Africa

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Yasmine Sherif, the Director of Education Cannot Wait, sees the ECW High-Level Financing Conference as crucial to turning the agreements from the Transforming Education Summit into action. Credit: ECW

By Joyce Chimbi
NAIROBI, Feb 3 2023 (IPS)

The world is in the throng of a monumental, damaging, and unprecedented global education crisis. Wars, protracted conflict, extreme climate changes, hunger, COVID-19, and economic uncertainties are pushing children out of the education system.

In 2016, an estimated 75 million children in crisis needed educational support. Today, the number has tripled to 222 million. From Afghanistan, Moldova, Colombia, Libya, Iraq, Somalia, and South Sudan, as life as they knew it crumbles around them, education is their last hope.

“The dreams of 222 million girls and boys are being crushed by conflicts, displacement, and climate chaos. Nobody knows this better than Education Cannot Wait — an education lifeline for children across 40 countries in crisis,” said UN Secretary-General António Guterres.

UN Secretary-General António Guterres says children’s dreams cannot be defeated by conflict, displacement, and climate chaos. Credit: UN

“At February’s financing conference, I urge leaders to commit to investing in education systems that can support those being left behind. Let’s keep dreams alive. Let’s keep hope alive. Let’s keep pushing for the brighter future every child deserves.”

Not only are affected children furthest left behind the education system missing out on lifelong learning and earning opportunities, but they are also the most vulnerable to sexual and economic exploitation, human trafficking, and recruitment into militia groups.

Yet funding is insufficient to push back against multiple challenges so that children can access a safe, inclusive, quality education. For this reason, leaders across the globe will come together at the Education Cannot Wait High-Level Financing Conference on February 16-17, 2023, in Geneva, Switzerland, to make good on commitments to ensure every child, everywhere, is offered quality education.

Yasmine Sherif, the Director of Education Cannot Wait, explains that the ECW High-Level Financing Conference is a “crucial opportunity to turn commitments from the Transforming Education Summit (TES) into action. By providing substantive funding contributions to ECW, strategic donor partners can ensure quality education for girls and boys in the toughest crisis contexts around the globe.”

She further stressed that “now is the time to redouble our collective efforts if we want to achieve the Sustainable Development Goals (SDGs) by 2030. Education – SDG4 – must be at the center of these efforts, as it is the foundation for all other goals to be achieved.”

With support, ECW High-Level Financing Conference can offer hope of quality education to all children. Credit: UNHCR Ghislaine Nentobo

Co-hosted by ECW and Switzerland and co-convened by the Governments of Colombia, Germany, Niger, Norway, and South Sudan, the Geneva event will be open to the public as a live-streamed virtual event.

The heart of the conference agenda is a concerted global push to mobilize much-needed resources from donors, foundations, and high-net-worth individuals to deliver on ECW’s four-year strategic plan, which will mobilize US$1.5 billion in additional resources to reach 20 million children and adolescents caught in some of the world’s worst humanitarian crises.

Keynote speakers include the UN Special Envoy for Global Education and Chair of ECW’s High-Level Steering Group, Gordon Brown; Federal Councillor of the Swiss Confederation, Ignazio Cassis; Federal Minister for Economic Cooperation and Development, Germany, Svenja Schulze; Minister of Education, Niger, Ibrahim Natatou; Minister of International Development, Norway, Anne Beathe Tvinnereim; Minister of General Education and Instruction, South Sudan, Awut Deng Acuil; and Minister of Education, Colombia, Alejandro Gaviria.

Top-level representatives from UN agencies, civil society, governments, and global youth representatives will also participate in the two-day event, which expects over 400 delegates in-person and many more joining online globally.

The significance of this conference cannot be over-emphasized, for 78 million out of an estimated 222 million children and adolescents impacted by conflict, and other emergencies are out of school altogether.

Nobel Peace Prize Laureate Malala Yousafzai says without financing, young people in countries affected by crises may have to wait for generations to have their right to education. Credit: UN

“At this pace of progress,” the Nobel Peace Prize Laureate Malala Yousafzai cautions, “Girls in crisis-affected countries may not be able to complete their education until 2063. Young people in countries affected by crises will have to wait for generations to have their right to education.

“I urge leaders to ensure a safer and fairer future to all children by fully funding Education Cannot Wait. Please make sure that 222 million children are not left behind. Please ensure that all children can access safe, quality, and free education.”

To accelerate progress, the event will kick off with a high-level segment on February 16, 2023, inviting global leaders to position the education needs of crisis-impacted children at the top of the international agenda.

