Africa

By Jomo Kwame Sundaram and Siti Maisarah Zainurin
KUALA LUMPUR, Malaysia, Aug 28 2024 (IPS)

Oxfam expects the world’s first trillionaire within a decade and poverty to end in 229 years! The wealth of the world’s five richest men has more than doubled from 2020, as 4.8 billion people became poorer.

Jomo Kwame Sundaram

The 2024 Oxfam report entitled Inequality Inc. warned, “We’re witnessing the beginnings of a decade of division” as billions cope with the “pandemic, inflation and war, while billionaires’ fortunes boom”.

“This inequality is no accident; the billionaire class is ensuring corporations deliver more wealth to them at the expense of everyone else”, noted Oxfam International’s Amitabh Behar.

Driving inequality
Summarising the report, Tanupriya Singh noted gaps between rich and poor, and between wealthy nations and developing countries had grown again for the first time in the 21st century as the super-rich became much richer.

The Global North has 69% of all wealth worldwide and 74% of billionaire riches. Oxfam notes contemporary wealth concentration began with colonialism and empire.

Since then, “neo-colonial relationships with the Global South persist, perpetuating economic imbalances and rigging the economic rules in favour of rich nations”.

The report notes, “economies across the Global South are locked into exporting primary commodities, from copper to coffee, for use by monopolistic industries in the Global North, perpetuating a colonial-style ‘extractivist’ model”.

Siti Maisarah Zainurin

Inequalities within rich nations have grown, with marginalised communities worse off, giving rise to rival ethno-populisms and vicious identity politics.

Seventy per cent of the world’s largest corporations have a billionaire as principal shareholder or chief executive. These firms are worth over $10 trillion, which exceeds the total output of Latin America and Africa.

The incomes of the rich have grown much faster than for most others. Hence, the top 1% of shareholders own 43% of financial assets worldwide – half in Asia, 48% in the Middle East, and 47% in Europe.

Between mid-2022 and mid-2023, 148 of the world’s largest corporations made $1.8 trillion in profits. Meanwhile, 82% of 96 large corporations’ profits went to shareholders via stock buybacks and dividends.

Only 0.4% of the world’s largest companies have agreed to pay minimum wages to those contributing to their profits. Unsurprisingly, the poorer half of the world earned only 8.5% of world income in 2022.

The wages of almost 800 million workers have not kept up with inflation. In 2022 and 2023, they lost $1.5 trillion, equivalent to an average of 25 days of lost wages per employee.

In addition to income inequality, the 2024 Oxfam Report noted workers face mounting challenges due to stressful workplace conditions.

The gap between the incomes of the ultra-rich and workers is so huge that a female health or social worker would need 1,200 years to earn what a Fortune 100 company CEO makes annually!

Besides lower wages for women, unpaid care work subsidises the world economy by at least $10.8 trillion yearly, thrice what Oxfam terms ‘tech industry’.

Monopoly power
Oxfam notes that monopoly power has worsened world inequality. Thus, a few corporations influence and even control national economies, governments, laws, and policies in their own interest.

An International Monetary Fund (IMF) study found monopoly power responsible for 76% of the fall in the labour share of US manufacturing income.

Behar noted, “Monopolies harm innovation and crush workers and smaller businesses. The world hasn’t forgotten how pharma monopolies deprived millions of people of COVID-19 vaccines, creating a racist vaccine apartheid while minting a new club of billionaires”.

Between 1995 and 2015, 60 pharmaceutical companies merged into ten Big Pharma giants. Although innovation is typically subsidised with public funds, pharmaceutical monopolies price-gouge with impunity.

Oxfam notes the Ambani fortune in India comes from monopolies in many sectors enabled by the Modi regime. Ambani’s son’s recent extravagant wedding celebrations flaunted extreme wealth concentration worldwide.

The 2021 Oxfam report estimated that “an unskilled worker would need 10,000 years to earn what Ambani made in an hour during the pandemic and three years to earn what he made in a second”.

Unsurprisingly, the 2023 Oxfam Report noted, “India’s richest 1% own around 40% of the country’s wealth, while over 200 million people continue to live in poverty”.

Fiscal subordination
Corporations have increased their value through a “sustained and highly effective war on taxation … depriving the public of critical resources”.

As many corporations increased their profits, the average corporate tax rate dropped from 23% to 17% between 1975 and 2019. Meanwhile, around a trillion dollars went into tax havens in 2022 alone.

