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Three reasons why Western Tigray is significant in Ethiopia’s civil war

BBC Africa - Wed, 11/02/2022 - 17:48
The BBC’s Kaleb Moges explains the significance of Western Tigray in Ethiopia's civil war.
Categories: Africa

Wilson Kiprugut: Kenya's first Olympic medallist dies aged 84

BBC Africa - Wed, 11/02/2022 - 16:57
Wilson Kiprugut, who won Kenya's first Olympic medal in 1964, is hailed as a pioneer by David Rudisha after his death aged 84.
Categories: Africa

Counting the Massive Financial Costs of Illegal Fishing

Africa - INTER PRESS SERVICE - Wed, 11/02/2022 - 15:21

Illegal fishing is not only affecting the environment but impacting on the livelihoods of millions of fishers are also at stake, according to a new report. Here residents wave to fishers on boats in Saint Louis, Senegal. Credit: Carsten ten Brink/Flickr

By Ed Holt
BRATISLAVA, Nov 2 2022 (IPS)

As a new report lays bare the massive financial costs to developing states of illegal fishing, campaigners are hoping that drawing attention to the practice’s devastating economic effects will help push governments to greater action against the illicit trade.

Research by the Financial Transparency Coalition (FTC) released at the end of October showed that states are losing up to 50 billion US Dollars per year to the trade, with almost half of all vessels involved in illegal, unreported, and unregulated (IUU) fishing plundering African waters.

The massive ecological damage of IUU fishing has made headlines in recent years, but the report’s authors say they believe by focusing on the financial aspect of the practice, governments will have more incentive to deal with the issue.

“Until now, IUU fishing has been seen mostly as an environmental issue and a food security issue. But what we’re trying to do, almost for the first time, is to show that this is a serious financial issue, that countries are losing billions of dollars because of IUU fishing, so the issue moves from fisheries ministries to finance ministries,” Alfonso Daniels, lead author of the report, told IPS.

“Fisheries organisations are beginning to recognise that this is a financial issue, of money lost to illicit financial flows. Once this is established, there will be more incentive for countries to act because they are losing money,” he said.

The ecological damage of IUU fishing has been widely documented. The UN has warned that more than 90% of global fishing stocks are fully exploited, overexploited or depleted, describing the situation as an ‘ocean emergency’.  IUU fishing is a key contributor to overfishing, accounting for as much as one-fifth of global fisheries catches.

But the report from FTC – a group of 11 NGOs from around the world – draws attention to the economic costs of IUU fishing, which disproportionately affects poorer coastal states.

It says IUU fishing accounts for as much as one-fifth of global fisheries catches, representing up to 23.5 billion USD every year, with overall economic losses estimated to be 50 billion USD, making it the third most lucrative natural resource crime after timber and mining.

Meanwhile, Africa concentrates 48.9% of identified industrial and semi-industrial vessels involved in illegal, unreported, and unregulated (IUU) fishing, with 40% in West Africa alone, which has become a global epicentre for these activities.

But it is not just the direct financial losses that are creating economic problems in poorer states. The UN estimates that globally, 820 million people rely on fishing for their livelihoods, while in west Africa, as much as 25 percent of the labour force are involved in fishing.

IUU fishing is destroying key local fishing industries, driving communities into poverty and in some cases, malnutrition – the FTC report points out that fish consumption accounts for a sixth of the global population’s intake of animal proteins, and more than half in countries such as Bangladesh, Ghana, Indonesia, Sierra Leone and Sri Lanka.

“Illegal fishing and overcapacity in the Ghanaian trawl sector is having catastrophic impacts on coastal communities across the country,” Max Schmid, CEO of the Environmental Justice Foundation, told media earlier this year.

The group said in Ghana, for example, 80-90 percent of local fishers had seen a fall in income over the last five years.

The FTC report focuses on the financial secrecy behind IUU fishing that drives it.

It paints a picture of a practice being enabled by lax global legislation, poor international co-operation, and weak enforcement measures, coupled with a lack of resources for local bodies to fight it.

Much IUU fishing involves large foreign distant water fishing (DWF) fleets from industrialised countries. These work especially in Global South countries which cannot effectively monitor their waters and enforce regulations, and are prone to corruption, the report highlights.

It also underlines how IUU operators use complex, cross-jurisdictional corporate structures such as shell companies and joint ventures, and flags of convenience, to mask links to owners, allowing them to operate with virtual impunity.

Ending the financial secrecy around the practice is key to stopping it, say experts.

“[Solving the issue of ultimate beneficial ownership] is critical because it allows law enforcement to track ownership and go after individuals more effectively.” Lakshmi Kumar, Policy Director at the Global Financial Integrity NGO, told IPS.

But campaigners say that tackling financial secrecy alone is not going to bring an end to IUU fishing and that more measures need to be implemented, with the world’s richest countries taking the lead.

“Local governments are unable to crack down on this. Officials in West Africa have said they don’t have the means to patrol their borders and western countries are not prepared to give them that means.

“The only way there will be any change is through pressure from the main seafood markets, which is Japan, the US and EU. The G7 countries must force change by not opening their markets to anyone involved in IUU fishing, and provide the means to local governments to patrol their waters,” Daniels said.

Kumar said China also needs to be involved.

The study showed that 10 companies involved in IUU fishing were responsible for nearly a quarter of all reported cases, and that of those ten, eight were from China.

“In countries like China where most of these vessels originate, the government only gives vessels allegedly involved in IUU fishing a slap on the wrists and in other cases the vessels are part of a Chinese state-owned enterprise,” he said.

In its report, whose authors claim it is the largest analysis of IUU fishing ownership data to date, FTC calls for a number of steps to be taken.

It wants to see, among others, fisheries included in national beneficial ownership registries in all jurisdictions, with information made available to the public, fisheries included as an extractive industry in key initiatives including the Extractive Industry Transparency Initiative (EITI).

It also wants governments to publish an up-to-date list of IUU vessels allowing the use of fines and sanctions on the companies and real owners which would be collated internationally under IMO-FAO auspices to allow institutions focusing on fisheries management and Illicit Financial Flows to work together and wants to see more external support to boost monitoring capacity by coastal state governments.

The group is planning to present its findings to the European Parliament in November, and hopes to organise a high-level event in early November with representatives from the African Union and other institutions to discuss the report.

But FTC officials and other campaigners against IUU fishing are under no illusions about how quickly governments might begin to ramp up any efforts to stop their practice.

They say though that a combination of growing crises may soon force their hands.

“A combination of crises makes me think governments will be pushed into doing something. The UN has talked of an ‘ocean emergency’ because of overfishing and with the current combination of a cost of living crisis, a food crisis, the rise of the fishmeal industry in west Africa – the situation is not sustainable in ten years, or even in five or six years from now,” said Daniels.

And it would be in rich countries’ long-term interest to make sure they do address the problems IUU fishing is causing in Global South states, he added.

“All the money being lost by African countries through illicit financial flows is being lost to these other [richer] countries. They may think why should we care so much about this? But that’s a very short-sighted view, because if you mistreat fisheries grounds in West Africa then you will encourage the loss of fishing jobs and fishermen will want to migrate to Europe, then you have a migration crisis,” Daniels said.

“This is not something theoretical – you go to coasts and ports in Senegal, for example, and many people cannot catch fish, so what else are they going to do? I spoke to some people who tried to go to Spain. They failed, but this phenomenon is happening now. The approach [from these richer countries] is so short-sighted, they’re not taking this seriously.”