On the first day of the conference, leaders will announce substantial new financial support to Education Cannot Wait to deliver on the Fund’s goal to reach 20 million girls and boys over the next four years.

A notable spotlight on Afghanistan – headlined by “I Am Malala” co-author Christina Lamb and Somaya Faruqi, captain of the Afghan Girl’s Robotic Team – will provide a key advocacy moment on the first day of the conference, along with important sessions on A New Way of Working, Delivering with Humanitarian Speed and Development Depth, and Leaving No One Behind in Forced Displacement Situations.

On the second day, February 17, 2023, a series of roundtable discussions to share ideas, experiences, and stories to transform education delivery in emergencies worldwide will be featured.

Founded in 2016, Education Cannot Wait has already reached close to 7 million children and adolescents with holistic education support, including upgrading learning spaces and ensuring children have quality learning materials, training and financially supporting teachers, and providing mental health services, school feeding, and other whole-of-child solutions. The Fund has already raised over US$1.1 billion from donors, the private sector, and philanthropic foundations.

IPS UN Bureau Report

 

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Food insecurity in Sri Lanka has increased dramatically due to two consecutive seasons of poor harvests, foreign exchange shortages, and reduced household purchasing power. Amidst Sri Lanka’s worst economic crisis since independence, the UN revised its joint Humanitarian Needs and Priorities (HNP) Plan, appealing for more life-saving assistance to aid 3.4 million people. November 2022 Credit: UNICEF/Chameera Laknath

By Neville de Silva
LONDON, Feb 3 2023 (IPS)

On February 4, Sri Lanka commemorates 75 years of Independence. But it will not be the extravaganza of the past years, the minaturised imitations of the grand displays on Moscow’s Red Square or China’s Tiananmen Square.

Still, a critical question has been reverberating in the community ever since the government announced a scaled down celebration to commemorate 75 years since Britain relinquished power in 1948.

After defaulting on the country’s debt servicing last April for the first time in its post-independence history and being forced to resort to massive printing of money to meet state expenditure, does Sri Lanka need to celebrate independence day this year however downsized it would be?

Particularly so, when President Ranil Wickremesinghe’s government itself claims Sri Lanka is struggling economically and it would take years to recover from its current chaos created by leaders who inexorably pushed it to the tip of the abyss with stupid economic policies, wasteful expenditure and wide- scale corruption and fraud.

While imposing unbearable new taxes and other restrictions on the daily lives of the people, driving them further into penury with school children going without meals, fainting in their classrooms and in need of medical treatment which itself is becoming scarce, the country’s leaders don’t seem short of resources for celebrations.

Even the country’s diplomatic missions will be holding their annual independence day celebrations as the invitation I received indicated, feasting their countrymen as best as they could.

Yet over the last couple of months the government has been selling the story that it has no funds to pay for the Local Government elections due in March. A strange enough claim after President Ranil Wickremesinghe, in one of his other roles as finance minister, presenting the budget for 2023 last November allocated funds for the election and parliament, which oversees public expenditure, approved it.

Now, the very persons who allocated money just three months ago claim to lack funds for a constitutionally required election. Punning on the old Harry Belafonte calypso, there is a hole in the budget, said some wag on social media.

It is this contradiction in government conduct that an already enraged people find inexcusable. Having got rid of one elected president– Gotabaya Rajapaksa– who surreptitiously fled the country last July when mounting peoples’ protests demanded the Rajapaksa clan quit the government, they find themselves confronted with what Sri Lankans have come to see as a Rajapaksa clone– and now derisively call him Ranil Rajapaksa– thrust into the presidency to keep the family’s political fires alight.

The Roman poet Juvenal dismissively called the delusionary performances staged by the Roman emperors of the time to distract their discontented citizenry, “panem et circensus”- bread and circuses.

Bread, like some other essentials, might be scarce or priced beyond the reach of many of its 22 million people. A few months back, the UN agency UNICEF reported that 5.7 million Sri Lankans including 2.3 million children, are in need of humanitarian assistance and the numbers are likely to rise in the coming days.

But the country’s leaders are not beyond performing their own circus acts. A few days back President Wickremesinghe appointed two more cabinet ministers bringing the total to 22.

Within hours Sri Lankans with their innate sense of humour were on social media branding the new cabinet “Ali Baba and the 22” with the doors to the cabinet still open for more acolytes chosen not for integrity and competence but loyalty.

Before the two new ministers fattened the cabinet, splicing off the portfolios of two existing ministers, President Wickremesinghe a couple of months ago appointed 37 state ministers leaving room for three more.

