Africa

Scenes from Moon Over Aburi. Credit: courtesy of the film.

By SWAN
PARIS, May 18 2023 (IPS)

Some movie scenes keep replaying in one’s mind long after one has left the cinema, and this is certainly true of Moon Over Aburi, a short film shot in Ghana that has been gaining accolades since its release earlier this year.

Based on a story by the prize-winning Ghanaian-Jamaican writer and poet Kwame Dawes, the film addresses subjects such as sexual abuse, society’s view of women’s roles, and the gender-based perspectives from which experiences are recalled and retold. It will have a special screening this month at the prestigious Calabash International Literary Festival in Jamaica (May 26-28), and while viewers can expect to be moved by the whole story, they will be haunted by one stunning, unexpected scene.

In its minimalist mise-en-scène, Moon Over Aburi is reminiscent of a play, with two main actors in the spotlight, or rather the moonlight, playing off each other – Ghanaian-British actress Anniwaa Buachie and her Ghanaian compatriot Brian Angels (whose credits include the 2015 feature Beasts of No Nation, starring Idris Elba).

Buachie plays a mysterious woman, the owner of a small food kiosk who seems tied to something in her past. Angels plays the man who visits the kiosk on a moonlit night and asks for a meal. As the two exchange cryptic words and stories, it becomes clear that the man knows more about her than he lets on, and the colossal secret she carries is gradually revealed, as enigmatic shots of the full moon emphasise the mystique.

Anniwaa Buachie. Credit: Courtesy of the film.

Buachie, who produced the film and co-directed (with Sheila Nortley), has a background in both cinema and theatre, having performed at London’s Old Vic and other venues. She has also appeared in guest roles in popular television series such as Eastenders. But making Moon Over Aburi was not a shoo-in for her, she says. She and her team had to overcome certain obstacles for the work to see the light of day – because in a world where the number of films seems to be ever growing, only a selected few filmmakers acquire the resources to pursue their art.

In the following, edited, interview, Buachie speaks with SWAN about the film’s journey to the screen.

SWAN: Moon Over Aburi is a shocking, thought-provoking film that is beautifully made. How did it come about?

Anniwaa Buachie: As an actor, I provided the voice of the audiobook in the anthology Accra Noir, edited by Nana Ama Danquah [and published by New York-based publisher Akashic Books]. I fell in love with the story Moon Over Aburi by Kwame Dawes.

I remember when I started reading this story, I immediately had goose bumps. The story was honest, visceral, poetic, chilling… a dance of cat and mouse between two people, a man and woman, secret and lies, making one question whether two wrongs can make a right.

It sat with me, it was in my heart, my mind, my body. I had never read a story that highlighted the vicious cycle of domestic violence, but also explored how a woman ruthlessly and unapologetically takes back her power.

Society tends to excuse the faults of a man and blame the women in that man’s life. The woman who raised him, the woman who married him, the woman who rejected him. Power is given to a woman to birth and nurture a child, yet it is taken from her as soon as she seeks equality, acknowledgement, and respect. It is a story that pushes the brutal subject matter of domestic violence into the light, a much-needed conversation that often lies in the shadow, swept under the carpet. I had to bring this story to light.

SWAN: What were some of the challenges in adapting the short story to suit the demands of a different medium, film?

A.B.: Kwame Dawes’ writing is beautiful, lyrical and poetic, and it was important to me to ensure that the film produced stayed true to the mystical element of the original.

Many stories are written in the first person, and the reader already is biased as they often

attach themselves to the main narrator / protagonist. However, with Moon Over Aburi, Kwame had already written it in a dialogue format. The story was a script in the first instance, so adapting it to film was a joy, to be honest.

What was tricky was deciding how much detail to pack from a 20-page short story into a 10-page script. The world that Kwame had created was so intricate, intimate through words, and heavily reliant on the reader’s interpretation. However, with a screenplay, you have to make definitive decisions and find ways to utilise camera shots, sounds, and the colour palette to influence the viewer’s perspective.

Film also demands a particular structure that a short story can forego. Screenplays require scenes that establish each character and a clear breaking point in the middle of the script that take characters to the emotional extreme – into fight or flight mode. The audience needs to be taken on an emotional ride, and this is influenced by the whole creative team: producer, director, cinematographer, etc.

Personally, it was a challenge for me to maintain a balance between being an actor and being the producer, and co-directing.

The actor inside me wanted to play forever and fully immerse myself in the character. However, there was a part of my brain that, as the producer, always had to be focused on the practicalities, thinking about if the budget is being used effectively, if everyone is happy on set, if cast and crew have been fed and have what they need to maintain a high quality!

Also, once a film project is done, an actor can switch off and think about their next project, whereas the role of the filmmaker doesn’t stop there – now it’s about implementing, marketing, sourcing additional finance, distribution. Good thing I am a great multi-tasker!

SWAN: The shots of the landscape, the moon, and the setting overall, are artistic and evocative. Can you tell us more about the photography and where it took place?

A.B.: The story takes place in the Aburi, the eastern region of Ghana, and in Accra, the main city. Whilst the story leaves room for the imagination, I am so thankful to Ghanaian-based cinematographer extraordinaire Apag Annankra of Apag Studios and art director Godwin Sunday Ashong. Their knowledge of the neighbourhood and the scenery enabled us to find places within Aburi and Accra that provide a magical realism.

A.B.: It is important to me, as an artist, to present situations that encourage conversations, a reflection of self and to identify how one contributes or blocks the development of girls and women. The best teaching is when the viewer has space for analysis themselves, as opposed to being force fed an opinion.

I simply ensure that the films I produce have in-depth perspectives, of extreme impactful situations, drawing the viewer in on an emotional, human level.

SWAN: What are some of the difficulties in making a film without major studio backing, and are things changing?

A.B.: Budget. A studio-backed film would have a large budget and with that the creative team has space to make mistakes, to experiment, to spend hours on a scene taking multiple shots. With a big budget you can secure your ideal location, block off streets and build a set if needs be, to get the right look for the film.

Whereas when you are working on an independent or a low budget, everything you do has to be specific, and with the right intention, because the repercussions are greater. Planning is key, and ensuring everyone in the crew and cast understands the overall vision of the film is important. There cannot be a weak link, everyone needs to work together to bring their A-game. You cannot go back and re-shoot, money is tight, which also means time is limited. You just have one chance to make sure you get the right shots, the right lighting, etc.

