Opinion by Ines M Pousadela, Andrew Firmin (london / montevideo)
Inter Press Service
LONDON / MONTEVIDEO, Mar 29 (IPS) – Brave protests against women’s second-class status in Iran; the mass defence of economic rights in the face of a unilateral presidential decision in France; huge mobilisations to resist government plans to weaken the courts in Israel: all these have shown the willingness of people to take public action to stand up for human rights.
The world has seen a great wave of protests in 2022 and 2023, many of them sparked by soaring costs of living. But these and other actions are being met with a ferocious backlash. Meanwhile multiple conflicts and crises are intensifying threats to human rights.
Vast-scale human rights abuses are being committed in Ukraine, women’s rights are being trampled on in Afghanistan and LGBTQI+ people’s rights are under assault in Uganda, along with several other countries. Military rule is again being normalised in multiple countries, including Mali, Myanmar and Sudan, and democracy undermined by autocratic leaders in El Salvador, India and Tunisia, among others. Even supposedly democratic states such as Australia and the UK are undermining the vital right to protest.
But in the face of this onslaught civil society continues to strive to make a crucial difference to people’s lives. It’s the force behind a wave of breakthroughs on g abortion rights in Latin America, most recently in Colombia, and on LGBTQI+ rights in countries as diverse as Barbados, Mexico and Switzerland. Union organising has gained further momentum in big-brand companies such as Amazon and Starbucks. Progress on financing for the loss and damage caused by climate change came as a result of extensive civil society advocacy.
The latest State of Civil Society Report from CIVICUS, the global civil society alliance, presents a global picture of these trends. We’ve engaged with civil society activists and experts from around the world to understand how civil society is responding to conflict and crisis, mobilising for economic justice, defending democracy, advancing women’s and LGBTQI+ rights, calling for climate action and urging global governance reform. These are our key findings.
Civil society is playing a key role in responding to conflicts and humanitarian crises – and facing retaliation
Civil society is vital in conflict and crisis settings, where it provides essential services, helps and advocates for victims, monitors human rights and collects evidence of violations to hold those responsible to account. But for doing this, civil society is coming under attack.
Catastrophic global governance failures highlight the urgency of reform
Too often in the face of the conflicts and crises that have marked the world over the past year, platitudes are all international institutions have had to offer. Multilateral institutions have been left exposed by Russia’s invasion of Ukraine. It’s time to take civil society’s proposals to make the United Nations more democratic seriously.
People are mobilising in great numbers in response to economic shock – and exposing deeper problems in the process
As it drove a surge in fuel and food prices, Russia’s war on Ukraine became a key driver of a global cost of living crisis. This triggered protests in at least 133 countries where people demanded economic justice. Civil society is putting forward progressive economic ideas, including on taxation, connecting with other struggles for rights, including for climate, gender, racial and social justice.
The right to protest is under attack – even in longstanding democracies
Many states, unwilling or unable to concede the deeper demands of protests, have responded with violence. The right to protest is under attack all over the world, particularly when people mobilise for economic justice, democracy, human rights and environmental rights. Civil society groups are striving to defend the right to protest.
Democracy is being eroded in multiple ways – including from within by democratically elected leaders
Economic strife and insecurity are providing fertile ground for the emergence of authoritarian leaders and the rise of far-right extremism, as well for the rejection of incumbency. In volatile conditions, civil society is working to resist regression and make the case for inclusive, pluralist and participatory democracy.
Disinformation is skewing public discourse, undermining democracy and fuelling hate
Disinformation is being mobilised, particularly in the context of conflicts, crises and elections, to sow polarisation, normalise extremism and attack rights. Powerful authoritarian states and far-right groups provide major sources, and social media companies are doing nothing to challenge a problem that’s ultimately good for their business model. Civil society needs to forge a joined-up, multifaceted global effort to counter disinformation.
Movements for women’s and LGBTQI+ rights are making gains against the odds
In the face of difficult odds, civil society continues to drive progress on women’s and LGBTQI+ rights. But its breakthroughs are making civil society the target of a ferocious backlash. Civil society is working to resist attempts to reverse gains and build public support to ensure that legal changes are consolidated by shifts in attitudes.
Civil society is the major force behind the push for climate action
Civil society continues to be the force sounding the alarm on the triple threat of climate change, pollution and biodiversity loss. Civil society is urging action using every tactic available, from street protest and direct action to litigation and advocacy in national and global arenas. But the power of the fossil fuel lobby remains undimmed and restrictions on climate protests are burgeoning. Civil society is striving to find new ways to communicate the urgent need for action.
Civil society is reinventing itself to adapt to a changing world
In the context of pressures on civic space and huge global challenges, civil society is growing, diversifying and widening its repertoire of tactics. Much of civil society’s radical energy is coming from small, informal groups, often formed and led by women, young people and Indigenous people. There is a need to support and nurture these.
We believe the events of the past year show that civil society – and the space for civil society to act – are needed more than ever. If they really want to tackle the many great problems of the world today, states and the international community need to take some important first steps: they need to protect the space for civil society and commit to working with us rather than against us.
Andrew Firmin is CIVICUS Editor-in-Chief. Inés M. Pousadela is CIVICUS Senior Research Specialist. Both are co-directors and writers of CIVICUS Lens and co-authors of the State of Civil Society Report.
A group of children smile in Ismail Bhand village in Pakistan’s Shaheed Benazirabad district, Sindh province. Credit: UNICEF/Shehzad Noorani
Opinion by Maniza Habib (washington dc)
Inter Press Service
WASHINGTON DC, Mar 28 (IPS) – International family planning and reproductive health (FP/RH) are critical to achieving gender equity, but U.S. investment in them is not nearly sufficient to meet the moment.
The Biden-Harris FY2024 budget request proposes to invest $619.43 million for bilateral FP/RH programs plus $57.5 million for the United Nations Population Fund (UNFPA)– a total of $676.8 million. That’s 11% more than Congress appropriated last year, and it’s one of the only proposed funding increases in the global health sector this year, yet it’s still just a fraction of what’s needed.
The fair-share U.S. contribution, i.e. what it would need to contribute proportionately to ensure the all women of reproductive age in low- and middle-income countries (LMICs) have their modern contraception needs met, is calculated to be $1.736 billion.
Family planning gives people control over their own bodies and futures. At its core, it’s about empowering individuals to make informed decisions about their sexual and reproductive lives, including if, when, and how many children to have, and how far apart to space births.
These are all necessary components of gender equality. Yet U.S. funding for international FP/RH has stayed flat for a decade while global population, reproductive health needs, and barriers to access have been growing. It is high time for the U.S. to meet its responsibility to help close the gap.
A group of children smile in Ismail Bhand village in Pakistan’s Shaheed Benazirabad district, Sindh province. Credit: UNICEF/Shehzad Noorani
There are 923 million women of reproductive age in LMICs who want to avoid pregnancy. About a quarter of those (218 million) have an unmet need for modern contraception. They want to avoid pregnancy but are not using a modern method. Reasons for this vary from government restrictions on accessing contraceptives to service providers refusing to distribute them to having to travel daunting distances to the nearest clinic.
These hurdles are compounded by gender-based discrimination. For example, stigma surrounding contraceptives and sex make it particularly difficult for young, single women to access services.
Marginalized groups face discriminatory attitudes in clinics, including in the U.S., where members of the LGBTQ+ community, immigrants, and Black, indigenous, and other people of color are often denied services and resources to meet their family planning needs.
The world needs much more robust support from the U.S. to overcome these obstacles and pave the way to achieving global gender equality. Due to the lack of sufficient investment to dismantle barriers to sexual and reproductive health and rights (SRHR) worldwide, U.S. support for overarching gender equality goals will inevitably be weakened, a new Population Institute report finds.
Some governments are showing they understand this problem and are changing policies accordingly. For example, President Xiomara Castro of Honduras just lifted a 14-year ban on emergency contraception, which will revolutionize access to FP/RH services. Beginning April 1, the provincial government of British Columbia will provide prescription contraception at no charge.
The U.S. has a responsibility to lead on global SRHR but ceded its leadership in recent years and is getting left behind. U.S. bilateral and multilateral FP/RH programs have been under attack, especially in the wake of Trump-era restrictive policies.
The modest increase in FP/RH funding in the current budget proposal shows the Biden-Harris administration recognizes the importance of global SRHR. But it doesn’t reflect the urgency or level of commitment needed.
At the same time, it undercuts SRHR by including the Helms Amendment, an outdated prohibition on using U.S. foreign assistance funding for abortion as a method of family planning. In practice, implementing the Helms Amendment has meant denying abortions even in instances of rape or incest, or in cases where it would save a woman’s life.
Failure to aim at U.S. fair-share levels of FP/RH funding in the latest budget proposal is a missed opportunity. Let’s not miss any more. Global population recently passed the 8 billion mark, and the need is growing.
We can meet the moment by recognizing the fundamental connections between SRHR, gender equality, and sustainable development, and accepting the obligation of the U.S. to lead on achieving them.
Maniza Habib is Research Associate at the Population Institute, a nonprofit based in Washington, D.C. that supports reproductive health and rights.
The median ages of populations are expected to continue rising over the coming decades. East Nanjing Road, Shanghai, China. Credit: Shutterstock.
Opinion by Joseph Chamie (portland, usa)
Inter Press Service
PORTLAND, USA, Mar 27 (IPS) – Yes, lower the retirement ages! That is the key message that workers worldwide are conveying to their governments.
Rather than increasing retirement ages as many governments are now proposing, men and women worldwide want to stop working well before they reach old age, which is approximately 60 years.
After toiling for years in factories, offices, shops, backrooms, vehicles, fields, etc., most workers around the world want to stop working before they reach old age. That desire translates into exiting the labor force and receiving a government pension at approximately age 55 years.