Sri Lanka’s bloated ministerial ranks would surely be one of the largest in today’s parliamentary democracies. Not only is it large in numbers but the perks offered to ministers and state ministers is stunningly staggering–salaries, free housing, several expensive vehicles with fuel, free utilities such as electricity, water, telephones up to a point, several personal staff with paid salaries, armed personal security with escort vehicles, a special allowance for each day they attend parliament, state pension after five years and other facilities not generally known.

While the government is prepared to splash state funds on bolstering party cadres and lickspittle who have creamed off state assets, in the last couple of months it has been using every ruse in the books-and some which are not in them- trying to deprive the people of their constitutional right to the franchise, by blocking the Local Government elections due shortly.

This election, last held in 2018, is for 340 municipal councils, urban councils and village bodies is scheduled for March 9—the date set by the independent Election Commission last month.

But as the day for the election, as constitutionally required, neared, the attempts to stymie it began with grandees of President Ranil Wickremesinghe’s United National Party (UNP) and the Rajapaksa clan-run Sri Lanka Podujana Peramuna (SLPP) that is propping up Wickremesinghe with its parliamentary majority, asserting that economic recovery must precede elections.

Ministers and even state officials were trotting out excuses that there was no money to fund elections, expecting the populace to have forgotten the budgetary allocation passed by parliament a few months back.

As this was being written, internationally-known legal academic and former foreign minister Prof GL Peiris was telling the media the government had made seven attempts to try and stop the election including an affidavit to the Supreme Court filed by the secretary to the finance ministry claiming the state of the economy precluded holding elections right now.

The latest ruse was a law called the Election Expenses Bill to control spending for elections hurriedly passed by parliament. If, as Justice Minister Wijeyadasa Rajapaksa said, this proposal has been hanging fire for years, why the rush now, the opposition and anxious voters asked.

Like the opposition, the public too smelled a rotten rat. It was seen as another attempt to derail the elections by calling for the provisions of the bill be incorporated which would call for more time.

Despite all the public bravura, both the Rajapaksa-controlled SLPP and Wickremesinghe-led UNP which was swept into oblivion at the 2020 general elections, fear that given the mood of the country which rose in mass protests for some seven months last year leading to the resignation of President Rajapaksa and three of his brothers from the cabinet, they would suffer ignominious defeat.

Especially so the UNP which lost every single seat including that of party leader Wickremesinghe who managed to creep back into parliament one year later through a clause in the electoral law.

Not only would a poor electoral performance by the SLPP and UNP which have now joined hands make governance difficult and troublesome, it would also strengthen public opposition both to the Rajapaksas and President Wickremesinghe who many argue-and rightly so-as a leader rejected by the country two years ago and lacking a popular mandate to rule the country.

So what one sees now is a symbiotic relationship between the executive headed by Wickremesinghe and the legislature controlled by the Rajapaksas, running the country and using outdated laws- some dating back to British times- to beat back public dissent, employing the security forces to trample on the constitutionally guaranteed freedoms of the people- free speech and expression, of association and assembly and peaceful protest.

It also raises issues about the independence of the Attorney-General and some of the independent institutions set up under the constitution which are believed to have come under pressure during the Wickremesinghe presidency.

With two arms of the state- the executive and legislature under the control of the Wickremesinghe-Rajapaksa- led cabal and backed by the security forces as recent event have shown, Sri Lanka’s increasingly beleaguered populace can only rely for justice on the third arm of the state- an independent judiciary.

Over the years the judiciary has, now and then, been under pressure from dictatorial leaders who have not been averse to tamper with justice and the judicial process, sometimes denying impartial, independent judges their rightful place as chief justice or appointing friends or those amenable to the judiciary.

But two recent judgements by the Supreme Court have resurrected public faith that the judiciary could be relied on to safeguard the constitution and the peoples’ constitutional and human rights against state abuse of the law and the battering and brutality by the security forces.

A few months back the government tried to push through a “Bureau of Rehabilitation Bill” ostensibly to help treat and rehabilitate drug addicts and other drug users. Under cover of that it hoped to incarcerate political dissidents, activists and others which state security would identify those they do not like as ‘trouble makers’.

So, it included among those to be included under the law “ex-combatants, members of violent groups, violent extremist person and any other person or group of persons”.

The Supreme Court saw through this as an attempt to round up any person the authorities considered a political nuisance and hold them without recourse to the law. The court struck down the clause.

Holding that the Bill as a whole violated the constitution, it said it could be acceptable if certain clauses were amended. One of the clauses it found repugnant was the one cited above which the court wanted deleted, leaving rehabilitation open only to drug dependent persons and those identified by law as in need of rehabilitation.

