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Posts Tagged ‘globalisation

‘Thou shalt not’ to an economy of exclusion and inequality

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"Those excluded are no longer society’s underside or its fringes or its disenfranchised – they are no longer even a part of it. The excluded are not the 'exploited' but the outcast, the 'leftovers'." - Pope Francis. Image: L'Osservatore Romano

“Those excluded are no longer society’s underside or its fringes or its disenfranchised – they are no longer even a part of it. The excluded are not the ‘exploited’ but the outcast, the ‘leftovers’.” – Pope Francis. Image: L’Osservatore Romano

Pope Francis has issued, a month before Christmas, a blunt and plain message to the political and financial masters of our societies. That message is: the economics of exclusion and inequality must stop.

The message comes early in his ‘exhortation’ (called ‘Evangelii Gaudium’) and which has just been released by the Vatican. You will find it in Chapter 2 which is titled ‘Amid the crisis of communal commitment’. The main body of the exhortation has a lot of the usual evangelical language that such messages from the Vatican typically contain, but this chapter rings stark and true.

Francis has begun this section with: “It is not the task of the Pope to offer a detailed and complete analysis of contemporary reality, but I do exhort all the communities to an ‘ever watchful scrutiny of the signs of the times’. This is in fact a grave responsibility, since certain present realities, unless effectively dealt with, are capable of setting off processes of dehumanisation which would then be hard to reverse.”

Vatican_Francis_evangelii_gaudiumHe gives a nod to the proponents of technological remedies to many of our contemporary problems: “We can only praise the steps being taken to improve people’s welfare in areas such as health care, education and communications.” And then gets to the root of the issue with “at the same time we have to remember that the majority of our contemporaries are barely living from day to day, with dire consequences. A number of diseases are spreading. The hearts of many people are gripped by fear and desperation, even in the so-called rich countries. The joy of living frequently fades, lack of respect for others and violence are on the rise, and inequality is increasingly evident”.

“It is a struggle to live and, often, to live with precious little dignity. This epochal change has been set in motion by the enormous qualitative, quantitative, rapid and cumulative advances occurring in the sciences and in technology, and by their instant application in different areas of nature and of life. We are in an age of knowledge and information, which has led to new and often anonymous kinds of power.” This is a complaint as plain as any we have seen from those suffering from the effects of climate change, from the forced economics of austerity, from the land grabs and the perversions of democracy. It is possible that in the last sentence, Francis has also warned against the global spying (by the USA and its feckless allies) which included the Vatican too.

In the sub-section titled ‘No to an economy of exclusion’ Francis has made plain his opposition [get the English pdf here] to the current systems of power and control:
“Just as the commandment ‘Thou shalt not kill’ sets a clear limit in order to safeguard the value of human life, today we also have to say ‘thou shalt not’ to an economy of exclusion and inequality. Such an economy kills.”
“How can it be that it is not a news item when an elderly homeless person dies of exposure, but it is news when the stock market loses two points? This is a case of exclusion. Can we continue to stand by when food is thrown away while people are starving? This is a case of inequality. Today everything comes under the laws of competition and the survival of the fittest, where the powerful feed upon the powerless. As a consequence, masses of people find themselves excluded and marginalised: without work, without possibilities, without any means of escape.”

Vatican_Francis_main“Human beings are themselves considered consumer goods to be used and then discarded. We have created a ‘throw away’ culture which is now spreading. It is no longer simply about exploitation and oppression, but something new. Exclusion ultimately has to do with what it means to be a part of the society in which we live; those excluded are no longer society’s underside or its fringes or its disenfranchised – they are no longer even a part of it. The excluded are not the ‘exploited’ but the outcast, the ‘leftovers’.”

And in one angry paragraph, Francis effectively sends packing the army of macro-economists and financial manipulators who continue to claim that constant growth (GDP, economy, consuming, and so on) brings people out of poverty thanks to the ‘free market’.

“In this context, some people continue to defend trickle-down theories which assume that economic growth, encouraged by a free market, will inevitably succeed in bringing about greater justice and inclusiveness in the world. This opinion, which has never been confirmed by the facts, expresses a crude and naïve trust in the goodness of those wielding economic power and in the sacralised workings of the prevailing economic system. Meanwhile, the excluded are still waiting.”
“To sustain a lifestyle which excludes others, or to sustain enthusiasm for that selfish ideal, a globalisation of indifference has developed. Almost without being aware of it, we end up being incapable of feeling compassion at the outcry of the poor, weeping for other people’s pain, and feeling a need to help them, as though all this were someone else’s responsibility and not our own. The culture of prosperity deadens us; we are thrilled if the market offers us something new to purchase. In the meantime all those lives stunted for lack of opportunity seem a mere spectacle; they fail to move us.”

