brad brace contemporary culture scrapbook

September 25, 2008

Corruption Index 2008

Filed under: corporate-greed,government,wealth — admin @ 3:52 am

“Persistently high corruption in low-income countries amounts to an “ongoing humanitarian disaster”

“Against a backdrop of continued corporate scandal, wealthy countries backsliding too.”

With countries such as Somalia and Iraq among those showing the highest levels of perceived corruption, Transparency International’s (TI) 2008 Corruption Perceptions Index (CPI), launched today, highlights the fatal link between poverty, failed institutions and graft. But other notable backsliders in the 2008 CPI indicate that the strength of oversight mechanisms is also at risk among the wealthiest.

“In the poorest countries, corruption levels can mean the difference between life and death, when money for hospitals or clean water is in play,” said Huguette Labelle, Chair of Transparency International. “The continuing high levels of corruption and poverty plaguing many of the world’s societies amount to an ongoing humanitarian disaster and cannot be tolerated. But even in more privileged countries, with enforcement disturbingly uneven, a tougher approach to tackling corruption is needed.”

The 2008 Results

The Transparency International CPI measures the perceived levels of public-sector corruption in a given country and is a composite index, drawing on different expert and business surveys. The 2008 CPI scores 180 countries (the same number as the 2007 CPI) on a scale from zero (highly corrupt) to ten (highly clean).

Denmark, New Zealand and Sweden share the highest score at 9.3, followed immediately by Singapore at 9.2. Bringing up the rear is Somalia at 1.0, slightly trailing Iraq and Myanmar at 1.3 and Haiti at 1.4.

While score changes in the Index are not rapid, statistically significant changes are evident in certain countries from the high to the low end of the CPI. Looking at source surveys included in both the 2007 and 2008 Index, significant declines can be seen in the scores of Bulgaria, Burundi, Maldives, Norway and the United Kingdom.

Similarly, statistically significant improvements over the last year can be identified in Albania, Cyprus, Georgia, Mauritius, Nigeria, Oman, Qatar, South Korea, Tonga and Turkey.

Strengthening oversight and accountability

Whether in high or low-income countries, the challenge of reigning in corruption requires functioning societal and governmental institutions. Poorer countries are often plagued by corrupt judiciaries and ineffective parliamentary oversight. Wealthy countries, on the other hand, show evidence of insufficient regulation of the private sector, in terms of addressing overseas bribery by their countries, and weak oversight of financial institutions and transactions.

“Stemming corruption requires strong oversight through parliaments, law enforcement, independent media and a vibrant civil society,” said Labelle. “When these institutions are weak, corruption spirals out of control with horrendous consequences for ordinary people, and for justice and equality in societies more broadly.”

Global fight against poverty in the balance

In low-income countries, rampant corruption jeopardises the global fight against poverty, threatening to derail the UN Millennium Development Goals (MDGs). According to TI’s 2008 Global Corruption Report, unchecked levels of corruption would add US $50 billion (€35 billion) – or nearly half of annual global aid outlays – to the cost of achieving the MDG on water and sanitation.

Not only does this call for a redoubling of efforts in low-income countries, where the welfare of significant portions of the population hangs in the balance, it also calls for a more focussed and coordinated approach by the global donor community to ensure development assistance is designed to strengthen institutions of governance and oversight in recipient countries, and that aid flows themselves are fortified against abuse and graft.

This is the message that TI will be sending to the member states of the UN General Assembly as they prepare to take stock on progress in reaching the MDGs on 25 September, and ahead of the UN conference on Financing for Development, in Doha, Qatar, where commitments on funding aid will be taken

Prof. Johann Graf Lambsdorff of the University of Passau, who carries out the Index for TI, underscored the disastrous effects of corruption and gains from fighting it, saying, “Evidence suggests that an improvement in the CPI by one point [on a 10-point scale] increases capital inflows by 0.5 per cent of a country’s gross domestic product and average incomes by as much as 4 per cent.”

Corporate bribery and double standards

The weakening performance of some wealthy exporting countries, with notable European decliners in the 2008 CPI, casts a further critical light on government commitment to reign in the questionable methods of their companies in acquiring and managing overseas business, in addition to domestic concerns about issues such as the role of money in politics. The continuing emergence of foreign bribery scandals indicates a broader failure by the world’s wealthiest countries to live up to the promise of mutual accountability in the fight against corruption.

“This sort of double standard is unacceptable and disregards international legal standards,” said Labelle. “Beyond its corrosive effects on the rule of law and public confidence, this lack of resolution undermines the credibility of the wealthiest nations in calling for greater action to fight corruption by low-income countries.” The OECD Anti-Bribery Convention, which criminalises overseas bribery by OECD-based companies, has been in effect since 1999, but application remains uneven.

Regulation, though, is just half the battle. Real change can only come from an internalised commitment by businesses of all sizes, and in developing as well as developed countries, to real improvement in anti-corruption practices.

Fighting corruption: A social compact

Across the globe, stronger institutions of oversight, firm legal frameworks and more vigilant regulation will ensure lower levels of corruption, allowing more meaningful participation for all people in their societies, stronger development outcomes and a better quality of life for marginalised communities.

September 18, 2008

The Iraq War Will Cost $3 Trillion, and Much More

Filed under: corporate-greed,usa,wealth — admin @ 4:43 am

There is no such thing as a free lunch, and there is no such thing as a free war. The Iraq adventure has seriously weakened the U.S. economy, whose woes now go far beyond loose mortgage lending. You can’t spend $3 trillion — yes, $3 trillion — on a failed war abroad and not feel the pain at home.