I do think things are changing but not quickly enough. Independent filmmaking is an art that is not given the same respect as the big studio movies and TV. Which is a shame, because independents are a great way to platform new and upcoming talent and inject society with stories that are often forgotten, hidden, or discarded. But nowadays the art of filmmaking is more about the return on investment, and for that reason independent filmmaking is always a risk, but that is what makes it exhilarating and rewarding… if you make people’s heads turn in an age where attention is so competitive, you know you have something really special.

SWAN: What do you hope viewers will take away from Moon?

A.B.: This film focuses on giving attention to overlooked narratives, concerning social issues such as: gender-based violence, misogyny and gender inequality, which shroud many cultures. It will open doors to a diverse audience offering intelligent insight into the social and political consciousness of the invisible and the marginalised. While this story is in a fiction anthology, it is a reality that most women face. Through the screenings, I am hoping viewers can identify how cultural constructs contribute to the way in which women are viewed, and how this can change, how this MUST change and, ultimately, that it’s down to us, the new generation to take control and rewrite the social narrative. A narrative that allows us, me, as a woman, to learn from the present, and construct a future that uplifts gender equality, suppresses elitism, and eradicates poverty. This is the foundation of social cohesion and the start of a new African legacy.

SWAN: What’s next for you?

A.B.: Kwame and I are touring with this short in many film festivals in the UK, Ghana, and the States as well, developing Moon Over Aburi into a full feature and exploring production companies and talent. Personally, I have my show coming out on the BBC (teen drama Phoenix Rise), and I have a couple other things in the works that I can’t announce yet, but it’s an exciting time! – SWAN

 

A mother-of-five tells the BBC how she escaped a Kenyan doomsday cult where at least 200 people died.

“As reuse and recycling capacities in Europe are limited, a large share of used textiles collected in the EU is traded and exported to Africa and Asia, and their fate is highly uncertain,” says the European Environmental Agency. Credit: Shutterstock.

By Baher Kamal
ROME, May 18 2023 (IPS)

Once the money-making businesses have turned Asia and Africa into their low-cost factories, to produce and market at higher prices their clothes and footwear, obtaining more profits by selling to these two continents around 90% of all their used and textiles waste.

Not only: such a business alleviates the harsh environmental impacts of the lucrative clothing and fashion industry, and the cost of recycling and eliminating the leftovers of these products.

Textile consumption causes the third largest land use and water use in the value chain, and the fifth largest material resource use and greenhouse gas emissions. Also, textiles cause pressures and impacts from their chemicals on the environment and climate

Just know that textiles are on average “the fourth-highest source of pressure on the environment and climate change from a European consumption perspective,” the European Environment Agency (EEA) on 26 April 2023 reported.

Consequently, “Europe faces major challenges managing used textiles, including textiles waste.”

 

Europe exports much more than textile waste

Lars Mortensen, EEA expert on circular economy, confirms that textile production and consumption in the European Union have significant impacts on the environment and climate.

“Textile consumption causes the third largest land use and water use in the value chain, and the fifth largest material resource use and greenhouse gas emissions. Also, textiles cause pressures and impacts from their chemicals on the environment and climate”.

 

The poisoning plastic

A 27 January 2023 EEA briefing focusses on another big problem: plastic.

“Plastic-based — or ‘synthetic’— textiles are woven into daily lives in Europe, in the clothes we wear, the towels and the bed sheets, in the carpets, curtains and cushions. And they are in safety belts, car tyres, workwear and sportswear.”

Synthetic textile fibres are produced from fossil fuel resources, such as oil and natural gas, the briefing goes on, adding that their production, consumption and related waste handling generate greenhouse gas emissions, use non-renewable resources and can release microplastics.

EU consumers discard about 5.8 million tonnes of textiles annually – around 11 kg per person – of which about two-thirds consist of synthetic fibres, according to the briefing.

“In Europe, about one-third of textile waste is collected separately, and a large part is exported.”

Africa and Asia are therefore the largest destinations of these toxic fibres.

Simply put: by exporting European used clothes and textiles waste, their impacts necessarily fall on the shoulders of Africans and Asians.

 

A highly uncertain fate

Indeed, “as reuse and recycling capacities in Europe are limited, a large share of used textiles collected in the EU is traded and exported to Africa and Asia, and their fate is highly uncertain,” says the European Environmental Agency.

In fact, throughout the past two decades, Africa has been the main continent receiving used textiles from the European Union (EU), importing more than 60% of EU exports.

But while in 2000 Asia received only 26% of EU exports, by 2019 it had significantly increased its share to 41% of EU imports. This is almost equal to Africa, which still imported 46% of EU exports.

 

Where do second-hand clothes end up?

In the African countries studied, the EEA report says that the import of used textiles seems to be mainly meant for local reuse. This is because there is a demand for cheap, used clothes from Europe, which seem to be preferred to new items.

“What is not fit for reuse mostly ends up in open landfills and informal waste streams.”

In Asia, however, most of the used textiles are imported to so-called economic zones where they are sorted and processed. In the countries studied for this briefing, import for local reuse is restricted.

Instead, used textiles seem to be recycled locally, mostly downcycled into industrial rags or filling, or re-exported either for recycling in other Asian countries or reuse in Africa.

“Textiles that cannot be recycled or re-exported are likely to end up in the general waste management system, most of which is landfilling.”

 

The big figures…

According to this European Union (EU)’s agency that ‘delivers knowledge and data to support Europe’s environment and climate goals’:

• The amount of used textiles exported from the EU has tripled over the last two decades from slightly over 550,000 tonnes in 2000 to almost 1.7 million tonnes in 2019.
• The fate of used textiles exported from the EU is highly uncertain. The perception of used clothing donations as generous gifts to people in need does not fully match reality,
• Used clothing is increasingly part of a specialised and traded global commodity value chain,
• In 2019, 46% of used textiles ended up in Africa: Imported, used textiles on this continent primarily go towards local reuse as there is a demand for cheap, used clothes from Europe. What is not fit for reuse mostly ends up in open landfills and informal waste streams,
• In 2019, 41% of used textiles ended up in Asia. Most used textiles on this continent are imported to dedicated economic zones where they are sorted and processed,
• The used textiles are mostly downcycled into industrial rags or filling, or re-exported for recycling in other Asian countries or for reuse in Africa. Textiles that cannot be recycled or re-exported are likely to end up in landfills.

 

… The big exporting hubs

“Some EU countries, such as Germany, Poland and the Netherlands, have exported more than others and seem to have acted as import-export hubs for used textiles from the EU.”

There is no clear reason explaining why five out of 27 EU Member States and the United Kingdom account for around 75% of all EU used textile exports, adds the EEA.

Therefore, it is likely that the largest exporters have been sending used textiles abroad, collected locally and from other EU countries, says the European agency.