Government officials, economic advisors, business leaders and many others calling for raising retirement ages will no doubt consider lower retirement ages to be preposterous, verging on financial blasphemy and leading to an economy’s doom. Some have argued that lowering retirement ages places an unaffordable and unfair burden on taxpayers.
On the contrary, rather than leading to an economy’s ruination, a retirement age of 55 years may usher in a “retirement renaissance” resulting in untold benefits to societies worldwide.
The renaissance will enhance and extend the quality of life for those in retirement. It is also expected to decrease unemployment rates, lead to increased motivation among younger employees to continue working until retirement, provide businesses with energetic, healthy, well-trained youthful workers as well as foster cross generational interactions, recreation, hobbies and cultural activities.
In addition, the renaissance may contribute to raising low fertility levels by making childcare more readily available. Today two-thirds of the world’s population lives in a country where the fertility rate is below the replacement level of about 2.1 births per woman.
The retirement renaissance will permit retired men and women with adult children to assist with childcare and related activities. With grandparents available for childcare, young working mothers and fathers can be expected to be more favorably disposed to having additional children.
The protests, demonstrations and objections in Asia, Europe, North America and elsewhere reflect the public’s resistance to working until, as they claim, broken-down and close to near death. Large majorities of workers have clearly conveyed their opposition to their respective government proposals requiring people to work well into old age before they are entitled to receive their promised retirement pensions.
The various projected insolvencies of government pension systems, often cited as justification for raising retirement ages to record breaking high levels, are often dismissed by workers and their supporters as irrelevant. The insolvencies, workers contend, are simply financial excuses concocted by government officials and their wealthy supporters, who object to paying their fair share of taxes, to justify their goal of raising retirement ages and cutting pension benefits.
In addition to higher taxes on the wealthy and large corporations, workers argue that governments have plenty of financial resources at their disposal to permit lowering retirement ages and financing pension programs. Some contend that countries could substantially reduce their defense spending and redirect the substantial savings to retirement pension programs.
Admittedly, it is certainly the case that on average people are living longer than in the recent past and the proportions of elderly are increasing. However, those increases in longevity have not been shared equally across populations.
In general, those with high incomes have experienced longevity gains, while low earners have seen little gain in longevity. Moreover, workers contend that living longer should not translate into working longer and receiving reduced retirement pension benefits.
Both men and women spend decades working at jobs that they don’t particularly enjoy and for bosses they loathe. Many would argue that it only seems fair and reasonable to have several decades available to workers permitting them to do what they desire before they eventually face death. People are largely opposed to working until they are tired, bed ridden and unable to enjoy the remaining years of their life.
It is also the case that women on average live several years longer than men. At age 65, for example, at the global level women live close to three years longer than men. Even larger differences in life expectancy at age 65 between women and men are observed in other countries, such as France and Japan at nearly four and five years, respectively (Figure 1).
Source: United Nations.
Taking into account those well documented sex differences in longevity, the retirement age for women could be several years greater than that for men, perhaps 57 and 54 years, respectively. Such a difference between women and men would help to ensure gender equality in the number of retirement years.
In addition, neither men nor women should be forced to work beyond the recommended lower official retirement ages for men and women. Of course, exceptions should be permitted and lower official retirement ages should not bar individuals from working in old age if they choose to do so.
Some heads of state, elected officials, government bureaucrats, investors, business owners, academics, the wealthy, entertainers as well as many others are choosing for personal reasons it appears to work beyond official retirement ages. Some current heads of state, for example, are well beyond the official retirement ages of their respective countries with few of their constituents objecting (Figure 2).
Source: Author’s compilation.
With the world population reaching a record-breaking 8,000,000,000 people, the number of young women and men available to work is the largest ever. Whereas the proportion of the world’s population between ages 18 to 59 was 52 percent in 1950 and numbered 1.3 billion, that proportion increased to 56 percent in 2022 and numbered 4.5 billion.
There’s no denying the fact that the world’s population is older than in the past. Over the past 70 years, the proportion of the world’s population aged 60 years and older has nearly doubled, from 8 percent in 1950 to 14 percent in 2022. However, the increase in the proportion elderly is offset by the decrease in proportion of children below age 18 years from 40 percent in 1950 to 30 percent in 2022 (Figure 3).
Source: United Nations.
Also, some believe that rapidly improving technologies, including robots,androids and artificial intelligence, can complement and broaden a country’s labor supply. Those technologies are expected to offset reductions in the size of the labor force as people retire at around 55 years of age.
Many governments have enacted or are seriously considering raising retirement ages. Increases in today’s retirement ages are viewed by workers as nothing more than pension benefits cuts.
Proposals for raising retirement ages are viewed by workers as relying on faulty actuarial analyses of bankruptcy, dire warnings of pension insolvency and catchy phrases such as “Vivre plus longtemps, travailler plus longtemps” (“live longer, work longer”).
Moreover, conservative government officials in general are resistant to raising taxes on the wealthy and large corporations. However, many of those officials are favorably disposed to raising retirement ages, which would result in reductions in pension benefits. Also, some government officials have rejected calls to return retirement ages back to 60 years.
In sum, in addition to meeting the wishes of billions of working men and women who want to retire well before reaching old age, lower official retirement ages of approximately 57 years for women and 54 years for men may usher in a “retirement renaissance” that could result in untold benefits to societies worldwide.
Joseph Chamie is a consulting demographer, a former director of the United Nations Population Division and author of numerous publications on population issues, including his recent book, “Population Levels, Trends, and Differentials”.
The collapse of Silicon Valley Bank sent shockwaves through the global economy and had the makings of another crisis. Depositors raced to withdraw money. Banks worried about the risk of contagion. I spent that weekend on the phone with small business owners in Ohio who didn’t know whether they’d be able to make payroll the next week. One woman was in tears, worried about whether she’d be able to pay her workers.
The Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve responded quickly, took control of the bank, and contained the fallout. Consumers’ and small businesses’ money was safe. That Ohio small business was able to get paychecks out.
The regulators were able to protect Americans’ money from incompetent bank executives because when Congress created the Federal Reserve in 1913 and the FDIC in 1933, it ensured that their funding structures would remain independent from politicians in Congress and free from political whims.
But now, as the U.S. Supreme Court considers the case of Community Financial Services Association v. CFPB, these independent watchdogs’ ability to keep our financial system stable faces an existential threat.
The Consumer Financial Protection Bureau is the only agency solely dedicated to protecting the paychecks and savings of ordinary Americans, not Wall Street executives or venture capitalists. Corporate interests have armies of lobbyists fighting for every tax break, every exemption, every opportunity to be let off the hook for scamming customers and preying on families.
“ The CFPB’s funding structure is designed to be independent, just like the Fed and the FDIC. ”
Ordinary Americans don’t have those lobbyists. They don’t have that kind of power. The CFPB is supposed to be their voice — to fight for them. The CFPB’s funding structure is designed to be independent, just like the Fed and the FDIC. Otherwise, its ability to do the job would be subject to political whims and special interests — interests that we know are far too often at odds with what’s best for consumers.
Since its creation, the CFPB has returned $16 billion to more than 192 million consumers. It’s held Wall Street and big banks accountable for breaking the law and wronging their customers. It’s given working families more power to fight back when banks and shady lenders scam them out of their hard-earned money.
The CFPB can do this good work because it’s funded independently and protected from partisan attacks, just as the Fed and the FDIC are. So why, then, does Wall Street claim that only the CFPB’s funding structure is unconstitutional?
Make no mistake — the only reason that Wall Street, its Republican allies in Congress, and overreaching courts have singled out the CFPB is because the agency doesn’t do their bidding. The CFPB doesn’t help Wall Street executives when they fail. It doesn’t extend them credit in favorable terms or offer them deposit insurance like the other regulators do. The CFPB’s funding structure isn’t unconstitutional — it just doesn’t work in Wall Street’s favor.
If the Supreme Court rules against the CFPB, the $16 billion returned to consumers could be clawed back. What would happen then — will America’s banks really go back to the customers they’ve wronged with a collection tin?
“ Invalidating the CFPB and its work would also put the U.S. economy — and especially the housing market — at risk. ”
Invalidating the CFPB and its work would also put the U.S. economy — and especially the housing market — at risk. For more than a decade, the CFPB has set rules of the road for mortgages and credit cards and so much else, and given tools to help industry follow them. If these rules and the regulator that interprets them disappear, markets will come to a standstill.
By attacking the CFPB’s funding structure and putting consumers’ money at risk, Wall Street is putting the other financial regulators in danger, too.
The Fifth Circuit’s faulty ruling against the CFPB is astounding in its absurdity — the court ruled that the authorities that other financial agencies, like the Federal Reserve and the FDIC, have over the economy do not compare to the CFPB’s authorities. In other words, the court is claiming that the CFPB supposedly has more power in the economy than the Fed.
That’s ridiculous. Look at the extraordinary steps taken to contain the failures of Silicon Valley Bank and Signature Bank — the idea that the CFPB could take action even close to as sweeping is laughable.
But we know why the Fifth Circuit put that absurd assertion in there — they recognize the damage this case could do to these other vital agencies, and to our whole economy.
“ Imagine what might happen if another series of banks failed and the FDIC did not have the funds to stop the crisis from spreading.”
The FDIC’s own Inspector General has stated that the Fifth Circuit ruling could be applied to their agency. If that happens, the FDIC and other regulators could be subject to congressional budget deliberations, which we all know are far too partisan and have resulted in shutdowns. Imagine what might happen if another series of banks failed and the FDIC did not have the funds to stop the crisis from spreading, or the Deposit Insurance Fund to protect depositors’ money. Imagine if politicians caused a shutdown, and we were without a Federal Reserve.
