Africa

The IAAF responds to an open letter from the Women's Sports Foundation and Athlete Ally calling for eligibility rules to be scrapped.

Maimunah Mohd Sharif is Executive Director of the United Nations Human Settlements Programme and Achim Steiner is Administrator of the United Nations Development Programme

By Maimunah Mohd Sharif and Achim Steiner
UNITED NATIONS, Jul 17 2018 (IPS)

New York has long been considered a pioneer – in fashion, art, music, and food, just to name a few. Now this city of 8.5 million is leading a shift in how we tackle today’s toughest global challenges like climate change, education, inequality, and poverty.

UN’s Sustainable Development Goals

These issues are at the heart of the Sustainable Development Goals, an agenda agreed by all nations in 2015 that chart a path for people, prosperity, and the planet. This July, New York is joining countries at the United Nations to report on its progress and to share experiences, becoming the first city to do so.

It makes good sense for New York and other cities to spearhead progress on these global goals – including the need for decent housing, public transport, green spaces and clean air.

More than half of the world’s 7 billion people currently live in cities, and by 2050 that number will be closer to 70%. By 2030, there will be over 700 cities with more than a million inhabitants.

Urban growth is happening fastest in developing countries, which often struggle to meet the demand for quality municipal services and have little experience in planning. Rapid growth can also push up the prices of housing and energy, and can increase pollution, threatening the health and well-being of millions.

Cities are also financial powerhouses, generating 82% of global GDP, yet they also account for 70% of global greenhouse gas emissions, use 80% of the world’s energy, and generate over 1 billion tonnes of waste per year.

Inequality within cities on issues like income, health, and education are also a big challenge.

Cities are a fulcrum for sustainable development worldwide and crucible for the achievement of the Sustainable Development Goals. Unleashing the power of cities to help solve global challenges means linking local plans to national plans, and also to global agendas.

Cities are already showing how to lead by example on one of our most pressing global challenges: climate change.

The global Covenant of Mayors for Climate and Energy is an alliance of cities and local governments working to combat climate change and move to a low-emission and resilient society. This group has commitments from over 9,000 cities and local governments from 6 continents and 127 countries.

The Global Climate Action Summit in San Francisco this September is another example of how cities, as well as states, regions, companies and citizens, are coming together to show how every group can do something and accelerate action.

Which brings us back to New York.

Cities are on the frontlines of nearly every global challenge we currently face, and they need to be at the center of our strategy to solve them. The urban development of yesterday will not suffice.

By using the Sustainable Development Goals as their guide, New York is showing how cities can adapt their plans to mirror development plans, allowing them to grow in the most sustainable way possible while creating policies for the things people living in cities need.

Things like jobs, affordable housing, good education, quality health care, clean air and good waste management, just to name a few. Getting cities right can provide opportunities to address poverty, migration, employment and pollution.

We invite all cities to join New York and help lead the way in planning for a shared and sustainable future that benefits all people of the world.

On 17 July 2018, the UN will host an event at the High-level Political Forum: ‘The SDGs in Action – Working together for inclusive, safe, resilient and sustainable cities and human settlements. The event will focus on how cities and human settlement are accelerating progress towards the Sustainable Development Goals and contributing to a transformation towards sustainable and resilient societies.

The post New York, With 8.5 Million People, Among Cities Heading for a Sustainable Future appeared first on Inter Press Service.

Excerpt:

Maimunah Mohd Sharif is Executive Director of the United Nations Human Settlements Programme and Achim Steiner is Administrator of the United Nations Development Programme

The post New York, With 8.5 Million People, Among Cities Heading for a Sustainable Future appeared first on Inter Press Service.

New legislation means that individuals with more than 5,000 followers could be subject to media law.

The US' first black president will give the annual speech which this year marks 100 years since Mandela's birth.

By WAM
ABU DHABI, Jul 17 2018 (WAM)

The Emirates Diplomatic Academy, EDA, held a networking reception in the presence of King Felipe VI of Spain at the fifth World Congress for Middle Eastern Studies, WOCMES, in Seville, Spain.

The Congress’ inaugural reception drew the participation of over 200 dignitaries and experts from Spain and the Middle East studies community worldwide. The event took place on the opening day of WOCMES, which is running from 16th to 22nd July and convenes nearly 3,000 scholars, media representatives and diplomacy professionals from over 70 countries.

Addressing the audience at the opening ceremony, King Felipe VI said, “The Mediterranean must be the shared space of peace, prosperity and stability for which our citizens yearn. This goal requires a joint responsibility that goes beyond the countries of the Mediterranean. Because the stability and prosperity of European societies is – and has always been – closely linked to the destiny of the countries of the Middle East and North Africa.”

“I would like to take the opportunity presented by this Congress, to reaffirm Spain’s unwavering commitment to championing initiatives that help offer effective political and economic responses to the challenges posted by the region,” he continued.