IPS UN Bureau Report

 


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Categories: Africa

Early Coal Retirement: How about a Global Auction

Africa - INTER PRESS SERVICE - Wed, 11/02/2022 - 11:29

There are over 8,500 coal power plants in the world, with over 2,100 GWs of capacity.  These plants generate about 10 gigatons of CO2 emissions  per year, nearly 30% of the global total. Credit: Bigstock

By Philippe Benoit and Chandra Shekhar Sinha
WASHINGTON DC, Nov 2 2022 (IPS)

Report after report highlights that we can only achieve the greenhouse gas (GHG) emission reductions required by the climate goals of the Paris Agreement if much of the existing coal power generation capacity is retired early.  To this end, one concept that deserves greater consideration is conducting an auction for early retirement of coal power plants worldwide: a global coal retirement auction. This article sets out the broad outlines of how this global auction might operate.

The International Energy Agency (IEA) has estimated that there are over 8,500 coal power plants in the world, with over 2,100 GWs of capacity.  Although these plants are concentrated in a limited number of countries (notably China, followed by India and the U.S.), there are coal plants running in over 100 countries with over 2,000 owners.

These plants generate about 10 gigatons of CO2 emissions  per year, nearly 30% of the global total.  This  level of emissions from coal is incompatible with either the “well below 2oC” or the more ambitious ”1.5oC” temperature targets set out in the Paris Agreement.

Accordingly, climate/development organizations, like the Asian Development Bank (ADB), the World Bank, the IEA and RMI, are exploring programs to effect the early retirement of these coal plants.

The International Energy Agency has estimated that there are over 8,500 coal power plants in the world, with over 2,100 GWs of capacity.  Although these plants are concentrated in a limited number of countries (notably China, followed by India and the U.S.), there are coal plants running in over 100 countries with over 2,000 owners

But closing these plants presents two important challenges.  First, retiring these plants removes electricity production that many countries rely upon for their economic development … production that would need to be replaced with preferably low-carbon sources.  Second, owners are generally unwilling to shutter revenue-generating plants and want financial compensation for the returns they would forego from the premature retirement of their asset.  This article addresses this second constraint.

There are various regulatory mechanisms that can be used to push early retirement, such as mandating closure of plants or imposing a carbon tax or other cost that makes operating the plant uneconomic.

A completely different tack is to entice closures by paying the owners to do so.  This is the premise of, for example, the ADB’s innovative Energy Transition Mechanism.

But what’s a fair price? Perhaps, however, that’s not the right question. Rather, at what price are the owners willing to shutter their plants? Given that there are more than 8,500 coal power plants operating with different technical and revenue characteristics, and over 2,000 plant owners in diverse financial situations following distinctive corporate strategies (including numerous state-owned enterprises), the answer will vary.

A technique that has been used in this type of context of multiple actors is an “auction”. While in the traditional context, a seller looks to get the highest price from multiple possible buyers through an auction, in this case, we have a buyer that is interested in paying the lowest price to different plant owners (i.e., the sellers) for the retirement of their coal plants.

This is referred to as a “reverse auction”.  This tool has been used to acquire new power production, including renewables, at low prices, and specifically in the climate context to attract cost-effective investments that reduce methane emissions.

The reverse auction mechanism could be used to solicit proposals from coal power plant owners as to the price at which they would be willing to close their plant.  Conceptually, this could be done on the basis of MWs of installed power generation capacity. Under the auction, an interested coal plant owner would offer to sell — more specifically, to shutter — their MWs of plant capacity by a fixed time at a proposed price.

Importantly, the climate benefit sought by the auction is not from the decommissioning of MWs of capacity itself, but rather from the GHG emissions that would be avoided by retiring that capacity. Accordingly, for any coal retirement tender, it will be necessary to estimate the level of emissions that would be avoided.

This determination will be based on several factors, including the particular plant’s efficiency, remaining operational life and other technical characteristics, the type of coal used, and the amount of electricity production projected to be foregone through early retirement given the power system’s expected demand for electricity from that plant.

Tenders should include sufficient information to evaluate these items and, by extension, the level of avoided emissions and related climate benefit to be produced from the proposed retirement. This, in turn, will drive how much the auction buyer should be willing to pay for the tender.

Moreover, because it would be largely counter-productive from a climate perspective to pay to retire existing coal plants to see that money used directly (or indirectly) to build new fossil fuel generation, the tender by the plant owner would need to be accompanied by an undertaking not to reinvest in new fossil fuel generation.

As has been repeatedly explained, CO2 emissions have a global impact that is essentially unaffected by the geographic location of the emitting plant. Given this global nature of emissions, the auction would likewise be conducted at a worldwide level as a global auction.  From India to Indonesia, from South Africa to South Korea, from Poland to Australia, any plant anywhere would be eligible to participate in the global auction.

Given this scope, an international organization like the United Nations or a multilateral development bank would be well positioned to provide the platform for this auction.  One could imagine a system where the auction bidding process sets out eligibility criteria for projects, the methodology for estimating GHG emission reductions, and other key bid-submission parameters.

Significantly, while the bidding process would be managed on an integrated basis, the funding and selection of winners need not be. Rather, a system that allows for the matching of interested coal retirement buyers with individual plant owners could be used.

For example, buyers and their funding could be mobilized on a plant-by-plant basis based on information submitted by the plant owner through the auction process.  Indeed, many potential funders have areas of focus that could lead them to be attracted to retiring coal assets only in certain countries (e.g., funders interested in a targeted set of developing countries).  The proposed auction structure could accommodate these preferences. Moreover, the global auction could also operate in association with country-specific approaches.

One potential source of funding for coal retirements tendered under the auction is the potentially large amounts of capital to be mobilized through expanded carbon credit mechanisms under development. Tapping into these mechanisms might require establishing defined project eligibility criteria, frameworks for calculating GHG emissions reductions, and associated monitoring and verification systems to enable payments for emission reductions at the time of decommissioning based on a price for emission reduction (“carbon”) credits.

It is also important to recall the first constraint noted earlier, namely that countries, and particularly developing countries, will need more electricity to power further economic and social development.  Accordingly, any global auction to retire coal plants needs to be coupled with a program to fund new renewables electricity generation.

Climate change is a global challenge affected by GHG emissions from anywhere.  We need to reduce emissions from coal power generation and that requires some program to encourage and entice owners to shutter their plants.  A global auction, conducted by the United Nations or a similar international organization, would help to identify opportunities where willing plant owners and interested funders can make a deal.

 

Philippe Benoit has over 20 years working on international energy, finance and development issues, including management positions at the World Bank and the International Energy Agency. He is currently research director at Global Infrastructure Analytics and Sustainability 2050.

Chandra Shekhar Sinha is an Adviser in the Climate Change Group at the World Bank and works on climate and carbon finance. He previously worked at JPMorgan, TERI-India, UNDP, and the Kennedy School of Government at Harvard University.

Categories: Africa

A Beacon of Light in Dark Times: the Dublin Platform for Human Rights Defenders

Africa - INTER PRESS SERVICE - Wed, 11/02/2022 - 09:56

Human rights defenders from Latin America join Front Line Defenders staff and UN Special Rapporteur Mary Lawlor during a candlelight vigil at the Human Rights Defender Memorial monument in Iveagh Gardens, Dublin, on 27 October 2022. Credit: Alex Zaradov for Front Line Defenders

By Andrew Anderson
DUBLIN, Ireland, Nov 2 2022 (IPS)

Before she was murdered in Honduras in 2016, the Lenca Indigenous woman and human rights defender Berta Cáceres poignantly said: “They are afraid of us because we are not afraid of them.”

