View of a bridge in severe disrepair on the BR-319 highway, in the heart of the Amazon, which the Brazilian government plans to repave along the 405-kilometer central section, out of a total of 885 kilometers, because it has deteriorated to the point that is impassable for much of the year. Those who venture along it take three times the normal amount of time to drive the entire length, with the risk of seriously damaging their vehicles. CREDIT: Tarmo Tamming/Flickr

By Mario Osava
RIO DE JANEIRO, Aug 9 2022 (IPS)

The mandatory initial permit granted by Brazil’s environmental authority for the repaving of the BR-319 highway, in the heart of the Amazon jungle, intensified the alarm over the possible irreversible destruction of the rainforest.

The 885-kilometer highway is the only overland route to Manaus, the capital of the state of Amazonas with a population of 2.25 million in south-central Brazil. The road runs to another Amazon rainforest city, Porto Velho, capital of the state of Rondônia, population 550,000."Restrictions arose that limited the public hearings to evaluate the studies as early as 2021, and so far there has been no solution to these problems. In addition, the participation of affected populations was limited due to the COVID-19 pandemic and the difficulties in attendance, especially for indigenous people." -- Carlos Durigan

The highway emerged as part of the plans of the 1964-1985 military dictatorship to integrate the Amazon rainforest with the rest of the country, through several highways crossing the then almost unpopulated jungle and the promotion of massive internal migration from other regions.

Due to heavy rains and frequent flooding many sections of the road and a number of bridges have fallen into disrepair. Twelve years after its inauguration in 1976, BR-319 was recognized as a largely impassable road, undermined by neglect.

Local interests tried to repave the road and obtained the support of the central government from the beginning of this century.

However, in 2008 and 2009, the Brazilian Institute of Environment and Renewable Natural Resources (IBAMA) rejected three environmental impact studies, whose approval is essential in Brazil for projects that affect the environment and that have a social impact.

But a fourth study, presented in June 2021 by the National Department of Transport Infrastructure, was approved and the required initial permit was granted by IBAMA, despite criticism from environmentalists.

In recent years IBAMA’s credibility has suffered due to the openly anti-environmental far-right government of Jair Bolsonaro, which weakened the environmental agency by cutting its budget and appointing officials lacking the necessary qualifications.

The Brazilian army always deploys members of its engineer brigade to repair roads in remote areas, such as the Amazon rainforest. But in the case of the BR-319 highway between Manaus and Porto Velho, millions of dollars in investments and costly maintenance services are necessary, which prevent its concession to private companies. CREDIT: Brazilian Army

Doomed project

“Restrictions arose that limited the public hearings to evaluate the studies as early as 2021, and so far there has been no solution to these problems. In addition, the participation of affected populations was limited due to the COVID-19 pandemic and the difficulties in attendance, especially for indigenous people,” said environmentalist Carlos Durigan.

The environmental impacts assessed were limited to the vicinity of the road, without considering the entire area of influence of the construction work, the director of WCS Brazil, the national affiliate of the U.S.-based Wildlife Conservation Society, told IPS by telephone from Manaus.

Moreover, no prior and informed consultation was held with the indigenous peoples and traditional communities that will be affected, a requirement under Convention 169 of the International Labor Organization (ILO), he said. This incompliance is likely to lead to lawsuits.

The initial permit was obtained under promises of greater protection, inspection and oversight of protected areas – not very credible at a time of weak public authority in environmental questions, with low budgets and reduced human resources, said Durigan, a geographer from southeastern Brazil who has lived in the Amazon rainforest for two decades.

These and other criticisms form part of the evaluation carried out by the BR-319 Observatory, a coalition of 12 social organizations involved in activities in the road’s area of influence. The 14-point review identifies irregularities in the permit granted by IBAMA and the violated rights of the affected population.

The proponents of the BR-319 highway tried to avoid the requirement of impact studies under the argument that it is only a matter of repaving an existing road, with no new impacts. But the courts recognized it as a complete reconstruction.

In fact, of the 885 kilometers, 405 kilometers will have to be repaved and bridges and animal crossings will have to be rebuilt. The remaining 480 kilometers – the two stretches near Manaus and Porto Velho – are already passable.

But the rains and floods that have occurred since last year have broken down the asphalt on many stretches near Manaus, leaving large cracks and holes. Even without repaving, many people venture to travel along the BR-319 in cars, buses and trucks. But it takes two or three days to drive, and often causes damage to vehicles.

One of the potholes in the BR-319 highway, where the asphalt laid in the 1970s has disappeared. Inaugurated in 1976, the Amazon artery became impassable a decade later and attempts to repave it have so far failed. CREDIT: Tarmo Tamming/Flickr

More deforestation

Environmentalists fear that deforestation, illegal occupation of public lands and the invasion of indigenous lands, which are already occurring along nearly 200 kilometers of the southern section, will spread along the entire highway and its surrounding areas.

This region close to Porto Velho is the area where deforestation in the Amazon has grown the most in recent years.

A usable BR-319 would spread environmental crimes, forest fires and violence generated by land disputes in the middle section of the highway, activists warn.

In fact, 80 percent of Amazon deforestation occurs along the highways that are the arteries leading to the settlement of the rainforest, along with smaller roads branching off from the highways, environmentalists say.

Such effects are already well-known along other Amazonian highways in areas that are more populated and deforested than the territory between Manaus and Porto Velho, bathed by the Madeira and Purus rivers, two of the major tributaries of the Amazon, both of which have their headwaters in Peru. The Madeira basin also extends through much of central and northern Bolivia.

A stretch of the BR-319 highway with an ironic sign pointing to the nearby town of Realidade (Reality). The 885-kilometer road that runs between the Amazonian Madeira and Purus rivers requires high maintenance costs due to frequent flooding, since most of it is located on land that floods in the rainy season. CREDIT: Alberto César Araújo/Amazonia Real

Doubtful economic feasibility

BR-319 faces another uncertainty, which is economic viability. It crosses what is at least for now a sparsely populated area, except for Manaus. The cost of repaving is not small, as the effort includes many bridges and earthworks to stabilize land that floods during the rainy season along many stretches, even though the road is located on higher ground between the Madeira and Purus rivers.

The highway also needs continuous upkeep, as is already the case in the stretch near Manaus, where the necessary repairs have not yet been completed after flooding caused by heavy rains that lasted from October 2021 until well into this year, Durigan pointed out.

Even so, the demand for the repaving of the central section of the highway is very popular, enjoying almost consensus support, the activist acknowledged. The argument in favor of the road is that Manaus is isolated by land, and depends on air or river transport to connect with the rest of Brazil and to be able to export its industrial production.

Since the 1960s, Manaus has had an industrial park and a free trade zone, supported by large subsidies that are regularly extended and will remain in force at least until 2073. These benefits shore up the electronics, motorcycle and beverage industries in the city, despite its remote location and distance from the main domestic markets.

In addition to a reduction in the city’s isolation, the population of Manaus hopes to see a drop in food prices, thanks to a workable road that would allow better access to products from Rondônia, an Amazonian state where agriculture and cattle raising have been developed.

But the beneficial effect of agriculture 900 kilometers away is doubtful. Other Amazonian cities, such as Belém, capital of the eastern Amazon jungle state of Pará, also pay dearly for their food, particularly fresh produce, because they have not developed horticulture.

New anti-Amazon wave

Along with the repaving of BR-319, Brazil’s Amazon rainforest faces other threats from infrastructure projects.

Another resurrected plan is a road through a conserved forest area on the border between Brazil and Peru. It would cross the biodiversity-rich Serra do Divisor National Park.

This plan also looks unfeasible because of its questionable economic viability and due to the severe environmental restrictions it would face.

Three railways are also planned for exports from Mato Grosso, the southeastern Amazonian state that is Brazil’s largest producer of soybeans, corn and cotton, and small and medium-sized hydroelectric plants are projected, especially in the states of Rondônia and Roraima, the latter on the border with Venezuela.

In addition to resistance from environmentalists and indigenous peoples, these projects now face a new stumbling block, or a new counter-argument: climate change, said Sergio Guimarães, coordinator of the Infrastructure Working Group, a network of 47 social organizations.

This is a variable that requires at least a review of all these projects, he told IPS by telephone from Cuiabá, capital of Mato Grosso.

Credit: Construction Review Online

By Jeffrey Moyo
HARARE, Zimbabwe, Nov 13 2015 (IPS)

The upcoming week for the Programme for Infrastructure Development in Africa (PIDA), which runs from November 13-17 in Abidjan, the capital city of Ivory Coast, is set to throw this continent into the full gear of infrastructural boom, development experts here say.

“If PIDA and what it all entails may be strictly followed by Africa and its leaders, yes, truly the underdeveloped continent may see itself emerging from the era of infrastructural underdevelopment and help the continent attract much needed foreign investors,” Zimbabwean independent economist, Kingston Nyakurukwa, told IPS.

For African nations, from the outset PIDA was meant to promote socio-economic development and poverty reduction through improved access to integrated regional and continental infrastructure networks and services.

Owing to the infrastructure deficit facing Africa, in July 2010, African leaders launched PIDA under the leadership of the African Union, New Partnership for Africa’s Development (NEPAD) and the African Development Bank (AfDB).

At its launch, PIDA’s presidency was initially assumed by South African President Jacob Zuma, thanks to his country’s successful organization of the World Cup in 2010, which inspired the entire continent.

Then Zuma said: “Africa’s time has come and without infrastructure, our dreams will never be realized. We cannot trade on the continent because of the lack of communication. The infrastructure that we want to create will provide new opportunities for our continent.”

With the African Development Bank Group being the executing agency, PIDA was designed as successor to the NEPAD Medium to Long Term Strategic Framework (MLTSF), which was meant to develop a vision and strategic framework for the development of regional and continental infrastructure.

For many development experts here, like Henry Kakonye, Africa has however lacked development in infrastructure over the years, impacting negatively on the continent’s economic growth.

“Lack of infrastructure development in Africa over the years has gradually affected productivity and resulted in rising production and transaction costs, subsequently derailing growth through slowing competitiveness of businesses and the ability of governments to chase economic and social development policies,” Kakonye told IPS.

According to the New Partnership for Africa’s Development (NEPAD), PIDA will also help the objectives for Sustainable Energy in Africa in line with the UN’s sustainable development goal to ensure access to affordable, reliable, sustainable and modern energy for all.

But in developing Africa’s infrastructure, NEPAD has also been on record saying the private sector cannot be left out.

“With support from the private sector, PIDA is expected to play a critical role in addressing the continent’s infrastructure problems,” said Adama Deen, head of Infrastructure Programmes and Projects at the NEAPAD Agency while speaking at a recent NEPAD forum in Johannesburg, South Africa.

“Infrastructure is essential for integrating regions, realising socio-economic potential and fast-tracking development in Africa,” Deen had added.

And based on NEPAD Division at the African Development Bank, the continent would require investment of about 360 billion dollars in infrastructure in order to be well connected to the rest of the world by 2040.

To this, PIDA, a joint initiative by the African Union, NEPAD and the AfDB, aims to develop a web of 37,200 km of highways, 30,200 km of railways and 16,500 km of interconnected power lines by 2040 while at the same time it plans to add 54,150 megawatts of hydroelectric power generation capacity and an extra 1.3-billion tons capacity at Africa’s ports, according to AfDB’s Ralph Olaye.

The South African Energy Ministry has also been on record saying no infrastructure programme could be successful if it is not linked to continental development objectives.

As such, according to the SA government, PIDA remains key to the Southern African region and the entire Africa to promote socio-economic development.

Chief Executive Officer of the NEPAD Agency, Dr Ibrahim Mayaki, during this year’s commemorations of the Africa Day agreed with the SA government.

“Bridging the gap in infrastructure is thus vital for economic advancement and sustainable development. However, this can only be achieved through regional and continental cooperation and solution finding,” Mayaki said then.

“In fact, now more than ever is the time for us all to live up to the courage of our convictions for an integrated, prosperous and peaceful Africa, driven by its own citizens – as is espoused by NEPAD. Leadership is no longer a top down issue,” Mayaki had added.

(End)

The South Atlantic Shipyard is the biggest in Suape Port, in the Northeast Brazilian state of Pernambuco, where oil tankers have been built after a slow start that threatened to put an end to the project. Credit: Mario Osava/IPS

By Mario Osava
RIO DE JANEIRO, Sep 4 2015 (IPS)

Besides suffering from macroeconomic imbalances, like a drop in GDP, a high inflation rate and a large public deficit, Brazil is experiencing heavy losses as many oil industry and logistical works grind to a halt.

Much of the infrastructure under construction is part of a cycle that is coming to an end, of rising demand for and prices of raw materials.

China’s economic slowdown has had an especially big impact on iron ore, the price of which has plunged more than 60 percent since 2013. This will hinder the viability of several iron deposits in Brazil, as well as two railways under construction in the Northeast, which now have an uncertain future.

The West-East Integration Railway (FIOL), designed to cross the state of Bahia, connecting soy-producing areas with the coast, depends on the start of operations in an iron mine in Caetité, 380 km as the crow flies from the port city of Ilheus.

A similar situation is now faced by the Transnordestina railway farther north, which is to link another mining and agricultural area to two ports. “But the mine doesn’t even exist there yet,” said Newton de Castro, a professor at the Federal University of Rio de Janeiro.

“Low-grade iron ore is pushed out of the market when demand goes down, affecting the railroads that transport it,” de Castro, an engineer with a PhD in transport systems, told IPS. He criticised “badly designed projects” that have mushroomed in Brazil in recent years to fill a gap in infrastructure.

Doubts about the viability of the Caetité mine have undermined the construction of Porto Sul, the port that is the endpoint of the Fiol railway. Construction of the megaport has not yet begun, and work on the railroad has stalled, and it was left out of the government plan for the expansion of transport routes.

More progress has been made on the Transnordestina line, which benefits from the existence of two port destinations that are also industrial complexes: Suape in the Northeast state of Pernambuco and Pecém in one of the country’s northernmost states, Ceará.