Bernardino León, Director-General of EDA, said, “It is a great honour for EDA to host King Felipe VI. His Majesty’s attendance is testimony to the Academy’s progress in promoting the UAE among the world’s most distinguished leaders.”

He added, “As the country’s leading international relations and diplomatic institution, EDA seeks to address questions, exchange knowledge and explore insights on the Middle East in the broadest sense. We make it our mission to enrich the world’s knowledge about Middle East governance, society and culture. Through our participation in WOCMES, we can showcase our research, develop our international networks and partnerships, and support the UAE’s foreign policy through dialogue with our peers from around the world.”

EDA is one of the sponsors of WOCMES. On the opening day, the Academy organised a policy-oriented panel discussion with its students and faculty. The event focused on two themes of high relevance for UAE and regional diplomacy, the role of small countries in regional politics and soft power.

EDA will also hold an academic panel discussion with presentations from its faculty and students. The panellists will explore how the foreign policies of countries of the GCC region, particularly the UAE, are changing as they take on a more visible role in the wider region. As well as hosting an exhibition of books and other publications authored by its faculty to highlight its research at a dedicated stand throughout the week.

WOCMES serves as a meeting point to present and discuss the latest studies concerning the Middle East, encompassing diverse perspectives from conflict analysis and resolution to migration, water, the environment, culture and media.

WAM/Nour Salman

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The Nigerian Premier League is postponed indefinitely amidst ongoing row over football federation leadership.

BBC Sport looks at 10 players who might get a move - including several Premier League targets - following a good World Cup.

Children like Jumana have been left behind after the Islamic State group was pushed out of Sirte, Libya.

Dust-covered cars, furniture and beer are revealed as Eritrea re-opens its Ethiopian embassy after 20 years.

Commanders may be shielded from prosecution over the violence after President Mohammed Morsi's ousting.

The tropical island of Mauritius - in the Indian Ocean, off south-east Africa - brings a slice of island life to the UK.

The country has seen an increase in awareness for green growth from public and private sectors in recent years. Credit: Irwin Loy/IPS

By Sinsiri Tiwutanond
BANGKOK , Jul 16 2018 (IPS)

Thailand’s industrial sector must focus on sustainable and green development to remain competitive in the region.

“It is more expensive to operate in Thailand than other neighbouring countries. If we don’t develop smart cities, it will be more difficult for us to attract foreign investors,” Global Green Growth Initiative (GGGI) programme manager for Thailand Khan Ram-Indra told IPS. GGGI is an international organisation that works with developing and emerging countries to create programmes according to a sustainable green growth model.

Thailand has seen an increase in awareness of green growth from public and private sectors in recent years under the government’s Thailand 4.0 initiative — an economic strategy that seeks to transform the nation’s economy from one reliant on manufacturing to a value-based economy focused on innovation, higher technologies and green industries.

At the heart of this ambitious endeavour is Thailand’s industrial sector. As the second-largest economy in Southeast Asia, the industrial sector accounts for almost 40 percent of the country’s GDP. It also happens to be a significant contributor to pollution and reduced energy security within the country.

The sector alone accounts for 37.1 percent of the country’s total energy consumption, while 27.9 percent of greenhouse gas (GHG) emissions are attributed to its operations. According to GGGI’s study to support the government’s climate change master plan, it finds that this translates to a net economic loss of roughly USD900 million to the Thai economy.

“This issue is quite new and the industry might not have a clear idea on how to approach it. This is where GGGI can come in to help guide them. The other thing is that we can help to identify bankable projects to achieve their green vision. This is where GGGI plays a critical role in mobilising private finance and developmental projects,” Ram-Indra said.

The industry has also experienced difficulties, with an economic slowdown between 2015 to 2016, labour shortages and depleting natural resources. However, the investment outlook is more positive this year thanks to a boost in investment in industrial estates through the government’s approval of the new Eastern Economic Corridor (EEC) law in late February.

The USD45 billion EEC project in the country’s industrial east is the latest in a series of measures rolled out to stimulate investment in the Thai economy and is projected to generate USD39 billion over the next decade.

Ram-Indra believes the EEC will provide significant potential and growth for the sector, but also warns that to maintain its competitive edge, the industry needs to look towards green investments.
Ram-Indra sees the creation of more sustainable industrial parks as an enhancement to the bottomline.

“This green investment will help people on the ground, including the owners and investors to save costs through energy efficiency and higher productivity from the workforce because they are able to enjoy a better quality of living.”

GGGI estimated in their roadmap to support Thailand’s climate change master plan that the Thai economy can potentially save about USD100 million if the manufacturing sector implements GHG reduction projects. The sector’s potential for green improvements is one of the main reasons why the organisation chose to work closely with industrial estates, Ram-Indra explained. Furthermore, the policy is also in line with working towards Thailand’s commitment to the Paris Agreement by cutting its GHG emission by 20 to 25 percent by 2030.

Dr. Frank Rijsberman, GGGI’s Director-General, and Vikrom Kromadit, CEO of AMATA Corporation PCL at the MoU signing ceremony for Green and Smart Industrial Town Development. Credit: Sinsiri Tiwutanond/IPS

In its most recent effort on Jul. 12, GGGI signed a memorandum of understanding with one of Thailand’s largest industrial estate operator’s, AMATA Corporation PCL. Under the MoU signed by GGGI’s Director-General Dr. Frank Rijsberman and AMATA’s CEO Vikrom Kromadit, AMATA will be GGGI’s first partner from the private sector in implementing its green city development programme.

“With AMATA, we want to demonstrate that industrial estates can be very different. The Industrial Estate Authority of Thailand (IEAT) is doing some interesting developments to improve the quality of these places and certain environmentally projects. But we think the vision for the industrial estates can be radically different. They could be zero-carbon or zero-waste. There are great places to cut down the commuting time,” Rijsberman told IPS.

He added that AMATA employed a large number of people “and if they all spend two hours commuting each way, you can cut down that [with] a better public transport system.”

“Not only is the environment improved, but the quality of life for those people. We think these industrial estates can be model smart cities. We want to demonstrate that they can still be commercially attractive investments but have a radically different impact on the people’s quality of life and environment,” he said.

GGGI has assisted Indonesia set up 12 special economic zones or SEZs. According to a GGGI report, the “policy interventions to enable green projects in these four sectors would yield sufficient returns and create USD870 Million in potential net economic benefits.”

“AMATA is interesting to us because we also have states in Vietnam where there are about 230 of these special economic zones. They are just starting in Laos and Myanmar. Our intent is that once we demonstrate to AMATA how this can work, it should have an impact on industrial estates in Thailand and throughout the region.

“We are doing other projects along the same line in Vietnam, our green investment specialist is working with a company to install solar roofing in the park and helping them to work with banks and working out the best business model. The idea is if one is successful, then it can really scale,” Rijsberman said.

For Kromadit, the future of the country’s development depends on having a smarter and better facility environment. He hopes the MoU will help push future developments to see environmental issues including access to greener spaces on top of reducing pollution as incentives for investment in the EEC.

GGGI’s work also considers the societal aspect affecting the community and workforce in and around the industrial estate. “We are looking to improve the quality of life for those people including cleaner air, lessening their transportation time and overall improving the standards of living,” Ram-Indra said.

Thai manufacturers and industrial estate operators should take confidence in the transition towards eco-industrial developments by looking towards one of its biggest competitors, Indonesia. A recent study by consulting firm Solidiance showed Indonesia’s top five green industrial parks have produced encouraging results.

Companies that have reused their water were able to decrease 10 to 15 percent from costs for purchasing new water and lowering their production costs. Cost saving on energy maintenance can reach up to 7 to 15 percent by employing green technology such as solar cells and LED lights. The study also projected that green space could generate a higher return for the company in the long run (over 50 years). One industrial city marketing manager noted that in addition to continued engagement between stakeholders and the local community, the community benefitted from better housing.

IEAT has implemented a similar programme with the Map Ta Phut Industrial Estate. The programme reported an improvement in public sentiment towards the industrial sector and enhanced cooperation between communities and more companies adopting environmentally and socially responsible mechanisms in their businesses.

Tara Buakamsri, Country Director, Greenpeace Southeast Asia, told IPS he would like to see greater community engagement in the IEAT programmes.
“To ask whether the idea of eco-industrial estates can be sustainable, it has to be in the context of a framework for good governance that require transparency and check and balances between all the stakeholders involved. We need to involve the local communities that live around the estates as well.”

Ram-Indra hoped the success of the AMATA partnership and other sustainable industrial parks would not only signal other companies to follow suit, but also act as a model for other countries especially those in the Southeast Asia region.

“My concern is that the change is not happening fast enough. There needs to be a bigger push from all the stakeholders involved,” he said.

Related Articles

• Inclusive Green Growth Must Shape Thailand’s Future, Says GGGI Chief
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• Thailand’s Sufficiency Economy Philosophy and the Sustainable Development Goals

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A girl washes her hands and face with soap and water at a water tap, installed with the support of HSBC and WaterAid, in Sylhet District, Bangladesh. Credit: WaterAid/Abir Abdullah

By Vanita Suneja
NEW DELHI, Jul 16 2018 (IPS)

In 2030, when I would be turning sixty, I’d like to tell my grandchildren the story of how – once upon a time – the lives of poor people in South Asia were transformed: that leaders came together to bring economic prosperity and social development to people that until then had lived in an unequal and polluted world.

