Global News Journal

Iran’s Ahmadinejad tells UN capitalism’s dying

Iranian President Mahmoud Ahmadinejad told a U.N. General Assembly session on poverty this week that capitalism is on the verge of death and that it’s time for a new economic system.

“The discriminatory order of capitalism and the hegemonic approaches are facing defeat and are getting close to their end,” Ahmadinejad said at a summit meeting assessing progress on achieving U.N. goals to drastically reduce poverty by 2015.

“The undemocratic and unjust governance structures of the decision-making bodies in international economic and political fields are the reasons behind most of the plights today humanity is confronting,” he said, according to an English translation of his prepared remarks.

Ahmadinejad usually draws a large crowd for U.N. speeches but Tuesday’s address was delivered to a virtually empty hall.

It was unclear whether the unusually low attendance was due to waning interest in Ahmadinejad five years after he first addressed the assembly or if it was the fact that he was one of the first speakers in the morning session, which began at 9 a.m. EDT. (Many delegations are routinely tardy for U.N. meetings.)

Outside the United Nations, demonstrators have been gathering this week to protest Ahmadinejad’s stand on Israel and the alleged human rights abuses of the Iranian government. Ahmadinejad has repeatedly expressed doubt that the Holocaust took place and suggested that Israel should not exist as a state.

Ahmadinejad, whose country has been hit with four rounds of U.N. sanctions for refusing to halt sensitive nuclear activities, offered no clear alternative to capitalism in his speech but said, “The world is in need of an encompassing and, of course, just and humane order in the light of which the rights of all are preserved and peace and security are safeguarded.”

from Africa News blog:

Will South Africa’s poor always back ANC?

It’s one of the biggest ironies in South African politics -- the most loyal ANC voters are often those the party appears to have let down most bitterly.

For millions of poor, mostly black South Africans, life has barely changed since the African National Congress defeated apartheid under Nelson Mandela in 1994.

Year after year, they wait for the new house, the job, the running water and electricity, the decent education for their children that the ANC has promised. For many, that never comes. Yet most will still vote for ANC and its leader Jacob Zuma in an election next week.

The poorest residents of Munsieville, a township on the edge of Johannesburg, illustrate the contradiction.

Unemployed and tired of living crammed into one-room shacks with no running water or electricity, they are quick to list the ways their government has failed them.

Hundreds share one water tap, which sits next to a stinking mound of rubbish where dirt-smudged children play and stray dogs scavenge for food. They dig pits for toilets.

Many say they have languished for years at the bottom of waiting lists for decent housing. They were left behind while others enjoyed a decade of continuous economic growth that created a burgeoning black middle class.

Best reads of February

Exotic animals trapped in net of Mexican drug trade - From the live snakes that smugglers stuff with packets of cocaine to the white tigers drug lords keep as exotic pets, rare animals are being increasingly sucked into Mexico’s deadly narcotics trade.

End of an era for the Amazon’s turbulent priests - They avoid taking buses, make sure friends know their schedules, and rarely go out when it’s dark. For the three foreign-born Roman Catholic bishops under death threat in Brazil’s northeastern state of Para, speaking out against social ills that plague this often-lawless area at the Amazon River’s mouth has come at a price.

West risks repeating Soviet mistakes in Afghanistan - The foreign warplanes swooped in just as the Afghan village of Ali Mardan was celebrating a wedding. Bombs slammed into the crowded village square, killing 30 men, women and children. After the smoke cleared and the dead were buried, all the able-bodied men left alive took up arms against the invaders. That was 1982…

from Africa News blog:

Time to stop aid for Africa? An argument against

Earlier this month, Zambian economist Dambisa Moyo argued that Africa needs Western countries to cut long term aid that has brought dependency, distorted economies and fuelled bureaucracy and corruption. The comments on the blog posting suggested that many readers agreed. In a response, Savio Carvalho, Uganda country director for aid agency Oxfam GB, says that aid can help the continent escape poverty - if done in the right way:

In early January, I travelled to war-ravaged northern Uganda to a dusty village in Pobura and Kal parish in Kitgum District. We were there to see the completion of a 16km dirt road constructed by the community with support from Oxfam under an EU-funded programme.

The road is bringing benefits in the form of access to markets, education and health care. Some parents say their daughters feel safer walking to school on the road instead of through the bushes. Many families have used the wages earned from construction work to pay for school fees and medical treatment. This is the impact of aid.

Having lived and worked in east Africa, I have witnessed the positive effects of aid. But done badly, it can be very limiting and even has the potential to create more harm. To avoid this, it must be provided within an enabling environment in which it is used as a catalyst for change and not as an end in itself. Governments must show leadership through an accountable system.

For individuals, access to resources – including aid - is like an investment. Aid can build up poor people’s assets, support good governance and enhance skills and capacities to bring about transformation. But it can become a bane when it makes communities dependent, lazy and hopeless. Governments, aid agencies and the United Nations need to ensure the delivery of aid is well planned and coordinated, leading to higher self-reliance among poor communities.