Thus, another reason for the concentration of exports in a few EU countries could be that these large exporting countries are acting as export hubs.

“In other words, they are importing used textiles from other EU Member States for re-export beyond the EU. Ports/harbours for international shipment in some of these countries make them logical export hubs.”

Belgium, Italy and the Netherlands have large export harbours.

 

… and the big increase

EU used textile exports have grown significantly over the last two decades, the EEA reports, explaining that exports of textile waste outside the EU have been steadily increasing to reach 1.4 million tonnes in 2020.

Still, another problem appears: how to avoid that waste streams are falsely labelled as second-hand goods when exported from the EU and in this way escape the waste regime?

EU used textile exports are characterised by a lot of uncertainty, adds the EEA. First, there is uncertainty around the types of textiles exported as well as their quality.

In other words, it says, if used textiles exported from the EU are of too low quality to be reused, or are not reused for very long or do not replace new clothing purchases, they may not really replace new production or benefit the environment.

“Instead, the exports will only lead to more textiles ending up in landfills.”

Mamelodi Sundowns coach Rhulani Mokwena has been likened to Manchester City's Pep Guardiola for his style on and off the pitch.

Ghanaians are desperate for help but the intervention may not deal with problems in the long term.

Freshly slaughtered bush meat is being consumed even though it may have health risks.

By Busani Bafana
BULAWAYO, May 18 2023 (IPS)

Meat from wild animals is relished across Africa and widely traded, but scientists are warning that eating bush meat is a potential health risk, especially in the wake of pandemics like COVID-19.

A study at the border settlements of Kenya and Tanzania has found that while people have been aware of the risks associated with eating bushmeat, especially after the COVID-19 outbreak, they don’t worry about hunting and eating wild animals that could transmit diseases.

On the contrary, the demand for bushmeat has increased, the 2023 study by the International Livestock Research Institute (ILRI) and TRAFFIC and other partners found.

No Beef With Bushmeat

Bushmeat is a collective term for meat derived from wild mammals, reptiles, amphibians, and birds that live in the jungle, savannah, or wetlands. Bushmeat comes from a variety of wild animals, including monkeys, pangolins, snakes, porcupines, antelopes, elephants, and giraffes.

The study — the first ever to look at disease risk perceptions of wild meat activities in rural communities in East Africa — was conducted in December 2021, and 299 people were interviewed in communities on the Kenya-Tanzania border.

Key findings of the study revealed that levels of education played a critical role in understanding zoonotic disease transmission; a majority of the people interviewed who had higher levels of education were more aware of the risks of disease transmission.

Nearly 80 percent of the respondents had learned about COVID-19 from mass media sources, but this did not impact their levels of wild meat consumption. Some even reported increased consumption. Hoofed animals, such as antelopes, gazelles and deer, were found to be the most consumed species, followed by birds, rodents and shrews.

Scientist and lead study author at ILRI, Ekta Patel, commented that it was important to commence the study in Kenya given the limited information on both rural and urban demand for wild meat and the potential risks associated with zoonotic diseases. The Kenya-Tanzania border is a known hotspot for wild meat consumption.

Zoonotic diseases are those that originate in animals — be they tamed or wild — that then mutate and ‘spill over’ into human populations.  Two-thirds of infectious diseases, from HIV/AIDS, which are believed to have originated in chimpanzee populations in early 20th century Central Africa, to COVID-19, believed to have originated from an as-yet undetermined animal in 2019, come from animals.

Confirming that there is no COVID health risk of consuming wild meat, Patel said that given the COVID-19 pandemic, which is thought to originate from wildlife, the study was investigating if the general public was aware of health risks associated with frequent interactions with wildlife.

Patel said some of these risks of eating bush meat include coming into contact with zoonotic pathogens, which can make the handler unwell. Other concerns are linked to not cooking meats well, resulting in foodborne illnesses.

“The big worry is in zoonotic disease risks associated with wild meat activities such as hunting, skinning and consuming,” Patel told IPS.

Africa is facing a growing risk of outbreaks caused by zoonotic pathogens, according to the World Health Organisation (WHO). The global health body reported a 63% increase in zoonotic outbreaks in the region from 2012-2022 compared to 2001-2011.

Control or Ban?

Scientists estimate that 70 percent of emerging infectious diseases originated from animals, and 60 percent of the existing infectious disease are zoonotic. For example, Ebola outbreaks in the Congo basin have been traced back to hunters exposed to ape carcasses.  She called for governments to implement policies to control zoonotic disease transmission risks through community engagements to change behaviour.

The study, while representative of the small sample, offered valuable insights about bushmeat consumption trends happening across Africa, where bushmeat is many times on the menu, says Martin Andimile, co-author of the study and Research Manager at the global wildlife trade monitoring network TRAFFIC.

Pointing to the need to improve hygiene and standards of informal markets while at the same time providing communities with alternative protein sources, Andimile believes bushmeat consumption should be paused, citing the difficulty of regulating this source of meat.

“I think people in Africa have other options to get meat besides wild meat although some advocate that they get meat from the wild because of cultural reasons and that it is a delicacy, government systems cannot control the legal exploitation of wildlife,” Andimile told IPS. “I think bushmeat consumption should be stopped until there is a proper way of regulating it.”

Andimile said while some regulation could be enforced where the population of species are healthy enough for commercial culling to give communities bushmeat, growing human populations will impact the offtake of species from the wild.

“Bushmeat consumption is impacting species as some households consume bushmeat on a daily basis, and it is broadly obtained illegally (and is) cheaper than domestic meat,” Andimile told IPS.

Maybe regulation could keep bushmeat on the menu for communities instead of banning it, independent experts argue.

“Wild meat harvesting and consumption should not be banned as this goes against the role of sustainable use in area-based conservation as made clear by recent CBD COP15 decisions,” Francis Vorhies, a member of the International Union for Conservation of Nature (IUCN) Sustainable Use and Livelihoods Specialist Group (SULi), says.  He called for an enabling environment for sustainable and inclusive wild meat harvesting, which means better regulations and voluntary standards such as developing a FairWild-like standard for harvesting wild animals.

Another expert, Rogers Lubilo, also a member of the IUCN SULi, concurs that bushmeat consumption should not be banned because it is a major source of protein. He argued that local communities who live side-by-side with wildlife would like to access bushmeat like they used to before, but the current policies across many sites incriminate bushmeat when acquired from illegal sources.

“There is a need to invest in opportunities that will encourage access to legal bushmeat,” Lubilo said. “The trade is big and lucrative, and if harnessed properly with good policies and the ability to monitor, would be part of the broadened wildlife economy.”

