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The administration of President Gabriel Boric, a self-described environmentalist, is facing a growing rift between scientists, social leaders and energy companies that have differences with regard to the production of green hydrogen in Magallanes. The first wind turbines have already been installed in the Magallanes region, in the far south of Chile, such as these in Laredo Bay, east of Cabo Negro, where companies are pushing green hydrogen projects in a scenario where environmental costs are beginning to take center stage. CREDIT: Courtesy of Erika Mutschke

By Orlando Milesi
SANTIAGO, Oct 12 2022 (IPS)

In Magallanes, Chile’s southernmost region, doubts and questions are being raised about the environmental impact of turning this area into the world’s leading producer of green hydrogen.

The projects require thousands of wind turbines, several desalination plants, new ports, docks, roads and hundreds of technicians and workers, with major social, cultural, economic and even visual impacts."The scale of production creates uncertainties, heightened because there is no baseline. The question is whether Chile currently has the capacity to carry out large-scale green hydrogen projects.” -- Jorge Gibbons

This long narrow South American country of 19.5 million people sandwiched between the Andes Mountains and the Pacific Ocean has enormous solar and wind energy potential in its Atacama Desert and southern pampas grasslands. This has led to a steady increase in electricity generation from clean and renewable sources.

In 2013, only six percent of the country’s total electricity generation came from non-conventional renewable sources (NCREs) – a proportion that climbed to 32 percent this year. Installed NCRE capacity in September reached 13,405 MW, representing 40.7 percent of the total. Of the NCREs, solar energy represents 23.5 percent and wind power 12.6 percent.

In Chile, NCREs are defined as wind, small hydropower plants )up to 20 MW), biomass, biogas, geothermal, solar and ocean energy.

According to the authorities, the wind potential of Magallanes could meet 13 percent of the world’s demand for green hydrogen, with a potential of 126 GW.

Green hydrogen is generated by low-emission renewable energies in the electrolysis of water (H2O) by breaking down the molecules into oxygen (O2) and hydrogen (H2). It currently accounts for less than one percent of the world’s energy.

However, it is projected as the energy source with the most promising future to advance towards the decarbonization of the economy and the replacement of hydrocarbons, due to its potential in electricity-intensive industries, such as steel and cement, or in air and maritime transportation.

The National Green Hydrogen Strategy, launched in November 2021 by the second government of then right-wing President Sebastián Piñera (2018-2022), seeks to increase carbon neutrality, decrease Chile’s dependence on oil and turn this country into an energy exporter.

The government of his successor, leftist President Gabriel Boric, in office since March, created an Interministerial Council of the Green Hydrogen Industry Development Committee, with the participation of eight cabinet ministers.

A spokesperson from the Ministry of Energy told IPS that “this committee has agreed to bring forward, from 2025 to 2022, the update of the National Green Hydrogen Strategy and the new schedule for the allocation of state-owned land for these projects.”

“We will promote green hydrogen in a cross-cutting manner, with an emphasis on harmonious, fair and balanced local development. By bringing forward the update of the strategy, we seek to generate certainty for investors and to begin to create the necessary regulatory framework for the growth of this industry in our country,” he said.

In the area known as Cabo Negro, in the Chilean region of Magallanes, several companies have installed wind turbines to generate wind energy. The installation of thousands of turbines will affect the landscape of Magallanes and environmentalists believe it will impact many birds that migrate annually to this southern region. CREDIT: Courtesy of Erika Mutschke

Warnings from environmentalists

In a letter to the president, more than 80 environmentalists warned of the risk of turning “Magallanes y La Antarctica Chilena” – the region’s official name – into an environmental sacrifice zone for the development of green hydrogen.

“The energy transition cannot mean the sacrifice of migratory routes of birds that are in danger of extinction, otherwise it would not be a fair or sustainable transition,” said the letter, which has not yet received a formal response.

Environmentalists argue that the impact is not restricted to birds, but also affects whales that breed there, due to the effects of desalination plants, large ports and harbors.

Carmen Espoz, dean of science at the Santo Tomás University, who signed the letter, told IPS that “the main warning that we have tried to raise with the government, and with some of the companies with which we have spoken, is that there is a need for zoning or land-use planning, which does not exist to date, and for independent, quality baseline information for decision-making” on the issue.

Espoz, who also heads the Bahía Lomas Center in Magallanes, based in Punta Arenas, the regional capital, clarified that they are not opposed to the production of green hydrogen but demand that it be done right.

It is urgently necessary, she said in an interview in Santiago, to “stop making decisions at the central level without consultation or real participation of the local communities and to generate the necessary technical information base.”

The signatories asked Boric to create a Regional Land Use Plan with Strategic Environmental Assessment to avoid unregulated development of projects.

“We are not only talking about birds, but also about profound social, cultural and environmental impacts,” said Espoz, who argued that the model promoted by the government and green hydrogen developers “does not have a social license to implement it.”

