Come July, could an African or Asian head the World Bank?

UN Millennium Development Goals 1 to 4

Who will head the World Bank after 2012 June? A global coalition of development activists and non-governmental organisations is calling on the World Bank’s governors to ensure that Bank President Robert Zoellick’s successor is chosen in an “open and merit-based process” that will give borrowing countries a major say in the selection.

In an open letter released shortly after the Bank’s announcement this week that Zoellick will step down at the end of his five-year term in June, some 60 groups and activists from around the world said any candidate should gain the “open support” of at least the majority of World Bank member countries and of the majority of low- and middle-income countries that make up most of its borrowers.

IPS News has reported that the arrangement which currently exists is absurdly called an informal “gentlemen’s agreement” (there are no gentlemen in this matter, now 68 years old, of leading poor countries into irredeemable debt and condemning their citizens to hardship and poverty). This agreement of exploitation, for that is what it is, exists between the USA and the countries of western Europe – specifically Britain, France and Germany – and provides that a national of USA will hold the top position at the World Bank Group, and that a national of Europe will hold the managing directorship of its sister institution, the International Monetary Fund (IMF).

“It’s a World Bank, not a US Bank. It needs the best candidate to get the job with support of wide Bank membership, not just the US,” IPS reported Collins Magalasi as having said. Magalasi is executive director of Afrodad, one of the lead NGOs which released the open letter calling for a change in the way the World Bank Group’s leader is chosen. The coalition includes Oxfam International, Civicus, and the African Forum and Network on Debt and Development (Afrodad).

The open letter has said: “The candidate must gain the open support from at least the majority of World Bank member countries, and from the majority of low and middle-income countries. As the Bank only operates in developing countries, and has most impact in low-income countries, any candidate that was not supported by these countries would seriously lack legitimacy. In addition to encouraging developing countries to nominate their own candidates, the best way to ensure that developing countries play a central role throughout the selection process is for the successful candidate to be required to gain the support of a majority of both voting shares and member countries.”

UN Millennium Development Goals 5 to 8

“This need not require any formal changes to the Bank’s articles of agreement, but could simply be agreed by the Board, to build on the limited proposals agreed in April 2011. To make this work, countries would need to vote independently, not through their constituencies, and declare their support publicly. It is time for the US to publicly announce that it will no longer seek to monopolise the Presidential position.” You can read the full letter at the website of the European Network on Debt and Development (Eurodad).

Bloomberg Businessweek has reported that China has called for the next World Bank chief to be picked based on merit. The next leader should be selected “based on the merit principle and open competition,” Foreign Ministry spokesman Liu Weimin said at a briefing in Beijing. Liu was apparently responding to a question on whether the next head should be from a developing nation. Since according to the US Treasury, the largest foreign holder of US debt is China, which owns about US$1.2 trillion in bills, notes and bonds, that sounds like an ungentle nudge from across the Pacific that it’s time the old order was scrapped.

The World Bank Group is quite top heavy. As its senior management the WB Group has: one president, three managing directors, a chief financial officer, two senior vice presidents, six vice presidents for the World Bank Group’s six operational regions, seventeen vice presidents for the Group’s divisions and departments, one director general. The IFC (International Finance Corporation) has one executive vice president and chief executive officer, nine vice presidents. The MIGA (Multilateral Investment Guarantee Agency) has one executive vice president, one vice president and chief operating officer, five directors.

While from the three managing directors downwards it may look like the WB Group senior management is representative of the variety of countries to which it lends, this is illusory – these people are financiers first and are free-market standard-bearers and privatisation evangelists. At those positions in the World Bank, as in the IMF, there are no nationalities – there is only capitalism.

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Food, climate, conflict – all that caused the Horn of Africa refugee crisis

New arrivals from Somalia waiting to be registered at Dagehaley camp, in Dadaab. Photo: Kate Holt/IRIN

IRIN News has reported that about 1,300 Somalis are arriving at the Dadaab refugee camps in northeast Kenya every day. The help they are seeking – refuge from a severe drought and the effects of years of conflict – is being handed out as fast as possible. But in a camp complex that has already been stretched well beyond its limits, the new arrivals need more assistance than can be provided. The nutritional state of older children, as well as under fives, is of concern, but the local Kenyan population is faring little better.

“The number has skyrocketed,” a registration expert with the UN Refugee Agency, UNHCR, told IRIN. The official said UNHCR had had to hire more employees, who now work in shifts, to accommodate the rush. The three Dadaab refugee camps – Dagahaley, Ifo and Hagadera – were originally meant to cater for 90,000 refugees, but housed at least 380,000 people, according to UNHCR. Despite the overcrowding, the government of Kenya has yet to allow people to move into a fourth camp, known as Ifo II, which stands empty.

“Water systems, latrines and healthcare facilities are ready to use but are standing idle,” Oxfam said in a statement. Oxfam reported that 60,000 new arrivals were living in basic tents outside the camp boundaries, with limited access to clean water or latrines, risking an outbreak of disease. Those living in these informal settlements are some of the worst-off. In the settlements on the outskirts of Dagahaley camp, 17.5 percent of children between six months and almost five years old are severely malnourished, three times the emergency level, according to Caroline Abu-Sada, a research unit coordinator with Médecins Sans Frontières (MSF).

Newly arrived Somali refugees waiting to be registered at Dagahaley camp, Dadaab in Kenya. Photo: Al Jazeera/EPA

The lack of water in the outskirts was a real concern. Refugees are only able to obtain up to three litres of water a day, 80 percent less than they need according to the Sphere Standards, which are already based on emergency situations. Some are only receiving 500ml for drinking, bathing, washing clothes, and everything else. By comparison, in North America and Japan most people use 350l a day, according to the World Water Council. Water is now being trucked to the camp outskirts by MSF and CARE, but there were previously only 48 taps for 20,000 people. Abu-Sada said diarrhoea was already rampant, along with skin rashes and respiratory infections.

