Chandrasekhar Chalapurath, an economist at Jawaharlal Nehru University in New Delhi, talks about development banks in India, at the International Seminar on the BRICS Bank. Credit: Mario Osava/IPS

By Mario Osava
FORTALEZA, Brazil, Jul 17 2014 (IPS)

The creation of BRICS’ (Brazil, Russia, India, China and South Africa) own financial institutions was “a disappointment” for activists from the five countries, meeting in this northeastern Brazilian city after the group’s leaders concluded their sixth annual summit here.

The New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA), launched Tuesday Jul. 15 at the summit in the northeastern Brazilian city of Fortaleza, represent progress “from United States unilateralism to multilateralism,” said Graciela Rodriguez, of the Brazilian Network for the Integration of Peoples (REBRIP).

But “the opportunity for real reform was lost,” she complained to IPS at the International Seminar on the BRICS Bank, held in this city Wednesday and Thursday Jul. 16-17 as a forum for civil society organisations in parallel to the sixth summit.

The format announced for the NDB “does not meet our needs,” she said.

The NDB will promote “a new kind of development" only if its loans are made conditional on the adoption of low-polluting technologies and are guided by the Millennium Development Goals and their successors, the Sustainable Development Goals. -- Carlos Cosendey, international relations secretary at the Brazilian foreign ministry
The bank’s goal is to finance infrastructure and sustainable development in the BRICS and other countries of the developing South, with an initial capital investment of 50 billion dollars, to be expanded through the acquisition of additional resources.

“We want an international system that serves the majority, not just the seven most powerful countries (the Group of Seven),” that does not depend on the dollar and that has an international arbitration tribunal for financial controversies, said Oscar Ugarteche, an economics researcher at the National Autonomous University of Mexico.

“It is unacceptable that a district court judge in New York should put a country at risk,” he told IPS, referring to the June ruling of the U.S. justice system in favour of holdouts (“vulture funds”) in their dispute with Argentina, which could force another suspension of payments.

“We need international financial law,” similar to existing trade law, and an end to the dominance of the dollar in exchange transactions, which enables serious injustice against nations and persons, like embargoes on payments and income in the United States, he said.

“Existing international institutions do not work,” and the proof of this is that they have still not overcome the effects of the 2008 financial crisis, said the Mexican researcher.

Major powers like the United States and Japan have unsustainable debt and fiscal deficits, yet are not harassed by the International Monetary Fund (IMF), in contrast to the treatment meted out to less powerful nations, particularly in the developing South.

During the seminar, organised by REBRIP and Germany’s Heinrich Böll Foundation, oft-repeated demands were for civil society participation, transparency, environmental standards and consultation with the populations affected by projects financed by the NDB.

These demands have not yet been included in the NDB but may be discussed during its operational design over the next few years, while the group’s parliaments ratify its approval, said Carlos Cosendey, international relations secretary at the Brazilian foreign ministry, in a dialogue with activists.

Participants at one of several panels at the International Seminar on the BRICS Bank, held Jul. 16-17 in Fortaleza, Brazil. Credit: Mario Osava/IPS

Cosendey said that a disadvantage of the multilateral bank was the need for its regulations not to be confused with infringement of national sovereignty of member states. The political, cultural, legal and ethnic differences between the five countries could pose a major obstacle to the adoption of common criteria, he said.

The NDB can be constructive “if it integrates human rights” into its principles and presents solutions for the social impacts of the projects it finances, said Nondumiso Nsibande, of ActionAid South Africa, an NGO.

“We need roads, other infrastructure and jobs, as well as education, health and housing,” but big projects tend to harm poor communities in the places where they are carried out, she told IPS. It is still not known what levels of transparency and social concern the bank will have, she said.

In the view of Chankrasekhar Chalapurath, an economist at Jawaharlal Nehru University in New Delhi, the NDB will alleviate India’s great needs for infrastructure, energy, long distance transport and ports. However, he does not expect it to make large investments in one key service for Indians: sanitation.

Having an Indian as the bank’s first president, as the five leaders have decided, will help attract more investments, but he said people’s access to water must remain a priority.

Cosenday said the NDB will promote “a new kind of development.”

But Chalapurath told IPS that this will only happen if its loans are made conditional on the adoption of low-polluting technologies and are guided by the Millennium Development Goals and their successors, the Sustainable Development Goals, as well as human rights and other best practices.

Adopting democratic processes within the bank will facilitate dialogue with social movements, parliaments and society in general, he said.

Incorporating environmental issues and gender parity is also essential, said Ugarteche and Rodriguez, who regards this as necessary in order to make progress towards “environmental justice.”

Not only roads and ports need to be built; even more important is the “social infrastructure” that includes sanitation, water, health and education, said Rodriguez, the coordinator of the REBRIP working group on International Economic Architecture.

Mobilising resistance to large projects that affect local populations in the places they are constructed will be part of the response to the probable priority placed by the NDB on financing physical infrastructure projects, she announced.

The social organisations gathered in Fortaleza, with representatives from Brazil, India, China, South Africa and other countries that are not members of the group, are preparing to coordinate actions to influence the way the bank and its policies are designed, and to monitor its operations and the actions of the BRICS group itself.

Brazilian economist Ademar Mineiro, also of REBRIP, said there was potential for national societies to influence the format and policies of the NDB, and time for them to organise and mobilise. “It is an unprecedented opportunity,” he told IPS.

Russia did not originally support the BRICS bank, preferring private funding. But Mineiro said its position changed after the United States and the European Union involved multilateral financial institutions like the World Bank in sanctions against Moscow for its annexation of Crimea, a part of Ukraine.