Sunset at Laredo Bay in the Magallanes region where the Chilean government will have to decide on what changes in the grasslands are acceptable, in the face of a flood of requests to use the area for largescale green hydrogen projects. CREDIT: Courtesy of Erika Mutschke

The bird question

Prior to this letter to Boric, the international scientific journal Science published a study by Chilean scientists warning about potential impacts of wind turbines on the 40 to 60 species of migratory birds that visit Magallanes.

“It is estimated that the installation of wind turbines along the migratory paths of birds could affect migratory shorebird populations, which is especially critical in the cases of the Red Knot (Calidris canutus rufa) and the Magellanic Plover (Pluvianellus socialis),” said Espoz.

Both species, she said, “are endangered, as is the Ruddy-headed Goose (Chloephaga rubidiceps).”

She added that if 13 percent of the world’s green hydrogen is to be generated in southern Chile, some 2,900 wind turbines will have to be installed by 2027, “which could cause between 1,740 and 5,220 collisions with bird per year.”

Jorge Gibbons, a marine biologist at the University of Magallanes, based in Punta Arenas, said the big problem is that Magallanes does not have a baseline for environmental issues.

“The scale of production creates uncertainties, heightened because there is no baseline. The question is whether Chile currently has the capacity to carry out large-scale green hydrogen projects,” he told IPS from the capital of Magallanes.

Gibbons believes it would take about two years to update the data on the dolphin and Southern Right Whale (Eubalaena australis) populations

“The greatest risks to dolphins will be seen in the Strait of Magellan. I am talking about Commerson’s Dolphins (Cephalorhynchus commersonii), which are only found there in Chile and whose population is relatively small,” he said.

He proposed studying the route to ports and harbors of these species and to analyze how they breed and feed.

“The issue is how noise disturbs them or interrupts their routes. These questions are still unanswered, but we know some things because it is the best censused species in Chile,” he explained.

According to Gibbons, the letter to Boric is timely and will help reduce uncertainty because “the process is just beginning and the scientific and local community are now wondering if the plan will be well done.”

Conflict of interests

The partnership between HIF Chile and Enel Green Power Chile withdrew from the Environmental Evaluation System the study of the Faro del Sur Wind Farm project, involving an investment of 500 million dollars for the installation of 65 three-blade wind turbines on 3,791 hectares of land in Magallanes.

The study was presented in early August with the announcement that it was “a decisive step for the future of green hydrogen-based eFuels.”

But on Oct. 6, its withdrawal was announced after a series of observations were issued by the Magallanes regional Secretariat of the Environment.

“The observations of some public bodies in the evaluation process of this wind farm exceed the usual standards,” the consortium formed by the Chilean company HIF and the subsidiary of the Italian transnational Enel claimed in a statement.

The companies argued that “the authorities must provide clear guidelines to the companies on the expectations for regional development, safeguarding the communities and the environment.

“In light of these exceptional requirements, it is necessary to understand which requirements can be incorporated and which definitely make projects of this type unfeasible in the region,” they complained.

The government reacted by stating that it is important to remember that Faro del Sur is the first green hydrogen project submitted to the environmental assessment process in Magallanes.

“During the process, some evaluating entities made observations on the project, so the owners decided to withdraw it early, which does not prevent them from reintroducing it when they deem it convenient,” the Ministry of Energy spokesperson told IPS.

He added that the ministry stresses “the conviction to develop the green hydrogen industry in the country and that this means sending out signals, but in no case should this compromise environmental standards and citizen participation in the evaluation processes.”

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Informal sector only received 4 percent of post pandemic funds even though the sector accounts for more than 2 billion workers, many of whom are women. Credit: IITA

By Ed Holt
BRATISLAVA, Oct 12 2022 (IPS)

Governments and international financial institutions must adopt new ways of providing post-pandemic support, say campaigners after a report found that in many poorer countries, big business benefitted most from Covid-19 recovery funds. At the same time, vulnerable communities have been “left behind.”

They say the level and distribution of support of these funds has been poor, with the most vulnerable in society, such as informal workers and women, among others, having been especially failed by relief programmes.

And they warn that the measures have actually only deepened inequalities at a time when the UN has warned that up to 95 million additional people could soon fall into extreme poverty in comparison with pre-Covid-19 levels.

Matti Kohonen, Director of the Financial Transparency Coalition (FTC), which was behind the report, told IPS: “The elite have been sheltered from the worst effects of the pandemic. Nearly 40 percent of Covid-19 recovery funds went to large corporations, through measures like loans and tax cuts. This means that social protection for, in particular, women and informal workers, has been inadequate.”

The FTC’s research found that in 21 countries in the Global South, large corporations received 38 percent of recovery funds while small and medium-sized enterprises (SMEs) got 20 percent. Social protection measures accounted for 38 percent.