More than 11 million people are estimated to be in need of humanitarian aid across the region, a UN News report has said. Almost 500,000 children in Somalia, Ethiopia and Kenya are suffering from imminent, life-threatening severe malnutrition. In addition, over 1.6 million children under the age of five are acutely malnourished, according to UNICEF.

In addition to the thousands of people from Somalia seeking refuge in Ethiopia and Kenya, millions more are living on the brink of extreme poverty and hunger, suffering the consequences of failed rains and the impact of climate change, said the agency. UNICEF has appealed for $31.8 million to ramp up assistance to the Horn of Africa over the next three months, especially for children, who are suffering the brunt of the crisis. It says the most urgent needs include therapeutic feeding, vitamin supplementation, water and sanitation services, child protection measures and immunization.

In Geneva, two UN human rights experts appealed to the global community to take “concerted and urgent” measures to assist the millions who are suffering in the region, warning of large-scale starvation if international intervention is not forthcoming. Shamsul Bari, the Independent Expert on the situation of human rights in Somalia, noted that drastically increasing food prices and continuing conflict and insecurity have caused a huge displacement of the population, with thousands of Somalis fleeing to Ethiopia, Kenya, and Djibouti every day. Bari, who last week visited Somalia and Kenya, said the situation was markedly worse than in March, when he had expressed concerns over the slow response of the humanitarian community to the situation.

The UN Special Rapporteur on the right to food, Olivier De Schutter, said the international community should be prepared for more such droughts. “This crisis looks like a natural calamity, but it is in part manufactured,” De Schutter said, adding that climate change will result in such events being more frequent. He called for, among other measures, emergency food reserves in strategic positions, and better preparedness for drought, for which Governments must be held to account.

“With a rate of child malnutrition above 30 per cent in many regions of these countries, the failure of the international community to act would result in major violations of the right to food,” De Schutter said. “International law imposes on States in a position to help that they do so immediately, where lives are at stake.”

Shokuri Abdullai like most mothers in Bisle feeds her family boiled maize in the Somali region's Shinile zone (Ethiopia). Photo: Jaspreet Kindra/IRIN

Al Jazeera has reported that Kenya has agreed to open a new camp near its Somalia border to cope with the influx of refugees fleeing the region’s worst drought in 60 years. The lfo II camp in Dabaab will open its doors to 80,000 refugees within 10 days, the Kenyan government said. Prime Minister Raila Odinga agreed to the opening to the new camp, after visiting Dadaab’s three existing camps where an estimated 380,000 refugees are now living at facilities intended to cope with a population of 90,000 people.

A spokesman for the charity Save the Children, said “more children have died in Dadaab in the first four months of the year than all of last year”. Many Somali refugees at the camp have travelled through harsh conditions with little food or water, and no humanitarian assistance, often abandoning members of their family who have died or are so weak to travel. Al Jazeera’s Azad Essa, who reported from the Dabaab camp, said, “Over the past month, around 20,000 have made their way to Dadaab, many of them through similar means”.

Dadaab’s existing camps were set up in 1991 to host refugees fleeing war in Somalia. Between 40,000 and 60,000 are thought to be living outside the boundaries of the complex – existing as refugees beyond the current scope and control of the UN. Somalis have been fleeing from war for years now, but the drought, affecting 12 million people across the Horn of Africa, has brought the threat of a new humanitarian catastrophe to the region, with many people also seeking refuge in Ethiopia. Al Jazeera has more on the refugee crisis in the Horn of Africa here.

The U.N. Office for the Coordination of Humanitarian Affairs  (OCHA) has provided a ‘snapshot’ of the humanitarian crisis in the Horn of Africa country:
* 2.85 million Somalis require urgent aid – that’s one in three people
* At least one in three children are malnourished in parts of southern Somalia
* More than 460 Somali children have died in nutrition centres in Somalia between January and May this year
* Malnutrition rates among new arrivals in refugee camps in Ethiopia and Kenya range between 30 and 40 percent
* As of late June, 60,200 Somalis were registered in Kenya this year — a more than 100 percent increase compared with the same period last year
* Life expectancy is 50.4 years, according to the U.N. Development Programme (UNDP)
* Women dying in childbirth: 1,000 per 100,000 live births reported, according to UNICEF
* One in 10 Somali children dies before their first birthday
* Primary school enrolment rate is 23 percent
* Average HIV prevalence level estimated at 0.5 percent of the population aged 15 to 49
* Percentage of people with access to safe, clean water: 29 percent

(Sources: OCHA, UNICEF, UNDP)

It is not just Somalis who are suffering, Euronews has reported. Famine is affecting all countries in the Horn of Africa. Now 11 million people need help to survive the food shortages. In Habaswein in the far north of Kenya there has been no rain for a year. Many animals have died. Others have been taken further north in search of water. Only women, children and the elderly remain in the village.

Like many others, Fatuma Ahmed depends on rations of maize, beans and oil provided by aid agencies and the government. She said: “I have no husband. I’m raising my children alone. We had some animals but they’ve all died. Now we’re depending on aid from charities. What I’m cooking now is the only meal my family will eat today.” In the village of Fini, farmers try to move a dying cow into the shade. The animal will only last a few days. This is not the first time this area has been hit by drought, but according to villagers like Mori Omar, it has never been this bad.