It is a measure of the continued effectiveness of human rights defenders around the world that autocrats, bigots and powerful economic interests continue to invest significant resources to try and silence them or disrupt their work.

Sophisticated surveillance, brutal violence, expensive smear campaigns, significant time and energy from security services and police forces, endless judicial proceedings, new restrictive laws – the efforts of the oppressors pay a kind of tribute to the courage, tenacity and impact of human rights defenders.

Whilst human rights academics debate the relevance of a weakened UN system, the reality on the ground, in countless countries across all regions, is that communities continue to mobilize around a struggle framed in rights.

Sudan’s revolution united under the banner of “freedom, peace and justice,” while “women, life, freedom,” has become the slogan of the protests in Iran. And as Sonia Guajajara, head of the Articulation of Indigenous Peoples of Brazil (ABIP), said at the UN Climate Conference, “if there is no protection of indigenous territories and rights, there will also be no solution to the climate crisis, because we are part of that solution.”

The human rights defenders we work with every day at Front Line Defenders are an inspiration to all of us.

Liah Ghazanfar Jawad continues to work to support women and women’s rights in Afghanistan under brutal Taliban rule even though she has the option to be with her family outside the country.

Andrew Anderson, Executive Director of Front Line Defenders opens the Dublin Platform at Dublin Castle on 26 October 2022. Credit: Kamil Krawczak for Front Line Defenders

Obert Masaraure and Robson Chere of the Amalgamated Rural Teachers Union of Zimbabwe choose to continue their struggle even as they are detained, ill-treated and released. And many human rights defenders continue, in spite of the bombings and missile strikes, to document war crimes and provide support to victims in Ukraine.

As Diana Berg, artist and human rights defender from Donetsk, told a packed conference room in Dublin, Ireland last week, “until I get killed by a Russian Iranian drone I will help survivors [and] deported teenagers and [help to] evacuate museums.”

The first Dublin Platform for Human Rights Defenders took place just over 20 years ago in January 2002. Our visionary founder, Mary Lawlor – now the UN Special Rapporteur on Human Rights Defenders – was determined that the organization would be driven by the needs expressed by defenders themselves. With a tiny team she worked wonders to bring over 100 human rights defenders to that launch of Front Line Defenders.

Two decades later, providing rapid and practical support for the protection of human rights defenders at a global level remains the core focus of the organization’s work. In 2021, for the first time we provided more than 1,000 grants to human rights defenders in 105 countries.

We are committed to the struggle. Our work is built on our profound respect for human rights defenders; for their work, their courage and their knowledge. We stand with them, and will provide support in every way that we can.

At the recently finished 11th Dublin Platform, we convened more than 100 at-risk human rights defenders from scores of countries for three days in iconic Dublin Castle. Among many other issues, we discussed how authoritarian regimes use counter-terrorism and security laws to target human rights defenders, the backlash against feminists and LGBTIQ+ human rights defenders, and the role of human rights defenders in the context of protests and social movements.

As we gathered in Dublin, we were acutely aware of those human rights defenders who were not with us. In 2016 we helped to set up a HRD Memorial Project to gather information on the cases of defenders who are targeted and killed because of their human rights work; to illustrate the scale of the phenomenon, to emphasize the systematic nature of these attacks, and to provide a space to pay tribute.

Following on from this, we worked with the Irish Department of Foreign Affairs to create a HRD Memorial monument in Dublin – a unique space where we recently held a poignant candlelight vigil to commemorate the hundreds of human rights defenders who have been killed while carrying out their peaceful work.

There are also many human rights defenders we would like to have welcomed to Dublin but whose governments prevented them from being there. These include long-term imprisoned human rights defenders such as Narges Mohhamadi in Iran, Dawit Isaac in Eritrea, Maria Rabkova in Belarus, Trần Huỳnh Duy Thức in Vietnam, Pablo López Alavez in Mexico and Ilham Tohti in China.

In particular I want to highlight my friend and former colleague Abdulhadi Al-Khawaja, who was abducted, tortured and sentenced to life in prison after a sham trial over 11 years ago. We continue to work for Abdulhadi’s release and for the release of all human rights defenders who are in prison.

The Iranian woman human rights defender Atena Daemi – also unable to be with us in Dublin because of the ongoing protests in Iran – nonetheless shared a powerful message about her motivation in dark times: “Humanity is our common love and fight. Human rights is the goal of all of us. It is the ultimate human joy and freedom and happiness.”

Such strength of conviction is what motivates us at Front Line Defenders to continue to protect and support human rights defenders worldwide and stand with them in their struggle against oppression.

Andrew Anderson is Executive Director of Front Line Defenders

IPS UN Bureau

 


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Categories: Africa

Tackling Recurring Hunger Crises at the Horn of Africa – Beginning with Somalia

Africa - INTER PRESS SERVICE - Wed, 11/02/2022 - 09:53

Urgent immediate actions must be taken now, both to address the crisis in the short-term and long-term. Credit: James Jeffrey/IPS

By Esther Ngumbi
URBANA, Illinois, USA, Nov 2 2022 (IPS)

The statistics are stark. The crisis is unprecedented. Yet again, according to the United Nations, famine looms in Somalia, with hundreds of thousands already facing starvation. In addition, droughts, and catastrophic hunger levels have left over 500,000 children malnourished and at risk of dying. This is already nearly 200,000 more than the 2011 famine. Urgent immediate actions must be taken now, both to address the crisis in the short-term and long-term.

Circumstances have been building up for the last four years to create this current crisis. Rainy seasons have failed for the last four years which has left many farmers without livestock or crops. Further, compounding the impact is the fact that the drought has coincided with a global rise in food, fuel, and fertilizer prices, the Ukrainian war, and the COVID-19 global pandemic.

The future isn’t promising either. According to the World Meteorological Organization, the forecasts reveal high chances of drier-than-average conditions in the horn of Africa. Other issues that are likely to persist in the future include food crises, civil war, and political instability.

Fixing the hunger crisis at the horn of Africa will require much more than emergency aid. Stakeholders must also roll out long-term solutions. For each dollar spent on humanitarian aid, 50 cents should go to long term solutions

Not only can the famine lead to untimely deaths, but hunger can affect people in other ways, particularly children. A recent systematic review and meta-analysis demonstrated that malnutrition was linked with cognitive development. In Ethiopia, a recent systematic review and meta-analysis demonstrated that malnutrition affected the academic performance of elementary school children. Another review also linked malnutrition with impaired brain development.

In a study that compared children of average nutrition with their malnourished peers, it was shown that malnourished children had lower IQs, lower school performance and  less cognitive functioning. Left unchecked, malnutrition can be far-reaching and have a devastating and incalculable impact on children’s future potential.

 

What can be done differently now and in the coming years?

Immediately, there is need for humanitarian aid. Thankfully, organizations including the UN World Food Programme (UN-WFP), UNICEF and other NGOs are doing everything they can to provide food to the people that are suffering the most. UN-WFP, for example is delivering life-saving food and cash assistance.  UNICEF is delivering ready-to-use therapeutic foods to treat children with severe acute malnutrition. It has also deployed mobile teams to find and treat children with severe malnutrition.