Some people will scoff at that number, but we’ve done the math. Senior Bush administration aides certainly pooh-poohed worrisome estimates in the run-up to the war. Former White House economic adviser Lawrence Lindsey reckoned that the conflict would cost $100 billion to $200 billion; Defense Secretary Donald H. Rumsfeld later called his estimate “baloney.” Administration officials insisted that the costs would be more like $50 billion to $60 billion. In April 2003, Andrew S. Natsios, the thoughtful head of the U.S. Agency for International Development, said on “Nightline” that reconstructing Iraq would cost the American taxpayer just $1.7 billion. Ted Koppel, in disbelief, pressed Natsios on the question, but Natsios stuck to his guns. Others in the administration, such as Deputy Defense Secretary Paul D. Wolfowitz, hoped that U.S. partners would chip in, as they had in the 1991 Persian Gulf War, or that Iraq’s oil would pay for the damages.

The end result of all this wishful thinking? As we approach the fifth anniversary of the invasion, Iraq is not only the second longest war in U.S. history (after Vietnam), it is also the second most costly — surpassed only by World War II.

Why doesn’t the public understand the staggering scale of our expenditures? In part because the administration talks only about the upfront costs, which are mostly handled by emergency appropriations. (Iraq funding is apparently still an emergency five years after the war began.) These costs, by our calculations, are now running at $12 billion a month — $16 billion if you include Afghanistan. By the time you add in the costs hidden in the defense budget, the money we’ll have to spend to help future veterans, and money to refurbish a military whose equipment and materiel have been greatly depleted, the total tab to the federal government will almost surely exceed $1.5 trillion.

But the costs to our society and economy are far greater. When a young soldier is killed in Iraq or Afghanistan, his or her family will receive a U.S. government check for just $500,000 (combining life insurance with a “death gratuity”) — far less than the typical amount paid by insurance companies for the death of a young person in a car accident. The stark “budgetary cost” of $500,000 is clearly only a fraction of the total cost society pays for the loss of life — and no one can ever really compensate the families. Moreover, disability pay seldom provides adequate compensation for wounded troops or their families. Indeed, in one out of five cases of seriously injured soldiers, someone in their family has to give up a job to take care of them.

But beyond this is the cost to the already sputtering U.S. economy. All told, the bill for the Iraq war is likely to top $3 trillion. And that’s a conservative estimate.

President Bush tried to sell the American people on the idea that we could have a war with little or no economic sacrifice. Even after the United States went to war, Bush and Congress cut taxes, especially on the rich — even though the United States already had a massive deficit. So the war had to be funded by more borrowing. By the end of the Bush administration, the cost of the wars in Iraq and Afghanistan, plus the cumulative interest on the increased borrowing used to fund them, will have added about $1 trillion to the national debt.

The long-term burden of paying for the conflicts will curtail the country’s ability to tackle other urgent problems, no matter who wins the presidency in November. Our vast and growing indebtedness inevitably makes it harder to afford new health-care plans, make large-scale repairs to crumbling roads and bridges, or build better-equipped schools. Already, the escalating cost of the wars has crowded out spending on virtually all other discretionary federal programs, including the National Institutes of Health, the Food and Drug Administration, the Environmental Protection Agency, and federal aid to states and cities, all of which have been scaled back significantly since the invasion of Iraq.

To make matters worse, the U.S. economy is facing a recession. But our ability to implement a truly effective economic-stimulus package is crimped by expenditures of close to $200 billion on the two wars this year alone and by a skyrocketing national debt.

The United States is a rich and strong country, but even rich and strong countries squander trillions of dollars at their peril. Think what a difference $3 trillion could make for so many of the United States’ — or the world’s — problems. We could have had a Marshall Plan to help desperately poor countries, winning the hearts and maybe the minds of Muslim nations now gripped by anti-Americanism. In a world with millions of illiterate children, we could have achieved literacy for all — for less than the price of a month’s combat in Iraq. We worry about China’s growing influence in Africa, but the upfront cost of a month of fighting in Iraq would pay for more than doubling our annual current aid spending on Africa.

Closer to home, we could have funded countless schools to give children locked in the underclass a shot at decent lives. Or we could have tackled the massive problem of Social Security, which Bush began his second term hoping to address; for far, far less than the cost of the war, we could have ensured the solvency of Social Security for the next half a century or more.

Economists used to think that wars were good for the economy, a notion born out of memories of how the massive spending of World War II helped bring the United States and the world out of the Great Depression. But we now know far better ways to stimulate an economy — ways that quickly improve citizens’ well-being and lay the foundations for future growth. But money spent paying Nepalese workers in Iraq (or even Iraqi ones) doesn’t stimulate the U.S. economy the way that money spent at home would — and it certainly doesn’t provide the basis for long-term growth the way investments in research, education or infrastructure would.

Another worry: This war has been particularly hard on the economy because it led to a spike in oil prices. Before the 2003 invasion, oil cost less than $25 a barrel, and futures markets expected it to remain around there. (Yes, China and India were growing by leaps and bounds, but cheap supplies from the Middle East were expected to meet their demands.) The war changed that equation, and oil prices recently topped $100 per barrel.

While Washington has been spending well beyond its means, others have been saving — including the oil-rich countries that, like the oil companies, have been among the few winners of this war. No wonder, then, that China, Singapore and many Persian Gulf emirates have become lenders of last resort for troubled Wall Street banks, plowing in billions of dollars to shore up Citigroup, Merrill Lynch and other firms that burned their fingers on subprime mortgages. How long will it be before the huge sovereign wealth funds controlled by these countries begin buying up large shares of other U.S. assets?

The Bush team, then, is not merely handing over the war to the next administration; it is also bequeathing deep economic problems that have been seriously exacerbated by reckless war financing. The US faces an economic downturn that’s likely to be the worst in more than a quarter-century.

Until recently, many marveled at the way the United States could spend hundreds of billions of dollars on oil and blow through hundreds of billions more in Iraq with what seemed to be strikingly little short-run impact on the economy. But there’s no great mystery here. The economy’s weaknesses were concealed by the Federal Reserve, which pumped in liquidity, and by regulators that looked away as loans were handed out well beyond borrowers’ ability to repay them. Meanwhile, banks and credit-rating agencies pretended that financial alchemy could convert bad mortgages into AAA assets, and the Fed looked the other way as the U.S. household-savings rate plummeted to zero.