What I am more likely to tell them, is how – even with the knowledge that nearly 800 children under five die every year from diarrhoeal diseases caused by poor water and sanitation – governments failed to act and people remain locked in a cycle of ill-health and poverty.

Ending the cycle of poverty absolutely by 2030, without leaving behind a single person, is the most ambitious promise made to date by world leaders in 2015 when they adopted the sustainable development goals: which included the provision of universal access to water and sanitation that is essential for achieving significant progress in health, education and equality.

When people have access to clean water and decent sanitation, their wellbeing increases: women and girls have time to go to school because they don’t have to fetch water for their families – this responsibility often falls on the female members or a family, and with better health comes increased productivity both in school and at work.

For every £1 invested in WASH at least £4 is returned in increased productivity, primarily based on improved health and more time to work or study.

With floods and droughts affecting the region at different times of the year, it is important that climate-resilient services are set up. This includes managing resources responsibly and minimising the effects of climate change.

Governments in South Asia have taken steps in the right direction. Nepal has taken a rights-based approach to water, sanitation and hygiene in its constitution, which sets the bar for accountability at the highest political level. The constitution states peoples’ right to live in healthy and clean environment as well as the right to access to safe water and sanitation.

Through its Clean India Mission, an incredible story emerges from India, where considerable progress has been made on sanitation. The Indian government aims to ensure that the entire population will have access to a decent toilet by 2019, so that nobody has to go in the open after that.

Bangladesh has shown the way on inclusion, having achieved the Open Defecation Free status before 2015. The government of Bangladesh has since adopted an inclusive approach to water as well, and is working to connect all those living in makeshift houses in the capital’s slums to a piped network.

Despite this progress, South Asia faces daunting challenges. Governments, donors and the private sector must be held accountable if they are not doing enough. While 88 percent of South Asia’s population has access to at least basic water, still more than half the population of South Asia lacks access to even basic sanitation.

Disparities are large between cities and rural areas: while 5.6 percent of the urban population in South Asian nations defecate in the open – having no other option as no decent sanitation is available to them – yet in rural areas, this is as high as 45 percent.

For all nations to deliver on their commitment to provide universal access to water and sanitation by 2030, governments need to prioritise WASH – the NGO term for water, sanitation and hygiene – and ensure that finances are directed towards achieving those goals.

Sanitation, water and hygiene have a bearing on health, education, nutrition, equality and poverty eradication. WASH is thus crucial to breaking the cycle of ill-health and poverty in which too many people still live today.

An important part of the promise to deliver water and sanitation to everyone, everywhere, is to leave no one behind. This requires renewed focus on addressing the equity challenge.

The private sector and civil society groups have an important role to play in partnering with the government to reach out to marginalized and vulnerable populations.

This week, world leaders are coming together at the United Nations in New York to discuss the progress made on sustainable development goal 6 – to provide universal access to clean water and decent sanitation.

This is an important moment to highlight the urgency of having clean drinking water and a proper toilet, and to ensure that the lives of people in South Asia and beyond will be transformed within a generation.

The post Despite Progress, South Asia Faces Daunting Challenges in Water & Sanitation appeared first on Inter Press Service.

Excerpt:

Vanita Suneja is Regional Advocacy Manager, South Asia, for WaterAid

The post Despite Progress, South Asia Faces Daunting Challenges in Water & Sanitation appeared first on Inter Press Service.

Interest in cryptocurrency, a form of digital currency, is growing steadily in Africa. Some economists say it is a disruptive innovation that will blossom on the continent.

By Pavithra Rao
UNITED NATIONS, Jul 16 2018 (IPS)

Cryptocurrency is not bound by geography because it is internet based; its transactions are stored in a database called blockchain, which is a group of connected computers that record transactions in a ledger in real time.

The difference between cryptocurrency and, say, Visa or Mastercard, is that a cryptocurrency is not now regulated by government and doesn’t need middlemen, and transactions rely on the internet, which means they can happen anywhere in the world.

The big cryptocurrency global brands include Bitcoin, Litecoin, XRP, Dash, Lisk and Monero, but Bitcoin leads the pack in Africa. Created in 2009 by a person or people with the alias Satoshi Nakamoto, investors hope Bitcoin becomes the new mode of financial transaction in the digital age.

“Africa is rarely mentioned among the largest markets for cryptocurrency, but it may be set to steal a march over other markets,” says Rakesh Sharma, a business and technology journalist.

Sharma says that citizens of countries battling high inflation are likely to opt for cryptocurrency, because “with their paradigm of decentralization, cryptocurrencies offer an alternative to disastrous central bank policies.”

Stealing a march
South Sudan’s inflation rate was 102% between September 2016 and September 2017, according to the World Bank. Other countries with double-digit inflation rates include Egypt, Ghana, Malawi, Mozambique, Nigeria, Zambia and Zimbabwe. It is no surprise that some of these countries are among the main Bitcoin economies in Africa.

The main Bitcoin countries are Botswana, Ghana, Kenya, Nigeria, South Africa and Zimbabwe, according to gobitcoin.io, a website dedicated to Bitcoin news in Africa. The BBC adds that cryptocurrency is gaining ground in Uganda.

When Zimbabwe’s inflation skyrocketed in 2015, forcing authorities to print $100 trillion notes (each worth just $40), some Zimbabweans turned to Bitcoin.

Zimbabweans and citizens of other African countries transact in Bitcoin “as opposed to their local currencies, which are plagued with hyperinflation,” comments Emmanuel Tokunbo Darko, vice president of marketing for ICOWatchlist.com, a platform that hosts cryptocurrency tokens.

There will be 725 million mobile phone subscribers in Africa by 2020, according to the GSM Association, which represents the interests of mobile operators globally. That means more Africans will have the tools to plug into the cryptocurrency ecosystem, says Sharma.

“I check my Bitcoin every day [on my mobile phone] and any chance I can get. Any minute, any hour, anytime, as often as I can,” Peace Akware, a Ugandan millennial, told the BBC.

Bitcoin spreads
That African governments are not now regulating cryptocurrency may be a factor spurring its growth on the continent; however, there is no guarantee that governments will not change their current mindset.

Rather than simply not wanting to, governments may be powerless to regulate cryptocurrency, the Nigerian central bank indicated recently. Currently tackling the country’s 12% inflation rate, the Nigerian apex bank announced that it could not control or regulate Bitcoin, “just the same way no one is going to control or regulate the internet. We don’t own it.”

Fearing a collapse of the banking industry or arbitrary appropriation of money by the government, Africans without access to banks and who live in politically unstable countries could be attracted to cryptocurrency. “Bitcoin transactions help to eliminate the procedural bottlenecks that plague traditional banking and financial services,” Darko explains.

Some 15 cryptocurrency-related operations began in Africa in the past year alone, reports Sharma. But South Africa–based Luno Exchange, established in 2013 and now boasting 1.5 million customers in over 40 countries worldwide, is the first to be based in Africa.

Others, particularly cryptocurrency-based remittance services, are popping up in various countries. These services include Abra, which operates in Malawi and Morocco, GeoPay in South Africa, BitMari in Zimbabwe and London-based Kobocoin, which was launched by Nigerian entrepreneur Felix Onyemechi Ugoji.

The Plaas Application is a mobile app that enables farmers to manage their stock on the blockchain.

Launched in 2013, Kenya’s BitPesa facilitates virtual remittances transfers to both African and international locations, to and from individuals’ mobile wallets, where cryptocurrency is stored. LocalBitcoins.com in Kenya reported trading volumes in excess of $1.8 million as of December 2017, underlining the lucrativeness of the business.

“I started mining Bitcoin [in Nairobi, Kenya] in September 2017 and, so far, this is the best business I have ever tried,” Gladys Laboi told Africa Renewal, adding: “Under six months, I earned $800 after investing in $700.”

Not to be left out, some governments are moving into the virtual currency terrain. Tunisia’s eDinar is a government-issued digital currency. Senegal is in the process of creating eCFA, which, if successful, could be emulated by other Francophone countries in Africa.

There will be government-issued cryptocurrencies in Africa in the near future, predicts Shireen Ramjoo, ceo of Liquid Crypto-Money, a South Africa-based cryptocurrency consulting firm.

Industry experts believe that cryptocurrency will be around for years. That Bitcoin users can send money to just about anywhere there is an internet connection for relatively small fees and with no third-party interference is an advantage that standard government-issued currencies cannot offer.

“Every single computer device on the surface of the planet with an internet connection can access information on the blockchain and make ‘transactional’ inputs onto it. The information cannot be distorted, deleted, modified or destroyed, and [the] computer device has the same information as everybody,” says Darko.

Another recommendation is that transactions are anonymous, and users’ information is private and safe; there is little possibility of identity theft, which is common with other forms of digital payment.

As of December 2017, the global demand for cryptocurrency had increased to the extent that a Bitcoin sold for $20,000. Its value had been $1,000 one year prior.

Ponzi scheme
Nevertheless, some industry watchers refer to cryptocurrency as a risky and temperamental scheme, citing the crash to $8,700 in the value of Bitcoin last February, from a high of $20,000 in December 2017.

Without regulations, cryptocurrency is a double-edged sword; there may be gains from time to time, but any precipitous crash in price could leave investors with no escape route. Manasseh Egedegbe, an investment manager based in Nigeria, says that Bitcoin’s frenzied price surge seems like the dot-com bubble at the turn of the millennium.

There is also the fact that cryptocurrency can be used by criminals to funnel funds. In 2011 Bitcoin was a currency of choice for drug peddlers, according to the US Justice Department, which seized almost $48 million worth of illegal contrabands that year, and discovered that the criminals involved had made transactions totaling 150,000 Bitcoins (approximately $130 million.