“I’ve never experienced anything like this. I’m 56 years old, but I look more like 80 because of many years of not having enough food. During the droughts, there’s no meat or milk,” she said. There is a growing consensus that climate change is to blame for the driest period in 60 years. The UN says droughts are becoming more frequent – before they used to be every five or 10 years, now it is every two.

IRIN News has a report, ‘Somalis living from drought to drought’, on the perilous state of food availability in Bisle, the Somali region. Every day, 500g of boiled wheat is divided up between two adults, four children, a calf, a goat and a donkey in the Farah household. It is the only food they have had after rains failed for the past two seasons. The 15kg sack of wheat is provided to about 1,200 people in the Bisle area, which has four settlements, under the government-run Productive Safety Net Programme (PSNP) as payment for work, such as digging water holes.

“It is boiled wheat for breakfast and for the main meal – we don’t have anything else – no milk, no meat, no vegetables, no oil,” says Maria Farah, the mother. Not surprisingly, two of her children are severely malnourished. The calf and goat that share their “ari” – a collapsible egg-shaped hut made of sticks and covered with sheeting – are emaciated. It is too hot for them outside, in temperatures that soar beyond 40 degrees Celsius. There is no water in their settlement, about 54km north of Dire Dawa town in the Somali region, one of the worst hit by drought in Ethiopia. More than a million people have been affected.

The IMF, its directeur général, and a New York hotel maid

Friday afternoon, South Asia

"Do you really think I've nothing better to do?"

The business zine ‘Emerging Markets’ has reported that French finance minister Christine Lagarde “has emerged as the frontrunner to succeed Dominique Strauss-Kahn as IMF chief as the chances of former Turkish politician Kemal Dervis receded”. Apparently, there were hopes that Kemal Dervis would become the first emerging market politician to head the IMF, but these have faded Lagarde emerged as frontrunner to succeed DSK.

The zine has said that “senior policy officials” consulted by it said they were backing the French finance minister (pic left) in the wake of Strauss-Kahn’s dramatic resignation. A key ally of former Turkish economy minister Kemal Dervis, a leading contender for the role, acknowledged that his chances of clinching the top job had receded.

Asked whether Dervis woud become managing director Homi Kharas, a deputy to the former Turkish finance minister now at the Brookings Institution in Washington, told Emerging Markets: “Unfortunately I think it’s unlikely.” He said Lagarde’s appointment could undermine the IMF’s legitimacy if her candidacy is secured solely through a political deal among rich nations. “Major countries at the end of the day are prepared to forgo the principle of technocratic appointments for the short term expediency of having a politically trusted friend and that seems to be the way that the world is currently governed.”

The result will be a revolt against the Fund by developing countries, he added. “What we will see from the emerging nations is that they will vote with their feet. “Developing nations can make [international financial institutions] less relevant as global institutions and restrict them to being essentially institutions that play in the arena of the spheres of influence of the rich countries. That is what is happening more and more.”

Wednesday evening, South Asia

The IMF is obviously very slow to learn, or chooses not to, or has jettisoned Strauss-Kahn. Following its first bland, utterly non-committal and quite unconcerned statement about l’affaire DSK, it has come out with a second which, if possible, bests the first at idiocy in the face of a massive loss of moral face.

Here is the statement:

The IMF logo seen during a news conference in Bucharest, March 2009. Photo: Reuters/Bogdan Cristel/Files

“The following can be attributed to William Murray, an IMF spokesman, in response to questions regarding contact with the Managing Director and on speculation in media about his status: ‘We have not had contact with the Managing Director since his arrest in New York. Obviously, it will be important to be in contact with him in due course. We are aware of widespread speculation about the Managing Director’s status. We have no comment on this speculation, other than to note, as we did earlier this week, that the Executive Board was briefed informally on developments regarding his arrest in New York. We continue to monitor developments. Meanwhile, Mr. John Lipsky remains acting Managing Director, and the Fund continues its normal work’.”

This sounds a lot like the IMF is saying – “well it’s just one of those things, let’s just say not very much out of the ordinary is happening and let’s assure you that we’re still doing what we do best, which is wreck the lives of people in developing countries”.

Under Francois Mitterrand, Strauss-Kahn served as a minister, then became a corporate lobbyist in the 1990s. As finance minister in the 1997-2002 Jospin “Plural Left” government, Strauss-Kahn privatized several public firms—France Télécom, Crédit Lyonnais bank, and defense firm Thomson-CSF. After resigning as minister in 1999 in a bribery scandal, he remained a major figure inside the PS and corporate circles, taking the IMF post after being nominated by Sarkozy in 2007.

As IMF chief, he has overseen deep social cuts impoverishing workers in many indebted countries—Greece, Ireland, Latvia, Hungary, Romania, and Pakistan—in exchange for IMF loans. He recently oversaw financial negotiations with the military dictatorship in Egypt, as it tries to combat the resistance of the working class following the departure of Hosni Mubarak.

Zhu Min, Group Executive Vice-President, Bank of China, speaks during a session at the World Economic Forum Annual Meeting of the New Champions in Tianjin, China 28 September 2008. Photo: World Economic Forum

The ‘Letter from China’ blog in The New Yorker points to some of the turmoil over leadership of the IMF, and what is slowly being seen as Asian pressure over what has so far been Western dominance of the Fund and Bank senior positions.

As pressure builds on Strauss-Kahn, said the blog, today’s Huanqiu Shibao is decidedly less cautious: “If a Chinese person takes the post”—of managing director—“it will greatly promote economic exchange between China—the country with the largest trade volume and holdings of foreign reserves—and the international community.” Another Huanqiu article referred to speculation in the Western press that China’s top official at the IMF, Zhu Min, a Johns Hopkins-and-Princeton-trained economist, is among the oft-mentioned candidates. The story concluded gloomily that Western reports generally see Zhu as insufficiently experienced, and likely to reach only a deputy managing director “this time, in part because “Europe and America will oppose the appointment of a Chinese person to lead the IMF.”