It’s a bleak picture. The total loss from this economic downturn — measured by the disparity between the economy’s actual output and its potential output — is likely to be the greatest since the Great Depression. That total, itself well in excess of $1 trillion, is not included in the estimated $3 trillion cost of the war.

Others will have to work out the geopolitics, but the economics here are clear. Ending the war, or at least moving rapidly to wind it down, would yield major economic dividends.

As we head toward November, opinion polls say that voters’ main worry is now the economy, not the war. But there’s no way to disentangle the two. The United States will be paying the price of Iraq for decades to come. The price tag will be all the greater because we tried to ignore the laws of economics — and the cost will grow the longer the U.S. remains.

August 6, 2008

Raskol gangs rule world’s worst city

Filed under: bangladesh,global islands,png,police,wealth — admin @ 6:05 am

High levels of rape, robbery and murder help keep Port Moresby, the capital of Papua New Guinea, at the wrong end of the hardship table.

In Lagos, expect chaos. There are gun battles in Bogotá. Crime has been a curse in Karachi. But there is nowhere on earth quite like this.

According to a survey by the Economist Intelligence Unit, the capital of Papua New Guinea has beaten all-comers – again – to take a title that no city on earth would covet.

With poverty, crime, poor healthcare and a rampant gang culture, Port Moresby consistently scores highest in the unit’s “hardship” table, meaning it is regarded as the worst place to live among 130 world capitals. Baghdad is not on the list.

According to the unit, most aspects of daily life in Moresby are problematic.

Little bigger than Plymouth, with a population of 250,000, it is a place where murder rates are exceptionally high, thanks mainly to the “raskol” gangs that control large areas of the city.

Tales of their exploits are legion; from bank robberies with M-16 machine guns, to car holdups by mobs armed with machetes.

Rape cases are even worse: in one widely reported incident last year, an injured nurse was dragged away from a car crash to be gang-raped.

Visitors to Port Moresby are advised not to go out after sunset, and to avoid walking the streets in most areas even during the day.

The houses of the wealthy squat behind walls tipped with razor-wire and gates watched by security guards.

The precautions are necessary because a survey of international crime by the Home Office shows that the murder rate there is three times that of Moscow, and 23 times that of London.

The rates for robberies and rapes are just as dire.

But the raskols say much of the violence is meted out by the police, and that they are provoked into retaliation.

The base of Moresby’s Bomai gang can be found up a dark sidestreet in the suburb of Four Mile. At the entrance to their squatter settlement a man is on guard, armed with a walkie-talkie.

“The police we know are very dangerous. They come in to the settlement and raid the people’s food and property and beers,” says Koiva, one of the leaders of the gang.

He has a pattern of welts on his head where he says he was beaten by a police officer with a glass bottle to extract a confession.

Another gang member, Stephen, shows two dark scars on his legs which he says were caused when he was shot in police custody.

Most people living in Port Moresby show little sympathy for the Bomai, whose raids on businesses and residential compounds have made them infamous. “Bloody raskols. Shoot first and ask questions later, that’s what they [the police] should do,” says an Australian expatriate.

Often, that is precisely what happens.

“I think the government are happy every time the police shoot a young man but we have thousands more youths on the streets,” says Peter Gola, a former raskol working at City Mission, a charity that helps the city’s street children.

Most raskols argue that their crimes are driven by the crushing poverty of life.

“We never mean to kill people,” says Koiva. “We’re just trying to scare them and get what we want to get.”

Papua New Guinea has no welfare state, so in rural areas family and clan networks have kept people in food and lodging. That system has broken down in the capital, which sits in an arid part of the country where unemployment rates are estimated to be between 60- and 90%.

A kilo of rice here costs four kina – about 70p – and a tin of fish is three kina, but this is beyond the means of many families.

Most raskols say they get into crime when their parents send them out to make money. Pressured to generate an income, they turn to violence. An armed robbery can easily net more than 100,000 kina (£17,500).

“When that happens, we live like kings,” says Harris, another Bomai member. “If you’re lucky, you eat something good. Maybe chicken.”

But there is some hope for change. Twenty minutes’ drive from Moresby, City Mission’s New Life farm has offered an alternative to the violence for between 5,000 and 6,000 street children since it opened 11 years ago.

The regime is strict: smoking and drinking are forbidden and there is a strong religious flavour to the instruction.

But the founder, Larry George, says the structure and respect of their new lives can work wonders.

“Most of them aren’t bad kids,” says Mr George. “It’s mainly just poverty that’s driving the crime. People can read in the papers about the government stealing millions of kina and get really frustrated.”

Many of the children, he says, end up as security guards, exchanging fire with the raskols who were once their peers.

Global ranking

Best five

1= Melbourne, Australia

1= Vancouver, Canada

1= Vienna, Austria

4 Perth, Australia

5 Geneva, Switzerland

Worst five

126 Phnom Penh, Cambodia

127 Lagos, Nigeria

128 Dhaka, Bangladesh

129 Karachi, Pakistan

130 Port Moresby, Papua New Guinea

July 10, 2008

World leaders enjoy 18-course banquet as they discuss how to solve global food crisis

Filed under: corporate-greed,General,government,human rights,wealth — admin @ 5:21 am

Just two days ago, Gordon Brown was urging us all to stop wasting food and combat rising prices and a global shortage of provisions.

But yesterday the Prime Minister and other world leaders sat down to an 18-course gastronomic extravaganza at a G8 summit in Japan, which is focusing on the food crisis.

The dinner, and a six-course lunch, at the summit of leading industrialised nations on the island of Hokkaido, included delicacies such as caviar, milkfed lamb, sea urchin and tuna, with champagne and wines flown in from Europe and the U.S.