In mid-January the Supreme Court delivered a landmark verdict which held former president Maithripala Sirisena, secretary of the defence ministry, police chief and top- ranking intelligence officers, of dereliction of duty and “failure to act” when valid and clear intelligence was passed on by foreign sources of an impending terrorist attacks by Islamic extremists on churches on Easter Sunday in 2019.

Some 270 persons including foreigners were killed and several hundred wounded in these attacks on churches and Colombo hotels.

Since these were civil cases, President Sirisena was fined 100 million rupees and the others lesser amounts. Sirisena as a former president was no longer entitled to immunity, a lesson for other former and future presidents that they too are liable to civil and criminal action such as corruption and human rights violations once they cease to hold office.

These judicial judgments bring some hope to the people that the citadels of power are vulnerable and could be breached by a strong and upright judiciary, the only institution now left to protect and uphold the country’s democratic traditions and norms.

If the judiciary is badgered, the last resort is too bloody to contemplate.

Neville de Silva is a veteran Sri Lankan journalist who held senior roles in Hong Kong at The Standard and worked in London for Gemini News Service. He has been a correspondent for the foreign media including the New York Times and Le Monde. More recently he was Sri Lanka’s Deputy High Commissioner in London.

Source: Asian Affairs, London

IPS UN Bureau

 

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By Ines M Pousadela
MONTEVIDEO, Uruguay, Feb 2 2023 (IPS)

On 25 January, roughly six weeks after being sworn in following her predecessor’s removal, Peruvian president Dina Boluarte finally recognised that elections were the only way out of political crisis. Elections were rescheduled for April 2024, much earlier than the end of the presidential term she’s been tasked with completing, but not soon enough for thousands who’ve taken to the streets demanding her immediate resignation.

Boluarte’s call for a ‘national truce’ has been met with further protests. Their repression has led to major bloodshed: the Ombudsman’s office has reported close to 60 dead – mostly civilians killed by security forces – and 1,500 injured.

What happened and what it means

It’s unusually easy to impeach Peru’s presidents: a legislative majority can vote to remove them on vaguely defined grounds.

Pedro Castillo, elected president in July 2021, had already survived two removal attempts and faced a third. On 7 December he made a pre-emptive strike: he dissolved Congress and announced a restructuring of the judiciary, as former president Alberto Fujimori had done decades earlier in the ‘self-coup’ that started several years of authoritarian rule.

Castillo announced the establishment of an exceptional emergency government where he would rule by decree and promised to hold congressional elections soon. The new Congress, he said, would have the power to draft a new constitution.

But unlike Fujimori, Castillo enjoyed meagre support, and within hours Congress voted to remove him from office. He was arrested and remains in pretrial detention on rebellion charges. Vice-president Boluarte was immediately sworn in.

In the whirlwind that followed there was much talk that a coup, or a coup attempt, had taken place – but opinions differed radically as to who was the victim and who was the perpetrator.

The prevailing view was that Castillo’s dissolution of Congress was an attempt at a presidential coup. But others saw Castillo’s removal as a coup. Debate has been deeply polarised on ideological grounds, making clear that in Peru and Latin America, a principled rather than partisan defence of democracy is still lacking.

Permanent crisis

Recent events are part of a bigger political crisis that has seen six presidents in six years. In 2021, a polarising presidential campaign was followed by an extremely fragmented vote. The runoff election yielded an unexpected winner: a leftist outsider of humble origins, Castillo, defeated the right-wing heiress of the Fujimori dynasty by under one percentage point. Keiko Fujimori initially rejected the results and baselessly claimed fraud. Castillo’s presidency was born fragile. It was an unstable government, with a high rotation of ministers and fluctuating congressional support.

Although Castillo had promised to break the cycle of corruption, his government, himself and close associates soon became the target of corruption allegations coming not just from the opposition but also from state watchdog institutions. Castillo’s response was to attack the prosecutor and ask the Organization of American States (OAS) to apply its Democratic Charter to preserve Peruvian democracy supposedly under attack. The OAS sent a mission that ended with a call for dialogue. Only two weeks later, Castillo embarked on his short-lived coup adventure.

Protests and repression

According to Peru’s Constitution, Boluarte should complete Castillo’s term. But observers generally agree there’s no way she can stay in office until 2024, never mind 2026, given the rejection she faces from protesters and political parties in Congress.

A wave of protests demanding her resignation rose as soon as she was sworn in, led mostly by students, Indigenous groups and unions. Many also demanded Castillo’s freedom and government action to address poverty and inequality. Some demands went further, including a call for a constituent assembly – the promise Castillo made before being removed from office – to produce more balanced representation, particularly for Indigenous people. For many of Peru’s poorest people, Castillo represented hope for change. With him gone, they feel forgotten.