Of course, falling corporate tax rates are also due to “the broader neoliberal agenda promoted by corporations and their wealthy owners, often alongside Global North countries and international institutions such as the World Bank”.

Meanwhile, pressures for fiscal austerity have grown as government tax revenue has declined relatively for decades. High government indebtedness with corporate tax evasion and avoidance have exacerbated austerity policies.

Underfunded public services have adversely affected consumers and employees, especially health and social protection. Higher interest rates have worsened debt crises in developing nations.

With governments fiscally constrained from sustaining public services, privatisation advocates have become more influential, gaining greater control of public resources by various means.

Private corporations profit from discounted public asset sales, public-private partnerships and government contracts to deliver public policies and programmes.

“Major development agencies and institutions… have found common ground with investors by embracing approaches that ‘de-risk’ such arrangements by shifting financial risk from the private to the public sector”, the report states.

Access to essential public services should be universal. Insisting on private profit-making considerations deprives marginalised communities of access, worsening inequalities.

Siti Maisarah Zainurin will join a Malaysian government research institute after completing work at Khazanah Research Institute.

IPS UN Bureau

 

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A series of covert operations target a feared Nigerian cyber-crime network with a global reach.

A series of covert operations target a feared Nigerian cyber-crime network with a global reach.

A series of covert operations target a feared Nigerian cyber-crime network with a global reach.

A series of covert operations target a feared Nigerian cyber-crime network with a global reach.

By Anis Chowdhury, Khalilur Rahman and Ziauddin Hyder
SYDNEY, NEW YORK, WASHINGTON DC, Aug 27 2024 (IPS)

Bangladesh bleeds as over US$3 billion drains from Bangladesh annually through offshore accounts. According to a recent report, close to US$150 was siphoned off the country during 15 years of kleptocratic Hasina regime’s mis-rule. Nearly US$50 billion went out of the country in the first six years (2009-2015) of the Hasina regime.

Anis Chowdhury

Urgent action is needed not only to stop this fatal bleeding, but also to recover the country’s stolen wealth.

Corruptions and illicit transfer of funds
Bangladesh has been a fertile ground for corruption and usurpation of public money. A 2011 UNDP report ranked Bangladesh at the top along with Angola among least developed countries (LDCs) for “illicit financial flows”.

Corruption and illicit transfer of funds reached an unprecedented level during the fallen Sheikh Hasina’s autocratic regime as the regime’s survival became increasingly reliant on letting its cronies and kleptocrats rob banks. A staggering US$8.4 billion was misappropriated from banks alone through irregularities, misuse of powers, and money laundering.

Another major source of corruption by kleptocrats has been grossly inflated aid- and foreign debt-funded mega projects. Tax evasion by politically connected elites has been a major source of revenue loss, estimated at US$703 million a year.

A 2017 Global Financial Integrity Report found illicit financial flows from Bangladesh the highest among LDCs. On average as much as US$8.3 billion per year has been laundered from Bangladesh through trade mis-invoicing alone – by inflating import price and under-pricing exports – between 2009 and 2018.

Khalilur Rahman

Besides using “hundi”, criminals also use their children studying abroad as “money mules” to transfer illegally acquired wealth. Various schemes, such as “golden visa”, “second home”, of destination countries like Canada, Portugal, Australia, Malaysia, Dubai – also provide easy means to launder illegally gained wealth.

It is reported that 252 Bangladeshi bureaucrats, police and other officials bought houses in the United States by laundering the country’s money. Bangladeshis top the list of foreign buyers of real estates in Dubai. Canada’s “Begumpara” has become the “forbidden paradise” of wealthy Bangladeshis. One ex-minister of the previous regime alone owns 350 properties, worth approximately over US$264 million, in the UK.

The offshore financial wealth of Bangladeshis is estimated at 0.7% of the nation’s GDP. Illicit fund transfer from Bangladesh is estimated at 2.2% of the country’s total revenue in fiscal year 2019-20, and deprives Bangladesh of over US$700 million worth of revenue income.

Kleptocracy: Rule by thieves
Under Sheikh Hasina, state institutions served regime elites or kleptocrats to exploit citizens. This undermined democratic norms and weakened economy’s foundation. Kleptocrats often stash their ill-gotten gains outside the country.

