The iconic Chinese fishing nets along the Kerala coast offer a picturesque scene that draws tourists from around the world. However, the fishworkers that have used them for centuries livelihoods are in peril. Credit: Aishwarya Bajpai/IPS
Opinion by Aishwarya Bajpai (kochi, india)
Inter Press Service
KOCHI, India, Oct 10 (IPS) – Fishworkers are often invisible in discussions about climate change, yet they are at the heart of food security, feeding millions while struggling to feed their own families. Their fight for survival is not just about tradition or livelihood—it’s about justice. Shouldn’t their futures be at the forefront of climate justice debates?Every morning before dawn, fishworkers along the shores of Kochi, Kerala, head out to sea, casting their nets in the shadow of the iconic Cheenavala—the Chinese fishing nets that have become a symbol of their community. I witnessed this time-honored tradition, once a reliable means of survival, now a daily gamble, a fight against unpredictable seas and shrinking fish populations.
The COVID-19 pandemic exposed how vulnerable they are; despite being classified as essential workers, they were left without the protections they needed.
And now, as climate change tightens its grip, these fishworkers find themselves on the front lines of a new crisis. Rising sea temperatures, erratic weather, and depleting fish stocks have pushed them further into despair, forcing them to navigate a future as uncertain as the waters they depend on.
Martin, a fishworker from Kochi, Kerala, who smiled and invited me on his boat, has been fishing for over 25 years, reflecting on the mounting hardships. After a while explaining to me about the huge boat and the process of fishing, he said, “In these difficult times, when the government should be supporting us after generations of families have relied on fishing, we are left with nothing and are desperate for help. We purchase our tools and equipment for fishing, yet there’s no assistance from the government for education or healthcare.”
Fishworkers face uncertain future due to climate change and a lack of support from government. Credit: Aishwarya Bajpai/IPS
Martin continued, “Five to six people work on a boat, and money has to be given to the owner as well. We have started to rely on tourism now, where we invite tourists, especially foreigners, onto our boats (private property) to explain our craft and fishing process, for which we sometimes get compensated. Some are generous, and some are not! This used to be the only way of earning in the rough season (Monsoon Fishing Ban), but now, after the climate change, this has become the only source of income for us.”
Kochi, once known as Cochin, was a major global trading hub. It drew merchants from Arabia and China in the 1400s, and later the Portuguese established Cochin as their protectorate, making it the first capital of Portuguese India in 1530.
Today, the city’s rich architectural heritage, along with the iconic Cheenavala (Chinese fishing nets), are major tourist attractions. Fishermen here use these Chinese fishing nets as a traditional method of fishing.
Believed to have been introduced by the Chinese explorer Zheng He from the court of Kublai Khan, these iconic nets became a part of Kochi’s landscape between 1350 and 1450 AD. The technique, which is quite impressive to witness, involves large, shore-based nets that are suspended in the air by bamboo/teakwood supports and lowered into the water to catch fish without the need to venture out to sea. The entire structure is counterbalanced by heavy stones, making it an eco-friendly practice that preserves marine life and vegetation, relying solely on natural materials without harmful gadgets.
Once a vital tool for sustaining the livelihoods of Kochi’s fishworkers, the traditional Cheenavala fishing nets have now become a symbol of a deepening crisis. Climate change, particularly the warming of the Arabian Sea, has drastically reduced fish populations.
Ironically, the government profits from promoting this iconic symbol even as the seafood industry faces closures, with four export-oriented fish processing units shutting down in Kerela in recent months due to the shortage of fish. This stark contrast highlights the growing disconnect between tradition and survival in the face of climate change.
The walls of Kerala are adorned with graffiti advocating for fishworkers and marine biodiversity. In Kochi, a mural reads, “Save the largest fish on Earth,” calling attention to the need for conservation. Credit: Aishwarya Bajpai/IPS
Despite the Chinese fishing nets being a major tourist attraction, the government has shown little or no interest in preserving them. The process started in 2014 when a Chinese delegation, led by Hao Jia, a senior official of the Chinese embassy in India, met with Kochi’s then-mayor, Tony Chammany, to help renovate the nets and proposed constructing a pavement along Fort Kochi beach.
KJ Sohan, former mayor of Kochi and president of the Chinese Fishing Net Owners’ Association, expressed his support for the Chinese initiative to preserve the traditional fishing nets. He emphasized that such large nets, rooted in ancient techniques, are unique to this region. However, he also highlighted the significant governmental neglect of these nets. Insurance companies refuse to cover them, and they need to be replaced twice a year, which incurs substantial costs.
The Tourism Department later instructed the Kerala Industrial and Technology Consultancy Organisation (KITCO) to refurbish 11 of these nets and allotted 2.4 crore rupees (24 million), along with teakwood and Malabar for the repairs.
The authorities had initially refused to release funds directly, requiring the owners to start the refurbishment first, with promises of staggered payments. It has recently come to light that the boat owners, many of whom took out high-interest loans to begin the renovation, are now in financial distress as they have yet to receive the promised government funds, despite completing the work over a year ago.
A Chinese fishing net on the coast of Kochi, Kerala (India). Credit: Aishwarya Bajpai/IPS
Many took out loans and installed new coconut timber stumps, but even after nearly finishing the work, they are still waiting for the funds. This has left the fishworkers in debt while authorities cite GST-related issues for the delay. The owners argue they are exempt from the tax.
Fishworkers, both men and women, are often invisible in discussions about climate change, yet they are at the heart of food security, feeding millions while struggling to feed their own families. Their fight for survival is not just about tradition or livelihood—it’s about justice. If the government continues to turn a blind eye, Kerala’s fishworkers may have no choice but to seek support elsewhere, from international bodies, non-governmental organizations, or global climate finance mechanisms. Their struggles must be recognized, and their voices amplified in the push for climate justice.
Kerala’s fishworkers are not just battling the seas—they are fighting for their future. Without immediate action and meaningful support, we risk losing not only their livelihoods but an entire way of life. If the government cannot rise to the occasion, the world must step in to ensure that these communities do not slip into obscurity.
NEW YORK, Oct 04 (IPS) – Khalid Saifullah, Fellow, Save Bangladesh USA Inc.The commonly used Bangla phrase for siphoning off money out of the country – “taka pachar” – is rather misleading. Because taka, the Bangladeshi currency, is never taken out of Bangladesh. It’s not useful anywhere else. What goes out is its equivalence in foreign currencies, especially, US dollars. The technical term for such criminal act is Illicit Financial Flows (IFFs). Mistakenly, sometimes IFFs are referred to as money laundering – a processing of criminal proceeds to disguise their illegal origin.
Money laundering and illicit transfers of funds
Although there are some links between money laundering and IFFs, they are not the same activity. The United Nations Office on Drugs and Crime defines money laundering as “the conversion or transfer of property, knowing that such property is derived from any offense(s), for the purpose of concealing or disguising the illicit origin of the property or of assisting any person who is involved in such offense(s) to evade the legal consequences of his actions”.
On the other hand, Illicit financial flows (IFFs) refer to illegal movements or transfers of money or capital from one country to another. However, sources of such funds may not be illegal (e.g., corruption, smuggling).
In practice, IFFs can also involve ill-gotten money – the worst case as in Bangladesh. The billions of dollars that were taken out of the country were mostly obtained through corruption and stealing of public funds.
How do illegal fund transfers happen?
Nearly US$3.15 billion flows out illicitly from Bangladesh annually. If a common person wants to travel abroad with a few hundred of thousand dollars, they can simply slip it in their pocket and catch a flight which is perfectly legal if that amount is within the legal limit of a country. For example, one can legally take out a maximum of AUD10,000 out of Australia (or bring in) without having to make declaration. For Bangladesh, it is only USD5,000.
But cronies of the Hasina’s kleptocratic regime robbed and transferred millions and billions of dollars. According to a recent report, close to US$150 billion was siphoned off the country during 15 years of kleptocratic Hasina regime’s mis-rule. So, they must have carried out these very illegal activities through legal channels. How did it work though?
Well, it’s very difficult to know for sure, but it is believed that most IFFs happen through trade mis-invoicing or trade-based money laundering. Let’s try to understand the design with an example.
Let’s say, you want to launder one million dollars. Either you or your accomplice have an export-import business. Let’s say you need to import 10,000 units of a product each costing $50. But instead of $50, you declare that their unit value was $150. By “securing” assistance from some key people within the authorities, you get Bangladesh Bank to transmit one and half million dollars as the payment for your grossly over-declared imports to a foreign company you set up for this purpose. You pay the exporter half a million dollars for your legitimate imports, and in the process, you have succeeded in laundering the one million dollars you wanted to get out of Bangladesh. The same can be done for exports but in reverse. This is of course a simplistic example and there can be many creative variations of this menace.
There are reasons to believe that this happened a lot in the case of Bangladesh. Why? Well, to begin with, Bangladesh does have a vibrant export-import sector which can make trade-based money laundering accessible and difficult to trace. Secondly, many of Hasina’s cronies themselves were involved in international trading. Thirdly – and I don’t think many people know this – Bangladesh stopped sharing detailed international trade data with the UN after 2015. There can of course be other explanations for this, but the timing nevertheless raises questions. UN Comtrade, world’s largest source of international trade data, has data on most countries in the world but not Bangladesh, world’s eighth largest population and thirty-fifth largest economy.
We need detailed trade data
International trade data has the special characteristic that it’s a two-sided account. Bangladesh’s export of cotton T-shirts to US is also US’ import of cotton T-shirts from Bangladesh. In practice, there are some other factors at play but overall, this is how it is. Users can easily compare international trade data and any glaring disparities become immediately apparent.
One could argue that this still could be done since Bangladesh Bureau of Statistics (BBS), Exports Promotion Bureau (EPB) and Bangladesh Bank (BB) all publish external trade data. It would seem so but that’s not really the case. Without going into much details, the data published by these agencies lack the necessary details to be comparable. Their data is at an aggregated level and not disseminated in a comparable manner. EPB doesn’t even publish imports data (it’s probably not in their mandate).
Then, there’s the issue of accuracy. Weeks before Sheikh Hasina’s ouster, BB revised exports data stating that EPB’s figure was 10 billion USD higher than actual exports. The Chief Adviser Muhammad Yunus in his most recent address to the public promised to publish accurate trade data. It is a very necessary and welcome step. However, it is not sufficient. We need the necessary details in the data to allow for comparison with our trading partner countries’ data. In particular, we need:
Data by calendar year (Jan-Dec) and not only fiscal year.
Data by monthly frequency.
Breakdown by commodity codes up to at least HS (Harmonized System) 6-digits level. There are around 6,000 HS 6-digits codes available from the World Customs Organization (WCO). These codes can specify a commodity with sufficient details.
Commodity descriptions.
Breakdown by trading partner (ISO codes for country of origin for imports, country of last known destination for exports).
Breakdown by country of consignment (ISO codes for any third country the commodities may have passed through).
Mode of transport (sea, air, road, rail, etc.).
Breakdown by customs procedure codes (for what purpose the commodity was imported or exported).
Breakdown by trade flow (exports, imports, re-exports, etc.)
Value (free-on-board basis for exports; cost, insurance, and freight basis for imports), net weight and quantity.
Towards modernization and automation of financial intelligence
Accurate, timely and detailed trade data is important for analyses of possible trade mis-invoicing but it’s not sufficient in preventing money laundering altogether. What we need is an overhaul and automation of financial intelligence itself.
The backbone of such an automated system should be a Business Register (BR). A BR is exactly what it sounds like – it’s a register of all businesses in a country. A key component of the BR is the unique identifier. Each business or enterprise is assigned a unique ID. Once set up, businesses must be required to use this ID in all types of activities, from setting up bank accounts to trading.
The BR can contain many other information on the businesses including size, sector, economic activities and so on. Thanks to the unique identifier, BR can be used to link data from different domains, e.g., linking trade data with businesses and their banking activities.
Given the treasure trove of linked data available from customs declarations, banks and other sources – much of which cannot be published for public use due to confidentiality- the information can nevertheless be used to build very intelligent and sophisticated systems thanks to statistical modelling, machine learning and artificial intelligence which can flag any suspicious activities in real time. I mean, something has to be “off” in a transaction involving money laundering and the technology is out there to detect it.
The existence of such a system itself could lessen the problem of money laundering to a great extent because it will serve as a strong deterrent. Building this level of data capacity will of course take investment. But looking at the estimated 150 billion dollars laundered by Sheikh Hasina’s kleptocratic regime, it seems the return on investment is very enticing.
Khalid Saifullah is a trained statistician with 14 years of experience working in international organizations.
All six African sub-regions have experienced an increase in the temperature trends over the past six decades, leading to severe water stresses, not enough food and deepening poverty. Credit: Joyce Chimbi/IPS
by Joyce Chimbi (nairobi)
Inter Press Service
NAIROBI, Sep 05 (IPS) – With fewer than 100 days to go to COP29, the highest decision-making body on climate issues under the United Nations Framework Convention on Climate Change (UNFCCC), is getting shorter and the need for creative and innovative solutions to protect lives and livelihoods is extremely urgent.
The State of the Climate in Africa 2023 report shows all six African sub-regions have experienced an increase in the temperature trends over the past six decades. In Africa, 2023 was one of the three warmest years in 124 years, leading to unprecedented climatic carnage. The consequences are such that there is not enough food, deepening poverty, damage, displacement and loss of life.
But where many see challenges, there are also opportunities.
Speaking to the African Ministerial Conference on the Environment (AMCEN) in Abidjan, Côte d’Ivoire, today, Simon Stiell, Executive Secretary of UN Climate Change, said “climate action is the single greatest economic opportunity of this century. It can and should be the single greatest opportunity for Africa to lift up people, communities, and economies after centuries of exploitation and neglect.”
“The opportunity is immense. But so too are the costs for African nations of unchecked global heating. The continent has been warming at a faster rate than the global average. From Algeria to Zambia, climate-driven disasters are getting worse, inflicting the most suffering on those who did least to cause them.”
Jointly launched by the United Nations Economic Commission for Africa (ECA), the World Meteorological Organization (WMO) and the African Union Commission on September 2, 2024, at the 12th Climate Change and Development in Africa (CCDA12) Conference, the climate report shows Africa is disproportionately affected by the climate crises as the continent is warming at a rate that is slightly faster than the global average.
The year 2023 was the warmest on record in many countries, including Mali, Morocco, the United Republic of Tanzania, and Uganda. The warming has been most rapid in North Africa, with Morocco experiencing the highest temperature anomaly.
The report indicates that parts of Morocco, Algeria, Tunisia, Nigeria, Cameroon, Ethiopia, Madagascar, Zambia, Angola, and the Democratic Republic of the Congo experienced severe drought in 2023. Following severe droughts in the Greater Horn of Africa, three countries, including Kenya, Somalia and Ethiopia, experienced extensive and severe flooding, with at least 352 deaths and 2.4 million displaced people reported.
Amidst the far-reaching devastating loss and damage, the UN Climate Chief emphasised that in Africa, as in all regions, the climate crisis is an economic sinkhole, sucking the momentum out of economic growth and that in fact, many African nations are losing up to 5 percent of GDP as a result of climate impacts. It is African nations and people who pay the heaviest price.