Eating Species to Extinction

There is some evidence that the consumption of bushmeat is impacting the species’ population, raising fears that without corrective action, people will eat wildlife to extinction.

The IUCN has warned that bushmeat consumption and trade have driven many species closer to extinction, calling for its regulation. Hunting and trapping are listed as a threat to 4,658 terrestrial species on the IUCN Red List of Threatened Species, including 1,194 species in Africa.

At least 5 million tons of bushmeat are trafficked every year in Central Africa. Africa is expected to lose 50 percent of its bird and mammal species by the turn of the century, says  Eric Nana, a member of the IUCN SULi.

Nana notes that bushmeat trafficking from Africa into European countries like France, Switzerland, Belgium and the UK remains a largely understudied channel. He said estimates show that more than 1,000 tons are trafficked yearly.

“Much of the reptile-based bushmeat trade in Africa is technically illegal, poorly regulated, and little understood,” Patrick Aust, also a member of IUCN SULi, said, adding that reptiles form an important part of the bushmeat trade in Africa and further research is urgently needed to better understand conservation impacts and socioeconomic importance.

IPS UN Bureau Report

 

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UN Secretary-General António Guterres addresses the Opening Ceremony at the 36th ordinary Session of the African Union Assembly in Addis Ababa, Ethiopia. February 2023. On the economic front, Guterres called for more financial support for a continent that is, being hit by a dysfunctional and unfair financial system, inequalities in the availability of resources for the recovery from the COVID-19 pandemic, and a cost-of-living crisis exacerbated by the consequences of the Russian invasion of Ukraine. The financial system, declared the UN chief, routinely denies African countries debt relief, and charges extortionate interest rates, starving them of investment in vital areas, such as health, education, and social protection. Credit: UNECA/Daniel Getachew

By Daniel Bradlow
PRETORIA, South Africa, May 18 2023 (IPS)

Zambia defaulted on its debt in November 2021 but has not yet reached an agreement with its creditors. Its president recently warned that this situation is hurting its citizens and undermining its democracy because “you cannot eat democracy”.

Given their adverse economic, social, and political impacts, it should be expected that human rights considerations would play an important role in sovereign debt restructurings. Unfortunately, this is not the case, even though all negotiating parties have human rights responsibilities or obligations.

It is unclear why these actors pay so little attention to human rights in the sovereign debt restructuring context. One possibility is that they are not sure how to incorporate human rights into their transactions.

This should not be surprising. It is difficult to understand the causal linkages between a sovereign debt crisis and the deteriorating human rights situation that follows. There can be multiple such linkages and the lines of causation can run in different directions.

Consequently, a human rights consistent debt restructuring will be fact and context specific and will require the parties to understand their role in both creating the situation and in mitigating or eliminating the adverse human rights impacts.

This requires the parties to have a common approach to analysing the debt crisis and its anticipated economic, financial, human rights, environmental, social and governance impacts. Thus, they could benefit from having a mutually acceptable set of principles that incorporates all these issues.

In 2021, I received a grant from the Open Society Initiative for Southern Africa to explore the feasibility of my proposal to establish a DOVE (Debts of Vulnerable Economies) Fund. This fund would buy the debts of sovereigns in distress and state that it would only support sovereign debt restructurings that were consistent with widely accepted international norms and standards.

My work on this project revealed shortcomings with all the existing international standards and led me to develop the DOVE Fund Principles. The principles are based on 20 existing international norms and standards developed by states, international organisations, industry associations and civil society organisations. They can provide a common framework for the negotiations between states and their creditors. They are now set out and explained.

The DOVE Fund Principles

Principle 1: Guiding Norms: Sovereign debt restructurings should be guided by the following 6 norms: Credibility, Responsibility, Good Faith, Optimality, Inclusiveness, and Effectiveness.

• Credibility: The Negotiating Parties and the Affected Parties are confident that the restructuring process can produce an Optimal Outcome. The “Negotiating Parties” are the sovereign debtor, its creditors and their advisors. The “Affected Parties” are the residents of the debtor country and those individuals whose savings either directly or indirectly finance the debt being restructured.
• Responsibility: The Negotiating Parties seek an agreement that respects their respective economic, financial, environmental, social, human rights and governance obligations and/or responsibilities.
• Good Faith: The Negotiating Parties intend to reach an agreement that takes account of all their rights, obligations and responsibilities.
• Optimality: The Negotiating Parties seek an “Optimal Outcome”, that addresses the circumstances in which the transaction is being negotiated, the parties’ respective rights, obligations and responsibilities, and offers them the best possible mix of economic, financial, environmental, social, human rights and governance costs and benefits.
• Inclusiveness: All creditors can participate in the restructuring process and the Affected Parties are able to make informed decisions about how it will impact them.
• Effectiveness: The Negotiating Parties should seek an Optimal Outcome in a timely and efficient manner.

Principle 2: Transparency: The Negotiating Parties and the Affected Parties should have access to the information that they need to make informed decisions regarding the debt restructuring.

The creditors have access to sufficient information that they can make informed decisions about the scope of the sovereign’s debt problems, the options for their resolution and their potential economic, financial, environmental, social, human rights and governance impacts.

The Affected Parties should also have access to sufficient information, subject to appropriate safeguards, that they can make informed decisions about how the restructuring may affect their rights and interests.

The creditors should inform the debtor and the Affected Parties about their environmental, social, and human rights obligations and responsibilities.

Principle 3: Due Diligence: The sovereign debtor and its creditors should each undertake appropriate due diligence before concluding a sovereign debt restructuring process.

The Negotiating Parties should utilize a debt sustainability analysis which credibly determines the sovereign’s debt restructuring needs and their impacts.

Principle 4: Optimal Outcome Assessment: At the earliest feasible moment, the Negotiating Parties should publicly disclose why they expect their restructuring agreement to result in an Optimal Outcome.

An Optimal Outcome requires the Negotiating Parties to assess the expected impacts of their proposed agreement on the economic, financial, environmental, social, human rights and governance condition of the sovereign borrower and the Affected Parties.

Principle 5: Monitoring: The restructuring process should incorporate credible mechanisms for monitoring the implementation of the restructuring agreement.

The Negotiating Parties should audit the financial aspects of the agreement and monitor its economic, social, environmental, human rights and governance impacts. This information should be published periodically.

Principle 6: Inter-Creditor Comparability: The restructuring process should ensure that all creditors make a comparable contribution to the restructuring of the sovereign’s debt.

The process should give creditors the confidence that all other creditors are making comparable contributions to an Optimal Outcome.