Meanwhile, informal workers received only 4 percent of the funds in the countries surveyed, and the research showed that in many of those states, they actually received nothing at all.

Studies have shown that informal workers, and especially women, were globally hit hardest by the Covid-19 pandemic, and that economic policy measures taken in response have largely been gender-blind, exacerbating existing gender inequality and economic precarity in the sector.

According to the International Labour Organisation (ILO), of the 2 billion informal workers worldwide, over 740 million are women. However, there is a higher share of women than men in informal employment in many of the world’s poorest regions: in more than 90 percent of countries in sub-Saharan Africa, 89 percent of southern Asian countries, and almost 75 percent of Latin American countries.

These women also often have jobs most likely to be associated with poor conditions, limited or non-existent labour rights and social protection, and low pay.

The FTC report points out that while the COVID-19 pandemic has had a huge impact on women’s employment, working hours, and increases in unpaid domestic and care work duties, it found that women received half the funds than men received as most money provided to corporates and also smaller companies predominantly went to men (representing over 59 percent of funds).

Klelia Guerrero, Economist at The Latin American Network for Economic and Social Justice (LATINDADD), who helped with research into the FTC report, said that just doing work collecting data on the distribution of recovery funds underlined how little thought had been given to women in Covid-19 response policies.

It was only in a handful of the countries surveyed (Guatemala, Honduras, Bangladesh, Brazil, and Costa Rica) that partial gender-disaggregated data on Covid-19 grants were made available to analyze Covid-19 support.

“Most countries did not have disaggregated gender data; it was only partial. This in itself should be a red flag – it shows that the people who were implementing these support schemes did not think of women as a priority,” Guerrero told IPS.

And while the report shows that women did receive the majority of social protection funds in the countries surveyed, even some of those programmes “had discriminative aspects”.

“For example, here in Ecuador, we had a scheme where people had to register online and then go at certain times to receive their aid products. This was difficult for a lot of women who had to be in the home at those times, or there was no public transport to get to the places to receive aid. So, women were disadvantaged,” she said.

“Some groups of the population did benefit from Covid relief measures, but the most vulnerable not as much. It was difficult for them to access the aid. The criteria under which aid is given out should include a gender perspective.” she added.

Other equality campaigners agree.

“Numerous research has shown how, especially in Africa, women make up the majority of the informal sector. One of the big takeaways of the report is the poor targeting of women in the support response. Programmes going forward need to take into account the gender dimension of any policy,” Ishmael Zulu, Tax and Policy Officer at the Tax Justice Network Africa (TJNA), told IPS.

Groups like the FTC and its members, including the TJNA, say the report’s findings are important not just in terms of the post-pandemic recovery but in highlighting the need to change how support is given to the most vulnerable communities in developing countries in the long-term future.

Ishmael pointed out that in one scheme in Zambia, the government introduced stimulus to help SMEs and informal workers, but the money was channelled through commercial banks that set specific requirements to access that money, including the need to provide bank statements.

“Of course, that is very difficult for many informal workers. They just couldn’t provide those documents. So, in the end, even money meant for vulnerable groups ended up in the hands of big corporations, which are the ones that can provide those documents,” he explained. “It speaks of the weakness of the system.”

The FTC report has also warned that policies pursued by international financial institutions, such as the International Monetary Fund (IMF), of pushing countries to introduce austerity measures and cut funding for basic public services in return for debt restructuring is making things worse.

It cites the example of the cuts in public spending and rises in Value-Added Taxes (VAT) being imposed as part of an IMF loan program in Zambia, saying this will have the greatest impact on the poor.

Ishmael said: “Our current financial structures have perpetuated inequality in the way, for instance, financial institutions give loans: several countries have had to reform their tax systems … and these financial institutions say subsidies and spending should be channelled into some areas and not others, and it ends up that money is targeted towards large corporates, and vulnerable communities are left behind.”

He added: “We saw growing inequality [before the pandemic], and so when Covid-19 hit, we saw how these vulnerable communities were left behind without safety nets. Governments must put in place sustainable social protection systems providing safety nets to help lift people out of poverty and which won’t just respond to a pandemic or an emergency, but respond to fighting poverty and inequality.”

The FTC is planning to present its findings at the IMF/World Bank Annual Meetings later this month.

The FTC’s report calls for all countries and international institutions, including the IMF and World Bank, to implement what it describes as “alternative policies to bring a people-centered recovery instead of austerity”.

These include, among others, taxing excess windfall corporate profits, introducing progressive levels of income and wealth taxes, and increasing social security contributions and coverage.

Kohonen said informal workers and women should be at the heart of any such policies.

“Informal sector and women workers really pulled us through the pandemic, and it is wrong to now impose austerity on them. Support needs to be in place for informal and women workers, people on the front lines, before a pandemic so that support can be then scaled up if needed, in the form of loans, grants or other aid,” he said.

IPS UN Bureau Report

 

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Thousands of Ukrainians seeking safety in neighbouring Poland. Credit: WFP/Marco Frattini
The United Nations has described as “unprecedented,” the continuing outflow of children and families fleeing the “relentless shelling” of Russian military action in Ukraine – as they await assurances for the safe passage of relief teams to provide urgently needed assistance.

By Bram Frouws
GENEVA, Oct 12 2022 (IPS)

Since Russian President Vladimir Putin announced a military draft on September 21st aiming to mobilise around 300,000 Russian men to fight in the war in Ukraine, an estimated 400,000 Russians have fled the country, possibly even more.

They are fleeing Russia in all directions, with over 20,000 in Georgia and thousands more entering every day, possibly as many as 200,000 in Kazakhstan – with many moving on to Kyrgyzstan – and thousands in Turkey and in Armenia.

There are queues of thousands of citizens at land borders, prices for accommodation are soaring and flight tickets out of Russia simply not available anymore or only at sky-high prices.

Compared to the numbers in some of the Central Asian countries, the number of Russian refugees coming to Europe is still relatively low. But it does raise an important question for European countries, a question already raised shortly after Russia invaded Ukraine: what about Russian refugees?

Mixed responses to Russians fleeing conscription

So far, the response has been somewhat mixed. Some countries, like the Baltic countries, were fast in saying they will not accept asylum claims from Russians. For example, Latvia’s Foreign Minister said that since Russians were fine with killing Ukrainians, it is not right to consider them conscious objectors, adding that admitting them is a security risk and there are plenty of countries outside of the EU to go to.

Lithuania’s Foreign Minister said they will not be granting asylum to those who are simply running from responsibility and added that Russians should stay and fight, against Putin. Germany’s Justice Minister, on the other hand, said that anyone who hates Putin’s path and loves liberal democracy is warmly welcomed in Germany.

European Council President Charles Michel said, in his address to the United Nations General Assembly that Europe should allow in Russian citizens seeking to flee the country. While the EU already agreed to suspend a visa facilitation agreement with Russia earlier in September, many countries, most notably Finland essentially shut their borders to Russians after the draft announcement by Russia.

Shortly after these initial reactions, EU Home Affairs Commissioner Johansson announced an EU-wide policy towards those fleeing conscription, saying member states should do a thorough security assessment before issuing visa, that visa should not be issued to anyone intending to stay for more than 90 days and that the right to apply for asylum is a fundamental right, which also applies to Russians.

What would be the right approach?

First of all, Europe has been rather united in their responses to Russia’s invasion of Ukraine, and it would be important European countries remain united on the issue of Russian refugees as well.

The emotions around this issue, however, are very understandable, in particular in Eastern European countries, given their history and proximity to Russia, and given that it is clear who the aggressor is in this unjustified war.

Of course, it is also understandable that Ukrainian refugees evoke far more empathy than Russian refugees, but decisions about asylum should always be based on objective criteria and individual assessments.

It is crucial that emotions are set aside when it comes to defining who is a refugee and who isn’t. All EU countries signed up to international refugee law and European conventions, and there are objective criteria to decide whether someone is a refugee or not.

On a general note, it is highly concerning if decisions on whether we grant refugee status or other forms of protection are increasingly based on whether we – as a population or as policy makers or politicians – feel for a certain group and whether we sympathise with them.

We have also seen this in the striking difference in how Ukrainian refugees were welcomed across Europe, compared to refugees coming from further away. This should never be the case.

It will be challenging, and there will not be a whole lot of empathy among European populations towards Russian refugees. But that is actually the moment where we require and expect from our European leaders to stand up, be rational and objective and lead by example, saying Europe is a safe haven, for anyone who has good reasons to flee their home country, no matter which home country.

The EU’s announcement of its policy towards Russian refugees, as mentioned above, goes somewhat in that direction, though it also remains unclear how Russians – with basically, all routes out of Russia to the EU closed – in practice could even apply for asylum.

What does the law say?

As for every asylum seeker, applications must be assessed on a case-by-case basis. Fear of persecution or punishment for desertion or draft-evasion does not in itself or automatically constitute a well-founded fear of persecution under the refugee definition, according to UNHCRs handbook on procedures and criteria determining refugee status.

However, the same handbook also provides several reasons where it does. For example, when the punishment would be disproportionate, or where it can be proven that soldiers would be forced to participate in war crimes, in this case in Ukraine, or when the type of type of military action, with which an individual does not wish to be associated, is condemned by the international community as contrary to basic rules of human conduct.

With these clauses in mind, it can probably be argued that many Russian men fleeing draft, might be persecuted as understood under refugee law. All European countries signed up to the Refugee Convention and European conventions, which means everyone has a right to seek asylum and have their case assessed.

A straightforward refusal to assess claims would be a violation of international law. In short, all Russians fleeing draft should be treated as asylum seekers if they claim asylum, like anyone else, from any other country in the world.