But the extravagance of the menus drew disapproval from critics who thought it hypocritical to produce such a lavish meal when world food supplies are under threat.

On Sunday, Mr Brown called for prudence and thrift in our kitchens, after a Government report concluded that 4.1million tonnes of food was being wasted by householders.

He suggested we could save up to £8 a week by making our shopping go further. It was vital to reduce ‘unnecessary demand’ for food, he said.

Last night’s dinner menu was created by Katsuhiro Nakamura, the first Japanese chef to win a Michelin star. It was themed: Hokkaido, blessings of the earth and the sea.

But Dominic Nutt, of the charity Save the Children, did not approve.

‘It is deeply hypocritical that they should be lavishing course after course on world leaders when there is a food crisis and millions cannot afford a decent meal,’ he said.

‘If the G8 wants to betray the hopes of a generation of children, it is going the right way about it. The food crisis is an emergency and the G8 must treat it as that.’

In 2005, at the G8 summit in Gleneagles, Scotland, world leaders promised to increase global aid by £25billion a year by 2010 and raise aid to Africa, the world’s poorest continent, by £12.5billion. But the bloc of rich nations is only 14 per cent of the way towards hitting its target.

Britain is meeting its commitments in full, but other countries are understood to be dragging their feet – and there are fears the figures on global aid could be watered down.

French President Nicolas Sarkozy and Italian leader Silvio Berlusconi, who face pressure to cut spending at home, are understood to be leading the charge to weaken the Gleneagles proposal.

Tory international development spokesman Andrew Mitchell said: ‘The G8 have made a bad start to their summit, with excessive cost and lavish consumption.

‘Surely it is not unreasonable for each leader to give a guarantee that they will stand by their solemn pledges of three years ago at Gleneagles to help the world’s poor.

‘All of us are watching, waiting and listening.’

A World Bank study released last week estimated that up to 105million more people, including 30million in Africa, could drop below the poverty line because of rising food prices.

Yesterday the European Union agreed to channel £800million in unused European farm subsidies to African farmers, as part of its response to the global food crisis.

‘The EU really can give a boost to agriculture in developing countries,’ Jose Manuel Barroso, president of the European Commission, told the meeting.

The money will be used to buy seed and fertiliser and fund agriculture projects in Africa.

The meal was served at the Windsor Hotel, on the shores of Lake Toya, where the presidential suite costs £7,000 a night.

Japan has spent a record sum of money and deployed about 20,000 police to seal off the remote lakeside town of Toyako for the three-day talks.

June 19, 2008

Coin Shortage, Tooth Surplus for Solomon Islands

Filed under: General,global islands,solomon islands,wealth — admin @ 10:16 am

Yes, yet another nation is reporting a coinage shortage, this time it being the Solomon Islands in the South Pacific Ocean region. The difference between this shortage and shortages in other such places as India and China is that primitive money items traditionally used in barter may become a handy backup in the Solomons.

The Central Bank of Solomon Islands has called on citizens of the island nation to cash in their coins. Both the Australian Broadcasting Corporation and Radio New Zealand International reported May 1 that Solomon Island businesses and local merchants were simply running out of coins to use in commerce.

Part of the problem, according to the ABC, is that “The low value of coins in Solomon Islands’ currency has led many there to either hoard them, or to give them as gifts to children.” RNZ added, “However, the number of people doing this is starting to affect businesses.”

Denton Rarawa is the acting governor of the Central Bank of Solomon Islands. He was recently quoted by both sources as saying, “When coins don’t come back into the system we have to continuously mint new coins,” adding, “The bank has now begun a public appeal asking Solomon Islanders to cash in their coins for [bank] notes.”

So, what do you do if you live or work in this South Pacific archipelago and run out of coins to use in commerce? According to an April 30 Wall Street Journal article by Yaroslav Trofimov, you do business the old fashion way. You use dolphin teeth.

Have any doubts about if dolphin teeth, wild dog teeth, tapa cloth, feathers of specific exotic and likely endangered species of birds, or any of a number of other things that were at one time used as what in numismatics is usually dubbed “odd and curious money?” Ask the International Primitive Money Society. To put in a shameless plug for the IPMS, the organization can be contacted at 2471 SW 37 St., Ocala, Fla. 34474 or through Charles Opitz at opitzc@aol.com. The IPMS meets at the annual American Numismatic Association convention. It will hold its next meeting in Baltimore Aug. 1 at 4 p.m. in Room 318. The IPMS publishes a newsletter twice a year containing original articles on primitive money and offers free ads to members.

Getting back to Trofimov’s Wall Street Journal article, the author states: “Over the past year one spinner tooth has soared in price to about two Solomon Islands dollars (26 U.S. cents), from as little as 50 Solomon Islands cents. The official currency, pegged to a global currency basket dominated by the U.S. dollar, has remained relatively stable in the period.”

Apparently dolphin teeth must be all the rage in the islands. Central Bank of the Solomon Islands Governor Rick Houenipwela is described in the article as an investor in dolphin teeth, purchasing what is described as a “huge amount” a few years ago.

Houenipwela is quoted in the article as saying, “Dolphin teeth are like gold. You keep them as a store of wealth – just as if you’d put money in a bank.” It doesn’t sound as if Houenipwela’s commodity position will encourage people to want to put Solomon Island coins back into circulation.

Houenipwela has had his chance to literally put his dolphin teeth into the bank. Some time ago he was approached by local Solomon Island businessmen who wanted to establish a bank in which dolphin teeth could be deposited. Houenipwela declined the request not because he didn’t think it was a good idea, but because only conventional currency can be deposited in banks under Solomon Islands law.

According to the Trofimov article, “Hundreds of animals are killed at a time in regular hunts, usually off the large island of Malaita. Dolphin flesh provides protein for the villagers. The teeth are used like cash to buy local produce. Fifty teeth will purchase a pig; a handful are enough for some yams and cassava.”