But, as we have repeatedly seen, providing aid is like putting on a band-aid. It is a temporary fix. Often, the international community and stakeholders react to crises in this way. After many years- it should be clear that short fixes in the form of humanitarian aid, including bursts of cash and food assistance to those most affected, are unsustainable.

Clearly, given how often drought and famine are issues, fixing the hunger crisis at the horn of Africa will require much more than emergency aid. Stakeholders must also roll out long-term solutions. For each dollar spent on humanitarian aid, 50 cents should go to long term solutions. For example, the UNICEF appeals for US$222.3 million dollars to provide humanitarian services to 2.5 million people in Somalia. Out of the entire amount, half of that should go to long-term projects that solve the root causes of hunger.

Undoubtedly, droughts are recurrent because of failed rainy seasons. There is need to roll out water projects to meet the water needs of growing crops for food for the impacted communities and their livestock. It is a no brainer. Just like the gas stations in America and other developed nations are present in every corner, there should be water stations every 10 or 20 miles.

This would be water sourced from aquifers and underground sources. Half of the funds received by the UN agencies, for example, could go towards actualizing this bold effort of drilling these water stations across Somalia. For example, out of the $222.3 million UNICEF is asking for, $111, should go to drilling water in Somalia.

With water, Somalia and other African countries that consistently are impacted by recurrent droughts, can diversify the crops they produce. More importantly, they can be able to implement climate smart practices and other local solutions.

Simultaneously, as water projects are rolled out, African countries including Somalia need to have clear, systematic, and holistic plans of how to solve climate linked extremes including drought, extreme temperatures, frequent insect outbreaks that are inextricably linked.

Planning should go hand in hand with strong documentation of what was done, how it was done, and how successful or unsuccessful it was in solving the crisis. At the moment, Somalia and other African countries lack accountability and transparency about what initiatives and strategies are implemented following early warnings. We will never make headways into solving these recurring crises, if we are not documenting what has been done, what worked and what failed.

Importantly, like any other crises, there is need to keep thinking of new solutions to roll out. As such, think tanks – that draw from in-country experts, diaspora, public, private, NGO and other stakeholder coalitions – need to research concrete strategies that can be implemented, tracked, and scaled.

We must invest in long-term solutions if we are to solve once and for all the recurrent drought, hunger and famines in Somalia and other African countries. Investing in long-term initiatives will not only solve hunger, but it will also reignite sustainable development and bring prosperity to communities. It is a win for all.

Dr. Esther Ngumbi is an Assistant Professor at the University of Illinois at Urbana Champaign, and a Senior Food Security Fellow with the Aspen Institute, New Voices.

Categories: Africa

T20 World Cup: Max O'Dowd hits half-century as Netherlands beat Zimbabwe

BBC Africa - Wed, 11/02/2022 - 09:32
Zimbabwe are all but eliminated the Men's T20 World Cup after a five-wicket defeat by the Netherlands in Adelaide.
Categories: Africa

Mexican Environmental Prosecutor’s Office Dodges Charges against Mayan Train

Africa - INTER PRESS SERVICE - Wed, 11/02/2022 - 08:32

The laying of the Mayan Train along 1500 kilometers through five states in the south and southeast of Mexico, mostly through the Yucatan Peninsula, will damage the fragile jungle ecosystem, with the removal of vegetation and animal species. The photo shows an area cleared of vegetation near the municipality of Valladolid, in the state of Yucatan. CREDIT: Emilio Godoy/IPS

By Emilio Godoy
MEXICO CITY, Nov 2 2022 (IPS)

A beige line slashes its way through the Mayan jungle near the municipality of Izamal in the southeastern Mexican state of Yucatán. It is section 3, 172 kilometers long, of the Mayan Train (TM), the most important megaproject of President Andrés Manuel López Obrador’s administration.

The metal scrape of the backhoes tears up the vegetation to open up arteries in the jungle for the laying and construction of the five stops of this part of the future railway network, which is being built at a cost currently estimated at more than 15 billion dollars, 70 percent more than initially planned."Everything that is happening in the Yucatán peninsula is affecting the Mayan people, damaging the trees, the water, the animals. It is a part of our territory that is being destroyed. Those who don't produce their own food have to depend on others." -- Pedro Uc

Pedro Uc, an indigenous member of the non-governmental Assembly of Defenders of the Múuch’ Xíinbal Mayan Territory, summed up the environmental impact of the TM in an area of milpa – a traditional system of cultivation of corn, squash, beans and chili peppers – and poultry farming.

“Everything that is happening in the Yucatán peninsula is affecting the Mayan people, damaging the trees, the water, the animals. It is a part of our territory that is being destroyed. Those who don’t produce their own food have to depend on others,” he told IPS from Buctzotz (Mayan for “hair dress”), in Yucatán, some 1,400 km from Mexico City.

Without land, there is no food, stressed the activist, whose organization works in 25 municipalities on the peninsula, which includes the states of Campeche, Quintana Roo and Yucatán, and is home to the second most important jungle massif in Latin America, after the Amazon.

Despite multiple complaints of environmental damage, the Federal Attorney’s Office for Environmental Protection (Profepa) has yet to resolve these complaints, more than two years after construction began.

“It has never carried out its role. It has not addressed the issue, it is merely ornamental. Profepa should attend to the complaints,” said Uc, whose town is located 44 kilometers southeast of Izamal, where one of the railroad stations will be located.

Profepa, part of the Ministry of the Environment and Natural Resources (Semarnat), received two complaints in 2020, one in 2021 and 159 in the first five months of this year for “acts or omissions in contravention of environmental laws,” according to public information requests submitted by IPS.

Profepa oversees the megaproject through its “Mayan Train Inspection Program, in the areas of environmental impact, forestry, wildlife and sources of pollution”, the results of which are unknown.

In December last year, the agency carried out an inspection of hazardous waste generation and management in the southern state of Chiapas, which, together with the states of Campeche, Quintana Roo, Tabasco and Yucatán, is part of the route for the railway.

In addition, in June and July, two other visits were made to verify measures to mitigate pollutant emissions and waste management. Profepa is still analyzing the results of these visits.

The environmental prosecutor’s office has carried out exploratory visits in nine municipalities of section 2, eight of section 4 and 16 of section 5. The laying of lines 6 and 7 began last April, but the agency has not yet inspected them. The megaproject consists of a total of seven sections, which are being built in parallel.

The TM, to be built by the governmental National Tourism Fund (Fonatur), will cover some 1,500 kilometers, with 21 stations and 14 stops, according to López Obrador, who is heavily involved in the project and is its biggest supporter.

To lay the railway, whose trains will transport thousands of tourists and loads of cargo, such as transgenic soybeans, palm oil and pork, 1,681 hectares of land will be cleared, involving the cutting of 300,000 trees, according to the original environmental impact study. The laying of sections 1, 2 and 3, which require 801 hectares, began without environmental permits.

The government sees the megaproject as an engine of social development that will create jobs, boost tourism beyond the traditional tourist attractions and bolster the regional economy, which has sparked controversy between its supporters and critics.

The construction of the Mayan Train has involved logging in several jungle areas in southeastern Mexico. The photo shows a breach opened by a backhoe on the outskirts of Playa del Carmen, in the state of Quintana Roo, in March 2022, without the required intervention by the environmental prosecutor’s office. CREDIT: Emilio Godoy/IPS

Free way

In November of last year, López Obrador, who wants trains running on the peninsula by the end of 2023, classified the TM as a “priority project” by means of a presidential decree, thus facilitating the delivery of environmental permits. On Oct. 25 the president promised that the test runs would begin next July.