Four days into the job, Boluarte declared a regional state of emergency, later extended to the whole country. Protests only increased, and security forces responded with extreme violence, often shooting to kill. No wonder so many Peruvians feel this isn’t a democracy anymore.

The state of Peruvian democracy

The Economist Intelligence Unit’s Democracy Index rates Peru as a ‘flawed democracy’. A closer look at the index’s components suggests what’s wrong with Peruvian democracy: it gets its lowest score in the political culture dimension. In line with this, the Americas Barometer shows Peru has one of the lowest levels of support for democracy in Latin America and is the country where opposition to coups is weakest.

Peru’s democracy scores low on critical indicators such as checks and balances, corruption and political participation. This points to the heart of the problem: it’s a dysfunctional system where those elected to govern fail to do so and public policies are inconsistent and ineffective.

According to every survey, just a tiny minority of Peruvians are satisfied with their country’s democracy. The fact that no full-fledged alternative has yet emerged seems to be the only thing currently keeping democracy alive. Democratic renewal is urgently needed, or an authoritarian substitute could well take hold.

Inés M. Pousadela is CIVICUS Senior Research Specialist, co-director and writer for CIVICUS Lens and co-author of the State of Civil Society Report.

 

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By External Source
Feb 2 2023 (IPS-Partners)

 

UN Secretary-General António Guterres is calling on world leaders to support the UN’s global fund for education in emergencies, Education Cannot Wait (ECW), at the upcoming ECW High-Level Financing Conference in Geneva Switzerland, 16 and 17 February 2023.

Around the world, 222 million children and adolescents impacted by conflict, climate change, displacement and other protracted crises are in need of urgent education support.

In his video statement, Guterres called on leaders to support ECW and its strategic partners in realizing 222 million dreams for the world’s most vulnerable children.

The ECW High-Level Financing Conference seeks to mobilize much-needed resources from donors, foundations and high-net-worth individuals to deliver on ECW’s four-year strategic plan, which will mobilize US$1.5 billion in additional resources to reach 20 million children and adolescents caught in some of the world’s worst humanitarian crises.

The Conference is co-hosted by Switzerland and ECW, in close collaboration with the Governments of Colombia, Germany, Niger, Norway and South Sudan, and will be open to the public as a live-streamed virtual event.

Register today

 

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Meet the women who are breaking boundaries and living their lives while wearing a hijab.

Protesters in Mulhouse, France warn of the dangers of privatisation. The sign reads ‘when everything is privatised, we will be deprived of everything. Credit: NeydtStock / Shutterstock.com

By Océane Blavot, Rodolfo Bejarano and Mae Buenaventura
BRUSSELS / LIMA / MANILA, Feb 2 2023 (IPS)

Last month, we joined more than 1000 representatives from all sectors of civil society who came together in Santiago de Chile to debate the future of – and threats to – public services the world over.

Participants discussed the chronic underfunding which continues to drive economic inequality, injustice and austerity, and the neocolonial policies that maintain the status quo.

Today those debates have resulted in the launch of “Our Future is Public: The Santiago Declaration for Public Services” – a momentous agreement signed by more than 200 organisations vowing to work to “transform our systems, valuing human rights and ecological sustainability over GDP growth and narrowly defined economic gains.”

One of the most damaging initiatives that has deeply affected the delivery of public services and infrastructure projects on all continents is the rise of public-private partnerships, or PPPs.

They have long been promoted by institutions such as the World Bank as a silver bullet to close the so-called gap to finance investments in services and infrastructure. The premise is that the private sector can deliver these services more efficiently and to a higher standard than the public sector, despite extensive evidence to the contrary.

We lay the pitfalls of PPPs bare in our new report History RePPPeated II: Why public-private partnerships are not the solution – the second in a series of investigations documenting the impacts of PPPs across Africa, Asia, Latin America and Europe.

Launched at the Santiago conference with some of the partners responsible for investigating and authoring the case studies, the report not only highlights negative impacts of PPPs, but sets out recommendations for how to better finance infrastructure and public services in the face of false solutions that have been proposed given the context of the current polycrisis.

These narratives wholly reflect red flags that are raised in the Santiago Declaration.

Through these investigations, we discovered failures on multiple levels in PPPs covering infrastructure such as roads and water supplies, as well as vital public services like healthcare and education.

From escalating costs for the stretched public sector to environmental and social impacts, we found time and again that communities had been ignored, displaced, and had their basic rights violated by thoughtless projects designed and implemented in the pursuit of profit.