According to Trofimov, the ancient native tradition of purchasing the bride with dolphin teeth is alive and well, also encouraging the use of odd and primitive money over that of metal coins. The Wall Street Journal article identifies one individual as needing 5,000 teeth for an upcoming double wedding of his two sons. This individual ordered the teeth through someone at a hunting village in Malaita.

The natives aren’t particularly humane about how they harvest the dolphin teeth, according to Trofimov. The natives still use the traditional method of nearly suffocating the dolphin, then cutting off its head with a machete.

One individual who sells dolphin teeth was quoted in the Wall Street Journal article as saying, “The white man’s money will end, but the dolphin teeth will always be there for us.” It would appear the Central Bank of Solomon Islands may have a challenging time getting people to put metal coins rather than dolphin teeth back into circulation.

May 27, 2008

Poverty Thrives Amid Unprecedented Prosperity

Filed under: corporate-greed,General,human rights,wealth — admin @ 2:25 am

Global poverty is thriving — rather ironically — amidst one of the most prosperous times in human history.
Kul Chandra Gautam, a former assistant secretary-general and deputy executive director of the U.N. children’s agency UNICEF, points out that world economic output was never more prodigious: last year it hit the 60-trillion-dollar mark.

At this time of unprecedented global prosperity, in which someone becomes a new billionaire every second day, “We have the contrasting situation of nearly one billion people living on less than a dollar a day and 800 million going to bed hungry every night,” he added.

And according to the U.S.-based Forbes magazine, the number of billionaires worldwide reached 1,125 this year, a staggering increase from 179 in 2007.

They emerged not only from rich countries such as the United States, Germany and Japan but also from developing countries, such as Egypt, Nigeria, Indonesia, Malaysia, Brazil, Belize, China, India, Mexico and Venezuela.

Addressing the third forum of the Tokyo-based Global Network of Religions for Children (GNRC), Gautam said it is because of poverty that nearly 10 million children die every year from causes that are readily preventable.

“It is poverty that keeps 93 million children out of primary schools, the majority of them girls, and it is poverty that lands millions of children in child labour, often in hazardous circumstances, when they should be going to school.”

The recent dramatic rise in food and petroleum prices is also bound to further impoverish the already poor, “and as usual, children are likely to be its main victims”, Gautam said.

The Arigatou Foundation of Japan, the organisers of the Hiroshima Forum, is convinced the time has come for the world’s religious institutions, and all those who profess religious faith, to come forward and join hands in this global fight to alleviate the suffering of children and promote their well-being.

Since its founding in May 2000, GNRC has emerged as an important global alliance of religious organisations and people of faith committed to interfaith dialogue and action aimed at improving the lives of children.

One of the themes of the Hiroshima Forum, currently underway, is “the ethical imperative to ensure that no child lives in poverty”.

The United Nations estimates that over 600 million children live in absolute poverty worldwide. The reduction of extreme poverty by 50 percent is one of the U.N.’s Millennium Development Goals (MDGs), with a target date of 2015.

But Dr A.T. Ariyaratne, founder and president of the Sarvodaya Movement, one of the most successful grassroots movements in Sri Lanka, is sceptical about reaching that goal.

“Poverty and powerlessness go hand in hand — both at the political and economic level,” he said. In most developing countries, Ariyaratne said, the gap between the rich and the poor continues to widen by the day.

He dismissed as a “bunch of lies” some of the statistics doled out by national governments to bolster the argument that poverty is on the decline in their respective countries.

“I have met a number of political leaders — even at the cabinet level — who don’t even know what the Millennium Development Goals are,” Ariyaratne said.

The Venerable Kojun Handa, supreme priest of the Tendai Buddhist denomination, singled out the “deep economic disparities” in which children are deprived of their basic necessities, including adequate food and education.

“At the same time, if we turn our eyes to those regions of the world that are considered ‘advanced nations,’ including Japan, we see a ubiquitous emphasis on excessive material wealth.”

He said these rich nations believe in the ultimate superiority of their economies and the many negative facets of an internet-based society in which children are corrupted through the damage inflicted upon them.

Still, Gautam quoted his former boss and mentor, the late Jim Grant of UNICEF, who said there had been more progress for children in the last 50 years — during the second half of the 20th century — than perhaps in the previous 500 years.

In Asia alone, over a billion people have been lifted out of poverty in the past half century, of whom 400 million were from China.

India is rapidly following a similar trend. The Republic of Korea has seen its per capita income increase from 100 dollars to 17,000 dollars.

Late last year, UNICEF reported that for the first time since it started keeping records, the annual number of child deaths decreased to below 10 million. This accounted for a 60-percent reduction in the under-five mortality rate since 1960.

“This is a remarkable testimony to the continuing progress in child survival and success of many health interventions,” said Gautam.

Smallpox, which used to kill five million people a year in the 1950s, was eradicated during our lifetime. Polio, which used to cripple millions, is on the brink of eradication. Deaths due to measles, one of the biggest killers of children, declined by 90 percent in Africa in the last seven years, he noted.

“There are more children in school today than ever before, and gender disparity is rapidly declining at the primary school level,” he added.

“And thanks to the heightened sensitivity created by the U.N. Convention on the Rights of the Child, issues such as child labour, trafficking and abuse of children, children in armed conflict and other violence against children are being systematically exposed, and action taken to address them.”

“And many non-governmental organisations (NGOs), faith-based and inter-faith groups like the GNRC, and civic leaders are championing the cause of children,” he said.

Overall, he said, children are much higher on the world’s political agenda. Increasingly, they figure prominently in election campaigns, parliamentary debates and national legislation.

The fantastic communications capacity in the world today makes it possible to bring the blessings of science and technology to the doorsteps of even the poorest people in the most remote corners of the world.

And child-oriented programmes are benefiting from this information and communications revolution.