Moreover, closing the borders and restricting access to visa for all Russians, is not a solution either. This would probably push even more Russians into the asylum system, which is already quite overburdened in many countries. And, as argued above, all these individual claims should then still be assessed.

Of course, keeping borders open to Russians does not, and should not, mean anyone can come in unchecked. The concerns about Russian operatives joining these movements might be genuine, so it should be carefully checked who enters European countries. But again, that is all the more reason to conduct proper individual assessments.

What signal to send to Russia’s population?

Importantly, accepting Russians who are fleeing draft, also sends a clear signal to Russia’s population and leadership, and to the world. It signals that Europe takes the moral high ground, does not let its objective asylum policies be clouded by anti-Russian emotions.

It signals that the EU values human rights and sticks to international agreements, no matter where refugees come from, and even, as in the case of Russia, if they come from the aggressor. It will send a signal to the world that what Russia is doing, is wrong.

Additionally, a large and growing Russian diaspora outside of Russia, with full access to more objective news coverage than what they had at home, could also become a powerful force of opposition to Russia’s leadership, working together from abroad and sharing what they hear and see about the war from outside of Russia, with family and friends left behind in Russia.

Furthermore, if Europe would completely close its borders to Russian men, whether through normal visa procedures of through the asylum process, that will only fuel Putin’s rhetoric about the West waging a war on Russia and might dishearten the many Russians who are probably opposed to this war; if the West opens up its borders to Russians fleeing their regime, that actually undermines Putin’s narrative.

On a more practical note, the more men who are fleeing Russia, the fewer Russia will have to mobilise and fight in Ukraine, which is also why Ukrainian President Zelensky appealed to Russian men to defy the mobilisation and basically offer them asylum in Ukraine.

The need to support non-EU countries in receiving Russian refugees

Finally, as mentioned in the beginning of this article, the number of Russians fleeing to non-EU countries in Eastern Europe, Turkey and Central Asia are far higher than those fleeing towards the EU.

The numbers might soon become overwhelming for some of these countries, with prices for hotels and other commodities soaring. In most of these countries, the general population is opposed to this war as well, some countries may fear a future Russian invasion or already have, like Georgia, part of their territory occupied by Russia.

With such large numbers from Russia fleeing to these countries, it is a key moment for the EU to offer strong support and show that Europe is with them, as well as with the Russians who fled to these countries, who oppose Putin and refuse to fight his war in Ukraine.

Bram Frouws is director, Mixed Migration Centre.

This article was first published on the Mixed Migration Centre website: https://mixedmigration.org/articles/how-should-europe-respond-russians-fleeing-military-mobilisation/

IPS UN Bureau

 

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Clearing ground to grow vegetables-Sultan's Kinnow orchard. Credit: Alefia Hussain/IPS

By Alefia Hussain
LAHORE, Pakistan, Oct 11 2022 (IPS)

The zesty citrus whiff from the rows of trees boasting unripe kinnow (mandarins) freshens the autumn air in late September. Two deeply tanned men clear the ground under and between the trees to plant vegetables.

Opposite the orchard, and divided by a narrow dirt path, are rows of small greenhouses cloaked in white plastic. Inside, plants from small to large, possibly the entire variety of citrus fruit grown in Pakistan – including the ambitious seedless and rouge varieties – stand in glory. It’s an experiment in growing environment-friendly oranges without fertilizers or pesticides on the expansive farm owned by Shahid Sultan, one of the country’s largest citrus processors and exporters, in Bhalwal, Sargodha district, Punjab province.

Shahid Sultan. Credit: Alefia Hussain/IPS

Sargodha is the land of the citrus in Pakistan. Most of the country’s oranges, grown over thousands of hectares of farmland and exported across the world, come from here. Sargodha is also the district where most kinnow, a sweet and tangy thirst quencher and a good source of vitamin C, are grown and processed. The fruit is the product of experimentation conducted in California way back in the 1950s.

Once considered Pakistan’s fabled export product, kinnow’s market abroad is in decline. The country exported roughly 177,000 tonnes of the fruit in 2022 as opposed to 455,000 tonnes in 2021, according to figures provided by the Sargodha Chamber of Commerce. Sultan has also soured on the fruit.

 

‘I will not export kinnow anymore’

“I have decided I will not export kinnow anymore. I will grow and, Inshallah, export mushrooms but not kinnow, says Sultan, director of the Zahid Kinnow Grading and Waxing Plant, during a visit to his orchard. “It’s impossible to control kinnow’s shelf life. By the time it reaches markets abroad, it has perished.”

Sultan has been exporting oranges since 1996. “Between 2004 and 2016, I was the top orange exporter in the country. I was the first to enter the Russian market,” he claims. He exported to Persian Gulf, Central Asian and Far Eastern states some 1,000-1,200 refrigerator containers full of fruit every season.