U.S. financial regulators are independently funded so that they can respond quickly when crises happen. It’s telling, though, that plenty of people in Washington don’t seem to consider the CFPB’s issues in the same category. Washington and Wall Street expect the government to spring into action when businesses’ money is put at risk. But when workers are scammed out of their paychecks, that’s not an emergency — it’s business as usual.
When Wall Street’s abusive practices put consumers in crisis, the CFPB must have the funding and strength it needs to carry out its mission — to protect consumers’ hard-earned money.
U.S. Sen. Sherrod Brown (D-OH) is chairman of the U.S. Senate Committee on Banking, Housing, and Urban Affairs.
MINNESOTA, USA, Mar 27 (IPS) – The dark road to democracy began with the manner in which the Kenyan Presidential election of August 2022 was handled. Today, the Church in Kenya is calling for dialogue between the ruling regime and the opposition. The issue here is not about dialogue, but the legitimacy of the President William Ruto. The situation in Kenya reminds me of a similar situation in Rwanda in early 90s.
In 1994, the World Council of Churches, the Lutheran World Federation and Africa Council of Churches sent a combined mission to Rwanda. The mission’s findings reported that ” the churches in Rwanda have been discredited by aligning themselves far too much with the former Hutu dominated regime and its tribal politics”.
According to the report, one member of the mission stated, ” In every conversation we had with the government and the church people alike, the point was brought home to us that the church itself stands tainted not by passive indifference but errors of commission as well”. Unfortunately, the church in Kenya today is aligning themselves with the ruling regime.
The Kenyan Tragedy
Seven months after Presidential election in Kenya, every organization, institution and government which had kept silent as if the Kenyan Presidential election were free and fair began to speak. The current crisis in Kenyan could have been prevented.
The attitude adopted by African Union (AU), the international community, governments, international press and human rights organizations after last year’s presidential election made the current situation in Kenya inevitable. In a democracy, except with his own consent, no person shall be hindered in the enjoyment of his or her rights to assemble freely and associate with other persons or to impart ideas.
The Kenyan regime has to come to terms with this realty.
In the 21st century, the forces against the development and sustenance of democracy and the enjoyment of human rights by the citizens of Africa are strong and powerful. A political map of Africa to show states ruled by the gun and states ruled by the ballot, if made, will show only a handful of the latter. Such map will not. however, show the real human tragedy which the gunmen and their supporters and apologists have wrought the African peoples.
In Africa, oppressive regimes, and most of those regimes are illegitimate like the case of Kenya today, is the driving force of conflict. The use of the gun like the current situation in Kenya today is only a short- term remedy and also creates a chain reaction to the problem.
Promoting democracy in Africa does not only serve moral interests of the United States of America but it helps to prevent war, reduce the influx of refugees. Preventing wars in Africa and creating a peaceful democratic society is cheaper than fighting wars.
When General MacArthur conquered Japan, he wrote a new constitution for the people of Japan. This constitution became the pillar of Japanese democracy. The United States and other nations of Western Europe helped Japan build its economy.
Today, Japan is the leading economic power house in Asia. If this worked for Japan, a nation without natural resources, how about Africa with abundant natural resources? General MacArthur did not do it alone, but it took the commitment on part of the Japanese people to rebuild their nation.
In the case of Kenyan’s current crisis, it is important to address the issue Hon. Raila Odinga has raised about the server to bring transparency in the election process. Kenyan people need to address the issue of accountability, corruption and transparency.
The policy makers in Washington should revive an effective policy that will enforce political reforms and curb electoral malpractices across Africa. Overhaul bilateral relationships with individual countries and attached conditions to U.S. foreign aid.
Such conditions should include human rights violations, political reforms, electoral reforms, accountability, good governance and transparency. Washington should emphasize respect of territorial integrity of each nation. No country in Africa should have the power to invade another country for selfish interests. A civilized nation cannot engage in military coups, rebel activities, political assassinations and massive human rights violations.
The United States has a responsibility to promote democracy and good governance across the continent of Africa. For any democracy to develop and mature there should be accountability, transparency and an effective constitution which reflects the will of the people and allows political freedom such as (a) Freedom of speech and expression, which includes freedom of the press and other media. (b) Freedom to assemble and to demonstrate together with others peacefully and unarmed and to petition. (c) Freedom of association which shall include the freedom to form and join associations or unions, including trade unions and political and other civic organizations.
Rev. Gabriel Odima is President & Director of Political Affairs, Africa Center for Peace & Democracy, White Bear Lake, MN 55110 USA
E-mail: [email protected]
This was arguably the most frequently posed question by critics in the years prior to state-level marijuana legalization. Many opponents presumed that legalizing cannabis for adults would undoubtedly lead to an increase in marijuana access and use among teens.
But 10 years following the first states’ decisions to legalize and regulate adult-use cannabis sales, data conclusively shows that these fears wereunfounded.
For example, data provided this year by the U.S. Centers for Disease Control and Prevention determined that the percentage of high schoolers who report having used cannabis over the past 30 daysfellfrom 23% in 2011 to 16%in 2021.
Likewise, the percentage of teens who acknowledge having ever tried cannabis hassimilarly declined. These downward trends coincide with the period where over 20 U.S. states legalized cannabis use by adults.
States that have legalized the adult-use cannabis market have experienced similar declines in underage use. According to the findings of a 2020studypublished in the Journal of Adolescent Health, the adoption of state-level legalization laws “predicted a small significant decline in the level of marijuana use among [youth] users.”
In short, states’ real-world experience with marijuana legalization affirms that these policies can be implemented in…
Opinion by Shivan Fazil, Alaa Tartir (stockholm, sweden)
Inter Press Service
STOCKHOLM, Sweden, Mar 24 (IPS) – Over the past two decades Iraq has been affected by several waves of intense conflict and violence. The 2003 invasion of Iraq by a multinational coalition led by the United States and United Kingdom toppled the Ba’athist regime of Saddam Hussein.
It also ushered in years of chaos and civil war, as a variety of armed groups vied for power and territory and targeted coalition forces and the fledgling post-Ba’athist Iraqi Army.
A period of relative calm in the early 2010s was broken by the rise of the extremist Islamic State group, which occupied large parts of the country from 2014 until it was largely defeated by Iraqi forces with the support of a US-led international coalition in 2017.
Today Iraq is enjoying its most stable period since 2003. Armed violence persists in different forms, but it is sporadic, fragmented and localized. However, the country remains fragile and divided, and its people face an array of deepening challenges that the state is struggling to address. This Topical Backgrounder aims to provide a snapshot of the situation in Iraq 20 years since the invasion.
A fragile, oil-dependent economy
Crude oil exports accounted for an estimated 95 per cent of federal revenues in 2020. Successive governments have done little to wean Iraq off this heavy dependency on oil rents and diversify the economy. This has led to a bloated public sector characterized by patronage and to a shortage of jobs for new graduates—especially those without the necessary connections and networks.
The dependency on oil rents also exposes the Iraqi economy to fluctuations in global oil prices. Not only does this make long-term development planning difficult, but in 2020, when global oil prices plunged, the government was left unable to fund basic services or even pay public-sector salaries and pensions.
Despite having large natural gas reserves, Iraq currently relies on gas imports from Iran. The US and Iraq’s European partners are keen to end this dependency and to help Iraq become energy-independent.
However, the political and economic turmoil of the past few years in Iraq have stalled investment in capacity to separate and process gas from Iraqi oil fields, and instead vast quantities of gas associated with oil extraction are flared off.
This leaves Iraq still dependent on Iranian gas and electricity imports, greatly increases its climate footprint and creates acute air pollution in parts of the country. The situation is a prime illustration of the complexity of Iraq’s security challenges and governance failures, which interact in complex ways with its oil-dependent economy, tumultuous regional dynamics and environmental issues.
The changing face of armed violence
Today, Islamic State is thought to be unable to recruit more members in Iraq and only an estimated 500 fighters are still active in the country. Major military operations against Islamic State have thus ended.
In 2020, the US began reducing its military footprint in Iraq—which had risen sharply in response to the rise of Islamic State—and only around 2500 US military personnel remain in the country, at Iraq’s invitation, in an advisory role.
A key task as the threat from Islamic State dissipates is to deal with the Popular Mobilization Forces (an Iraqi state-sponsored umbrella organization comprising a number of predominantly Shia militias, some supported by Iran) as well as smaller militia groups linked to ethno-religious minorities in the country’s north that were formed in the name of community self-defence.
One of the goals of successive Iraqi governments has been integrating these forces into the Iraqi security forces, but progress has been slow. Most of the militias are nominally under the Ministry of Defence.
However, many seem to act independently of government and outside institutional jurisdiction. Some have been accused of human rights violations and abuses against civilians, particularly during the mass anti-government protests in 2019.
Another task, being urged by the US and the anti-Islamic State coalition, is to improve how the Peshmerga—the armed forces of the Kurdistan Region of Iraq (KRI)—and the Iraqi Armed Forces interact.
A lack of coordination and intelligence-sharing has undermined the efficiency of security operations, particularly in the disputed territories of Iraq. Prior to the emergence of Islamic State in 2014, the Kurdistan Regional Government (KRG) and the federal government in Baghdad were jointly administering security in these territories.
Iraq has also suffered from the spillover of civil conflicts and counterinsurgency in neighbouring countries, especially in some of its more remote regions. Iran and Türkiye have both launched missile strikes or armed incursions against opposition forces on Iraqi territory in recent years.
Identity politics and worsening state-society relations
The United States and other members of the coalition that invaded Iraq in 2003 and supported its transition to post-Ba’athist democracy lacked a long-term vision. They often failed to anticipate the consequences of major decisions, such as the disbanding of the Iraqi Army in 2003 or several initiatives put forward by the transitional authorities.