BRICS evolved “from the economic to the political,” with its members demanding more power in the international system. The alliance is one of the pillars of the Chinese strategy to conquer greater influence, including in the West, said Cui Shoujun, a professor at the School of International Studies of Renmin University in China.

“The BRICS need China more than the other way round,” he told IPS, adding that the Chinese economy is 20 times larger than South Africa’s and four times larger than those of India and Russia.

As well as seeking natural resources from other countries, among the reasons why China has joined and supports BRICS is strengthening the legitimacy in power of the Communist Party through internal stability and prosperity, the academic said.

(END)

Female cannabis plant. Credit: Bokske/CC BY 3.0

By Emilio Godoy and Inés Acosta
MEXICO CITY/MONTEVIDEO, Sep 27 2013 (IPS)

In Latin America, where marijuana is the most widely consumed illegal drug, there is basically no home-grown research into its effects and properties. But possible legalisation in Uruguay and the Mexican capital could open the door to new studies.

“We can’t close our eyes to serious research in other parts of the world,” Rodolfo Rodríguez, a scientific researcher at the department of pharmacology in the National Autonomous University of Mexico (UNAM) medical school, told IPS.

Rodríguez, who has been studying different psychotropic substances for 45 years, is one of six experts making up the Marijuana and Health Group at the National Academy of Medicine who are completing a theoretical study on the medicinal and therapeutic effects of Cannabis sativa.

One of Rodríguez’s interests is to learn about the drug’s effects in patients with chronic or terminal diseases, such as fibromyalgia, multiple sclerosis, or certain kinds of cancer.

The results of their work, set to come out in October or November, will inform the debate that Mexico City authorities are holding with a view to legalising the medical use of marijuana.

The left-wing city government of Miguel Mancera and the Mexico City legislative assembly are assessing the health, economic and security aspects of legalisation.

“It’s a plant with more than 400 chemical substances and more than 70 cannabinoids,” Rodríguez said. “When it is consumed, the effects aren’t only due to the delta-9 [tetrahydrocannabinol or THC, the primary psychoactive ingredient in marijuana], but to the combination of all of the chemical compounds.”

Marijuana is mostly grown in the western and southern states of Mexico, largely to supply the lucrative U.S. market. Tens of thousands of small and large farmers and rural workers depend on the illegal crop for a living.

It is used by four million people in this country of 118 million, making it the most widely consumed drug, followed by cocaine, according to the health ministry’s National Addiction Survey 2011.

In Uruguay, far to the south, it is also by far the drug of choice, consumed by slightly over eight percent of the population. But almost all of the marijuana used in the South American country is smuggled in from outside, especially from Paraguay.

Consumption and possession of small amounts of marijuana for personal use are not penalised in Uruguay, a country of 3.3 million people sandwiched between Argentina and Brazil.

And the lower house of Congress has approved a draft law that would legalise and put the production, distribution, and sale of marijuana in the hands of the state. It is expected to make it through the Senate shortly and be passed into law, with the votes of the ruling left-wing Broad Front party.

More than 6,000 studies on the properties and effects of cannabis were published in scientific journals from 2010 to 2012, according to NORML, an organisation that advocates the legalisation of marijuana.

Uruguayan biologist Cecilia Scorza, assistant researcher at the Clemente Estable Institute for Biological Research, said “it’s not worth working on something that has been studied for so long, because it would not be original research.

“With marijuana, there can be differences in terms of the quantity of the active ingredient. But it’s always the same ingredient, and the effects are the same too,” she told IPS.

She pointed out that this is not at all the case for the cheap cocaine derivative known in South America as basuco, paco or pasta base, which poses a great potential risk to the user’s health.

The drug’s impact on the region and the lack of scientific research on it have made it a prime focus of studies. “In 2005, we began to research the chemical composition of the drug and its pharmacological effects on the central nervous system,” Scorza said.

But she said it would be original to study the chemical composition of the marijuana that has begun to be produced in Uruguay, “because it would give us a notion of what people will be consuming under the new law.”

Psychologist Gabriela Olivera, a technical adviser to Uruguay’s National Secretariat on Drugs, said research was indispensable to help users stay safe.

The draft law foresees the provision of “information and education that would make it possible, for example, for a person in certain health conditions who consumes marijuana to know that if they use such and such a quantity there is an active ingredient that could provide benefits, but would also have negative consequences,” Olivera told IPS.

To carry out experiments with psychoactive substances, a permit is currently needed from the National Secretariat on Drugs, which only exceptionally makes available a small quantity from drugs that have been confiscated.

“That makes systematised research impossible,” Olivera said.

Once it is passed, the law will create the Institute for the Regulation and Control of Cannabis (IRCCA), whose mission will include advising the government and providing scientific evidence.

The evidence would involve “all aspects, from the chemical composition of the marijuana that will be sold, to the effects on people, depending on its different uses – medicinal or recreational,” Olivera said.

In addition, the Technical Forensic Institute, the Technical Police laboratory, and the Chemistry Faculty of the University of the Republic are designing a research protocol on the potency of THC and other components of the marijuana that is trafficked illegally today, the director of the Uruguayan Observatory on Drugs, Héctor Suárez, told IPS.

Research on the varieties produced and sold legally would be regulated once IRCCA was up and running, he said.

In Mexico City, meanwhile, even if the medicinal use of marijuana is legalised, patients would not start receiving prescriptions overnight, Rodríguez said.

“We are not prepared for that,” the UNAM researcher said. “We have the knowledge and the infrastructure, but it would imply an educational process in health institutions.”

Treatment with marijuana “cannot be within reach of just any doctor, and learning about it can take months or even years,” he added.