Simon Stiell, Executive Secretary of the United Nations Framework Convention on Climate Change (UNFCCC), says COP29 in Baku must signal that the climate crisis is core business for every government, with financial solutions to match. UN Photo/Loey Felipe
Placing additional burden on poverty alleviation efforts, which could in turn significantly hamper growth, the report shows many countries are diverting “up to 9 percent of their budgets into unplanned expenditures to respond to extreme weather events. By 2030, it is estimated that up to 118 million extremely poor people—or those living on less than USD 1.90 per day—will be exposed to drought, floods and extreme heat in Africa if adequate response measures are not put in place.”
Putting it into perspective, Stiell said, “Consider food production being hit hard, contributing to the re-emergence of famine, while also pushing up global prices, and with them inflation and the cost of living. Desertification and habitat destruction are driving forced movements of people. Supply chains are already being hit hard by spiralling climate impacts,” he said.
Further cautioning that “it would be entirely incorrect for any world leader—especially in the G20—to think: although incredibly sad, ultimately it is not my problem. The economic and political reality—in an interdependent world—is we are all in this crisis together. We rise together, or we fall together. But if the climate and economic crises are globally interlinked. So too are the solutions.”
In sub-Saharan Africa alone, it is estimated that climate adaptation will cost USD 30 billion to USD 50 billion, which translates to two to three percent of the regional GDP per year over the next decade. With COP28 having concluded the first-ever stocktake of global climate action—a mid-term review of progress towards the 2015 Paris Agreement—COP29 has been dubbed the ‘finance COP’—an opportunity to align climate finance contributions with estimated global needs.
COP29 will also be an opportunity to build on previous success, especially in the heels of a most successful COP28, whose ambitious commitments include: to transition away from all fossil fuels quickly but fairly; to triple renewable energy and double energy efficiency; and to go from responding to climate impacts to truly transformative adaptation.
While recognizing these big commitments, Stiell said delivering on them will unlock a goldmine of human and economic benefits that includes cleaner, more reliable and affordable energy across Africa. More jobs, stronger local economies, underpinning more stability and opportunity, especially for women. That electrification and lighting at night in the home means children can do homework, boosting education outcomes, with major flow-on productivity gains driving stronger economic growth.
“Cooking with traditional fuels emits greenhouse gases roughly equivalent to global aviation or shipping. It also contributes to 3 million premature deaths per year. It would cost 4 billion US dollars annually to fix this in Africa—an outstanding investment on any accounting,” he said.
Further stressing the need to link nature-based climate solutions with biodiversity protection and land restoration, as this will drive progress right across the 17 Sustainable Development Goals. Yet, he reiterated, African nations’ vast potential to drive forward climate solutions is being thwarted by an epidemic of underinvestment.
“Of the more than USD400 billion spent on clean energy last year, only USD2.6 billion went to African nations. Renewable energy investment in Africa needs to grow at least fivefold by 2030. COP29 in Baku must signal that the climate crisis is core business for every government, with finance solutions to match,” Stiell emphasized.
“It is time to flip the script. From potential climate tipping points to exponential changes in business, investment, and growth. Changes that will further strengthen African nations’ climate leadership and vital role in global climate solutions, on all fronts. Your role at COP29—and your voices in the lead-up—are more important than ever, to help guide our process to the highest-ambition outcomes the whole world needs.”
Ships await their turn to cross the Panama Canal from the Pacific to the Atlantic Ocean. Credit: Emilio Godoy / IPS
by Emilio Godoy (panama)
Inter Press Service
PANAMA, Aug 09 (IPS) – In 2021, the Panama Canal welcomed a French experimental ship on a world tour, the Energy Observer, the first electric vessel powered by a combination of renewable energies and a hydrogen production system based on seawater.
The vessel exemplifies Panama’s aspiration to become a regional hub for hydrogen, the most abundant gas on the planet, but faces the existential decision of whether to generate it from renewable energy or fossil gas.
For Juan Lucero, coordinator of the Ministry of the Environment’s National Climate Transparency Platform, green hydrogen would be the best option, given its renewable energy, strategic position and the influence of international policies to reduce greenhouse gas (GHG) emissions in sea transport.
“Panama has natural gas, and companies are interested in taking part in this business, in this case blue hydrogen. If Panama wants to be a hub, then blue is a good option,” he told IPS.
He stressed that “for Panama, it has always been a priority to provide services, to be an energy hub. We have tradition, experience, history, as a hub for supplying bunker (a petroleum distillate) ships. The idea is to achieve that transition.”
The production of hydrogen, which the fossil fuel industry has been using for decades, has now been transformed into a coloured palette, depending on its origin.
Thus, “grey” comes from gas and depends on adapting pipelines to transport it.
By comparison, “blue” has the same origin, but the carbon dioxide (CO2) emanating from it is captured by plants. Production is based on steam methane reforming, which involves mixing the first gas with the second and heating it to obtain a synthesis gas. However, this releases CO2, the main GHG responsible for global warming.
Meanwhile, “green” hydrogen is obtained through electrolysis, separating it from the oxygen in water by means of an electric current.
The latter type joins the range of clean sources to drive energy transition away from fossil fuels and thus develop a low-carbon economy. Today, however, hydrogen is still largely derived from fossil fuels.
In its different colours, Panama joins Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, Paraguay, Peru and Uruguay in having national hydrogen policies.
Penonomé wind farm, located in the central Panamanian province of Coclé. Credit: Emilio Godoy / IPS
Ambition
In 2022, the Panamanian government created the High Level Green Hydrogen and Green Hydrogen Technical committees to drive the roadmap in that direction.
But it has not made progress in the creation of free zones for trade and storage of green hydrogen and derivatives; updating regulations; and encouraging port activities to use electric vehicles, install decentralised solar systems, introduce energy efficiency and generate heat through solar thermal energy.
The green hydrogen strategy approved in 2023 includes eight targets and 30 lines of action, foreseeing the annual production of 500,000 tonnes of this energy and derivatives, to cover 5% of the shipping fuel supply by 2030.
In 20 years, the estimate rises to the supply of 40% of shipping fuels.
But this potential would require 67 gigawatts (Gw) of installed renewable capacity, which is a substantial deployment in a country whose economy is highly dependent on the activity of the inter-oceanic canal between the Pacific and the Atlantic, inaugurated in 1914 and expanded a century later, in a project that doubled its capacity and came into operation in 2016.
In 2023, the Panamanian energy mix relied on hydropower, gas, wind, bunker, solar and diesel, with an installed capacity of 3.47 Gw at the start of 2024. Panama currently has at least 31 photovoltaic plants and three wind farms.
Electricity generation accounted for some 24 million tonnes of CO2 emissions in 2021, with the largest contributors being energy (70%) and agriculture (20%).
But in 2023, the country declared itself carbon neutral, i.e. its forests capture the pollution released into the atmosphere, having a negative balance in GHG emissions.
The national strategy includes the construction of a 160 megawatt (MW) solar plant and an 18 MW wind power farm in the centre-south of the country, as well as a second 290 MW photovoltaic plant in the northern province of Colón.
In this province, a green ammonia production plant is planned to supply the future demand for shipping fuel, with an annual production of 65,000 tonnes and an investment of US$ 500 million.
The global shipping sector considers hydrogen, ammonia and its derivative, methanol, to be viable. The latter, which is also used to make fertilisers, explosives and other commodities, can be obtained from green hydrogen.
A demand of up to 280,000 tonnes of green ammonia per year is projected by 2040, which would require the installation of 4.2 Gw of electrolysis.
Leonardo Beltrán, a non-resident researcher at the non-governmental Institute of the Americas, told IPS about the process of building strategies, institutional vision, and short, medium and long-term goals.
“They have taken giant steps in a relatively short period of time. They already have the infrastructure, the canal. If that demand is met, it could be a game changer. If you can connect the canal to other ports, to the United States or Europe, they could very well have that (green) corridor that would anchor a relevant demand. That would boost on-site and also regional generation,” he said from Mexico City.
With support from the Inter-American Development Bank (IDB) and the United Nations Environment Programme (UNEP), Panama is developing pre-feasibility projects on the production of green hydrogen, its conversion to ammonia and the installation of an ammonia dispatch station as a clean shipping fuel, and on the production of green aviation paraffin.
The roadmap found to be more feasible the production of hydrogen in Panama, the import of green ammonia and the processing of green shipping fuel.
Panama aspires to become a regional hub for green hydrogen, obtained from water and renewable energy sources, including gas and ammonia production plants. Infographic: National Energy Board
Also, the country is considering manufacturing green paraffin for aviation, given that it hosts an air transport hub in the region, although testing is in its infancy and involves a much longer process than in the case of shipping.
Harmonisation
The hydrogen strategy is a function of Panama’s logistical, energy and climate change needs.
Panama currently has 10 tax-free fossil fuel areas, with storage capacity of more than 30 million barrels (159 litre) equivalent and one liquefied fossil gas area, which are tax exempt and could be the model for future hydrogen generation areas.
In 2021, the country shipped 42.79 million tonnes of fuel to more than 44,000 vessels, a figure that will grow by 2030. By comparison, hydrogen passing through the canal would total 81.84 million tonnes in 2030 and 190.96 million in 2050.
In its voluntary climate contributions under the Paris Agreement, Panama pledged to reduce total emissions from the energy sector by at least 11.5% in 2030, from its 2019 level, and by 24% in 2050.
The autonomous Panama Canal Authority’s plan includes the introduction of electric vehicles, tugboats and boats using alternative fuels; the replacement of fossil electricity with photovoltaics and the use of hydropower, to become carbon neutral by 2030, with an investment of some US$8.5 billion over the next five years.
The canal reduces some 16 million tonnes of CO2 each year.
Tolls and shipping services are its biggest sources of revenue, and thus the importance of developing shipping fuels based on clean hydrogen.
In the first nine months of 2023, 210.73 million long tons (1,016 kilograms) went through the interoceanic infrastructure, down from 218.44 million in the same period in 2022.
Of the total cargoes, one third are fossil fuels. Container, chemical, gas and bulk carriers are the main transports.
Lucero said the country is looking for investments in renewable energy, particularly green hydrogen.
“This market has to be developed in an orderly way. Demand has to be driven; otherwise, the investment will not be profitable. There are uncertainties, but the line that has been taken is that hydrogen is the future and we want to break away from being followers to become leaders, to seize the moment to develop and be prepared when the boom arrives,” he stressed.
For expert Beltrán, if the government that took office on 1 July follows this route, it would send a strong signal to the sector and thus pull the shipping sector toward energy transition.
“Replacing imports with local product is more convenient, and the way would be with the available, renewable resource. That would impact local development and contribute to the energy transition agenda,” he said.
Green chillies, salt and ants on a stone mortar pestle depicts the process of how the chutney is prepared. Photo courtesy: Rajesh Padhial
by Diwash Gahatraj (udula, india)
Inter Press Service
UDULA, India, Jul 02 (IPS) – On a scorching May morning, Gajendra Madhei, a farmer from Mamudiya village, arrives at the local bazaar in Udula, a town in Odisha’s Mayurbhanj district. He displays freshly caught red weaver ants, known locally as kai pimpudi, in the bustling tribal market.
Thanks to the recent recognition of Mayurbhanj’s Kai chutney, or red weaver ant chutney, with a Geographical Indication (GI) tag awarded in January, his business of selling the raw ants has seen a significant surge in profitability.
“Previously, a kilo of ants would fetch me around Rs 100, but now prices have skyrocketed. I sell a kilo for Rs. 600–Rs. 700,” he shares. The GI tag recognition has fueled the demand for the ants and highlighted their nutritional importance, previously overlooked as a tribal dish.
Chutney is a savory Indian condiment eaten with rice or chapati (wheat bread). Kai chutney is prepared by grinding red weaver ants with green chilies and salt on a stone mortar and pestle.
“For generations, many indigenous people in the district have been consuming kai chutney as a remedial cure for colds and fevers,” explains thirty-year-old Madhei, who belongs to the Bathudi tribe. In the landscape near the Simlipal Tiger Reserve in Mayurbhanj district, various tribes such as Kolha, Santal, Bhumija, Gond, Ho, Khadia, Mankidia, and Lodhas cherish this unique dish.
This year, the granting of a GI tag to Mayurbhanj Kai Chutney signifies a significant milestone in its journey from remote tribal villages to global food tables. This recognition acknowledges and safeguards the traditional knowledge, reputation, and distinctiveness associated with the chutney. It serves to preserve the cultural heritage and economic value of the dish while also preventing unauthorized use or imitation of its name and production methods.
Red weaver ants, scientifically known as Oecophylla smaragdina, thrive abundantly in Mayurbhanj district of Odisha year-round and are commonly available in local bazaars. Residing in trees, these ants exhibit a distinctive nesting behavior, weaving nests using leaves from their host trees. Due to their potent sting, which causes sharp pain and reddish bumps on the skin, people often maintain a safe distance from red weaver ants. However, in Mayurbhanj, where there is a significant Adivasi population, these ants are considered a delicacy. Whether consumed raw or in the form of chutney, they hold a significant place in the culinary traditions of the locals.
Nests of red weaver ants on trees. Photo courtesy: Rajesh Padhial
No More Tribal Delight
The traditional practice of consuming red weaver ants in Mayurbhanj has gained wider recognition beyond tribal communities after the GI tag.
“People across the State of Odisha knew about the ant-eating Adivasi tradition of Mayurbhanj, but the GI tag has helped to promote its nutritional values across all communities. This has created a high demand for the ants in the local market,” says Dr. Subhrakanta Jena from the Department of Microbiology at Fakir Mohan University in Odisha.
Jena highlights the nutritional value of red weaver ants, noting their richness in valuable proteins, calcium, zinc, vitamin B-12, iron, magnesium, potassium, sodium, copper, amino acids, and other nutrients. He suggests that consuming these ants can boost the immune system and help prevent diseases. Scientific studies have also indicated the dish’s nutritional value, emphasizing its high protein content and immunity-boosting qualities.
Traditionally, it goes to a dish for a common cold, fever, or body ache. The weaver ant, touted as a superfood, is known to enhance immunity due to its high protein and vitamin content.
“The tangy chutney, celebrated in the region for its healing properties, is considered vital for the nutritional security of the tribal people. Tribal healers also create a medicinal oil by soaking ants in pure mustard oil. After a month, it’s used as body oil for babies and to treat rheumatism, gout, ringworm, and more. Local residents also consume it for health and vitality,” says Nayadhar Padhial, a resident of Mayurbhanj.
Padhial, a member of the tribal community belonging to Particularly Vulnerable Tribal Groups (PVTGs), emphasizes the community’s heavy reliance on forest-based livelihoods. For generations, indigenous communities from the Mayurbhanj district have ventured into nearby forests to collect kai pimpudi (red weaver ants). Approximately 500 tribal families sustain themselves by gathering and selling these insects, along with the chutney made from them. Padhial, also a member of the tribe, filed the GI registration in 2022.
Sellers venture into the Simlipal Tiger Reserve and its surrounding areas to collect red weaver ants, which nest in tall trees with large leaves.
“It is a laborious process to collect ants from trees,” Madhei explains. Ant collectors use axes to cut the branches where ants make their nests. “We have to be quick to keep the ants in plastic jars after they fall on the ground from trees because they bite hard, which might cause extreme pain,” he adds.
The kai chutney of Mayurbhanj is renowned among the indigenous communities residing in the neighboring states of Chhattisgarh and Jharkhand. In the Bastar region of Chhattisgarh, it is known as ‘Caprah’, while in the Chaibasa area of Jharkhand, it transforms into ‘demta’, cherished as a tribal delicacy.
Growing Love for Bugs
Insects like ants serve as a rich source of both fiber and protein, and according to the UN Food and Agriculture Organization (FAO), they offer significant benefits for human and planetary health. Entomophagy, the practice of consuming insects as food, has been ingrained in various cultures throughout history and remains prevalent in many parts of the world, particularly in Asian and African cultures.
The perception of eating insects, once considered taboo or repulsive in the Western world, is gradually shifting. Reports indicate that the European Union is investing over $4 million in researching entomophagy as a viable human protein source.
Internationally, entomophagy has transcended its initial “eww factor,” with some food entrepreneurs elevating it to the gourmet food category. Examples include protein pasta made from cricket flour and cricket chips, which are gaining traction in Western food markets.
Throughout history, humans have relied on harvesting various insect life stages from forests for sustenance. While Asia has a long tradition of farming and consuming edible insects, this practice has now become widespread globally. “With an increase in human population and increasing demand for meat, edible ants have the potential to emerge as a mainstream protein source,” Padhial suggests.
This shift could yield significant environmental benefits, including lower emissions, reduced water pollution, and decreased land use. Embracing insects as a dietary staple offers a promising alternative for obtaining rich fiber and protein in our diets.
Andiswa Mlisa, Principal Advisor – Business Development, PIRMO at SPC giving a demo at the Digital Earth Pacific launch. Credit: SPC
by Catherine Wilson
Inter Press Service
Apr 15 (IPS) – Winning a battle for survival requires understanding the opponent. And, for the peoples of 22 island nations and territories scattered across more than 155 million square kilometres of Pacific Ocean, the volatility and wrath of the climate are their greatest threats.
The region harbours three of the world’s most disaster-prone countries, while eight are among those that suffer the highest disaster-related losses to Gross Domestic Product (GDP).
But decision-makers at all levels across the region are grappling with a lack of reliable, detailed information about the connections between climate extremes and changes occurring on their islands. In a bid to bridge the deficit of data, the regional scientific and principal organisation, the Pacific Community (SPC), is spearheading a new project, called Digital Earth Pacific, to capture extensive satellite information about climate change and natural disasters in the region.
“This is a real first for the Pacific and will bring incredible value to the region, which is so vast, but managed and stewarded by a small number of overstretched people in our member governments,” Dr Stuart Minchin, Director-General of the Pacific Community in Noumea, New Caledonia, told IPS.
Mary Nipisina cultivating her peanut garden in Tanna, Vanuatu. Farmers will be able to access the DEP for easy access to up-to-date satellite derived information. Credit: SPC Pacific Island communities cannot afford escalating economic consequences of climate disasters. Credit: SPC
“Digital Earth Pacific provides a solution to the tyranny of distance that our Pacific people have to live with every day, allowing operational earth observation satellites to assist in monitoring and management of the vast Blue Pacific Continent,” he continued.
Satellites provide an invaluable timeline of pictures, past and present, of the ways climate change and natural disasters are affecting coastlines, forest cover, population centres, and food production.
The Pacific Islands are home to about 12.7 million people and natural disasters are leading to annual average losses in the region of USD 1.07 billion, reports the Australian Aid Agency.
Digital Earth Pacific, launched by the Pacific Community in October last year, aims to halt that trend. To do this, it will set up far-reaching digital public infrastructure that gives national leaders, decision-makers, policymakers, and citizens, including farmers and local communities, easy access to up-to-date satellite-derived information. It will equip islanders to make better decisions about everything from building climate-resilient infrastructure to planting crops.
The project will draw on the wealth of scientific information from Microsoft’s Planetary Computer and treat it as ‘public goods’ to be used by those who need it. It is now in the last stages of the first phase of development, with significant progress already made in establishing the digital infrastructure and designing products and applications. Minchin said that they had captured “coastline change, mangroves, and surface water resources, and each of these products is available for every island atoll and rock across the entire Blue Pacific Continent.”
This is only “the beginning, though, with a significant pipeline of other products in development, bringing the region not just a historical view of how these issues have impacted local areas but an ongoing operational monitoring tool that will be updated regularly with new satellite observations,” Minchin explained.
The development of products and services has been informed by extensive consultations with Pacific Island countries. “The insights from the consultations gave the project a very good indication of what kind of baseline data is missing and where earth observations can fit in for sound decision-making,” Sachindra Singh, the Geoinformatics Team Leader in the Pacific Community’s Geoscience Division in Suva, Fiji, told IPS.
There is no Pacific Island nation that has not suffered the blow of devastating cyclones, the merciless corrosion of land by the sea or human hardships when the necessities of food and water perilously decline in the face of droughts or saltwater contamination.
This century, the Pacific faces a forecast of relentless temperature increases, extreme rainfall, and floods that risk the perishing of crops and rises in human illness and disease, such as heat stress and dengue fever, reports the Intergovernmental Panel on Climate Change (IPCC). More destructive cyclones and rising sea levels will lead to continued loss and damage to towns, villages, and basic services, for instance, water, sanitation, power, and roads.
In recent years, the region has been burdened with exorbitant loss and damage bills from cyclones. In 2015, Cyclone Pam cost Vanuatu USD 449.4 million, while Cyclone Winston, which descended on Fiji in 2016, caused damages to the value of US$600 million.
SPC Director General Stuart Minchin at the DEP Launch in Noumea last year. It is hoped that the project will assist in the containment of the impacts of climate disasters in terms of lives and livelihoods. Credit: SPC Destruction from the Hunga Tonga–Hunga Ha?apai eruption and tsunami in 2022. Natural disasters are leading to annual average losses in the region of USD 1.07 billion. Credit: SPC
Pacific Island nations cannot afford the escalating economic consequences of climate disasters. Especially because ‘countries in the Pacific region commonly face low GDP growth, high reliance on grants and external loans and under-development in disaster-resilient infrastructure, the economic impact of natural disasters tends to be larger than for other comparable low-income and emerging economies,’ reports the International Monetary Fund (IMF).
The new digital project is, therefore, an essential tool for prevention, ensuring that islanders can act effectively before the next disaster hits and build lives that are resilient to climate excesses in the decades ahead.
At this stage, the project will have operational products ready to use by 2024.
“All this information is made easily accessible through the Digital Earth Pacific website in a user-friendly viewer,” Singh said.
Users can then “identify how their shorelines have changed over time, what areas of their islands are floodprone or have historically faced droughts. They will be able to identify how the health of their mangroves recovers after a severe tropical cyclone and monitor the progress of replanting efforts over the years,” he continued.
A major beneficiary will be the Cook Islands, a self-governing group of 15 islands, including low-lying coral atolls, located between Tonga and French Polynesia. It has a population of about 17,500 people who live on a total island landmass of 240 square kilometres. Here, people contend with limited land for food production, an expanding population, and constrained water resources. And, from November to April each year, the country is exposed to tropical cyclones.
John Strickland, Director of Emergency Management in the Cook Islands, told IPS that the country was particularly prone to cyclones, flooding, sea surges, and drought.
“With 30 years of satellite data collected through Digital Earth Pacific… has provided images of how the Cook Islands’ coastal area has been affected by climate change, also indicating water observations during floods,” Strickland said.
“With the data captured, this will assist the Cook Islands in future planning on ensuring that affected coastal and low-lying areas affected by floods are captured and monitored. It will provide us the ability to report on affected areas and forecast, in future, zones that are vulnerable during a disaster.”
The Pacific Community also believes that access to the data will aid economic growth by informing better investment and planning by local industries and businesses.
Bringing such a massive infrastructure scheme to fruition will take an equally sizeable investment. And the Pacific Community is currently seeking donors and partners who will help the vision become reality.
“We have already received strong support from the National Oceans and Atmospheric Administration (NOAA), the United Kingdom and New Zealand governments and the Patrick J. McGovern Foundation, allowing us to develop the Digital Earth Pacific capability for the first year or two of operation and we are very grateful for this support to date,” Minchin said. But he emphasised that ongoing financial and technical support is vital in the coming years.
Ultimately, the Pacific Community’s goal is to give islanders the power to forge sustainable lives, limit climate-related poverty, reduce fiscal exposure, and retain their sovereignty.
Opinion by Jomo Kwame Sundaram (kuala lumpur, malaysia)
Inter Press Service
KUALA LUMPUR, Malaysia, Feb 07 (IPS) – Investor-State Dispute Settlement (ISDS) provisions in international trade and investment agreements – long abused by opportunists with means – are slowly being rejected by cautious governments.
Jomo Kwame SundaramDeveloping country governments need to be much more wary of ISDS and its implications, and should urgently withdraw from existing commitments. They should expunge ISDS clauses in existing trade and investment agreements and exclude them from new ones.
ISDS ripe for abuse
ISDS allows a foreign investor to sue a ‘host’ government for compensation by claiming new laws, regulations and policies adversely affect expected profits, even if changed in the public interest. It involves binding arbitration without going to court.
ISDS provisions are included in many free trade agreements (FTAs) and bilateral investment treaties (BITs). These were invoked in 84% of cases before the World Bank Group’s International Centre for Settlement of Investment Disputes (ICSID), the most used arbitration forum. Investment contracts and national investment laws are also invoked.
ISDS decisions are made by commercial ‘for-profit’ arbitrators prone to conflicts of interest. Foreign investors can thus seek compensation amounting to billions of dollars via a parallel legal system favouring them.
ISDS provisions in such agreements enable foreign investors to sue governments for billions of dollars in compensation by claiming changes in national law or policy will reduce profits for their investments.
Neocolonial ISDS
During the colonial era, imperial authorities often used concession contracts to grant private companies exclusive rights to extract resources, such as minerals and crops, or conduct other economic operations, including building infrastructure and operating utilities.
Investments were protected by (colonial) law, and sometimes by investment contracts after independence. Companies might negotiate contracts with governments to get better terms. A tenth of the claims before the ICSID involved such contracts.
Thus, ISDS perpetuates a colonial pattern of privileging the interests of foreign capital. The World Bank’s Foreign Investment Advisory Service (FIAS) has long promoted including ISDS in domestic investment laws. Thirty of the 65 countries it advised enacted new laws providing for such arbitration.
Investment treaty arbitration started as a post-colonial innovation to protect the assets of former colonial powers from newly independent states. Investment arbitration rules deliberately privilege foreign investment over national law.
ISDS abused, biased and corrupt
ISDS encourages abuse and corruption. As legal fees and arbitration awards tend to be very significant for developing countries, when invoked, ISDS has a chilling effect intimidating host governments, often forcing them to concede or compromise regardless of the merits of the claims.
Nigeria was ordered to pay US$11 billion to a British Virgin Islands company, Process & Industrial Developments (P&ID). P&ID had used ISDS to claim compensation from Nigeria for allegedly breaking gas supply and processing contract.
When P&ID initiated ISDS proceedings in August 2012, it had not even bought a site for the gas supply facility. Yet, it claimed to be ready to fulfil its contractual obligations.
Presiding English High Court Judge Knowles expressed “puzzlement over how the Tribunal failed to notice the serious irregularities” despite various “red flags” of fraud noted by others.
Elsewhere, Pacific Rim Mining Corp, a Canadian company, had proposed a massive gold mine in El Salvador using water-intensive cyanide ore processing. Later, it claimed the government had violated its domestic investment law by not issuing a permit for the mine.
The ICSID ultimately rejected the company’s claim, ordering it to pay two-thirds of the US$12 million El Salvador had spent on legal fees. But the company has refused to pay.
Wake-up call ‘down under’
The Australian Fair Trade and Investment Network (AFTINET) advocacy group has updated its brief supporting its call for the urgent review and removal of ISDS clauses in the country’s existing foreign trade and investment agreements.
AFTINET has specifically urged the Australian Joint Standing Committee on Treaties (JSCOT) to review and amend the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA).
The Australian Labor Party government, elected in May 2022, pledged not to include ISDS in new trade agreements, and to review such provisions in current agreements. Its brief focuses on ISDS provisions used by Australian mining billionaire Clive Palmer to sue Canberra.
Registering his Zeph Investments in Singapore, Palmer has used AANZFTA ISDS provisions to get compensation from Australia in two matters. The first is his application for an iron ore mining lease in Western Australia.
The second is against the authorities’ refusal of coal mining permits in Queensland for environmental reasons. Palmer has also made a third claim invoking the Singapore-Australia FTA, bringing his total claims to nearly A$410 billion.
Despite the government’s policy against ISDS, the provision was not reviewed in the amended AANZFTA. AFTINET is urging Canberra to urgently remove its exposure to ISDS cases as Palmer’s actions have made this all the more urgent.
ISDS abuses recognised
The Palmer case has increased concerns about ISDS, especially the abuse of lack of transparency. Arbitration processes are typically closed-door, preventing public, including forensic scrutiny of business transactions and practices.
AFTINET notes “excessive” ISDS claims have been growing, while Judge Knowles noted the “severe abuses” of ISDS in the Nigeria v. P&ID case “driven by greed”.
The huge compensations sought and awarded have encouraged even more “long-shot, speculative ISDS claims”. Such claims are typically based on “loose” book-keeping and dubious projections and other calculations, easily falsified by well-paid accomplices.
While the Australian government pledges no new ISDS commitments, but also wants to get rid of earlier ones, much more vulnerable developing country governments seem quite oblivious of the huge risks they are exposing their countries to!
Third UN Conference of Landlocked Developing Countries will be an opportunity to address the issues these countries face. Credit: Naureen Hossain/IPS
by Naureen Hossain (united nations)
Inter Press Service
UNITED NATIONS, Feb 06 (IPS) – Landlocked developing countries need greater support from the international community so that they are no longer left behind when it comes to progressing with the SDGs, says the UN High Representative of the Least Developed Countries.
The Third UN Conference of Landlocked Developing Countries (LLDC3) is set to be hosted in Kigali, Rwanda, in June. A preparatory committee for the conference has been established and convened its first meeting on Monday.
The overarching theme of the conference, “Driving Progress through Partnerships,” is expected to highlight the importance of support from the global community in enabling LLDCs to meet their potential and achieve the SDGs. The conference invites the participation of multiple stakeholders, including heads of state and government, the private sector, and civil society. Several senior leaders in the UN system, including Secretary-General António Guterres, are expected to attend the LLDC3 Conference.
Thirty-two countries are classified as LLDCs, 17 of which are also classified as Least Developed Countries (LDCs). Sixteen are in Africa, and the remaining are located across Asia, Europe, and South America. This year will mark the first time that the LLDC Conference will be hosted in Africa.
Rabab Fatima, Under Secretary-General and High Representative of the Office for the Least Developed Countries, and the Secretary-General of the LLDC3 Conference, remarked that this conference would be a “once-in-a-decade opportunity” for the global community to address the needs of the LLDCs in order to “ensure that nobody is left behind.”