One of the most consequential of these initiatives was the establishment of Muhasasa Ta’ifia, a form of consociationalist elite bargain that was adopted after 2005. Under Muhasasa Ta’ifia, government posts, sinecures and departments are shared out among the Kurdish, Shia and Sunni political elites after an election—often after a lot of fraught inter-factional horse-trading.
Voters are offered a choice of parties within a given ethnosectarian bloc, but no choice of policy platforms. There is no parliamentary opposition to hold the government accountable.
Muhasasa Ta’ifia was conceived as a way to stop Iraq fracturing and divisions along the major ethnosectarian faultlines, to encourage the groups to collaborate and to avoid one group becoming too dominant. While it has arguably succeeded to an extent in those aims, it has also given rise to ineffective governments, lack of accountability, and a public sector rife with corruption and patronage.
As a result, a major new faultline has emerged, with ordinary citizens united across ethnosectarian lines by grievances against the governing class. Along with corruption, citizens complain of economic mismanagement, unemployment, crumbling infrastructure, weak public services and more. Largely youth-led anti-government protests in 2019 expressed their feelings of alienation from the political elite with the slogan ‘We want a homeland’.
Mass protest has been growing since 2015. The October Protest or Tishreen Movement that began in 2019 was large enough to topple the government of Prime Minister Adil Abdul-Mahdi in early 2020 and was violently suppressed by state forces and militias.
Muhasasa Ta’ifia caused another political crisis in 2021–22 when elites were unable to agree on a new government for over a year after a general election in October 2021. Voter turnout in that election fell to a record low of 44 per cent, illustrating the growing popular disillusionment and frustration with the political system.
Muhasasa Ta’ifia seems unlikely to change in the near term, but there are some signs that it is slowly breaking down, and perhaps even starting to make way for a more issue-based politics. For example, political factions have recently been forming alliances beyond their ethno-sectarian blocs.
Following the 2021 election, Muqtada al-Sadr, the leader of the Shia Sadrist movement, proposed forming a majority government with a sizeable parliamentary opposition—although this was rejected by other factions.
More positively, the Tishreen Movement spawned its own political candidates, some of whom won seats. Their potential to influence federal politics is negligible, but they may be able to push forward change in subnational politics.
The Kurdistan Region in federal Iraq
The Kurdistan Regional Government has a peaceful, if occasionally fraught, relationship with the federal government in Baghdad. The KRG enjoys a high level of autonomy, which includes maintaining its own military forces, the Peshmerga.
Early on in the transition process after 2003, Kurdistan was recognized as Iraq’s most stable region, and its leaders as having valuable experience of government that the other transitional authorities lacked. This was also partly due to the no-fly zone and other measures to protect the Iraqi Kurds from Iraqi government attacks implemented by the United States and European partners after the first Gulf War in 1991.
The Kurds in Iraq have largely distanced themselves from the Kurdish independence movements in neighbouring Iran, Syria and Turkey, to the extent that Peshmerga forces have even clashed with Turkey’s Kurdish Workers’ Party (PKK) forces operating on Iraqi soil.
Relations between the KRG and the federal government are complicated by long-standing disagreements over oil revenue sharing and control of the disputed territories, which include the oil-rich city of Kirkuk. The KRG brought these territories under its control after Iraqi security forces withdrew in the face of Islamic State advances in 2014. Resolving the status of the disputed territories should have taken place a decade earlier, according to the 2005 constitution.
When the major military operations to defeat Islamic State came to an end in 2017, tensions between the federal government and the KRG were intensified by the KRG’s push for greater autonomy. The KRG organized a referendum for independence that also included the disputed territories that were then under its control (including Kirkuk).
The federal government rejected the referendum and retook the disputed territories with military force, supported by the Popular Mobilization Forces, and implemented other punitive measures against the KRG.
The KRG and state-society relations in the KRI have similar problems to those found at the federal level. The KRG budget relies heavily on independent oil exports and on budget transfers from Baghdad, removing the incentive to diversify the economy. And the two main Kurdish factions, the Kurdistan Democratic Party and the Patriotic Union of Kurdistan, have been in a power-sharing agreement since the unification of two Iraqi Kurdish enclaves in 2006.
This agreement sees government and administrative posts shared between the two parties—an arrangement not dissimilar to Iraq’s Muhasasa Ta’ifia. As in the rest of Iraq, residents of the KRI complain of corruption, patronage and mismanagement by the Kurdish authorities. Many have left Iraq to seek asylum in Europe and elsewhere.
Relations with Iran and the US
In the field of diplomacy, Iraq’s strongest relationships and ties are with Iran and the US. Nevertheless, Iraq has sought to diversify its diplomatic and economic relations in recent years, including with Arab Gulf states as well as Egypt and Jordan.
Iran is Iraq’s largest trading partner, although Iraq’s imports from Iran—worth around $9 billion in 2018—vastly outweigh trade in the other direction. Iraq and Iran have also cooperated extensively in the fight against Islamic State.
Iran’s influence in Iraq, much of it exercised through Shia political factions, has been a source of anger among protesters, especially as Iranian-backed militia groups have been involved in violence against anti-government protests.
In addition to having guided the post-invasion political transition, the USA remains Iraq’s main source of security support and of military and development aid. The USA has recently increased pressure on Iraq for tighter control of dollar sales in order to stamp out potential money laundering that benefits Iran and Syria.
Steps taken to do this contributed to a significant drop in the dollar value of the Iraqi dinar, leading to soaring inflation in early 2023 and the replacement of the central bank governor.
Iraq has been caught in the middle of regional tensions, particularly due to its diplomatic and geographic closeness to Iran. In recent years Iraq has tried to take an active role in resolving these tensions. For example, with French support Iraq has organized two regional summits—one in Baghdad the other in Amman, Jordan—aimed at de-escalating regional tensions. In 2021 Iraq hosted talks between Iran and Saudi Arabia, a prelude to the China-brokered détente announced in March 2023.
The situation for Iraq’s minorities
State failure to protect Iraq’s many ethno-religious minorities is a long-standing problem. Since 2003, many minorities have been displaced due to insecurity, often migrating to the KRI—which was seen as calmer, safer and more tolerant—and in many cases out of Iraq altogether.
The Islamic State group targeted minorities, particularly those of non-Abrahamic faiths. The worst of this was in Nineveh Province, known for its mosaic of ethnic and religious diversity. The Islamic State attacks on the Yezidi group in Sinjar district were so devastating that they have been recognized as a genocide.
Many of the minorities who were displaced during the Islamic State occupation have not returned—partly down to the presence of the many militias still active in their areas of origin and a general sense of insecurity, but also because they feel they can make a better life in their new homes.
A UN-brokered agreement between the KRG and the federal government in 2021 that was aimed at normalizing the security situation in Sinjar has had little effect on the ground that would encourage the internally displaced Yezidis to return.
Although minority citizens in Iraq are experiencing lower levels of armed violence based on their identity, discrimination against them seems to have worsened in the wake of the Islamic State occupation. SIPRI has been working in the Nineveh Plains region on ways to improve intercommunal relations and help minorities to re-establish their cultural practices and social relations.
Multiple civil society and grassroots groups are pushing for a reimagining of Iraq, where ethnicity and sect play a much smaller role. However, Iraq’s powerful political blocs are keen to maintain the current power-sharing arrangement, even though it does not seem likely to bring prosperity or lasting peace.
The legacy of the invasion still runs through many of the challenges that Iraq faces, but no longer defines them. Gradually, Iraq is shaping its own destiny—hopefully to the benefit of all its citizens.
Shivan Fazil is a Researcher with the Middle East and North Africa Programme at the Stockholm International Peace Research Institute (SIPRI). Dr Alaa Tartir is a Senior Researcher and Director of SIPRI’s Middle East and North Africa Programme.
Opinion by Marine Olivesi (ouagadougou, burkina faso)
Inter Press Service
OUAGADOUGOU, Burkina Faso, Mar 23 (IPS) – Over a million children in Burkina Faso are currently affected by school closures with 6,134 academic institutions shut as of February 2023, an increase of over 40 per cent since the end of the last school year.
Nearly one out of four schools country-wide are now out of service due to rampant insecurity and violence, which has forced close to two million people into displacement.
On the eve of the high-level conference on Education in Emergencies, organised by the European Commission and the United Nations Children’s Fund in Brussels, the Norwegian Refugee Council together with the Education Cluster in Burkina Faso and the FONGIH, two umbrella entities representing 87 national and international organisations operating in the country, called for increased access to education for children left behind, whether they are internally displaced or live in enclaved areas.
“Only about a quarter of the children driven out-of-school have been given new classrooms. The majority are left without access to education, robbing them of their childhood and of their chance to become independent adults and citizens,” said Hassane Hamadou, NRC’s country director in Burkina Faso.
“The longer this situation drags on, the graver it becomes, the harder it will be to reverse this trend and protect their futures. The authorities in Burkina Faso as well as humanitarian and development organisations must urgently renew their efforts to stop this educational hemorrhage.”
Out of eight schools, only two are operational in the blockaded town of Pama in the East region, one of the three regions with the highest number of school closures along with Sahel and Boucle du Mouhoun. Six teachers and a few volunteers are currently serving over 1,000 children in Pama.
“For those of us who are still here, it’s a very personal decision to stay,” explained a teacher. “Education is a universal right, so we feel it’s our duty to carry on. But fear doesn’t go away easily. Often, we have to stop classes because we hear gunshots here or there.
Threats loom large, and conditions are tough, but we can and must overcome challenges to assist children who never wished to be put in this situation.”
Over 31,000 teachers have been affected by the education crisis nationwide, of which about 6,300 have been redeployed so far in schools hosting large numbers of internally displaced students. The reopening or relocation of around 300 schools since January marks a welcome step in the right direction.
However, it is now crucial to increase the use of “double shifts approach” in operating schools, to set-up more classrooms wherever possible, and to accelerate the reassignment of teachers to new sites in displacement areas.