Principle 7: Fair Burden Sharing: An Optimal Outcome should share the burden of the restructuring fairly between Negotiating Parties and should not impose undue costs on any of the Affected Parties.

Both the debtor and the creditor bear some responsibility for causing debt crises and should absorb some of the restructuring costs. Moreover, they should seek to limit how much of the restructuring costs the Affected Parties will have to bear, considering their relative wealth and ability to absorb losses.

Principle 8: Maintaining Market Access: The restructuring agreement, to the greatest extent possible, should be designed to facilitate future market access for the borrower.

It is an unfortunate reality that debtor countries must seek financing from international financial markets. Thus, the Optimal Outcome should help the debtor regain access to financial markets as quickly as possible.

As the Zambian case demonstrates, the current arrangements for restructuring sovereign debt are sub-optimal. The DOVE Fund Principles seek to overcome this problem by offering both Negotiating and Affected Parties a common conceptual framework that facilitates a fair resolution of the crisis incorporating all its social, environmental, human rights, economic, financial and governance impacts.

They therefore can promote an Optimal Outcome.

Daniel D. Bradlow, Professor/Senior Research Fellow, Centre for the Advancement of Scholarship, University of Pretoria, South Africa
SSRN Author Home Page
www.chr.up.ac.za

For further information on this ongoing project, contact: danny.bradlow@up.ac.za
Business and Human Rights Journal articles for further reading:
1) “Social Bonds for Sustainable Development: A Human Rights Perspective on Impact Investing” Stephen Kim PARK Journal: Business and Human Rights Journal / Volume 3 / Issue 2 / July 2018 pp. 233-255
2) The Record of International Financial Institutions on Business and Human Rights
Jessica EVANS Journal: Business and Human Rights Journal / Volume 1 / Issue 2 / July 2016

IPS UN Bureau

 

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Carrying the Mayan flag, members of the Colibrí Collective lead a march against the Mayan Train in the city of Valladolid, in the southern Mexican state of Yucatán, in May 2023. The construction of the Mexican government’s most important megaproject has drawn criticism from affected communities due to its environmental, social and cultural effects. CREDIT: Arturo Contreras / Pie de Página

By Emilio Godoy
MEXICO CITY, May 18 2023 (IPS)

Mexico’s development banks have violated their own socio-environmental standards while granting loans for the construction of the Mayan Train (TM), the flagship project of the presidency of Andrés Manuel López Obrador.

The National Bank of Public Works and Services (Banobras), the Nacional Financiera (Nafin) bank and the Foreign Commerce Bank (Bancomext) allocated at least 564 million dollars to the railway line since 2021, according to the yearbooks and statements of the three state entities.

Banobras, which finances infrastructure and public services, granted 480.83 million dollars for the project in the Yucatan peninsula; Nafin, which extends loans and guarantees to public and private works, allocated 81 million; and Bancomext, which provides financing to export and import companies and other strategic sectors, granted 2.91 million.

Bancomext and Banobras did not evaluate the credit, while Nafin classified the information as “confidential”, even though it involves public funds, according to each institution’s response to IPS’ requests for public information.“(The banks) are committing internal violations of their own provisions in the granting of credits, in order to give loans to projects that are not environmentally viable and that do not respect the local communities.” -- Gustavo Alanís

The three institutions have environmental and social risk management systems that include lists of activities that are to be excluded from financing.

In the case of Bancomext and Nafin, these rules are mandatory during the credit granting process, while Banobras explains that its objective is to verify that the loans evaluated are compatible with the bank’s environmental and social commitments.

Bancomext prohibits 19 types of financing; Banobras, 17; and Nafin, 18. The three institutions all veto “production or activities that place in jeopardy lands that are owned by indigenous peoples or have been claimed by adjudication, without the full documented consent of said peoples.”

Likewise, Banobras and Nafin must not support “projects that imply violations of national and international conventions and treaties regarding the indigenous population and native peoples.”

The three entities already had information to evaluate the railway project, since the Superior Audit of the Federation, the state comptroller, had already pointed to shortcomings in the indigenous consultation process and in the assessment of social risks, in the 2019 Report on the Results of the Superior Audit of the Public Account.

The total cost of the TM has already exceeded 15 billion dollars, 70 percent above what was initially planned, mostly borne by the government’s National Fund for Tourism Promotion (Fonatur), responsible for the megaproject.

 

Mexico’s three state development banks are partially financing the Mayan Train, for which they have failed to comply with the due process of the evaluation of socio-environmental risks that are part of their regulations. The photo shows the clearing of part of the route of one of the branches of the railway line in the municipality of Playa del Carmen, in the southeastern state of Quintana Roo, in March 2022. CREDIT: Emilio Godoy / IPS

 

Violations

Angel Sulub, a Mayan indigenous member of the U kúuchil k Ch’i’ibalo’on Community Center, criticized the policies applied and the disrespect for the safeguards regulated by the state financial entities themselves.

“This shows us, once again, that there is a violation of our right to life, and there has not been at any moment in the process, from planning to execution, a will to respect the rights of the peoples,” he told IPS from the Felipe Carrillo Port, in the southeastern state of Quintana Roo, where one of the TM stations will be located.

Sulub, who is also a poet, described the consultation as a “sham”. “Respect for the consultation was violated in all cases, an adequate consultation was not carried out. They did not comply with the minimum information, it was not a prior consultation, nor was it culturally appropriate,” he argued.

In December 2019, the government National Institute of Indigenous Peoples (INPI) organized a consultation with indigenous groups in the region that the Mexican office of the United Nations High Commissioner for Human Rights questioned for non-compliance with international standards.

Official data indicates that some 17 million native people live in Mexico, belonging to 69 different peoples and representing 13 percent of the total population.

INPI initially anticipated a population of 1.5 million indigenous people to consult about the TM in 1,331 communities. But that total was reduced to 1.32 million, with no official explanation for the 12 percent decrease. The population in the project’s area of ​​influence totaled 3.57 million in 2019, according to the Superior Audit report.

The conduct of the three financial institutions reflects the level of compliance with the president’s plans, as has happened with other state agencies that have refused to create hurdles for the railway, work on which began in 2020 and which will have seven routes.

The Mayan Train, run by Fonatur and backed by public funds, will stretch some 1,500 kilometers through 78 municipalities in the states of Campeche, Quintana Roo and Yucatán, within the peninsula, as well as the neighboring states of Chiapas and Tabasco. It will have 21 stations and 14 other stops.

The Yucatan peninsula is home to the second largest jungle in Latin America, after the Amazon, and is notable for its fragile biodiversity. In this territory, furthermore, to speak of the population is to speak of the Mayans, because in a high number of municipalities they are a majority and 44 percent of the total are Mayan-speaking.