But the deposit of iron and other minerals that it was built to serve has been abandoned since its owner Eike Batista, once known as the richest person in Brazil, went bankrupt.

Another major infrastructure project, the expansion of the Carajás railroad by the country’s biggest mining company, Vale, is on a better footing. “It will transport excellent quality mineral and the cost will be low, because it involves expanding already-existing infrastructure,” Castro said.

The new reality of lower demand and prices “will push out of the market mines that are more costly to operate, and small mining companies,” favouring the predominance of big firms like Vale, the British-Australian Rio Tinto and the British Anglo American.

Brazil is the world’s second-largest producer and exporter of iron ore after Australia, and Vale is the world’s single largest producer of the mineral, the chief market for which is China.

The expansion in the size and number of ports along Brazil’s coastline will also be hampered by the drop in activity in the mining industry, as well as by the oil crisis caused by the drop in prices and especially the scandal that has hit the state-run oil company, Petrobras.

The drastic cutback in Petrobras’ investments has hurt the government’s strategy to develop a strong shipbuilding industry based on dozens of shipyards along the Brazilian coastline producing boats, offshore platforms and other oil exploration and drilling equipment for deepwater oil industry operations.

The Carajás railroad, which links the region where large new iron deposits belonging to Vale were found, with the port of Ponta Madeira in the Northeast city of São Luis, as it passes by a small town in the state of Maranhão. The railway network is going to be expanded and upgraded as part of a project that has not been hurt by the current crisis. Credit: Mario Osava/IPS

The crisis triggered the dismissal of tens of thousands of workers and the suspension of work in many shipyards and their port areas. One company alone, Enseada, hired to produce six drillships for Petrobras by 2020 for a cost of 4.8 billion dollars, has laid off nearly all of its 7,000 workers since 2014.

The company’s plant is only 82 percent complete. This and other white elephants represent an enormous waste of resources, which are not likely to be recovered.

“The programme was built on unrealistic foundations; the crisis has penalised investments that were misguided or badly designed,” said Adriano Pires, an economist who specialises in energy planning and is the director of the Brazilian Infrastructure Centre, a consultancy.

Most of the oil discovered in Brazil lies deep below the seabed off the Atlantic coast. The enthusiasm for creating a national industry for oil drilling equipment emerged after the 2006 discovery of large amounts of oil under a thick layer of salt, known as the pre-salt layer, more than 5,000 metres below the surface.

The difficulties of tapping into that newfound wealth make technology, ships, and large, complex equipment necessary. The administration of Luiz Inácio Lula da Silva (2003-2010) launched a strategy to develop the pre-salt reserves, in which Petrobras played a dominant role.

The government also set national content standards averaging 60 percent for the equipment used, to drive local production. And shipyards began to mushroom.

“It was an illusion. Reserving market encouraged waste not efficiency, besides favouring corruption,” Pires told IPS.

“Recovery will be slow and difficult; everything will have to be revised, and it will require a government with credibility, unlike the current one,” said the expert, an outspoken opponent of the centre-left government of President Dilma Rousseff, in power since Jan. 1, 2011. “It will require a regulatory framework that offers legal security, to attract investment.”

Oil and infrastructure are the sectors that can fuel recovery of economic growth, to overcome the recession that has hit Brazil since last year, he said.

Among analysts there are even doubts about the economic feasibility of exploiting the pre-salt oil reserves at the current prices, which stand below 50 dollars a barrel. “That is not evaluated on the basis of today’s prices, but looking at long-term prices, and I estimate that prices will go back up to 60 or 70 dollars a barrel within five years,” Pires said.

By contrast with the oil, mining and railway industries, the power industry has escaped the wave of frustrated infrastructure projects.

“In Brazil there is repressed demand, and that requires an expansion of the power grid in the long term – a need that doesn’t disappear because of recession or two years of economic slowdown. At the most, some goals could be postponed,” said André Lucena a professor of planning at the Federal University of Rio de Janeiro.

In this country of 202 million people, “per capita consumption of electricity is low in comparison to developed countries, which is why it tends to grow, for example with the incorporation of new electric and electronic equipment in homes,” he told IPS. For that reason, new hydroelectric and thermal plants will never be useless.

Moreover, a stable power supply requires a surplus: “some idle capacity forms part of the system’s operating mechanism, it’s beneficial,” he said.

On a daily basis there are “consumption peaks” that the system must deal with to avoid blackouts. The generation and distribution of electricity cannot be based on average usage.

In Brazil, hydropower plays a predominant role – it is inexpensive and operates as long as there is water. It represents nearly two-third of the country’s installed capacity.

Thermal plants, fired by oil, natural gas or coal, produce more expensive electricity, and are only used when there is not enough hydropower. “They are built to be idle most of the time, but they’re not useless,” said Lucena.

Edited by Estrella Gutiérrez/Translated by Stephanie Wildes

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 rubble of twisted concrete and metal bakes in the hot Mediterranean sun of a regional heat wave. A year on from Israel’s 51-day military operation in 2014, not a single one of the 11,000 destroyed homes in Gaza has been rebuilt. Photo credit: UNRWA Archives/Shareef Sarhan

By Charlie Hoyle
BETHLEHEM, Palestine, Aug 15 2015 (IPS)

The rubble of twisted concrete and metal bakes in the hot Mediterranean sun of a regional heat wave.

Eight months ago, the infrastructural devastation in the Gaza Strip was the same, except floodwater and freezing winter temperatures swept over the heaped remnants of people’s homes and businesses.

A year on from Israel’s 51-day military operation – in which over 2,200 Palestinians were killed, including more than 500 children – not a single one of the 11,000 destroyed homes has been rebuilt.

The task of large-scale reconstruction work was entrusted to the Gaza Reconstruction Mechanism (GRM), a United Nations-brokered agreement between Israel and the Palestinian Authority which would oversee the distribution of building materials entering Gaza.“Most of the 100,000 Palestinians displaced by the [2014] war continue to live in makeshift shelters, often in the rubble of their former homes, and the landscape is littered with miles upon miles of apocalyptic decay where homes, shops, and restaurants once stood”

To date, only 5.5 percent of the building materials needed to repair and rebuild homes and other damaged infrastructure has entered the coastal enclave, according to Israeli rights group Gisha, founded in 2005 to protect the freedom of movement of Palestinians, especial Gaza residents.

Failed promises by donor countries which pledged 5.4 billion dollars last October, political tensions between the Palestinian Authority and Hamas, and Israel’s continued restrictions on materials entering the territory have all impeded reconstruction efforts.

However, many hold the GRM directly responsible for the glacial pace of reconstruction, arguing that the terms of the agreement have entrenched Gaza’s underdevelopment by granting Israel control over nearly every aspect of the rebuilding process.

“Israel actually has deep power over every single house built in Gaza,” says Ghada Snunu, a reporting officer at Ma’an Development Centre in Gaza.

“We cannot build a house if Israel says no. Israel decides whether homes are built or not.”

As part of the GRM, Israel has case-by-case approval over individual applications for building materials, veto power over construction companies put forward by the Palestinian Authority to provide those materials, and access to the Authority’s Ministry of Civil Affairs database, which registers the ID numbers and GPS coordinates of Palestinians whose homes were destroyed.

According to Gisha, private owners, building plans, locations and the quantities all require Israeli approval, with companies and merchants who store the construction materials – mostly aggregate, cement and steel bars – forced to place security guards and install cameras to supervise the goods 24 hours a day.

This lengthy and expensive bureaucratic process, designed specifically to meet Israel’s stated security concerns, has meant the process is at a virtual standstill.

“The GRM has failed because it gives Israel veto power over everything. There are no changes on the ground so far,” complains Snunu.

In January, the Brookings Doha Centre said in a policy briefing that the GRM has effectively seemed to offer “legitimacy to the Israeli blockade” and placed “exclusive reliance on Israel’s willingness to allow the flow of reconstruction materials” for success of the mechanism.

In recent months, Oxfam says that more building materials are entering Gaza, but the levels are still only 25 percent of those before Israel’s blockade was imposed some eight years ago.

“At this pace it could take 19 years to finish just the rebuilding of homes destroyed in 2014 and at least 76 years to build all the new homes that Gaza needs,” said Oxfam’s Arwa Mhunna.

Most of the 100,000 Palestinians displaced by the war continue to live in makeshift shelters, often in the rubble of their former homes, and the landscape is littered with miles upon miles of apocalyptic decay where homes, shops, and restaurants once stood.

The vast infrastructural damage last summer, caused by an unprecedented amount of explosive weaponry used by Israel’s military, compounds the effects of an eight-year blockade and two other Israeli military offensives since 2008, with damage from those conflicts barely addressed.

Gazan institutions and stakeholders have been largely excluded from the rebuilding process following the three wars, placing the civilian population at the mercy of political infighting, unfulfilled international promises and Israel’s blockade.

“Gaza had already been destroyed completely before the war. This agreement did not change anything, Palestinians were told their homes would be rebuilt, but these promises have been broken by the international community and the PA,” says Snunu.

In May, the World Bank reported that Gaza had the highest unemployment rate in the world at 43.9 percent, with 67 percent of under 24-year-olds unemployed. Real per capita income is now 31 percent lower than it was 20 years ago, at 970 dollars a year, the report added.

At least 80 percent of Gazans are dependent on humanitarian aid.

“The situation in Gaza is getting more serious and dire,” says Mhunna. “The humanitarian crisis is continuing and now affects all aspects of life. Displacement has lasted for over a year since the war and there is a devastating economic situation.”

Hamas officials, rights groups, and both local and international NGOs had repeatedly stressed last year during ceasefire negotiations that Gaza must not return to a status quo of blockade.

Since Israel disengaged from Gaza in 2005 – withdrawing some 9,000 settlers and military forces – it has repeatedly claimed that it is no longer occupying the territory and has held Hamas responsible for the civilian population.

Yet 10 years later, Israel controls the movement of Palestinians in and out of Gaza, the food they can have access to, whether they can receive medical treatment or not, and now under the terms of the GRM, whether their homes can be rebuilt.

“The GRM harms Palestinians more than it benefits them. What is clear in our demands is that the GRM heightens the blockade and Gaza will not be rebuilt unless the blockade is lifted,” says Snunu.

“Palestinians need solutions for the crisis, not mechanisms that manage the crisis.”

Edited by Phil Harris   

We are witnessing a shift in the original rationale behind the unique relationship between the European Union and the African, Caribbean and Pacific countries of the ACP group, which goes beyond the logic of “unilateral aid transfer”, “donor-recipient approach” and “North-South dialogue”.

“The [ACP] Group will have to transform itself if it wants to realise its ambition of becoming a player of global importance, beyond its longstanding partnership with the EU” – Dr Patrick I. Gomes, ACP Secretary General
In November last year, in his mission letter to the newly appointed European Commissioner for International Cooperation and Development, Neven Mimica, European Commission President Jean-Claude Junker said: “The first priority is the post-2015 framework and the second priority of my mandate is the future of EU’s strategic partnership with African, Caribbean and Pacific (ACP) countries.”

With the agreement for that partnership coming to an end in 2020, both the European Union and the ACP group are currently stimulating intense debates on a critical review of the past and future perspective as well as challenging issues for the future “acquis” between the ACP countries and Europe under the umbrella of the Cotonou Agreement.

Last month’s Joint Session of the ACP-EU Council of Ministers held in Brussels (May 28-29) May offered an occasion for discussing innovative options to outline new bases of common interests, needs and difficulties, and to forge forthcoming cooperation, particularly in terms of the post-2015 agenda, financing for development, migration, international trade, climate change and democratic governance.

At ACP level, there is a growing awareness among members that “the Group will have to transform itself if it wants to realise its ambition of becoming a player of global importance, beyond its longstanding partnership with the EU,” said ACP Secretary General, Dr Patrick I. Gomes.

“There is the need to re-balance the ACP-EU partnership in favour of the ACP Group” was one of the key messages from the 101^st ACP Council of Ministers held on May 27-28 to re-align ACP positions before the Joint Session with the European Union.

Within the European Union, there is also recognition of the relevance of the EU-ACP relationship. “Our exchanges of view on a number of key issues such as the post-2015 development agenda and migration once again underlined the importance of our partnership,” said Zanda Kalniņa-Lukaševica, Latvian Parliamentary State Secretary for E.U. Affairs, in a statement.

Zanda Kalniņa-Lukaševica (right), Latvian Parliamentary Secretary of State for E.U. Affairs and Meltek Livtuvanu, Minister for Foreign Affairs of Vanuatu and President of the ACP’s Council of Ministers. Photo Credit: EU Council

On paper, the Cotonou Agreement remains the most sophisticated framework for ACP-EU cooperation, covering political, trade, economic and development cooperation issues.

According to the last figures for the E.U. budget for 2014-2020, a package of 30.5 billion euros is specifically provided to ACP regions and countries. In fact, the ACP still remains the biggest group of states with which the European Union has a partnership.

The European Development Fund (EDF), an implementing instrument of the Cotonou Agreement, will finance E.U. development cooperation projects until 2020 to assist partner countries in poverty eradication. These funds will target the people most in need and finance different sectors such as health and education, infrastructure, environment, energy, food and nutrition.

Looking towards the future, the ACP is determined to move from being on the receiving end of development assistance to asserting its aim to speak with “one voice in global governance institutions”, in the words of ACP Secretary-General Gomes.

The need to consider and treat ACP countries as “responsible partners” at the global level despite the reluctance of the international community, emerged strongly during the E.U.-Africa Summit in  April 2014, with ACP members hoping for a lift-up effect on the ACP’s political leverage.

According to observers, ACP countries matter for the European Union partly to help overcome the effects of the economic crisis. Some ACP countries in the North African region, for example, have witnessed upturns in economic growth since 2004. At the same time, the abundance of natural resources in ACP countries provides an alternative to the volatile Middle East, Russia and some other countries as a source of energy and raw materials.

On the issue of financing for development, Alexandre Polack, European Commission Spokesperson for Humanitarian Aid and Crisis Management & International Cooperation and Development told IPS: “We need to come away from Addis with a comprehensive agreement which covers all the means of implementation for the post-2015 development agenda.”

He was referring to the Third International Conference on Financing for Development which will take place in Addis Ababa, Ethiopia from Jul. 13 to 16 this year.

“This,” added Polack, “means addressing non-financial aspects, including policies. We need an agreement which puts domestic actions and domestic capacities at the heart of poverty eradication and sustainable development, and adheres to the principles of universality in terms of shared responsibilities.”

Observers also point out that the ACP countries can also be important interlocutors during the U.N. Climate Change Conference this coming December in Paris.

While the Western industrialised and emerging countries are the main greenhouse gas emitters, many ACP countries – particularly Small Island Developing States (SIDS) – are directly threatened by the consequences of climate change through, for example, natural disasters, hurricanes and tornados, flooding and drought.

Their voice on this, along with their experience and good practices developed in countering or mitigating the drastic effects of climate change, can make a useful contribution to the deliberations in Paris.

Meanwhile, the ACP-EU Joint Council has endorsed recommendations concerning the migration crisis, including enacting comprehensive legislation on both trafficking in human beings and smuggling of migrants, stressing the differences between both phenomena, while also implementing relevant national laws.

The co-President of the Joint Council, Hon. Meltek Sato Kilman Livtuvanu of Vanuatu, speaking on behalf of the ACP ministers, said: “We consider that even if the military and security approach is meant to discourage and respond immediately to the issue, there is an urgent need to have a comprehensive approach to deal with the root causes of this phenomenon, in partnership with all the countries involved.”

Edited by Phil Harris   

By Fernando J. Cardim de Carvalho
RIO DE JANEIRO, Apr 1 2015 (IPS)

Even moderately well-informed analysts knew that the Brazilian economy was in dire straits as President Dilma Rousseff initiated her second term in office in January.

Unlike her predecessor, Luiz Inácio Lula da Silva (2003-2011), Rousseff had not the same luck with the situation of the international economy. But also, unlike Lula, Rousseff showed herself a poor saleswoman for Brazilian goods and an even poorer manager of domestic economic policy.

Fernando Cardim de Carvalho

There was a strong suspicion that economic policy, especially in the last two years of her first term, had been conducted in ad hoc ways and that serious adjustments would be needed to steer the economy back to working condition anyway. Still, the situation seemed to be even worse than most analysts feared.

More surprising, however, is to find out that Brazilian politics is also in dire straits. Caught off guard by the Petrobras corruption scandal, federal authorities, beginning with Rousseff herself, seemed to become paralysed by the rapid fall in public support, completely losing the power of initiative and creating a dangerous political vacuum in the country.

It is a vacuum rather than a political threat because the opposition seems to be as lost as the president. The political right, never very fond of democratic institutions any way, seemed to be more interested in making the president “bleed” – as stated by Senator (and former vice-presidential candidate) Aloysio Nunes Ferreira, of the Brazilian Social Democracy Party – than with fighting for political hegemony.

Economic problems were certainly fostered by the quality of economic policy-making in the second half of Rousseff’s first term. The realisation that tailwinds created by the Chinese demand for raw materials were no longer blowing led the government to implement a series of measures to stimulate the economy that turned out to be largely useless.

It was not “heterodoxy” that characterised the policy, it was uninformed wishful thinking. A plethora of measures were taken in isolation, without any apparent unifying strategy behind them, distributed mostly as “gifts” from the federal government (which later contributed to the public perception that corruption became a system of government). “Brazil is living through a very dangerous period right now. Neither the government, nor the parliamentary opposition are led by leaders the population trusts”

Plagued by semi-structural exchange rate problems, whereby Brazilian producers lose competitiveness in the face of imported goods in domestic markets and of other sellers in international markets, the federal administration tried to deal with them piecemeal, mostly through instruments like tax reductions or changes in tax rates.

Obsessed with car production, the government burned resources trying to stimulate production (only to meet increasing resistance of other countries to import them, most notably Argentina), again without any strategy thinking about how these newly-produced automobiles would be used in polluted and traffic-jammed Brazilian cities.

The federal government was not deficient only in terms of strategic thinking but also in terms of home caretaking: all available evidence points to the high probability that tax reductions and other similar measures were decided without any calculation of costs, lost fiscal revenues, and so on.

Anti-cyclical macroeconomic policy in late 2008 relied to a large extent on the expansion of consumption expenditures fuelled by increasing household indebtedness. The increase in non-performing loans and income stagnation made this option more and more unsustainable. Investment, in contrast, public and private, repeatedly frustrated expectations.

Unable to finance badly needed infrastructure investments, the government showed itself to be extraordinarily slow in devising appropriate strategies to attract private investors to implement them. Apparently lost in their own inability to define a way out of the mess, the government “muddled through” situations where more forceful definitions were required, as was the case of electric power.

The list of failures or of situations where the government showed inability to lead is long and well known. What was surprising to some extent was to find out that all evidence suggests that the government itself was unaware of what was going on.

Winning re-election by a narrow margin, President Rousseff, characteristically after a long period of hesitation, decided to take a 180-degree turn, asking a known orthodox and fiscal conservative economist to head an empowered Ministry of Finance, surprising even her supporters who seemed to be perplexed by the need to defend policies that they hotly denounced when presented by opposition politicians.

This picture would be difficult enough to manage without the Petrobras scandal. But Petrobras is not only the largest company in the country, it is practically a symbol of the nationality. Besides, energy was supposed to be Rousseff’s area of expertise and she was in fact responsible for the company’s policies for a while, as Minister of Mines and Power.

An increasingly loud murmur of a possible impeachment of the president led her to equivocal political decisions, beginning with the definition of her cabinet, widely considered to be particularly low quality, and alienating not only her major party in government, the Brazilian Democratic Movement Party, but even the majority of her own Workers’ Party.

The result of such initiatives was illustrated by the twin public demonstrations of Mar. 13 and 15.

On Mar. 13, nominal supporters of Rousseff marched through the streets of most of the largest cities in the country. Speaking to the press, most of the leaders of the march (Lula did not participate) declared conditional support for Rousseff – that is, conditional on the firing of the Minister of Finance and change of newly announced austerity policies.

On Mar. 15, an even larger crowd marched in the same cities declaring unconditional opposition to the president.

Brazil is living through a very dangerous period right now. Neither the government, nor the parliamentary opposition are led by leaders the population trusts. The president is slow and generally equivocal when making fateful decisions. The right-wing opposition seemed to be more interested in enjoying the possibility of enacting a “third” ballot to obtain at least a moral condemnation of the president.

This would be bad enough for a country that has just celebrated thirty years of civilian government. When the economy adds its own heavy problems to the political vacuum, it is impossible not to fear the future. (END/IPS COLUMNIST  SERVICE)

Edited by Phil Harris   

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

Excerpt:

Markets are critical to the success of Zimbabwe’s smallholder farmers. Credit: Busani Bafana/IPS

By Busani Bafana
BULAWAYO, Zimbabwe, Jan 29 2015 (IPS)

With agriculture as one of the drivers of economic growth, Zimbabwe needs to invest in the livelihoods of smallholder farmers who keep the country fed, experts say.

Agriculture currently contributes nearly 20 percent to Zimbabwe’s gross domestic product (GDP), due largely to export earnings from tobacco production. More than 80,000 farmers have registered to grow the plant this season.

But, even as tobacco harvests expand, food shortages continue to plague Zimbabwe, most dramatically since 2000 when agricultural production missed targets following a controversial land reform that took land from white farmers and distributed it to black Zimbabweans.Food shortages continue to plague Zimbabwe, most dramatically since 2000 when agricultural production missed targets following a controversial land reform that took land from white farmers and distributed it to black Zimbabweans

Depressed production has been blamed on droughts, but poor support to farmers has also contributed to food deficits and the need to import the staple maize grain annually.

Last year, the World Food Programme (WFP) reported that “hunger is at a five-year high in Zimbabwe with one-quarter of the rural population, equivalent to 2.2 million people, estimated to be facing food shortages …”

The report was dismissed by Zimbabwe’s deputy agricultural minister, Paddington Zhanda, who said that “the numbers [of those in need] are exaggerated. There is no crisis. If there was a crisis, we would have appealed for help as we have in the past. We are in for one of the best harvests we have had in years.”

WFP had planned to reach 1.8 million people out of the 2.2 million hungry people during the current period, but funding shortages meant that only 1.2 million were helped.

Last year, the government stepped in with maize bought from neighbouring countries. That year, Zimbabwe topped the list of maize meal importers, with imports from South Africa at 482 metric tons between July and September 2014. Only the Democratic Republic of Congo imported more maize meal during that time.

Agricultural economist Peter Gambara, who spoke with IPS, estimated that over one billion dollars is required to reach a target of two million hectares planted with maize.

“It costs about 800 dollars to produce a hectare of maize, so two million hectares will require about 1.6 billion dollars,” he said.

“However, the government only sponsors part of the inputs required, through the Presidential Inputs Scheme, the rest of the inputs come from private contractors, the farmers themselves, as well as from remittances from children and relatives in towns and in the diaspora.”

These inputs include fertilizer and maize seed. Zimbabwe Commercial Farmers’ Union president Wonder Chabikwa said he was worried that many farmers could fail to purchase inputs on the open market due to liquidity problems. Totally free inputs were ended in 2013.

Linking agriculture to the reduction of poverty was one of the first Millennium Development Goals (MDGs) with a target of cutting poverty in half by 2015. In fact, all MDGs have direct or indirect linkages with agriculture. Agriculture contributes to the first MDG through agriculture-led economic growth and through improved nutrition.

In low-income countries economic growth, which enables increased employment and rising wages, is the only means by which the poor will be able to satisfy their needs sustainably.

Smallholder farmers in Zimbabwe need adequate and appropriate inputs to improve their productivity. Credit: Busani Bafana/IPS

“Government should invest in irrigation, infrastructure like roads and storage facilities,” Gambara told IPS. “By supplying inputs through the Presidential Inputs Scheme, Government has done more than it should for small-scale farmers. This scheme resulted in the country achieving a surplus 1.4 million tonnes of maize last year.”

The surplus was linked, explained Agriculture Minister Joseph Made, to good rainfall.

Marketing of their produce is the biggest challenge facing farmers, said Gambara, who recommended the regulation of public produce markets like Mbare Musika in Harare through the Agricultural Marketing Authority (AMA).

Gambara maintains that the government should provide free inputs to the elderly, orphaned and other disadvantaged in society and consider loaning the rest of the small-scale farmers inputs that they will repay after marketing their crops.

“That will help the country rebuild the Strategic Grain Reserve (SGR), managed by the Grain Marketing Board,” he said. “However, the government has not been able to pay farmers on time for delivered produce and this is an area that it should improve on. It does not make sense to make farmers produce maize if those farmers fail to sell the maize.”

In the Maputo Declaration on Agriculture and Food Security in Africa of 2003, African heads of state and governments pledged to improve agricultural and rural development through investments. The Maputo Declaration contained several important decisions regarding agriculture, but prominent among them was the “commitment to the allocation of at least 10 percent of national budgetary resources to agriculture and rural development policy implementation within five years”.

Only a few of the 54 African Union (AU) member states have made this investment in the last 10 years. These include Burkina Faso, Ghana, Guinea, Mali, Niger, Ethiopia, Malawi and Senegal.

According to Gambara, as a signatory to the Maputo Declaration, Zimbabwe should have done more to channel resources to agriculture since 2000 when the country embarked on the second phase of land reform.

“Most of these (new) black farmers did not have the resources and knowledge to farm like the previous white farmers and such a scenario would demand that the government invests in research and extension to impart knowledge to the new farmers as well as provide schemes that empower these farmers, for example through farm mechanisation and provision of inputs,” he said.

Everson Ndlovu, development researcher with the Institute of Development Studies at Zimbabwe’s National University of Science and Technology, told IPS that government should invest in dam construction, research in water harvesting technologies, livestock development, education and training, land audits and restoration of infrastructure.

Ndlovu said there were signs that European and other international financial institutions were ready to assist Zimbabwe but a poor political and economic environment has kept many at a distance.

“The political environment has to change to facilitate proper business transactions, we need to create a conducive environment for business to play its part,” said Ndlovu. “Government should give farmers title deeds if farmers are to unlock resources and funding from local banks.”

Economic analyst John Robertson asked why the government should finance farmers which would be unnecessary if it had allowed land to have a market value and ordinary people to be land owners in order to use their land as bank security to finance themselves.

“Ever since the land reform, we have had to import most of our food,” Robertson told IPS. “Government should be spending money on infrastructural development that would help agriculture and other industries.”

Before the land reform, continued Robertson, Zimbabwe had nearly one million communal farmers, a number that increased by about 150,000 under Land Reform A1 and A2 allocations.

‘A1’ farms handed out about 150,000 plots of six hectares to smallholders by dividing up large white farms, while the ‘A2’ component sought to create large black commercial farms by handing over much larger areas of land to about 23,000 farmers.

“Only a few farms are being run on a scale that would encompass larger hectarage and that is basically because the farmers cannot employ the labour needed if they cannot borrow money,” Robertson said.

“Loans are needed to pay staff for the many months that work is needed but the farm has no income, so most smallholders work to the limits of their families’ labour input. That keeps them small and relatively poor.”

Edited by Lisa Vives/Phil Harris   

Engineers working on a 512 km pipeline to scale up the amount of gas transported to Dar es Salaam plants for electricity generation and other industrial supplies. Allegations of corruption in Tanzania’s energy sector are holding up foreign aid disbursement. Credit: Juma Mtanda

By Kizito Makoye
DAR ES SALAAM, Jan 18 2015 (IPS)

As foreign donors drag their feet on injecting badly needed cash into the government’s coffers, local analysts are increasingly worried that this will affect implementation of key development projects that require donor funding.

Donors – including the United Kingdom, Germany and the World Bank – are withholding 449 million out of 558 million dollars pledged for the 2014/15 budget, pending a satisfactory outcome to investigations over corruption in the energy sector.