This crisis has disproportionately impacted girls. A study conducted by Plan International revealed that girls are 2.5 times more at risk of being driven out of schools than boys in a crisis situation. Meanwhile, ongoing efforts to help teachers meet the growing psycho-social needs of students often traumatized by displacement and conflict must be sustained and increased nationwide.
“Insecurity is a big part of why so many schools close, but food insecurity in the Sahel and East regions is also a driver of school dropouts,” said Tin Tua’s director, Yembuani Yves Ouoba. “Guaranteeing that schools and non-formal education centers provide meals and children are being fed are effective ways of keeping them in the system.”
“We are witnessing an accelerating assault on education. Teachers are threatened and parents are frightened. Children are paying the heaviest price. When a child is not at school, he is more at risk of being exploited, being a victim of violence and trafficking, or even being recruited by armed groups,” said the Representative of UNICEF in Burkina Faso, Sandra Lattouf.
“We welcome the effective partnership and collaboration with the Ministry of National Education, Literacy, and Promotion of National Languages, which is strengthening access to education in challenging contexts. We must act now to not lose the next generation and renew efforts to strengthen emergency and alternative education solutions.”
Parties to the conflict must do more to protect school infrastructures from attacks and not occupy academic buildings. We welcome the upcoming inter-ministerial order to set up national and regional committees in charge of the implementation of the Safe School Declaration and hope they help make schools safe for all Burkinabè children.
• At the end of February 2023, 6,134 schools were closed in Burkina Faso, a 44% increase since May 2022 (4,258). This represents 24% of all academic structures in the country. (Source: Ministry of Education’s statistical monthly report on Education in Emergencies from February 28, 2023)
• Number of closed schools in other West and Central African countries due to insecurity: 3,285 in Cameroon, 1,762 in Mali , 1,344 in the Democratic Republic of Congo, 878 in Niger, 181 in Nigeria, 134 in Chad and 13 in Central African Republic (Source: Unprecedented School Closures Jeopardise the Future of Millions in West and Central Africa, NRC, UNHCR, UNICEF, Education Cannot Wait, March 2023).
• The regions of Boucle du Mouhoun, East and Sahel in Burkina Faso are the most impacted by school closures and each hosts between 1000 and 1200 closed schools. (Source: Ministry of Education’s statistical monthly report on Education in Emergencies from February 28, 2023)
• School closures impact 1,050,172 students as well as 31,077 teachers. 262,388 of these children have so far reintegrated a formal classroom. (Source: idem)
• Girls are 2,5 times more at risk of being driven out of school than boys in a crisis situation according to a 2020 study conducted in Mali and Burkina Faso (Adolescent girls in crisis, voices from the Sahel, Plan International, August 2020)
• Two schools out of eight are currently operational in Pama, with 6 teachers and 6 volunteers serving over 1,000 children. (Source: NRC interviews of teachers in Pama, March 2023)
Marine Olivesi, is Advocacy Manager for Norwegian Refugee Council in Burkina Faso
Those of you struck by the sheer number of rough sleepers in the city these days may be shocked to learn the CBD is not even the homeless capital of Perth by local government area.
For every rough sleeper in the CBD there are more than five other people living on the streets somewhere else in the State, with the City of Swan having the most rough sleepers.
Opinion by Daud Khan, Stephen Akester (rome / london)
Inter Press Service
ROME / LONDON, Mar 20 (IPS) – On March 4 2023, the 193 members of the United Nations reached a major milestone. They agreed on a treaty to manage and protect the high seas– the marine areas that lie outside the 200 mile Exclusive Economic Zones (EEZ) of coastal states. The high seas are an essential part of the global ecosystem. They cover 50 percent of the Earth’s surface, produce half the oxygen we breathe, provide a home to 95 percent of the planet’s biosphere, are a critical sink for carbon dioxide, and help regulate the Earth’s temperature.
Daud KhanThe new treaty provides a legal framework for establishing vast marine protected areas (MPAs) in the high seas and for a body to manage these protected areas – the target is to protect 30 percent of the seas by 2030. It will also set up systems to ensure the benefits of the genetic resources derived from the sea are “shared in a fair and equitable manner”; and will establish a Conference of the Parties that will meet periodically and members will be held to account on issues such as governance and biodiversity.
The agreement of the new treaty, the result of decades of work and lobbying, is something to celebrate. However, a review of other international laws and treaties suggests that enthusiasm needs to be tempered with realism. Commonly, developed countries, due to their superior technology and financial heft, are the biggest economic beneficiaries of open access resources such the high seas, the atmosphere and outer space. They are also the worst culprits in terms of damage caused due to pollution and overuse. Getting these benefiting countries to change behavior has proved difficult.
The case of the 1982 Convention on the Law of Sea (UNCLOS) is illustrative. . Some of the provisions of Part VII of UNCLOS, which deals with the high seas, work well. For example those related to piracy – maybe because keeping shipping lanes safe is of interest to big countries with large fleets. However, the provisions related to fisheries work much less well.
Stephen AkesterUnder Article 119 of UNCLOS, parties are required “to maintain or restore populations of harvested species at levels which can produce the maximum sustainable yield”. The responsibility for this lies with states whose flags the fishing fleets fly (Article 117). Notwithstanding these provisions, overfishing has continued unabated with the fleets from a handful of countries being the main culprits. There has been no effective action or sanctions to curb this, and, as a result, the proportion of fishery stocks exploited in excess of sustainable levels has continued to rise and has reached 35 percent in 2019 (https://www.fao.org/3/cc0461en/cc0461en.pdf). Under UNCLOS there is also a requirement for states to “cooperate to establish subregional or regional fisheries organizations”. But these too have had a patchy record of success as we pointed out in our article about Indian Ocean Tuna Commission (https://www.ipsnews.net/2022/07/rape-indian-oceanthe-story-yellow-fin-tuna/).
Similarly the International Seabed Authority was set up to oversee and manage the exploitation of the resources on or under the seabed including oil, gas and minerals. However, there is no requirement to carry out any detailed environmental or ecological assessment; no royalties are to be paid; and no requirement for sharing of benefits with the poorer countries that lack the technologies to mine these resources.
The situation is even worse with regard to the disposal of waste in the high seas where there are virtually no regulations. This has resulted in increasing plastic and chemical pollution, much of which emanates from developed countries. Even spent fuel from nuclear power plants and radioactive water from the Fukushima power plant disaster have been dumped there.
The new treaty for the high seas aims to address many of these issues. However, it is essential that developing countries are fully involved in drafting the detailed implementation and enforcement arrangements; and defining responsibilities, as well as sanctions in the case of violation of rules and procedures. Developing countries should also continue to call into question the fact that new treaty does not cover ongoing exploitation of the high seas.
The high seas are common property of mankind and all countries need to be involved in how they are managed. The European Union has already pledged €40m to facilitate the formal ratification of the treaty and its early implementation. This will certainly give them a big say on the evolution of the detailed institutional and regulatory architecture. In order to counter this, developing countries must at least match this amount, with the larger developing countries taking in lead in provision of funding and technical skills.
Daud Khan works as consultant and advisor for various Governments and international agencies. He has degrees in Economics from the LSE and Oxford – where he was a Rhodes Scholar; and a degree in Environmental Management from the Imperial College of Science and Technology. He lives partly in Italy and partly in Pakistan.
Stephen Akester is an independent fisheries specialist working in Indian Ocean coastal countries for past 40 years.
LONDON, Mar 17 (IPS) – Georgian civil society can breathe a sigh of relief. A proposed repressive law that would have severely worsened the space for activism has been shelved – for now. But the need for vigilance remains.
Russia-style law
A proposed ‘foreign agents’ law would have required civil society organisations (CSOs) and media outlets in Georgia receiving over 20 per cent of funding from outside the country to register as a ‘foreign agent’. Non-compliance would have been punishable with fines and even jail sentences.
The law’s proponents, including Prime Minister Irakli Garibashvili, claimed it was modelled on one passed in the USA in 1938. The US law was introduced to check the insidious spread of Nazi propaganda in the run-up to the Second World War, and wasn’t targeted at CSOs.
For civil society it was clear the source of inspiration was much more recent and closer to home: Russia’s 2012 law, since extended several times, which allows the state to declare a ‘foreign agent’ any person or organisation it judges to be under foreign influence. The law has been used extensively to stigmatise civil society and independent media. It’s been imitated by other repressive states looking for ways to stifle civil society.
In Georgia, as in Russia, the ‘foreign agent’ terminology is deeply suggestive of espionage and treachery. Any organisation it’s applied to can expect to be instantly viewed with suspicion. This meant the law would stigmatise CSOs and media organisations.
Alarmingly, the proposed law was no isolated event: the government has been ramping up the rhetoric about groups ‘opposing the interests of the country’ and the need to save Georgia from foreign influence.
The initial proposal for the law came from a populist political faction, People’s Power, that split from the ruling party, Georgian Dream, but works in coalition with it. People’s Power has a track record of criticising foreign funding, particularly from the USA, which it claims undermines Georgia’s sovereignty, and has accused CSOs and the main opposition party of being US agents.
CSOs insist they already adhere to high standards of accountability and transparency, making any further regulations unnecessary. They point to the vital role civil society has played over the years in establishing democracy in Georgia, providing essential services the state fails to offer and helping to introduce important human rights protections.
This work necessarily requires financial support, and since there are few resources within Georgia, that means foreign funding, including from the European Union (EU) and other international bodies – sources the government is also happy to receive funding from.
The power of protest
The scale of the reaction took the government by surprise. Many states around the world have enacted repressive civil society laws, and it’s often hard to get the public to take an interest. But the issue cut through because of the larger concerns many people have about Russian influence, heightened by the war on Ukraine.