But the bad news is that much of this progress has bypassed the bottom billion people in the world, especially in sub-Saharan Africa and parts of South Asia, Gautam said.

Civil wars and conflict, and the pandemic of HIV/AIDS have exacerbated the fight against poverty by weakening the economies and social fabric of many countries, specifically in Africa.

“We all thought there would be an era of peace, and a huge peace dividend, following the end of the cold war. But regrettably, ethnic conflicts and tensions spread following the collapse of the Soviet Union and former Yugoslavia,” he added.

May 9, 2008

Global Poverty: More Big Business is Not the Solution

Filed under: corporate-greed,human rights,resource,wealth — admin @ 8:43 am

By most accounts, UK Prime Minister Gordon Brown is genuinely passionate about reducing global poverty.

But he is not willing to challenge the structures of the global economy that generate poverty, or the corporations that build, benefit from and maintain those structures.

Nor, apparently, is he immune to gimmicky notions of corporate leadership to support development, or the lure of high-profile summits to shed light on new plans to do — very little.

Thus, earlier this week the UK was treated to the spectacle of the Business Call to Action summit, which Brown’s office co-sponsored with the UN Development Program. More than 80 CEOs of large companies gathered with Brown and other luminaries to discuss how they could help meet the Millennium Development Goals, which aspire to reduce global poverty by half by 2015. Roughly two dozen of these CEOs — from Anglo American, Bechtel, Citigroup, Coca-Cola, De Beers, Diageo, FedEx, Goldman Sachs, GE, Merck, Microsoft, SAB Miller, Wal-Mart and others — have signed the Business Call to Action, which states, “as leaders from the private sector, we declare our commitment to meet this development emergency.”

The premise of the event, as Gordon Brown said, was to advance “a new approach — moving beyond minimum standards, beyond philanthropy and beyond traditional corporate social responsibility — important though they are — to develop long-term business initiatives that mobilize the resources and talents that are the central strengths of global business.”

The mantra of the event was for corporations to “explore new business opportunities that use their core business expertise” and that also help spur development.

Taken at its face value, this was, um, not exactly inspiring. Says Peter Hardstaff of the UK-based World Development Movement, the CEOs “have all agreed — to do more business.”

But the problem goes way beyond the fact that business as usual — or even a little bit of new business initiative with a development-conscious orientation — is not going to do much to reduce global poverty. The real problem is that business as usual is a central part the problem.

“Instead of holding these companies to account for their actions,” says John Hilary, executive director of War on Want, a UK-based anti-poverty group. “Gordon Brown has allowed them to portray themselves as allies in the fight against poverty. The prime minister should be working to address the poverty and human rights problems caused by business, not giving the companies a free ride.”

War on Want focused attention on the harmful development impacts of many of the corporations signing the Business Call to Action. The group has campaigned against mining giant Anglo American. It has documented how Anglo American has benefited from human rights abuses associated with civil wars in Colombia and the Democratic Republic of Congo (DRC). Local mining communities in Ghana and Mali have seen little economic benefit from Anglo American’s operations (or the spike in the price of gold); instead, says War on Want, the company’s mines harm their environment, health and livelihoods.

Other corporate signatories to the Business Call to Action have directly hurt poor people through their “core business” more than can be offset by development-tinged ventures (even assuming such ventures succeed). Wal-Mart contracts with sweatshops. Bechtel tried to price-gouge and rip-off Bolivian consumers and the Bolivian state through control of the country’s privatized water system. Merck refuses to license life-saving medicines for cheap generic production.

Simultaneous with Brown’s business summit, Action Aid UK pointed to a major systemic abuse by multinational corporations that undermines development: They don’t pay their taxes. The group released a report looking at tax payments of 14 corporate signers of the Business Call to Action. It found that these companies combined are underpaying taxes by more than $6 billion a year, as compared to what they would pay if they paid at the statutory rate in the United States and UK. The group did not suggest any illegal activities by the companies — there are plenty enough legal tax avoidance strategies.

Money lost to developing countries through capital flight and tax avoidance is many times greater than aid flows into poor countries, says Jesse Griffith, the lead author of the Action Aid UK report.

Tax avoidance is a key issue because it strips money from national treasuries that would otherwise be available for social investment, and because it reflects structural problems that could and should be cured without any need for global philanthropy or aid.

But tax avoidance is only one of many ways that corporations exploit and perpetuate economic policies and institutional arrangements that contribute to poverty or inhibit authentic development.

The World Development Movement issued a 10-point challenge to corporations that claim an interest in promoting global development. It called on companies to stop using their political influence to promote policies that undermine development. It urged companies to: stop lobbying to open up developing country markets, and let developing countries “use the same trade policy tools industrialized countries used to get rich;” stop demanding rich country-style patent rules for the poor; support radical government action, starting in rich countries, to address climate change; support binding codes of conduct for multinationals, including respect for labor rights; end support for privatization and deregulation, including particularly financial deregulation; stop lobbying for and exploiting tax loopholes; and other measures.

This is not exactly an agenda that global business leaders are likely to take up soon.

On the other hand, it’s not exactly likely that global business leaders are going to lead the way to end global poverty.

Among other things, that’s going to take a global movement, led from the Global South, to implement the policies implicit in the World Development Movement call.

April 29, 2008

Man charged over Pacific money laundering scheme

Filed under: global islands,intra-national,vanuatu,wealth — admin @ 5:52 am

A 58-year-old Australian man is due to be extradited to from Western Australia to the state of New South Wales after police broke up an international money laundering scheme.

The alleged scheme operated in Australia, Vanuatu and New Zealand and involved around $US87 million.

Robert Agius, who had been living in Vanuatu, has been charged with fraud and money laundering offences relating to the scheme, which was exposed by a police task force targeting tax evasion.

Australian federal police officer, Warren Gray, says around 400 people put money into a scheme, allegedly operated by Agius, in which millions of dollars was moved into offshore bank accounts to avoid tax

Agius was arrested on Monday in the western Australian city of Perth, and appeared briefly in court where he was ordered to be returned to Sydney to face trial.