A prime example is that of the the Melamchi Water Supply Project (MWSP) in Nepal. First announced nearly a quarter of a century ago, the project’s aim was to deliver clean, reliable and affordable water to 1.5 million people in Kathmandu.

And yet, 24 years later, residents are still waiting, while communities at the Melamchi water source are facing scarcity of water and eroded livelihoods. Instead of safe, clean drinking water – an internationally recognised human right – they have witnessed an extraordinary revolving door of private companies and institutional funders, including the World Bank, who have each failed to deliver.

To add to the MWSP’s colossal failure, 80 hectares of farmland have been lost to the project, a heavy blow to local residents, and up to 80 households have been forcibly displaced due to construction.

Who owns and controls our resources and public services became even more vitally important with the outbreak of the Covid pandemic in March 2020. Market-based models cannot be relied upon to deliver on human rights or the fight against inequalities as they are accountable only to their shareholders and not to their users.

This resulting focus on profit is overwhelmingly apparent in our case study from Liberia. Here, US firm Bridge International Academies (now NewGlobe) ‘abandoned’ its students and teachers during the height of the Covid-19 pandemic, shutting down schools and cutting teachers’ salaries by 80-90 per cent, despite being paid by the government.

And yet, in 2021 the Liberian government indefinitely extended the project, effectively subsidising a US for-profit firm at a cost that is at least double government spending on public schools.

In Peru, the Expressway Yellow Line has emerged as one of the most controversial projects ever carried out. This toll road was supposed to ease congestion issues in the capital city Lima, but instead toll rates have been unreasonably increased on at least eight occasions.

This generated almost $23 million for the private company involved and transpired with the complicity of public officials. Meanwhile, the Peruvian state suffered economic damages of US$1.2 million due to under the table negotiations between public officials and the private company, which led to the incorrect implementation and improper modifications of the contract years after it was initially signed.

Today, questions regarding the project and conflicts surrounding its implementation remain, while Lima residents’ expectations of quality road infrastructure to improve living conditions for those who have been most affected, continue to go unmet.

The human cost of the PPP projects showcased by History RePPPeated II is self-evident, but they are far from the exception. Rather they serve to illustrate common failures with the PPP model that risk compromising fundamental human rights and that undermine the fight against climate change and inequalities.

Their continuing promotion is one of the many reasons why we support the Santiago Declaration. Together with all its signatories, we will strengthen resistance to PPPs with their focus on private-led interests and promote public-public or public-common partnerships for a future that is public.

Océane Blavot is Senior Campaign and Outreach Coordinator, Development Finance, European Network on Debt and Development; Rodolfo Bejarano is Economist and Analyst – New Financial Architecture, Latin American Network for Economic and Social Justice; Mae Buenaventura is Debt Justice Programme, Team Manager, Asian People’s Movement on Debt and Development

The Santiago Declaration on Public Services, is a global manifesto signed by more than 300 organisations from around the world, and which was launched at the end of last week. The Declaration signals the start of an international movement to move away from the privatisation of public services and towards a future that is publicly funded and controlled. It is also the outcome of a 4-day conference during which several CSOs from around the world launched a report containing a series of investigations highlighting the failures of the PPP model in projects around the world, titled History RePPPeated II.

This OpEd is authored by three of the report’s authors.

IPS UN Bureau

 

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By Jomo Kwame Sundaram
KUALA LUMPUR, Malaysia, Feb 2 2023 (IPS)

Few policymakers ever claim credit for causing stagnation and recessions. Yet, they do so all the time, justifying their actions by some supposedly higher purpose.

Now, that higher purpose is checking inflation as if it is the worst option for people today. Many supposed economists make up tall tales that inflation causes economic contraction which ordinary mortals do not know or understand.

Jomo Kwame Sundaram

Inflating inflation’s significance
Since early 2022, like many others in the world, Americans have been preoccupied with inflation. But official US data show inflation has been slowing since mid-2022.

Recent trends since mid-2022 are clear. Inflation is no longer accelerating, but slowing. And for most economists, only accelerating inflation gives cause for concern.

Annualized inflation since has only been slightly above the official, but nonetheless arbitrary 2% inflation target of most Western central banks.

At its peak, the brief inflationary surge, in the second quarter of last year, undoubtedly reached the “highest (price) levels since the early 1980s” because of the way it is measured.

After decades of ‘financialization’, the public and politicians unwittingly support moneyed interests who want to minimize inflation to make the most of their financial assets.