Monday evening, South Asia

Dominique Strauss-Kahn, head of the International Monetary Fund, is lead from a police station Sunday, May 15, 2011 in New York where he was being held. Photo: AP

In Europe and in the multilateral financial institutions, positions are cautiously being taken over the Strauss-Kahn case. So far, the Euromedia has focused a great deal on the effect l’affaire DSK is having on the French presidential election and the challenge to Sarkozy. But what about the IMF and World Bank? Silence. What about the men and women who run these enormously powerful and influential organisations – what do they have to say about this case and its reflection on their collective values? More silence.

We have heard from The Economist, which has long been a staunch ally of the Fund and the Bank. “Whatever the fall-out on French politics, Mr Strauss-Kahn’s arrest has left the IMF reeling. One insider called it a ‘disaster’,” the commentary noted. “Although he had been expected to leave within a couple of months, Mr Strauss-Kahn, unless quickly exonerated, will now presumably be forced out far sooner. That leaves the fund without a political heavyweight at the top in the midst of important negotiations with European policymakers over Greece’s debt crisis.”

What is noteworthy is the ways in which these institutions are discussed by the biggies of global and international economics. Only 10 days ago, Joseph E Stiglitz is University Professor at Columbia University, a Nobel laureate in Economics, and the author of ‘Freefall: Free Markets and the Sinking of the Global Economy’, had this to say about the IMF and DSK.

“For progressives, these abysmal facts [growing inequality, recession, unemployment] are part of the standard litany of frustration and justified outrage,” wrote Stiglitz. “What is new is that the IMF has joined the chorus. As Strauss-Kahn concluded in his speech to the Brookings Institution shortly before the Fund’s recent meeting: ‘Ultimately, employment and equity are building blocks of economic stability and prosperity, of political stability and peace. This goes to the heart of the IMF’s mandate. It must be placed at the heart of the policy agenda.’ Strauss-Kahn is proving himself a sagacious leader of the IMF. We can only hope that governments and financial markets heed his words.”

I really wonder what Prof Stiglitz thinks of his encomiums now. Reality outside the cozy models of macroeconomics can be startlingly, starkly different.

Sunday evening, South Asia

Le Nouvel Observateur's website on Sunday was entirely Strauss-Kahn.

The Sunday lurched on about L’affaire DSK and in my view the most confused reactions have come from the media in France. They seem confused about what they ought to feel and say. There are some responses concerning the blow to the honour and prestige of France dealt by the sordid allegations, but there is also a sense of bemoaning the end of a challenger to Sarkozy, and quite a few mutterings that this is a dreadful plot to trap Strauss-Kahn.

Here is a selection of the reaction and early views on the impact of L’affaire DSK.

Euronews has reported that lawyers for Dominique Strauss-Kahn, the head of the International Monetary Fund, said on Sunday that their client will plead not guilty to accusations of trying to rape a maid at a New York hotel. “A spokesman for the New York Police Department said Strauss-Kahn faces charges of a criminal sexual act, attempted rape and unlawful imprisonment. The IMF chief does not have diplomatic immunity and was set to appear in court later on Sunday.”

Business Insider has quite bluntly said that ‘IMF Throws Dominique Strauss-Kahn Under The Bus’. “The IMF is not exactly standing up for the man,” they wrote, referring to the bland and shifty IMF statement issued today. “The IMF has already had to investigate and apologize for one Strauss-Kahn sex scandal (an affair with a subordinate). Strauss-Kahn survived that one, after apologizing publicly to the IMF and his wife. His surviving this one, at least with his job intact, seems unlikely.”

The New York Times has pronounced in a headline, ‘Arrest Throws French Politics Into Disarray’. This is hardly so. What has thrown France and its suffering workers into disarray is not such conduct, but the imperial ambitions of Sarkozy in Africa and his government’s ramshackle social spending at home. “For months, France has been buzzing with speculation that Dominique Strauss-Kahn, the popular chief of the International Monetary Fund, would quit his job in Washington to take on President Nicolas Sarkozy in next year’s presidential elections,” the NYT said. “On Sunday, French politicians and media met news of his arrest in New York for alleged sexual aggression with stunned disbelief and expressions of national humiliation. The incident threw Mr. Strauss-Kahn’s political party, the Socialists, into confusion and set the stage for a new political calculus that could allow the National Front, the far-right party led by its founder’s daughter, Marine Le Pen, to become a more dominant force during the election campaign.”

The Guardian has got to the point. “The allegations threaten to severely damage the standing of the IMF, where Strauss-Kahn was leading the response to the global financial crisis.” The newspaper reported that Strauss-Kahn had been on his way to Europe to discuss the worsening European debt crisis. A meeting in Berlin with Angela Merkel scheduled for Sunday has been cancelled. He was also scheduled to meet European financial ministers on Monday and Tuesday and was to have discussed how best to tackle Greece’s debt crisis and finalise Portugal’s €78bn bailout package. The British newspaper also provided the information that the Sofitel hotel in New York where Strauss-Kahn was staying is in the heart of the theatre district, and he had a US$3,000 (£1,850) a night suite.

In Paris, France Soir asked in disbelief: “Accusé d’agression sexuelle, DSK est-il victime d’un complot? DSK est-il victime d’un complot, d’une manipulation? Quelques heures après le coup de tonnerre et l’annonce de l’arrestation du patron du FMI, les déclarations en ce sens sont de plus en plus nombreuses.” Melodrama apart, what this means is that France Soir has said that Strauss-Kahn could well be the ‘victim of a conspiracy’ and the ‘target of manipulation’.