“The 32 landlocked developing countries are grappling with unique challenges due to their geographical and structural constraints and lack of integration into world trade and global value chains. Their situation has been further exacerbated by the lingering effects of the pandemic, climate change, and conflict,” she said.
The lack of direct access to coastal ports means that LLDCs rely on transit countries to connect them with international markets. This can lead to high trade costs and delays in the movement of goods. In other cases, many of the LLDCs’ transit neighbors are also developing countries with their own economic challenges. According to Fatima, the average cargo travel time for LLDCs was twelve days, compared to seven days for transit countries.
As a result of the slow progress in development, twenty-eight percent of people in LLDCs live in poverty. At least a third of the people are at a high risk of or already live with some form of debt distress, and fifty-eight percent of people deal with moderate to severe food insecurity.
Enkhbold Vorshilov, Permanent Representative of Mongolia to the UN, noted that the conference would be a “critical juncture” for the LLDCs. He also serves as the co-chair of the preparatory committee along with the Permanent Representative of Austria. He added, “Despite our varied cultural and economic structures, we share common challenges that impede our development and economic growth.”
The Preparatory Committee will negotiate the details of the conference’s outcome document, which has been prepared to “encapsulate the challenges and aspirations of the LLDCs,” according to Gladys Mokhawa, Permanent Representative for Botswana and the Chair of the Global Group of Landlocked Developing Countries. Mokhawa expressed that the document has so far received general support from member states and that the final draft would be comprehensive and committed to addressing the challenges that LLDCs face “that align with their specific needs and aspirations.”
“A vision is clear: to transform the geographical challenges and to ensure that our landlocked status is nothing more than a detail of geography,” she said. “We believe that our collective efforts can and will make a difference.”
“Our goal is not merely to draft a document but to build positive, genuine partnerships that will empower landlocked developing countries to overcome their challenges and achieve sustainable prosperity,” said Vorshilov. He added that, along with support from neighboring transit countries, cooperation from development partners and financial institutions would be important to mobilize the resources needed to support the LLDCs.
The document is intended to serve as a guideline for the LLDCs for the next decade and will touch on several areas of interest. In addition to addressing transport and trade, it will focus on emerging issues, such as science, technology, and innovation, and improving capacity and resilience against issues arising from climate change.
Earlier meetings, including the first meeting of the committee, have seen delegations express solidarity with the LLDCs and support for the agenda of the upcoming conference. Ambassador Stavros Lambrinidis, Permanent Representative of the European Union Delegation to the UN, stated that the development challenges call for “more efficient allocation of financial resources on the path toward the SDGs” and that an “essential element” of their partnership would be the development of connections and transport corridors for the benefit of all peoples.
Speaking on behalf of the Africa Group, Ambassador Marc Hermanne Araba of Benin noted that Africa has faced the brunt of the challenges faced by the LLDCs and their neighboring transit countries. He added that the present moment was an opportunity to “chart a transformative agenda for the LLDCs,” and therefore it is important for the global community to reaffirm its’ commitment to address the LLDCs’ challenges together to “ensure that these countries are not left behind.”.
USG Fatima welcomed the media as a “key partner,” through which the voices of LLDCs would have a platform, and to bridge the gap between the conference and those communities who will be most affected by the outcomes by sharing their perspectives.
The US Secretary of State, Antony Blinken, with CAF President, Dr Patrice Motsepe while on tour in Africa. Some commentators have questioned the effectiveness of US foreign policy in Africa. Credit: CAF media
by Promise Eze (abuja)
Inter Press Service
ABUJA, Jan 30 (IPS) – US Secretary of State Antony Blinken’s week-long tour across four African countries was aimed at strengthening the US-Africa relationship—a relationship, according to some commentators, already waning as China and Russia are increasing their influence.
Blinken made his first stop in Cape Verde, a small island in West Africa, where he engaged Prime Minister Ulisses Correia e Silva in discussions and reiterated the US dedication to deepening and expanding its collaborations with Africa. Continuing his diplomatic journey, he then proceeded to Ivory Coast, Nigeria, and concluded his tour in Angola.
While Blicken, on his tour, touted the US as a crucial economic and security ally for Africa, particularly during times of regional and global challenges, analysts say that US foreign policy towards Africa has suggested that the continent may have been “pushed to the back burner.” Their assertions are not baseless.
At the US-Africa Leaders Summit in Washington in November 2022, President Joe Biden made commitments to support democracy in Africa and announced his endorsement for a permanent seat for the African Union at the Group of 20. Biden also promised to visit the continent but that dream never materialised as Washington was preoccupied with a host of global challenges, such as the war in Gaza and the Russia-Ukraine war.
Addressing questions about Biden’s unsuccessful visit during an interview in Nigeria, Blinken defended the president by saying, “It is just the opposite. The President very much wants to come to Africa. We have 17 cabinet-level or department-level officials come since the Africa Leaders Summit.”
US Counterproductive Counter-terrorism Fight
In Abidjan, the capital of Ivory Coast, Secretary of State Antony Blinken pledged USD 45 million to bolster security along the West African coast. This commitment extends the funding for an ongoing program in the region, bringing the total to USD 300 million. Blinken commended the Ivorian military for their counterinsurgency efforts in combating armed groups, acknowledging the difficulty of the region’s location between Mali and Burkina Faso and recognizing hotspots for violence in the Sahel.
For over two decades, the US has made consistent efforts to enhance security and promote democracy, particularly in the Sahel. However, despite these investments, terrorism persists, leading to frequent coups that pose a continuous threat to the stability of the continent.
Last year saw President Mohamed Bazoum of the Niger Republic—a crucial US ally—forcibly ousted from power by disgruntled US–trained military officers. This coup dealt a significant blow to Niger’s sprouting democracy, as President Bazoum had ascended to power through the country’s first democratic elections. Moreover, it marked a setback to the longstanding US endeavours to foster democracy in the Sahel.
Facing international pressure, the coup plotters justified their actions by pointing to President Bazoum’s perceived inability to effectively address the threat of insurgency in the country, despite substantial investments by the US in regional security.
Since 2012, the US has allocated more than USD 500 million in security assistance to Niger, positioning it as the leading recipient of US military aid in West Africa and the second-highest in sub-Saharan Africa.
In addition to having troops on the ground, the US currently operates a drone base in sub-Saharan Africa, a USD 100 million facility based in Agadez. However, despite these advancements, counterinsurgency operations funded by taxpayers have given rise to splinter groups associated with jihadist militancy, causing distress in villages and towns.
Experts attribute the insurgency in Sub-Saharan Africa to the US-led invasion of Libya, which failed to bring stability to the country and resulted in the proliferation of arms and violent groups across the region when foreign fighters, especially the Turareg rebels loyal to Libya’s dictator, Colonel Muammar Gaddafi, fled the country after his death.
A recent report by the Africa Center for Strategic Studies, a US defense department research institution, indicates that the Sahel experienced the largest increase in violent events linked to militant Islamists in the past year compared to any other region in Africa, with 2,737 violent events. The report notes that attacks linked to militant Islamist groups in the Sahel have surged by 3,500% since 2016.
“If the US had not destabilised Libya, there is no way Nigeria, Mali, Niger, Chad, and Burkina Faso would have been in chaos,” argues Zainab Dabo, a Nigerian-based political analyst.
“With military takeovers in , along with a general distrust for the West, Blinken is here to offer an irresistible package of promises in a bid to remain relevant, especially in Sub-Saharan Africa, where Russia is gaining influence,’’ she added.
For the US, Russia’s expanding influence in Africa is a cause for worry. The rivalry between the two nations intensified significantly following Russia’s invasion of Ukraine in 2022. Russia justified its actions by citing the US-led NATO expansion in Ukraine, which it deemed a threat. Although the US has refrained from direct involvement in the conflict, it has provided substantial financial and military assistance to Ukraine.
Meanwhile, tensions between the US and Russia are escalating in Africa. This is evident as coup plotters, many of whom have undergone military training in the US, are now ditching the West to seek military support from the Russian-backed private military Wagner group in their efforts to combat terrorism. Russia is also actively seeking to gain influence in Africa and challenge the dominance of the dollar through the BRICS.
However, while the Biden administration is considering designating the Wagner Group, a Russian group, as a terrorist organisation for its human rights violations, the US has always shied away from its own misdeeds in Africa.
US military partnerships on the continent have been marred by a record of human rights abuses, fostering distrust of Western influence.
In Nigeria, where Blicken promised support for improved security, a US-Nigerian airstrike in 2017 hit a refugee camp in Raan, near the Cameroon border, killing at least 115. Until today, no one has been held accountable for the massacre, and the victims have not gotten justice.
In Somalia, where the US military has conducted numerous airstrikes against the Islamic Jihad group Al-Shabaab for more than a decade, civilian casualties have become inevitable, many leaving family members in agony and with no hope of justice.
In 2020, Amnesty International slammed the US Africa Command (AFRICOM) for killing a woman and a young child in an airstrike in Somalia. Despite the families of the victims of this strike contacting the US Mission to Somalia, Amnesty International reported that neither US diplomatic staff nor AFRICOM had reached out to them to offer reparation.
US, China, Russia and the Scramble for Africa
According to Frank Tietie, a lawyer and human rights activist in Abuja, Nigeria’s capital, Blinken’s visit coincides with a period when America’s influence is perceived to be at a low point in the recent scramble for Africa. Tietie maintains that the US needs to go beyond merely advocating for democracy and should actively match China and Russia’s efforts by deploying both financial and developmental resources.
Since 2003, Chinese foreign direct investment (FDI) in Africa has experienced a substantial increase, rising from a modest USD 74.8 million in 2003 to USD 5.4 billion in 2018. Although it saw a decline to USD 2.7 billion in 2019, the trend reversed, despite the challenges posed by the COVID-19 pandemic, with a resurgence to USD 4.2 billion in 2020. However, concerns arise regarding China’s infrastructural investments and over USD 170 billion worth of loans in Africa, which are perceived as exploitative, given the expectation of natural resources in exchange.
During a meeting with President João Lourenço of Angola, Blinken praised the advancements in one of the US’s most significant investments in Africa: the construction of the Lobito Corridor, a crucial rail link for metals exports from the central African Copper Belt. However, for Tietie, who holds that the US is bent on containing the influence of Russia and China in Africa, such developments are insufficient.
“The gospel of democracy by the Americans has not been able to match the alluring and tantalising presence of the Chinese with their loans and offer to exploit natural resources in exchange for cash. The Americans must do more than ordinary promises, many of which we have had in the past that have not translated to growth and development for African countries,” Tietie told IPS.
For Dabo, Africa, which she described as “the land of opportunities,” will keep being exploited for its natural resources by the US and China if the US does not put its capacities to good use.
Transforming food systems is key to solving food insecurity on the African continent. A powerful and unified effort is needed to ensure food systems are transformed to be robust enough to support the population. Credit: Joyce Chimbi/IPS
by Joyce Chimbi (nairobi)
Inter Press Service
NAIROBI, Jan 16 (IPS) – As hunger and food insecurity deepen, Africa is confronting an unprecedented food crisis. Estimates show that nearly 282 million people on the continent, or 20 percent of the population, are undernourished. Numerous challenges across the African continent threaten the race to achieve food security; research and innovative strategies are urgently needed to transform current systems as they are inadequate to address the food crisis.
Transforming food systems is key. A powerful and unified effort is needed to equip food systems to advance human and planetary health to their full potential. This was the message as CGIAR entered a new era under the leadership of Dr Ismahane Elouafi, the Executive Managing Director. Named one of the most influential Africans of 2023, she continues to stress the need to use science and innovation to unlock Africa’s potential to meet its food needs.
Dr Ismahane Elouafi, the CGIAR’s newly appointed Executive Managing Director. Credit: FAO
During her inaugural field visit to an IITA center in Ibadan, Nigeria, alongside Dr Simeon Ehui, IITA’s Director General and CGIAR Regional Director for Continental Africa, she oversaw extensive discussions on transforming food systems and leveraging science and technology.
“At COP28 in Dubai, UAE, there was high-level recognition and a wonderful spotlight on science and innovation. CGIAR has an opportunity to represent science and innovation at large, representing the whole community at large. We can cut down poverty and stop malnutrition, and we have the tools—we just need to bring them to the farmers,” she said.
CGIAR continues to create linkages between agricultural and tech stakeholders, emphasizing digital innovation for agricultural development. CGIAR-IITA explores leveraging ICTs to tackle agricultural challenges, boost productivity, ensure sustainability, and enhance food security, featuring presentations, discussions, workshops, and networking across sectors.
There was a significant focus on the CGIAR TAAT model as a tool to use technology to address Africa’s worsening food crisis. TAAT Technologies for African Agricultural Transformation (TAAT) is a key flagship programme of the African Development Bank’s Feed Africa strategy for 2016 to 2025.
“We have the technology, and all hands are on deck to ensure that no one sleeps hungry. There are severe food insecurities on the continent today, deepening rural poverty and malnutrition. We have the capacity to achieve food security,” Ehui emphasized.
IITA’s Dr Kenton Dashiell spoke about TAAT in the context of strategic discussions around policy and government engagement. Emphasizing the need for the government, private sector, and other key stakeholders to create effective and efficient food systems transformation paths. As a major continent-wide initiative designed to boost agricultural productivity across the continent by rapidly delivering proven technologies to millions of farmers, TAAT can deliver a food-secure continent.
Elouafi stressed the need to ensure that technology is in the hands of farmers. in line with TAAT, which aims to double crop, livestock, and fish productivity by expanding access to productivity-increasing technologies to more than 40 million smallholder farmers across Africa by 2025. In addition, TAAT seeks to generate an additional 120 million metric tons.
IITA’s Bernard Vanlauwe spoke about sustainable intensification with the aim of increasing production and improving the livelihoods of smallholder farmers in sub-Saharan Africa. Farmers are increasingly dealing with higher temperatures and shorter rainy seasons, affecting the production of staple foods such as maize. Further stressing the need for improved crop varieties to meet Africa’s pressing food insecurities.
Elouafi stressed that the needs are great, in particular, eliminating extreme poverty, ending hunger and malnutrition, turning Africa into a net food exporter, and positioning Africa at the top of the agricultural value chains. She emphasized the need to leverage progress made thus far, building on the commitments of Dakar 1, the 1st Summit of the World’s Regions on Food Security held in Dakar in January 2010, where representatives and associations of regional governments from the five continents noted that the commitments made at the World Food Summit in 2002 had had little effect and that the food crisis had only worsened.
Elouafi said the UN Food System Summit in 2021 and the 2023 Dakar 2 Summit, with an emphasis on building sustainable food systems and aligning government resources, development partners, and private sector financing to unleash Africa’s food production potential, were important meetings to build on. The commitments made at these high-level meetings had already created a pathway towards ending hunger, food insecurity, and malnutrition and transforming food systems to meet the most pressing food needs today.
It is estimated that Africa’s agricultural output could increase from USD 280 billion per year to USD 1 trillion by 2030. The visit and ensuing discussions highlighted how investing in raising agricultural productivity, supporting infrastructure, and climate-smart agricultural systems, with private sector investments, government support, and resources from multinational financial institutions, all along the food value chain, can help turn Africa into a breadbasket for the world. Private sector actors will be particularly urged to commit to the development of critical value chains.