This classification reduces Profepa’s maneuvering room, according to Carlos del Razo, a lawyer specializing in environmental cases, of the law firm Carvajal y Machado.

“Some of the early complaints could be filed for works where permit exemptions were issued because they were done on existing rights-of-way. But if it decides not to act, it has to argue that decision. The environmental prosecutor’s office will not have a particular interest in approving government works,” he told IPS.

In its authorizations, Semarnat ruled that Fonatur must implement programs for integrated waste management, soil conservation and reforestation, air quality monitoring, flora management and rescue and relocation of wildlife.

Profepa must supervise that these measures comply with the General Law of Ecological Balance and Environmental Protection, in force since 1988 and which environmentalists say has been violated.

López Obrador denies that there is deforestation, and promised the construction of three natural parks in eastern Quintana Roo and the reforestation of some 2,500 hectares in the vicinity of the railroad route.

In a tacit acknowledgement of logging in the project area, the Ministry of National Defense will plant trees, at a cost of 35 million dollars, according to an agreement between Fonatur and the ministry contained in the massive leak of military emails made by the non-governmental group Guacamaya and consulted by IPS.

Viridiana Mendoza, Agriculture and Climate Change specialist for Greenpeace Mexico, criticized “the lack of action” by Profepa.

“They had already deforested without an environmental impact assessment, which is a crime. We are not surprised, because it is part of the dynamic that has characterized the Mayan Train: illegalities, omissions, false information, violation of procedures. There is a conflict of interest because Profepa answers to Semarnat,” she said.

The international non-governmental organization has found “insufficient, false and inaccurate” information on sections 5, 6 and 7, so it is not possible to assess the dangers and damage to local populations and ecosystems.

Parts of the jungle of the Yucatan peninsula, in southeastern Mexico, have been cut down to make way for the construction of the Mayan Train. But the environmental prosecutor’s office, failing to comply with its legal duty, has turned a deaf ear to complaints of alleged ecological crimes. CREDIT: Guacamaya Leaks

Risks

The project is a paradox, because while the government promises sustainable tourism in other areas of the peninsula, it threatens the very attractions of this influx of visitors, such as the cenotes – deep, water-filled sinkholes formed in limestone – cave systems and the entire ecosystem in general.

The TM endangers the largest system of underground and flooded grottoes on the planet, a complex of submerged caves beneath the limestone terrain.

The porous (karst) soil of the peninsula sabotages the government’s plans, as it has forced Fonatur to change the route of the megaproject several times. For example, section 5 has experienced three modifications between 2021 and January 2022.

Faced with the wave of impacts, the last hope lies in organization by local residents, according to the Mayan activist Uc.

“Between the possible and the impossible, we inform people so that in their own community, they can make the decision they want to make. People do not have the necessary information. Let them take up the struggle from their own communities and make the decisions about what comes next,” he said.

But attorney Del Razo and environmentalist Mendoza said the courts are the last resort.

“The judiciary continues to be the most independent branch of power in Mexico. Interested parties could seek injunctions that order Profepa to correct the process. A strategy of specific details is needed to demonstrate the infractions. The effective thing is to go into the details of the challenges,” explained Del Razo.

Mendoza said there is a lack of access to information, respect for public participation and environmental justice.

“Profepa should have stopped the works for the simple fact of not having the environmental authorization when the removal of vegetation began,” she said. “We don’t see it as likely that it will seek to stop the construction, because we have seen its reaction before. Semarnat supports the project, regardless of the fact that it has failed to comply and is in contradiction with the laws.”

While its opponents seek to take legal action, the TM runs roughshod over all obstacles, which are dodged with the help of the Environmental Prosecutor’s Office, at least until now.

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Oil Exporters Make Markets, Not War

Africa - INTER PRESS SERVICE - Tue, 11/01/2022 - 17:45

View of the bulk fuel plant in Dhahran, Saudi Arabia. Because the kingdom needs oil prices to remain high to balance its budget, it pushed OPEC and its allies to decide on a production cut as of Nov. 1. CREDIT: Aramco

By Humberto Márquez
CARACAS, Nov 1 2022 (IPS)

The decision to cut oil production by the Organization of Petroleum Exporting Countries (OPEC) and its allies as of Nov. 1 comes in response to the need to face a shrinking market, although it also forms part of the current clash between Russia and the West.

The OPEC+ alliance (the 13 members of the organization and 10 allied exporters) decided to remove two million barrels per day from the market, in a world that consumes 100 million barrels per day. The decision was driven by the two largest producers, Saudi Arabia – OPEC’s de facto leader – and Russia.

The cutback “is due to economic reasons, because Saudi Arabia depends on relatively high oil prices to keep its budget balanced, so it is important for Riyadh that the price of the barrel does not fall below 80 dollars,” Daniela Stevens, director of energy at the Inter-American Dialogue think tank, told IPS.

The benchmark prices at the end of October were 94.14 dollars per barrel for Brent North Sea crude in the London market and 88.38 dollars for West Texas Intermediate in New York."Notwithstanding Mohammed bin Salman's sympathy for Putin, the cut was due to his concern about the balance of the world oil market, and not to support Russia." -- Elie Habalián

“At the time of the cutback decision (Oct. 5) oil prices had fallen 40 percent since March, and the OPEC+ countries feared that the projected slowdown in the global economy – and with it demand for oil – would drastically reduce their revenues,” Stevens said.

With the cut, “OPEC+ hopes to keep Brent prices above 90 dollars per barrel,” which remains to be seen “since due to the lack of investment the real cuts will be between 0.6 and 1.1 million barrels per day and not the more striking two million,” added Stevens from her institution’s headquarters in Washington.

A month ago, the alliance set a joint production ceiling of 43.85 million barrels per day, not including Venezuela, Iran and Libya (OPEC partners exempted due to their respective crises), which would allow them to deliver 48.23 million barrels per day to the market.

But market operators estimate that they are currently producing between 3.5 and five million barrels per day below the maximum level considered.

The alliance is made up of the 13 OPEC partners: Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, United Arab Emirates and Venezuela, plus Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan and South Sudan.

The giants of the alliance are Saudi Arabia and Russia, which produce 11 million barrels per day each, followed at a distance by Iraq (4.65 million), United Arab Emirates (3.18), Kuwait (2.80) and Iran (2.56 million).

In July, U.S. President Joe Biden met with Saudi Crown Prince Mohammed bin Salman, with whom he discussed human rights and abundant oil supplies for the global market. A few months later Riyadh led the decision for an oil cut that has been seen as a betrayal by Washington. CREDIT: Bandar Algaloud/SRP

United States takes the hit

U.S. President Joe Biden was “disappointed by the shortsighted decision by OPEC+ to cut production quotas while the global economy is dealing with the continued negative impact of (Russian President Vladimir) Putin’s invasion of Ukraine,” a White House statement said.

The price of gasoline in the United States has soared from 2.40 dollars a gallon in early 2021 to the current average of 3.83 dollars – after peaking at five dollars in June – a heavy burden for Biden and his Democratic Party in the face of the Nov. 8 mid-term elections for Congress.