War and price
Russia’s aggression against Ukraine began last February, with retaliatory sanctions following suit. Both have disrupted supplies, especially of fuel and food. The inflation spike in the four months after the Russian invasion was mainly due to ‘supply shocks’.

Price increases were triggered by the war and retaliatory sanctions, especially for fuel, food and fertilizer. Although no longer accelerating, prices remain higher than a year before.

To be sure, price pressures had been building up with other supply disruptions. Also, demand has been changing with the new Cold War against China, the Covid-19 pandemic and ‘recovery’, and credit tightening in the last year.

There is little evidence of any more major accelerating factors. There is no ‘wage-price spiral’ as prices have recently been rising more than wages despite government efforts ensuring full employment since the 2008 global financial crisis.

Despite difficulties due to inflation, tens of millions of Americans are better off than before, e.g., with the ten million jobs created in the last two years. Under Biden, wages for poorly paid workers have risen faster than consumer prices.

Higher borrowing costs have also weakened the lot of working people everywhere. Such adverse consequences would be much less likely if the public better understood recent price increases, available policy options and their consequences.

With the notable exception of the Bank of Japan, most other major central banks have been playing ‘catch-up’ with the US Federal Reserve interest rate hikes. To be sure, inflation has already been falling for many reasons, largely unrelated to them.

Making stagnation
But higher borrowing costs have reduced spending, for both consumption and investment. This has hastened economic slowdown worldwide following more than a decade of largely lackluster growth since the 2008 global financial crisis.

Ill-advised earlier policies now limit what governments can do in response. With the Fed sharply raising interest rates over the last year, developing country central banks have been trying, typically in vain, to stem capital outflows to the US and other ‘safe havens’ raising interest rates.

Having opened their capital accounts following foreign advice, developing country central banks always offer higher raise interest rates, hoping more capital will flow in rather than out.

Interestingly, conservative US economists Milton Friedman and Ben Bernanke have shown the Fed has worsened past US downturns by raising interest rates, instead of supporting enterprises in their time of need.

Four decades ago, increased servicing costs triggered government debt crises in Latin America and Africa, condemning them to ‘lost decades’. Policy conditions were then imposed by the International Monetary Fund and World Bank for access to emergency loans.

Globalization double-edged
Economic globalization policies at the turn of the century are being significantly reversed, with devastating consequences for developing countries after they opened their economies to foreign trade and investment.

Encouraging foreign portfolio investment has increasingly been at the expense of ‘greenfield’ foreign direct investment enhancing new economic capacities and capabilities.

The new Cold War has arguably involved more economic weapons, e.g., sanctions, than the earlier one. Trump’s and Japanese ‘reshoring’ and ‘friend-shoring’ discriminate among investors, remaking ‘value’ or ‘supply chains’.

Arguably, establishing the World Trade Organization in 1995 was the high water mark for multilateral trade liberalization, setting a ‘one size fits all’ approach for all, regardless of means. More recently, Biden has continued Trump’s reversal of earlier trade liberalization, even at the regional level.

1995 also saw strengthening intellectual property rights internationally, limiting technology transfers and progress. Recent ‘trade conflicts’ increasingly involve access to high technology, e.g., in the case of Huawei, TSMC and Samsung.

With declining direct tax rates almost worldwide, governments face more budget constraints. The last year has seen these diminished fiscal means massively diverted for military spending and strategic ends, cutting resources for development, sustainability, equity and humanitarian ends.

In this context, the new international antagonisms conspire to make this a ‘perfect storm’ of economic stagnation and regression. Hence, those striving for international peace and cooperation may well be our best hope against the ‘new barbarism’.

IPS UN Bureau

 

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abitha Siman recalls an attack in Kaduna, Nigeria, which left her twin daughter, husband and co-wife dead. Insecurity in Nigeria is a major issue and is high on the agenda during the upcoming elections. Credit: Oluwatobi Enitan/IPS

By Oluwatobi Enitan
ABUJA, Feb 2 2023 (IPS)

Tabitha Siman, a survivor of an attack at her home, says life is not worth living after her twin daughters, husband, and co-wife were killed during an attack at her home.

Siman lives in southern Kaduna in Nigeria, where the impact of kidnapping in the region hit the headlines when bandits attacked a train heading for Abuja, killing eight and kidnapping 168. Many months later and after about USD 13 million in ransom money was paid, all were released. But the notorious rail incident is not an isolated incident. In the past year, Kaduna has seen more than 1800 deaths due to insecurity, with attacks being reported almost weekly.

Siman recalls her family were at home in Zango Kataf Local Government in July 2021 when they received information that a nearby village had been raided.