Opinion by Jomo Kwame Sundaram (kuala lumpur, malaysia)
Inter Press Service
KUALA LUMPUR, Malaysia, Dec 20 (IPS) – The World Bank insists commercial finance is necessary for achieving economic recovery and the Sustainable Development Goals (SDGs), but does little to ensure profit-hungry commercial finance serves the public interest.
By failing to address pressing challenges within their purview, the second-ever Bretton Woods institutions’ (BWIs) annual meetings on the African continent, in Marrakech in October 2023, set the developing world even further back.
Jomo Kwame SundaramThe International Monetary and Financial Committee, which oversees the International Monetary Fund (IMF), could not agree, by consensus, on the usual end-of-meeting ministerial communique for ‘geopolitical’ reasons. The Development Committee, which governs the World Bank Group, fared little better.
New World Bank playbook
Little was achieved on crucial outstanding issues of governance reform and sovereign debt. Implicitly acknowledging past failure, World Bank Governors endorsed a “new vision to create a world free of poverty on a livable planet”.
After all, even the World Bank now acknowledges recent increases in global poverty have been the worst since the Second World War as economic stagnation, debt distress and inflation spread across the developing world.
The Bank’s new Evolution Roadmap proposes a just energy transition plan to mobilise private capital to scale up, secure and deploy climate finance. This is mainly for mitigation, rather than adaptation, let alone losses and damages.
The blueprint wants international financial institutions to help developing country governments de-risk private investments. For Muchhala, this reflects “the failure of the Bank’s wealthy shareholders to help ensure a more equitable multilateral system that is truly fit for purpose to meet the challenges of the 21st century”.
Blending finance for private profits
The strategy proposes ‘de-risking’ foreign investment with various types of ‘blended finance’ – such as co-financing, loan guarantees, political risk insurance or public equity co-investments – as well as complementary legal and other reforms.
The Bank and its allies have been promoting ‘blended finance’ for development, the environment and global warming since before the 2008 global financial crisis. Their main recommendation has been to induce profit-seeking private capital to fill growing financing gaps.
Undoubtedly, most poor developing countries have limited public resources to make needed social and environmental, including climate investments. In such arrangements, public funds are used to ‘de-risk’ or otherwise subsidise commercial finance, ostensibly to serve public policy priorities.
However, private commercial involvement in public services and infrastructure is costly and risky for the public sector and citizens, by deploying limited public resources for private gain. Civil society and other critics have already expressed grave concerns about the new Roadmap.
The World Bank Group also set up a Private Sector Investment Lab to scale up private finance in developing economies. It claims to be creating a “business enabling environment that unleashes private financing”.
Billions to trillions
The World Bank’s ‘billions to trillions’ slogan has been the pretext for privileging commercial finance as supposedly necessary to achieve the SDGs. But it has done little to ensure that such profit-seeking private investments will help achieve the SDGs or otherwise serve the public purpose.
The Bank does not consider that profit-seeking private investments expecting attractive returns may not serve the public interest and priorities. Nor do they necessarily support desirable transformations. Worse, their economic, social and environmental consequences may be for the worse.
The privatisation of previously public social services and infrastructure has worsened development and distribution. Unequal access to public services – increasingly linked to affordability and ability to pay – threatens hundreds of millions.
Such blended finance arrangements have also contributed to the debt explosion in the Global South – exacerbating, rather than alleviating developmental, environmental and humanitarian crises.
Debt distress spreading
Developing countries are in their worst-ever debt crises, with debt service obligations higher than ever before. Current debt-to-GDP ratios are more than twice those of LICs before the 1996 HIPCs’ debt relief came into effect, and even higher than for Latin American nations before the 1989 Brady plan.
Unlike the 1980s’ sovereign debt crises, market finance is now more important. Much more government debt from commercial sources involves relying on bond markets, rather than commercial bank borrowings.
With official credit much less important, commercial finance has become much more important compared to the 1980s. Unlike official creditors, most private creditors typically refuse to participate in debt restructuring negotiations, making resolution impossible.
Debt servicing costs equal the combined expenditure for education, health, social protection and climate. In Africa, debt servicing has risen by half. Debt service levels of the 139 World Bank borrowers are higher than during the heavily indebted poor countries’ (HIPCs) and Latin American debt crises peaks.
Debt service is absorbing 38% of budget revenue and 30% of spending on average by developing country governments. In Africa, the levels are much higher, at 54% of revenue and 40% of spending!
The BWIs’ joint debt sustainability framework insists debt-distressed economies must have lower debt-to-GDP ratios than other countries, limiting this LICs’ external ratio to 30% or 40%. This BWI policy effectively penalises the poorer and more vulnerable nations.
In 38 countries with over a billion people, loan conditionalities during 2020-22 resulted in regressive tax reforms and public spending cuts. Less expenditure has hit fuel or electricity subsidies and public wage bills, deepening economic stagnation.
Despite severe debt distress in many developing countries, no meaningful debt relief has been available for most. The most recent debt restructuring deals have left debt service levels averaging at least 48% of revenue over the next three to five years.
Debt distress limits government spending capacity, desperately needed to address social and environmental crises. Hence, overcoming stagnation and achieving the SDGs will require much more debt cancellation, relief and borrowing cost cuts.
A farmer tends to his tomatoes. Because of the risks in the agricultural sector, including climate change, many farmers were not able to get finance. Now several non-profits have come into the market to assist. Credit: Geoffrey Kamadi/IPS
by Geoffrey Kamadi (nairobi)
Inter Press Service
NAIROBI, Oct 30 (IPS) – Smallholder agricultural enterprises in Africa face a lot of challenges getting loans from financial institutions like banks due to the stringent requirements they can hardly fulfil. Investor confidence is usually lacking, given the risks involved in this sector of the economy.
Climate change has not helped matters either. Prolonged droughts and unreliable rainfall patterns have made them less resilient. And since a paltry 1.7 percent of climate finance goes to small-scale agriculture (according to the Climate Policy Initiative), small-scale farmers are left particularly vulnerable.
However, innovative financial solutions targeted at these farmers are transforming the sector in tangible ways in Africa. Organisations like Root Capital are working with small-scale agricultural enterprises using a financial model that is accommodative to their unique needs while addressing the climate change component on the ground.
Root Capital is a nonprofit that supports agricultural enterprises working directly with small-scale farmers. On the other hand, Mercy Corp – an international NGO – through its venture capital arm, supports entrepreneurs who are developing transformative technologies, innovative business models and effective climate adaptation resilience solutions which are usually tech-enabled.
Users of these technologies are in 35 most climate vulnerable countries, according to Scott Onder, the chief investment officer at Mercy Corp. In Kenya, for example, the NGO has partnered with Safaricom, the largest mobile network operator in the country through its DigiFarm product.
The product bundles together a range of solutions for smallholder farmers, helping them become more productive, increase their yields and grow their income.
Batian Nuts Ltd, an edible nuts processing enterprise based in Meru County in central Kenya has seen its operations expand, ever since it started working with Root Capital. This enterprise exports macadamia nuts internationally but also deals in peanuts processing for the local market. It has a base of 8,000 small-scale farmers.
“We chose to work with Root Capital because their interest rates are below what you would normally get from the financial market, plus their terms are very accommodative to a start-up like ours,” says James Gichanga the co-founder of Batian Nuts Ltd.
He explains that commercial banks require considerable collateral, such as parcels of land or other assets, which they do not have.
On the other hand, Root Capital will provide the finances they need, based on the commitment made by the overseas buyer of their produce. The buyer need only provide a letter of intent, committing to purchase macadamia nuts from Batian Nuts Ltd, and “Root Capital will give us money based on that alone,” says Gichanga.
In other words, the buyer of farm produce based in the US, Europe or Asia and the borrower (it could be a coffee cooperative in, say, Rwanda) – or Batian Nuts Ltd in this case – signs an agreement with Root Capital. And when the time comes for payment, the buyer pays Root Capital directly.
“We take our principal interest and then pass the rest of the payment to the coffee cooperative,” explains Elizabeth Teague, the senior director of Climate Resilience at Root Capital.
Even though this type of financing has existed before, their innovation involves applying it to the smallholder agricultural context. This, explains Teague, is a way of mitigating risk without requiring collateral from smallholder farmers.
In addition, they provide small and medium sized agricultural enterprises with technical assistance through a programme known as “agronomic and climate reliance advisory.”
Prior to its partnership with Root Capital, Batian Nuts Ltd used to handle between 300-400 tonnes of produce per year. However, since 2017 when the collaboration begun, the business has more than doubled this capacity to 1,000 tonnes, and its workforce has grown from 26 permanent employees to 55 currently. Its seasonal workforce has increased as well from a couple dozen to 160, who are engaged seven months in a year.
Investors have traditionally shied away from putting their monies in small-scale farmers in sub-Saharan Africa, due in large part to higher cost and risk involved, thus creating an estimated USD 65 billion financing gap for small businesses in the region, according to Teague.
“And then climate change exacerbates that and makes it even riskier for investors,” she adds.
Root Capital works with a network of 200 businesses and 500,000 farmers in Africa, Latin America, and Indonesia.
On residential streets of Caracas with little traffic it is possible to see cars that have been abandoned by their owners for years. They probably migrated from Venezuela or cannot afford to repair and sell their vehicles. CREDIT: Humberto Márquez / IPS
by Humberto Marquez (caracas)
Inter Press Service
CARACAS, Oct 23 (IPS) – Diego has just enrolled to study journalism at a university in the Venezuelan capital and, with 2,000 dollars that his family members managed to gather, has bought his first car, a small 2007 Ford that can take him to class from his home in the neighboring Caribbean port city of La Guaira.
Tomás, an experienced physiotherapist who sold Diego the car, is leaving for Spain where a job awaits him without delay, “so I’m quickly selling off things that will give me money to settle there, such as furniture, household goods and appliances, but for now I sold only one of my two cars,” he told IPS.
“This Ford Fiesta was my first car, I loved it very much, but it doesn’t make sense for me to hold on to two vehicles. I’m keeping a 2011 pickup truck that is in good condition, just in case I don’t do well and I have to return,” added the professional who, like other sources who spoke to IPS, asked not to disclose his last name “for safety reasons.”
The migration of almost eight million Venezuelans in the last 10 years, and the general impoverishment of the population, have led to the deterioration of what was once a shiny fleet of vehicles, with one out of every four vehicles left standing now due to lack of maintenance and leaving much of the rest aging and on the way to the junkyards.
In the basements of parking lots, and in the streets of towns and cities, thousands and thousands of vehicles are permanently parked under layers of dust and oblivion, because their owners have left or because they do not have the money to buy spare parts and pay the costs of repairs.
Along the streets of any Venezuelan city can be seen old rundown vehicles with no sign that the necessary repairs will be made. The impoverishment of the population is at the root of this decline. CREDIT: RrSs
Aging vehicle fleet
Omar Bautista, president of the Chamber of Venezuelan Automotive Manufacturers, told IPS that “the vehicle fleet in Venezuela – a country that now has 28 million inhabitants – is about 4.1 million vehicles, with an average age of 22 years, and 25 percent of them are out of service.”
“The loss of purchasing power of the owners has caused most of them to delay the maintenance of their vehicles and the replacement of the spare parts that suffer wear and tear, such as tires, brakes, shock absorbers and oil,” Bautista said.
Moreover, in contrast to the immense oil wealth in its subsoil, gasoline in Venezuela is scarce and, after more than half a century being the cheapest in the world, it is now sold at half a dollar per liter, a cost difficult to afford for most owners of private vehicles or public transportation.
The country needs some 300,000 barrels of fuel per day and for several years it has had less than 160,000 barrels, according to oil economist Rafael Quiroz, who added that interruptions in the work of Venezuela’s refineries are frequent.
There is almost no residential building that does not have at least one vehicle in storage waiting for its owners to return from abroad. They are part of the 1.5 million vehicles that are permanently parked in the country. CREDIT: Humberto Márquez / IPS
Not enough money
The minimum wage in Venezuela is four dollars a month. Most workers receive up to 50 dollars in non-wage compensation for food, and the average income according to consulting firms is around 130 dollars a month.
Luisa Hernández, a retired teacher, earns a little more giving private English classes, but “the situation at home is very difficult. I can’t afford to pay for the repair of my Toyota Corolla, but a mechanic friend agreed to do the work, and I can pay him in installments,” she told IPS.
Mechanics have their finger on the pulse of the situation. “People leave and the cars often sit idle for years, and then the owners end up selling them, from abroad. Quite a few of those I have gone to pick up and have fixed them, to sell them,” Daniel, who runs a garage in the capital’s middle-class east side, told IPS.
He said that “many people do not sell their cars before leaving the country, thinking that they’re just going abroad to ‘see how it goes’. But they stay there and then decide to sell their vehicle before it further deteriorates and depreciates.”
Another mechanic, Eduardo González, told IPS that “There are people who go away and leave their cars in storage and from abroad they contact us so that from time to time we can check them and do some maintenance. Or they entrust their vehicle to a relative. There are people who travel and come back, but most of them end up selling.”
This situation “has favored buyers, who can get cars at a low price. But the problems come later, because that very used car will require spare parts and maintenance, and that is expensive and often the parts are difficult to get,” added González.
The same difficulty is also a concern for owners of cabs, buses and private vans that transport passengers, as well as cargo trucks.
“At least half of the truck fleet in the region is affected by the shortage and scarcity of spare parts,” said Jonathan Durrelle, president of the Chamber of Cargo Transportation of Carabobo, an industrial state in the center of the country.
Large and small buses for passenger transport in Venezuelan cities, including Caracas, as well as cargo vehicles, also suffer from the lack of sufficient revenue, as well as spare parts, to keep them in proper working condition. CREDIT: Humberto Márquez / IPS
Industries have closed down
Elías Besis, from the Chamber of Spare Parts Importers, attributed this to the closure of companies that “years ago manufactured 62 percent of the spare parts needed in the country, and now that production has plunged to two percent.”
Thousands of manufacturing companies closed down in Venezuela during the eight years (2013-2020) in which the country was in deep recession, suffering a loss of four-fifths of its GDP according to economic consulting firms.
Financial and banking activity has also declined, as has the vehicle loan portfolio, which peaked at 2.3 billion dollars in 2008 and plummeted to just 227,000 dollars by late 2022, according to economist Manuel Sutherland.
Vehicle assembly plants, of which there were a dozen until recently, also closed their doors. In addition to selling to hundreds of dealerships, they used to export vehicles to the Andean and Caribbean markets.
Their production peaks were recorded in 1978, with 182,000 new vehicles – Venezuela then had 14 million inhabitants and 2.5 million vehicles – and in 2007, when 172,000 cars were assembled.
In 2022 only 75 vehicles – trucks and buses – were assembled, and in the first six months of this year just 22.
Newer vans and cars drive through middle and upper class neighborhoods, but are part of the “bubble,” the small segment of the population less impacted by the deep economic crisis that Venezuela has suffered over the last decade. CREDIT: Motorpasión
Farewell to the bonanza
The result of this scenario is the aging and non-renewal of the vehicles circulating on Venezuela’s roads.
The new ones, Daniel pointed out, “are SUVs, crossovers and off-road vehicles that cost a lot of money and can only be bought by those who live in the bubble,” the term popularly used to refer to the segment of high-level officials and businesspersons whose finances are still booming in the midst of the crisis.
In addition, in view of the almost total closure of automotive plants, individuals are opting to import new vehicles directly from the United States, favored by the elimination of tariffs for the importation of most models.
For that reason, said Bautista, “there is no shortage of new vehicles, what there is is a shortage of consumers with the necessary purchasing power and conditions to buy new vehicles.”
These consumers were part of the hard-hit middle class – nine out of 10 families in that socioeconomic category had fallen below the middle class by 2020 according to the consulting firm Anova – and they no longer buy new or newer cars because they have swelled the legion of migrants, selling or leaving behind their main assets.
Since the days of the oil boom (1950-1980), Venezuelans developed a sort of sentimental relationship with their vehicles, associating them with comfort and enjoyment that favored cheap gasoline and a network of paved roads that made it easier to travel to places of recreation.
In middle class and even lower middle class families, it was quite common to change cars every two years and to give one to their children when they turned 18. They were helped by credit facilities, and were encouraged to buy cars in cities where public transportation has always fallen short.
They have had to say goodbye to their easy past on wheels, like migrants have said farewell to their country and homeland. Or at least “see you later”.
Tabeth Gowere (76) makes extra cash from weaving plastic waste. A group of seniors started weaving plastic out of a need to improve the environment and make some extra cash. Credit: Jeffrey Moyo/IPS
by Jeffrey Moyo (harare)
Inter Press Service
HARARE, Oct 20 (IPS) – They do not have a pension nor financial support from families or relatives, but they have themselves. Now they have become collectors of plastic waste, which they turn into products as they battle for survival – earning money from the growing plastic pollution in Zimbabwe.
Such are the lives of the country’s senior citizens, like 76-year-old Tabeth Gowere and 81-year-old Elizabeth Makufa, both hailing from Harare’s Glenora high-density suburb, where they become famous as plastic waste collectors.
Gowere and Makufa, thanks to plastic waste, now care for themselves financially despite their old age, so they said.
“At first, we saw plastic waste just being flown around by the wind, and we started to pick these, cleaning the environment, burning it, but later realized we could make something out of these plastics and earn money. So, using plastic waste, we started weaving different things, including mats to decorate sofas. Many people were impressed by our work, and they started placing orders for the plastic products we were making,” Gowere told IPS.
Makufa, like Gowere, has also seen gold in the dumped plastic waste.
“We say this is waste, but from it, we find something that is helping us to sustain us in life. I make 30 US dollars daily at times from selling the products I make from plastic waste, which means at least I get something to survive,” Makufa told IPS.
The young are learning from the lessons from the senior plastic waste entrepreneurs – like 40-year-old Michelle Gowere.
“Weaving things using plastics is a skill I learned from my mother-in-law, Mrs Gowere. We spend time together daily, and because of this, I ended up learning the skill from her; this is helping me to, at least, help my children with food to carry in their lunch boxes when they go to school,” Michelle told IPS.
To Michelle’s mother-in-law and many others, the environment has been the secondary beneficiary of the geriatrics’ initiative collecting plastic waste.
“You would see that in our area, waste collectors from the council rarely come to empty the refuse bins. So, as we use plastic waste to make our products, we are making our environment clean,” Michelle told IPS.
Zimbabwe Environmental Management Agency (EMA) about 1.65 million tonnes of waste are produced annually in Zimbabwe, with plastic making up 18 percent of that.
However, Makufa says it was not the love of money that swayed them into getting into plastic waste but improving the environment.
“It was not because we lacked money that we turned to collecting plastic waste, but we copied some people who were doing it, and we started doing the same. We thought of removing plastic waste from our environment, and we told ourselves if we could take those plastics and weave them together, we could have impressive products that we could sell and earn some money,” Makufa told IPS.
As the group of elderly people are making a difference in collectively fighting plastic waste, the local authorities welcome their contribution but add that it is everybody’s responsibility to care for the environment.
“The job of caring for the environment is not a responsibility of the council alone. In fact, it is the duty of everyone to make sure where they live there is cleanliness. As a council, we thank people who are beginning to realize that there is money in plastic waste. It’s not every waste that should be dumped; there is what we call recycling, and some people make money from it, but the duty to take care of our surroundings is not a prerogative of the council, but ordinary people as well,” Innocent Ruwende, Harare City Council spokesperson, told IPS.
Priscilla Gavi, director of Help Age Zimbabwe, a non-governmental organization mandated to take care of the elderly’s needs, says the elderly, too, are critical in the fight against plastic waste.
“Old age does not make someone incapable of supporting their families and taking care of themselves. It doesn’t stop the aged from working for their country. In fact, old age gives people opportunities to use skills gained during their prime ages, and they, for instance, make use of plastics, producing different things for sale from plastic waste as they also rid the environment of the plastic waste,” Gavi told IPS.
Yet for many like Makufa, collecting plastic waste has also turned out to be therapeutic in addition to being an economic venture.
“These things that we make with our own hands using plastic waste help us to rest from mental stress owing to problems we have these days that strain us psychologically. So, this helps us to be always occupied and refrain from overthinking about things we don’t have control over,” said Makufa.
According to the Environmental Management Agency (EMA), an estimated 1.65 million tonnes of waste are produced annually in Zimbabwe, with plastic making up to 18 percent of that.
Gowere and Makufa and other elderly recyclers and plastic entrepreneurs have drawn the admiration of organizations like EMA.
“This is a commendable initiative that is promoting upcycling of waste and upscaling recycling as a business. This reduces the amount of waste that ends up in landfills and the environment. Plastic waste takes hundreds of years to decompose, and it releases harmful toxins into the environment when burned,” Amkela Sidange, spokesperson for EMA, told IPS.
The state-owned Petróleos Mexicanos (Pemex) oil company is completing its seventh refinery on a 600-hectare site at Dos Bocas in the municipality of Paraíso, in the southeastern state of Tabasco. The plant will process some 290,000 barrels of fuels per day when it reaches full capacity. CREDIT: Erik Contreras-Gerardo Morales / IPS
But the monument lacks another element that has been vital to the region: oil, which has damaged the other three symbols through pollution. Marine animals have been affected by the oil and the mangroves have almost been cut down in a territory that had ample reserves of crude oil.
Despite the fading bonanza, the Mexican government decided to build the Olmeca refinery in the industrial port of Dos Bocas, in Paraíso, to refine some 290,000 barrels per day of oil from the Gulf of Mexico and thus reduce gasoline imports.
It will be the seventh installation of the National Refining System in the country, in a port area that already has a crude oil shipping and export center of the state-owned oil giant Petróleos Mexicanos (Pemex), which controls the exploitation, refining, distribution and commercialization of hydrocarbons in the country.
Construction of the new infrastructure on an area of 600 hectares began in 2019, and although it was officially opened in 2022, the work has not been completed and it is expected to be fully operational in 2024.
But the plant has already provided revenue for the local economy, in the form of rents, transportation and food. However, there are also fears about its impact on a city of more than 96,000 inhabitants.
Genaro, a cab driver who preferred not to give his last name and is married with three children, said there is a sensation of risk. “We know what has happened in other places where there are refineries, with all the pollution. Besides, accidents occur,” he told IPS.
Near the plant is the Lázaro Cárdenas neighborhood, home to hundreds of people and named after the president who nationalized the oil and electric industry in 1936.
There is an uneasy feeling among the local population. Irasema Lozano, a 36-year-old teacher who is a married mother of two, is one of the residents who is apprehensive about “the newcomer” to the city.
“Look around, there are houses, schools, stores. The government says it is a modern plant and that there is no danger, but we don’t feel safe with this huge plant,” she said.
Cab driver Genaro owns a house in the area, which he rents out. But he is now seriously thinking of selling it.
Construction of the plant has altered the life of the sprawling city around Dos Bocas. The “orange people”, referring to the color of the uniforms worn by everyone who works at the facility, are a permanent reminder of the changes as they move around town.
Talking about oil in Tabasco is a delicate matter, since the state is used to living with the exploitation of a light, low-sulfur, cheap and easy-to-extract hydrocarbon. It is also the home state of President Andrés Manuel López Obrador, a staunch defender of fossil fuels.
Pemex has financed the Olmeca megaproject with public funds, through its subsidiary Pemex Transformación Industrial. Its subsidiary PTI Infraestructura y Desarrollo has overseen construction.
The project has already had a high cost overrun, as the initial investment was estimated at seven billion dollars, a figure that has climbed to 18 billion dollars, according to the latest available data.
On this occasion, PTI ID has not turned to the international market to finance the work, according to the response to a public information access request from IPS.
The Olmeca refinery has a cost overrun, escalating from a planned initial investment of seven billion dollars to 18 billion dollars. The Mexican government expects the plant, located in Dos Bocas, in the southeastern municipality of Paraíso, to be fully operational by 2024. CREDIT: Erik Contreras-Gerardo Morales / IPS
The support of international banks
Traditionally, Pemex has depended on financial flows from international private banks. Between 2016 and 2022, 17 institutions gave nearly 61.5 billion dollars to the state-owned oil company, according to annual reports under the heading of “Banking on Climate Chaos” produced by a group of NGOs.
The British bank HSBC was the main financial backer of Pemex during this period, contributing 7.6 billion dollars, followed by the U.S.-based Citi (6.9 billion) and JP Morgan Chase (6.0 billion).
Pemex’s data gives a broader picture, as it shows more players in its lending field. Through direct loans, bond issuance, revolving credits (with automatic renewals) and project financing, 16 financial institutions have granted it 78.9 billion dollars since 2015.
In doing so, the international markets allow Pemex to obtain money for its operations and development, but in exchange they have turned it into the oil company with the highest debt in the world, some 100 billion dollars, which poses a great threat to Pemex and, by extension, to the country.
The main mechanism used is the insurance coverage or underwriting of Pemex’s financial operations by charging a commission.
Maaike Beenes, leader of banking and climate campaigns at the non-governmental BankTrack, told IPS that the large flow of financing means that banks feel confident that Pemex can repay the debt.
“Apparently it is because they think there are guarantees because it is a state-owned company. There is a lot of financing for the expansion of fossil fuel activities,” she said from the Dutch city of Amsterdam.
In 2020, Mexico was the 13th largest oil producer in the world and 19th largest gas producer. In terms of proven crude oil reserves, it ranked 20th and 41st respectively, according to Pemex data.
Two flares burn gas in the Nuevo Torno Largo neighborhood, in the municipality of Paraíso, in the vicinity of the Olmeca refinery. The southeastern state of Tabasco, on the coast of the Gulf of Mexico, has suffered the effects of pollution generated by oil production for more than 50 years through spills, contaminating gases, and water, air and soil pollution. CREDIT: Erik Contreras-Gerardo Morales / IPS
Fueling the crisis
By raising Pemex’s debt rating, the international banks risk their own voluntary climate targets for greenhouse gas (GHG) emission reductions, since the Mexican company’s GHG emission reduction targets are low.
For example, HSBC aims to achieve zero net emissions – where neutralized emissions equal those released into the atmosphere – in its operations and supply chain by 2030 and in its financing portfolio by 2050.
The bank says it is working with its clients to help them reduce their emissions. Its energy policy states that it will not finance new oil and gas fields.
But HSBC’s net zero goal has some gaps. According to the international Net Zero Tracker platform, its strategy lacks a detailed plan to achieve it, and has no reference on equity investment and no specification on formal accountability for monitoring progress, even though it covers Scope 1 (A1), 2 and 3 emissions.
A1 emissions come directly from sources under the polluter’s control, A2 emissions are indirect emissions from purchased energy, and A3 emissions are those originating in the final use of energy, not covered in A1 and A2, according to the Greenhouse Gas Protocol standard, the most widely used in the world.
By 2022, Citi committed to achieving a 29 percent absolute reduction in emissions for the power sector and a 63 percent reduction in the intensity of its portfolio pollution for the electricity sector by 2030, addressing A1, A2 and A3 levels.
In this regard, Net Zero Tracker says the bank does not have a complete detailed plan for these decreases and makes no reference to investment in fossil fuel companies.
Another major player, JP Morgan Chase, has a target of a 69 percent reduction in the carbon intensity of power generation, which accounts for most of the sector’s climate impact, by 2030.
In the oil and gas segment, the company aims for a 35 percent decrease in operational carbon intensity, as well as a 15 percent drop in end-use energy carbon intensity for the same year.
But its net zero targets are in doubt, as Net Zero Tracker points out that they have shortcomings, such as a complete detailed plan, and no reference to equity investment and only partial coverage of A3.
Louis-Maxence Delaporte, fossil-free finance campaigner at the non-governmental Reclaim Finance, said that international financing for companies like Pemex is problematic as it is not aligned with the 2015 Paris climate change agreement, which sets out to keep global warming below 1.5°C.
“By not meeting these targets there is only greenwashing, like net zero. Their commitments are not credible. It is said there is no room for new fossil fuel projects, but the banks continue to support oil companies, like Pemex,” she told IPS from Paris.
“In Mexico there are perverse incentives because the country depends on extractive activities. There is a vicious circle, as these activities demand a greater share of the public budget and the banks channel money into them,” she told IPS from London.
A photo taken at the entrance to the Olmeca refinery, which the Mexican government expects to start up by the end of the year and to be fully operational in 2024. The plant is located next to the Lázaro Cárdenas neighborhood which is home to hundreds of people, in the Paraíso municipality of the southeastern state of Tabasco. CREDIT: Emilio Godoy / IPS
Dirty money
Pollution from Pemex’s activities has grown since 2018, a reality to which its financiers turn a blind eye.
In 2019, the Mexican oil company released 48 million tons of carbon dioxide (CO2) equivalent into the atmosphere, an increase of 3.3 percent, compared to 2018 levels, according to the report that Pemex sent to the Securities and Exchange Commission, a requirement for the company to sell bonds in the U.S. market.
In 2020, that pollution increased to 54 million tons, a rise of 12.5 percent, and the following year, to 70.5 million, an increase of 7.1 percent.
The main drivers of these increases have been the expansion of exploration, production and refining activities, plus drilling and flaring.
As of October 2022, Pemex was not in compliance with the 10-point framework of Climate Action + 100, a platform dedicated to measuring companies’ approach to the Paris Agreement goals. These aspects are related to short- and long-term reduction targets (2025 and 2050), decarbonization strategy and climate policies.
Therefore, the oil company, the eighth-largest global polluter as of 2017, according to the ranking of the non-governmental U.S. Climate Accountability Institute, is in breach of the Paris Agreement, adopted in 2015 and in force since 2021.
This also makes Mexico a country in non-compliance, as Pemex accounts for 10 percent of its GHG emissions.
Pemex has projected the reduction of pollution from its oil and gas production and extraction from 22.9 tons per 1000 barrels of crude oil equivalent in 2021 to 21.5 in 2025. For oil refining, the target is 39.6 tons per 1000 barrels in 2035, compared to just under 45.2 tons in 2021.