Biden visited Saudi Arabia in July, while the press reminded the public that during his 2020 election campaign he talked about making the Arab country “a pariah” because of its leaders’ responsibility for the October 2018 murder in Istanbul of prominent opposition journalist in exile Jamal Khashoggi.

The U.S. president said he made clear to the powerful Saudi Crown Prince Mohammed bin Salman his conviction that he was responsible for the crime. But the thrust of his visit was to urge the kingdom to keep the taps wide open to contain crude oil and gasoline prices.

Hence the U.S. disappointment with the production cut promoted by Riyadh – double the million barrels per day predicted by market analysts – which, by propping up prices, favors Russia’s revenues, which has had to place in Asia, at a discount, the oil that Europe is no longer buying from it.

Biden then announced the release of 15 million barrels of oil from the U.S. strategic reserve – which totaled more than 600 million barrels in 2021 and just 405 million this October – completing the release of 180 million barrels authorized by Biden in March, following the Russian invasion of Ukraine, that was initially supposed to occur over six months.

Saudi Crown Prince Mohammed bin Salman and President Vladimir Putin chat cordially during a visit by the Russian leader to Riyadh in October 2019. The two major oil exporters lead the 23-state alliance that upholds production cuts to prop up prices. CREDIT: SPA

Shift in Washington-Riyadh relations

Karen Young, a senior research scholar at the Center on Global Energy Policy at Columbia University in New York, wrote that “oil politics are entering a new phase as the U.S.-Saudi relationship descends.”

“Both countries are now directly involved in each other’s domestic politics, which has not been the case in most of the 80-year bilateral relationship,” she wrote.

“….(M)arkets had anticipated a cut of about half that much. Whether the decision to announce a larger cut was hasty or politically motivated by Saudi political leadership (rather than technical advice) is not clear,” she added.

Saudi leaders could apparently see Biden as pandering to Iran, its archenemy in the Gulf area, with positions adverse to Riyadh’s in the conflict in neighboring Yemen, and would resent the accusation against the crown prince for the murder of Khashoggi.

Young argued that “the accusation that Saudi Arabia has weaponized oil to aid Russian President Vladimir Putin is extreme,” and said “The Saudi leadership may assume that keeping Putin in the OPEC+ tent is more valuable than trying to influence oil markets without him.”

Gasoline prices in the United States, while down from their June level of five dollars per gallon, are still at a high level for many consumers ahead of the upcoming midterm elections. CREDIT: Humberto Márquez/IPS

More market, less war

OPEC’s secretary general since August, Haitham Al Ghais of Kuwait, said on Oct. 7 that “Russia’s membership in OPEC+ is vital for the success of the agreement…Russia is a big, main and highly influential player in the world energy map.”

Writing for the specialized financial magazine Barron’s, Young stated that “What is certainly true is that energy markets are now highly politicized.”

“The United States is now an advocate of market manipulation, asking for favors from the world’s essential swing producer, advocating price caps on Russian crude exports and embargoes in Europe,” Young wrote.

For its part, the Saudi Foreign Ministry rejected as “not based on facts” the criticism of the OPEC+ decision, and said that Washington’s request to delay the cut by one month (until after the November elections, as the Biden administration supposedly requested) “would have had negative economic consequences.”

In its most recent monthly market analysis, OPEC noted that “The world economy has entered into a time of heightened uncertainty and rising challenges, amid ongoing high inflation levels, monetary tightening by major central banks, high sovereign debt levels in many regions as well as ongoing supply issues.”

It also mentioned geopolitical risks and the resurgence of China’s COVID-19 containment measures.

The two million barrel cut was decided “In light of the uncertainty that surrounds the global economic and oil market outlooks, and the need to enhance the long-term guidance for the oil market,” said the OPEC+ alliance’s statement following its Oct. 5 meeting.

Oil analyst Elie Habalian, who was Venezuela’s governor to OPEC, also opined that “notwithstanding Mohammed bin Salman’s sympathy for Putin, the cut was due to his concern about the balance of the world oil market, and not to support Russia.”

Latin America, pros and cons

Stevens said the oil outlook that opens up this November will mean, for importers in the region, that their fuels will be more expensive but probably not by a significant amount, and net importers in Central America and the Caribbean will be the hardest hit.

Exporters will benefit from higher prices. Brazil and Mexico have already increased their exports of fuel oil, and Argentina and Colombia have hiked their exports of crude oil. And higher prices would particularly benefit Brazil and Guyana, which are boosting their production capacity.

Argentina could have benefited if it had begun to invest in production years ago, but its financial instability left it with little capacity to take advantage of this moment. And Venezuela not only faces sanctions, but upgrading its worn-out oil infrastructure would require investments and time that it does not have.

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COP27 Climate Summit is an Opportunity to Promote Peace

Africa - INTER PRESS SERVICE - Tue, 11/01/2022 - 09:24

Youth activists sit in the street as a form of strike in solidarity with the Global Climate Strike in Bangladesh. Credit: UNICEF/Jannatul Mawa

By Stefan Löfven and Christoph Heusgen
STOCKHOLM / MUNICH, Nov 1 2022 (IPS)

Peace is precious. The past few months have offered daily reminders of this simple fact. War in Ukraine. Russian and North Korean nuclear threats. Growing tensions over Taiwan. Huge population displacements. Energy crisis. Economic turmoil. Rising global hunger and inequality.

To prevent this from becoming the new normal, world leaders need to take radical, courageous action, together. The upcoming climate summit in Sharm El-Sheikh, COP27, is one of the places where this needs to happen.

Climate change threatens peace and security

Scratch beneath the surface of the disparate set of crises that confront us in 2022, and the links to climate change, and to climate action, are plain to see.

Europe’s continued reliance on fossil energy has complicated its response to the Russian invasion of Ukraine and pushed the continent into an unprecedented energy crisis, threatening to spiral into an economic recession. It has also left Europe’s political leaders struggling to mitigate the impacts on their populations.

European countries’ race to secure new sources of fossil energy poses new geopolitical risks and can lock countries into new supply contracts and commitments that will make net zero targets even harder to achieve.

Climate change and conflict are the chief reasons why global hunger is rising. This year some 345 million people today face acute food insecurity, almost three times as many as in 2019—a shocking increase exacerbated by extreme weather events, the Covid-19 pandemic and the war in Ukraine.

Put simply, the state of security and the state of the environment are today intimately linked. Harm one, harm the other; heal one, heal the other.

This is a truth world leaders should take with them to the COP27 climate summit.

Keep peace and security in focus at COP27

All of the possible paths back to peace and environmental sustainability depend on cooperation. Negotiations at Sharm El-Sheikh must therefore focus on seeking common ground, removing roadblocks and enabling progress in international climate cooperation; ramping up ambition rather than watering it down.

In the words of UN Secretary-General António Guterres, ‘We have a choice. Collective action or collective suicide.’

Peace and security should be in every discussion at COP27. This should motivate faster and deeper cuts in carbon emissions. States should recognize that phasing out fossil fuels can increase both energy security and human security overall.

At the same time, they must discuss how to avoid creating new security risks in the process: how to ease the transition for developing countries highly dependent on fossil fuel revenues.

How to make sure that the surging demand for renewable energy as well as for metals and minerals needed for green technologies does not lead to new conflicts, or increase inequality and corruption.

How to manage new critical dependencies emerging around minerals that are needed for the green energy transition.