The government promotes the megaproject, whose locomotives will transport thousands of tourists and cargo, such as transgenic soybeans, palm oil and pork – key economic activities in the area – as an engine for socioeconomic development in the southeast of the country.

It argues that it will create jobs, boost tourism beyond the traditional attractions and energize the regional economy, which has sparked polarizing controversies between its supporters and critics.

The railway faces complaints of deforestation, pollution, environmental damage and human rights violations, but these have not managed to stop the project from going forward.

In November 2022, López Obrador, who wants at all costs for the locomotives to start running in December of this year, classified the TM as a “priority project” through a presidential decree, which facilitates the issuing of environmental permits.

Gustavo Alanís, executive director of the non-governmental Mexican Center for Environmental Law, questioned the way the development banks are proceeding.

“They are committing internal violations of their own provisions in the granting of credits, in order to give loans to projects that are not environmentally viable and that do not respect the local communities. They are not complying with their own internal guidelines and requirements regarding the environment and indigenous peoples in the granting of credits,” he told IPS.

 

Groups opposed to the Mayan Train protest along a segment of the megaproject in the municipality of Carrillo Puerto, in the southeastern state of Quintana Roo, on May 3. CREDIT: Arturo Contreras / Pie de Página

 

Trendy guidelines

In the last decade, socio-environmental standards have gained relevance for the promotion of sustainable works and their consequent financing that respects ecosystems and the rights of affected communities, such as those located along the railway.

Although the three Mexican development banks have such guidelines, they have not joined the largest global initiatives in this field.

None of them form part of the Equator Principles, a set of 10 criteria established in 2003 and adopted by 138 financial institutions from 38 countries, and which define their environmental, social and corporate governance.

Nor are they part of the Principles for Responsible Banking, of the United Nations Environment Program Finance Initiative, announced in 2019 and which have already been adopted by 324 financial and insurance institutions from more than 50 nations.

These standards address the impact of projects; sustainable client and user practices; consultation and participation of stakeholders; governance and institutional culture; as well as transparency and corporate responsibility.

Of the three Mexican development banks, only Banobras has a mechanism for complaints, which has not received any about its loans, including the railway project.

In this regard, Sulub questioned the different ways to guarantee indigenous rights in this and other large infrastructure projects.

“The legal fight against the railway and other megaprojects has shown us in recent years that, as peoples, we do not have effective access to justice either, even though we have clearly demonstrated violations of our rights. Although it is a good thing that companies and banks have these guidelines and that they comply with them, we do not have effective mechanisms for enforcement,” he complained.

In Sulub’s words, this leads to a breaching of the power of indigenous people to decide on their own ways of life, since the government does not abide by judicial decisions, which in his view is further evidence of an exclusionary political system.

For his part, Alanís warned of the banks’ complicity in the damage reported and the consequent risk of legal liability if the alleged irregularities are not resolved.

“If not, they must pay the consequences and hold accountable those who do not follow internal policies. The international banks have inspection panels, to receive complaints when the bank does not follow its own policies,” he stated.

Related Articles

• Mexican Environmental Prosecutor’s Office Dodges Charges against Mayan Train
• The Mayan Train and the Fight for Mexico’s Ancient Jungle
• Mayan Train Threatens to Alter the Environment and Communities in Mexico

By Yasmine Sherif
NEW YORK, May 17 2023 (IPS-Partners)

At this year’s G7 Hiroshima Summit in Japan, world leaders will have a chance to “uphold the international order based on the rule of law and extend outreach to the Global South.” Education, as a binding force that unites us all in our global efforts to protect human rights and ensure sustainable development, should be front and centre on the G7 Agenda.

Through the ground-breaking leadership of Japan, the G7 Summit promises to address a number of interconnected global crises – including nuclear disarmament and non-proliferation, economic resilience and security, climate and energy, food, health and development. By investing in education in emergencies and protracted crises through multilateral organizations such as Education Cannot Wait – the UN global fund for education in emergencies and protracted crises – the G7 has an opportunity to make targeted and responsive investments to these interconnected crises.

During my recent high-level mission to Japan, I was impressed and inspired by the Government of Japan’s growing interest in supporting ECW and our partners in delivering on our four-year strategic plan. In lead up to the G7 Summit, we call on Japan and all G7 global leaders to ensure that funding for education in emergencies is prioritized. There is no greater investment in our shared future.

Education is a key driver in building economic resilience, social cohesion and human security. By investing in an educated, skilled workforce, we are investing in greater economic growth, peace and security today and well into the future. Education for girls is especially critical. Every US$1 spent on girls’ rights and education generates US$2.80 in return. This is equivalent to billions of dollars in additional GDP.

By 2050, as many as 140 million people across South Asia, sub-Saharan Africa and Latin America could be displaced by climate change. By connecting climate action with education action, we have the opportunity to reduce risk, build resilience, and protect our planet from the life-threatening impacts of massive flooding, temperature rises, rising seas and other climate catastrophes.

The war in Ukraine has made the food crisis even more dangerous and painful, especially in places like Africa where recurrent droughts and other climate-related crises are triggering spikes in hunger and displacement. School feeding is essential in responding to famine and achieving our goals for a world without hunger, and good health and well-being for every girl and every boy on the planet. These are their inherent human rights, and this is our international obligation.

In taking a human-centred approach to sustainable development, we must ensure children receive holistic education opportunities, including mental health and psychosocial services, safe and protective learning environments, access to health and hygiene, and other whole-of-child solutions that will nurture the leaders of tomorrow.

By investing in education – especially for the 222 million crisis-affected girls and boys who are left furthest behind in armed conflicts, forced displacement and climate-disasters – the leaders of the G7 have an opportunity to make a mark on history and build a new world order based on universal values and human rights.

 

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Excerpt:

ECW Executive Director Yasmine Sherif Statement in advance of the G7 Hiroshima Summit

Washington says no US citizens were in the convoy attacked in the south-eastern Anambra state.

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In the original Hindu social structure, Dalits had the lowest social standing, and they continue to be regarded as being so impure in the majority of the states that caste Hindus view their presence as contaminating. For Christian Dalits, the situation is worse because they don't benefit from any government upliftment schemes. Credit: Umar ManzoorShah/IPS

By Umar Manzoor Shah
KARNATAKA, May 17 2023 (IPS)

Renuka Kumari is a 45-year-old Christian woman from the Dalit community in India’s northern state of Uttar Pradesh. She faces numerous challenges every day and hopes for a day when her struggles will end and she can lead a comfortable life.