Delaporte criticized these targets as weak and insufficient, as they address only exploration and production (A1) emissions and leave out A2 and A3, the latter being the most polluting.
The Olmeca refinery is located in a coastal area of southeastern Mexico prone to flooding and exposed to rising sea levels due to increasing temperatures, one of the consequences of burning fossil fuels. CREDIT: Erik Contreras-Gerardo Morales / IPS
The national buttress
Another facet of the financial movement is related to national development banks, which have been pushing fossil fuel expansion without respecting their own social and environmental safeguards.
Since 2019, Bancomext has delivered 895 million dollars to the oil and gas industry, including Pemex, although the specific amount that went to the company itself is not public knowledge.
Banobras has been a great support for the oil company. In 2021, it provided over 1.1 billion dollars for the total acquisition of the Deer Park refinery in the U.S. state of Texas, of which Pemex already owned half and Shell the other 50 percent.
In addition, the bank shelled out 299 million dollars for the renovation of the Miguel Hidalgo refinery in the central state of Hidalgo.
Nafin lent Pemex 200 million dollars to upgrade the plant in 2021.
One phenomenon is the participation of the National Infrastructure Fund (Fonadin), which until now had never financed the fossil fuel sector. Last year, the fund contributed 346 million dollars for the renovation of diesel and gasoline processing technology at the Hidalgo refinery and at the Antonio M. Amor refinery, located in the central state of Guanajuato.
The latest operation involves 2.5 billion dollars in financing for the acquisition of the 13 production plants owned in the country by the Spanish company Iberdrola, 12 gas plants and one wind farm, in what has been described as part of “a new nationalization process.”
This maneuver also shows that international banks are still interested in financing fossil fuels, as the Spanish banks BBVA and Santander, as well as the U.S. Bank of America, have expressed a willingness to provide financing for the already agreed acquisition.
Climate activists stress that Mexican development banks have had social and environmental standards in place since 2017, but argue that they have been reluctant to apply them when it comes to Pemex.
Banobras has no safeguards assessments with respect to oil and gas projects, according to responses to information requests submitted by IPS. The same applied to Nafin, which did not carry them out in 2022 and 2023. The bank conducted one in 2021, classified as a bank secret. Bancomext also keeps information on this matter classified.
In the municipality of Paraíso, when the refinery begins to fully operate sometime in 2024, the pace will slow down, contrary to what the government wants. “We hope it will be profitable because it has cost a lot. And we hope nothing serious happens,” said Lozano, the teacher.
Beenes said Mexican and foreign banks should respect the Paris Agreement and abandon fossil fuels.
“State-owned banks can offer guarantees or insurance for credits. That is worrying, it is a problem for the transition. We are asking them to support the transition with specific investment conditions. It is in their best interest to stay away from fossil fuels, because they run the risk of having stranded assets in their portfolios,” she said.
The expert believes that banks are aware of the need for change, but the question is how fast they can do it.
Delaporte said development banks should finance green and non-oil companies.
“The change must be global, including commercial banks, development banks and hedge funds. Shareholders should ask Pemex not to build more facilities. If it refuses, they should divest and put the money into renewable companies,” she said.
Guzman, for her part, warned that if the current trend continues, it will be difficult for Mexico not only to meet its own climate targets, but also its contribution to the overall goal of keeping the global climate increase down to 1.5 degrees Celsius.
“There is talk of the need to continue mobilizing financing through national development banks for climate change. They should take advantage of this to allow the channeling and mobilization of funds” for the energy transition, she said.
Experts are calling on countries to change their policies to protect locally produced products. For example, Nigeria is an exporter of rubber but imports tyres; Ghana exports cocoa, but Switzerland is known for chocolate. Here a worker in a factory in Abidjan holds a block of rubber meant for export for processing into finished products abroad.
by Isaiah Esipisu (dar es salaam)
Inter Press Service
DAR ES SALAAM, Sep 15 (IPS) – Experts at the Africa Food Systems Forum (AGRF) in Dar es Salaam, Tanzania, have called on African governments to make and review existing policies to protect the processing and agro-industrialisation of locally produced agricultural products.
During the launch of the Deal Room, Mohammed Dewji, President of MeTL Group of Companies in Tanzania, observed that agriculture will remain meaningless without agri-processing. https://www.ipsnews.net/2021/05/kenyas-dryland-farmers-embrace-regenerative-farming-to-brave-tough-climate/
“Tanzania produces cotton, and it is perhaps the third largest producer. How come it has only three textile firms? We are farming the cotton, ginning it, and exporting the same to China, where the final product is produced, died, and printed, and then it is sent back to us. Because of taxes involved at the local manufacturing level, we cannot compete,” he said.
“Unless we put in place correct policies that will favour local manufacturing, we will continue talking about cocoa from Ghana and chocolate from Switzerland,” he told delegates at the Deal Room.
The Deal Room is a matchmaking platform hosted at the AGRF, aiming to drive new business deals and commitments, where companies in the agriculture and agribusiness sectors can access finance, mentorship, and market entry solutions to support their growth objectives.
According to Wanjohi Ndagu, the Partner and Investment Director at Pearl Capital Partners Ltd based in Uganda, many African governments have policies that favour importation even when farmers in those countries have bumper harvests of the same product.
“We need policies that are able to protect farmers and local production,” he said.
Other than cocoa in Ghana and chocolate from Switzerland, countries like Ivory Coast and Nigeria are net exporters of natural rubber, which is processed and brought back to them as car tyres, footwear, and rubber-based industrial goods.
Tanzania, Mozambique, and Ivory Coast are net exporters of cashew nuts but importers of roasted and processed cashew nuts, cashew butter, and other value-added cashew products.
Kenya is currently delving into the exportation of raw avocado, but the country has always imported particularly avocado cosmetic products.
However, all is not lost.
Rwanda was showcased as one of the success stories in Africa where, through favourable policies, the country has created a conducive environment attracting investment into the agro-processing sector.
“Our country’s Strategic Plan for Agriculture Transformation has enabled us to move the sector from subsistence to a knowledge-based, value-creating sector,” said Nelly Mukazayire, the Deputy CEO of the Rwanda Development Board (RDB).
To make work more accessible and attractive to investors, the country has created a one-stop-centre where investors in any given sector, including agro-processing, are given services right from the search for a business name, business registration, generation of unique identification of the registered business, the opening of the business bank account and issuance of relevant permits and licenses, and the entire process takes a maximum of eight hours for the business to become a legal entity.
In many other African countries, such processes can take more than four months and, in some cases, a year for a business to get proper registration, and this, according to the delegates at the AGRF, slows down the rate of investment.
“Investors in the agriculture sector in Rwanda also have an opportunity to get up to seven years of tax holiday and reduced corporate income taxes on exports,” said Mukazayire.
After the COVID-19 pandemic, the country launched what is today known as the Manufacture and Build to Recover Programme (MBRP), aiming to boost economic recovery efforts with specific incentives for the manufacturing, agro-processing, construction and real estate development sectors.
Through MBRP, manufacturers with a capital of USD1 million and above are given import duty exemption and Value Added Tax (VAT) exemption for imported construction materials unavailable in East Africa, VAT exemption for machinery and raw materials sourced domestically and VAT exemption for construction materials sourced domestically.
However, the capital for agro-processing was capped at USD 100,000 to support the sector’s growth.
During the AGRF Deal Room event, Brent Malahay, the Chief Strategy Officer at the Equity Group, called on investors to take advantage of the bank’s ‘Africa recovery and resilience plan,’ whose aim is to capacitate, finance and connect East African Community value chains to global supply chains.
“Through this plan, Equity Group will leverage off a region that gives access to critical raw materials, supports industrial capacity needs and an entrepreneurial and innovative local workforce, and the one that provides a sizeable market that is increasingly becoming more integrated,” said Malahay.
During the event, Isobel Coleman, Deputy Administrator at the United States Agency for International Development (USAID), announced an investment of USD4 million into VALUE4HER, AGRA’s Deal Room product, which is a continental initiative aimed at strengthening women’s agribusiness enterprises and enhancing voice and advocacy across Africa.
Sara López (C) and other members of the Regional Indigenous and Popular Council of Xpujil are seen here in a photo from 2020, while campaigning against the environmental problems posed by the Mayan Train, which will run through part of southern and southeastern Mexico. The Secretariat (ministry) of National Defense has been put in charge since September of the construction and administration of the Mexican government’s flagship project. CREDIT: Cripx
by Emilio Godoy (mexico cityhttps://ipsnoticias.net/2023/09/mexico-gira-hacia-los-militares-empresarios/)
Inter Press Service
MEXICO CITYhttps://ipsnoticias.net/2023/09/mexico-gira-hacia-los-militares-empresarios/, Sep 14 (IPS) – Courage, sadness and impotence are expressed by Mayan indigenous activist Sara López when she talks about the Mayan Train (TM), the Mexican government’s biggest infrastructure project, which will cross the town where she lives and many others in the Yucatan Peninsula.
“These are things that cause damage. In the communities, both the National Guard (a civilian security force, but made up mostly of military personnel) and the army are present. People tell us they have lost the peace they used to have. There are communities that have been invaded, there has been a very strong impact,” the member of the non-governmental Regional Indigenous and Popular Council of Xpujil told IPS.
“The entire Yucatan peninsula is militarized,” she said from Candelaria, in the southeastern state of Campeche. Agriculture and livestock are the main activities in the municipality of some 47,000 inhabitants, which will be the site of a TM station.
The megaproject consists of seven sections along some 1,500 kilometers and will also cross the states of Quintana Roo and Yucatan, which share the peninsula with Campeche together with the states of Chiapas and Tabasco.
The railway will run through 41 municipalities and 181 towns, with 20 stations and 14 stops.
President Andrés Manuel López Obrador, who begins his sixth and final year in office on Dec. 1, has transferred the administration of ports, airports and rail transport to the Secretariat (ministry) of National Defense (Sedena).
This is despite the fact that there are no records of their performance in the management of these key areas in the recent history of the country, in which their experience has been limited to the production and sale of supplies.
Aleida Azamar, a researcher at the public Autonomous Metropolitan University, argued that uniformed personnel are not prepared for these tasks.
“The military are not trained for many functions. The government is concerned about economic growth and development, and to preserve that model it has put the military in charge. They think it will be achieved through infrastructure and extractive projects,” Azamar, who is coordinating a new book on the military and natural resources in Mexico, told IPS.
“In their view, the fastest way to finish them is with the army, because it is more difficult for the public to put up opposition when they see someone with a gun. It is not the most adequate solution.”
López Obrador announced on Sept. 4 the transfer of control of the Mayan Train from the state-owned National Tourism Development Fund (Fonatur) to Sedena, in an intensification of the trend of ceding more civilian responsibilities to the military, by handing over his flagship megaproject.
The president’s argument for this strategy is that he aims to reduce corruption in public works. But actually it may be due to other reasons, such as the culture of discipline in following orders so that the works advance as quickly as possible and thus meet the deadlines set.
Sedena will be responsible for the completion of sections five, six and seven of the railroad, whose works were started by Fonatur in July 2020 and which López Obrador promised would begin to operate by Dec. 1. Other sections are being built by private companies.
The resistance to deploying the military into the TM and other civilian areas is also due to its actions since 2006, when then President Felipe Calderón launched the so-called “war against drugs” using the military, which led to extrajudicial executions, disappearances, human rights violations and impunity, according to local and international organizations.
In fact, so far this century the Inter-American Court of Human Rights, the highest regional court attached to the Organization of American States, has condemned Mexico on at least five occasions for military crimes such as forced disappearance, sexual violence and arbitrary detention.
The government promotes the TM as a major new engine of socioeconomic development in the southeast of the country and its trains will transport thousands of tourists, and cargo such as transgenic soybeans, palm oil and pork, the main products in the area.
The administration claims that it will create jobs, boost tourism beyond traditional attractions, and invigorate the regional economy, which has sparked highly polarized controversies between its supporters and critics.
The Mayan Train will run 1,500 kilometers, through 41 municipalities and 181 towns in the south and southeast of Mexico, with a cost overrun that already exceeds 28 billion dollars. CREDIT: Fonatur
From the barracks to business
Historically, the armed forces had been limited to producing supplies and building government facilities, such as hospitals and other infrastructure.
However, thanks to the policies of the current government, Sedena has created the corporations Tren Maya, Aerolínea del Estado Mexicano, Grupo Aeroportuario, Ferroviario, de Servicios Auxiliares y Conexos Olmeca-Maya-Mexica (Gomm) and the Felipe Ángeles International Airport, located in the state of Mexico, adjacent to the Mexican capital.
Gomm is also involved in the operation of 12 airports, and will receive more in the future.
In addition, it will operate the revived Compañía Mexicana de Aviación, the country’s oldest airline and one of the first in the region, privatized in 2005 and closed since 2010. Under the new name Aerolínea del Estado Mexicano, the government resuscitated it in January, buying the brand. The armed forces will also manage hotels along the TM route.
At the same time, the Secretariat of the Navy (Semar) manages five shipyards in various areas of the country.
To run seven airports, including Mexico City’s, out of the 19 facilities under state control, Semar created the company Casiopea.
Mexico has 118 ports and terminals, of which 71 have been given in concession in 25 administrations of the National Port System. Since 2017, Semar has been administering the ports.
This scheme requires a lot of money, provided by the public budget. The clearest case is the TM, whose cost rose threefold, from the initial projected investment of 7.2 billion dollars to the current estimate of over 28 billion dollars.
For 2024, Sedena has already requested 6.7 billion dollars for the railroad, the second highest figure for the TM since 2020, when allocated funds totaled 349 million dollars.
Military requirements for all civilian sectors under their administration have grown, as Sedena requested 14.55 billion dollars, compared to 6.27 billion in 2023, and Semar asked for 4.02 billion, compared to 2.34 billion this year – in both cases more than double.
Behind this is the fact that state-owned companies under military management are not yet profitable, so they require subsidies. The non-governmental organization México ¿Cómo Vamos? calculates that it will take 17 years to recoup the investment in the TM and 22 years in the case of the Tulum International Airport, under construction in the state of Quintana Roo.
The Navy manages the Mexico City International Airport and six other airports, although it lacks experience in running this type of air transport infrastructure. CREDIT: Emilio Godoy / IPS
Potential threats
As in the case of military involvement in security and public safety, military business management poses risks of information concealment, corruption and economic losses.
The armed forces are the institutions that most violate human rights, including cases of murder, torture and sexual violence. Between 2007 and 2020, some 70,000 people suffered physical aggression after being apprehended by the army, according to the Citizen Security Program (PSC) of the private Ibero-American University.
The number of military personnel involved in public security already exceeds the total number of municipal and state police, in a proportion of 261,644 to 251,760, according to data reported by the PSC.
López the activist and Azamar the academic warned of the risks of military management.
“Only the government knows how much they have spent, how much is going to be spent,” said López. “There is no real report on what they are doing. Since the megaproject began, there has been no real information. They have never talked to us about environmental, cultural or economic impacts. It has caused us problems, it has been chaos for us. And once it is operating, the situation is going to get worse because of tourism.”
