Wednesday, 30 July 2014

This time for Africa and the Global South- an intro into new aid and intermediate technology

As Shakira said four years ago "People are raising their expectations go on and feed them this is your moment no hesitation" The whole continent was bustling with World Cup fever and expectations were indeed raised, but what happened to Africa? Well the short answer is nothing much. It is still full of expectation and potential which is yet to be realised. Of course there has been innovation, there have been success stories but not enough for this blogger's liking. The global south as a whole do need our help and I feel that we owe it to them. Not because we are superior in any way, shape or form, but rather to the contrary. Our efforts to modernise and westernise these 'backwards natives' has completely failed. We need to fix it.

To do this, I think we need to do two things, stop chucking money at them, and stop telling them that our way is the right way, because it really isn't. Clearly our way hasn't been working and our financial situation is still in a mess despite what the mainstream media have to say about it (have a look at http://rt.com/shows/keiser-report/175580-episode-max-keiser-632/).

We need to realise that money, or at least the money which is being spent now, is completely misused. Intentionally or unintentionally. The average guy in the village ends up losing out. The wealthy and fairly well educated guy in the city ends up winning. That is the harsh reality in many countries and is just plain wrong. 40 years ago E.F. Schumacher said much the same thing. We as the West go to less 'developed' countries and focus all of our energy on the more wealthy parts of a country, the ones which are easier to develop. We provide them with high precision, high maintenance and highly complicated tools. The factory owners who already had the land prosper, the few who are qualified enough to work at the factory prosper (in many cases foreign workers are imported)...and the average person on the farm; well, they 'didn't want to' take our help. The average man is left to work his farm with a limited market. He cannot match the lower prices, output or uniformity which the factory provides and what is demanded by the foreign market which he must now compete in. He is essentially jobless. In the worst, but not uncommon scenario he will join a militia group promising food for his family and an end to the white man taking what is rightfully his, a happy and peaceful life. The man could also move to the city with his family, where he is faced with the problem of a lack of housing and lack of jobs. Again, devoid of a happy life.

Imagine if this money had been spent differently and invested in educating the man rather than ruining his livelihood which his ancestors had most probably enjoyed for centuries before him. This is why I'm calling for an increase in intermediate technology. Where the machinery is simple enough for the man to be taught how to use it. Where the output would be affordable for the local community and contribute to its flourishing rather than its demise. Where jobs are created instead of lost and where people do not have to take a blind trip into the unknown by moving to a city. Another idea that springs to mind is the Barefoot College (http://www.barefootcollege.org/). An initiative which is simple, easy to transfer and costs next to nothing. It offers a basic education in what the people in the towns and cities need to know. It allows for them to develop by themselves, independent of continual cash injections from foreign aid. No matter what the lads say, bigger is not always better. This is just one example of a decentralised approach to aid and development which treats the people as if they actually mattered in a way which they can understand.

That's my rambling done and if you made it this far I thank you for reading. Please feel free to comment and share your opinions.



Sunday, 27 July 2014

What's the deal with TTIP?! (Pt 2)

As discussed in the earlier post, which you should read if you already haven't. I'm going to outline only 5 of the many things wrong with TTIP.

1.       Undemocratic

TTIP has been undemocratic since its inception, the whole negotiation process was never meant to be scrutinised publicly with both parties wanting to get this agreement finalised as soon as possible.  It is not ‘transparent’ as has been claimed and it has been confirmed that the European Commission will block any public access to documents about TTIP and has asked MEPs to maintain confidentiality over proceedings. Stateside, Congress won’t be allowed to see draft negotiations; so legislators can’t actually do their jobs because of blocks to their access and the public are unable to scrutinise the treaty for themselves even though it will undoubtedly affect them. The commission are however granting access to businesses. MEP Helmut Scholz writing for EurActiv.com says that ‘the public interest is vastly under-represented’ and that businesses have been given ‘intimate access to EU negotiators’. With the lack of public representation how can this be seen as rule of the people, by the people, for the people-democratic?