A more bizarre response has come from Liberation, which usually seems to have its finger on the pulse of things. “Pour 2012, DSK semblait le mieux armé pour répondre au désarroi des Français, épuisés par la crise et désorientés par le règne foutraque de Sarkozy: l’expérience internationale, la crédibilité de l’économiste, la fibre sociale, le savoir-faire d’un négociateur hors pair leur laissaient penser qu’il saurait mieux que tout autre défendre leurs intérêts et ceux de la France.”

Roughly translated, this means: “For 2012, DSK seemed best equipped to respond to the distress of the French, who are exhausted by the financial and social crisis and disoriented in the reign of Sarkozy. With his international experience, the credibility of being an economist, his knowledge of the social fabric and negotiating skills left them thinking that he would defend their interests and those of France.” What exactly is Liberation talking about? Perhaps it’s not a good idea to get their writers to consider anything serious on a Sunday morning.

The New York Daily News on the IMF head

[Earlier post] It’s too early to tell the whys and wherefores, but here’s a small selection of reportage about the astounding Strauss-Kahn incident. The French media have lots to say too, since the IMF head is/was expected to run for president of France.

Update: The IMF has released a very short statement on the bizarre affair. Here is the text from the IMF website:

Ms. Caroline Atkinson, Director of External Relations at the International Monetary Fund (IMF), issued the following statement today: “IMF Managing Director Strauss-Kahn was arrested in New York City. Mr. Strauss-Kahn has retained legal counsel, and the IMF has no comment on the case; all inquiries will be referred to his personal lawyer and to the local authorities. The IMF remains fully functioning and operational.”

The Boston Globe – The head of the International Monetary Fund was taken into custody and accused of a sexual assault yesterday, just before he was to fly to Paris from John F. Kennedy International Airport, authorities said. Dominique Strauss-Kahn was accused of attacking a maid earlier in the day at a Times Square hotel, authorities said.

WNYC News Blog – NYPD Deputy Commissioner Paul Browne confirmed that Strauss-Kahn, the 62-year-old managing director of the International Monetary Fund, was being questioned by detectives from Manhattan’s Special Victims unit about an alleged sexual assault said to have taken place around 1 p.m. Saturday at the Sofitel Hotel. “The 32-year-old maid reported that Strauss-Kahn emerged from the bathroom naked and sexually assaulted her,” said Browne.

Update: Al Jazeera has carried a brief and generally unflattering profile of the IMF head. It has called him an architect of France’s economic recovery in the late 1990s, Strauss-Kahn, popularly known in France as “DSK”, served in a Socialist government as finance minister between 1997 and 1999. He cut the public deficit to qualify France for the euro and took steps that led to the privatisation of some state firms.

The profile has said that Strauss-Kahn, 62, was forced to resign from Socialist prime minister Lionel Jospin’s government in 1999, after he was caught up in a corruption scandal, but a court later cleared him. A former professor of economics at the Institut d’Etudes Politiques de Paris, Strauss-Kahn has come in for criticism over his luxurious style, seen by some as inappropriate for someone who wants to become the leader of the French left. Despite being based in Washington, he has continued to spend a lot of time in France, and the New York Post newspaper reported that he had a deal with Air France to get on any flight. New York police pulled him off a Paris-bound flight on Sunday night.

Some early reactions from the press in France:

Dominique Strauss-Kahn, popularly known in France as 'DSK', served in a Socialist government as finance minister between 1997 and 1999. He cut the public deficit to qualify France for the euro and took steps that led to the privatisation of some state firms. Photo: Al Jazeera/AFP

Le Parisien – En Direct.  DSK arrêté à New York pour “tentative de viol” présumée – Dominique Strauss-Kahn était venu au siège du Parisien-Aujourd’hui en France pour y rencontrer des lecteurs. Le patron du FMI et favori des sondages pour la présidentielle 2012 en France.

Le Monde – Le directeur général du Fonds monétaire international (FMI), Dominique Strauss-Kahn, a été arrêté samedi 14 mai à l’aéroport JFK de New York et placé en garde à vue pour une agression sexuelle présumée dans un hôtel de la ville.

RTL.fr – Le mot utilisé et qui fait parler tout Internet est “sodomy”, qui signifie avant tout “agression sexuelle”. Le directeur général du FMI, Dominique Strauss-Kahn, 62 ans, a été placé en garde à vue samedi à l’aéroport JFK, à New York, où il est interrogé.

nouvelobs.com – Le directeur général de l’institution avait fait l’objet d’une enquête concernant une liaison qu’il avait eu avec une subordonnée. Le directeur général du FMI Dominique Strauss-Kahn, arrêté samedi à New York suite à des accusations d’agression sexuelle.

Le Monde – L’arrestation samedi 14 mai à New York de Dominique Strauss-Kahn, accusé d’agression sexuelle, pourrait donner un coup d’arrêt à la potentielle candidature à la primaire socialiste pour la présidentielle de 2012 du directeur général du FMI.

It looks very like prescience for, on 6 April, Bretton Woods Project published an article titled, ‘Heading for the right choice? A professional approach to selecting the IMF boss’. This said: “In 2009, the IMF agreed to ‘adopt an open, merit-based and transparent process for the selection of IMF management’. It was a commitment that was long overdue. The informal ‘gentlemen’s agreement’ made at the end of World War II that European governments could select the head of the IMF so long as the US got to choose the World Bank boss had long been regarded as outdated and illegitimate.”

The impression that the rich governments which have run the IMF have dragged their heels on this enormously important issue is hard to avoid. “It matters who the head of the IMF is, and it matters how they are chosen. It matters for the legitimacy of an organisation that, through the stringent conditions often attached to its loans, has a powerful hand in economic policy making – and hence politics – in many countries, particularly poorer ones.”

I am sure that those who have long been calling for IMF reform will be wondering about this week-end’s events concerning Strauss-Kahn. They are: ActionAid, Afrodad, Bond, Bretton Woods Project, Cafod, CRBM, Christian Aid, CIDSE, 11.11.11. Halifax Initiative, Eurodad, Jubilee Debt Campaign, Forum Syd, New Rules for Global Finance, The Norwegian Forum for Environment and Development, Oxfam, The Social Justice Committee of Montreal, SLUG, WDM, TWN and Weed.

Pakistan floods, six months later

A young girl in Azimabad waits at a flour distribution centre. After the floods, she returned with other residents of her village to discover that entire walls of houses had been washed away. Photo: Al Jazeera/Islamic Relief

AlertNet has reported that six months after the rains and disastrous floods in Pakistan, hundreds of thousands remain in camps and thousands are living in tents beside their destroyed homes. Sub-zero winter temperatures have increased the incidence of chest infections including influenza and pneumonia, with over 200,000 cases reported in the second week of January alone. In the south, swathes of land – both homesteads and agricultural – remain under contaminated water and there are concerns that already worrying pre-flood malnutrition rates have risen.

The crisis in Pakistan is far from over and could get worse, warned Oxfam, the international aid agency and AlertNet partner Oxfam. In a report, ‘Six months into the floods’ the agency warned that millions of people were still in dire need and that the situation could deteriorate further. The report [get pdf here] says that although the aid effort has reached millions, it has struggled to match the immense scale of human need. Oxfam says that although Pakistan’s floods are the biggest emergency of recent times with more than 18 million people affected, the funding for the response has been woefully slow. The UN appeal for $2bn to rebuild Pakistan remains only 56 percent funded.

A girl collects contaminated water from a well in Sabjuzat, Punjab. Agricultural land around Sabjuzat was damaged by the floodwater. Crops like cotton were affected by rising salt levels in the soil. Photo: Al Jazeera/Islamic Relief

Neva Khan, head of Oxfam in Pakistan, said: “Six months on millions of people are still facing flood water, shivering in temporary shelters and struggling to find food. Oxfam is currently helping nearly 1.9 million people – one of our biggest programmes worldwide – but this is dwarfed by the number of people who are in need. The aid community has done a tremendous amount – but given the immense scale of this disaster we have only scratched the surface of human need.” Oxfam is urging the government of Pakistan to extend the emergency period until peoples’ needs are met. The Pakistan government is due to stop emergency relief operations in most areas from 31st January 2011, but Oxfam warned that this could put at risk large numbers of people who still need assistance.

In a related report, AlertNet has emphasised a continuing concern of the International Committee of the Red Cross – the persistent lack of security which affects people. Those displaced by the fighting in Khyber Pakhtunkhwa (formerly the North-West Frontier Province) and the Federally Administered Tribal Areas, including those who have commenced the process of returning to their homes in Orakzai Agency and South Waziristan, are still in need of assistance.

A young boy named Abbas visits the river that brought destruction to his home in Muslimabad, Nowshera. Photo: Al Jazeera/Islamic Relief

In addition to bringing aid to flood victims, the ICRC has provided more than two million one-month food rations over the past 10 months for people displaced by fighting and has also vigorously engaged in many other humanitarian activities. “We have been doing more than merely providing food aid,” said Pascal Cuttat, the head of the ICRC delegation in Islamabad. “The ICRC surgical hospital for weapon-wounded patients in Peshawar has been operating at close to full capacity for several months. In 2010 it admitted more than 1,000 patients and performed more than 3,800 surgical procedures.” Patients with serious weapon-related injuries are frequently referred to the hospital, which is staffed by highly experienced Pakistani and international surgeons.

Nearly six months after monsoon rains caused severe flooding across much of the country, people are trying to rebuild their shattered lives.

As the floods receded in October, a Quran remained open in a Punjab mosque that had been inundated by water. Photo: Al Jazeera/Islamic Relief

United Nations Office for the Coordination of Humanitarian Affairs (OCHA), Pakistan flood situation map, 2011 January 25

In parts of the province of Sindh, progress is painfully slow. Tens of thousands of northern Sindh residents live in a squalid, watery wasteland where stagnant floodwaters still covering fields are a serious health concern and make subsistence cropping impossible. ICRC staff from Jacobabad, working together with the Pakistan Red Crescent, have given one-month food rations to nearly 280,000 people in the province, where the ICRC will continue to provide relief for the foreseeable future.

The Oxfam report, ‘Six months into the floods’, commented: “The huge floods that began in July 2010 have been unprecedented. The people of Pakistan have shown resilience, strength and generosity of spirit against remarkable challenges. Now more than ever, the needs of the people must be put at the heart of the recovery.

“Building on the current humanitarian response, a nationally-led, pro-poor reconstruction and development plan must lead the way. By resetting priorities to tackle underlying inequities that keep so many people poor and vulnerable, the disaster can be turned into a transformative moment for Pakistan. It is time to get down to business: steering the trajectory of Pakistan towards sustainable, comprehensive pro-poor development and growth.”

Why drought and hunger in Africa spells opportunity for global agri-tech

Climate change is leading to more intense drought conditions in Africa. Small and marginal farmers, pastoralists and nomadic communities are the most vulnerable and the hardest hit. Already. aid agencies have warned that 10 million people are already facing severe food shortages, particularly in the landlocked countries of Chad and Niger, after a drought led to the failure of last year’s crops. As many as 400,000 children are at risk of dying from starvation in Niger alone, according to Save the Children.