He faces a maximum penalty of 25 years in prison if convicted.

April 24, 2008

Mercy: false hope

Filed under: global islands,government,human rights,kenya,wealth — admin @ 9:31 am

Mercy: completely forgotten

Mercy, 25, is a Kamba from south-east Kenya. Her husband was “an excessive drunk” and violent, so she left to live alone with their two children. She is sometimes forced to resort to ukahaba: “taking up with any man and going with him as long as he can feed your children for the day, or pay their school fees.” She is aware of the risk of HIV and AIDS but says this is “the reality” of being jobless.

She worries about security in Kibagare, the behaviour of young people and the rising incidence of rape, due partly to the increasing abuse of marijuana and alcohol.

Her children are her main concern and she longs for the opportunity to have some vocational training or a loan to start a business. “If…I am given a good foundation…I am convinced – without any doubt – that I could change my life and the future life of my children.”

I left Kitui (south-eastern Kenya) and came to live here in Nairobi in 1999. I am now 25.

When I got to Nairobi, I worked as a maid for a while, then I got married. My husband and I were blessed with two children, a boy and girl, but we did not stay together for long because he was an excessive drunk and he would beat me so much. So I decided to leave him and live alone with my children… When I left this man, he continued being a terrible drunkard, and he was hit by a car one day and died.

The harsh reality of unemployment

I raise these children on my own, with many problems. At first I was still working as a housemaid for a Nigerian family, but then they returned to their home. So now I depend on any casual labour I can find to feed them. Mostly I find temporary work washing clothes, but if I don’t get that I take up with a man, as I cannot watch my children die of hunger…

I live in a small room which I rent at 700 shillings a month, but it’s not easy to make the rent money… It is this situation that forces me into ukahaba, even if there are problems ¬ like diseases such as AIDS. I don’t have any other option. This practice of ukahaba means taking up with any man and going with him as long as he can feed your children for the day, or pay their school fees… I just have to do that so I can get food, rent and school fees for my children… This is the reality of not having a job.

I just pray to God that I get a good job or that as young people we get a good project, such as keeping chickens. Whatever kind of job really, so that I leave prostitution alone… Also if I could get a good man we can live together as husband and wife – that would be great.

Poverty undermines cooperation
We do not have [self-help] groups — those that exist are [older] women’s groups and their lives are much better than ours. We cannot work together because our problems [are so bad that] everybody can only be concerned with their own house. So now, even if you call a meeting it’s difficult to get enough people. Everybody follows their own path and thinks you will just waste their time — they do not see that any good results might come of it. I would like to have a group, but there are many different opinions on that.

The [only] organisation that I’ve seen helping people is the Catholic Church. It helps the very old women, especially those who have been left with their own children’s orphans. But even then it’s not all of them who are helped — just a very few.

“We have been completely forgotten”

Other private organisations or government agencies do not come here, they just get us together and take pictures and promise to return – but they do not. I don’t know if they feel that our problems are just too many, I don’t know…

Nowadays, we feel like everyone who comes here are liars and they just give us false hope…
because it seems that there are people using us for their own benefit. There are so many who have come here, taken our pictures and done things like that, but then they disappear, so we wonder where do they go? It looks like we have been completely forgotten…

We even wonder if we are wanted in this world – because of the conditions we live in, which truly are not fit for humans. And we wonder when will this situation change or will we die in this state? We also wonder if our children will also be poor like us, because they have no foundations upon which to build a future.

“Life back home is very hard”

My parents died a long time ago, even before I came to Nairobi. I started living with my sister and my elder brother, but now they both live back in Ukambani (Kitui district, south-eastern Kenya).

We last saw each other a very long time ago; I don’t go home because I lack the bus fare and [my brother] is also unable to come to Nairobi. With the little money that I earn I am just able to cover the rent and to buy food. I would very much like to go home but for now, life does not allow it.

Life back home is very hard, however, even more than here in Nairobi, because there money can scarcely be found at all. Back at home, even though education is free, parents contribute money to help provide a meal for the schoolchildren and it’s very hard to get that cash. It’s better here in Nairobi, where you can at least wash clothes for somebody and make some money.

“It was my wish…to support myself”

I went to school until Standard 8 (final class of primary school) and then there was no more money for fees… I was one of seven children and the last. I am the only child who went to school because my elder sister was married by then and she lived in Nairobi — she helped me. But there was no money to take me on to a college to acquire any skills, or to go to secondary school, even though it was my wish to get enough education to support myself in life…

I pray that I receive some help so that I can acquire some skills — even tailoring — so that I can fend for myself. I think if I get 1,000 shillings I can start training myself, even if it’s just one day a week, so that even if I am fired from being a maid I can take care of myself without relying on anyone. So that even if the maid jobs were not available I could have my own work and my children would be educated without many problems.

I would also find them a nice place to live so that they could grow up with good manners, because I will not lie to you, if I sent these children of mine to stay with you, you would not even last two days before returning them to me! Because they have no respect, they have been misled by others here in this kijiji (Swahili for village, here meaning Kibagare). I tell you, my sister, there are problems here.

“The fear that is in this community is great”

Cases [of rape] have increased greatly, especially of children who are deceived by grown-ups. Some are promised sweets and mandazi (popular semi-sweet doughnut) and such like. Rape is also on the increase because of drunkenness and drugs – also the smoking of bhang (marijuana), which has increased in the village. Now the children are seeing that it is OK to imitate these people…

I tell you, the fear that is in this community is great. I go everywhere with my daughter and I don’t know when I’ll stop doing this, because I do not know when this situation will change. There are so many problems that you just thank God when you wake up in the morning and find you are still alive [smiles].