Russia is an ever-present issue in Georgian politics. The two countries went to war in 2008, and two breakaway parts of Georgia – Abkhazia and South Ossetia – claim autonomy and receive heavy Russian support. Georgian Dream, founded by billionaire business tycoon Bidzina Ivanishvili, has an official policy of pragmatism towards Russia while also cultivating links with the EU – but opponents accuse it and People’s Power of being too close to Russia.
Many see the country’s future as lying within a democratic Europe and fear returning to Russia’s domination. This made the proposed law about a fundamental question of national identity.
That’s why, when parliament started discussing the bill in early March, thousands gathered over several nights, many waving Georgian and EU flags and chanting ‘no to the Russian law’.
When the bill passed its hurried first reading it sparked some violent clashes. Some people threw stones and the police responded disproportionately with teargas, stun grenades, pepper spray and water cannon. But people kept protesting and the government feared the situation could spiral out of its control. So, at least for the time being, it backed down.
What next?
The immediate threat may have passed, but it isn’t game over. The government hasn’t said the law was a bad idea, merely that it failed to explain it properly to the public and withdrew it to reduce confrontation.
Georgia was one of three countries that applied to join the EU following the start of Russia’s invasion of Ukraine. While the other two, Moldova and Ukraine, were quickly granted EU candidate status, Georgia wasn’t.
The EU cited the need for both economic and political reforms. This includes measures to reduce corruption, organised crime and oligarchic influence, improve the protection of human rights and enable civil society to play a stronger role in decision-making processes. In introducing the proposed law, the government took steps further away from the EU and made clear it doesn’t trust civil society.
This raises concerns the bill could return in some revised form, or other restrictions on civil society could be introduced. In numerous countries, the kind of verbal attacks on civil society recently made by the government have led to restrictions.
But Garibashvili should be more attentive to the message of the protests. By taking to the streets, people told the government they’re paying attention and disagree with its current direction – and forced it to back down. Civil society has shown its power, and deserves to be listened to rather than treated with suspicion.
Women in the health and care sector face a larger gender pay gap than in other economic sectors, earning on average of 24 per cent less than peers who are men, according to a joint report by the International Labour Organization (ILO) and the World Health Organization (WHO). Credit: ILOGENEVA (ILO News)
Opinion by Roopa Dhatt, Ebere Okereke (washington dc / london)
Inter Press Service
WASHINGTON DC / LONDON, Mar 16 (IPS) – Women health workers are more than two thirds of the health workforce and represent 90% of the world’s frontline health workers, yet hold less than a quarter of senior leadership roles – a situation which is unfair and a significant risk for global health security.
Despite five years of ad hoc commitments, our new report The State of Women and Leadership in Global Health shows few and isolated gains, while overall progress on women’s representation in global health governance has remained largely unchanged.
The report, launched on March 16, assessed global data together with deep dives into country case studies from India, Nigeria and Kenya. It found that women lost significant ground in health leadership during the COVID-19 pandemic.
A Women in Global Health study calculated that 85% of 115 national COVID-19 task forces had majority male membership. At global level, during the World Health Organisation’s Executive Board meeting in January 2022 just 6% of government delegations were led by women (down from a high point of 32% in 2020).
It appears that during emergencies like the pandemic, outdated gender stereotypes resurface with men seen as ‘natural leaders’.
A key and disturbing finding in the report was that women belonging to a socially marginalized race, class, caste, age, ability, ethnicity, sexual orientation, gender identity or with migrant status, face far greater barriers to accessing and retaining formal leadership positions in health.
Without women from diverse backgrounds in decision-making positions, health programs lack insight and professional experience from the women health workers who largely deliver the health systems in their countries.
Expanding the representation of diverse leaders in health is not just a matter of fairness, it also contributes to better decision-making by bringing in a wider range of knowledge, talent and perspectives.
Further, the report shows there is a ‘broken pipeline’ between women working in national health systems and those working in global health. As long as men are the majority of health leaders at national level and systemic bias against women continues, the global health leadership pipeline will continue to funnel more men into positions with global decision-making power.
The issues women face in national health systems are then reproduced at the global level where women are excluded from political processes and marginalized from the most senior appointments.
A deep dive of case studies in India, Nigeria and Kenya confirms that women are held back from health leadership by cultural gender norms, discrimination and ineffectual policies which don’t redress historic inequalities.
The similarities in the barriers faced by women health workers from very different socio-economic and cultural contexts are marked, indicating widespread systemic bias right across the global health workforce.
The consequences of locking women out of leadership represents a moral and justice issue, and also a strategic loss to the health sector. Through the pandemic, we saw how safe maternity and sexual and reproductive health services were deprioritized and removed from essential services in some countries, with catastrophic consequences for women and girls.
We saw women health workers unpaid or underpaid, and we saw dangerous conditions escalate as community health workers were sent to enforce lockdown, do contact tracing or provide services in unsafe conditions with no forethought given to providing security.
The findings of our report show that systemic change goes beyond numbers in gender parity leadership. What is needed is a transformative framework for action involving all genders from institutional, to national and global level.
Recommendations to drive transformative approaches include:
Men must ‘lean out’ and become visible role models in challenging stereotypes to make way for qualified women
Normalization of paternity leave to shift gender norms and reduce the burden of care of women
Governments taking targeted actions to fast track the number of diverse women in health leadership roles through quotas and all-women shortlists, particularly for senior global health leadership roles that have never been held by a woman
Institutions must be intentional about creating and maintaining a pipeline for women to move into leadership
Measurable actions such as mentorship, shadowing / pairing and deputizing opportunities should be created and monitored to ensure women are visible for promotion opportunities
A zero tolerance of discrimination towards pregnancy
Supported flexible working options for all parents and carers
Investing in women is not only the right thing to do, but it also makes good business sense. When we get it right, we can unlock a “triple gender dividend in health” that includes more resilient health systems, improved economic welfare for families and communities, and progress towards gender equality.
The lessons of the pandemic have taught us much about the value of the health workforce and even more about the value of health workers. They are mostly women. It’s time for them to take their rightful roles in leadership.
Dr Roopa Dhatt is Executive Director and Co-Founder Women in Global Health, Washington, DC and Dr Ebere Okereke is Snr Health Adviser Tony Blair Institute London & incoming CEO Africa Public Health Foundation, Nairobi
LONDON, Mar 15 (IPS) – Last October, Ales Bialiatski was awarded the Nobel Peace Prize. He was one of three winners, alongside two human rights organisations: Memorial, in Russia, and the Center for Civil Liberties in Ukraine. The Nobel Committee recognised the three’s ‘outstanding effort to document war crimes, human rights abuses and the abuse of power’.
But Bialiatski couldn’t travel to Oslo to collect his award. He’d been detained in July 2021 and held in jail since. This month he was found guilty on trumped-up charges of financing political protests and smuggling, and handed a 10-year sentence. His three co-defendants were also given long jail terms. There are many others besides them who’ve been thrown in prison, among them other staff and associates of Viasna, the human rights centre Bialiatski heads.
Crackdown follows stolen election
The origins of the current crackdown lie in the 2020 presidential election. Dictator Alexander Lukashenko has held power since 1994, but in 2020 for once a credible challenger slipped through the net to stand against him. Sviatlana Tsikhanouskaya ran against Lukashenko after her husband, democracy activist Sergei Tikhanovsky, was arrested and prevented from doing so. Her independent, female-fronted campaign caught the public’s imagination, offering the promise of change and uniting many voters.
Lukashenko’s response to this rare threat was to arrest several members of Tsikhanouskaya’s campaign staff, along with multiple opposition candidates and journalists, introduce additional protest restrictions and restrict the internet. When all of that didn’t deter many from voting against him, he blatantly rigged the results.
This bare-faced act of fraud triggered a wave of protests on a scale never seen under Lukashenko. At the peak in August 2020, hundreds of thousands took to the streets. It took a long time for systematic state violence and detentions to wear the protests down.
Everything Lukashenko has done since is to suppress the democracy movement. Hundreds of civil society organisations have been forcibly liquidated or shut themselves down in the face of harassment and threats. Independent media outlets have been labelled as extremist, subjected to raids and effectively banned.
Lukashenko’s repression is enabled by an alliance with an even bigger pariah: Vladimir Putin. When the European Union and democratic states applied sanctions in response to Lukashenko’s crackdown, Putin provided a loan that was crucial in helping him ride out the storm.
This marked a break in a long strategy of Lukashenko carefully balancing between Russia and the west. The effect was to bind the two rogue leaders together. That’s continued during Russia’s war on Ukraine. When the invasion started, some of the Russian troops that entered Ukraine did so from Belarus, where they’d been staging so-called military drills in the days before. Belarus-based Russian missile launchers have also been deployed.
Just days after the start of Russia’s invasion, Lukashenko pushed through constitutional changes, sanctioned through a rubber-stamp referendum. Among the changes, the ban on Belarus hosting nuclear weapons was removed.
Belarussian soldiers haven’t however been directly involved in combat so far. Putin would like them to be, if only because his forces have sustained much higher-than-expected losses and measures to fill gaps, such as the partial mobilisation of reservists last September, are domestically unpopular. Lukashenko has struck a balance between belligerent talk and moderate action, insisting Belarus will only join the war if Ukraine attacks it.
That may be because Belarus’s enabling of Russia’s aggression has made people only more dissatisfied with Lukashenko. Many Belarussians want no involvement in someone else’s war. Several protests took place in Belarus at the start of the invasion, leading to predictable repression similar to that seen in Russia, with numerous arrests.
Crucially, Belarus’s security forces stuck by Lukashenko at the peak of protests; if they’d defected, the story could have been different. Full involvement in the war would likely see even Lukashenko loyalists turn against him, including in the military. Soldiers might refuse to fight. It would be a dangerous step to take. As Russia’s war drags on, Lukashenko could find himself walking an increasingly difficult tightrope.