The Independent of Britain has reported that unusually heavy rains have washed away this year’s crops and killed cattle in a region dependent on subsistence agriculture. Organisations including Oxfam and Save the Children say that the slow international response to the emergency means that only 40 per cent of those affected are receiving food aid. As many as four out of five children require treatment for malnutrition in clinics.

Against this grim new news, the global agri-technology networks are readying plans to use possible food shortages to push new structures of seed, funding and conditions onto countries looking for quick fix solutions. One such programme ia the Comprehensive Africa Agriculture Development Programme (CAADP) which has announced that it received a major boost as several countries have begun drawing on funds from a US$22 billion pledge made by the G8.

Under CAADP, African governments are committed to increase their national budget expenditure on agriculture to at least 10 percent. The Programme, agreed by heads of state at the 2003 summit of the African Union, expects a six percent growth rate in agriculture every year. What part of this growth will meet the needs of the drought-hit people in Chad and Niger is not discussed.

Close behind is the International Maize and Wheat Improvement Center (known by its Spanish acronym CIMMYT, one of the CGIAR centres) which has used the alarming food situation news as a prop on which to announce a study which it says “finds widespread adoption of recently developed drought-tolerant varieties of maize could boost harvests in 13 African countries by 10 to 34 percent and generate up to US$1.5 billion in benefits for producers and consumers“. Who will these producers and consumers be?

The study was conducted as part of the Drought Tolerant Maize for Africa Initiative (DTMA) implemented by CIMMYT and IITA with funding from the Bill & Melinda Gates Foundation and the Howard G. Buffett Foundation. CIMMYT and IITA have said they “worked with national agriculture research centers in Africa to develop over 50 new maize varieties that in drought conditions can produce yields that are 20 to 50 percent higher than existing varieties”. There is no mention of Africa’s immense wealth of traditional cereals or the communities that have guarded and used old growing knowledge in difficult times.

Finally, from August 30 to September 4, Namibia hosted the annual Food, Agriculture and Natural Resources Policy Analysis Network (FANRPAN) Regional Food Security Policy Dialogue, where over 200 policymakers, farmers, agricultural product dealers, scientists and non-governmental organisations from across Africa and the world gathered “to address African priorities on climate change and its impacts on food security, agricultural development and natural resource management”.

The tone and tenor is astonishingly upbeat, especially considering the dreadful food situation and climate change news that’s now coming out daily from central, eastern and north Africa: “Increasing the collaboration between public and private sector organisations can also help build infrastructure, secure better access to natural resources, improve the distribution of agricultural inputs and services, and share best practices. The Farming First coalition is a successful example of farmers, scientists, engineers, industry and agricultural development organisations coming together to push for improved agricultural policies which benefit farmers while safeguarding natural resources over the long term.”

FANRPAN has cited two reports by consulting firm McKinsey and Company which have (1) estimated that Africa produced only 10 percent of the world’s crops despite representing a quarter of land under cultivation and (2) noted that 60 percent of the world’s uncultivated arable land lies in Africa with the potential for African yields to grow in value more than three-fold by the year 2030, from US$280 billion today to US$880 billion.

Those extraordinarily large sums may explain why FANRPAN is currently working in partnership with the Rockefeller Foundation “to improve food security throughout sub-Saharan Africa by promoting the understanding of climate change science and its integration into policy development and research agendas”. FANRPAN said it is also working with the International Food Policy Research Institute (IFPRI) – a study cell based in Washington, USA, whose research objectives have tended towards international agricultural trade in recent years. A recent collaboration is called ‘Strategies for Adapting to Climate Change in Rural sub-Saharan Africa: Targeting the Most Vulnerable’ which says it recognises the interrelated impact of climate change on household poverty, hunger and food security.

No doubt, but these high-minded statements of objectives come bundled with some decidedly commercial conditions. As IPS news reports, there are conditions attached to how countries will be accessing CAADP funds. Countries will need to have gone through the CAADP process, which includes designing a “national investment plan” which contains detailed and fully-costed programmes and signing a “CAADP compact”. This is nothing but an agreement between the government, regional representatives and “development partners” for “a focused implementation of the programme”. Moreover, the investment plans will have to undergo “an independent technical review” and the plan should also “have been tabled before a high-level CAADP business meeting” before funds are allocated. Which simply means that there are only so many ways the money can move.

For all these noble programmes, the countries in their sights are: Angola, Benin, Ethiopia, Ghana, Kenya, Malawi, Mali, Mozambique, Nigeria, Tanzania, Uganda, Zambia and Zimbabwe. The aid agencies on the ground are warning again what they have said last year, the year before, five years ago, a decade ago. “After six months without proper nutrition, these children have little resistance to disease,” said Severine Courtiol, Save the Children’s Niger manager. “There is little children can do to avoid coming into contact with this contaminated, disease-ridden floodwater. That’s why it’s critical we make sure they get enough food so they are strong enough to fight off and recover from sickness.”

Robert Bailey, Oxfam’s west Africa campaigns manager, said that some food was available in marketplaces in Niger, but was too expensive for ordinary households to afford. As a result, many were reduced to eating leaves and berries. Chad and parts of Mali were also affected, he added. “The international donor response has been too little too late. We estimate that 7.9 million people are affected by food shortages in Niger, with only 40 per cent receiving international aid. The other 60 per cent are dependent on the government and NGOs [non-governmental organisations]. But the government has no food.”