Her husband, Subhash Kumar, sells the handmade brooms she makes from trees in the open market to earn a living. Living in makeshift hutments, Kumari’s family’s meagre income makes it difficult to make ends meet.

In the original Hindu social structure, the Dalits had the lowest social standing, and they continue to be regarded as being so impure in the majority of the states that caste Hindus view their presence as contaminating. Many Hindus consider their vocations debasing, such as dealing with leather, night soil, and other filthy work, which accounts for their unclean status in society.

Kumari has two children who study in a nearby government school, and she wants them to receive an education and eventually earn a good living. However, Kumari says that society and the government leave her family in dire straits because of their Christian faith. She believes that Dalits who practice other religions receive government grants, health and education benefits, and reservations in government jobs, but as Christians, they are overlooked.

Despite being economically disadvantaged, Kumari’s family does not qualify for government schemes. Her husband, Subhash Kumar, says that they earn no more than 5000 rupees (USD 80) a month and providing their children with a good education is challenging without government support. Dalit Christians are discriminated against and denied benefits solely because of their faith, adding to their struggles.

Background of Discrimination

After India gained independence from British rule in 1947, the government introduced significant initiatives to uplift the lower castes. These initiatives included reserving seats in various legislatures, government jobs, and enrolment in higher education institutions. The reservation system was implemented to address the historic oppression, inequality, and discrimination experienced by these communities and to provide them with representation. The aim was to fulfil the promise of equality enshrined in the country’s constitution.

On August 11, 1950, the President of India issued the Constitution (Scheduled Castes Order, which provided members of Scheduled Castes with various rights as outlined in Article 341(1) of the Indian Constitution. However, the third paragraph of the order stated that “no person who professes a religion different from Hinduism shall be deemed to be a member of a Scheduled Caste”.

In 1956, Dalit Sikhs demanded inclusion in the Constitution (Scheduled Castes) Order, 1950 and were successful in getting listed in the Presidential SC/ST Order, 1950, through an amendment to Para 3 of Article 341. Dalit Buddhists were also included through an amendment to Para 3 of Article 341 in 1990.

Christians and Muslims of Dalit origin now demand that they get social welfare benefits meant to uplift Dalit people. Both communities have been denied these benefits since 1950 because the government says their religions do not follow the ancient Hindu-caste system.

Legal angles

Nearly 14 Christian organisations in India have filed petitions in the country’s Supreme Court requesting reservations in education and employment for the 20 million Dalit Christians, who account for 75 percent of the total Christian population in India. In India, people are segregated into various castes based on birth, and 80% of the population is Hindu. Although parliament outlawed the practice of untouchability in 1955, India’s lower castes, particularly Dalits, continue to face social discrimination and exclusion.

In April this year, the Supreme Court of India requested that the federal government take a stance on granting reservation benefits in government jobs and educational institutions to Christian converts among the Dalits. The court is scheduled to hear the petition and decide on the status of Dalit Christians.

The Indian government had formed a committee to investigate the possibility of granting Scheduled Caste status to those who had converted to other religions but claimed to have belonged to the community historically. This was the second panel set up by the government after it rejected the recommendations of the first commission, which had recommended including them.

According to Tehmina Arora, a prominent Christian activist and advocate in India, it goes against the core secular values of the country to deny rights to individuals solely based on their religious beliefs. Arora emphasised that even if individuals convert to Christianity or Islam, they continue to live in the same communities that treat them as untouchables, and their circumstances do not change. Therefore, she believes people should not be denied the benefits they previously had due to their faith.

God is Our Hope

Renuka Kumari shares that she prays for her children’s success every day, hoping that God will help them excel in life. She laments that their entitlements are denied solely because they chose Christianity as their faith. She finds it ironic that they are denied government grants for this reason, causing them to live miserable lives and struggle every day to provide their children with education and a better future. Kumari’s two children, Virander and Prerna, are currently in the second and seventh grades. Sujata aspires to become a teacher one day and is passionate about mathematics. She dreams of teaching at her school, just like her favourite teacher, and is particularly fond of algebra.

IPS UN Bureau Report

 

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By Greg Hanna
May 17 2023 (IPS)

 
An impressive list of cutting-edge ocean researchers from across Canada are set to gather at the Ocean Frontier Institute’s (OFI) researchers’ conference.

Held biennially, this year’s conference will take place from May 23-27 in St. John’s, Newfoundland and Labrador.

The conference serves as a platform to showcase advancements in ocean science, share new research data and discoveries, identify gaps and opportunities in our understanding of the ocean, engage with colleagues, and showcase their work to both the scientific community and the wider public.

Researcher collecting samples in the Atlantic

Featured projects include those funded through the 2016 Canada First Research Excellence Fund (CFREF),which is administered by OFI. Over the years, OFI has supported a portfolio of24 large research projects, 127 Seed Fund projects, and seven Opportunities Fund projects – all dedicated to ocean research and training.

This research has provided crucial scientific frameworks for the development of ocean policy and innovation.

Covering a wide range of ocean studies, the research projects undertaken so far have delved into various areas, including ocean observations, sustainable fisheries, environmental protection, governance, data management, and more. A comprehensive overview of these research achievements can be found in the recently released OFI Community Report.

While the Community Report sheds light on the remarkable accomplishments supported by OFI, the gathering in Newfoundland offers an opportunity to delve deeper into the work of these researchers.

Students doing research out in the field

This year, the research conference is being held in conjunction with OFI’s Seed Fund Day, which presents a valuable chance for ocean-related Seed Fund projects to showcase their innovative work and identify new opportunities for collaboration.

For a full conference agenda, visit this webpage.

For details on applying to the Seed Fund, visit this webpage.

The US dollar's supremacy in the international financial system has long been beyond question. But countries like Brazil are attempting to break away.

By Monica Hirst and Juan Gabriel Tokatlian
RIO DE JANEIRO, Brazil / BUENOS AIRES, Argentina, May 17 2023 (IPS)

Half a century ago, the dominance of the United States dollar in the international finance and trade system was indisputable.

By 1977, the US dollar reached a peak of 85 per cent as the prevailing currency in foreign exchange reserves; in 2001, this position was still around 73 per cent. But today, it is at approximately 58 per cent.

The dominance of the dollar and the hegemonic position of the United States have for long been intertwined. And the recent global transformations are affecting American’s ability to sustain this: the gradual movement of the centre of gravity from the West to the East, the unravelling complexities of US domestic politics, the growing muscle of the international projection of China and an international assertiveness among the countries of the Global South have restrained the American dollar’s supremacy and status.