Aid is also beneficial when trade is fair. There are several examples in Africa, like the case of coffee farmers in Uganda, where aid has been used effectively to improve the overall quality of the coffee seeds, thereby giving farmers better prices for their produce. When they have access to markets at home and abroad, they generate income which is ploughed back into increased output, better access to health and education, and overall improvement in the quality of their lives. To make this happen, developed countries need to stop procrastinating and put in place fair trade practices.

Aid works well if governments are accountable – in other words, when they are responsible and encourage active citizenship. On this continent, civil society is still weak and needs to be nourished. But stopping aid will not resolve frustrations about poor governance, which is partly a result of weak public scrutiny. Aid should be used to help fight corruption and promote accountability through active input from ordinary people.

from Africa News blog:

How far will South Africa’s ANC shift?

Given that the leaders of the world's most firmly capitalist countries are splashing around unprecedented billions to nationalise banks, prop up industry and try to get economies moving, it might seem churlish for anyone to question South Africa's ruling ANC for planning to spend a bit more freely.

This weekend, the African National Congress set out its election manifesto priorities of creating jobs and improving education and health - promises interpreted by many as marking a generally leftward shift under the leadership of president in waiting Jacob Zuma.

But the plan raises the questions of how the spending will be paid for and how dramatic a shift to the left there will be - of major interest to investors as well as South Africans.

"Zuma did not attach a price tag to the manifesto, but ANC leaders privately admit, to allay fears of a tax hike, that it would be too costly to implement," said this article in the Sunday Independent.

Africa's biggest economy has grown significantly since the end of apartheid in 1994, although the dynamism had started to falter even before the global financial crisis spread gloom around the world.

South Africa's poor and its workers had long complained that the benefits were not being shared around fairly and that only those in a new elite were thriving. The leadership under Zuma, widely expected to become president this year, was always going to be under pressure for more social spending from the ANC grassroots and the party's union and Communist Party allies.

The pressure may have increased further with the emergence of the new COPE party after the ousting of President Thabo Mbeki. Although COPE's electoral impact is uncertain and it has not yet spelled out its policies clearly, the fact that close allies of Mbeki are behind it has suggested it is likely to align more with the former president's stance, seen as 'pro-business'.

China’s elusive land reform

It is ironic that 30 years after they gave birth to the reforms that transformed China into an economic powerhouse, the country’s vast hinterlands are still dogged by poverty.

The breathtaking growth of the economy since the pro-market reforms launched by Deng Xiaoping has led to an extraordinary increase in real living standards and an unprecedented decline in poverty. According to World Bank estimates, more than 60 percent of the population lived under the $1 per day poverty line at the beginning of economic reform. This had fallen to 10 percent by 2004, so - on this narrow measure at least – about 500 million people were lifted out of poverty in a single generation.

“Only development makes hard sense,” said President Hu Jintao in a December 18 speech to mark the anniversary of reform, reviving a slogan that Deng used to spur on investment and spending. 

And yet vast swathes of China’s countryside were bypassed by the economic boom that transformed its cities and eastern seaboard. Agriculture now accounts for only about one-tenth of China’s GDP even though it supports more than half the population.

Much of the rural poverty problem in China can be traced to the inadequacy of the land reform introduced after 1978 and the fact that, even today, rural land is still legally under “collective” ownership. 

Although collectivised farming was replaced by a system that assigned 30-year, non-transferable land-use contracts to households, peasants were not given marketable ownership rights to the land they farmed or the freedom to use it as security on which to borrow and invest. Worse, land was not necessarily allocated to the most efficient farmers and the vast majority worked on so-called “noodle strip” patches that were too small for economies of scale. One of the biggest failings of the de-collectivised system, however, was that it did not shield farmers from the threat of expropriation by officialdom, a major disincentive to investment.

This led to local governments exploiting the countryside as a source of money and power, with the weak legal foothold that farmers had on their land only making life easier for unscrupulous and corrupt officials. According to the International Food Policy Research Institute’s Xiaobo Zhang in a speech “land is being grabbed at a fraction of its market value for supposed public purposes, and then being provided to private investors to promote local economic growth”.

Does the West still matter for Africa?

First on Zimbabwe, now on Darfur, Western countries have lost out at the U.N. Security Council to African states backed by China and Russia.

A Western attempt to get sanctions imposed on Zimbabwean President Robert Mugabe’s government flopped on July 11. Three weeks later, when it came to renewing the mandate of peacekeepers in Darfur, Western countries bowed to demands to include wording that made clear the council would be ready to freeze any International Criminal Court indictment of President Omar Hassan al-Bashir for genocide. The United States abstained, but that made no difference to the vote.

The question had long come up in Western countries as to how much Africa mattered to them given what often seemed intractable wars, famine, disease and poverty. From an African perspective, Western countries – often former colonial powers – have sometimes been accused of arrogance, meddling and ignorance of the continent’s realities.

But while Africa’s economies were once dependent on aid and finance from the West, it is China and other Asian countries that are now rushing to invest, helping to drive unprecedented growth. How Africa will deal with the new investment was a key topic at this week’s meeting in Mauritania with the International Monetary Fund and World Bank. G8 countries, meanwhile, appear to be falling short on their promises of aid.