At COP27, there will also be a focus on climate change adaptation: measures taken to adjust to new climatic conditions. Well-adapted communities and economies are more resilient to the impacts of climate change.

They are less likely to be destabilized by shortages, displacement and destitution. When communities are involved in adaptation planning and resource management, it can even help to resolve long-standing conflicts and increase trust in government authorities.

Boost climate finance

Climate finance—the funds richer countries provide to help vulnerable countries to respond to climate change—will also be a priority topic at COP27. This will be setting out how to ensure that rich countries’ governments deliver on their 2009 commitment of US$100 billion in climate finance per year, a goal which they should have already reached by 2020.

There will also be talks on a new climate finance target for post-2025. Seeing climate finance as an investment in peace and security should help persuade them to offer more, far beyond the original pledge, even during these hard economic times.

In particular, finance for adaptation projects needs to rise sharply. The amounts available fall far behind what the most vulnerable countries need, creating wholly avoidable risks to peace and security. But any increase should not come at the expense of mitigation or development assistance.

There is also the difficult question of loss and damage compensation—finance to help countries deal with the impacts of climate change that cannot be adapted to. States must try to resolve the strong differences that have blocked progress to date, so that funds can start flowing.

The damage countries and communities are suffering is real, and every delay increases the chance that it will erode peace, security and trust.

Finally, ways need to be found to get climate finance to countries that are fragile because of an active or recent armed conflict. These countries today receive only a fraction of what others do, even though these are precisely the countries where climate change has the greatest potential to undermine peace.

Exceed expectations

There are limits to how much of this can be achieved in Sharm El-Sheikh. States will need to carry on the work after the summit, individually and collaboratively, drawing in the private sector, civil society and communities.

Significant progress can be made at COP27, if governments show commitment. Besides the action it enables, a COP that exceeds expectations would send important signals to states, publics and markets that world leaders are serious about safeguarding the future.

Stefan Löfven was Prime Minister of Sweden from 2014 to 2019. Since June 2022 he has been Chair of the Stockholm International Peace Research Institute (SIPRI). He also co-leads the United Nations High-level Advisory Board on Effective Multilateralism.

Ambassador Christoph Heusgen has been Chairman of the Munich Security Conference (MSC) since 2022 and was Permanent Representative of Germany to the United Nations between 2017 and 2021. Prior to this appointment and since 2005, Heusgen was the Foreign Policy and Security Adviser to Federal Chancellor Angela Merkel.

Footnote: The 27th Conference (COP27) of the Parties to the United Nations Framework Convention on Climate Change (UNFCC) will take place from 6 to 18 November 2022. Heads of State, ministers and negotiators, along with climate activists, mayors, civil society representatives and CEOs will meet in the Egyptian coastal city of Sharm el-Sheikh for the largest annual gathering on climate action.

IPS UN Bureau

 


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Categories: Africa

Developing Countries Need Monetary Financing

Africa - INTER PRESS SERVICE - Tue, 11/01/2022 - 09:05

By Anis Chowdhury and Jomo Kwame Sundaram
SYDNEY and DAKAR, Nov 1 2022 (IPS)

Developing countries have long been told to avoid borrowing from central banks (CBs) to finance government spending. Many have even legislated against CB financing of fiscal expenditure.

Central bank fiscal financing
Such laws are supposedly needed to curb inflation – below 5%, if not 2% – to accelerate growth. These arrangements have also constrained a potential CB developmental role and government ability to respond better to crises.

Anis Chowdhury

Improved monetary-fiscal policy coordination is also needed to achieve desired structural transformation, especially in decarbonizing economies. But too many developing countries have tied their own hands with restrictive legislation.

A few have pragmatically suspended or otherwise circumvented such self-imposed prohibitions. This allowed them to borrow from CBs to finance pandemic relief and recovery packages.

Such recent changes have re-opened debates over the urgent need for counter-cyclical and developmental fiscal-monetary policy coordination.

Monetary financing rubbished
But financial interests claim this enables national CBs to finance government deficits, i.e., monetary financing (MF). MF is often blamed for enabling public debt, balance of payments deficits, and runaway inflation.

As William Easterly noted, “Fiscal deficits received much of the blame for the assorted economic ills that beset developing countries in the 1980s: over indebtedness and the debt crisis, high inflation, and poor investment performance and growth”.

Hence, calls for MF are typically met with scepticism, if not outright opposition. MF undermines central bank independence (CBI) – hence, the strict segregation of monetary from fiscal authorities – supposedly needed to prevent runaway inflation.

Jomo Kwame Sundaram

Recent International Monetary Fund (IMF) research insists MF “involves considerable risks”. But it acknowledges MF to cope with the pandemic did not jeopardize price stability. A Bank of International Settlements paper also found MF enabled developing countries to respond countercyclically to the pandemic.

Cases of MF leading to runaway inflation have been very exceptional, e.g., Bolivia in the 1980s or Zimbabwe in 2007-08. These were often associated with the breakdown of political and economic systems, as when the Soviet Union collapsed.

Bolivia suffered major external shocks. These included Volcker’s interest rate spikes in the early 1980s, much reduced access to international capital markets, and commodity price collapses. Political and economic conflicts in Bolivian society hardly helped.

Similarly, Zimbabwe’s hyperinflation was partly due to conflicts over land rights, worsened by government mismanagement of the economy and British-led Western efforts to undermine the Mugabe government.

Indian lessons
Former Reserve Bank of India Governor Y.V. Reddy noted fiscal-monetary coordination had “provided funds for development of industry, agriculture, housing, etc. through development financial institutions” besides enabling borrowing by state owned enterprises (SOEs) in the early decades.

For him, less satisfactory outcomes – e.g., continued “macro imbalances” and “automatic monetization of deficits” – were not due to “fiscal activism per se but the soft-budget constraint” of SOEs, and “persistent inadequate returns” on public investments.

Monetary policy is constrained by large and persistent fiscal deficits. For Reddy, “undoubtedly the nature of interaction between [fiscal and monetary policies] depends on country-specific situation”.

Reddy urged addressing monetary-fiscal policy coordination issues within a broad common macroeconomic framework. Several lessons can be drawn from Indian experience.

First, “there is no ideal level of fiscal deficit, and critical factors are: How is it financed and what is it used for?” There is no alternative to SOE efficiency and public investment project financial viability.

Second, “the management of public debt, in countries like India, plays a critical role in development of domestic financial markets and thus on conduct of monetary policy, especially for effective transmission”.

Third, “harmonious implementation of policies may require that one policy is not unduly burdening the other for too long”.

Lessons from China?
Zhou Xiaochuan, then People’s Bank of China (PBoC) Governor, emphasized CBs’ multiple responsibilities – including financial sector development and stability – in transition and developing economies.

China’s CB head noted, “monetary policy will undoubtedly be affected by balance of international payments and capital flows”. Hence, “macro-prudential and financial regulation are sensitive mandates” for CBs.

PBoC objectives – long mandated by the Chinese government – include maintaining price stability, boosting economic growth, promoting employment, and addressing balance of payments problems.

Multiple objectives have required more coordination and joint efforts with other government agencies and regulators. Therefore, “the PBoC … works closely with other government agencies”.

Zhou acknowledged, “striking the right balance between multiple objectives and the effectiveness of monetary policy is tricky”. By maintaining close ties with the government, the PBoC has facilitated needed reforms.

He also emphasized the need for policy flexibility as appropriate. “If the central bank only emphasized keeping inflation low and did not tolerate price changes during price reforms, it could have blocked the overall reform and transition”.