Countries such as Bangladesh, Ecuador and Kyrgyzstan believe the risks outweigh the gains and have banned Bitcoin as well as initial coin offerings or ICOs, which are used by start-ups to evade the demand for capital by banks and other financing institutions.

Quartz Africa, an online business news publication, reported last December that a similar scheme, Mavrodi Mundial Moneybox (MMM), once had over two million users in Nigeria, while also operating in Ghana, Kenya, South Africa and Zimbabwe.

There are reports that South Africa’s central bank is actively studying cryptocurrency and may institute guidelines to foster innovation. Those guidelines could be a slippery slope to regulation. The Sunday Times of South Africa reported in March that 27,500 individuals, including South Africans, lost more than $50 million when they were duped into transferring their Bitcoins into an online wallet. The publication called it “one of the biggest scams to hit South Africa.”

At 22% (the world average is 48%), Africa has the lowest rate of Internet usage of any region, according to a 2017 report by the International Communications Union, which may undercut optimistic projections of cryptocurrency and blockchain technology on the continent. Also, poor power supply in many countries continues to impede the internet access on which cryptocurrency largely depends.

Despite some analysts likening Bitcoin and other cryptocurrencies to a Ponzi scheme, many Africans are taking the risk to invest in them.

Other experts, such as Darko, believe Africa should warmly embrace the innovation. “Truth be told, Africa needs blockchain technology and its resultant cryptocurrencies more than any part of the world,” he says

*Africa Renewal is published by the UN’s Department of Public Information. The link to the original article follows: https://www.un.org/africarenewal/magazine/april-2018-july-2018/africa-could-be-next-frontier-cryptocurrency

The post Africa Could be Next Frontier for Cryptocurrency appeared first on Inter Press Service.

Excerpt:

Pavithra Rao, Africa Renewal*

The post Africa Could be Next Frontier for Cryptocurrency appeared first on Inter Press Service.

By Anis Chowdhury and Jomo Kwame Sundaram
SYDNEY & KUALA LUMPUR, Jul 16 2018 (IPS)

The United States has had the world’s largest trade deficit for almost half a century. In 2017, the US trade deficit in goods and services was $566 billion; without services, the merchandise account deficit was $810 billion.

The largest US trade deficit is with China, amounting to $375 billion, rising dramatically from an average of $34 billion in the 1990s. In 2017, its trade deficit with Japan was $69 billion, and with Germany, $65 billion. The US also has trade deficits with both its NAFTA partners, including $71 billion with Mexico.

President Trump wants to reduce these deficits with protectionist measures. In March 2018, he imposed a 25% tariff on steel imports and a 10% tariff on aluminium, a month after imposing tariffs and quotas on imported solar panels and washing machines. On 10 July, the US listed Chinese imports worth $200 billion annually that will face 10% tariffs, probably from September, following 25% tariffs on $34 billion of such imports from 7 July.

Do US trade deficits reflect weakness?
The usual explanation for bilateral trade deficits is price differentials. However, the US accuses such countries of ‘unfair’ trade practices, such as currency manipulation, wage suppression and government subsidies to boost exports, besides blocking US imports.

Trump views most trade deals such as NAFTA as unfair. His team insists that renegotiating trade deals, ‘buying American’, a strong dollar and confronting China will shrink US trade deficits.

Anis Chowdhury

But the country’s overall trade deficit, offset by capital inflows, is related to the gap between its savings and investments. The US spends more than it produces, thus importing foreign goods and services. Cheap credit fuels debt-financed consumption, increasing the trade deficit.

Total US household debt rose to $13.2 trillion in the first quarter of 2018, the 15th consecutive quarter of growth in the mortgage, student, auto and credit card loan categories. American consumer debt was more than double GDP in 2017.

US government budget deficits have also been growing. From 67.7% of GDP in 2008, US government debt rose to 105.4% in 2017. The federal budget deficit was $665 billion in FY2017, rising 14% from $585 billion in FY2016.

The US budget deficit was 3.5% of GDP in 2017. According to the US Congressional Budget Office, it will surpass $1 trillion by 2020, two years sooner than previously projected, due to Trump tax cuts and spending increases.

The growing US economy may also increase the trade deficit, as consumers spend more on imported goods and services. The stronger dollar has made foreign products cheaper for American consumers while making US exports more expensive for foreigners.

Jomo Kwame Sundaram. Credit: FAO

These underlying economic forces have become more important than policies in raising the overall trade deficit, while bilateral deficits reflect specific commercial relations with particular countries. Thus, disrupting bilateral trade relations may only shift the trade deficit to others.

Have the cake and eat it?
So, why does the US have a structural trade deficit? As the de facto international ‘reserve currency’ after the Second World War, the US has provided the rest of the world with liquidity. Its perceived military strength means it is seen as a safe place to keep financial assets. Of about $10 trillion in global reserves in 2016, for example, around three fifths were held in US dollars.