Her husband and a friend rushed to warn their neighbours because the Agbak, the village under siege, was very close.

“We started hearing sporadic gunshots. I shouted at the top of my voice, calling everyone to scamper for safety. I shouted the Fulani were attacking.”

She and her parents-in-law and one daughter were able to run to safety.

“Every other person we knew didn’t make it out on time. Here they lie in state in their mass graves.”

Insecurity, insurgency, and banditry are increasing concerns as the country returns to the polls next year for its seventh successive general election since it returned to democracy 23 years ago.

 

Women pose outside a polling station during the 2019 Nigerian Elections. Analysts say security is one of the major issues Nigeria’s future president will need to address. Credit: Commonwealth

Analysts say rising insecurity in the country could impact its outcome – with Nigeria’s security apparatus unable to guarantee security. Al Chukwuma Okoli writing in The Conversation, lists security as one of the five major challenges facing the next president. Other concerns are national cohesion, the economy, the university system and the fight against corruption.

“Nigeria is more divided and polarised than it’s ever been. The cleavages and fault-lines of ethnocentrism, sectarianism, sectionalism, parochialism and religious extremism are pushing the country to the brink,” Okoli writes.

He describes the state of national security as “apocalyptic”.

“The receding Boko Haram insurgency in the northeast is being substituted by a nexus of banditry and terrorism in the north-west. The north-central is still grappling with the deadly farmer-herder crisis. For its part, the south-east is enmeshed in separatist violence and the associated criminal opportunism. There is an upswing in gang and ritual brigandage in the south-west while south-south is still afflicted with militancy, piracy and oil theft.”

Nigeria’s insecurity has many antecedents, with many attacks, like the one affecting Siman, blamed on Fulani herders – who are seen as violent perpetrators, as climate change is believed to be behind their move to new migratory routes bringing them into conflict with settled farming communities. However, the Fulani are only one of several instigators of violence. According to the International Crisis Group, the insecurity has “escalated amid a boom in organised crime, including cattle rustling, kidnapping for ransom and village raids. Jihadist groups are now stepping in to take advantage of the security crisis.”

John Campbell writing for The Council on Foreign Relations, notes that Kaduna is increasingly the epicentre of violence in Nigeria “with conflicts over water and land use escalating in the rural areas.”

In the capital, Kaduna, there has been prolonged political, ethnic and religious violence – some dating back to colonial times when Lord Frederick Lugard, the first governor-general of an amalgamated Nigeria, built the city and encouraged the Muslims to inhabit the north and the Christians the south.

Whatever the cause of the ongoing banditry, kidnappings and violence, it’s uncertain whether the Nigerian security apparatus can keep it under control.

“The government needs put in place a robust and comprehensive security plan to deal with the risks to a smooth election process,” analysts and academics Freedom Onuoha and Oluwole Ojewale write in The Conversation. “Security forces must plan for operations involving, for example, ground and air raids against armed groups in their strongholds. There is also a need for information and psychological operations to tackle the propaganda and disinformation put out by armed groups.”

The International Crisis Group says a multipronged approach is needed. “Nigeria’s federal authorities and state governments in the northwest should work more closely, not only to heal longstanding rifts within communities and curb violence but also to address the structural causes of insecurity in the region. International partners should lend their support and expertise as well.”

Another attack survivor Jonathan Madaki, a schoolboy, remembers what happened on the morning of March 11, 2019, in an attack also blamed on Fulani, which left 73 people dead in Dogonoma Community, Kajuru Local Government Area.

On a Monday morning, they heard the sound of gunfire from a group they identified as Fulani. His mother told him to run; she went in one direction, and he and his sister in another.

“I was hit in the hand by a bullet, and I fell to the ground; despite being in pain, I appealed to my sister not to scream, and she did not scream. We stayed there for hours,” Madaki said.

The siblings finally trekked to another village and were hospitalised; once discharged, a good Samaritan enrolled him in school.

For villagers in Southern Kaduna, who are predominantly farmers, keeping body and soul together has been difficult for years. Farmers often cannot harvest crops because almost all the villages have become an enclave for the attacks.

Villagers like Bala Musa have equally lost hope in the Government restoring peace to the affected communities.

Musa, a blacksmith and a farmer, says they often find themselves in the centre of the conflict, targeted by attackers and accused by the police and soldiers of collaborating with bandits. Musa says the police shot him because they were convinced the locals were concealing weapons and hiding Fulani men.

All presidential candidates for the 2023 elections have pledged to address insecurity, but based on published articles, their promises lack details of in-depth strategies. – Additional reporting Cecilia Russell

IPS UN Bureau Report

 

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