Drug use has reduced the security situation in this kijiji… The police pass through here, but the young people know the time [they come]. So when the police are in the area, you don’t see anyone loitering about aimlessly. But just let the police leave, and they start committing the most outrageous acts [laughs].

Some even ask to be arrested because in jail nowadays there is food, not like here in Kibagare. Now when you hear somebody wants to commit a crime in order to be arrested, what can you do but leave them to it?! I think that, even if we do get help, these youths should go and have the drugs removed from their system first.

The impact of poverty on young girls

As you can see, so many girls are pregnant; almost every girl in this village has at least one child. Those girls don’t really care about their children because at night they leave them and go roaming around, looking for men in Kangemi and then in the morning they go home to sleep and leave the children [to fend for themselves].

They get pregnant when they are so young – around 12 years, sometimes younger – because their lives are hard. You know, because they have been born in such hardship this way of life attracts them, so they start making money early so that maybe they can start helping their parents. You often find they have left school and taken up a bad lifestyle; so many of them have started contracting different diseases. Many have died of AIDS.

“We live like we are not human beings”

The problem is that there are very many people and the population is increasing at a very fast rate. You see here, there are many houses which are so close together there is no space left to build toilets. Most people have to relieve themselves in polythene bags and tins, and in the morning you find those bags spread everywhere and sometimes in the river that people use for their domestic water supply. As a result, people get diseases…

We have drinking water but most people don’t have the 2 shillings you need to buy the water; many have died because of drinking dirty water.

I hear some people saying this is the government’s land; others say it is private so I don’t really know whose it is. It has become an issue that politicians use to get our votes at election time. There are times when we are threatened that the community will be demolished; other times [buildings are] burned down. We don’t really know where we stand — we just live on God’s mercy.

My request would be that the owners of these houses get the title deeds and that they build real houses. So that when we build homes too, we are sure that the houses will not be burned down or destroyed, so that we stop being afraid of losing our belongings as now. When somebody leaves their home to look for work, they are always afraid and hoping not to hear that something has happened in the village.

In my opinion, I think that if we could find somebody to buy us plots of land, and if they built houses and made toilets for us, I think life would change – so we could be like other Kenyans. You see, we live like we are not human beings. When I look at other people, they have so much money they don’t even know what to do with it, while for us, even finding food is by the grace of God. I wonder if there is really anybody thinking about us.

“I am convinced…I could change my life”

When I look at the children we have, I wonder: if our lives are this bad and have no direction or hope for the future, what will the future hold for our children? I feel like if we don’t get help from somewhere, it will get worse. But if, say, I am given a good foundation somewhere else, if I am given money to start a business, or if I received training in some vocational work, I am convinced – without any doubt – that I could change my life and the future life of my children. So that when I die, I would leave them at least some foundation from which they could rely on themselves, and be of use to future generations.

There are many businesses to undertake; the problem is getting money to start the business. For example, if I could get some money I could start to sell kale, cabbage, tomatoes. If we could get money, even a loan that we repay with a small amount of interest, I can see that would help us.

Our problem as young people is lack of employment. If it was possible for us to be given jobs, even something like rearing chickens, we would be able to create more opportunities and life would be better, as we would be busy rather than just being idle…

April 20, 2008

A man-made famine

Filed under: General,global islands,government,haiti,human rights,resource,wealth — admin @ 5:38 am

There are many causes behind the world food crisis, but one chief villain: World Bank head, Robert Zoellick.

For anyone who understands the current food crisis, it is hard to listen to the head of the World Bank, Robert Zoellick, without gagging.

Earlier this week, Zoellick waxed apocalyptic about the consequences of the global surge in prices, arguing that free trade had become a humanitarian necessity, to ensure that poor people had enough to eat. The current wave of food riots has already claimed the prime minister of Haiti, and there have been protests around the world, from Mexico, to Egypt, to India.

The reason for the price rise is perfect storm of high oil prices, an increasing demand for meat in developing countries, poor harvests, population growth, financial speculation and biofuels. But prices have fluctuated before. The reason we’re seeing such misery as a result of this particular spike has everything to do with Zoellick and his friends.

Before he replaced Paul Wolfowitz at the World Bank, Zoellick was the US trade representative, their man at the World Trade Organisation. While there, he won a reputation as a tough and guileful negotiator, savvy with details and pushy with the neoconservative economic agenda: a technocrat with a knuckleduster.

His mission was to accelerate two decades of trade liberalisation in key strategic commodities for the United States, among them agriculture. Practically, this meant the removal of developing countries’ ability to stockpile grain (food mountains interfere with the market), to create tariff barriers (ditto), and to support farmers (they ought to be able to compete on their own). This Zoellick did often, and enthusiastically.

Without agricultural support policies, though, there’s no buffer between the price shocks and the bellies of the poorest people on earth. No option to support sustainable smaller-scale farmers, because they’ve been driven off their land by cheap EU and US imports. No option to dip into grain reserves because they’ve been sold off to service debt. No way of increasing the income of the poorest, because social programmes have been cut to the bone.

The reason that today’s price increases hurt the poor so much is that all protection from price shocks has been flayed away, by organisations such as the International Monetary Fund, the World Trade Organisation and the World Bank.

Even the World Bank’s own Independent Evaluation Group that the bank has been doing a poor job in agriculture. Part of the bank’s vision was to clear away the government agricultural clutter so that the private sector could come in to make agriculture efficient. But, as the Independent Evaluation Group delicately puts it, “in most reforming countries, the private sector did not step in to fill the vacuum when the public sector withdrew.” After the liberalisation of agriculture, the invisible hand was nowhere to be seen.

But governments weren’t allowed to return to the business of supporting agriculture. Trade liberalisation agreements and World Bank loan conditions, such as those promoted by Zoellick, have made food sovereignty impossible.

This is why, when we see Dominique Strauss-Kahn of the IMF wailing about food prices, or Zoellick using the crisis to argue with breathless urgency for more liberalisation, the only reasonable response is nausea.

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