US supply of international liquidity by issuing the global reserve currency offers several economic advantages. It also earns seigniorage from issuing the main currency used around the world, due to the difference between the face value of a currency note and the cost of issuing it.

With growing foreign demand for dollars, the US can run deficits almost indefinitely by creating more debt or selling assets. Demand for dollar-denominated assets, e.g., US Treasury bonds, raises their prices, lowering interest rates, to finance both consumption and investment.

While foreign investors buy low-yielding, short-term US assets, Americans can invest abroad in higher-yielding, long-term assets. The US usually reaps higher returns on such investments than it pays for debt, labelled America’s ‘exorbitant privilege’.

Thus, for the US to enjoy the ‘exorbitant privilege’ of the dollar’s role as the major reserve currency, it must run a chronic trade deficit. Therefore, giving up the dollar’s global reserve currency status will have major implications for the US economy, finances and living standards.

Can the US win Trump’s trade war?
Barry Eichengreen noted that countries in military alliances with reserve-currency issuing countries hold about 30% more of the partner’s currency in their foreign-exchange reserves than countries not in such alliances. Instead, Trump has prioritized reducing trade deficits to strengthen the US dollar and dominance while disrupting some old political alliances.

As the US retreats from the global diplomatic stage, use of other reserve currencies, including China’s renminbi, has been growing, especially in Europe and Africa. Thus, ironically, as Trump wages trade wars on both foes and friends, China will probably gain, both geopolitically and economically.

The resulting global economic shift will not only hurt the US dollar and economy through the exchange rate and borrowing costs, but also its geopolitical dominance.

Anis Chowdhury, Adjunct Professor at Western Sydney University (Australia), held senior United Nations positions in New York and Bangkok.
Jomo Kwame Sundaram, a former economics professor, was United Nations Assistant Secretary-General for Economic Development, and received the Wassily Leontief Prize for Advancing the Frontiers of Economic Thought in 2007.

The post Will Trump’s Trade War Make America Great Again? appeared first on Inter Press Service.

A comment heralding the multicultural French World Cup winners sparks an online debate about racism.

Action returns in the African Champions League with the third matches of the group phase on Tuesday.

A coastal city, Sierra Leone’s capital, Freetown, is an area where people have relied on the ocean for food and employment for as long as they have lived there. An increasing number of African countries are now embracing the blue economy for its potential to deliver solutions to their most pressing development needs. Credit: Travis Lupick/IPS

By Miriam Gathigah
NAIROBI, Jul 16 2018 (IPS)

An increasing number of African countries are now embracing the blue economy for its potential to deliver solutions to their most pressing development needs–particularly extreme poverty and hunger.

Countries, including Kenya, Tanzania, South Africa, Mauritius, Comoros, Madagascar and the Seychelles–which has already established the Ministry of Finance, Trade and the Blue Economy–are recognising the need to diversify their economies.

“The African Union has also adopted the blue economy, which is about exploiting resources such as oceans, lakes and rivers, into its 2063 development agenda for socio-economic transformation,” Danson Mwangangi, an independent economic researcher and analyst, tells IPS.

He says that for agrarian economies like Kenya, “agriculture alone will not be sufficient to drive the economy since the sector is facing many challenges, including shrinking farmlands, pest infestations and unpredictable weather changes.”The blue world will only be a win for Africa if there are strategies in place to exploit and protect it. -- Caesar Bita, head of underwater archaeology at the National Museums of Kenya

In Kenya, for instance, World Bank statistics show that in 2017 alone maize production dropped 20 to 30 percent due to insufficient rains and army worm infestation. The country has an annual maize shortfall of eight million bags per year.
Against this backdrop, experts are urging African countries to diversify and look beyond land-based resources by exploring the blue economy as it presents immense untapped potential.

The World Bank and the United Nations Development Programme (UNDP) in their 2018 policy brief make a strong case in favour of the blue economy.
Mwangangi says that it can significantly enable Africa to improve its volumes of global trade, achieve food security and meet its energy demands.

Ocean renewable energy has the potential to meet up to 400 percent of the current global energy demand, according to the International Energy Agency.

“Seventy percent of African countries are either coastal or islands, we need to harness such valuable coastlines,” says Caesar Bita, head of underwater archaeology at the National Museums of Kenya.
He tells IPS that the blue world can significantly transform the lives of communities that live closest to those bodies of water since they lead very precarious lives.

According to John Omingo, head of commercial shipping at the Kenya Maritime Authority, very little has been done in the way of harnessing these vast water-based resources for economic gain.
“Africa’s coastline is about 31,000 kilometres long and yet trade among African countries accounts for 11 percent of the total trade volume, which is the lowest compared to the Association of Southeast Asian Nations, Europe and America,” he expounds.