Ziauddin Hyder

Had the ill-gotten money remained and invested in the country, the economy would have at least benefitted even though at the cost of rising disparities and misgovernance. However, with such a large illicit outflow of funds, the country has the worst of both – an increasingly precarious economy, unable to create productive and decent jobs for a growing youth population, and inequality of income and wealth rapidly growing to an obnoxious level – while all state institutions are captured by regime’s partisans.

Recovering stolen wealth for sustainable development
Corruption and illicit transfer of funds are a major drag on development. Therefore, asset recovery is included in the Sustainable Development Goals (SDG) under Goal 16.4 and in the commitments under the Addis Ababa Action Agenda on Financing for Development.

The recovery of stolen assets is a fundamental principle of the UN Convention against Corruption. Chapter V of the convention provides a framework for the return of stolen assets, requiring states parties to take measures to restrain, seize, confiscate, and return the proceeds of corruption.

However, there is no single international authority responsible for recovering laundered money. Several mechanisms and institutions work together to address this issue. There are a number of international laws and conventions that can be used to claim laundered money. These agreements provide a framework for cooperation between countries in combating money laundering, terrorist financing, and other financial crimes.

Bangladesh can seek assistance of the United Nations, the World Bank and Interpol. The United Nations Office on Drugs and Crime (UNODC) and the World Bank have a joint Stolen Asset Recovery Initiative (StAR) to support international efforts to end safe havens for corrupt funds. Since its establishment in 2007, StAR has assisted over 35 countries in drafting legal frameworks, setting up the institutional structure, and building the skills necessary to trace and return stolen assets.

Interpol assists countries to recover and return assets obtained corruptly. Interpol works closely with a number of national, regional and international bodies such as the International Anti-Corruption Coordination Centre, which brings together specialist law enforcement officers from multiple agencies around the world to tackle allegations of grand corruption and help bring corrupt elites to justice.

Political will is critical
The recovery and return of criminal assets is a complex process. It can take many different shapes, depending on the type of corruption offense, how the recovery effort is initiated and by whom. It also depends on whether a criminal conviction exists in the state of origin, whether criminal or civil process is used – or both; as well as which legal mechanisms to restrain assets are available in the destination state. Whether the state harmed by corruption has requested a return of their stolen assets is fundamentally important.

However, the most critical factor is political will. Collusive abuse of power is the most important reasons why nothing happens to the perpetrators of high-level corruption and illicit transfer of funds.

Bangladesh itself has the Money Laundering Prevention Act, which criminalises laundering and authorises the confiscation of laundered assets. Bangladesh has also signed mutual legal assistance treaties (MLATs) with other countries.

Sadly, the country does not effectively use any of the tools to recover laundered money, whether during Hasina’s autocratic rule or prior to it. Bangladesh is yet to sign MLATs with popular money laundering destinations – Australia, Canada, Cyprus and Switzerland.

Time to act now
The leading national dailies have recently carried editorials highlighting the urgent need to recovering the country’s smuggled money. Politicians are also raising the issue with important countries, such as Switzerland. The President of the Bangladesh Economic Association has urged for the formation of a separate commission to stop corruption, money laundering and recovery of undisclosed money.

There is also momentum in some destination countries. For example, Sheikh Hasina’s niece, Tulip Siddiq, a British Bangladeshi Labour Party lawmaker and a minister, is being investigated by the UK parliament’s standards for a London property.

Bangladeshi diaspora community has been active in exposing money laundering and real estate investments by corrupt Bangladeshi politicians and elites in various countries; and is campaigning to confiscate their assets.

Thus, there is a momentum; and the interim government must act now. This is the best opportunity for the country to recover its billions of dollars of stolen asset. The head of the interim Government, Professor Yunus, must use his international standing and good will to request the United Nations, the Interpol and destination countries to assist Bangladesh in this regard.

The interim Government should also initiate MLATS with missing popular destination countries and become a party to the OECD’s Convention on Mutual Administrative Assistance in Tax Matters and “Common Reporting Standard”. This will allow Bangladesh to obtain the bank account and other financial information of Bangladeshis living in the signatory countries.

Anis Chowdhury, Emeritus Professor, Western Sydney University (Australia) & former Director of UN-ESCAP’s Macroeconomic Policy & Development Division.

Khalilur Rahman, former Secretary of the UN Secretary-General’s High-level Panel on Technology Bank for LDCs; former head of UNCTAD’s Trade Analysis Branch and its New York Office.

