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		<title>‘Good, But Not Perfect’, Pacific Islands Women on Climate Deal</title>
		<link>https://www.ipsnews.net/2016/01/good-but-not-perfect-pacific-islands-women-on-climate-deal/</link>
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		<pubDate>Fri, 01 Jan 2016 11:09:27 +0000</pubDate>
		<dc:creator>Catherine Wilson</dc:creator>
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		<description><![CDATA[Women leaders in the Pacific Islands have acclaimed the agreement on reducing global warming achieved at the United Nations (COP21) Climate Change conference in Paris as an unprecedented moment of world solidarity on an issue which has been marked to date by division between the developing and industrialized world. But for Pacific small island developing [&#8230;]]]></description>
		
			<content:encoded><![CDATA[<p><font color="#999999"><img width="300" height="225" src="https://www.ipsnews.net/Library/2016/01/sea-level_-300x225.jpg" class="attachment-medium size-medium wp-post-image" alt="" decoding="async" fetchpriority="high" srcset="https://www.ipsnews.net/Library/2016/01/sea-level_-300x225.jpg 300w, https://www.ipsnews.net/Library/2016/01/sea-level_-629x472.jpg 629w, https://www.ipsnews.net/Library/2016/01/sea-level_-200x149.jpg 200w, https://www.ipsnews.net/Library/2016/01/sea-level_.jpg 638w" sizes="(max-width: 300px) 100vw, 300px" /><p class="wp-caption-text">Coastal communities in the Solomon Islands in the southwest Pacific Islands are already threatened by climate change with rising seas and stronger storm surges. Credit: Catherine Wilson/IPS</p></font></p><p>By Catherine Wilson<br />CANBERRA, Australia, Jan 1 2016 (IPS) </p><p>Women leaders in the Pacific Islands have acclaimed the agreement on reducing global warming achieved at the United Nations (COP21) Climate Change conference in Paris as an unprecedented moment of world solidarity on an issue which has been marked to date by division between the developing and industrialized world. But for Pacific small island developing states, which name climate change as the single greatest threat to their survival, it will only be a success if inspirational words are followed by real action.<br />
<span id="more-143492"></span></p>
<p>“It’s a huge step forward and I don’t think it would have been possible without the voices of indigenous Pacific Islanders banding together and demanding action and justice&#8230;. I am very optimistic about the future,” Kathy Jetnil-Kijiner, climate activist and poet from the Republic of the Marshall Islands, who attended the historic meeting, told IPS.</p>
<p>Intense negotiations and compromise between the interests of 195 countries, plus the European Union, which make up the Conference of the Parties (COP) to the climate change convention, marked its 21st meeting in Paris last month.</p>
<p>Dame Meg Taylor, Secretary General of the regional Pacific Islands Forum Secretariat (PIFS), said that “while not all the issues identified by Pacific Island countries were included in the final outcome and agreement, there were substantive advances with recognition of the importance of pursuing efforts to limit temperature increases to 1.5 degrees Celsius, the inclusion of loss and damage as a separate element in the agreement and simplified and scaled up access to climate change finance.”</p>
<p>Claire Anterea of the Kiribati Climate Action Network in the small Central Pacific atoll nation of around 110,000 people added that the outcome was “good, but not perfect,” highlighting that the new temperature goal and call to boost climate finance were particularly important.</p>
<p>The World Meteorological Organisation predicted this year will be the hottest on record with average global temperatures expected to reach 1 degree Celsius above the pre-industrial age. Meanwhile Pacific Island countries are bracing for further rising temperatures, sea levels, ocean acidification and coral bleaching this century. Maximum sea level rise in many island states could reach more than 0.6 metres, reports the Pacific Climate Change Science Program.</p>
<p>Due to rising seas in the Marshall Islands “a simple high tide results in waves flooding and crashing through sea walls built of cement and rocks and completely destroying homes. The salt from the flooding also destroys our crops and food,” Jetnil-Kijiner said..</p>
<p>In the best case scenario, Kiribati and Papua New Guinea could experience a temperature increase of 1.5 degrees Celsius, but under high emissions this might soar to 2.9 degrees Celsius by 2090.</p>
<p>Global warming could result in yields of sweet potato, a common staple crop, declining by more than 50 per cent in Papua New Guinea and the Solomon Islands by 2050, estimates the Asian Development Bank. The burden of crop losses will fall on the shoulders of Pacific Islands’ women who are primarily responsible in communities for growing fresh produce, producing food and fetching water.</p>
<p>Pacific Islanders led a campaign in Paris this year to recognize a new temperature rise threshold of 1.5 degrees Celsius. This is critical, they argued, to stem future climate shocks and mitigate forced displacement as islands become increasingly uninhabitable due to loss of food, water and land.</p>
<p>And in a sign of shifting views in the industrialized world, Pacific Islanders were joined in their campaigning on this issue by numerous developed and developing nations in a ‘Coalition of High Ambition’ which emerged during the second week of COP21. Solidarity was demonstrated by, amongst others, Mexico, Brazil, Norway, Germany, the European Union and United States.</p>
<p>The final Paris agreement which seeks to limit global warming to below 2 degrees Celsius and ‘pursue efforts’ to further reduce it by another 0.5 degree was a win for the coalition.</p>
<p>“1.5 degrees Celsius wasn’t even on the table before the conference began, so hearing it first announced that it even made it into the text made me cry with relief. That being said, the vague wording definitely has me worried and I know it’ll take a continued push from all of us to actually reach 1.5,” Jetnil-Kijiner said.</p>
<p>This will not decrease the immense challenges the region already faces in adapting to extreme weather, which cannot be met by small island economies without access to international climate finance. This year island leaders called for the international community to honour its pledge to raise 100 billion dollars per year by 2020 to fund adaptation in developing countries, an objective first conceived in Copenhagen in 2009. Assessments since then of how much has been raised vary, but the World Bank claimed in April there was a serious shortfall of 70 billion dollars.</p>
<p>Taylor believes “there is a positive outlook for climate financing post-2020 with Article 9 of the Paris Agreement identifying that, for Small Island Developing States, financing needs to be public and grant-based resources for adaptation.” There has been debate about whether finance mechanisms, such as the Green Climate Fund (GCF), should issue free grants or concessional loans.</p>
<p>Anterea emphasised that, to be effective, funding “needs to reach grassroots people through a simple processing method.”</p>
<p>Recognition of loss and damage caused by extreme weather and natural disasters in the final pact was also a milestone, the PIFS Secretary General added, even though it does not provide for vulnerable nations to claim liability or compensation from big polluters.</p>
<p>“The legal right of countries to test the liabilities of other Parties using other avenues has not been diminished by this decision,” she said.</p>
<p>But the greatest hope is being invested in the binding commitment by nations to set emission reduction targets and be subject to a process of long term monitoring and review, a move which would accelerate the global transition toward renewable energy and make the burning of fossil fuels, the greatest driver of greenhouse gas emissions, increasingly unviable.</p>
<p>“We need the five-year review as a crucial step to keeping countries’ governments accountable to our targets and goals,” Jetnil-Kijiner emphasised. If nations are not emboldened to better their goals every time, the planet may continue toward a devastating temperature increase of 2.7 degrees Celsius or more, experts conclude.</p>
<p>The most pressing question, after the euphoria of the global accord demonstrated in Paris has died down, is how will these lofty promises be implemented? Pacific Islanders are depending on it.</p>
<p>(End)</p>
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		<title>Opinion: Lack of Trade Finance a Barrier for Developing Countries</title>
		<link>https://www.ipsnews.net/2015/05/opinion-lack-of-trade-finance-a-barrier-for-developing-countries/</link>
		<comments>https://www.ipsnews.net/2015/05/opinion-lack-of-trade-finance-a-barrier-for-developing-countries/#respond</comments>
		<pubDate>Sat, 02 May 2015 08:31:29 +0000</pubDate>
		<dc:creator>Roberto Azevedo</dc:creator>
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		<description><![CDATA[In this column, Roberto Azevêdo, sixth Director-General of the World Trade Organization (WTO), argues that lack of capacity in the financial sector has a very significant impact on the trading potential of poor countries and calls for giving prominence to trade finance in the development debate at a time when the Sustainable Development Goals (SDGs) are being finalised.]]></description>
		
			<content:encoded><![CDATA[<p><font color="#999999"><p class="wp-caption-text">In this column, Roberto Azevêdo, sixth Director-General of the World Trade Organization (WTO), argues that lack of capacity in the financial sector has a very significant impact on the trading potential of poor countries and calls for giving prominence to trade finance in the development debate at a time when the Sustainable Development Goals (SDGs) are being finalised.</p></font></p><p>By Roberto Azevêdo<br />GENEVA, May 2 2015 (IPS) </p><p>Up to 80 percent of global trade is supported by some form of financing or credit insurance. Yet in many countries there is a lack of capacity in the financial sector to support trade, and also a lack of access to the international financial system. Therefore the ability of these countries to use simple instruments such as letters of credit is limited.<span id="more-140122"></span></p>
<p>The impact of these limitations on a country&#8217;s trading potential can be very, very significant.</p>
<div id="attachment_118865" style="width: 209px" class="wp-caption alignleft"><a href="https://www.ipsnews.net/Library/2013/05/Azevedo.jpg"><img decoding="async" aria-describedby="caption-attachment-118865" class="size-medium wp-image-118865" src="https://www.ipsnews.net/Library/2013/05/Azevedo-199x300.jpg" alt="WTO Director-General Roberto Azevêdo. Credit: WTO/CC BY SA-2.0" width="199" height="300" srcset="https://www.ipsnews.net/Library/2013/05/Azevedo-199x300.jpg 199w, https://www.ipsnews.net/Library/2013/05/Azevedo.jpg 213w" sizes="(max-width: 199px) 100vw, 199px" /></a><p id="caption-attachment-118865" class="wp-caption-text">WTO Director-General Roberto Azevêdo. Credit: WTO/CC BY SA-2.0</p></div>
<p>After the financial crisis, the supply of trade finance has largely returned to normal levels in the major markets, but not everywhere and not for everyone.</p>
<p>The structural difficulties of poor countries in accessing trade finance have not disappeared – indeed the situation may well have declined due to the effects of the crisis.</p>
<p>There are indications that markets are even more selective now. Under increased regulatory scrutiny, many institutions have lowered their risk-appetites and are focusing more on their established customers. Some are deliberately decreasing their number of clients in a so-called &#8220;flight to quality&#8221;.</p>
<p>In this environment, the lower end of the market has been struggling to obtain affordable finance, with the smaller companies in the smaller, less-developed countries affected the most.</p>
<p>I was particularly struck by the fact that the financing gaps are the highest in the poorest countries, notably in Africa and Asia. And I was struck by the size of those gaps.</p>
<p>A survey by the African Development Bank of 300 banks operating in 45 African countries found that the market for trade finance was somewhere between 330 and 350 billion dollars.</p>
<p>It also found that this could be markedly higher if a significant share of the financing requested by traders had not been rejected.“The lower end of the market has been struggling to obtain affordable finance, with the smaller companies in the smaller, less-developed countries affected the most”<br /><font size="1"></font></p>
<p>Based on such rejections, the estimate for the value of unmet demand for trade finance in Africa is between 110 and 120 billion dollars.</p>
<p>This gap represents one-third of the existing market.</p>
<p>The main reasons for the rejection of requests for financing were:</p>
<ul>
<li>the lack of creditworthiness or poor credit history</li>
<li>the insufficient limits granted by endorsing banks to local African issuing banks</li>
<li>the small size of the balance sheets of African banks, and</li>
<li>insufficient U.S. dollar liquidity</li>
</ul>
<p>Some of these constraints are structural, and can only be addressed in the medium to long term. The retreat of global banks from Africa, and from other poor countries, is one such issue.</p>
<p>The Asian Development Bank conducted a similar survey in Asia, looking at countries like Viet Nam, Cambodia, Bangladesh, Pakistan and India.</p>
<p>According to preliminary estimates, the unmet demand there is around 800 billion dollars.</p>
<p>Small and medium-sized enterprises are the most credit-constrained as 50 percent of their requests for trade finance are estimated to be rejected. This is compared with just seven percent for multinational corporations.</p>
<p>Moreover, two-thirds of the companies surveyed reported that they did not seek alternatives for rejected transactions.</p>
<p>Therefore, these gaps may be exacerbated by a lack of awareness and familiarity among companies – particularly smaller ones – about the many options which exist.</p>
<p>A large majority of firms stated that they would benefit from greater financial education.</p>
<p>These findings are particularly striking as Africa and developing Asia are two areas of the world in which trade has grown fastest in the past decade.</p>
<p>But the potential evolution of new production networks is faster than the ability of the local financial sectors to support them.</p>
<p>In this way the lack of development of the financial sector can be a significant barrier to trade.</p>
<p>It can prevent developing countries from integrating into the trading system and accessing further trade opportunities.</p>
<p>And it can therefore prevent them from leveraging trade as a powerful source of development.</p>
<p>So we need to respond to this problem.</p>
<p>The exchanges that we have here can form part of this response. We need to join together in order to advocate action in this area and to devise practical solutions.</p>
<p>Of course, there is no magic bullet. This is a complex issue. However, that should not discourage our efforts.</p>
<p>The trade finance facilitation programmes that I outlined earlier are one example of practical action that we can take.</p>
<p>Of course this only fills part of the gap, so our response needs to be more fundamental.</p>
<p>In July this year, the United Nations&#8217; major &#8216;Financing for Development&#8217; conference will take place in Addis Ababa. And I think it is essential that we put trade finance on the agenda there.</p>
<p>In this way we can ensure that this issue is given its proper prominence in the development debate, especially at a time when the all-important U.N. Sustainable Development Goals are being finalised.</p>
<p><em>Edited by </em><a href="http://www.ips.org/institutional/our-global-structure/biographies/phil-harris/"><em>Phil Harris</em></a><em>    </em></p>
<p><em>The views expressed in this article are those of the author and do not necessarily represent the views of, and should not be attributed to, IPS &#8211; Inter Press Service. </em></p>
<div id='related_articles'>
 <h1 class="section">Related Articles</h1>
<ul>
<li><a href="http://www.ipsnews.net/2014/10/regional-trade-agreements-cannot-substitute-the-multilateral-system/ " >Regional Trade Agreements Cannot Substitute the Multilateral System</a> – Column by Roberto Azevêdo</li>
<li><a href="http://www.ipsnews.net/2014/07/trade-facilitation-will-support-african-industrialisation/ " >Trade Facilitation Will Support African Industrialisation</a> – Column by Roberto Azevêdo</li>
<li><a href="http://www.ipsnews.net/2014/01/bali-package-trade-multilateralism-21st-century/ " >Bali Package – Trade Multilateralism in the 21st Century</a> – Column by Roberto Azevêdo</li>
</ul></div>		<p>Excerpt: </p>In this column, Roberto Azevêdo, sixth Director-General of the World Trade Organization (WTO), argues that lack of capacity in the financial sector has a very significant impact on the trading potential of poor countries and calls for giving prominence to trade finance in the development debate at a time when the Sustainable Development Goals (SDGs) are being finalised.]]></content:encoded>
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		<title>Opinion: The Exceptional Destiny of Foreign Policy</title>
		<link>https://www.ipsnews.net/2015/03/opinion-the-exceptional-destiny-of-foreign-policy/</link>
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		<pubDate>Thu, 19 Mar 2015 23:36:42 +0000</pubDate>
		<dc:creator>Roberto Savio</dc:creator>
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		<description><![CDATA[In this column, Roberto Savio, founder and president emeritus of the Inter Press Service (IPS) news agency and publisher of Other News, analyses the incongruences in U.S. and European foreign policy as pressure builds up for military confrontation over Ukraine.    ]]></description>
		
			<content:encoded><![CDATA[<p><font color="#999999"><p class="wp-caption-text">In this column, Roberto Savio, founder and president emeritus of the Inter Press Service (IPS) news agency and publisher of Other News, analyses the incongruences in U.S. and European foreign policy as pressure builds up for military confrontation over Ukraine.    </p></font></p><p>By Roberto Savio<br />ROME, Mar 19 2015 (IPS) </p><p>For a long time, citizens of the United States have firmly believed that their country has an exceptional destiny, and continue to do so today even though their political system has become totally dysfunctional.<span id="more-139782"></span></p>
<p>The three pillars of U.S. democracy – legislative, executive and judicial – are no longer on speaking terms,  so dialogue or the possibility of bipartisan policy has virtually disappeared.</p>
<p>In this context, to please his opponents, and with a view to the U.S. presidential elections in 2016, President Barack Obama is increasingly being pushed to act as strong guy.</p>
<div id="attachment_118283" style="width: 310px" class="wp-caption alignleft"><a href="https://www.ipsnews.net/Library/2013/04/RSavio0976.jpg"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-118283" class="size-full wp-image-118283" src="https://www.ipsnews.net/Library/2013/04/RSavio0976.jpg" alt="Roberto Savio" width="300" height="205" /></a><p id="caption-attachment-118283" class="wp-caption-text">Roberto Savio</p></div>
<p>This is the only reasonable explanation on why he has suddenly <a href="http://www.reuters.com/article/2015/03/09/us-usa-venezuela-idUSKBN0M51NS20150309">declared</a> Venezuela a security threat to the United States, just months after starting the process of <a href="https://www.ipsnews.net/2014/12/after-53-years-obama-to-normalise-ties-with-cuba/">normalisation of relations with Cuba</a>, a long-time U.S. enemy in Latin America and ally of Venezuela.</p>
<p>The country’s president, Nicolas Maduro, is extremely happy because his denunciations of a U.S. plot with Venezuela’s opposition to have him removed have now been officially justified – by no less than the United States itself. Even the New York Times, in an <a href="http://www.nytimes.com/2015/03/12/opinion/a-failing-relationship-with-venezuela.html">editorial</a> on Mar. 12, wondered about the wisdom of such move.</p>
<p>The problem is that, behind Obama’s back, U.S. Republican senators are doing unprecedented things, like writing an <a href="http://www.reuters.com/article/2015/03/12/us-iran-nuclear-khamenei-idUSKBN0M810L20150312">admonitory letter</a> to the Supreme Guardian of Iran, Ayatollah Ali Khamenei, indicating that any nuclear agreement made with Obama would last only as long as he remained in office.</p>
<p>That letter must have made Khamenei and Iran’s hardliners very happy, because they have always said that the United States cannot be trusted, and that the ongoing nuclear negotiations make no sense."This escalation [over Ukraine] has already taken a direction that clear heads should exam with a long-term perspective. Are the members of NATO – an institution that needs conflict to justify its new life now that the Soviet Union no longer exists – ready to enter a war, just to keep making the point? "<br /><font size="1"></font></p>
<p>We are now facing an extension of the concept of the exceptional destiny of the United States, in which its foreign policy can also be exceptional, not subject to logic and rules.</p>
<p>Across the Atlantic, what is certainly exceptional is that while Europe has practically always followed U.S. foreign policy, even when it is against its interests as is the case of the confrontation with Russia over Ukraine, the United Kingdom – which has a special relationship with the United States – is now indulging in some divergent action.</p>
<p>Through its Chancellor of the Exchequer, George Osborne, the United Kingdom has <a href="https://www.gov.uk/government/news/uk-announces-plans-to-join-asian-infrastructure-investment-bank">announced</a> that it intends to join the Chinese initiative for the creation of an Asian Infrastructure Investment Bank (AIIB), in which Beijing is investing 50 billion dollars. This has <a href="http://www.theguardian.com/us-news/2015/mar/13/white-house-pointedly-asks-uk-to-use-its-voice-as-part-of-chinese-led-bank">raised the ire</a> of the United States because the AIIB is seen as an alternative to the World Bank and the Asian Development Bank, in which the United States (and Japan) have powerful interests.</p>
<p>Shortly after Cameron’s move, France, Germany and Italy followed, while Australia will also join and South Korea will have to do so. This will leave the United States isolated, opening up a new “exceptional” dimension – economic might (China) is more attractive than military might (United States).</p>
<p>U.K. Prime Minister David Cameron has responded to U.S. irritation by <a href="http://uk.reuters.com/article/2015/03/13/uk-britain-asia-bank-cameron-idUKKBN0M919E20150313">declaring</a> that the United Kingdom is joining the AIIB because “we think that it’s in the UK’s national interest”.</p>
<p>Of course, Cameron is playing up to his financial constituency, which is very aware of its interest, even when it does not coincide with U.S. interest. After all, China’s share of global manufacturing output, which was three percent in 1990, had risen to nearly 25 percent by 2014.</p>
<p>Even worse is that Cameron has also decided to cut spending on defence and while the U.K. government currently meets the two percent of GDP target that the United States expects all members of the North Atlantic Treaty Organisation (NATO) to pay into the alliance, it has only committed itself to continuing that until the end of the current Parliament in May.</p>
<p>For the U.S. administration, this could be taken as a sign of weakness by Russian President Vladimir Putin who, it argues, should be put under growing pressure and shown that the confrontation over Ukraine will escalate until he backs down.</p>
<p>This escalation has already taken a direction that clear heads should exam with a long-term perspective. Are the members of NATO – an institution that needs conflict to justify its new life now that the Soviet Union no longer exists – ready to enter a war, just to keep making the point?</p>
<p>The signals are those that precede a war.</p>
<p>U.K. Defence Secretary Michael Fallon has <a href="http://www.dw.de/uk-defense-minister-fallon-calls-putin-a-real-and-present-danger-to-baltics/a-18269025">declared</a> that Russia is “as great a threat to Europe as ‘Islamic States’.” Troops are amassing in the Baltic States to serve as a deterrent for a possible Russian invasion. The U.S. Republican Congress is overtly asking for the supply of massive and heavy weapons to the Ukrainian army.  Hundreds of U.S. troops have been assigned to Ukraine to bolster the Kiev regime against Russian-backed rebels in the east. The United Kingdom is sending 75 military advisers.</p>
<p>Meanwhile, <a href="http://www.nytimes.com/2015/03/15/world/europe/poland-steels-for-battle-seeing-echoes-of-cold-war-in-ukraine-crisis.html?_r=0">according to</a> the New York Times, the Polish government is supporting the creation and training of militias, and plans to provide military training to any of the many Poles who are increasingly concerned that “the great Russian behemoth will not be sated with Ukraine and will reach out once again into the West.” The same is happening in the Baltic States, which all have a sizable Russian presence and think Putin could invade them at any moment.</p>
<p>Media everywhere have engaged in a frenzy of personal vilification of Putin and in the popular pastime of using Putin and Ukraine to justify military expansionism – to advocate tit for tat what Putin is doing.</p>
<p>It is difficult to look to Putin with sympathy, but this confrontation has again pushed the Russian people behind its leader, and at an unprecedented level that now stands at around 80 percent.</p>
<p>The Guardian has <a href="http://www.theguardian.com/commentisfree/2015/mar/04/demonisation-russia-risks-paving-way-for-war">reported</a> veteran Russian leftist Boris Kagarlitsky as commenting that most Russians want Putin to take a tougher stand against the West “not because of patriotic propaganda, but their experience of the past 25 years”, and it would be a mistake to underestimate the role that humiliation can play in history.</p>
<p>It is commonly accepted that Hitler emerged from the frustrations of the German people after the heavy penalties that they had to pay the victors after the First World War. The same sense of humiliation made the war of Slobodan Milosevic against NATO popular with the Serbian population.</p>
<p>It is the humiliation of the Arabs divided among the winners of the First World War which is at the roots of the Caliphate, or the Islamic State, which claims that Arabs are finally going to be given back their dignity and identity.</p>
<p>And it is also humiliation over the imposition of austerity which is now creating a strong anti-German sentiment in Greece, to which Germans respond with a sense of righteous indignation (52 percent of Germans now want Greece to leave the Euro).</p>
<p>Has anyone considered who is going to take over Russia if Putin goes away? Certainly not those who are now in the opposition. Has anyone considered what it would mean to take on responsibility for a very weak state like Ukraine?</p>
<p>The International Monetary Fund (IMF) has now <a href="https://www.imf.org/external/np/sec/pr/2015/pr15107.htm">approved</a> a 17.5 billion dollar relief fund for Ukraine but warned that the country’s rescue “is subject to exceptional risks, especially those arising from the conflict in the East.”</p>
<p>In fact Ukraine needs to plug a hole of at least 40 billion dollars in the immediate term, and economists all agree that the country does not have a viable economy. It will require many years of consistent help to reach some economic equilibrium – if there is no war.</p>
<p>Europe is close to recession and apparently unable even to solve the problems of Greece, but goes headlong into supporting Kiev against Russian-backed rebels. NATO can support Ukrainian soldiers up to their last man, but it is impossible that they will beat Russia. Will the West then intervene or back off and lose face, after many deaths and much waste and destruction?</p>
<p>A widespread view now is that sanctions should starve Russia, which will have lost its revenues from oil. What if Putin does not back down, sustained by the Russian people? Are Europeans ready to go to war to please the Republican Congress in the United States? (END/IPS COLUMNIST SERVICE)</p>
<p><em>Edited by </em><a href="http://www.ips.org/institutional/our-global-structure/biographies/phil-harris/"><em>Phil Harris</em></a><em>   </em></p>
<p><em>The views expressed in this article are those of the author and do not necessarily represent the views of, and should not be attributed to, IPS &#8211; Inter Press Service. </em></p>
<div id='related_articles'>
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<li><a href="http://www.ipsnews.net/2014/12/opinion-europe-has-lost-its-compass/ " >OPINION: Europe Has Lost Its Compass</a> – Column by Roberto Savio</li>
<li><a href="http://www.ipsnews.net/2014/10/opinion-europe-is-positioning-itself-outside-the-international-race/ " >OPINION: Europe is Positioning Itself Outside the International Race</a> – Column by Roberto Savio</li>
<li><a href="http://www.ipsnews.net/2014/04/entering-cold-war/ " >Why Are We Entering the Cold War Again?</a> – Column by Roberto Savio</li>
</ul></div>		<p>Excerpt: </p>In this column, Roberto Savio, founder and president emeritus of the Inter Press Service (IPS) news agency and publisher of Other News, analyses the incongruences in U.S. and European foreign policy as pressure builds up for military confrontation over Ukraine.    ]]></content:encoded>
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		<title>Where Is the Global Economy Heading?</title>
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		<pubDate>Wed, 04 Dec 2013 14:30:55 +0000</pubDate>
		<dc:creator>Johan Galtung</dc:creator>
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		<description><![CDATA[In this column, Johan Galtung, rector of the TRANSCEND Peace University and author of "Peace Economics”, calls for growth with distribution rather than stagnation with inequality.]]></description>
		
			<content:encoded><![CDATA[<p><font color="#999999"><p class="wp-caption-text">In this column, Johan Galtung, rector of the TRANSCEND Peace University and author of "Peace Economics”, calls for growth with distribution rather than stagnation with inequality.</p></font></p><p>By Johan Galtung<br />WASHINGTON, Dec 4 2013 (IPS) </p><p>In a passage in Charles Darwin’s The Voyage of the Beagle, he condemns an egalitarian native people at the tip of South America to remain primitive.</p>
<p><span id="more-129274"></span>Development presupposes inequality, having chiefs – whether human, animals, races &#8211; to look up to and learn from. And the evolution theory emerging from a mind thus pre-programmed is obvious: competition, struggle for survival, not mutual aid, like the substitute narrative for Genesis 1:20-28, 4th to 6th day &#8211; but without God.</p>
<p>However, a man of God, Pope Francis &#8211; if anyone is saving Western civilisation from itself it is him, not economic growth presidents-prime ministers – has come out and <a href="http://www.vatican.va/holy_father/francesco/apost_exhortations/documents/papa-francesco_esortazione-ap_20131124_evangelii-gaudium_en.html" target="_blank">decried inequality</a> and &#8220;trickle-down economics&#8221; as a &#8220;crude and naive trust in the goodness of those wielding economic power&#8221;.</p>
<p>Or maybe &#8220;those wielding intellectual power&#8221; &#8211; the civil servants, the economists, instead?</p>
<p>Look at BRICS (Brazil, Russia, India, China, South Africa), accounting for 45 percent of the world population and 25 percent of the global world product. No to inequality and trickle-down: Brazil under Luiz Inácio Lula da Silva-Dilma Rousseff, Russia with revolution, China lifting the bottom up, South Africa breaking down apartheid. India has some trickle-down, but social walls are too strong to break.</p>
<p>The Asian Development Bank&#8217;s <a href="http://www.adb.org/publications/social-protection-index-assessing-results-asia-and-pacific" target="_blank">Social Protection Index</a> score is three times higher for China than India (Japan’s is almost three times that of China – having started distribution already in the 1870s).</p>
<p>But in the U.S. and European Union, inequality is growing. This matters: more people are suffering, and may threaten the social &#8220;order&#8221;; even a minimal level of social protection costs; people at the very bottom have very low productivity; people at the very bottom consume with very low &#8220;consumptivity&#8221; (value consumed per person-hour); they are hungry, on the brink of starving.</p>
<div id="attachment_128354" style="width: 310px" class="wp-caption alignright"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-128354" class="size-full wp-image-128354" alt="Johan Galtung" src="https://www.ipsnews.net/Library/2013/10/Galtung-small.jpg" width="300" height="225" srcset="https://www.ipsnews.net/Library/2013/10/Galtung-small.jpg 300w, https://www.ipsnews.net/Library/2013/10/Galtung-small-200x149.jpg 200w" sizes="auto, (max-width: 300px) 100vw, 300px" /><p id="caption-attachment-128354" class="wp-caption-text">Johan Galtung</p></div>
<p>Lift the bottom up and consumption and production follow. People with adequate food, health and education work better. The cuts in U.S. social protection are pathetic. Obamacare is a failure, Medicare-Medicaid-food stamps are shrinking, pensions are suffering from speculation, Congress has failed to increase the minimum wage. But states and local authorities may do so, lifting up the bottom in rich states (with the U.S. Southeast &#8211; Tea Party territory &#8211; lagging behind).</p>
<p>The four costs above add up to the U.S. committing economic suicide. Lift the bottom up so that they buy from the lower-middle classes who will buy more from the middle- middle classes. Wheels turning. Stimulus of cooperatives at the bottom will give better returns than stimulus for small existing businesses.</p>
<p>How about debt? The problem is not debt, but servicing debt at the cost of servicing people, and servicing by printing money. A debt is investment in a productive future managed by competent actors, not by stupid incompetence. The new debt ceiling day is approaching, with no new ideas floating in the air.</p>
<p>How about the EU debt relative to GDP? Five countries are &#8211; like the U.S. &#8211; above 100 percent: Greece (close to 170!), Italy, Portugal, Ireland; Belgium and France are in-between. Spain is doing slightly better, France worse</p>
<p>But then comes the private debt, by households and companies. Eight of the 17 eurozone countries have private debt above twice GDP: companies do not invest, and households consume less &#8211; like in the U.S.</p>
<p>There was the idea of cutting the numbers of people risking misery and exclusion by 20 million from 2008 to 2020. Instead, 24 million were added. Gone are great visions, in its struggle for survival to fill an EU niche in the world and to keep a Union between key creditor Germany and indebted EU members to the West and the South, with old enmities lurking beneath the surface.</p>
<p>For the world the key creditor is China. When the U.S. government had an 18-day shutdown President Barack Obama could not travel to ASEAN-APEC meetings to launch a <a href="https://www.ipsnews.net/topics/tpp/" target="_blank">Trans-Pacific Partnership</a> (TPP) excluding China. Chinese president Xi Jinping did go, reviving a China-Asia maritime Silk Route that operated from 500 to 1500 AD, to which was added the Silk Railroad. Chinese inter-governmental diplomacy: equal footing, mutual benefit, compromise, non-interference.</p>
<p>By 2020 China-ASEAN trade may reach one trillion dollars, with China-Malaysia trade set to reach 160 billion dollars by 2017. Malaysia’s militarily pro-U.S. Prime Minister Najib Razak says he may pull out of the TPP to preserve sovereignty.</p>
<p>Deals come more easily for the world&#8217;s biggest creditor than for the biggest debtor. The U.S. is now better at breeding enemies than friends: with NSA-Edward Snowden the Transatlantic Partnership (TAP) may never be what the U.S. envisaged. The TPP and TAP make Big Business the winners through protectionism and increased inequality. Follow the leader! &#8211; while China is playing the mutual aid card.</p>
<p>Add the speculation that Wall Street &#8211; with JP Morgan Chase-Citibank-Bank of America-Goldman Sachs accounting for more than 90 percent of the known derivative trade &#8211; is perpetrating on the world.</p>
<p>Glen Ford, the editor of the <a href="http://blackagendareport.com/content/wall-street-bets-quadrillion-everybody-else%E2%80%99s-money" target="_blank">Black Agenda Report</a>, wrote that &#8220;Wall Street bets a quadrillion dollars of everybody else&#8217;s money&#8221;; 1.2 quadrillion equals 16.7 times the gross world product. Derivatives are valued at six times the world wealth. Sheer madness.</p>
<p>Add to this the contradictions in the U.S. economy between serving debts and serving people, between money in circulation and U.S. worth, and between the growth of the financial economy and the real economy. Which bubble will burst first is hard to tell.</p>
<p>But with 80 percent of U.S. workers seeing no real wage raise in the last three decades, and 400 individuals owning more than the bottom 180 million, the situation is worse than before the French and Russian revolutions.</p>
<p>Friends of the U.S.: give sound advice, but de-Americanise, keep your distance. The global economy is heading East and South: BRICS+ with a stagnant EU. Growth with distribution, not stagnation with inequality.<br />
(END/COPYRIGHT IPS)</p>
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<li><a href="http://www.ipsnews.net/2013/06/opponents-question-proposed-trans-atlantic-trade-deal/" >Opponents Question Proposed Trans-Atlantic Trade Deal</a></li>
</ul></div>		<p>Excerpt: </p>In this column, Johan Galtung, rector of the TRANSCEND Peace University and author of "Peace Economics”, calls for growth with distribution rather than stagnation with inequality.]]></content:encoded>
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		<title>The Sri Lankan Monsoon, Better Prepared Than Sorry</title>
		<link>https://www.ipsnews.net/2013/05/the-sri-lankan-monsoon-better-prepared-than-sorry/</link>
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		<pubDate>Tue, 28 May 2013 17:30:59 +0000</pubDate>
		<dc:creator>Amantha Perera</dc:creator>
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		<description><![CDATA[The monsoon in Sri Lanka is always a much-awaited event. There is something about the sight of the gathered clouds, the washed trees and the drenched landscape that stirs romance even in the most hardened of souls. The monsoon rain now comes to Sri Lanka mostly in short bursts, lasting some 15 minutes, accompanied by [&#8230;]]]></description>
		
			<content:encoded><![CDATA[<p><font color="#999999"><img width="300" height="199" src="https://www.ipsnews.net/Library/2013/05/Monsoon-small-300x199.jpg" class="attachment-medium size-medium wp-post-image" alt="" decoding="async" loading="lazy" srcset="https://www.ipsnews.net/Library/2013/05/Monsoon-small-300x199.jpg 300w, https://www.ipsnews.net/Library/2013/05/Monsoon-small-629x417.jpg 629w, https://www.ipsnews.net/Library/2013/05/Monsoon-small.jpg 640w" sizes="auto, (max-width: 300px) 100vw, 300px" /><p class="wp-caption-text">The gathering rain clouds in the Sri Lankan skies are a source of trepidation for many. Credit: Amantha Perera/IPS </p></font></p><p>By Amantha Perera<br />COLOMBO, May 28 2013 (IPS) </p><p>The monsoon in Sri Lanka is always a much-awaited event. There is something about the sight of the gathered clouds, the washed trees and the drenched landscape that stirs romance even in the most hardened of souls.</p>
<p><span id="more-119312"></span>The monsoon rain now comes to Sri Lanka mostly in short bursts, lasting some 15 minutes, accompanied by thunder. One minute it could be calm and sunny, the very next, winds could pick up, the delicate coconut palms sway dangerously and the heavens descend.</p>
<p>The short bursts of rain are a common scenario in the western plains. It is only when the rains decide to stay longer that their beauty recedes and the beast takes over.</p>
<p>Cities and villages get flooded, roads are jammed and thousands are left stranded, sometimes for days.</p>
<p>The island nation has had a brush with this scenario already this year, when Cyclone Mahasen swept past its eastern cost, leaving eight people dead, over 100,000 stranded and over 2,000 structures damaged.</p>
<p>There are also few who can erase the memory of the Dec. 2004 tsunami that left 35,000 people dead and close to a million displaced.</p>
<p>That disaster struck Sri Lanka hard, because there was no warning system in place.</p>
<p>The tragedy left the nation wiser, and one of the first things it did in the aftermath was to spruce up its early warning system and disaster mitigation effort.</p>
<p>“We are used to the monsoon and cyclones now and, more importantly, we are better prepared than ever before,” Sarath Lal Kumara, deputy director at the Disaster Management Centre (DMC), told IPS.</p>
<p>The DMC came into being in August 2005 as the nodal agency for disaster risk management in the country under the National Council for Disaster Management (NCDM), which later became the ministry of disaster management and human rights.</p>
<p>Each of Sri Lanka’s over 300 divisional secretariats further has a regional disaster management committee, the lowest administrative body in the government’s disaster management system. Every unit has a separate budget allocation for emergencies; funds are also allocated on a case-by-case basis by capital Colombo.</p>
<p>The DMC too has its own disaster management units in each of Sri Lanka’s 25 districts that make up the country’s nine provinces. Colombo once again coordinates their activities, but every unit has a senior manager of its own as head.</p>
<p>“They are stationed in the regions so that we can take quick decisions without having to go back and forth,” said Kumara. The units have also been provided with the resources to disseminate early warnings and coordinate initial rescue and relief work, he added.</p>
<p>Other non-governmental organisations too have upgraded their disaster monitoring and assistance capacities. The Sri Lanka Red Cross Society, for instance, has district-level disaster management units and routinely mobilises thousands of its volunteers in early warning and relief work.</p>
<p>Staffers and volunteers also go through regular refresher courses on disaster preparedness. All of which came in handy, most recently when Cyclone Mahasen struck Sri Lanka.</p>
<p>“I think we are in a better position than we ever were to meet natural disasters,” Bob McKerrow, head of a delegation for the International Federation of Red Cross and Red Crescent Societies (IFRC), told IPS.</p>
<p>It is just as well that Sri Lanka is investing some resources in early warning and preparedness, say experts. South Asia, they warn, will be subjected to a barrage of extreme weather events, and will have to deal with them on a long-term priority basis.</p>
<p>Over 25 million people have been displaced in the region between 2011 and 2012 due to natural disasters, according to the Internal Displacement Monitoring Centre in Geneva.</p>
<p>Millions are at risk in South Asia due to extreme weather events, Bart Édes, director of the poverty reduction, gender and social development division in the Asian Development Bank (ADB), told IPS.</p>
<p>“All around South Asia,” he said, “in addition to the current vulnerability to cyclones, flooding and drought, those living along South Asian coastlines confront the slowly rising seas.”</p>
<p>With millions affected by disasters, already stretched resources like water, healthcare, schools and other infrastructure can collapse under renewed pressure, Édes added.</p>
<p>“Environmental migration is exacerbating the urbanisation trend being witnessed across South Asia,” the ADB official told IPS. “The physical and social infrastructure of many cities is already stretched to capacity.” As a result, climate-related migration was becoming a serious issue in the region, he added.</p>
<p>A recent study by the World Food Programme (WFP) and the Sri Lankan ministries of disaster management and economic development on the impact of the December 2012-January 2013 flooding offered a glimpse into the scale of damage that natural disasters can inflict.</p>
<p>Titled the ‘Rapid Flood Assessment Report’, it noted that over half a million people in Sri Lanka’s northern, north central, eastern, southern and northwestern regions were affected in early January by the flooding.</p>
<p>They have, in fact, been hit by a double whammy, as 67 per cent of the flood victims surveyed said they were also impacted by the <a href="https://www.ipsnews.net/2012/12/between-drought-and-floods-a-year-of-extremes-in-sri-lanka/" target="_blank">10-month drought</a> preceding the floods.</p>
<p>An earlier assessment by the IFRC in November 2012 had put the number of drought-affected in Sri Lanka at over 1.2 million.</p>
<p>The WFP report also found 37 per cent of the households surveyed were severely ‘food insecure’ and 44 per cent were ‘borderline food insecure’. And the bulk of those who bore the brunt of the twin disasters were employed either in agriculture or in casual jobs.</p>
<p>“Loss of livelihoods, extreme poverty and losses to cultivation are the key drivers of food insecurity, among the flood-affected households,” the report noted. It also pointed to the fact that over 67 per cent of the flood-affected lived below the poverty line.</p>
<p>DMC’s Kumara cited anecdotal evidence to suggest that these victims of disasters were moving into cities, especially when harvests failed, looking for an income.</p>
<p>“We cannot stop natural events, we cannot alter them,” Kumara said. “What we can do is to be prepared for the worst-case scenario. God willing, we are on that track.”</p>
<p>Ask Kusumlatha Tammitta, who lives in the remote village of Mamaduwa in the Vavuniya district of Sri Lanka’s Northern Province, if this is enough, and she tells you that what they really need is better, accurate forecasting that will indicate how the monsoon will be.</p>
<p>Till that is available, people like her are condemned to live at the very edge of existence.</p>
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<li><a href="http://www.ipsnews.net/2013/03/changing-weather-changing-fortunes/" >Changing Weather, Changing Fortunes</a></li>
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		<title>Rural Water Projects Depend on Women</title>
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		<pubDate>Thu, 17 Jan 2013 17:37:13 +0000</pubDate>
		<dc:creator>Amantha Perera</dc:creator>
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		<guid isPermaLink="false">http://www.ipsnews.net/?p=115911</guid>
		<description><![CDATA[During the dry season, when dirt roads are cracked from the relentless heat, the sight of women walking miles, balancing pots of water on their heads, is common in rural Sri Lanka. While the men tend to paddy fields, the women are left with the arduous task of collecting water for household use. They account [&#8230;]]]></description>
		
			<content:encoded><![CDATA[<p><font color="#999999"><img width="300" height="199" src="https://www.ipsnews.net/Library/2013/01/Jan-women-water1-1-300x199.jpg" class="attachment-medium size-medium wp-post-image" alt="It’s time to move beyond the analysis of women’s vulnerabilities to climate change and their roles in climate adaptation. Governments and donors must put their money where their mouths are - real investments on gender equality in the climate adaptation agenda." decoding="async" loading="lazy" srcset="https://www.ipsnews.net/Library/2013/01/Jan-women-water1-1-300x199.jpg 300w, https://www.ipsnews.net/Library/2013/01/Jan-women-water1-1-629x417.jpg 629w, https://www.ipsnews.net/Library/2013/01/Jan-women-water1-1.jpg 640w" sizes="auto, (max-width: 300px) 100vw, 300px" /><p class="wp-caption-text">In rural Sri Lanka women are tasked with fetching and carrying water for the entire household, sometimes walking miles with pots and bottles balanced on their heads. Credit: Amantha Perera/IPS</p></font></p><p>By Amantha Perera<br />POLONNARUWA, Sri Lanka, Jan 17 2013 (IPS) </p><p>During the dry season, when dirt roads are cracked from the relentless heat, the sight of women walking miles, balancing pots of water on their heads, is common in rural Sri Lanka.</p>
<p><span id="more-115911"></span>While the men tend to paddy fields, the women are left with the arduous task of collecting water for household use. They account for every drop of water consumed, utilised or wasted &#8211; making them crucial players in rural water projects.</p>
<p>Talpothta is a typical agricultural village in Sri Lanka’s dry zone, whose life cycle is completely dependent on the rainfall that has become extremely erratic in the last few years.</p>
<p>In 2006, the village was chosen as one of the beneficiaries of a 263-million-dollar Asian Development Bank (ADB) project that set out to provide safe drinking water to 900,000 people in Sri Lanka’s north-central and eastern provinces.</p>
<p>But unlike many other development projects in the country, this is led primarily by women, who comprise an overwhelming majority of the village community.</p>
<p>From the initial planning stages, village women were inducted into the project’s long-term implementation plans, which included installing a community-run water storage tank and mapping out a distribution network to link the entire village to the water supply.</p>
<p>The project’s community leaders advise the roughly 200 village water users, check metres, collect payments and, most importantly, decide when and how to limit the water supply when the dry season sets in. Members also visit households regularly and keep close tabs on usage.</p>
<p>Sheila Herath, a member of the group of local leaders, says women play a critical role in this project.</p>
<p>“The woman in the household is the person who will know how much water is used for what. So we know how much is needed and how much is excess,” she said.</p>
<p>The ADB project planners knew this from experience, not only in Sri Lanka but in other parts of rural South Asia, officials told IPS, adding that 50 percent of participants at planning meetings and at least 25 percent of the officials from the government Water Board were women.</p>
<p>According to Attanayake Mudiyanse Senevirathana, a public official in the north-central town of Polonnaruwa working on improving access to safe water, women have traditionally played the role of ‘water bearer’.</p>
<p>“This is still the case,” he told IPS, adding, “Women also feel they gain more by the success of such projects.”</p>
<p>Thanks to the new water project, women in Talpothta say they find themselves with a lot more free time – something that most rural women can only dream of.</p>
<p>Forty-five-year-old Liyadurige Siriyawathi has returned to a childhood hobby that she gave up when she got married two decades ago – making sketches. She now earns about 100 dollars a month from the sales of these drawings.</p>
<p>Others are engaged in home gardening or say that they now have more time for themselves or for the children.</p>
<p>Kusum Athukorale, who heads the Network of Women Water Professionals in Sri Lanka, told IPS that one sixth of the island’s water supply is derived from rural community projects. Their success depends on women’s participation at every level, she stressed.</p>
<p>&#8220;They are the ones who know where the water sources are, how much is needed. They the ones who walk miles to gather water when drought sets in.”</p>
<p>Athukorale calls women the “foot soldiers of climate change adaptation” because of their hands-on knowledge of how natural resources are being used in households.</p>
<p>A recent ADB report entitled ‘<a href="http://reliefweb.int/sites/reliefweb.int/files/resources/gender-urban-poverty-south-asia.pdf">Gender and Urban Poverty in South Asia’</a> found that women’s role in water management was crucial throughout the region.</p>
<p>“Health surveys conducted in 45 developing countries during 2005–2008 showed that globally, women bear the largest burden as primary collectors of water in 64 percent of households, compared with 24 percent of households for men, four percent for boys, and eight percent for girls,” the report stated.</p>
<p>The report warned that women, especially those from poor communities, were at risk of suffering more due to lack of access to safe water “as they are the primary users, providers, and managers of water in households and are responsible for household hygiene.”</p>
<p>The report detailed projects in Bangladesh, India, the Maldives, and Nepal similar to the Talpothta water scheme, where women played a crucial role in ensuring success.</p>
<p>A women’s group in the village of Ramnagara, a town in the central Indian state of Madhya Pradesh, was responsible for lobbying local authorities and a non-governmental group to establish pipes close to their homes. Like in rural Sri Lanka, the new pipes freed up time the women would otherwise have spent searching for water.</p>
<p>“Women now use the time saved to participate in group activities and explore other livelihood options,” the ADB report said.</p>
<p>&#8220;There is an accumulation of evidence to show that if we are able to (appoint) women as the decision makers for a project on the ground, the success rate goes up almost instantly,&#8221; Naoko Ishii, chairperson of the Washington-based Global Environment Facility (GEF), a public fund that assists in projects related to sustainable development, told IPS.</p>
<p>Ishii, who served as Japan&#8217;s deputy finance minister and as country head for the World Bank in Sri Lanka before taking up the GEF top post, credits women&#8217;s sense of discipline as a key factor in their pivotal role, especially in rural Asia and Africa.</p>
<p>&#8220;When women are in charge of a micro finance project, the repayment ratio is much higher,” she told IPS.</p>
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<li><a href="http://www.ipsnews.net/2012/07/when-the-rains-dont-fall/" >When the Rains Don’t Fall</a></li>
<li><a href="http://www.ipsnews.net/2012/11/wars-end-threatens-water-supply-in-northern-sri-lanka/" >War’s End Threatens Water Supply in Northern Sri Lanka </a></li>

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		<title>Donors Urged to Tread Carefully in Myanmar</title>
		<link>https://www.ipsnews.net/2012/10/donors-urged-to-tread-carefully-in-myanmar/</link>
		<comments>https://www.ipsnews.net/2012/10/donors-urged-to-tread-carefully-in-myanmar/#respond</comments>
		<pubDate>Sun, 14 Oct 2012 19:37:55 +0000</pubDate>
		<dc:creator>Johanna Son</dc:creator>
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		<guid isPermaLink="false">http://www.ipsnews.net/?p=113387</guid>
		<description><![CDATA[Foreign donors are rushing into Myanmar (formerly Burma), whose government has been pushing the right political buttons as part of its democratic reform process. But development planners and local activists caution that  the best approach should still be ‘easy does it’. “Please (&#8230;) don’t rush in,” Khin Ohmar, coordinator of the Thailand-based Burma Partnership, said at [&#8230;]]]></description>
		
			<content:encoded><![CDATA[<p><font color="#999999"><img width="300" height="267" src="https://www.ipsnews.net/Library/2012/10/screenshot_05-1-300x267.jpg" class="attachment-medium size-medium wp-post-image" alt="" decoding="async" loading="lazy" srcset="https://www.ipsnews.net/Library/2012/10/screenshot_05-1-300x267.jpg 300w, https://www.ipsnews.net/Library/2012/10/screenshot_05-1-529x472.jpg 529w, https://www.ipsnews.net/Library/2012/10/screenshot_05-1.jpg 640w" sizes="auto, (max-width: 300px) 100vw, 300px" /><p class="wp-caption-text">Myanmar is opening up to foreign donors after 60 years of civil war, but locals urge discretion. Credit: A. M. Shein/IPS</p></font></p><p>By Johanna Son<br />TOKYO, Oct 14 2012 (IPS) </p><p>Foreign donors are rushing into Myanmar (formerly Burma), whose government has been pushing the right political buttons as part of its democratic reform process. But development planners and local activists caution that  the best approach should still be ‘easy does it’.</p>
<p><span id="more-113387"></span>“Please (&#8230;) don’t rush in,” <a href="http://www.ips.org/TV/2012IMF-WBAnnualMeetings/khin-ohmar-interview/" target="_blank">Khin Ohmar</a>, coordinator of the Thailand-based Burma Partnership, said at a discussion organised by civil society groups led by the Washington-based Bank Information Centre at the International Monetary Fund (IMF)-World Bank (WB) Annual Meetings in Tokyo on Friday.</p>
<p>Burma has been torn by civil war for more than 60 years and is yet to resolve many of its<a href="https://www.ipsnews.net/2012/06/ethnic-cleansing-of-muslim-minority-in-myanmar/" target="_blank"> internal ethnic tensions</a>, she pointed out. “So it’s worth it to step back and ensure that we start with the right stuff.”</p>
<p>“A lot of people still feel sceptical (of the civilian-led government’s promise of a people-centred government),” said Thein Swe, a Myanmar professor who works at Thailand’s Chiang Mai University and who has also worked with the Myanmar government.</p>
<p>“Yes, a lot of changes are coming in. (The government has started) using all the right terminology and development jargon, but on the ground the mindset remains the same,” he said. “Policymakers use the right words, but this has not trickled down to the bureaucracy.”</p>
<p>Ohmar and Swe spoke after officials from the WB and Asian Development Bank (ADB) said they were treading carefully for now, studying programmes to pursue or fund, through their recently opened offices on the ground.</p>
<p>Japan is Myanmar’s largest creditor so far, and has said it will give priority to aid to Myanmar, where elections led to political and economic reforms after the emergence of the civilian-led government of President Thein Sein in March 2011.</p>
<p>On Oct. 11, Japanese Finance Minister Koriki Jojima said Japan would resume yen loans to Myanmar early next year, after clearing that South-east Asian country’s loans of 500 billion yen (6.3 billion dollars) to help it get back on its feet.</p>
<p>In April, Japan agreed to cancel some 60 percent of Myanmar’s loans.</p>
<p>Tokyo will also give bridge loans to help Myanmar refinance its loans to the World Bank and the ADB that have been in arrears for a decade.</p>
<p>Annette Dixon, World Bank director for South-east Asia, explained that these bridge loans would give Myanmar a longer time to pay the outstanding amounts. “But Myanmar is unlikely to be eligible for debt relief,” she pointed out.</p>
<p>Overall, she said, Myanmar has had a “massive donor influx but very weak receptive capacity” and thus needed good donor coordination. The government has set up a foreign aid coordination committee.</p>
<p>The World Bank’s engagement is “very preliminary”, she explained, although the Bank has opened an office that it shares with the ADB and the International Finance Corporation, and is now recruiting staff.</p>
<p>“We had no country operations in the past, so we have decided we will take a step-by-step approach to ensure that our assistance in the future will be effective in addressing huge challenges ahead,” said Kunio Senga, head of the South-east Asia department at the Manila-based ADB. It is quite “premature to specify and commit to specific country programmes” at this point, he added.</p>
<p>Instead, the ADB has been doing economic and sector analyses and consulting stakeholders as it prepares an “interim country partnership strategy” for the next 18 to 24 months, Senga explained.</p>
<p>But Dixon said that the Myanmar government has undertaken radical reforms in the economic, financial and political spheres.</p>
<p>The government is drawing up a development plan and made public the IMF’s assessment of the economy. Also, for the first time, the government discussed the budget, passed it in parliament, and aired the whole process on national television.</p>
<p>The changes underway in Myanmar are “an enormous challenge for the government, which has to get an idea of the sensible sequence of how to do things”, such as combining the “need to show results quickly to its population, which has high expectations, (while simultaneously embarking) on a process that we know takes decades,” Dixon explained.</p>
<p>But the picture from outside can be somewhat different from realities inside the country, according to Swe. He expressed worries about experts entering the country in droves along with aid programmes, stressing, “We don’t want external-driven aid. Consultation with the grassroots community is crucial.”</p>
<p>In terms of foreign investments, he conceded that banks consider Myanmar the “last frontier” as it opens up. “A lot of investors are rushing in – there is big potential but we must be very cautious about what kind of investments we would like to embark on.”</p>
<p>Swe also said that while the government has made improvements in transparency, the fact remains that the lower house of Parliament in August rejected a motion that would have required all government officials to publicly reveal their assets. “It is shameful,” he argued.</p>
<p>Both Ohmar and Swe agreed that the human rights environment in Myanmar could not be separated from development plans for the country.</p>
<p>“The development agenda cannot be a substitute for a political settlement,” Ohmar <a href="http://www.ips.org/TV/2012IMF-WBAnnualMeetings/khin-ohmar-interview/" target="_blank">said</a>.</p>
<p>Both raised questions about the military’s continued role in the country, and said citizens need to get used to more political space and start speaking up.</p>
<p>“We have to make sure that the role of the military will remain a positive one,” said Swe. Under Myanmar’s constitution, the military get one quarter of seats in each chamber of Parliament.</p>
<p>Ohmar added that many citizens have yet to learn to speak their minds, which is a result of decades of military dictatorship.</p>
<p>She questioned the effectiveness of gestures like airing parliamentary discussions on television when large parts of the country have no access to electricity.</p>
<p>*This article first appeared on <a href="http://www.ips.org/TV/2012IMF-WBAnnualMeetings/myanmar-easy-does-it-foreign-donors-told/" target="_blank">IPS TerraViva</a></p>
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<li><a href="http://www.ipsnews.net/2012/07/u-s-opens-investment-in-burmese-oil-and-gas-over-suu-kyis-advice/" >U.S. Opens Investment in Myanmar Oil and Gas, Over Suu Kyi’s Advice</a></li>
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