During the pandemic, the PBoC developed “structural monetary” policy tools, targeted to help Covid-hit sectors. Structural tools helped keep inter-bank liquidity ample, and supportive of credit growth.

More importantly, its targeted monetary policy tools were increasingly aligned with the government’s long-term strategic goals. These include supporting desired investments, e.g., in renewable energy, while preventing asset price bubbles and ‘overheating’.

In other words, the PBoC coordinates monetary policy with fiscal and industrial policies to achieve desired stable growth, thus boosting market confidence. As a result, inflation in China has remained subdued.

Consumer price inflation has averaged only 2.3% over the past 20 years, according to The Economist. Unlike global trends, China’s consumer price inflation fell to 2.5% in August, and rose to only 2.8% in September, despite its ‘zero-Covid’ policy and measures such as lockdowns.

Needed reforms
Effective fiscal-monetary policy coordination needs appropriate arrangements. An IMF working paper showed, “neither legal independence of central bank nor a balanced budget clause or a rule-based monetary policy framework … are enough to ensure effective monetary and fiscal policy coordination”.

Appropriate institutional and operational arrangements will depend on country-specific circumstances, e.g., level of development and depth of the financial sector, as noted by both Reddy and Zhou.

When the financial sector is shallow and countries need dynamic structural transformation, setting up independent fiscal and monetary authorities is likely to hinder, not improve stability and sustainable development.

Understanding each other’s objectives and operational procedures is crucial for setting up effective coordination mechanisms – at both policy formulation and implementation levels. Such an approach should better achieve the coordination and complementarity needed to mutually reinforce fiscal and monetary policies.

Coherent macroeconomic policies must support needed structural transformation. Without effective coordination between macroeconomic policies and sectoral strategies, MF may worsen payments imbalances and inflation. Macro-prudential regulations should also avoid adverse MF impacts on exchange rates and capital flows.

Poorly accountable governments often take advantage of real, exaggerated and imagined crises to pursue macroeconomic policies for regime survival, and to benefit cronies and financial supporters.

Undoubtedly, much better governance, transparency and accountability are needed to minimize both immediate and longer-term harm due to ‘leakages’ and abuses associated with increased government borrowing and spending.

Citizens and their political representatives must develop more effective means for ‘disciplining’ policy making and implementation. This is needed to ensure public support to create fiscal space for responsible counter-cyclical and development spending.

IPS UN Bureau

 


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Education Cannot Wait Director Calls on Donors to Expand Support for Successful Programme Bringing Girls and Boys Back to Learning in Post-Conflict Areas of the Democratic Republic of the Congo

Africa - INTER PRESS SERVICE - Tue, 11/01/2022 - 02:00

ECW director Yasmine Sherif announced US$2 million in new funding for children in the Democratic Republic of Congo. However, with conflicts, displacements, the climate crisis, COVID-19, and other epidemics such as Ebola disrupting development gains, as many as 3.2 million children (aged 6-11) are out of school, so even more funding is required. Credit: Armen Mahungu/IPS

By Alfred Ntumba
Kinshasa, Nov 1 2022 (IPS)

The Director of Education Cannot Wait (ECW), Yasmine Sherif, launched a strong call for public and private donors to step up funding, asking them to “show the same courage” she saw in the children she met during her week-long visit to the Democratic Republic of the Congo (DRC).

Years of conflict, the impact of climate change, epidemics – including outbreaks of Ebola, Cholera, and COVID-19 – and other crises, have taken a heavy toll on DRC’s young generation.  The country hosts the largest population of internally displaced persons in Africa. Nationwide, more than 3 million children between the ages of 6 and 11 are out of school, and less than one in ten children can read a simple sentence.

Sherif visited an ECW-funded programme in Tanganyika in the country’s southeast.  UNICEF implements the programme with the Congolese government, provincial authorities, and other key international and local implementing partners. While the programme launched at the end of June, it is already showing promise in a province where 62% of children are out-of-school and 60% of girls are married before the age of 18.

“We have seen the progress on the ground. This programme demonstrates how we can transform lives with the power of education through an integrated approach that brings together UN agencies, international and local NGOs, the government, local authorities, and the engagement of the communities themselves, the parent-teacher association, the local village chiefs, women groups and of course the children! ” Sherif said.

Together with the Governor of the Tanganyika province, UNICEF officials, and officials from the British Embassy in DRC, Sherif inaugurated the Lubile 1 primary school in the village of Mpungwe; a school built with funding from ECW, which is the United Nations’ global fund for education in emergencies and protracted crises. The school has high-quality infrastructure, curricula and provides students with a daily meal. There are also psychological services to assist children with trauma, including support to reintegrate children associated with armed groups  The programme also offers vocational training for youth. According to the delegation, this school is a first – indicating that anything is possible if the means are available.

The delegation also visited a temporary learning space set up in the Kikumbe village internally displaced camp – which provides much-needed learning opportunities to displaced children. The programme also offers psychosocial/mental health services and re-integration support to young mothers and survivors of sexual violence.

“Thanks to ECW support, we can provide and enhance access to quality education and alternative learning opportunities for all children, especially girls who have suffered so much,” said UNICEF DRC Representative Grant Leaity. “It is heart-warming that we have been able to respond to their specific needs.”

Leaity added that although the challenges are significant, important progress in relation to the provision of education in Tanganyika is being made.

ECW has already invested 22 million US dollars to support similar schools across Tanganyika, targeting a total of  67,000 children, of whom 32,000 have been reached to date. ECW and partners need to mobilize another 44 million US dollars to expand the three-year programme to other crisis-affected provinces where the needs are high.

Education is the basis of all human rights, says Sherif adding that investing in children’s education guarantees the achievement of sustainable development objectives. Because she believes education is at the center of human rights. Without it, little can be achieved.

“Most of the children we met come from displaced families and have never been to school before. Education is their only hope. Their courage and the efforts by the community and local partners to ensure all children go to school inspire us all to do more. We call on public and private donors to urgently step up their support for all crisis-affected girls and boys in DRC and worldwide to have the opportunity to enjoy their right to a safe, protective, inclusive quality education,” she said.

According to Laura Mazal, the Development Director at the British Embassy in DRC, access to quality education in times of humanitarian crisis is vital for children. It offers protection, a sense of normalcy, and hope. The UK is the second largest contributor to ECW’s multi-stakeholder fund at the global level. “ECW’s work is crucial in providing support to the most marginalized children. We have seen first-hand the work being delivered on the ground in Tanganyika, from meeting girl survivors of sexual violence to children formerly associated with armed groups. These children are now receiving a quality education, with huge thanks to ECW, ” said Mazal.

Schools are essential in reducing tensions between community groups, which often spill over into armed conflicts.

“We must step up to help the next generation to heal from the wounds of violence,” Sherif said. “It is crucial to jointly expand holistic education programmes that integrate psychosocial support, gender transformative approaches, and a focus on safety and the well-being of children and adolescents. At the same time, more must be done to stop this cycle of unspeakable violence and systematic violations of human rights and of international humanitarian law. The pervasive impunity must end; perpetrators must be brought to justice.”

During her visit to the DRC, Sherif also announced 2 million US dollars in new funding to continue to support life-saving educational services for refugees and host-community children and adolescents in the Nord Ubangi province in the DRC, building on a previous investment in the region.

IPS UN Bureau Report

 


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