This is indeed revolutionary material from the Vatican. Now let’s see what effect it has on the suits in the G20, the banking parasites, the stock marketeers, the land grabbers, the ecological criminals in all our countries.

Why the West wants to wreck UNCTAD

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How much damage do the financial and ruling elites of the western power blocs think they can get away with? A great deal, it is clear, judging from the stoutness of the defences raised to protect the UNCTAD (United Nations Conference on Trade and Development) and its analytical mandate.

One of the less conspicuous UN agencies, UNCTAD was set up in 1964 to support developing countries to strengthen their weak position in international economic structures, and to design national development strategies. As Martin Khor, Executive Director of the South Centre, explained, it became a kind of secretariat on behalf of developing countries, providing a small pro-development balance to the huge organisations dominated by the developed countries, such as the OECD, the IMF and World Bank.

In the past 20 years, the developed countries (OECD) have tried to curb the pro-South orientation of the UNCTAD secretariat and its many reports. The inter-governmental discussions became less significant, while UNCTAD’s pro-development mission was increasingly challenged by the developed countries.

What is this mission? UNCTAD says it promotes the development-friendly integration of developing countries into the world economy, that it has progressively evolved into an authoritative knowledge-based institution whose work aims to help shape current policy debates and thinking on development, with a particular focus on ensuring that domestic policies and international action are mutually supportive in bringing about sustainable development.

Note the stress on development, and not market, not trade and not finance. This is the problem for those who would seek to scuttle UNCTAD. It is a trend that seemed to have subsided in the past decade, but in the past two months, the meetings in Geneva to prepare for UNCTAD XIII, some developed countries have reportedly attempted to dilute the areas of future work of UNCTAD, to the frustration of the G77 and China.

Hence the statement, which is now widely available on the internet, by civil society organisations which have gathered in Doha, Qatar, for UNCTAD XIII meeting (21-26 April), which has said:

“The importance of UNCTAD’s work has been highlighted by the global financial and economic crisis and its continuing catastrophic effects on peoples and economies. Over the years while the Bretton Woods twins led the cheerleading for unbridled liberalisation and deregulation of markets and finances which produced the crisis, UNCTAD’s analysis consistently pointed out the dangers of these policies. The economic turmoil provoked by the crisis makes UNCTAD’s mandate and work even more relevant.”

“CSOs in Doha demand that UNCTAD’s crucial research and analytical work especially on 1) the global financial crisis, and 2) other development challenges including those arising from globalisation be maintained. UNCTAD serves as an important countervailing forum where the interests of developing countries can be paramount when trade, development and interrelated issues are being discussed. This value and its proven track record is why the attack on UNCTAD’s mandate has to be resisted.”

The CSOs in Doha are concerned that group of countries which includes Japan, USA, Switzerland, Canada, South Korea, Australia, New Zealand and which also includes the European Union (EU) are so opposed to UNCTAD’s vital analytical and advisory work on finance and responses to the crisis that they are refusing to even reaffirm UNCTAD’s mandate as agreed in Accra.

What is clear is that this group now sees UNCTAD’s work as a global defence against the effects of new economic policies, which in their many mutations have since the early 1980s heaped unspeakable misery on hundreds of millions around the world, in the South. These policies, as UNCTAD has also helped show, have led directly and indirectly to pervasive and chronic economic inequality, insecurity, unemployment and under-employment, casualisation, informalisation, a heightened level of labour exploitation, the emasculation of protective factory acts and labour laws.

That is why the civil society organisations present in Doha for UNCTAD XIII contrasted the interest the major powers have shown in strengthening the IMF and World Bank (and in using bodies of questionable accountability such as the G20 to block truly multilateral responses to the crisis of neoliberalism) with their negative attitude to UNCTAD. They noted that the IMF and World Bank continue to peddle policies which caused and have been discredited by the crisis. And they have demanded that the OECD-oriented group of would-be UNCTAD wreckers keep their hands off the organisation.

Written by makanaka

April 20, 2012 at 17:49

Why the global consultants want to see more Asian megacities

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The urbanisation-mongers say that more than 20 of the world’s top 50 cities ranked by GDP will be located in Asia by the year 2025, up from 8 in 2007.

The mantra of urbanisation has been at the forefront of the exploitative and socially destructive economics of the last 20 years.

In recent years it has been chanted loudest by the global consulting firms – the same ones which audit the books of the banks that collapse, taking small savers’ money with them, and the books of the Wall Street firms, which destroy jobs and abet the plunder of resources the world over.