Bita tells IPS that while Africa is the largest island on earth as it has the Atlantic Ocean on the west; the Indian Ocean on the east; the Antarctic ocean on the south, and the Mediterranean and Red Sea on the north, “there is very little shipping that is going on in Africa. African-owned ships account for less than 1.2 percent of the world’s shipping.”

Ahead of the upcoming Sustainable Blue Economy Conference, that will be co-host by Kenya and Canada this November, in Nairobi, economic experts are optimistic that the blue economy movement is gaining traction.
The high-level conference is expected to advance a global agenda on sustainable exploitation of oceans, seas, rivers and lakes.

One of Freetown’s larger fishing harbours is Goderich Beach, less than 30 minute’s drive from the city’s downtown core. There, a single motorised boat can bring in as much as 300 dollars worth of fish in a single day. Credit: Travis Lupick/IPS

“Holding the conference in Africa with Canada as a co-host is also very strategic and shows that the continent is coming into this agenda as an important partner. Some of the most important gateways for international trade are actually in Africa,” says Bita.
Mwangangi says that African countries will need to assess their own individual capacities and interpret the blue economy in the manner that makes most economic sense to them.

“The concept is not a one-size-fits-all. Each country will need to evaluate what water-based natural resources are at their disposal,” he says. “On the Indian Ocean side of the continent where we have South Africa and Mauritius, countries tend to embrace an industrial approach,” he adds.

Research shows that South Africa’s Operation Phakisa, a national development plan, also places a focus on the blue economy as it is expected to create one million new jobs by 2030 and add approximately USD13 billion into the country’s economy.

Experts also point to Mauritius which is among the smallest countries in the world but has territorial waters the size of South Africa, making the small nation one the strongest blue economies in Africa. It ranked as Africa’s wealthiest nation based on its per capita income in 2015. Bita adds that Mozambique, which lies alongside the Indian Ocean, is characterised by the highest species of diverse and abundant natural resources.

Kenya is among African countries that are developing strategies to mainstream the blue economy within its national economic blueprint. Bita says that this East African nation’s blue economy includes maritime transport and logistics services, fisheries and aquaculture, tourism as well as the extractive industries such as the offshore mining of gas and oil, titanium and niobium.

Nonetheless, environment experts, including Bita, have expressed concerns that ongoing talks on the blue economy have largely revolved around full exploitation, in order for countries to develop rapidly in the next 10 years, and little on sustainability.

“This is a problem since there is evidence to show that oceans resources are limited. For instance, explorers have presented evidence to show that at least 90 percent of the largest predatory fishes have disappeared from the world’s oceans,” he cautions.

The blue world will only be a win for Africa if there are strategies in place to exploit and protect it, he adds.

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The post Blue Economy Movement Gains Traction in Africa appeared first on Inter Press Service.

By WAM
DUBAI, Jul 16 2018 (WAM)

Dubai Electricity and Water Authority, DEWA, has started testing the turbines in the M-Station expansion project in Jebel Ali, which is the newest and largest electricity generation and water desalination plant in the UAE.

The cost of the expansion project is AED1.47 billion. Testing includes an initial operation of turbines and power generators and connecting them to the grid. These tests are essential to ensure the quality and reliability of the units while connected to the grid. Tests are scheduled to continue until the completion of the project in Q4 of 2018.

The project’s team currently focuses on preparations and operational readiness to assess the station’s readiness. After the completion of the initial tests, DEWA will start testing the pilot operation of the plant. A plan has been devised to conduct these tests according to the best practices, and based on accumulated experience in this field, to achieve maximum reliability, efficiency and safety. The plan aims to reduce commission costs in three areas: rationalising fuel consumption, regulating interruptions, and reducing heat rate.

Saeed Mohammed Al Tayer, DEWA Managing Director and CEO, said that the Jebel Ali M-Station expansion project supports DEWA’s efforts to enhance the infrastructure, improve DEWA’s services according to the highest international standards, and support its vision to become a sustainable innovative world class utility.

He added that the tests are conducted in four main stages: initial operational launch, operational tests, reliability tests, and performance tests. These tests aim to achieve the project’s objectives by ensuring the conformity of its technical specifications. When completed, the project will increase the station’s total capacity to 2,885MW.

The expansion project includes the provision of new power generating units adding a further 700MW to the installed generating capacity of M-Station. The expansion project includes the addition of two dual-fuel gas turbine generators, two heat recovery steam boilers, and one steam turbine with 90 percent of fuel efficiency. This will increase the plant’s thermal efficiency from 82.4 percent to 85.8 percent, which is one of the highest thermal-efficiency rates in the world, Al Tayer added.

WAM/Rola Alghoul/Nour Salman

The post DEWA begins testing turbines at 700MW M-Station appeared first on Inter Press Service.

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