Senior government officials have been accused by the Parliament of authorising controversial payments of 122 million dollars to Pan Africa Power Solutions Tanzania Limited (PAP), which claims to have bought a 70 percent share of the Independent Power Tanzania Limited (IPTL) – a private energy company contracted by the government to produce electricity.The government’s inability to wipe out corruption in the energy sector is setting a bad precedent because the country is poised to prosper economically in the wake of massive discoveries of natural gas resources.

“Many infrastructure development projects that require donor funding will probably stall due to this problem,” Benson Bana, a political analyst at Dar es Salaam University, told IPS. “Donors are keen to see their money is spent on intended objectives and government must learn a lesson to ensure that public funds are managed well.”

East Africa’s second largest economy after Kenya  is currently implementing a myriad of projects that require donor funding in the energy and  infrastructure sectors, such as construction of ports, roads and power plants  under a  25.2 billion dollar five-year development plan.

But the government said last year that the impending delay in the disbursement of aid funds may prompt it to shelve some critical projects until the next financial year.

The international Monetary Fund (IMF) has added its voice to the ongoing standoff between Tanzania and foreign donors, saying that further delay in disbursement of aid would certainly affect the country’s economic performance.

“Performance … was satisfactory through June, but has deteriorated since and risks have risen, stemming from delays in disbursements of donor assistance and external non-concessional borrowing, and shortfalls in domestic revenues,” the IMF said in a statement posted on its website in January 2015.

Tanzania is one of the biggest aid recipients in sub-Saharan Africa, with an annual aid inflow in grants and concessional loans ranging from 20 to 30 percent of its budget.

The move by donors to freeze aid over corruption concerns, said the IMF, is a stunning blow to the country’s economy.

“It will be critical to the business environment to address the governance issues raised by the IPTL case, which would also unlock donor assistance,” the IMF said.

The Ministry of Finance has unveiled a 19.6 trillion shilling (11.6 billion dollar) budget with plans to borrow 2.96 trillion shillings from domestic sources and about 800 million dollars from external sources to finance key projects.

“Achieving our revenue target is a matter of life or death; we are very serious in our quest to reduce reliance on foreign aid and we are refining our business environment to attract investments that can yield revenues,” said Finance Minister Saada Mkuya.

Critics told IPS that it is not wise for Tanzania to cling to unpredictable foreign aid to finance its budget after more than 50 years of political independence.

“For a country like ours to keep depending on donors to finance our development is not healthy, there’s no doubt many project will fail to take off because of this standoff,” Humphrey Moshi, an economist and professor at the University of Dar es Salaam, told IPS.

Political observers say that the government’s inability to wipe out corruption in the energy sector is setting a bad precedent because the country is poised to prosper economically in the wake of massive discoveries of natural gas resources.

“Corruption in the energy sector can be reduced by introducing strong accountability systems in the sector,” Zitto Kabwe, the chairman of a parliamentary oversight committee on public accounts, told IPS, adding that “legislations that subject contracts to parliamentary vetting and transparency would really help.”

Latest data from the Tanzania Petroleum Development Corporation show that Tanzania has estimated reserves of 53.2 trillion cubic feet of natural gas off its southern coast.  According to local analysts, these resources are more than enough to put the country on a path of economic development while ending its dependence on aid.

As the government grappled to bridge gaps in its budget, donors last week said  that they would only release the rest of the aid money pledged after seeing appropriate action taken against officials implicated in the so-called “escrow scandal”.

“Budget support development partners in Tanzania take the emerging IPTL case with the utmost seriousness and are carefully monitoring its development  as the case involves  large amounts of public funds,” Sinikka Antila, Finland’s ambassador to Tanzania and chairperson of Tanzania’s donor group, was quoted as saying.

In November last year, parliament called on government to sack senior officials, including the country’s Attorney General and  energy minister who, it said, had played an instrumental role to facilitate the dubious IPTL-PAP deal. The Attorney General, Frederick Werema, has since resigned.

In December, in a desperate bid to win back donor confidence, President Jakaya Kikwete sacked Anna Tibaijuka – a senior cabinet minister holding the land and human settlement development portfolio – for allegedly having received a1.6 billion shilling gift from one of the IPTL’s shareholders contrary to the government’s public leadership code of ethics.

In what appears to be a show of strength, the United States, through its Millennium Challenge Corporation (MCC), has expressed serious concern about the country’s sluggish pace in controlling corruption and has urged the government to take firm concrete steps to combat corruption as a condition for the approval of future aid.

“Progress in combating corruption is essential to a new MCC compact, as well to an overall improved business climate in Tanzania,” Mark Childress, U.S. Ambassador to Tanzania said in December 2014.

“We are encouraged by the State House’s announcement of December 9 that it will soon address the parliamentary resolutions linked to IPTL, and we urge quick government action, given the impact on several key development issues.”

Tanzania was one of 10 countries discussed by the MCC Board, which met in December to determine the eligibility of countries to begin or continue the compact development process.

If finalised, this would be Tanzania’s second MCC compact. Between 2008 and 2013, the MCC funded a 698 million dollar compact for investment projects in water, roads and electric power throughout Tanzania.

Edited by Phil Harris    

Water pouring through the sluice gates at Gariep Dam in Port Elizabeth, South Africa. Credit: Bigstock

By Carey L. Biron
WASHINGTON, Nov 18 2014 (IPS)

Industrialised countries have agreed to collaborate on a new programme aimed at funnelling significant private-sector investment into global infrastructure projects, particularly in developing countries.

The Global Infrastructure Initiative, agreed to Sunday by governments of the Group of 20 (G20) countries, will not actually be funding new projects. But it will seek to create investment environments that are more conducive to major foreign investors, and to assist in connecting governments with financiers.In developing countries alone these needs could require up to a trillion dollars a year of additional investment, though currently governments are spending just half that amount.

The initiative’s work will be overseen at a secretariat in Australia, the host of this weekend’s G20 summit and a government that has made infrastructure investment a key priority. This office, known as the Global Infrastructure Hub, will foster collaboration between the public and private sectors as well as multilateral banks.

“With a four-year mandate, the Hub will work internationally to help countries improve their general investment climates, reduce barriers to investment, grow their project pipelines and help match investors with projects,” Australian Prime Minister Tony Abbott and Treasurer Joe Hockey said Sunday in a joint statement. “This will help improve how infrastructure markets work.”

Some estimate the undertaking could mobilise some two trillion dollars in new infrastructure investment over the next decade and a half. This would be available to be put into electrical grids, roads and bridges, ports and other major projects.

The G20 has emerged as the leading multilateral grouping tasked with promoting economic collaboration. Together, its membership accounts for some 85 percent of global gross domestic product.

With the broad aim of prompting global economic growth, the Global Infrastructure Initiative will work to motivate major institutional investors – banks, pension funds and others – to provide long-term capital to the world’s mounting infrastructure deficits. In developing countries alone these needs could require up to a trillion dollars a year of additional investment, though currently governments are spending just half that amount.

In recent years, the private sector has turned away from infrastructure in developing countries and emerging economies. Between 2012 and last year alone, such investments declined by nearly 20 percent, to 150 billion dollars, according to the World Bank.

“This new initiative very positively reflects a clear-eyed reading of the evidence that there are infrastructure logjams and obstacles in both the developing and developed world,” Scott Morris, a senior associate at the Center for Global Development, a Washington think tank, told IPS. “From a donor perspective, this indicates better listening to what these countries are actually asking for.”

Still, Morris notes, it remains unclear what exactly the Global Infrastructure Initiative’s outcomes will be.

“The G20 clearly intends to prioritise infrastructure investment,” he says, “but it’s hard to get a sense of where the priorities are.”

Lucrative opportunity

The Global Infrastructure Initiative is the latest in a string of major new infrastructure-related programmes announced at the multilateral level in recent weeks.

In early October, the World Bank announced a project called the Global Infrastructure Facility, which appears to have a mandate very similar to the new G20 initiative. At the end of the month, the Chinese government announced the creation of a new Asian Infrastructure Investment Bank (AIIB).

Many have suggested that the World Bank and G20 announcements were motivated by China’s forceful entry onto this stage. As yet, however, there is little clarity on the G20 project’s strategy.

“With so many discreet initiatives suddenly underway, I wonder if the new G20 project doesn’t cause confusion,” Morris says.

“Right now it’s very difficult to see any division in responsibilities between the G20 and World Bank infrastructure projects. The striking difference between them both and the AIIB is that the Chinese are offering actual capital for investment.”

The idea for the new initiative reportedly came from a business advisory body to the G20, known as the Business 20 (B20). The B20 says it “fully supports” the new Global Infrastructure Initiative.

“The Global Infrastructure Initiative is a critical step in addressing the global growth and employment challenge, and the business community strongly endorses the commitments of the G20 to increase quality investment in infrastructure,” Richard Goyder, the B20 chair, said Monday.

“The B20 estimates that improving project preparation, structuring and delivery could increase infrastructure capacity by [roughly] 20 trillion dollars by 2030.”

Goyder pledged that the business sector would “look to be heavily involved in supporting” the new projects.

Poison pill?

Yet if global business is excited at the prospect of trillions of dollars’ worth of new investment opportunities, civil society is expressing concern that it remains unclear how, or whether, the Global Infrastructure Initiative will impose rules on the new projects to minimise their potential social or environmental impacts.

“Private investment in infrastructure is crucial for closing the infrastructure funding gap and meeting human needs, and the G20 initiative is an important move by governments to catalyse that private investment,” Lise Johnson, the head of investment law and policy at the Columbia Center on Sustainable Investment at Columbia University, told IPS.

“It is key, however, that the initiative and the infrastructure hub develop procedures and practices not only to promote development of infrastructure, but to ensure that projects are environmentally, socially and economically sustainable for host countries and communities.”

Prominent multilateral safeguards policies such as those used by the World Bank are typically not applied to public-private partnerships, which will likely make up a significant focus of the G20’s new infrastructure push. Further, regulatory constraints could be too politically thorny for the G20 to forge new agreement.

“In the 2013 assessment of the G20’s infrastructure initiative by the G20 Development Working Group, only one item of the whole infrastructure agenda ‘stalled’ – and that was the work on environmental safeguards,” Nancy Alexander, director of the Economic Governance Program at the Heinrich Boell Foundation, a think tank, told IPS.

“I’ve always gotten the feedback from the G20 that such policies are matters of national sovereignty.”

The G20 is now hoping that trillions of dollars in infrastructure spending will create up to 10 million jobs over the next 15 years, spurring global economic growth. Yet Alexander questions whether this spending will be a “magic bullet” or a “poison pill”.

“Some of us are old enough to remember how recklessly the petrodollars of the 1970s and 1980s were spent – especially on infrastructure … Then, reckless lenders tried to turn a quick profit without regard to the social, environmental and financial consequences, including unpayable debts,” she says.

“Seeing the devastation wrought by poorly conceived infrastructure, many of us worked to create systems of transparency, safeguards and recourse at the multilateral development banks – systems that are now considered too time-consuming, expensive and imperialistic.”

Edited by Kitty Stapp

The writer can be reached at cbiron@ips.org

A new road is built near Victoria Falls on the Zimbabwe-Zambia border. Credit: David Brossard/cc by 2.0

By Carey L. Biron
WASHINGTON, Oct 9 2014 (IPS)

The World Bank has initiated a major call to action for private sector investors around infrastructure projects in developing countries.

World Bank Group President Jim Yong Kim on Thursday launched a new initiative, worth some 15 billion dollars, aimed at motivating banks, pension funds and other institutional investors to turn their focus to the pressing, and growing, infrastructure needs in developing countries.“Institutional investors have deep pockets – insurance and pension funds have some 80 trillion dollars in assets.” -- World Bank President Jim Yong Kim

In announcing the new Global Infrastructure Facility (GIF), Kim estimated these needs would require up to a trillion dollars of additional investment each year through the end of this decade. That’s twice as much as these countries are currently spending.

The private sector has turned away from infrastructure in developing countries and emerging economies in recent years, the bank reports. Between 2012 and last year alone, such investments declined by nearly 20 percent, to 150 billion dollars.

“Given the scale of infrastructure financing needs in developing countries, we definitely welcome an initiative like this,” Marilou Uy, the incoming director of the Group of 24 (G24) developing countries and a former bank official, told IPS.

“The private sector’s role here is especially important: to find good models to work with, so that private investment in developing countries can start to rise again and grow to levels even higher than before.”

In a surprise to many, the bank’s sister organisation, the International Monetary Fund (IMF), this week came out forcefully in favour of public spending, particularly on infrastructure. The IMF and World Bank are currently holding semi-annual meetings here in Washington.

The GIF will start a number of pilot ventures later this year, reportedly with a focus on climate-friendly projects and those that can promote trade. But it will not be financing these initiatives directly.

Rather, it will aim to turn the private sector’s attention back towards the road, bridges, energy production and other large-scale physical projects that make up the foundation of any country’s economic and social development.

“Institutional investors have deep pockets – insurance and pension funds have some 80 trillion dollars in assets,” Kim said Thursday, speaking with reporters.

“But less than 1 percent of pension funds are allocated directly to infrastructure projects, and the bulk of that is in advanced countries. The real challenge is not a matter of money but a lack of bankable projects – a sufficient supply of commercially viable and sustainable infrastructure investments.”

Fundamental bottleneck

The World Bank is hoping the GIF will function as a conduit through which major investors, together with the development institution’s own experts, can advise governments how to structure infrastructure projects in order to entice investors looking for long-term opportunities. Kim said a “massive infrastructure deficit” in developing countries today constitutes a “fundamental bottleneck” in addressing poverty, the bank’s key mandate.

Perhaps in response to past criticisms, the bank also notes that the GIF will not simply try to move as much money into these projects as possible.

“We know that simply increasing the amount invested in infrastructure may not deliver on the potential to foster strong, sustainable and balanced growth,” Bertrand Badre, the institution’s managing director, said in a statement. “A focus on the quality of infrastructure is vital.”

The GIF will focus on fostering particularly complex partnerships between the public and private sectors, known as PPPs. In anticipation of Thursday’s announcement, the World Bank Group’s private-sector arm, the International Finance Corporation (IFC), has reportedly been ramping up its PPP units around the world.

Yet the growing dependence on the private sector in development aims continues to spark concern among many development advocates and anti-poverty campaigners, who worry that the goals of for-profit entities are often at odds with the public good.

“While the bank’s new infrastructure facility is welcome, we are concerned that any sudden push into new big-ticket infrastructure deals must improve the lives of ordinary people,” Nicolas Mombrial, the head of the Washington office of Oxfam International, a humanitarian and advocacy group, said Thursday.

“Therefore, the World Bank must ensure that new infrastructure lending comes fitted with proper safeguards in place to protect the poorest and most vulnerable communities from clients that might be more interested in profit over development. We need safeguards for people and not just for investors.”

The head of the GIF, meanwhile, cautions that the initiative is still in its very early days.

“I have been meeting with civil society organisations who were really interested in engaging with us on the GIF,” Jordan Schwartz, the official in charge of the new programme, told IPS.

“Like them, we want to ensure that decisions around infrastructure investment are sensitive to a wide range of environmental, social and economic considerations, so that not only is there benefit for the poor and for economic activity generally but so the investments are sustainable. We look forward to continuing that dialogue.”

PPP worries

Concerns around public-private partnerships are particularly notable around public water systems. In recent years, private companies around the world have shown growing interest in stepping into partnerships to resuscitate public water infrastructure that has often been underfunded for decades.

The World Bank’s IFC has been a major proponent of such deals. Yet some of these have sparked powerful backlash from critics who note that water privatisation has often resulted in higher costs and inequitable service.

This week, for instance, activists in Nigeria stepped up a campaign to urge the government to pull out of discussions with the IFC around a potential water project in Lagos. They say the scheme’s details are being kept from the public.

“Around the world, the IFC advises governments, conducts corporate bidding processes, designs complex and lopsided water privatisation contracts, dictates arbitration terms, and is part-owner of water corporations that win the contracts it designs and recommends, all while aggressively marketing the model to be replicated around the world,” Akinbode Oluwafemi, with Environmental Rights Action, a Nigerian advocacy group, told reporters Wednesday in Lagos, according to prepared remarks.

“Not only do these activities undermine democratic water governance, but they constitute an inherent conflict of interest within the IFC’s activities in the water sector, an alarming pattern seen from Eastern Europe to India to Southeast Asia.”

According to World Bank estimates, public money makes up some two-thirds of PPP financing around the world today. Watchdog groups say this underscores the heavy government subsidies that these projects have typically required, especially for important improvements.

“The GIF is part of a larger, renewed push for big infrastructure, which is troubling in part because of the history of human rights and environmental abuses associated with these projects,” Shayda Naficy, director of the International Water Campaign at  Corporate Accountability International, an advocacy group, told IPS.

“But it is also troubling because even where infrastructure is a dire need, as it is in the water sector, the emphasis being placed on the private sector is leading us in pursuit of illusory solutions. At least in the case of water, the private sector is not interested in making these investments in infrastructure.”

Edited by Kitty Stapp

The writer can be reached at cbiron@ips.org

By Roberto Azevêdo
GENEVA, Jul 29 2014 (IPS)

In the 1960s, there were high hopes for the development of the newly-independent sub-Saharan African countries but these hopes were quickly dashed following a series of shocks which began in the mid-70s, with the first oil price spikes, followed by a severe decline in growth and increase in poverty in the 80s and early 90s. However, by the mid-1990s, economic growth had resumed in certain African countries. Economic reform, better macroeconomic management, donor resources and a sharp rise in commodity prices were having a positive effect.

WTO Director General Roberto Azevêdo. Credit: WTO/CC BY SA-2.0

In the 2000s, many African countries witnessed high economic growth performance and during that period some of the world’s fastest growing economies were in sub-Saharan Africa. Angola, Nigeria, Chad, Mozambique and Rwanda all recorded annual growth of over 7 percent.

In 2012 Africa’s exports and imports totalled 630 billion dollars and 610 billion dollars respectively, ­ a fourfold increase since the turn of the millennium. And the long term prospects for growth are good. The Economist Intelligence Unit has forecast average growth for the regional economy of around 5 percent yearly from 2013-16.

Despite all this, the continent still plays a marginal role in the global market, accounting for barely 3 percent of world trade. One significant reason – although, of course there are others – is that African economies are still narrowly based on the production and export of unprocessed agricultural products, minerals and crude oil.“There is little doubt that the regional [African] market offers good scope for African firms to diversify their production and achieve greater value addition”

Now, due to relatively low productivity and technology, these economies have low competitiveness in global markets – apart from crude extractive products. The low productivity of traditional agriculture and the informal activities continue to absorb more than 80 percent of the labour force. And growth remains highly vulnerable to external shocks.

This story of half a century of struggle, set-backs and progress shows two things:

One, the road to meaningful and inclusive development still seems long.

Two, we are in a better position than ever to make real, sustainable progress.

Many countries are striving to do more in turning their strength in commodities into strengths in other areas,­ using commodities as a means of spurring growth across various sectors. The United Nations Economic Commission for Africa’s 2013 Economic Report echoes this ­ calling for the continent’s commodities to be used to support industrialisation, jobs, growth and economic transformation.

In line with this, I think there are a number of essential steps to take:

– diversification of economic structure, namely of production and exports;

– enhancement of export competitiveness;

– technological upgrading;

– improvement of the productivity of all resources, including labour; and

– reduction of infrastructure gaps.

Only by delivering in these and other areas can policymakers ensure that growth enhances human well-being and contributes to inclusive development. But how can we take these steps?

Of course I should say that although African countries share some common features, no unique set of policies, including those on trade and industrial policy, could ever fit for all in a uniform way. Even among the least-developed countries (LDCs), some are already exporters of manufactured products, although often they rely on a single product  while others are more dependent on commodities. Nevertheless, I think it is clear that some preconditions of success are universal.

African regional integration is of course very high on the policy agenda. There is little doubt that the regional market offers good scope for African firms to diversify their production and achieve greater value addition. Already now, manufactures constitute as much as 40 percent of intra-African exports, compared with 13 percent of Africa’s exports to the rest of the world.

The Bali Package, which World Trade Organisation members agreed in December last year, will help to resolve some problems. Inclusive, sustainable development was at the heart of the whole Bali project ­ and our African members played a crucial role in making it a success. It brought some progress on agriculture. It delivered a package to support LDCs. It provided for a Monitoring Mechanism on special and differential treatment.

And, in addition, Bali delivered the Trade Facilitation Agreement and this is a direct answer to some of the problems of fragmentation. Costly and cumbersome border procedures, inadequate infrastructure and administrative burdens often raise trade-related transaction costs within Africa to unsustainable levels, creating a further barrier to intra-African trade.

This Agreement will help to address some of these bottlenecks. It will support regional integration, and therefore complement the African Union’s efforts to create a continental free trade area. And it will begin to remove some of the barriers which prevent full integration into global value chains. As such it will create an added impetus for industrialisation and inclusive sustainable development.

And it is worth noting here that the Trade Facilitation Agreement broke new ground for developing and least-developed countries in the way it will be implemented.

Another vital issue here is the importance of agricultural development in industrialisation, and the role of industrial collaboration through regional cooperation. The contribution of the agriculture sector is of utmost importance for the establishment of a sound industrial base. It can provide a surplus to invest in industrial capacity building, and supply agricultural raw materials as inputs to the production process, especially for today’s highly specialised food processing industry.

Moreover, it can also significantly contribute to industrialisation by providing an ample supply of food products. This is because food constitutes a large share of what wage earners in African countries spend their money on. Its availability at low prices contributes to increase the purchasing power of wages, and therefore raise the competitiveness of a country in international markets. (END/IPS COLUMNIST SERVICE)

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Inequality, poor infrastructure and declining trade are some of the problems that Latin America needs to overcome if the region truly wishes to achieve a “golden age”, according to Peru’s President Ollanta Humala.

“We haven’t found the gold yet,” said Humala, a keynote speaker at the 6th International Economic Forum on Latin America and the Caribbean held this week in Paris. “We need to build a more modern and efficient state that offers services to everyone … We cannot overlook poor or vulnerable populations.”“Erasing inequality is absolutely fundamental because equality itself is a very important human right … At the same time, it’s a key to economic and social development. No country can reach high levels of development with huge levels of inequality” – Danilo Astori, Vice President of Uruguay

The conference, titled ‘Beyond the Golden Decade? Logistics and infrastructure, pillars of regional integration and global trade opportunities’, brought together policy-makers, economists, private-sector representatives and other experts from across Latin America, exploring measures to achieve inclusive growth and structural transformation in the region. Specific Caribbean issues seemed absent from the agenda, however.

The main mantra, repeated by many participants, was that inequality is a huge barrier to Latin America fulfilling its development potential.

“Erasing inequality is absolutely fundamental because equality itself is a very important human right,” the Vice President of Uruguay, Danilo Astori, told IPS. “At the same time, it’s a key to economic and social development. No country can reach high levels of development with huge levels of inequality.”

Income gaps between groups, whether based on ethnicity or gender, are not just “moral issues, they’re also macro issues”, said Julie Katzman, Executive Vice President of the Inter-American Development Bank, a co-organiser of the conference along with the Organisation for Economic Cooperation and Development (OECD) and France’s Ministry for the Economy and Finance.

Katzman said that 70 percent of those excluded from the financial system are women and that there was an 86 billion dollar financing gap for women-owners of small and medium-sized enterprises.

She told IPS that if this gap were closed by 2020, gross domestic product in Latin America would be 12 percent higher by 2030.

“The private sector has a big role to play,” she added. “When you combine financial inclusion and better infrastructure, then you can begin to address the issues being discussed.”

Danilo Astori, Vice President of Uruguay. Credit: Alecia McKenzie/IPS

She and other participants emphasised the need for better infrastructure as an “instrument of development”, the main subject of the conference. Roberto Zurli Machado, Director of Infrastructure and Basic Petrochemicals for Banco Nacional de Desenvolvimento Economico e Social (BNDES), said that the region had to modernise to bring its infrastructure to the desired level.

According to the OECD, logistic costs in the region account for between 18 and 35 percent of the value of products, compared with around 8 percent in OECD countries. Meanwhile, the quality of the road system in Latin America is below the level for middle-income countries, the organisation says.

Studies also indicate that improvements in logistics could increase labour productivity in the region by about 35 percent.

“All this affects the competitiveness of exports and the potential for integration,” said Angel Gurría, Secretary-General of the Paris-based OECD.

Peru’s President Ollanta Humala (left) meets France’s Economics Minister Arnaud Montebourg (centre) with OECD Secretary-General Angel Gurria (right). Credit: Alecia McKenzie/IPS

He said that developing an integrated logistics policy and improving the efficiency of customs procedures, through technology, could bring significant benefits in a short time span.

Such measures would also have an impact on inequality, Gurría said. “We need to raise awareness and to strengthen cooperation,” he told IPS, reiterating that “Latin America is not the poorest region but the most unequal.”

The conference, which brings together some 400 experts annually, is one way to address the region’s challenges, Gurría added. This year’s discussions are seen as particularly important because after a decade of relatively strong growth, “Latin America’s economic prospects are becoming more convoluted,” as the OECD puts it.

The region has been affected by the weakness of the euro zone and has experienced “declining trade, moderation of commodity prices and increasing reservation surrounding external monetary and financing conditions,” the organisation says.

It stresses that the rise in the prices of commodity exports “has led Latin American economies to substitute locally manufactured goods with imports, and contributed to a certain decrease in the region’s productive capacities.”

Achieving “improved logistics performance” would help bolster structural change in the region and “represent an opportunity for the insertion of the continent into the global trade,” according to the OECD.

Humala, the president of Peru, said that the region has great potential but faces many challenges, including the impact of climate change [the United Nations climate change conference – COP 20 – is scheduled to be held in Peru in December].

He said that Latin America would truly achieve a “golden age” when it solves its productivity problems and becomes more egalitarian. “The golden era is coming … hard times force us to look at opportunities,” he added.

Uganda’s inadequate road infrastructure has been blamed from the increased traffic congestion in the country, especially in the capital, Kampala. Credit: Amy Fallon/IPS

By Amy Fallon
KAMPALA, Feb 5 2014 (IPS)

There’s the good: “A slight delay of about a minute.”

The bad: “Terrible jam!!”

And the unbelievable: “No jam.” But as long as Kampala motorists and pedestrians are talking traffic, the eight Ugandan creators of new app called RoadConexion, are happy. For the time being, anyway.

“A problem we have here in Uganda is the roads, the infrastructure is terrible,” Lynn Asiimwe, the lead developer tells IPS.

“This is mainly the effect of bad governance and corruption. The effects are traffic jams, incomplete roads, and potholes everywhere.”

The 25-year-old, who is pursuing a master’s degree in inclusive innovation at the Graduate School of Business in the University of Cape Town, South Africa, works as a software developer with Access Mobile, a mobile technology company.

Asiimwe and her team worked on the app for free “out of passion”. And she hopes that the app, which won the Tech4Governance hackathon, a competition run by a local technology innovation hub called Hive Colab, will make leaders face up to these problems.

In 2010, President Yoweri Museveni promised to launch an investigation into corrupt road builders.

And in 2011 local newspaper, The Independent, stated that according to the Auditor General, money for maintaing road infrastructure was not well spent and that there were “alarming disparities in costs” as well as “shoddy standards, poor and late delivery by numerous contractors.”

But first RoadConexion needs to get people chatting.

The app lets users submit and receive real-time traffic reports on road repairs, accidents and traffic jams on almost any Kampala road featured on Google maps via the internet. Motorists and pedestrians can log into the site using Twitter and Facebook.

“We’re trying to get users engaged in the beginning,” says Asiimwe.

“If people realise that the traffic’s really bad they might start a conversation on their own and this conversation will hold these leaders accountable.

“We’re hoping that the officials will actually start doing something, start caring, actually start using the money in the right way.”

In Kampala bodabodas (motorbike taxis), matatus (mini-buses), cars, trucks and bicycles all jostle for road space.

According to local newspaper, the Monitor, there were 16,765 reported road accidents in Uganda in 2012, leaving thousands dead and hundreds maimed.

Asiimwe believes that corruption has led to “under-qualified companies taking on road works which leads to [sub-standard] work being done.”

“These roads tend to degrade in a few months leading to potholes and other forms of degradation. This degradation can’t handle the level of traffic, which results in traffic jams.”

According to a World Bank policy research document titled “Uganda’s Infrastructure: A Continental Perspective” providing the money and resource for road maintenance here “remains a challenge” with further investment needed to improve road safety.

Asiimwe adds: “These companies doing [sub-standard] road work need to be held accountable and we are trying to achieve that with RoadConexion.”

One bad example is a patch of road near Makerere University in central Kampala, where work was supposed to be completed by an international contractor by October last year but is yet to even commence.

“They already have the big banner up there saying who the contractor is, what they’re doing, how long the work is supposed to be for,” Asiimwe says.

“But when we got in touch they said ‘oh, we got into a few difficulties, funding didn’t come through on time’.

“The road is really dusty, the potholes are still there, but no one is letting the users know what’s going on.”

Currently RoadConexion receives between 50 to 100 views daily through computers and mobile phones, with most users checking in before the morning rush.

“Most people want to view, but few want to submit,” says Asiimwe.

“I’m realising that in Uganda we’re used to consuming, we’re not used to this mentality of sourcing,” Asiimwe says.

The development of RoadConexion follows the 2012 launch of Ma3Route, an app for Kenyan users. The mobile, web and SMS platform crowd-sources transport data and provides Nairobi road users with information on traffic, directions and driving reports.

“My desire to build a tool to help commuters in developing countries was further strengthened after I bought my first car once I got my first job and witnessed first-hand all the hours drivers waste in sometimes avoidable traffic due to lack of information,” creator Laban Okune tells IPS.

Okune, who grew up in Butere, a town in Kenya’s Western Province and went to Nairobi to study computer engineering, resolved to build a “triple threat tool” addressing traffic, directions, and reckless driving challenges faced by commuters in developing countries.

“The final straw was the road carnage witnessed in Kenya. Public transport vehicles traverse the roads, stuffed with people, swerve and overlap recklessly, causing them to roll off the road and spill passengers onto the ground.

“We lose so many lives.”

At least 2,000 in the space of nine months alone, according to one newspaper report.

Ma3Route users can receive directions and alerts on specific roads, report bad driving and even search number plates before they board a bus to check a driver’s track record.

Okune hopes to expand to other parts of Kenya. Ma3Route also has its sights set on Kampala and Dar es Salaam in Tanzania.

Fexlix Odongkara, director of the Automobile Association of Uganda, believes that traffic apps could be a good alternative to traffic reports on the morning and evening radio stations.

“Traffic jams in Uganda are getting worse. I’ve lived in this city for more than 30 years and every year it gets worse,” he tells IPS.

“The roads are not expanding in relation to the [increased number of] cars and the people. Apart from the small matatus and the bodabodas, there’s no public transport. Families bring all the cars into town.”

He said the only shortcoming of apps like RoadConexion will be that many people don’t have access to the internet at home or even in their offices. And if they do, some may not want to report traffic conditions because they may have already reported accidents to the police and are treated like suspects.

The World Bank has forecast traffic-related deaths will increase by 80 percent by 2020.

Odongkara says the biggest problem when it comes to Uganda’s roads is that too many people don’t know how to drive properly.

A group of flashmobbers took to the slopes in southeastern Kazakhstan on a crisp March morning this year to spell out a heartfelt SOS with their bodies.

In this case, SOS could have stood for “save our slopes:” the 70 activists who lay down in the snow to form the letters were protesting controversial plans to build a ski resort in an area of pristine natural beauty near the commercial capital, Almaty. Opponents were also calling attention to apparent conflicts of interest that surround the project and raise the potential for corruption.

The dispute over plans to develop the pristine slopes of Kok-Zhaylau (“green summer pasture” in Kazakh) pits the city government and powerful business interests against environmental activists and concerned citizens, who are fighting to preserve a beauty spot inside the Ile-Alatau national park. Despite the official designation, development in protected territory is legally possible in certain cases.

Supporters assert that the resort will attract tourists from as far afield as India and China, and with them a flood of investment and jobs. They say the project feeds into Kazakhstan’s strategy of promoting infrastructure projects and boosting the tourism sector to wean the economy off its current reliance on oil and gas exports.

“In 30-40 years the oil will finish, and mountain tourism could become the engine of Kazakhstan’s economy,” Bakitzhan Zhulamanov, head of Almaty City Hall’s Tourism Directorate, a driving force behind the project, argued at public hearings in January.

Opponents counter that development will damage the environment and threaten rare flora and fauna.

“What is the chief objective of national parks? To preserve biological diversity; preserve forests; preserve water resources; preserve unique types of Red Book flora and fauna which inhabit the territory of the national park?” asked Sergey Kuratov, head of the Green Salvation environmental group. “Or to develop mountain tourism, exhausting water resources; chopping down forests; annihilating rare fauna; destroying glaciers; ruining landscapes?”

The plans – which Kuratov argues contravene national law and international environmental commitments – are not finalised, but are well-advanced. A feasibility study has been conducted by two companies, Canada’s Ecosign Mountain Resort Planners (an international leader in ski resort design) and the Kok-Zhaylau firm, founded and owned by Almaty City Hall.

According to Ecosign’s website, if plans are approved, 77 ski slopes will be constructed stretching 63 kilometres, with 16 lifts capable of carrying 10,150 skiers at a time. In addition, hotels with a total of 5,736 beds will be built.

The resort is “intelligently planned according to the state-of-the-art international planning and development standards,” Ecosign says.

The goal is to attract a million visitors a year from within a four-hour flight radius of Almaty, spanning areas of India, China and Russia. Opponents argue this target is unrealistic. An influx would undoubtedly change the face of Kok-Zhaylau, whose unspoiled slopes are currently reached by most visitors via a steep three-hour hike.

Many opponents say they have no objections to building a new ski resort near Almaty (which already boasts several, including a popular spot at Shymbulak), but not inside a national park.

“We’re not trying to get rid of the plans for developing a ski resort, for developing the mountains, because […] we would also love our country to develop, but our position is that we call for all kinds of ski resorts to be placed out of the national park,” Nursultan Belkhojayev, a member of the Initiative Group of Kok-Zhaylau Protection (an unofficial body with no funding), told EurasiaNet.org.

Developers “are going to change the habitat of the endemic species” in the park, added group member Zhamilya Zhukenova. This includes the endangered snow leopard – a symbol of both Kazakhstan and the city of Almaty.

According to an open letter to President Nursultan Nazarbayev against the project signed by over 8,000 people, the area is home to 811 types of flora (including 17 listed as endangered by Kazakhstan) and 1,700 types of fauna.

Officials at Kazakhstan’s Environmental Protection Ministry told EurasiaNet.org it has no jurisdiction over Almaty’s municipal government. City Hall’s Tourism Directorate rejected environmental “misgivings” as “verbal assertions without the presentation of any proof,” it told EurasiaNet.org in a written response to a query about the issue. There will be solid environmental safeguards, it added, and international experience will be considered “to reduce to a minimum the impact on the environment.”

The Kok-Zhaylau firm said it was attentive to environmental concerns, but studies had shown that the area selected has the best climatic and geographical conditions for the resort. “We are hearing and listening to public misgivings,” it told EurasiaNet.org in writing. “This is a normal process – the exchange of opinions with society.”

The company said it was preparing to conduct environmental field research, “so at this point public misgivings about the resort’s negative impact on the environment are not supported by facts – the results of ecological studies.”

Zhulamanov has pledged that if research finds that the project will seriously damage the environment, it will be abandoned. He has promised to replant more trees than will be chopped down, and install webcams for real-time public monitoring of construction.

City Hall also is dismissive of concerns about the potential for corruption and cost-overruns, saying that the close scrutiny to which the project is subject guarantees transparency. There is big money involved: as currently envisioned, the state will invest 700 million dollars in infrastructure and seek 2.1 billion dollars in private investment.

Misgivings have also been voiced about potential conflicts of interest. According to a report published in the Alau monthly last September, Zhulamanov, the official propelling the project forward, is a long-time associate of Serzhan Zhumashev, the chairman of Capital Partners, which has built several major infrastructure projects around Almaty, including reconstructing the Shymbulak ski resort.

Capital Partners managing director Aleksandr Guzhavin stepped down to head the new Kok-Zhaylau company founded by City Hall.

Capital Partners did not respond to requests for comment, and in its written response city hall did not answer a question about potential conflicts of interest. The Kok-Zhaylau firm rejected the idea as unfounded in any “official information.”

*Editor’s note:  Joanna Lillis is a freelance writer who specialises in Central Asia.

This story originally appeared on EurasiaNet.org.

President Barack Obama doubled down on a new push for infrastructure investment in a major speech Friday, highlighting roads, ports and bridges that many say have suffered from decades of insufficient upkeep.

“When the American Society of [Civil] Engineers put out their 2013 report card on our national infrastructure, they gave it the best overall grade in 12 years … the bad news is we went from a D to a D+,” President Obama said, speaking at a port in Miami.

“We still have all kinds of deferred maintenance. We still have too many ports that aren’t equipped for today’s world commerce. We’ve still got too many rail lines that are too slow and clogged up. We’ve still got too many roads that are in disrepair, too many bridges that aren’t safe.”

The American Society of Civil Engineers (ASCE) annual report the president referenced was released earlier this month and has spurred a debate over infrastructure and spending in Washington and beyond.

“We know that investing in infrastructure is essential to support healthy, vibrant communities. Infrastructure is also critical for long-term economic growth, increasing GDP, employment, household income, and exports. The reverse is also true – without prioritizing our nation’s infrastructure needs, deteriorating conditions can become a drag on the economy,” the report states.

On Friday, President Obama outlined a new plan that, he said, would seek to attract private investment for public infrastructure, while also creating new bonds and offering more loans for similar projects.

1.3 trillion dollars needed

A think-tank in Washington has one idea for leveraging private investment toward infrastructure: encourage the investment of labour union pension funds in infrastructure projects.

“Couple [our poor state of infrastructure] with pension funds, which are long-term, patient investors, with stable, risk-adjusted returns, and this fits well with our fiduciary duty,” Dan Pedrotty, managing director of benefits and pensions at the American Federation of Teachers, said Thursday at the release of a report on the topic at the Center for American Progress (CAP).

Pension funds present a viable alternative to traditional public financing because their large-scale assets and long-term nature give them the ability to put up a large amount of capital and see projects through to their payoff—obstacles typically thought to be too large for any investor except the federal government.

The report also suggests the time is ripe, both economically and politically, for this kind of change.

“We will need an extra 1.3 trillion dollars in infrastructure investments over the next 10 years,” Donna Cooper, co-author of the report and a senior fellow at the Center for American Progress, said Thursday. She was referring in part to the recent American Society of Civil Engineers report.

“There is [also] an unemployment rate of 14 percent in construction … and a reduction in construction investment.”

The report focused on the business interests of investors, but also the unique benefits the plan can generate for the labour unions themselves.

For example, a paper from the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) that outlines its infrastructure investment standards says it encourages pension funds to “invest in infrastructure projects that utilize union construction labor and protect the jobs, collective bargaining rights and working conditions of current employees.”

And as with any policy discussion in Washington right now, the overall mood of fiscal constraint lends the plan particular appeal.

“Putting existing money to use is certainly much more politically popular than spending new money,” Baruch Feigenbaum at the Reason Foundation, a free-market-oriented think tank, told IPS.

Supplementing government money with private investment from pension funds could also free up scarce government grants, the new report states, to go to projects “where user fees or other dedicated revenues are not likely to be sufficient to repay investors”.

Charting a way forward

Going forward, the report highlights structural changes that should be made to facilitate greater union pension fund investment in infrastructure.

Those proposals included the establishment of a national infrastructure bank with experts “who have the background and expertise to build working relationships with pension funds” and bringing back taxable bonds like Build America Bonds, which provided more of a federal subsidy to state and local governments than traditional bonds.

Obama’s speech on Friday went on to propose such an infrastructure bank and introduced America Fast Forward Bonds modeled on the success of the earlier Build America Bonds.

Much of the discussion on Thursday also focused on models that the U.S. could use in designing such a shift.

In 2012, for instance, as part of a strategy to strengthen the UK’s Manchester Airports Group (MAG), a Melbourne-based pension fund manager, Industry Funds Management (IFM), bought a 35-percent stake in the group. The additional capital allowed MAG to buy another airport and plan a large-scale renewal project to balance out the airport market share that Heathrow Airport Holdings had come to gobble up over the years.

The deal resulted in a 10-percent increase in employment and a 26-percent increase in underlying operating profit.

But smaller-scale models also exist in some U.S. cities already, like Chicago, which established the Chicago Infrastructure Trust in 2013 that functions much like the infrastructure bank suggested by the report and proposed by President Obama Friday.

The trust’s six board members are tasked with reaching out to private investors and developing financing strategies for different public works projects.

“Hopefully those local projects can spur on the federal government,” Pedrotty said Thursday.

A group of environmentalists, gender activists and international finance watchdogs are calling on the U.S. government to support calls for the World Bank to step back from a new programmatic focus on large-scale infrastructure, which critics say does little to help alleviate poverty.

The call comes just ahead of a major funding meeting, to be held Mar. 20-21 in Paris, of donors to the International Development Association (IDA), the World Bank’s fund for the world’s poorest countries. In a background briefing released earlier this month outlining priorities for the IDA meeting, the bank includes a new thematic proposal to fund large-scale infrastructural projects.Almost 100 percent of jobs went to men, not only in building the coal plants and mines but even office jobs, while women lost jobs.

In discussing examples of what it calls regional transformational initiatives, referring to large projects with cross-border scope, the brief notes proposals for large, multi-billion-dollar dams in Africa and South Asia, among others.

“Based on decades of experience, we believe that the complex regional projects that IDA proposes risk undermining important goals of [the current IDA negotiations], including Inclusive Growth, Gender Equality, and Climate Resilience,” states a letter, signed by six U.S.-based advocacy organisations and policy experts and sent to the U.S. Treasury on Monday, a copy of which was seen by IPS.

“We recommend that IDA members drop the special theme of Regional Transformational Initiatives, and that IDA shift its focus on infrastructure solutions that are more effective at addressing the energy needs of the poor and at fostering inclusive growth, gender equality and climate resilience.”

The letter also calls on the U.S. government to “support such a shift in the negotiations”.

Although the World Bank was unable to offer comment by IPS’s deadline, in its briefing paper bank officials note that recent years have seen an increased international push towards these large-scale regional projects. This includes a major policy initiative unveiled at the Group of 20 (G20) countries summit in Mexico last year, itself based on a paper written in part by bank researchers.

“The focus on regional transformational projects arises from the recognition that they have the potential to catalyze very large-scale benefits to improve access to infrastructure services beyond borders and promote joint action to tackle shared challenges,” the bank states, reporting that a World Bank programme has raised three billion dollars for such projects in recent years.

“In particular, it reflects the recognition that the infrastructure deficit in IDA countries is a basic impediment to development and that regional solutions are needed given the large financing requirements necessary.”

The World Bank estimates that electricity-related investment requirements in sub-Saharan Africa alone will triple over the next two decades, to nearly 14 billion dollars.

Back in fashion

For critics, much of the current concern revolves around past experiences in which large, centralised projects were the focal points of international development and poverty-alleviation efforts, including by the World Bank.

“For us, this issue goes back to the 1950s through 1970s, an era when governments hoped for a silver bullet that, in one fell swoop, would allow them to modernise economies,” Peter Bosshard, policy director for International Rivers, an advocacy group and a signatory of the new letter, told IPS.

“After a while, however, people realised that these projects were too complex, and were forced to rely on outside technologies, management and knowhow. In addition to often huge time and cost overruns, the benefits remained below expectations – they didn’t trickle down to the poor – even while social and environmental impacts were greater than anticipated.”

The letter points out, for instance, that while multilateral donors have invested billions of dollars in two dams and electrification projects in the Democratic Republic of Congo, today only six percent of the population has access to electricity.

“Now, for reasons the World Bank doesn’t quite address, these big regional projects have come back into fashion,” Bosshard says. “In other documents, bank staff members have suggested that it’s simply cheaper and easier for the institution to push out, say, a single large loan for a big dam rather than dozens of smaller loans for dozens of smaller projects.”

The letter to the U.S. Treasury notes that large-scale infrastructure projects in the past have failed to create a “significant” number of jobs for locals. (The Treasury declined to comment for this story.)

Yet even when jobs are created, some investigations have suggested that the projects have an inordinately negative impact on women.

“Our studies found a very specific pattern surrounding these projects: almost 100 percent of jobs went to men, not only in building the coal plants and mines but even office jobs, while women lost jobs,” Elaine Zuckerman, president of Gender Action, a Washington advocacy group and a signatory of the new letter, told IPS. She says her office has studied the effects of four World Bank-financed oil-and-gas pipelines.

“Smallholder women, who make up 80 percent of farmers in developing countries, lose their land to bank-financed associated infrastructure,” she continues. “So men get the jobs and women lose access to their income. A good number are even forced to turn to sex work to make a living – we found elevated HIV levels in the aftermath of each of these projects.”

Strengthening climate resilience

Since the last spate of interest in large-scale infrastructural interventions, two important changes have taken place. First are concerns over climate change and a new focus on fostering “climate resilience”, particularly in developing countries; second, small-scale, non-centralised alternative power sources have become significantly more affordable.

“Diversified solutions are increasingly more appropriate because they mean diversifying the risks of a changing climate, while these big centralised projects actually increase climate vulnerability,” International Rivers’ Bosshard says.

“IDA has all of these other important goals, including strengthening climate resilience, but this large infrastructure proposal undermines each of those.”

Still, many of these new technologies face ongoing problems in accessing both credit and trained technical personnel. Bosshard and others suggest this would be a place where World Bank financing could be critical, offering support to “public guarantee schemes, technical assistance programs and a redesign of tax and other incentives that could remove these bottlenecks.”

The IDA negotiations are scheduled to continue to a second round in June, after which each country will be expected to announce individual funding pledges.

An Adivasi tribesperson walks down a forest path in India’s Chhattisgarh state. Credit: Virppi Venell

By Ed McKenna
NEW DELHI, Feb 22 2013 (IPS)

Over a decade ago, the Dongria Kondh tribe – tucked away in the Niyamgiri hills, a mountain range in the eastern Indian state of Orissa – found itself under attack.

For centuries the tribe had lived peacefully in the hills, worshipping the sacred ‘mountain of law’ and protecting the forests surrounding it. But when the London-based Vedanta Resources mining conglomerate discovered a rich deposit of bauxite atop the same mountain, the community found their ancient land suddenly up for grabs.

A huge push by international NGOs, local forest rights groups, tribal representatives and legal advocates here finally managed to shut down the factory in 2012.

A crucial step along the way to victory was the amendment of the 2006 flagship Scheduled Tribes and other Traditional Forest Dwellers (Recognition of Forest Rights) Act, making it mandatory for developers to first obtain the consent of gram sabhas (or village councils) before commencing work on projects that would affect forest dwelling communities.

Today, the fruits of that hard-won struggle – which secured some degree of protection for the rights and environment of endangered tribal communities in India – are once again under threat.

Earlier this month the ministry of environment and forests (MoEF) retracted the clause in the 2006 Forest Rights Act (FRA) that gave tribal groups the power to reject major infrastructure projects that endanger their land and livelihoods.

The ruling, made public on Feb. 5, stated that “linear” projects – meaning those involving the construction of roads and canals, and the laying of pipelines, optical fibres and transmission lines — will all be exempt from the need to acquire consent of village communities affected by the clearance, diversion and pollution of their forest land.

The government thus gave itself – and its many private partners — the green light to divert forests or displace tribal communities at will.

The ruling also effectively renders powerless the guideline contained within the FRA that “no member of a forest dwelling Scheduled Tribe or other traditional forest dweller shall be evicted or removed from forest land under his occupation till the recognition and verification procedure is completed.”

Dr. Swati Shresth from the Global Forest Coalition told IPS the MoEF’s ruling is “a continuation of land grabbing and a violation of the rights of traditional forest dwellers in the name of development, economy and national good”.

The decision to exempt linear projects is the first step towards diluting the FRA, according to Ashish Kothari from Kalpavriksh, one of India’s oldest development and conservation NGOs.

“Over the last few years the government has hardly implemented the FRA, and now that communities are asserting their rights by using it to resist projects they consider damaging to their environment and livelihoods, the government is desperate to find ways to bypass them,” Kothari told IPS.

The recent controversial decision has sparked an outcry resulting in letters of protest to the Prime Minister’s Office (PMO) signed by a coalition of international rights organisations including Oxfam and Rights and Resources, as well as a letter of protest signed by a large group of Indian lawyers.

Ruling against resistance?

The Bhumia tribal community practices sustainable forestry: these women returning from the forest carry baskets of painstakingly gathered tree bark and dried cow dung for manure. Credit: Manipadma Jena/IPS

For over seven years, India’s village councils have leveraged provisions in the FRA to block attempts by the South Korean Pohang Steel Company (POSCO) to forcibly acquire their land.

In early February there were attempts to evict farmers from their land in the Jagatsinghpur district of Orissa, in order to make way for a giant, 12-billion-dollar steel plant with a capacity of four million tonnes.

Various Indian and international organisations – including South Korean NGOs – have registered their disgust at the violent attempts to forcefully acquire the land.

According to a statement released on Feb. 3 by the All India Forum of Forest Movements (AIFFM), “Around 4,000 families who will be affected by the project do not want their homes and livelihood sources to be ceded for construction of the integrated steel plant.”

Thanks to the new ruling, these communities no longer have a legal leg to stand on in defense of their land.

In response to concerns that the recent decision could diminish the state’s capacity to safeguard tribal rights, Tribal Affairs Minister Kishore Chandra Deo assured IPS that the government “will always remain committed to strengthening the gram sabhas of India”.

That even this “bare minimum” requirement has now been revoked does not bode well for tribal rights.

“By withdrawing this major provision, the government can pretend to hold ‘consultations’ in the form of public hearings but negate the core principle of the FRA – the right of communities to determine what happens to their environment,” Shresth told IPS.

Making way for growth

According to Sanjay Basu Mallick from the AIFFM, “This (decision is supposedly) about the county’s flagging GDP and creating access for mining industries in the name of economic development.

“But in human terms this is an undemocratic step towards total neglect of the development and welfare of forest communities,” he told IPS.

Growth in Asia’s third-largest economy slowed to its weakest in nearly a decade to 6.2 percent in the fiscal year ending in March 2012, announced the International Monetary Fund in a report released early February.

“In 2011/12, India’s growth rate was 6.5 percent. That figure is expected to drop to 5.4 percent in 2012/13,” said the IMF.

The international lending organisation blamed a lack of investment in infrastructure and delays in land clearance for industrial projects as major reasons for the drop in GDP.

Prime Minister Manmohan Singh’s government is taking steps towards boosting the economy, including a raft of pro-market reforms announced in 2012. Despite these reforms to restore growth, the IMF believes that “more needs to be done”.

Last November, a leaked report from the Prime Minister’s Office recommended “diluting” tribal rights, likely in response to pressure from mining conglomerates and related industries to expedite clearance on major projects. According to the National Highways Authority of India, a total of 101 infrastructure projects, including 32 road projects, have been stalled due to clearance delays.

“The PMO has been lobbying the MoEF to amend the 2009 order due to increasing pressure from the private sector on him to speed up clearance for large mining operations to commence,” Basu Mallick told IPS.

The MoEF finally buckled last December, when it announced that existing coal mining projects could bypass the process of a public hearing, as stipulated in the FRA, and receive a one-time capacity expansion of up to 25 percent.

That move now finds echo in the recent reversal of the FRA provision for tribal consent, experts say.

“The broad context to this is that in the blind pursuit of economic growth, processes such as local community consent are seen as impediments rather than essential aspects of a genuine democracy,” Kothari noted.

Former Angolan soldiers participate in a masonry course offered by Odebrecht's Acreditar Programme in Luanda. Credit: Mario Osava/IPS

By Mario Osava
LUANDA, Jan 30 2013 (IPS)

Brazil has turned to large infrastructure as a unique way to globally expand its economy and build up its political influence, with the added bonus of furthering the development of small nations. But this strategy is not without its risks.

Angola, which has been a major focus of Brazil’s transnational construction companies, faces the economic challenges typical of a young nation dependent on revenue from oil exports and with high levels of corruption, in a context where the line between public and private interests is hazy.

An example that serves to illustrate this blurring of the lines is Companhia de Bioenergia de Angola (BIOCOM), a local biofuel company that is preparing to produce sugar, ethanol and electricity to meet domestic consumption needs.

To implement this project, which includes 32,000 hectares of sugarcane crops and the construction of an industrial plant, the Brazilian giant Odebrecht partnered up with the country’s state oil company Sonangol and the private Angolan company Damer Indústria.

Damer was founded in 2007, on the eve of BIOCOM’S inception, by then Sonangol Head Director Manuel Domingos Vicente and two generals, Manuel Helder Vieira Dias, chief of the presidential military department, and Leopoldino Fragoso, a top presidential adviser.

Vicente, now vice president of Angola, has joint investments with the two generals in the oil industry, real estate and a range of other fields. These are the most visible examples of the state’s role as an incubator for business operators and the “national bourgeoisie” that is emerging from it.

Almost everything in Angola is dependant on the government. Lands are state-owned and all business ventures begin with a government concession for the necessary plot or facilities. Sonangol has partnered up with countless companies, investing its vast oil income.

The government’s nepotism and favouritism are no secret, but these practices find little active opposition in a scantly organised civil society. “Even God, when looking for a saviour for mankind, chose his own son,” is how Angolans humorously explain the wealth amassed by government and military officials and their relatives.

Journalist Rafael Marques de Moraes heads an anti-corruption organisation that regularly posts reports online denouncing serious cases of corruption, many of them well-documented, but so far these reports have failed to trigger public scandals, as might be expected in any other country.

Odebrecht moves in this context, occupying a privileged position as a government contractor and partner due to its role in the implementation of strategic power generation, water supply and road construction works, services that are sorely needed by the population. After 28 years of operating in the country, it has not only become a leader in infrastructure works, it is also a major investor in a wide range of industries, raking in multi-million-dollar profits that are not made public.

Emilio Odebrecht, CEO of the Brazilian conglomerate, visits Luanda every year to meet with Angola’s long-standing president, José Eduardo dos Santos (in office since 1979).

The group boosted its visibility through its involvement in the Nosso Super supermarket chain – present nationwide with 29 stores and the crown jewel of Luanda’s commerce – and the Belas Shopping mall, and through its participation in the capital’s urban redevelopment, which includes upgrading slums, expanding avenues and constructing basic sanitation works.

Its policy of employing and training local labour further increases the company’s influence in the construction sector. While this is the same strategy that Odebrecht applies in all 35 countries where it operates, it is of particular importance in Angola, as the lack of skilled workers is hindering the country’s development despite the oil boom.

Odebrecht is currently the country’s largest private employer, with some 20,000 workers hired directly. Ninety-three percent of its work force is made up of Angolans.

Odebrecht’s first work in Angola – the Capanda hydroelectric power plant – served “as a school to train an elite” group of technicians, who are currently holding senior positions in the government and in business, says Justino Amaro, the first Angolan to sit in Odebrecht Angola’s board of directors.

Training workers is an essential part of every project implemented by Odebrecht. As of mid 2012, 79,000 Angolans had benefited from the company’s training programmes. University student recruits receive special training and are groomed to occupy senior positions in the company.

In major projects, Odebrecht also offers technical training for the population living in the surrounding areas, preparing any interested young people – not just potential employees – for construction jobs. These technical courses are provided through the company’s Acreditar programme, which so far has trained some 3,000 workers in its three Angola units.

Odebrecht’s corporate social responsibility actions, which include providing poor communities with running water, schools, electricity and recreational opportunities, bolster the cooperation-for-development image projected by the company through its construction activities.

This is especially valuable in Angola, a country that is still being built after 37 years of independent life, and which is undergoing a process of post-war reconstruction.

But, above all, Angola has been a very lucrative business for Odebrecht, helping it become one of Brazil’s leading companies and the most globalised. In this sense, a common complaint among well-informed Angolans is the high cost of Odebrecht’s works.

Other Brazilian construction companies, such as Andrade Gutierrez, Camargo Correa and Queiroz Galvão, are also seizing the business opportunities afforded by the Angolan market.

Brazil’s strong presence in the country is not strictly private. The large projects implemented by these companies are supported by loans from Brazil’s state-owned development bank (BNDES), which finances the exporting of inputs and services necessary for such works.

In 2008 this contributed to making Angola the leading African importer of Brazilian goods, above the more populous South Africa and Nigeria, both of which have larger economies. But in 2010, imports plummeted to half their 2008 level, recovering only slightly over the following years.

Such are the risks of operating in an economy dependent on fluctuating oil prices and with high costs of living and production due to the energy boom. Its currency tends to be overvalued and that makes national products more expensive and imported goods cheaper.

The Angolan government fosters national production to substitute for imports, which are inundating the domestic market. BIOCOM is part of that effort, as is the Special Economic Area established some 30 kilometres from Luanda, with 73 industrial plants and an initial infrastructure built by Odebrecht.

However, greater market liberalisation could thwart many agricultural and industrial ventures. Which is why Angola rejects the free trade agreement proposed by the Southern African Development Community (SADC), of which it is a member, along with 13 other countries.

A free trade agreement could bring changes not only to the economy but also to government, and that poses a risk for projects tied to current government officials whose decisions may be questioned in the future. While for the time being dos Santos’ 33-year regime seems unshakable, industrial projects like BIOCOM’s are very long-term ventures.

Lake Budi has already been affected by the construction of the bridge to Huapi Island. Credit: Marianela Jarroud/IPS

By Marianela Jarroud
PUERTO SAAVEDRA, Chile, Dec 27 2012 (IPS)

For more than two decades, Mapuche indigenous people in the Chilean region of Araucanía have been fighting the construction of the Ruta Costera (Coastal Highway), a megaproject initially conceived during the Augusto Pinochet dictatorship (1973-1990) which has already caused significant archeological and cultural losses and damages.

The Coastal Highway is meant to connect one end of Chile’s long, narrow territory to the other, running north to south as close to the Pacific Ocean as possible. The completed highway would be more than 3,340 km long, of which more than 2,600 km have already been built.

This highway project has become one of the main challenges facing numerous successive governments in Chile, who have consistently come up against the opposition of native communities.

In the Araucanía region, 674 km south of Santiago, the Coastal Highway would encompass 41.6 km of the Puerto Saavedra-Toltén section, precisely where the Budi Indigenous Development Area is located.

The authorities maintain that the initiative will help to integrate isolated areas, decrease travel times and promote the development of new tourism destinations.

Studies by the Universidad de la Frontera note that the area is home to “a long cultural history and clear links to this history through archeological testaments and continued cultural practices, with a high prevalence of aspects that reflect the identity and world vision of the region.”

The ancestral inhabitants of the area are the Lafkenche, a branch of the Mapuche indigenous people whose name means “people of the sea”.

Leonardo Calfuneo is a Lafkenche “lonko” (chief) in the community of Konin Budi, made up of some 60 families.

“We are opposed to this megaproject because, for the Mapuche people, it will not bring progress or development, but rather the irreparable destruction of our culture,” he told Tierramérica*.

Calfuneo lives with his wife on a small parcel of land in a cozy wood house, where they offer the bitter herbal tea known as “mate” and “sopaipillas” (deep-fried flatbread) to their guests.

“We make a living from small-scale farming, we are peasants, we are a people with a centuries-old culture and we have always lived off of the land,” he said.
Calfuneo has personally confronted the advances made by the highway project, which is not being undertaken by a construction company, but rather by the Military Work Corps, a branch of the Chilean armed forces.

In March, the military corps and their machinery carried out work on his land without authorization, destroying hedges made up of medicinal plants as well as one of the community’s sacred religious sites.

“They are coming through here and destroying everything in their path to widen the road. We are not only losing our lands, but also medicinal plants and drainage areas,” he reported.

In his community, “each family has three, five or 10 hectares to live on,” a small area of land considering that only a few decades ago this entire area was made up by Mapuche communal lands.

Through Decree Law 2568, passed in 1979, the Pinochet dictatorship divided up these communal lands into individual properties. Many of these were acquired by private parties, largely companies in the tree plantation, energy and fish farming sectors.

Local authorities claim that the Coastal Highway will enhance interconnection along the coast and thus promote the economic development of the region.

“This is a project that has taken a long time to complete, and we would like to be able to overcome the obstacles it has faced,” Andrés Molina, the governor of Araucanía, told Tierramérica.

“We support this project for various reasons. But, in practice, we have not been able to conduct an assessment of the social and economic profitability of these roads,” he admitted.

Although the quality of roads in the area has improved, “now we are working towards a social profitability study in order to be able to move forward with paving. We won’t be able to do anything until we have internally conducted a social assessment that will make it possible for us to invest as a country,” he said.

Molina’s goal is to “move forward with this as soon as possible and hopefully get the project started by the end of 2013.”

These deadlines frighten Luis Aillapán, who is the “gempin” of the community of Konin Budi – the guardian of knowledge on the culture, religion and philosophy of the Mapuche people. For him, the construction of the highway represents “great suffering”.

“We are used to our natural surroundings, to walking a short distance to the sea and fishing for the resources we need,” he told Tierramérica.

Aillapán grows crops and raises a few animals. He and his family feed themselves with what the land and sea provide for them. From his house he looks out to the Pacific Ocean on one side, green fields on the other, and a few hills that form part of the coastal mountain range.

But on the edge of his lands, the military workers and their machinery are clearing the way for the highway.

“Some of our own people have turned against us, and during the night we hear gunshots that are meant to intimidate us,” he charged.

His wife, Catalina Marileo, and their four-year-old son were charged in 2002 with assaulting civil servants from the Ministry of Public Works who were carrying out feasibility studies for the project.

Later, Aillapán, his wife, his sister-in-law Margarita Marileo and Marileo’s husband were charged and tried under the country’s anti-terrorism law, which was passed during the dictatorship and is now used almost exclusively to penalize Mapuche resistance.

The municipality of Saavedra, covering some 401 sq km between the Pacific Ocean and Lake Budi, a saltwater lake, had a population of 13,481 in 2009. More than 80 percent of its inhabitants live in rural areas, and 73.2 percent identify themselves as Mapuche.

There are 3,295 people living in the Budi Indigenous Development Area, who make up 24.4 percent of the municipality’s total population. And on Huapi Island, located in Lake Budi, there are 43 communities inhabited by some 5,000 Mapuches.

A study by the Universidad de la Frontera commissioned by the government in 2001 reported that 45.2 percent of the population was in favor of the Coastal Highway while 52.9 percent opposed it.

The situation changed when the former mayor of Puerto Saavedra, Ricardo Tripainao, traveled around the communities to explain the benefits of the highway, such as the higher prices they could charge for their products and the millions that the government would pay them for expropriating their lands.

Tierramérica observed that today, many people are angered over the government’s failure to comply with these payments and by the increase in the width of the land to be expropriated, which was initially 13 meters, but in many parts has reached 20 or even 25 meters.

But among the inhabitants of the municipal capital of Puerto Saavedra, an urban area with numerous tourist attractions, feelings towards the highway are favorable, since it will attract more visitors and reduce the town’s isolation.

The Military Work Corps camp in charge of the highway construction is moving to one of the shores of Lake Budi, a cultural heritage protected area.

Governor Molina says that there are “plans” for consultation with the indigenous communities, as established by International Labour Organization Convention 169, since “the idea is for the project to be carried out on a participatory basis.”

Convention 169, which was adopted in 1989 and entered into force in Chile in 2009, establishes guarantees for indigenous communities, and in particular the right to be consulted on activities or projects in their territories.

However, said Molina, “We are not going to carry out consultations until the project has been fully approved.”

* This story was originally published by Latin American newspapers that are part of the Tierramérica network. Tierramérica is a specialised news service produced by IPS with the backing of the United Nations Development Programme, United Nations Environment Programme and the World Bank.

Excerpt:

Greater integration of public passenger transport is a major challenge facing the next government of the Mexican capital, one of the most traffic-congested cities in the world, if it wants to guarantee people the right to mobility.

The authorities of the Mexico City Federal District have invested billions in collective transport, but have failed to create a balanced, multi-modal transportation system.

“Part of integration is physical – making it much easier to move from one system to another,” said Bernardo Baranda, the director for Latin America of the Institute for Transportation and Development Policy (ITDP).

“It also has to do with the design of stations, and improving the integration of multimodal transport,” Baranda, whose office is based in Mexico City, told IPS.

ITDP, a U.S.-based non-governmental organisation that provides technical assistance to cities on sustainable transportation development throughout Asia, Africa, and the Americas, advises the Mexico City government.

The Metrobus system carries 800,000 passengers a day in Mexico City. Mariana Gil/ EMBARQ Brasil/CC BY 2.0

In the metropolitan area of Mexico City, made up of the Federal District and several municipalities in the surrounding Mexico state, there are 49 million daily trips, of which 53 percent are carried out on public transport and 17 percent in private vehicles, according to the Centre for Sustainable Transport for Mexico City (CTS-Mexico).

The transport system in this area of over 20 million people is made up of buses, minibuses, the Metro Collective Transport System and the Metrobus, which are often disconnected from each other. They transport 14.8 million people a day.

Mayor Marcelo Ebrard of the leftwing Party of the Democratic Revolution (PRD), in office since 1997, will be succeeded on Dec. 5 by his PRD colleague Miguel Mancera.

The metro system, with a network of 11 lines totalling 201 kilometres, moves five million passengers a day, a number only surpassed by the 6.8 million people who travel in private cars, according to figures from the road and transport secretariat.
The Metrobus, with four routes and a total of 95 kilometres, transports some 800,000 passengers a day.

Among the main factors contributing to the lack of integration in the expanding public transport system is the proliferation of shanty towns on the outskirts of Mexico City, according to experts, who are offering the next city administration different formulas for creating a more humanised mass transit system.

“A major concern is the lack of public policies for controlled urban development,” Daniel Zamudio, an expert with El Poder Ciudadano (Citizen Power), told IPS.

“Continual housing development means journeys are getting longer and longer, less safe and more costly,” said Zamudio, the public transport coordinator for the NGO.

In its comprehensive transport and mobility programme for 2007-2012, the government of the capital promised to create 10 routes for Metrobus and a bus rapid transit (BRT) system with pre-paid cards, exclusive lanes and articulated vehicles.

But only four Metrobus routes were built, and the authorities opted instead to build the 12th line of the metro, 24 kilometres long, at a cost of two billion dollars, to link the west and east sides of Mexico City. It is about to be inaugurated.

Ebrard also chose to build new stretches of elevated highway, which promote the use of private cars, according to critics of this move.

Total public and private investment in transport infrastructure has amounted to 4.7 billion dollars over Ebrard’s six-year term.

Even so, some of the plans for 2007-2012 remain pending for the Mancera administration to complete.

“We must ask the incoming government to be more aggressive in expanding Metrobus and improving current operations. The priority has got to be quality public transport. Work must begin in the most underprivileged areas, like the east of the city,” Baranda said.

On Tuesday Oct. 23, ITDP presented a plan titled “Perspectivas de crecimiento de la red de Metrobus y transporte integrado del Distrito Federal a 2018” (Prospects for growth in the Metrobus network and integrated transport in the Federal District to 2018), which proposes annual growth in the system of between 25 and 30 kilometres and the addition of 10 new routes by 2018, benefiting two million additional passengers.

The report estimates an annual investment of 117 million dollars. In 2013 a network linking the east and south of the capital could be built, a project that the city government has already planned.

The 10 new routes would save 290,000 hours a day in commuting time; signify a reduction in emissions of 11,000 tonnes of carbon dioxide, one of the greenhouse gases responsible for global warming; and reduce traffic accidents by 30 percent.

“It is necessary to create additional routes that feed into the Metrobus system, so that more people will start using mass public transport. Furthermore, bus stops and metro stations must be restructured to make them accessible and promote the right to mobility,” Zamudio said.

Since Oct. 17, commuters have been able to purchase the Federal District card and use it to ride both the metro and Metrobus. In future, it will also be possible to use the card to pay for bus transport, taxis and parking meters, as well as to rent bicycles.

Mancera has already been given the “Acuerdos para la Movilidad” (Agreements on Mobility) drawn up by “Citizens with a Vision,” made up of six civil society organisations that suggest expanding, modernising and integrating a quality public transport network.

They also point out the need to consolidate a legal and institutional framework for better public transport.

In terms of mobility, the group recommends articulating urban development and mobility policies; moving towards a more compact and orderly city; and achieving efficient and sustainable public investment in transport.

The measures proposed by ITDP would improve public spaces and passenger safety, reduce transit times, expand coverage by the mass transport network, decongest saturated transport corridors and improve the connectivity of the network.

“Mobility problems are solved by prioritising public transport. A good transport system serves the needs of the people,” Baranda said.