Why are they saying this? Let’s look at what one of these firms, McKinsey, has been saying about urbanisation (this firm has concentrated heavily on pushing urban finance, and is lobbying hard with Asian governments to do as it recommends).

“Asia’s growing economic power manifests itself in many ways,” McKinsey has said. “Back in 2007, for example, only 8 of the top 50 urban areas (by GDP) were located there. Half of global GDP came from the developed world’s top 380 cities, with 20-plus percent from just 190 North American ones.”

The urbanisation-mongers say that in this new landscape of urban economic power, Shanghai and Beijing will outrank Los Angeles and London, while Mumbai and Doha will surpass Munich and Denver.

Over the next 15 years, McKinsey has said, the urban centre of gravity will move south and east. In the geography of globalisation, South means South Asia and India, East means China.

By 2025, this forecast posits that Asia will have upward of 20 of the top 50 cities, and Shanghai and Beijing will have GDPs higher than those of Los Angeles and London, according to this city-obsessed firm.

Why are they saying this? Pushing urbanisation means getting into one administrative unit more workers and more consumers at once. It means markets for goods and services (think finance, insurance, health, education) that are easier to reach and easier to shoehorn into uniform regulations.

The urbanisation-mongers say that the implications for companies’ growth priorities, countries’ economic relationships, and the world’s sustainability strategy are profound. They're right, and we must beware.

It also means creating nuclei for rural migrants, who will be gradually but inexorably pushed out of their villages as the costs and burdens of smallholder farming become more unbearable, and as the levels of rural food and fuel inflation become more unendurable.

The success of the urbanisation that McKinsey and its peers and the collaborators in government want depends on the steady depopulating of the rural districts of our countries, the abandoning of land that will then be taken over by corporate and industrial agriculture which will then supply crop monocultures to the food processing industries and retail systems designed to feed the miserable millions in crammed, unlivable cities.

Written by makanaka

October 5, 2011 at 22:24

The carefully constructed mirage of the ‘green economy’

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Not a week goes by nowadays without one high-profile institution or high-powered interest group directing us all to be part of the ‘new, green economy’. That’s where the next jobs are, where innovation is, where the next wave of financing is headed, where the best social entrepreneurship lies. There are the big inter-governmental organisations telling us this: United Nations Environment Program, UNCTAD, OECD, International Energy Agency, the big international lending agencies like the World Bank and Asian Development Bank. There are big think-tanks telling us the same thing – backed up by hefty new reports that are boring to read but whose plethora of whiz-bang charts are colourful. There are big companies, multinationals and those amongst the Fortune 500, also evangelising the new green economy and patting themselves on the back for being clean and green and so very responsible.

Artisanal blacksmith and his family, Maharashtra, India

What on earth are they all talking about? Does it have to do with us average, salaried, harassed, commuting, tax-paying types who are struggling with food inflation and fuel cost hikes and mortgages and loans that break our backs? Are they talking to our governments and our municipalities, who are worried about their budgets and their projects and their jobs too?

Here are a few answers from working class Asia. Let’s start with restating a couple of trendlines. One, the era of growth in the West is over. Growth is Asia is what is keeping the MNCs and their investors and bankers and consultants interested, and this means China and India (also Brazil, Russia, South Africa, Indonesia). Two, the environmental consciousness which began in the 1970s to spread quickly in the West led to many good laws being framed and passed. These were responses to the industrial and services growth in the Western economies. As globalisation took hold, people in less industrialised countries – ordinary citizens – saw what had happened in the West and learnt from their experiences with industrialisation. Green movements took root all over Asia and South America, protests were common, confrontations just as much, and global capital found itself being questioned again, even more fiercely.

These are the two major trends. The forces of production want to move much further into what used to be the ‘developing’ world, but want to meet much less resistance. That’s why they appeal to the consumer minds of China, India and the other target countries – you need jobs, homes, nice cars, big TVs, cool vacations, credit, aspirations, and lifestyle is what the messages say, whether they’re from telecom companies or condominium salesmen. But it’s hard to market all this stuff – real stuff, virtual stuff – to people who are still struggling to make ends meet.

This was after all the old 'green economy'. A late 19th century painting in a maritime museum near Mumbai, India

That’s where the ‘new, green economy’ tagline and its earnest-sounding philosophy comes in. “The main challenges to jump-starting the shift to a green economy lie in how to further improve these techniques, adapt them to specific local and sectoral needs, scale up the applications so as to bring down significantly their costs, and provide incentives and mechanisms that will facilitate their diffusion and knowledge-sharing,” said one of these recent reports. Look at the text which contains all the right buzzwords – ‘scale up’, ‘jump-start’, ‘applications’ (that’s a favourite), ‘knowledge-sharing’, ‘local’.

This makes the ‘old economy’ sound good but changes nothing substantial on the ground, or on the factory shopfloor or for the tens of thousands of little manufacturing units that do small piecework jobs for the bigger corporations up the chain. The world’s business philosophy has changed drastically even without the impact of environment and energy. To drive home this point, it has been a long time since we heard anything like ‘industrial relations’, and that alone should tell us how far the dominance of capital has reached, when labour, whose organisation gave the West its stellar growth rates in the 1960s and 1970s, has now become all but ignored. This is because the dominant interests associated with capital have insisted, successfully for investors and for pliant governments, that the manufacturing firms break loose from the industrial relations moorings they had established. The restructuring of firms to emphasise leaner and meaner forms of competition – as the ruthless management gurus and greedy consulting agencies instructed – was in line with market pressures that are viewed by the powers-that-be as crucial to the revitalisation of the economy.

Read their greenwash carefully and the control levers are revealed. “Further innovation and scaling up are also needed to drive down unit costs. Technologies will need to be ‘transferred’ and made accessible, since most innovation takes place in the developed countries and private corporations in those countries are the main owners of the intellectual property rights covering most green technologies.” So says ‘World Economic and Social Survey 2011: The Great Green Technological Transformation’ (UNESCO, Department of Economic and Social Affairs). Rights and access are built in from the start, as you can see.

And yet it is this very system of production, of the arrangement of capital and of the effort to weaken working regulations that is now talking about the ‘green economy’. Why do they even imagine we should believe them? They are the ones who have remained locked into the fossil fuel economy and who have partnered the enormous influence of the finance markets, who have followed every micro-second of the way the dictates of capital flows and what the market investors want in their endless quest for greater profits in ever-shorter cycles of production. For the major business of the world, ‘green economy’ is yet another route to super-profits and the consolidation of both forces of production and masses of consumers. The difference between now and the 1970s is that today they are able to successfully enlist the apparently authoritative inter-governmental organisations with their armies of economists and social scientists and engineers, to support this new profiteering. Only now, the cost is planetary.

How the G20 ministers said ‘agriculture’ but meant ‘trade and commodities’

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Under the presidency of France, the G20 called a meeting of its member countries’ agriculture ministers to consider the food production and food price problems. They have releaed a “ministerial declaration”. This declaration is being called a “renewed commitment” to tackling hunger by part of the financial media, or is being called “weak” and a mere restating of positions by the more critical, or is being called an empty document full of vague promises and no reform by some activists.

Sandatu Kalug, 58, a lifetime rice farmer in Maguindanao Province lost his entire paddy crop to heavy flooding in June 2011. Photo: David Swanson/IRIN

In fact, it is a strong statement alright. It supports the current model of agri-business, of international investment in arable land, it supports the operations of the global agriculture commodity markets and trading systems, and it ensures that the flows of finance and capital between the world’s financial markets and the commodity markets will continue with less restrictions rather than more control.

All this is done in the name of small farmers and poor consumers. They have talked about a new global agriculture market information system (Amis) so that governments can share better data about the state of food stocks and global production. This is nonsense – it is the bankers, food traders, commodity funds, retail food industry and foodgrain exporters who will use this new knowledge and data. They imply that the Food and Agriculture Organisation (FAO) will run the Amis and they will exploit the new data. Private sector players, such as the large grain traders for whom knowledge of stocks and harvests represent a key competitive advantage, are simply ‘urged’ to participate – they will, at a profit which further loots the urban and rural poor.

There are five main objectives the G20 ministers made commitments to. However, like earlier inter-governmental statements over the last few years concerning agricultural production and access to food, it’s always safer I find to consider what is being meant here.

If we look at the five objectives and take the first:
“i. improve agricultural production and productivity both in the short and long term in order to respond to a growing demand for agricultural commodities”

There is a growing demand for “agricultural commodities”. So investment and research and trade arrangements and enabling policy are to be deployed to help fulfil this kind of demand?

“ii. increase market information and transparency in order to better anchor expectations from governments and economic operators”

Do governments and “economic operators” (what are these? food traders? commodity funds? integrated retailers?) have the same kinds of expectations? Is better “market information and transparency” to benefit only government and “operators” or do food producers and consumers also require them?

To make best use of the land, the Jumma tribes of Bangladesh's CHT practise a form of ‘shifting cultivation’, growing food in small parts of their territory, before moving on to another area and allowing the land to recover. Photo: IRIN/Courtesy of Christian Erni/IWGIA

“iii. strengthen international policy coordination in order to enhance confidence in international markets and to prevent and respond to food market crises more efficiently”

Confidence in international markets may be a concern for governments and economic operators, but in what way are they essential for food producers and consumers, who have since late 2007 suffered through price spikes amplified by these same international markets? The implication here is that responses to “food market crises” can be provided by – among other measures such as policy direction – these markets, which I find troublesome especially given the evidence since 2007.

“iv. improve and develop risk management tools for governments, firms and farmers in order to build capacity to manage and mitigate the risks associated with food price volatility, in particular in the poorest countries”

What are these risk management tools? Are they commodity hedge funds? Are they trading agreement? Are they bilateral agreements and FTAs? Are they commodities exchanges? Who will wield these tools? In poor and the poorest countries farmers have little or no capacity to manage and mitigate existing risk – they surely cannot bear the additional risks brought about by price volatility, but in what way will these tools help and function?

“v. improve the functioning of agricultural commodities’ derivatives markets.”

To what end? Agricultural commodities derivatives markets tie up crop production and food-in-stock, but for whom do they do this? If the functioning of these markets is to be “improved”, who will benefit from this improvement? Will it be the smallholder farmer and if so in what way? How many farmers of the South are directly connected to the agricultural commodities derivatives markets as beneficiaries? Are consumer coops connected?

These are some questions that come to mind when reading these five objectives. I see that Sarkozy has stated, “”We all know that agricultural production is insufficient to meet demand”. This may be so, for certain crops in certain regions, but against the background of these five objectives, I have to question: demand from whom or what and to what end?

[See 'The priorities of the agriculture G20', Nicolas Sarkozy's address at the G20 and you can get the G20 ministerial declaration here]

A vegetable seller waits for customers at the Wakulima market in Nairobi, Kenya. Photo: Siegfried Modola/IRIN

Here are a few sentences from paras 18 and 19 of the ‘ministerial declaration':

“18. We commit to creating an enabling environment to encourage and increase public and private investment in agriculture. In particular, we stress the need to support public-private partnership on investments, based on a value-chain approach, for services (such as access to financial services, agricultural education and extension services), and for infrastructure and equipment for production (such as irrigation), for agroprocessing, for access to markets (such as transport, storage, communication) and for reducing pre and post-harvest losses.”

“19. We encourage countries, international organizations and the private sector to increase investment in developing countries agriculture, and in activities strongly linked to agricultural productivity growth, food security and generation of income in rural areas, such as agricultural institutions, extension services, cooperatives, research, roads, ports, cold chain, power, storage, irrigation systems, information and communication technology, climate change mitigation and adaptation. We also encourage them to enhance public-private partnerships in this field, in particular to improve market and value-chain operators’ cooperation and procurement from smallholders.”

This is a direct and unambiguous call for greater industrialisation of agriculture, for the strengthening of the tools of globalisation that have given rise to the agri commodity markets and products like derivatives, for the intensification of corporate R&D in agbiotech and with the support of national agricultural reseach systems in various countries – and at the likely cost of traditional knowledge and ecological approaches to cultivation. This sounds to me like an unambiguous statement of support for the food trading and food retail industries and their vast ‘verticals’ (as they call the integrative links these days), and finally for the systems of finance and banking that undergird the globalisation of food.

How the OECD dislikes poor Indians but covets their economy

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No you don't. Get your destructive sophistry away from my village and my community.

The OECD (Organisation for Economic Cooperation and Development) has just released its Survey of India, and has said that “India now has the opportunity to move towards sustained and socially inclusive double-digit growth if the right policies are put in place”. The OCED survey said India’s economy has ranked among the best performers over the past decade, and poverty has been falling faster than in many other emerging economies. Pending a detailed reading of the report I can’t see how “best performer” and “falling poverty” can be applied to India, but the social and environmental dimensions of India’s so-called eocnomic growth may not be within the OECD’s scope in such a survey.

OECD Secretary-General Angel Gurría presented the Economic Survey of India in New Delhi and there said: “Policymakers are to be commended on the remarkable catch-up achieved in recent years, making India one of main driving forces of the global economy. The priority given to more socially inclusive economic growth is appropriate and further reforms are needed to achieve it.” There are more such conceptual conundrums here – catch up with who? And for what? What “socially inclusive” growth is Gurria talking about – India has the world’s largest population of malnourished children and the world’s largest population of hungry people. This has been so for the entire period that the OCED said India was “catching up”.

To ensure strong growth continues and is sufficiently inclusive, the government needs to target public expenditure better on the poor, the OECD has said. “Although high growth has reduced poverty, progress could have been faster. Hundreds of millions of people still live below the official poverty line. Malnutrition and poor health are still widespread.” Evidently the OECD India Survey 2011 team saw no contradiction between what they have praised and what exists. Against this backdrop, the report advocates a strengthened welfare system and improved access to health care. “Government spending on health is only around 1% of GDP – among the lowest rates in the world. Private health care provision is increasing but quality is highly variable. Better regulation and oversight is needed.” This is true, but the Survey’s objectives lead all solutions away from more and better public healthcare.

The irrelevance of the GDP squiggle to most Indians goes unnoticed by the OECD

The report said that around 9% of GDP is spent on energy and other subsidies, most of which fails to reach the poor, and that diesel subsidies should be phased out. For other energy products, such as kerosene and LPG, susbidies should be transformed into cash payments targeted to the poorest people in society. The government needs to ensure that its plan to shift kerosene and fertiliser subsidies into direct cash transfers is implemented quickly. Here the roll-out of a Universal Identity Number will help ensure payments go to the right people.

The recommendations in this para are full of threat. A quick look at the full Survey itself shows that there is special mention made of the fuel subsidy and the targeted public distribution of foodgrain. If the free marketeer reformists were to have their way, these would both be scrapped overnight, to be replaced by a weekly or monthly dole, transferred electronically and validated by a new national identification number which is in theory supposed to prevent fraud and exclusion. This is dangerous for the poor, because it makes them directly vulnerable to the worst symptoms of profiteering and corruption – already rampant despite safeguards – and because it removes the responsibility from the state for providing good quality and cheap social services and provisions of daily living. In this, the OECD Survey sounds exactly like the IMF.

So tell me, OECD boys and girls, what do you know about guavas and cane?

The OCED report has otherwise welcomed the planned introduction of a nationwide goods and services tax and suggested that in order to keep the overall rate low, the base should be as wide as possible (there go more paisas from the cash transfer to the poor). “Further fiscal consolidation is also called for, making more funds available for private investment” – which means more cutting of the health, education and rural development programmes. “Cutting red tape for businesses and further lowering barriers to trade and investment will help both companies and households. The report also notes that while progress has been made to improve infrastructure, even greater investment in this area is necessary to boost growth.”

The Survey has said that strengthening the financial system and promoting access to financial services is essential for strong and inclusive growth. (We’re quite sick and tired of hearing about ‘inclusive growth’ when the Indian government and its foreign advisers do all they can every single day to prevent it.) The report noted that many Indians still lack access to bank accounts although microfinance is improving opportunities in many communities. “The financial sector proved resilient during the global downturn but there remains scope for greater competition.” Hear, hear.

The Survey has said that education has been given high priority by India’s central and state governments and enrolment continues to grow fast – we call them degree factories for the globalisation mill. The report recommends more effective government regulation and funding. Incentives and professional development opportunities for teachers need to be strengthened while student loans for higher education should be more widely available.

Now I expect the usual round of endorsement, referencing and studious quoting to begin. Within a few months, the recommendations of the OCED India Survey 2011 will assume an oracular hue, never mind the reactionary and anti-poor real nature of its advice. The multilateral lending institutions – the World Bank, the IMF and the Asian Development Bank – will cite the Survey repeatedly. So will state governments in India and the central government. The armoury of those who assault the poor and the marginalised of India has been strengthened by a new weapon – this is the OECD contribution to the people of India.

The Teacup Revolution

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Bom Bahia, Bombay, Mumbai, at its confounding best

This is a light little article, written for the Khaleej Times, on India and its people.

In the early years of Asian globalisation, the cry amongst the investors and business punters was “You can’t do business in Asia without India in your plans”. (They were already putting up factories in China.) Being, as punters usually are, somewhat dim but enthusiastic, these blokes – cunning bankers, makers of third-rate motor cars, purveyors of skin whitening creams, assemblers of consumer trinkets – decided that India was The Next Big Thing and ran thither.

It has been about a decade since all that began. In these 10 years, India has become richer – at least that’s what its government tells Indians, the poor and rich alike – and India is a superpower, at least according to cricketers and Bollywood film producers. It’s also a superpower for manufacturers of disposable nappies, but I don’t want to be impolite.

Going to school in Gujarat

At some point, quite a few Indians who lived in the USA (and other, stranger, parts) decided that it might be a good idea to go home and see what all the fuss was about. Some of them packed up their Dodge minivans and Hoovers, gave the dog away, stopped at duty free on the way in, and looked around for Opportunity. Silicon Valley meanwhile returned to farming turnips and beetroots or whatever it is that happened there before the IT boys took over. Once at home, in the towns and cities of Gujarat and Andhra Pradesh and the online territory of Bangalore, they looked around. And saw dusty roads, grimy health clinics, piles of garbage, lazy policemen, burst water pipes, and lots of poor people. Not much had changed had it?

But it had. And so had their neighbours and their fathers-in-law and so had India’s chambers of commerce and its per capita income. Sure, there was heat and dust and stray dogs, but there was opportunity too. Looking around, they found that some of the world’s biggest and fastest growing IT companies were right where they had last seen a couple of coconut groves. Looking still closer, they found that state government officials had stopped sitting around drinking tea and pretending to push files and actually got some work done. This was remarkable. Rather as remarkable as imagining India could win a cricket world cup. But that too has happened.

The country where three wheels is often better than four

There were flies and mosquitoes, insane political riots and infuriating power cuts. But they found that their cousins and friends and the tea stall owner down the road weren’t used to putting up with it all any more. No, the Indians at home had organised themselves (noisily, chaotically and with great garglings of sweet tea) and Got Things Done. Others put up hospitals, set up education foundations and inspired migrants in slums to start little recycling businesses. Lots of people talked about micro-credit and mobile phone apps, even if they didn’t know what these were all about anyway.

It all started coming together, despite the serial cheats, the bejeweled scamsters, the mustachioed mobsters and the unauctioned cricketers. They built highways, agitated against nuclear power plants, threw old sandals at politicians and invented the Chinese-Jain pizza. Somehow, it held together. A few of the original punters stayed on, having become employees now in Indian-owned and managed companies. People read books written by Indian authors about utterly loony Indian plots a Rushdie would die for. Others turned them into films, or mobile apps, as if there’s a difference.

Sometimes, they thought about the Raj and the chicken tikka revolution. But not often. There was far too much to do.

- Rahul Goswami (is otherwise an agricultural and rural economics researcher – makanaka [at] pobox.com)

Written by makanaka

April 21, 2011 at 20:52

The United Nations sushi-sundae food aid dodge

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The United Nations has shown no spine at all in endorsing the rather childish and distracting new tactic adopted by its own agency, the World Food Programme.

Pointless, ill-advised, juvenile, misleading and an insult to the intelligence of those who want to help solve the hunger problem.

The WFP has launched a website called WeFeedBack which is based on appealing to internet users to “share” their favourite meals by making equivalent donations of what these meals cost to WFP, so that children can be fed by the food aid agency.

The UN News Service, which reflects the outlook of those in the UN who dream up and carry out programmes, makes a great deal out of the “social media platform” aspect of the gimmicky effort.

“In the developed world, life puts tasty food on our plates all the time. French sausage, avocado or chocolate cake – we all have our favorites,” explains the WeFeedBack website.

“If we take just one of these things and give it back, or feed it back, we can help change the lives of hungry school children around the world. WeFeedback brings together individuals like you to do just that. It’s fun, it’s social and it makes a lasting difference.”

This is the sort of thinking that only the fossilised and increasingly insolvent global food aid industry can now resort to. Late last year, in 2010, the World Food Programme had complained about donors not giving it enough money to buy wheat and rice for distribution in regions it regularly supplies.

Instead of agreement at the UN General Assembly that this is state of affairs that cannot be tolerated, the WFP has obviously been left to fend for itself and find innovative ways to raise the money to buy foodgrain. This approach is no more useful than the money spent on the so-called high-profile “ambassadors” (pop singers, footballers, etc) UN agencies seem all to want, which are no more than tawdry public relations manipulation to advertise to the world that its agencies exist.

By turning individual food consumption into a social media sport, the World Food Programme has trivialised its own work.

The UN lost no time in getting the Security Council to come up with an invalid, unrepresentative, illegal and morally reprehensible resolution on setting up a “no fly zone” in Libyan air space, but the UN cannot convene even its committee assigned for the job to meet in between the 65th and 66th sessions of the General Assembly to tackle the question of chronic hunger and the need for continued food aid.

The 65th session of the General Assembly took place last September. There is however a Social, Humanitarian and Cultural Affairs Committee which ought to have paid more attention to this problem. The UN itself says: “Year after year, the General Assembly allocates to its Social, Humanitarian and Cultural Affairs Committee, commonly referred to as the “Third Committee”, agenda items relating to a range of social, humanitarian affairs and human rights issues that affect people all over the world.” It seems to have missed this issue – the feeding of those blighted by globalisation.

The WeFeedBack website and its juvenile appeal to those in the world who have both plentiful food to eat and an internet connection is ludicrous. “So far, one of the most popular ‘Feedback’ items is birthday cake, but participants have also fed back glasses of wine, cappuccinos and Mexican burritos,” says the UN News Service report, as if this is no more than a weekend festival.