Azamar warned of increasing reliance on the military, the potential erosion of civil rights, a distorted perception of the approach to security and public safety and the undermining of trust in civilian institutions.
“There is a problem of lack of transparency and accountability: what is spent and how. It is risky, because there is no real, disaggregated data. This creates an environment of impunity that allows secrecy to continue and does not make it possible for other information to be made public. If there are no effective oversight mechanisms, abuses could be committed. We are in a gray area, because we do not know who controls them,” she argued.
In November 2021, López Obrador classified the TM as a “priority project” by means of a presidential decree, a strategy that facilitates the fast-tracking of environmental permits and thus hides information under the broad umbrella of national security.
This despite the fact that a month later, the Supreme Court reversed the national security agreements to annul the reservation of information, due to an appeal by the autonomous governmental National Institute of Transparency, Access to Information and Protection of Personal Data.
Mexico’s problems will not end in the short term, as pro-military policies will condition the next administration that will take office in December 2024, regardless of where it stands on the political spectrum, although the polls point to presidential hopeful Claudia Sheinbaum of the National Regeneration Movement (Morena), López Obrador’s party, as the favorite.
Opinion by Jomo Kwame Sundaram (kuala lumpur, malaysia)
Inter Press Service
KUALA LUMPUR, Malaysia, Aug 24 (IPS) – International governance arrangements are in trouble. Condemned as ‘dysfunctional’ by some, multilateral agreements have been discarded or ignored by the powerful except when useful to protect their interests or provide legitimacy.
Economic multilateralism under siege
Undoubtedly, many multilateral arrangements have become less appropriate. At their heart is the United Nations (UN) system, conceived in the last year of US President Franklin Delano Roosevelt’s presidency and World War Two.
Jomo Kwame SundaramThe 1944 UN conference at Bretton Woods sought to build the foundations for the post-war economic order. The International Monetary Fund (IMF) would create conditions for lasting growth and stability, with the World Bank financing post-war reconstruction and post-colonial development.
The Bretton Woods agreement allowed the US Federal Reserve Bank (Fed) to issue dollars, as if backed by gold. In 1971, President Richard Nixon repudiated the US’s Bretton Woods obligations. With US military and ‘soft’ power, widespread acceptance of the dollar since has effectively extended the Fed’s ‘exorbitant privilege’.
This unilateral repudiation of US commitments has been a precursor of the fate of some other multilateral arrangements. Most were US-designed, some in consultation with allies. Most key privileges of the global North – especially the US – continue, while duties and obligations are ignored if deemed inconvenient.
The International Trade Organization (ITO) was to be the third leg of the post-war multilateral economic order, later reaffirmed by the 1948 Havana Charter. Despite post-war world hegemony, the ITO was rejected by the protectionist US Congress.
The General Agreement on Tariffs and Trade (GATT) became the compromise substitute. Recognizing the diversity of national economic capacities and capabilities, GATT did not impose a ‘one-size-fits-all’ requirement on all participants.
But lessons from such successful flexible precedents were ignored in creating the World Trade Organization (WTO) from 1995. The WTO has imposed onerous new obligations such as the all-or-nothing ‘single commitment’ requirement and the Agreement on Trade-related Intellectual Property Rights (TRIPS).
Overcoming marginalization
In September 2021, the UN Secretary-General (SG) issued Our Common Agenda, with new international governance proposals. Besides its new status quo bias, the proposals fall short of what is needed in terms of both scope and ambition.
Problematically, it legitimizes and seeks to consolidate already diffuse institutional responsibilities, further weakening UN inter-governmental leadership. This would legitimize international governance infiltration by multi-stakeholder partnerships run by private business interests.
The last six decades have seen often glacially slow changes to improve UN-led gradual – mainly due to the recalcitrance of the privileged and powerful. These have changed Member State and civil society participation, with mixed effects.
Fairer institutions and arrangements – agreed to after inclusive inter-governmental negotiations – have been replaced by multi-stakeholder processes. These are typically not accountable to Member States, let alone their publics.
Such biases and other problems of ostensibly multilateral processes and practices have eroded public trust and confidence in multilateralism, especially the UN system.
Multi-stakeholder processes – involving transnational corporate interests – may expedite decision-making, even implementation. But the most authoritative study so far found little evidence of net improvements, especially for the already marginalized.
New multi-stakeholder governance – without meaningful prior approval by relevant inter-governmental bodies – undoubtedly strengthens executive authority and autonomy. But such initiatives have also undermined legitimacy and public trust, with few net gains.
All too often, new multi-stakeholder arrangements with private parties have been made without Member State approval, even if retrospectively due to exigencies.
Unsurprisingly, many in developing countries have become alienated from and suspicious of those acting in the name of multilateral institutions and processes.
Hence, many in the global South have been disinclined to cooperate with the SG’s efforts to resuscitate, reinvent and repurpose undoubtedly defunct inter-governmental institutions and processes.
Way forward?
But the SG report has also made some important proposals deserving careful consideration. It is correct in recognizing the long overdue need to reform existing governance arrangements to adapt the multilateral system to current and future needs and requirements.
This reform opportunity is now at risk due to the lack of Member State support, participation and legitimacy. Inclusive consultative processes – involving state and non-state actors – must strive for broadly acceptable pragmatic solutions. These should be adopted and implemented via inter-governmental processes.
Undoubtedly, multilateralism and the UN system have experienced growing marginalization after the first Cold War ended. The UN has been slowly, but surely superseded by NATO and the Organization for Economic Cooperation and Development (OECD), led by the G7 group of the biggest rich economies.
The UN’s second SG, Dag Hammarskjold – who had worked for the OECD’s predecessor – warned the international community, especially developing countries, of the dangers posed by the rich nations’ club. This became evident when the rich blocked and pre-empted the UN from leading on international tax cooperation.
Seeking quick fixes, ‘clever’ advisers or consultants may have persuaded the SG to embrace corporate-dominated multi-stakeholder partnerships contravening UN norms. More recent SG initiatives may suggest his frustration with the failure of that approach.
After the problematic and controversial record of such processes and events in recent years, the SG can still rise to contemporary challenges and strengthen multilateralism by changing course. By restoring the effectiveness and legitimacy of multilateralism, the UN will not only be fit, but also essential for humanity’s future.
TOKYO, Japan, Aug 23 (IPS) – At this year’s G7 summit in Japan, global leaders emphasized the importance of unity as the world navigates grave threats to multilateralism. The message was clear – trusted global platforms for dialogue and solutions are extremely crucial in current times.
They are right. More than ever before, effective multilateralism is needed to tackle the polycrisis and to create the world we want: one in which there is prosperity for all.
Thirty years ago, The Tokyo International Conference on African Development (TICAD), was launched as a multi-stakeholder forum for Japan and Africa to deepen collaboration, with the facilitation of partners like the United Nations Development Programme (UNDP).
UNDP is proud to be associated with TICAD – not least for it unique in its ability to tackle a wide – range of key issues of critical interest to Africa – like investment, skills training and technology transfer.
Since inception, TICAD’s investments in both aid and investment to Africa extend over the $100 billion mark. In the last three years alone, Japan has implemented 69 projects across Africa.
Ahunna EziakonwaCOVID -19 delivered a heavy setback to hard-won development gains, pushing millions back into poverty. Before the pandemic, Africa had seen important progress in human development, with living standards improving for a good part of the population. Six of the ten fastest – growing countries in the world were in Africa.
Today, we see regression – with COVID, growing conflict in some parts of Africa, and a cost-of-living crisis triggered by the impact of the war in Ukraine.
The challenges Africa faces today affect global prospects for attaining the SDGs, and put into sharp focus the criticality of effective partnerships. If we are to rescue the SDGs in Africa, we need to invest in opportunities that are foundational to accelerating Africa’s development.
So what is smart investment in Africa today?
It is all about investing in people. In less than ten years, 42 per cent of the world’s youth will live in Africa – and if the continent invests smartly, its young teeming innovators can create technology – led solutions to drive socioeconomic progress.
To secure a bright and prosperous future in Africa, Japan and UNDP are working together to invest in Africa’s people. This breadth stretches from support for inclusive governance, to ensuring women and youth are empowered, to social sectors like health and education.
In Nigeria, over 1000 young people in the conflict affected regions of the North-East and Middle Belt received an 8-week training on community – driven trade, and cash grants to help them set up new businesses. In Kenya and South Africa, young men and women participated in job skills training for car manufacturing in collaboration with Toyota Motor Corporation.
And in The Central African Republic, income generating activity groups were established, offering training in financial independence across sectors such as retail and animal husbandry. This initiative utilized the 5S-Kaizen methodology through a partnership with JICA. Japan’s support to UNDP’s Liptako Gourma Stabilization Facility has resulted in over 3000 women and youth benefitting from cross-border trade infrastructure and increased incomes for highly vulnerable borderland communities.
Literacy Training at Koudoukou Elementary School in the 3rd arrondissement of Bangui. Credit: UNDP Central African Republic, Arsène Christ NGOUMBANGO NZABE
Investing in green growth and trade
As the continent continues to chart its development pathway, with a strong vote for industrialization and diversification, the importance of advanced technological expertise is elevated. The new generation of development partnerships with Africa must frontload technology transfer including on a commercial basis – in areas of agriculture, health, education, energy transitions and smart cities.
A prime illustration is Japan’s Green Growth Initiative with Africa, which promotes green economics and support to just energy transitions with African ownership at the core.
Development of local industries and regional value chains will promote Africa’s industrialization – which both COVID 19 and the war in Ukraine have demonstrated – are key tenets of not just effective but also responsible partnerships.
A recent investment report by UNDP identified 157 SDG investment opportunities across 31 industries in Africa with significant financial and impact potential. The industries range from food and beverage to infrastructure, health care, renewable resources and alternative energy.
These investments now have an even larger network of markets – thanks to the African Continental Free Trade Area (AfCFTA) – the world’s largest trade zone by number of participating countries and geographical coverage.
The Japan – UNDP partnership has proven its worth in stepping into areas of development acceleration. As Africa stands at a critical inflection point, a vital window of opportunity exists to unlock the continent’s full potential – making Africa’s resources work for its people’s development. Now is the time for to step up the partnership. Now is the time to unlock Africa’s promise.
Read more about UNDP’s Renewed Strategic Offer in Africa ( Africa’s promise) here.
Ahunna Eziakonwa is Assistant Secretary-General, Assistant Administrator and Director of the Regional Bureau for Africa, UNDP
Opinion by Jomo Kwame Sundaram (kuala lumpur, malaysia)
Inter Press Service
KUALA LUMPUR, Malaysia, Jul 26 (IPS) – Currency values and foreign exchange rates change for many reasons, largely following market perceptions, regardless of fundamentals. Market speculation has worsened volatility, instability and fragility in most economies, especially of small, open, developing countries.
US Fed pushing up interest rates
For no analytical rhyme or reason, US Federal Reserve Bank (Fed) chairman Jerome Powell insists on raising interest rates until inflation is brought under 2% yearly. Obliged to follow the US Fed, most central banks have raised interest rates, especially since early 2022.
Jomo Kwame SundaramThe US dollar or greenback’s strengthening has been largely due to aggressive Fed interest rate hikes. Undoubtedly, inflation has been rising, especially since last year. But there are different types of inflation, with different implications, which should be differentiated by nature and cause.
Typically, inflationary episodes are due to either demand pull or supply push. With rentier behaviour better recognized, there is now more attention to asset price and profit-driven inflation, e.g., ‘sellers inflation’ due to price-fixing in monopolistic and oligopolistic conditions.
Recent international price increases are widely seen as due to new Cold War measures since Obama, Trump presidency initiatives, COVID-19 pandemic responses, as well as Ukraine War economic sanctions.
These are all supply-side constraints, rather than demand-side or other causes of inflation.
The Fed chair’s pretext for raising interest rates is to get inflation down to 2%. But bringing inflation under 2% – the fetishized, but nonetheless arbitrary Fed and almost universal central bank inflation target – only reduces demand, without addressing supply-side inflation.
But there is no analytical – theoretical or empirical – justification for this completely arbitrary 2% inflation limit fetish. Thus, raising interest rates to address supply-side inflation is akin to prescribing and taking the wrong medicine for an ailment.
Fed driving world to stagnation
Thus, raising interest rates to suppress demand cannot be expected to address such supply-side driven inflation. Instead, tighter credit is likely to further depress economic growth and employment, worsening living conditions.
Increasing interest rates is expected to reduce expenditure for consumption or investment. Thus, raising the costs of funds is supposed to reduce demand as well as ensuing price increases.
Earlier research – e.g., by then World Bank chief economist Michael Bruno, with William Easterly, and by Stan Fischer and Rudiger Dornbusch of the Massachusetts Institute of Technology – found even low double-digit inflation to be growth-enhancing.
The Milton Friedman-inspired notion of a ‘non-accelerating inflation rate of unemployment’ (NAIRU) also implies Fed interest rate hikes inappropriate and unnecessarily contractionary when inflation is not accelerating. US consumer price increases have decelerated since mid-2022, meaning inflation has not been accelerating for over a year.
At least two conservative monetary economists with Nobel laureates have reminded the world how such Fed interventions triggered US contractions, abruptly ending economic recoveries. Although not discussed by them, the same Fed interventions also triggered international recessions.
Friedman showed how the Fed ended the US recovery from 1937 at the start of Franklin Delano Roosevelt’s second presidential term. Recent US Fed chair Ben Bernanke and his colleagues also showed how similar Fed policies caused stagflation after the 1970s’ oil price hikes.
De-dollarization?
However, the US dollar has not been strengthening much in recent months. The greenback has been slipping since mid-2023 despite continuing Fed interest rate hikes a full year after consumer price increases stopped accelerating in mid-2022.
Many blame recent greenback depreciation on ‘de-dollarization’, ironically accelerated by US sanctions against its rivals. Such illegal sanctions have disrupted financial payments, investment flows, dispute settlement mechanisms and other longstanding economic processes and arrangements authorized by the World Trade Organization, International Monetary Fund and UN charters.
Even the ‘rule of law’ – long favouring the US, other rich countries and transnational corporate interests – has been ‘suspended’ for ‘reasons of state’ due to economic warfare which continues to escalate. Unilateral asset and technology expropriation has been justified as necessary to ‘de-risk’ for ‘national security’ and other such considerations.
Horns of currency dilemma
For many monetary authorities, the choice is between a weak currency and higher interest rates. With growing financialization over recent decades, big finance has become much more influential, typically demanding higher interest income and stronger currencies.
Central bank independence – from the political executive and legislative processes – has enabled financial lobbies to influence policymaking even more. For example, Malaysia’s household debt share of national output rose from 47% in 2000 to over four-fifths before the COVID-19 pandemic, and 81% in 2022.
There is little reason to believe recent exchange rates have been due to ‘economic fundamentals’. Currencies of countries with persistent trade and current account deficits have strengthened, while others with sustained surpluses have declined. Instead, relative interest rate changes recently appear to explain more.
Thus, both the Japanese yen and Chinese renminbi depreciated by at least six per cent against the US dollar, at least before its recent tumble. By contrast, British pound sterling has appreciated against the greenback despite the dismal state of its real economy.