Two countries, one struggle
It’s perhaps with this in mind that Lukashenko’s latest repressive move has been to extend the death penalty. State officials and military personnel can now be executed for high treason. This gives Lukashenko a gruesome new tool to punish and deter defections.
As well as worrying about their safety, Belarus’s activists – in exile or in jail – face the challenge of ensuring the cause of Belarussian democracy isn’t lost in the fog of war. They need continuing solidarity and support to make the world understand that their struggle against oppression is part of the same campaign for liberty being waged by Ukrainians, and that any path to peace in the region must also mean democracy in Belarus.
A staggering 40% of groundwater is used for global irrigation, this alone indicates the importance of this precious resource in navigating the population through impacts of climate change. Credit: SADC Groundwater Management Institute.
Opinion by Thokozani Dlamini (pretoria, south africa)
Inter Press Service
PRETORIA, South Africa, Mar 15 (IPS) – In contrast to its strategic role as an essential resource to help achieve community development and poverty alleviation globally, groundwater has remained a poorly understood and managed resource.
This is according to a scoping study pertaining to the status of groundwater resources management in SADC. The study continues to say that over a staggering 40% of groundwater is used for global irrigation, this alone indicates the importance of this precious resource in navigating the population through impacts of climate change.
Groundwater has become indispensable particularly for agriculture production in many countries, and it is said that it accounts for half of South Asia’s irrigation and China where it supports two-thirds of grain crops produced.
Sustainable groundwater development for water and food security can never be over emphasized in mitigating against the worsening impacts of climate change. As surface water becomes more variable and uncertain, groundwater provides a crucial buffer for commercial and small holder farmers – who rely on groundwater to keep their crops green.
Therefore, it is imperative that sustainable and innovative strategies are developed to ensure sustainable supply of groundwater resource for improved livelihoods.
Groundwater responds to the water demands in a more flexible and reliable way, which allows farmers to increase their yields and mitigate effects of extreme water shortages. While water in general is a critical input for agricultural production and plays a significant role in food security, science reveals that Sub-Saharan Africa is not on track to reach the sustainable development goal on eradicating hunger.
The report further asserts that the number of food insecure people is estimated to increase to 55.7million during the period 1 April 2022 to 31 March 2023 in the 12 Member States that provided data for the 2022 Regional Synthesis Report on Food Security, Nutrition and Vulnerability.
“More food needs to be produced to meet future demands due to population growth, lifestyle change and dietary changes and this calls for robust agricultural water solutions to sustainably manage water resources,” says Dr Manuel Magombeyi Regional Researcher at the International Water Management Institute.
Dr. Magombeyi further asserts that it is critical that people in general understand that as the food demand increases, so the water usage, and all these increases happen amidst climate change, therefore, thorough reconsideration of how water is managed in the agricultural sector, and how it can be repositioned in the broader context of overall water resources management and water security is critical.
Unfortunately, according to the United Nations Development Programme, at least 821 million people were estimated to be chronically under-nourished as of 2017, often as a direct consequence of environmental degradation, drought, and biodiversity loss.
Under-nourishment and severe food insecurity appear to be increasing in almost all regions of Africa. Several studies indicate that innovative Agricultural Water Solutions are urgently needed if we want to meet Sustainable Development Goal 2, Zero Hunger for everyone by 2030 as promulgated by the United Nations.
In the SADC region alone, at least 11 million people are facing critical food shortages due to drought caused by climate change. This situation calls for groundwater practitioners to think deeper and look for innovative solutions to support agricultural sector to improve food security.
According to Agricultural Water Management in Southern Africa Report, investments by both public and private sectors in Ag-water solutions represent an untapped opportunity. It is important that both sectors invest in Ag-water solutions to achieve the overall objective of poverty alleviation and broad-based agricultural growth. Most of these ag-water solutions have been implemented at a smaller scale. It is now important that they get upscaled for the benefits of larger communities, especially if the solution is working well.
The SADC Groundwater Management Institute has in the past years managed to help rural communities in some SADC Member States to ensure that they get access to water resources by tapping into groundwater resources available in respective countries.
Through the Sustainable Groundwater Management in SADC Member States project supported by the World Bank Group between 2016 and 2021, SADC-GMI managed to reach communities in Eswatini, Malawi, Mozambique, Zambia, Zimbabwe and assisted them to unlock groundwater resources for improved livelihoods.
Thokozani Dlamini is Communication and Knowledge Management Specialist for SADC Groundwater Management Institute
Emmanuel Macron is paying a high price for his push on pension reform as a survey on Sunday showed the French president is facing a new low in popularity — as low as during the protests of the so-called Yellow Jackets.
As the French take to the streets to protest against Macron’s pension reform, 70 percent of respondents said they are dissatisfied with the president, according to the Ifop barometer published by Le Journal du Dimanche. Macron’s popularity rating fell by 4 points in one month, it showed.
Since December, Macron has suffered a substantial drop of 8 points, and he now sees only 28 percent satisfied and 70 percent dissatisfied, according to the poll carried out, Le Figaro emphasized, between March 9 and 16.
That is the same period as the negotiations that finally led the Elysée to shun parliament and impose the unpopular pension reforms via a special constitutional power, the so-called Article 49.3, which provides that the government can pass a bill without a vote at the National Assembly, the lower house of parliament, after a deliberation at a Cabinet meeting.
The procedure has been used in the past by various governments. But this time it’s prompting a lot of criticism because of the massive public opposition to the proposed reform, which raises the legal retirement age from 62 to 64 years. Some media stress that recent opinion polls have shown that a majority of the French are opposed to this type of procedure.
“You have to go back to the end of the Yellow Jackets crisis in early 2019 to find comparable levels of unpopularity,” writes Le Journal du Dimanche commenting the survey. The outlet also stresses that dissatisfaction with Macron crosses all categories, the younger generations as well as the blue- and white-collar workers.
A total of 169 people, including 122 in Paris, were taken in custody for questioning on Saturday evening in France during demonstrations marred by tensions between the police and the protesters, according to French media citing figures communicated on Sunday by the Ministry of the Interior.
Opinion by Armand Houanye (ouagadougou, burkina faso)
Inter Press Service
OUAGADOUGOU, Burkina Faso, Mar 14 (IPS) – The writer is Regional Executive Secretary of the Global Water Partnership in West Africa (GWP-WA)Burkina Faso’s interim President Captain Ibrahim Traoré spoke late last year of the conflicts that are now blighting his country and much of his region. He described the situation in Burkina Faso as predictable given the endemic weaknesses in governance that he believes have led to the economic abandonment of many young people, particularly outside of urban areas.
He delivered these remarks on November 13th to political parties, civil society organizations, and traditional and customary leaders in Ouagadougou to raise awareness of Burkina Faso’s rapidly degrading security situation. Of particular note was his focus on water, as he described seeing people throughout the Southwest, Northwest and Sahel regions including Gorom-Gorom, Tinasane and Markoye carrying jerry cans to fetch water.
This led him to question why there were no development projects in these impoverished regions. The people walk, he lamented, for miles to get water for the cattle that die on the way.
There are no roads for trucks to even transport livestock feed to sustain livestock, he reflected, before referring to the Kongoussi-Djibo road bridge built in the 1950s that has fallen into such dilapidation that it can no longer support the trucks that would otherwise take the now rotting local produce to market.
All he says, because of a lack of investment in the construction and the maintenance of essential infrastructure.
His speech depicts a reality across the Sahel region where terrorist attacks have been rampant since 2012, following Mouammar Kadhafi’s assassination and the subsequent looting of Libya’s weapons deposits. Many villages have since been abandoned in Mali, Burkina Faso and Niger, with thousands of people having been displaced with no proper government intervention to curb the violence.
As clean drinking water is a basic need, lack of access to it triggers many problems at every level of society. Traditionally, villages are located close to waterways to allow for the smooth provisioning of water, as well as the practice of gardening to produce basic ingredients for food which can be consumed and sold for cash for the community.
With the rise of terrorist attacks mostly in Mali, Niger and Burkina Faso but reaching coastal countries such as Côte d’Ivoire, Togo and Benin, many villages have been abandoned or are under the control of armed terrorist groups who impose their own rules and dictates on the local people.
Displaced populations are deprived of their traditional water sources, be they natural water courses, standpipes or boreholes, cutting off their water supply and therefore the access to their means of physical and economic sustenance.
“They lay down the law for the management and use of water and other natural resources by delimiting areas to be exploited,” said a local elected authority to me in a terrorist dominated zone in the Central-Southern part of Mali, adding that, “the cultivable areas are reduced and they occupy the wooded areas suitable for agriculture and which contain the local water reserves.”
The chiefs of villages occupied under duress are obliged to cooperate with these groups. They are therefore the preferred interlocutors of all those who “seek permission to operate” in these controlled areas.
The opinion of the village chief is conditional to the prior agreement of the group to which the village belongs. There are real negotiations with these terrorist groups before any projects or partners are allowed to enter the territory.
The reality in Sahelian countries in general is that successive governments since independence have concentrated their “administration” on urban areas. But once you leave the urban areas the populations are left to their own devices with an administration that is more oppressive and not in the least concerned with providing sustainable responses to the development needs of these localities.
The agents of the land registry (customs), law enforcement (police, gendarmes), and nature protection (water and forests) are quicker to find ways to engage in racketeering than to offer the poor the services they require.
“We have lost a lot of funding which has been transferred to other localities deemed more accessible,” explained a local government official to me recently in one of the areas under control. “Given the fact that the groups themselves need to have privileged access to drinking water, they facilitate the arrival of certain partners to install water supply systems,” he added.
Water management and development is but one of many sectors affected by terrorist activities in the region, but water, unlike some other sectors, is a matter of survival.