Ziauddin Hyder, Former Director Research BRAC and Adjunct Professor, University of the Philippines at Los Banos

Vaccines are arriving in Africa - the heart of the outbreak - weeks after it was declared a health emergency.

Vaccines are arriving in Africa - the heart of the outbreak - weeks after it was declared a health emergency.

Vaccines are arriving in Africa - the heart of the outbreak - weeks after it was declared a health emergency.

Vaccines are arriving in Africa - the heart of the outbreak - weeks after it was declared a health emergency.

Vaccines are arriving in Africa - the heart of the outbreak - weeks after it was declared a health emergency.

Vaccines are arriving in Africa - the heart of the outbreak - weeks after it was declared a health emergency.

Vaccines are arriving in Africa - the heart of the outbreak - weeks after it was declared a health emergency.

A vessel is suspected to be carrying military cargo intended for Israeli use in the ongoing war in Gaza.

Credit: Freedom House

By Liam Scott
WASHINGTON, Aug 27 2024 (IPS)

At least 55 governments in the past decade have restricted the freedom of movement for people they deem as threats, including journalists, according to a Freedom House report published last Thursday.

Governments control freedom of movement via travel bans, revoking citizenship, document control and denial of consular services, the report found. All the tactics are designed to coerce and punish government critics, according to Jessica White, the report’s London-based co-author.

“This is a type of tactic that really shows the vindictive and punitive nature of some countries,” White said. This form of repression “is an attempt to really stifle peoples’ ability to speak out freely from wherever they are.”

Belarus, China, India, Nicaragua, Russia, Rwanda and Saudi Arabia are among the countries that engage in this form of repression, the report found. Freedom House based its findings in part on interviews with more than 30 people affected by mobility controls.

Travel bans are the most common tactic, according to White, with Freedom House identifying at least 40 governments who prevent citizens leaving or returning to the country.

Revoking citizenship is another strategy, despite being prohibited by international law. The Nicaraguan government in 2023 stripped more than 200 political prisoners of their citizenship shortly after deporting them to the United States.

Among them were Juan Lorenzo Holmann, head of Nicaragua’s oldest newspaper, La Prensa. “It is as if I do not exist anymore. It is another attack on my human rights,” he told VOA after being freed. “But you cannot do away with the person’s personality. In the Nicaraguan constitution, it says that you cannot wipe out a person’s personal records or take away their nationality. I feel Nicaraguan, and they cannot take that away from me.”

Before being expelled from his own country, Lorenzo had spent 545 days in prison, in what was widely viewed as a politically motivated case.

Blocking access to passports and other travel documents is another tactic. In one example, Hong Kong in June canceled the passports of six pro-democracy activists who were living in exile in Britain.

In some cases, governments refuse to issue people passports to trap them in the country. And in cases where the individual is already abroad, embassies deny passport renewals to block the individual from traveling anywhere, including back home.

Myanmar’s embassy in Berlin, for instance, has refused to renew the passport of Ma Thida, a Burmese writer in exile in Germany. Ma Thida told VOA earlier this year she believes the refusal is in retaliation for her writing.

White said Ma Thida’s case was a classic example of mobility restrictions. For now, the German government has issued a passport reserved for people who are unable to obtain a passport from their home country — which White applauded but said is still rare.

“Our ability to freely leave and return to our home country is something that in democratic societies, people often take for granted. It’s one of our fundamental human rights, but it’s one that is being undermined and violated across many parts of the world,” White said.

Mobility restrictions can have devastating consequences, including making it difficult to work, travel and visit family. What makes matters even worse is the emotional toll, according to White.

“There is a huge psychological impact,” White said. “A lot of our interviewees mention especially the pain of being separated from family members and not being able to return to their country.”

In the report, Freedom House called on democratic governments to impose sanctions on actors that engage in mobility controls.

White said that democratic governments should do more to help dissidents, including by providing them with alternative travel documents if they can’t obtain them from their home countries.

https://freedomhouse.org/sites/default/files/2024-02/FIW_2024_DigitalBooklet.pdf

Source: Voice of America (VOA)

IPS UN Bureau

 

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Where is Africa likely to pick up medals at the Paris 2024 Paralympics and who are the competitors from the continent to watch?

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Where is Africa likely to pick up medals at the Paris 2024 Paralympics and who are the competitors from the continent to watch?

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The Super Eagles have chosen German Bruno Labbadia as their new men's head coach ahead of the 2025 Africa Cup of Nations qualifying campaign.