The market for mushrooms is growing rapidly in Pakistan, as Chinese and Thai foods, as well as pizzas, are becoming popular among food enthusiasts. Leading hotels and gourmet restaurants are the main buyers of the product, in canned as well as fresh form. Larger supermarkets are selling a variety of mushrooms but they are too pricey for the average person

Though agriculture experts cite climate change, rising power prices, shortage of water and outdated farming techniques as reasons for decline in the fruit’s quality, Sultan holds excessive use of fertilisers and pesticides as the only factor responsible. “We have used too many inorganic methods and products that have rendered the soil infertile.”

After incurring a loss of 80-100 million Pakistani rupees (US$36,000-46,000) in the last two years, the farmer is clear about his decision to switch from kinnow to mushrooms, reasoning that if China can grow and export mushrooms the world over, “so can I.” Launching production of mushrooms of the genus Agaricus, commonly called button or champagne mushrooms, is likely to cost $10 million. Sultan predicts the yield to be four times greater than the country’s consumption requirements. He is expecting his first crop to be ready by November this year.

Standing in the orchard it is hard to imagine the citrus-scented air replaced by the stink of compost and the rows of trees usurped by bunker-like ‘tunnels’ growing champagne mushrooms. Sultan has converted old cold storage rooms into the temperature and moisture-controlled spaces to raise the soft, round, white mushrooms. All processes will be carried out indoors on the company’s existing premises.

 

New machines imported

“My team and I have ensured that we are totally protected from the weather. The entire production – from spawn to compost to canning of the produce will be done under a controlled environment.” Brand new machinery required for his venture has been imported from China. The spotless machines await production.

The market for mushrooms is growing rapidly in Pakistan, as Chinese and Thai foods, as well as pizzas, are becoming popular among food enthusiasts. Leading hotels and gourmet restaurants are the main buyers of the product, in canned as well as fresh form. Larger supermarkets are selling a variety of mushrooms but they are too pricey for the average person.

Small farmers are growing and selling fresh mushrooms in local markets. The canned ones available in supermarkets are mostly imported from China.

With mushroom growing still in the inception stage, little technical knowledge and expertise is available to growers about commercial scale production and value chain development. They can either seek assistance from private companies involved in agriculture research and trade or approach international agencies that focus on hunger, malnutrition and poverty.

Having collected data on canning mushrooms from all over the world, Sultan decided to approach the Food and Agriculture Organization of the United Nations (FAO) to gain insight into best management practices for commercial production, improving business performance and developing market linkages for export. He was also eager to connect with international experts in commercial production and processing of mushrooms.

“Although it has been Zahid Kinnow’s own decision to venture into mushroom cultivation, the FAO may consider supporting the private sector enterprise by providing technical assistance,” says Asad Zahoor, FAO consultant.

 

Smelly but healthy plant food-A mixture of spawn and compost. Credit: Alefia Hussain/IPS

 

Mushrooms get FAO nod

Zahoor told IPS that FAO, through its Hand in Hand Initiative (HiH), seeks to empower countries and their agricultural partners through data sharing and model-based analytics. Seeing reasonable potential for investment, the organization in Pakistan has decided to include mushroom in HiH as an emerging commodity that could add to the country’s export earnings.

Globally, HiH seeks to accelerate agricultural transformation, with the goal of eradicating poverty, ending hunger and malnutrition, and reducing inequalities. The initiative was supporting 52 countries in Africa, Asia, Europe, Latin America, and the Middle East as of May 2022.

The demand for canned mushrooms is rising fast in Pakistan. According to Karachi customs officials, in July 2021, 93,877 kg of canned mushrooms were imported from China via the sea route alone. That grew to 284,553 kg in June 2022.

In addition, the country imported nearly 17 million kg of fresh or chilled Agaricus mushrooms from China in 2021, according to International Trade Centre calculations based on figures provided by the Pakistan Bureau of Statistics.

Asif Ali, an agriculture expert associated with leading fertiliser manufacturer Engro Fertilisers, thinks that with the trend of consuming plant-based proteins increasing worldwide, investing in mushroom could capture the high value local and international export markets. “Mushrooms are considered to be a good source of protein and consumption is increasing among people at home and abroad,” he said in an interview.

Time will tell if Pakistan is well positioned to enter the international market for mushrooms. But, Sultan says, “I feel, with mushrooms, I have given birth to a new kid in town.”

World Food Day is celebrated on October 16, 2022, with the theme Leave NO ONE behind. During this week IPS will look at features that showcase better production, better nutrition, a better environment, and a better life.

Zambia's Enock Mwepu has been deprived of a "bright future" after the Brighton midfielder was forced to retire because of a heart issue.

The International Monetary Fund (IMF) and the World Bank share a common goal of raising living standards in their member countries. This week, the two international institutions will convene in Washington DC (through October 16) for their annual meeting. The strength of the US dollar will be a key talking point. By adjusting their lending practices, these institutions have a unique opportunity to relieve suffering in the world’s poorest countries.

By Alexander Kozul-Wright and Ruurd Brouwer
GENEVA, Oct 11 2022 (IPS)

In the last week of September, emerging market (EM) bond fund outflows hit $4.2 billion, according to JP Morgan, bringing this year’s total to a record $70 billion. The exodus, set off by a rising U.S. dollar, is heaping pressure on low-income countries.

The greenback’s rise has been fuelled by interest-rate hikes by the Federal Reserve. Since March, the Fed has raised rates by three percentage points, prompting global investors to move their funds into U.S. financial assets and away from (riskier) EM investments.

While economists continue to wrangle over their U.S. growth forecasts, this ‘flight to quality’ has sent financial shockwaves across the developing world, already straining under elevated costs for food and fuel – typically priced in U.S. dollars. Moreover, attempts by EM policy makers to stem the dollar’s rise have largely failed.

Over the course of this year, central banks around the world have drained their U.S. dollar reserves at the fastest rate since 2008. To stem currency depreciations, they have also raised interest rates aggressively. In Argentina, for instance, policy makers raised rates to 75% last month. To little avail.

The MSCI Emerging Market Currency Index, which measures the total return of 25 emerging market currencies against the U.S. Dollar, is down nearly 9 percent from January 1st. The Egyptian pound has depreciated by 20% over the same period, according to Bloomberg data. In Ghana, the Cedi has fallen by 41%.

On top of higher imports costs, a plunging currency makes the servicing of dollar- denominated debt more expensive. This concern may seem abstract to people in advanced economies. In developing nations, however, the effects are painfully real.

As the dollar appreciates relative to other currencies, more domestic currency (in the form of tax revenues) has to be generated to service existing dollar debts. For low-income governments, budget cuts have to be implemented in the hope of avoiding sovereign default.

Currency depreciations have the power to strongarm authorities into reducing health and education spending, just to stay current on their debts. This leaves officials with a grim choice: either risk unleashing a full-blown debt crisis, or confiscate essential public services.

Given the painful costs of insolvency, governments tend to prioritize austerity over bankruptcy. Together with the oft-publicized effects of lost access to foreign investment, subdued growth and high unemployment, sovereign default also imposes severe social tolls.

In August, the World Bank published a paper measuring the decline in country living standards – looking at access to food, energy and healthcare – after state bankruptcies. The paper showed that ten years after default, countries experience 13% more infant deaths per year, on average, compared to the synthetic control (counterfactual) group.

Admittedly, more developed emerging markets like Brazil and India can issue bonds in their own currency to limit budget cutbacks. In most of the world’s poor countries, however, financial markets are too shallow to support domestic lending.

With no recourse to borrow from private creditors, public bodies like multi-lateral development banks (MDBs) usually step in to fill the gap. Indeed, almost 90% of low-income countries’ (LICs) funding takes the form of concessional, or non-commercial, loans from official lenders.

Even accounting for these favourable terms, financial pressures are beginning to build outside of well-known hot spots like Lebanon, Sri Lanka and Pakistan. As it stands, LICs have outstanding debts to MDBs and other official creditors to the tune of $153 billion (mostly denominated in USD).

Given the exogenous trigger for capital outflows from developing countries this year, multi-lateral lenders need to be more innovative. Where possible, they should use their robust credit ratings to assume greater risk by lending to poor countries in domestic currencies.

Failing that, they could lend in synthetic local currencies. These instruments index dollar debts to local exchange rates, allowing borrowers to service liabilities in their own currency while ensuring that creditors receive payments (both interest and principal) in dollars.

Synthetic currencies can improve debtor credit profiles by limiting foreign capital outflows and, by extension, improve debt management capacity. In particular, they boost economic resiliency by making government finances less a function of international currency volatility.

Multilateral financial institutions have been tasked with designing a stable international monetary system to try and ease global poverty. But the loans provided by these groups undermine their own mission, as dollar debts force currency risk onto the countries least able to handle it.

This week, the World Bank and the IMF will convene in Washington (October 10-16) for their annual meeting. The strength of the USD will be a key talking point. By adjusting their lending practices, these institutions have a unique opportunity to relieve suffering in the world’s poorest countries.

Alexander Kozul-Wright is a researcher at Third World Network and Ruurd Brouwer is Chief Executive Officer at TCX, a currency hedging firm (https://www.tcxfund.com).

IPS UN Bureau

 

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Videos of primary school pupils learning practical skills such as cooking spark a nationwide debate.

Experts from the Netherlands and Bangladesh visit the Rupsha River in Khulna, southern Bangladesh, the planned site of future fish farms. Credit: IPS/Gemcon

By Mosabber Hossain
DHAKA, Oct 10 2022 (IPS)

Bangladeshi businessman Kazi Inam Ahmed is building his dream in a village near Rupsha River in Khulna, southern Bangladesh—to develop fish farming in the region, where climate change is reducing the ocean’s catch. He envisions creating small ponds, which would employ local climate affected fisherfolk, then exporting the international quality harvest to the Netherlands.

We are looking forward to seeing the outcome of this project - Hopefully it will be one of the successful initiatives by the government and private sector. The technologies that are coming to Bangladesh will help cope with the impact of climate change on agriculture

Dr Abdur Razzaque, Bangladesh Minister of Agriculture

Inam, director of Gemcon Group, a conglomerate that includes Gemcon Food & Agricultural Products Ltd, is preparing his project thanks to advice from experts who visited recently from the Netherlands. “The Dutch co-partner of this project, Viqon Water Solutions, shared the preliminary design with us on 29 September. They will provide us with the final design in December. We will start our civil works after getting the final design.”

“For the first one or two years we’ll start fishing to gain experience,” adds the businessman in an interview. “We’ll see which types yield better harvests. After that, we’ll focus on some species that are very popular in different countries and can earn export dollars. I’d like to start with shrimp.”

How did Inam find his dream? In November 2021, he was included as one of the private-sector representatives on a Bangladesh Government mission to the Netherlands, organized to develop the capacity of the Ministry of Agriculture and foster matchmaking to strengthen the country’s food exports, agro-processing, food safety, and laboratory capacity.

Organized through the Hand in Hand Initiative (HiH) of the UN Food and Agriculture Organization (FAO), the delegation, which included five other agro-food companies, was led by Bangladesh Minister of Agriculture Dr Abdur Razzaque. It visited locations including the World Horticulture Centre, Wageningen University and Research, one of the world’s biggest onion exporting companies, and a range of other agricultural companies that grow and process produce that is exported globally.

 

Hand-in-Hand to improve agriculture

According to Robert D Simpson, FAO Representative in the country, “Bangladesh is a key country for HiH. Working with the government and private sector,” Simpson told IPS, “FAO develops value chains for profitable commodities, builds agro-industries, efficient water management systems, and digital services. The initiative also helps to reduce food loss and waste, and address climate challenges and weather risks.”

 

Bangladesh’s mission to the Netherlands, organized via the UN FAO’s Hand-in-Hand Initiative, visited various facilities in November 2021 to gather information on food exports, agro processing, and food safety. The delegation was led by Bangladesh Minister of Agriculture Dr Abdur Razzaque.

 

“The results will be raised incomes, improved nutrition and well-being of poor and vulnerable populations, and strengthened resilience to climate change,” added Simpson.

HiH is an evidence-based, country-owned and led initiative of the FAO to accelerate agricultural transformation, which also aims to eradicate poverty, end hunger and malnutrition, and reduce inequalities. The initiative was supporting 52 countries in Africa, Asia, Europe, Latin America, and the Middle East as of May 2022.

Speaking at the end of the November 2021 official trip, Razzaque said that Bangladesh will benefit from Dutch technology and know-how. “To be competitive in the global market in terms of price, quality, and safety, I think it’s important to keep updated with the latest technology in order to increase productivity.”

“We are looking forward to seeing the outcome of this project,” added the minister. “Hopefully it will be one of the successful initiatives by the government and private sector. The technologies that are coming to Bangladesh will help cope with the impact of climate change on agriculture.”

In addition, potato and onion experts from the Netherlands will train officials from the Department of Agriculture Extension (DAE), who will then train local farmers.

FAO Bangladesh has also organized several workshops and meetings with private sector and government officials to identify gaps and challenges for agricultural transformation.

 

Bangladesh’s mission to the Netherlands, organized via the UN FAO’s Hand-in-Hand Initiative, visited various facilities in November 2021 to gather information on food exports, agro processing, and food safety. Potato and onion experts from the Netherlands will train officials from the Department of Agriculture Extension, who will then train local farmers.

 

French fries on the menu

ACI Agro was another private-sector member of November’s delegation. “It was a magnificent learning platform,” the firm’s managing director and CEO, Dr FH Ansarey, told IPS. “We were searching for a good potato variant. In Bangladesh there is a big market for French fries but no variant to produce them. Luckily we found a company to help with that.”

“We spoke with Schaap Holland, one of the prominent potato seeds companies of the Netherlands. They agreed to send six different variant potato seeds to our company. Their potato variants are perfect for making good French fries.”

Ansarey said ACI Agro has already located a farming area near the capital Dhaka. “If everything is OK we’ll start farming soon. Their seeds are next generation potatoes, which can grow within 60-65 days. The cost of cultivation is less than three-four percent of other variants due to low infestation of diseases. Seventy percent of the potatoes are above 80 grams so they can be easily exported.”

“So I must say it’s a very good opportunity for Bangladesh to move into the next generation of farming as well as become a global exporter.”