The global water trade, by ship from Alaska to India

Niger: Men draw water from a deep well in Zinder. They must make tough decisions as to how to divide the scarce resource between cattle, people and crops. Photo: Anne Isabelle Leclercq/IRIN

The ecological crimes committed in the name of trade and for the benefit of the ‘market’ grow in outrageousness. The latest example of utter irresponsibility, both regulatory and environmental, comes from a company headquartered in the state of Texas, USA, which plans to ship water from Alaska, USA, all the way across the Pacific Ocean, to India, where it plans to set up what it calls its ‘global water hub’.

The alert came on the Triple Pundit site, which quickly explained that the Texan company, S2C Global Systems, plans to ship 11.35 billion litres of water every year from the Blue Lake Reservoir in Sitka, Alaska to the west coast of India and other Asian countries. From there, S2C Global Systems plans to sell the water via “smaller ships that can deliver to shallower ports, like Umm Qasr in Iraq”. Do you smell the hand of US defence contractors like Halliburton here? S2C said the project is expected to begin moving water within six to eight months.

There are a number of obvious questions here. How has a Texan company gained conttrol of an entire lake in Alaska, which is a common property resource? How have the communities and settlements there in Alaska permitted this, or have they? How can US environmental regulation – the EPA for example – permit such commercial exploitation? Who is funding this obscene project – India may be a way-station for S2C now, but the company categorically says India is going to be an important market for its water. But at what cost to Alaska and to India?

S2C says it will sell the water in “20-foot containers with flexi-tanks suitable for pharmaceutical/high tech manufacturing and packaged water (18.9 and 10L) for the consumer markets anywhere containers are delivered in south and west Asia from India.” In a statement dated 07 July 2010, the company said that for “security reasons” the Indian port which is to serve as its “world water hub” will not be disclosed. It will “include a berth for a Suezmax vessel (156,000 cubic meters/41Million USG), an offloading system to a dedicated tank farm and a distribution complex for packaged water. Within 18 months after that we will be able to switch to a very large class vessel (302,833 cubic meters/80 Million USG), as both the ship and the berth for her will be completed within this time frame. Contracts for the distribution hub and ships are being finalised.”

Nepal: In some places, children have to walk more than five hours to fetch water. Photo: Naresh Newar/IRIN

The company says: “India itself provides a particularly significant growth market for the packaged waters with a current population of 1.15 billion people, an emerging middle class and an increasing clean water shortage. Sales efforts throughout south and west Asia will continue with travels planned immediately through the region.”

Rod Bartlett, managing partner of Alaska Resource Management and President of S2C Global Systems, USA, is quoted in the statement as saying: “S2C Global has an exciting future in India and the region. After recently spending time in India meeting port authorities and potential distributors, our vision to distribute water globally became real. We fully expect the India World Water Hub to fulfill our minimum expectations of a half a billion gallons sold annually”.

Export Development Canada (EDC), Canada’s export credit agency, announced in March 2010 up to US$10 million in equity commitments to XPV Water Fund Limited Partnership, a venture capital fund focused on investing in the water sector. The press release described the water sector as an “area of significant growth potential for Canada”.

I can’t imagine this profiteering being part of a ‘growth’ strategy that the average Canadian would subscribe to. Meanwhile, what are conditions in countries which companies like S2C say are its world water market?

In India, figures from the Ministry of Rural Development show that the country had enough drinking water for its people in 1951 at 5,177 cubic metres per person per year. But by 2000 India had become a water-deficient country. In 2003, the country had a 25 per cent deficit, at a rate of 1,500 cubic metres per person per year. The deficit is projected to rise to 33 per cent by 2025, unless measures are taken to resolve it.

In Liberia, three out of four Liberians have no access to safe drinking water and six out of seven cannot access sanitation facilities, such as toilets, according to Oxfam. A further US$93.5 million is needed to boost clean water access to 50 percent of all Liberians; and to improve access to toilets to 33 percent – goals set out in the government’s 2008-2011 poverty reduction strategy.

Chad: Chadians receive US$3 in water aid per capita annually. Photo: WaterAid

In Iraq, there is an acute shortage of water nationwide and a collapsed economy, which makes it very difficult for farmers to do other work. Tribal sheikh Ali Ismael al-Zubaidi from Diwaniya Governorate, about 200 km south of Baghdad, said in an IRIN report he had been having “tough negotiations” over water allocations with another tribe that lives upstream from his. “We have daily problems with water. They are siphoning water with huge electric water pumps and leave only drops for us. Government officials can’t control the regulation of irrigation and stop those who violate their regulations either because of corruption or because they fear for their lives. So we have to solve this issue ourselves.”

In Nepal, according to government statistics, more than 4.4 million people do not have regular access to safe drinking water in rural and urban areas, be it via piped water, wells, rainwater or bottled water. Public health concerns are increasing as a result. Already, more than 10,500 children die before their fifth birthday from diarrhoea, mainly due to inadequate access to safe drinking water, sanitation and hygiene, according to WaterAid. More than 80 percent of diseases are the result of unsafe drinking water and poor sanitation, according to its 2009 report, ‘End Water Poverty in Nepal’.

In 2000 the world pledged that half the 2.6 billion people without safe drinking water and basic sanitation would have access to these basic facilities by 2015, but poor countries will need US$18.4 billion more a year to reach this Millennium Development Goal (MDG), which at this rate will only be met in 2200. In 1997, 8% of overall development aid went to water and sanitation; in 2008 this dropped to just 5%-less than commitments for health, education, transport, energy and agriculture, according to the Global Annual Assessment of Sanitation and Drinking Water (GLAAS) report by the UN Children’s Fund (UNICEF) and the World Health Organization (WHO). Moreover, the bulk of this global aid went to middle-income countries, with low-income countries receiving just 42%, said WaterAid, an international NGO working to provide access to clean water, sanitation and health education.