice,” said Kenneth Roth, executive director of Human Rights Watch. “The honourees have dedicated their lives to defending the world’s most oppressed and vulnerable people.”

Edited by Kitty Stapp

Children playing in Karañakaek, Venezuela. Credit: Fidel Márquez/IPS

By Jaya Ramachandran
BRUSSELS, Aug 5 2015 (IPS)

A Brussels-based think-tank has warned Venezuela of an impending humanitarian calamity in tandem with growing political instability.

While the accelerating deterioration of the South American country’s political crisis is cause for growing concern, says the International Crisis Group, there is a less widely appreciated side of the dramatic situation: “A sharp fall in real incomes, major shortages of essential foods, medicines and other basic goods and breakdown of the health service are elements of a looming social crisis.”

In a recent briefing, the Crisis Group says: “If not tackled decisively and soon, it will become a humanitarian disaster with a seismic impact on domestic politics and society, and on Venezuela’s neighbours. This situation results from poor policy choices, incompetence and corruption.”

The Group points to another aspect of the impending humanitarian crisis: “Those with ailments such as cancer, HIV-AIDS or cardiovascular disease can go months without medicines they require to survive. Hospitals and even private clinics cannot maintain stocks of medicines and other basic supplies, including spare parts to repair equipment.”

The think-tank headed by Jean-Marie Guéhenno, a former French diplomat, refers to “some economists” who predict a sudden collapse in food consumption and widespread hunger. It adds: “Public health specialists already say that some surveys are showing chronic malnutrition, although the country is not yet on the verge of famine.

The collapse of the health service, however, can have pernicious short-term effects, including uncontrolled spread of communicable diseases and thousands of preventable deaths, warns the Crisis Group.

However, it adds, the severest consequences can be avoided by ending the political deadlock since 2014 between the government and opposition, which in turn would require “strong engagement of foreign governments and multilateral bodies”.

Venezuela is the 12th largest oil producer in the world, with the largest reserves, and a beneficiary of the most sustained oil price boom in history. In view of this, argues the Crisis Group, it should be well placed to ride out the recent collapse of the international price of crude.

It points out that the oil boom, combined in the early years at least with the government’s redistribution policies, brought about a significant decrease in poverty under the administration of the late Hugo Chávez, during 1999-2013.

But well before the 50 per cent fall in prices at the end of 2014, a year in which Gross Domestic Product (GDP) shrank by more than 4 per cent and inflation rose to 62 per cent, the economy was showing signs of strain, says the Crisis Group.

It adds: “Expropriations of private land and businesses, stringent price and exchange controls and inefficient, often corruptly-run state enterprises undermined the nation’s production of basic goods and services.”

Edited by Kitty Stapp

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

By Jaya Ramachandran
PARIS, Jul 30 2015 (IPS)

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

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

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

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

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

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

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

Other important findings in the Digital Economy Outlook are:

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

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

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

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

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

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

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

Edited by Kitty Stapp

A modern ‘legal arsenal’ comprising the rule of law is the best weapon to combat crime and terror and to end the vicious circle of poverty, according to experts gathered in Doha, Qatar, for the Apr. 12-19 United Nations Congress on Crime Prevention and Criminal Justice, organised by the Vienna-based United Nations Office on Drugs and Crime (UNODC).

The International Organization for Victim Assistance has calculated that investing 0.1 per cent of the global gross domestic product in planning, training, developing, implementing and evaluating actions to prevent crime and bolster criminal justice systems would free up one trillion dollars by 2030 and would save hundreds of thousands of lives while fostering sustainable development.

UNODC said in a press release simultaneously issued in Vienna and Doha on Apr. 15 that several speakers from terrorism-afflicted States had shared their perspective on how to address the causes of that scourge.

To halt the spread of groups like Al-Qaida and Da’esh, and their crimes against humanity, the press release said, Iraq’s representative pleaded for a strategy that must include Security Council action and a guarantee of the implementation of that body’s resolutions.

It would also require stepping up international cooperation, particularly on freezing flows of funds and foreign fighters, and promoting the battle against organised crime groups operating behind “shell” companies.

Libya’s representative appealed for international assistance to recover its plundered assets, bolster border control and support his government’s endeavours to simultaneously promote stability while fighting against the presence of Da’esh. As Libya was a gateway to Europe, he said, what was happening in his country would have an impact on States around the world.

In fact, no country could claim to combat terrorism on its own, the press release quoted Morocco’s representative saying. He emphasised that international cooperation was essential. His country had introduced several reforms with the aim of creating a “legal arsenal” to tackle various forms of crime, including terrorism, smuggling of migrants and money-laundering, as well as to address the unique challenge of foreign fighters.

The best addition to that arsenal was regional and international cooperation, he said, noting that UNODC had the potential to help track down States that harboured terrorists and criminals or contributed to their activities.

Continuing, he highlighted that success in crime prevention and criminal justice did not depend on the number of security forces, but on the adoption of effective means to respond to multifaceted threats in a way that respected human rights. As such, Morocco had adopted a multi-pronged approach in its public policy to combat terrorist groups by “drying up” their funding through strong mandatory measures and protecting the country’s religious environment from excesses.

A number of speakers also called for action to make similar processes easier. Representing another view, the UNODC said, a speaker for Amnesty International called on the Congress to address human rights violations that resulted from “overzealous” policing, as well as the punishment of women, marginalised individuals, the poor and those transgressing social norms.

Edited by Kitty Stapp