In its misjudged attempt to appeal to the socially connected online population, which by default is the youth, primarily of the Northern countries, the UN and the WFP have said not a word about the reason for the conditions they are hoping these servings of sushi, sundaes and pizza will address. The UN agencies must practice honesty and openness with its member states as the only way towards genuine social justice, and waste neither scarce money nor the goodwill of well-meaning folk willing to help a greater cause.

In Dakar, a call to ‘clear away invaders’

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Ringing statements from Bolivian president Evo Morales and former Brazilian president Luiz Inácio Lula da Silva have been made at the World Social Forum 2011. Addressing tens of thousands who marched through Dakar, the Senegalese capital, to mark the start of the World Social Forum 2011, Morales called for a programme of social struggle to build a new world. “There must be awareness and a mobilisation to put an end to capitalism and clear away invaders, neocolonialists and imperialists [...] I support the popular uprisings in Tunisia and in Egypt. These are signs of change.”

Lula told delegates that economic doctrines imposed on the world’s poorest countries no longer have a place in modern societies. “In South America, but above all in the streets of Tunis and Cairo and many other African cities, a new hope is being born. Millions of people are rising up against the poverty to which they are subjected, against the domination of tyrants, against the submission of their countries to the policies of the big powers,” said Lula.

Marching in the streets of Dakar. Photo: Abdullah Vawda/IPS

Marching in the streets of Dakar. Photo: Abdullah Vawda/IPS

In its eleventh year, the Forum remains a space for open and honest debate. Senegalese President Abdoulaye Wade did not hesitate to declare himself a supporter of the market economy which most here reject, and threw down a challenge to participants regarding their engagement with established global institutions such as the United Nations. “If you who are here, if you had supported the idea, then Africa would already be on the Security Council. Since 2000, I have followed your movement and I still – excuse my frankness – ask myself this question: have you succeeded in changing the world at the global level?”

IPS news has reported that this is a challenge participants in the WSF take very seriously. Kenyan social justice activist Onyango Oloo was a key organiser of the 2007 edition of the Forum in Nairobi; he was unable to attend this year, but he suggested that the building of another world is already begun, away from the fleeting attention of the media. The WSF is a place where those builders can meet each other directly. Organisers said 75,000 people from 132 countries attended, to share their experiences of injustice and resistance, to test each others’ analyses and return home newly-inspired.

Eurodad has reported that a new international debt justice campaign has launched at the World Social Forum in Dakar. Several civil society organisations are launching a global campaign for a new international debt court. The campaign, “Defuse the Debt Crisis,” calls upon French President Nicolas Sarkozy (G20 Chair in 2011) and the international community to establish new rules for debt justice. These rules must ensure fair settlement of debt disputes when a country struggles to repay its loans or when the legitimacy of a debt is in question.

Countries all over the globe are experiencing worryingly high levels of sovereign debt, much of which has been caused by reckless private lending which triggered the global financial crisis. Unsustainable and illegitimate debt impedes development and prevents poverty reduction in developing countries. A fair and lasting solution to the debt problem is urgently needed.

European activists on stilts carry a banner reading "For a world without borders" as they walk in a march on the opening day. Photo: Rebecca Blackwell/AP

European activists on stilts carry a banner reading "For a world without borders" as they walk in a march on the opening day. Photo: Rebecca Blackwell/AP

“The European approach to the current debt crisis repeats the errors that helped turn the sovereign debt crisis of Southern countries in the 1980s into what was later called “a lost decade for development,” says Oygunn Brynildsen Policy Officer at Eurodad. “Rather than holding investors responsible for the risks of their investments, public funds are being used at the expense of tax payers to bail-out the private sector,” she added.

However, “there are alternatives to handle such protracted crises in ways which do not put the burden on the poor,” says Nuria Molina, Eurodad Director. “Rather than condemning debtor countries to protracted adjustments, while securing profits from risky investments, governments must put in place fair and transparent debt workout mechanisms based on well-tested insolvency principles.”

The Guardian reported that migration and movements of people are a key theme of this year’s World Social Forum, along with the growing role of the countries of the “south” and the evolving geopolitics of south-south relations. The city’s Cheikh Anta Diop University, which is hosting the forum, has seen its population explode overnight. The expansive campus – if you get lost, allow three-quarters of an hour to find your way – is home to around 80,000 students: a city within a city. The forum brings another 75,000 participants weaving in, out and among the university’s daily crowds.

“The mobilisation here at Dakar is beyond any expectation,” said one of the forum’s organisers on Wednesday. The overwhelming size of the forum shows both the momentum of the claim that “another world is possible” and brings the limitations of the current structure into sharp relief, she adds. More local and regional forums are needed, interjects another organiser, to complement the world edition and deepen the movement against “globalisation under the interests of capital”.

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