And yet, the currency still holds by far the largest share of global trade, foreign exchange transactions, SWIFT payments and debt issued outside the United States. In fact, Western financial agents, government officials and renowned experts tend to downplay the so-called de-dollarization arguing that a relatively debilitated dollar doesn’t necessarily mean its demise.

Notwithstanding controversial standpoints, it is undeniable that the world system faces more complex, diverse and plural challenges that involve currency competition and new inventive financial pathways.

Resistance against the US Dollar

The so-called de-dollarization in global finance has its landmarks. The launch of the Euro in 1999 was crucial since the European currency, by now, represents 20 per cent of the global foreign exchange reserves. By the dawn of the 21st century, an Asian Currency Unit came to life as well: it represented a salad bowl of 13 currencies from East Asian nations (ASEAN 10 plus Japan, China and South Korea).

Along with the successful spill overs of economic regionalisation, Western-led geopolitics also came to be a source of global financial novelties that affected the US dollar’s pre-eminence.

The growing recourse to a sanction regime against countries such as Iran, especially since 2006, and Russia after the 2014 annexation of Crimea, encouraged alternative currency arrangements. As of today, Washington’s sanctions policy punishes 22 nations.

The invasion of Ukraine by Russia in 2022 and the extension of sanctions hampering the use of the US dollar encouraged even more de-dollarized practices. In response to the decision to disconnect Russia from SWIFT, Moscow advanced bilateral fuel transactions with partial payment in Rubles.

Simultaneously, Russia and a group of African countries initiated talks to establish settlements in national currencies, discontinuing both the US dollar and the Euro. Meanwhile, China is trying to insulate itself from the West and is attempting to internationalise the Renminbi, even though it represents less than 3 per cent of the official reserves worldwide.

Moscow and Beijing are coming closer in terms of financial cooperation, France and Saudi Arabia agreed to use the Renminbi in certain oil and gas deals, while Bangladesh became the 19th country to commerce with India in Rupees.

Last but not least, a gold rush is also picking up. As Ruchir Sharma has recently observed, key buyers are now central banks, which are procuring ‘more tons of gold now than at any time since data begins in 1950 and currently account for a record 33 per cent of monthly global demand for gold […] and 9 of the top 10 are in the developing world.’

Besides, some African nations seem willing to trade in currencies backed by rare-earth metals. In the Global South, in fact, there is a growing perception that de-dollarization is a step towards a multipolar world in which new actors, interests and rules interplay. In that sense, it is becoming evident that a multi-currency trading regime is slowly emerging.

How Brazil ‘de-dollarizes’

De-dollarization has been included in Brazil’s foreign policy strategy. Since the inauguration of his third mandate, President Lula da Silva rapidly disclosed the intention of overcoming his discrepancies with Western rule-setting. An adjourned narrative that contests the Global North’s preponderance in the World Order has resurfaced.

Demands for inclusive reforms in global governance, the condemnation of geopolitical worldviews leading to securitised methods and military escalation, and the questioning of the Dollar’s dominance in international trade and finance have arisen. In the present context of tensions and rivalries between the Great Powers, Brazil strives to speak of an autonomous voice of the Global South.

And thus, Lula has tried to promote peace in Ukraine on the basis of negotiations that recognise the voices of all parties involved in the war.

Lula’s de-dollarization standing has been stimulated by Brazil’s association with the BRICS, as well as its expanded bilateralism with China. The continuously record-breaking Brazilian-Chinese trade relationship reached a peak of $150,5 bn in 2022 (while the Russia-China trade relationship for the same year was $190,2 bn).

As bilateral ties are expanding further, during Lula’s recent state visit to China, novel settlements are being negotiated, aiming to put trade and financial operations on track directly with Chinese Renminbi and Brazilian Reais.

Concurrently, the Brazilian government has decided to use the New Development Bank (NDB), the BRICS’ multilateral bank, as a platform to defend a de-dollarized trade system among its members and with the countries that benefit from NDB credit lines.

By positioning former Brazilian President Dilma Rousseff as the head of the bank, Lula has upgraded the Brazilian political commitment to this frontline. Most certainly, this will become a reiterated pledge in Brazil’s performance in global governance arenas, with mention to its 2024 presidency of the G20.

It is remarkable how the Lula government has sought a prudent strategy balancing its anti-dollar hegemony signals among its BRICS partners with a constructive presence in a dollar-dominating terrain such as the Interamerican Development Bank (IDB).

By holding the presidency of the IDB since last December, supporting the candidacy of Brazilian ex-IMF official Illan Goldfajn, Brazil has stretched its footprint in international finance from Washington to Shanghai.

Beyond Brazil

Brazil has made a first attempt to bring in the de-dollarization card to its South American neighbourhood, particularly together with Argentina. Last February, bilateral talks took off to begin working on a common currency project that could reduce reliance on the US dollar. This could mean ingraining de-dollarization within the MERCOSUR area.

Following Brazil’s example, Argentina has started to consider the use of the Renminbi in its trade with Beijing. For Brazil, these are moves that could, step-by-step, lead to a regional financial terrain with relative distance from US dollar dominance. However, ongoing macroeconomic turbulences in Argentina, together with an extremely low level of foreign exchange reserves, will surely obstruct these plans in the short term.

Besides, more than two will be needed to tango. If a sustained economic recovery of Argentina takes place, Brazil will need to assure the support of extra-regional, heavyweight, non-Western actors, particularly China and India, in investment and trade flows to trigger a renewed insertion of MERCOSUR into the world economy.

De-dollarization could become a part, among others, of a dynamic reconfiguration of financial and productive intersections of Brazil and its neighbours with other regions and economic powerhouses of the global economy. Needless to say, this is a long-term strategy. The key consideration is the role of South America, that, in the near future, may play into the promotion of a multi-currency trading regime.

For now, while a strident flag of Lula’s presidential diplomacy, Brazilian ties with the US Dollar can be reduced but remain of unquestionable relevance. Decision-making in Brazil is conducted by a complex inter-ministerial web responsible for the states’ international sector that cannot avoid the influence of key production segments in the private sector.

Thus, transforming the Brazilian international financial modus operandi will depend on major accommodations that cannot overlook a broad domestic negotiation process, particularly if conjoined with the strengthening of democracy.

Monica Hirst is a research fellow at the National Institute for Science and Technology Studies in Brazil; Juan Gabriel Tokatlian is Provost at the Torcuato Di Tella University, Buenos Aires, Argentina.

Source: International Politics and Society (IPS), published by the Global and European Policy Unit of the Friedrich-Ebert-Stiftung, Hiroshimastrasse 28, D-10785 Berlin.

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