There is therefore a critical need to enhance and improve the governance of water resources and land while ensuring that required investments are put in place to sustainably respond to the water related development needs of people living in urban and rural areas at all levels in Sahelian countries.
BP’s recent journey points to the need for instruments that influence profits specifically, and notably reconsideration of the controversial price control tool: a climate-driven price cap on oil. Credit: Bigstock
Opinion by Philippe Benoit (washington dc)
Inter Press Service
WASHINGTON DC, Mar 13 (IPS) – BP, the oil company that previously brought us “Beyond Petroleum” and more recently robust corporate climate goals, has announced a return in emphasis to its traditional business of producing oil. Drawn by the inescapable appeal of oil’s latest high profits, has BP rebranded itself as “Back to Petroleum?”
This type of shift highlights the importance of stronger market incentives for reducing emissions so that companies interested in decarbonizing see their financial interest align with that course. BP’s recent journey points to the need for instruments that influence profits specifically, and notably reconsideration of the controversial price control tool: a climate-driven price cap on oil.
These record profits — driven in part by high gas prices resulting from Russia’s invasion of Ukraine — also point to a major vulnerability for any market-driven climate effort. With the lure of these type of returns from the traditional petroleum business, it is difficult to see or sustain financial motivation to shift away.
Indeed, as BP made clear in announcing its ambitious 2022 climate targets: “bp is committed to delivering attractive returns to shareholders” — and petroleum, with its upside, is uniquely placed to deliver the potential of a high return. So long as there are big profits to be made from oil, these companies will continue to be drawn to their petroleum activities, notwithstanding any stated desire to shift to renewables.
However, this also points to what needs to be a focus of an effective climate policy for oil: reducing its profitability. Over the years, think tanks, academics and others have put forward carbon pricing as the most efficient emissions reduction instrument, but this discourse has failed to deliver significant results in practice, especially when it comes to oil companies.
As emissions continue to rise and the carbon budget shrinks, the time has come to explore other solutions. One tool that merits consideration — more precisely, reconsideration — is a cap on oil prices.
This “climate oil price cap” would be designed to increase the relative profitability and so financial appeal of renewables by limiting the upside on oil activities specifically (something a customary windfall profits tax set at the corporate level wouldn’t accomplish). It would thereby support and encourage BP and other oil companies to transform themselves from a traditional petroleum company into an “integrated energy company” (BP’s own term), one that can generate significant profits from renewables and other low-carbon products relative to its petroleum activities.
Oil price controls are, of course, not new and have a checkered history (e.g., President Nixon’s effort in the US 50 years ago). But the climate emergency presents a new threat that merits re-examining this instrument. Importantly, a price cap could also help energy-importing developing countries, as well as vulnerable households there and elsewhere, avoid the harmful impact of the high oil prices experienced in 2022 (another potential advantage over a windfall profits tax ).
Any effort needs to consider the lessons from the failed efforts of the past. For example, the cap should be set at a sufficient level to attract the desired supply – including to energy-importing developing countries — even as it precludes the type of record profits the oil industry saw last year. It should also build on the experience with the current Russian price cap.
While, admittedly today there isn’t sufficient support for aggressive climate policies, the prospect for strong action will likely increase over time as heat waves, flooding and other extreme weather events wreak havoc exacerbated by climate change. This in turn can be expected to increase the willingness of politicians and policymakers to be more ambitious down the road in taking climate action.
In anticipation of this changing landscape, creative options beyond traditional carbon pricing mechanisms should be explored and put before these decision-makers by think tanks, academics and others.
In this regard, the combination of BP’s recent record profits and shift in corporate policy points to the appropriateness of considering a price cap on oil as a possible tool to fight climate change by improving the relative profitability of low-carbon investments.
The run on Silicon Valley Bank (SVB) SIVB— on which nearly half of all venture-backed tech start-ups in the United States depend — is in part a rerun of a familiar story, but it’s more than that. Once again, economic policy and financial regulation has proven inadequate.
The news about the second-biggest bank failure in U.S. history came just days after Federal Reserve Chair Jerome Powell assured Congress that the financial condition of America’s banks was sound. But the timing should not be surprising. Given the large and…
Silicon Valley Bank has failed following a run on deposits, after its parent company’s share price crashed a record 60% on Thursday.
Trading of SVB Financial Group’s SIVB, -60.41%
stock was halted early Friday, after the shares plunged again in premarket trading. Treasury Secretary Janet Yellen said SVB was one of a few banks she was “monitoring very carefully.” Reaction poured in from several analysts who discussed the bank’s liquidity risk.
Below is the same list of 10 banks we highlighted on Thursday that showed similar red flags to those shown by SVB Financial through the fourth quarter. This time, we will show how much they reported in unrealized losses on securities — an item that played an important role in SVB’s crisis.
Below that is a screen of U.S. banks with at least $10 billion in total assets, showing those that appeared to have the greatest exposure to unrealized securities losses, as a percentage of total capital, as of Dec. 31.
First, a quick look at SVB
Some media reports have referred to SVB of Santa Clara, Calif., as a small bank, but it had $212 billion in total assets as of Dec. 31, making it the 17th largest bank in the Russell 3000 Index RUA, -1.70%
as of Dec. 31. That makes it the largest U.S. bank failure since Washington Mutual in 2008.
One unique aspect of SVB was its decades-long focus on the venture capital industry. The bank’s loan growth had been slowing as interest rates rose. Meanwhile, when announcing its $21 billion dollars in securities sales on Thursday, SVB said it had taken the action not only to lower its interest-rate risk, but because “client cash burn has remained elevated and increased further in February, resulting in lower deposits than forecasted.”
SVB estimated it would book a $1.8 billion loss on the securities sale and said it would raise $2.25 billion in capital through two offerings of new shares and a convertible bond offering. That offering wasn’t completed.
So this appears to be an example of what can go wrong with a bank focused on a particular industry. The combination of a balance sheet heavy with securities and relatively light on loans, in a rising-rate environment in which bond prices have declined and in which depositors specific to that industry are themselves suffering from a decline in cash, led to a liquidity problem.
Unrealized losses on securities
Banks leverage their capital by gathering deposits or borrowing money either to lend the money out or purchase securities. They earn the spread between their average yield on loans and investments and their average cost for funds.
The securities investments are held in two buckets:
Available for sale — these securities (mostly bonds) can be sold at any time, and under accounting rules are required to be marked to market each quarter. This means gains or losses are recorded for the AFS portfolio continually. The accumulated gains are added to, or losses subtracted from, total equity capital.
Held to maturity — these are bonds a bank intends to hold until they are repaid at face value. They are carried at cost and not marked to market each quarter.
In its regulatory Consolidated Financial Statements for Holding Companies—FR Y-9C, filed with the Federal Reserve, SVB Financial, reported a negative $1.911 billion in accumulated other comprehensive income as of Dec. 31. That is line 26.b on Schedule HC of the report, for those keeping score at home. You can look up regulatory reports for any U.S. bank holding company, savings and loan holding company or subsidiary institution at the Federal Financial Institution Examination Council’s National Information Center. Be sure to get the name of the company or institution right — or you may be looking at the wrong entity.
Here’s how accumulated other comprehensive income (AOCI) is defined in the report: “Includes, but is not limited to, net unrealized holding gains (losses) on available-for-sale securities, accumulated net gains (losses) on cash flow hedges, cumulative foreign currency translation adjustments, and accumulated defined benefit pension and other postretirement plan adjustments.”
In other words, it was mostly unrealized losses on SVB’s available-for-sale securities. The bank booked an estimated $1.8 billion loss when selling “substantially all” of these securities on March 8.
The list of 10 banks with unfavorable interest margin trends
On the regulatory call reports, AOCI is added to regulatory capital. Since SVB’s AOCI was negative (because of its unrealized losses on AFS securities) as of Dec. 31, it lowered the company’s total equity capital. So a fair way to gauge the negative AOCI to the bank’s total equity capital would be to divide the negative AOCI by total equity capital less AOCI — effectively adding the unrealized losses back to total equity capital for the calculation.
Getting back to our list of 10 banks that raised similar red margin flags to those of SVB, here’s the same group, in the same order, showing negative AOCI as a percentage of total equity capital as of Dec. 31. We have added SVB to the bottom of the list. The data was provided by FactSet:
Read Tomi Kilgore’s detailed guide to the wealth of information available for free on the MarketWatch quote page.
Ally Financial Inc. ALLY, -5.70%
— the third largest bank on the list by Dec. 31 total assets — stands out as having the largest percentage of negative accumulated comprehensive income relative to total equity capital as of Dec. 31.
To be sure, these numbers don’t mean that a bank is in trouble, or that it will be forced to sell securities for big losses. But SVB had both a troubling pattern for its interest margins and what appeared to be a relatively high percentage of securities losses relative to capital as of Dec. 31.
Banks with the highest percentage of negative AOCI to capital
There are 108 banks in the Russell 3000 Index RUA, -1.70%
that had total assets of at least $10.0 billion as of Dec. 31. FactSet provided AOCI and total equity capital data for 105 of them. Here are the 20 which had the highest ratios of negative AOCI to total equity capital less AOCI (as explained above) as of Dec. 31:
Again, this is not to suggest that any particular bank on this list based on Dec. 31 data is facing the type of perfect storm that has hurt SVB Financial. A bank sitting on large paper losses on its AFS securities may not need to sell them. In fact Comerica Inc. CMA, -5.01%,
which tops the list, also improved its interest margin the most over the past four quarters, as shown here.
Another bank on the list facing concern among depositors is Signature Bank SBNY, -22.87%
of New York, which has a diverse business model, but has also faced a backlash related to the services it provides to the virtual currency industry. The bank’s shares fell 12% on Thursday and were down another 24% in afternoon trading on Friday.
Signature Bank said in a statement that it was in a “strong, well-diversified financial position.”