2.       ISDS

The Australian government  unveiled plans to standardise cigarette packaging which showed graphic images of the effects of smoking, this will obviously hit the sales and therefore the profits of cigarette companies. The cigarette company then sues the government for billions on account of these lost profits. Well what does this have to do with ISDS and TTIP? This example of what may happen in the near future in the UK and in Europe. This clause would weaken the legislative power of US and EU member states meaning companies could stop legislation going through if it negatively affected them. Plus, these cases would not be brought into court but instead use arbitrators meaning that there is no appeal mechanism for decisions and so no transparency in these dealings. Furthermore arbitrators are much more likely to rule in favour of business as they themselves are corporate lawyers. Some examples of past rulings are:
       Philip Morris vs. Australian government (as described above)
       AbitbibiBowater vs. Canadian government for $122 million over water and timber rights
       Cases against the Argentinian government, many of which were because of the decision to unlink its currency from the US Dollar for  over $500 million
       Vattenfall vs. German government for  €3.7 billion because of Germany’s  decision to stop using nuclear energy  

There are many more examples, but I think you get the gist. This clause in the agreement could be potentially devastating and would definitely hand more power to the businesses.

3.       Threat to Jobs

With the ‘€100 billion’ growth and ‘0.5%’ growth in EU output by 2027 as a result of TTIP you may think that on face value that this means more jobs. In fact free trade deals often result in job losses. Also when looking at our new trading partner we see that operating costs are cheaper which would mean higher unemployment in the EU as more work is outsourced. There is also the fact that trade unions have very limited power meaning work standards are generally lower which is unethical. The EU’s answer to the concern of mass unemployment is for governments to dip into funds set aside for welfare.

4.       Deregulation

When the cat’s away, the mice will play. TTIP would deregulate food safety which includes the use of growth hormones, controlling of harmful substances (e.g., pesticides) and general animal welfare standards. This is because the US has far lower standards than that in the EU; the US has also specified food regulation as a target in TTIP.  This part of the agreement would mean that the EU would be unable to remove food from the market which it suspects is dangerous freely as it does now. At the moment, it is a company’s responsibility to show that its product is safe for consumption, and not the consumer to show that it’s dangerous. However this would be reversed if TTIP is finalised.
Environmental regulations would also be removed with a chance of significant consumption of natural resources and a reduction in biodiversity. There would also be an increase in the amount of CO₂ which would go against the commitments made by the EU in the Kyoto Protocol. Similar to what is described above, safety from chemicals would also be reduced. Currently companies have to show that their chemical is safe before being sold on the market but this could change under TTIP with consumers having to show it is unsafe. An example of this is that only 6/84,000 chemicals are controlled by the US Environmental Protection Agency. 

5.       The NHS (and other public services)




Karel De Gucht, member of the EU Commission is ‘confident’ that the NHS will be exempt from TTIP, but I’m sure Roy Hodgson was also confident he’d win at least one group match at the World Cup. Confidence doesn’t guarantee anything. TTIP would aim to decentralise public services and open them up to the free market, in an effort to break up any government monopolies. It is very likely that TTIP introduces the right to bid on public sector contracts.  Supposing that privatisation did take place, if the government wanted to reverse this later on (remember no Parliament can bind its successor), it would be open to legal action from the private companies which will make a loss from the re-nationalisation. As a result of lobbying from the financial sectors of the UK, US and influential EU member states, TTIP would also remove some of the regulation introduced after the Credit Crunch making the sector prone to another collapse. If public services are privatised it would resemble the US with extortionate hospital and doctor’s bills and lack of access for the average person. 

Check out these links below to find out more:


What's the deal with TTIP?! (Pt 1)

What is TTIP?

The Transatlantic Trade and Investment Partnership (TTIP) is a proposed treaty between the EU and US which effectively creates a single market. If passed it would undoubtedly be the largest free trade deal in history. The treaty itself would cover all areas of the economy including health care, finance and industry. It would dramatically change the way which the EU trades with the US. 

Key features:

1.       Undemocratic
2.       Investor-state dispute settlement (ISDS)
3.       Threat to jobs
4.       Deregulation
5.       NHS (and other public services)


It claims to overcome ‘bureaucratic hurdles’ and help small businesses, instead it would do the opposite. TTIP hands more power to big business and would help US Mega Companies breach the EU market which used to be protected. The EU claims that the following agreement would put ‘€500’ into the pockets of the average EU citizen per year. But, this figure is questionable and has been calculated by dividing the ‘€119 billion’ by the number of citizens in the EU...so whether this agreement would have any positive effects on the average person is still up in the air. TTIP would also deregulate the market meaning that the ‘invisible hand’ would run freely without any interruption from governments.

Read the next blog post to find out more information on those 5 areas.
 
 Check out these links below to find out more: