The Role of Civil Society in Times of Crisis

Posted on by admin

Asia-Pacific, Civil Society, Featured, Headlines, Health, Poverty & SDGs, TerraViva United Nations

Opinion

What is the role of civil society in this massive national exercise to ensure that every citizen of the country has food to eat, quality health services, and livelihood opportunities? I believe there is plenty we can do

This is an opportunity for civil society to highlight the plight of migrant labourers that existed even before the pandemic.. Picture courtesy: Anand Sinha

RAJASMAND, RAJASTHAN, India, May 8 2020 (IPS) – The ongoing COVID-19 pandemic has shown us something that most of us haven’t seen in our lifetimes: Large numbers of people unable to have two meals a day. 

The tragedy is that the government has enough and more foodgrains to feed people during this time; the real issue is of distribution—both in terms of broken supply chains, as well as the insistence of the government to limit distribution to beneficiaries under the National Food Security Act (NFSA), ie, priority ration card holders. This approach is flawed because the NFSA has many exclusions, with some of the poorest of the poor, nomadic or Adivasi communities, and the urban poor being left out. Moreover, ration cards are of no use to migrant workers stuck outside their home state.

How much attention we pay to the millions who have been worst affected by COVID-19 and the lockdown will determine whether or not we come out of this crisis

There are similar issues of exclusion in other services as well, such as livelihoods and healthcare. This is where civil society must step in—to put pressure on the government to universalise these services.

We, at the Mazdoor Kisan Shakti Sangathan (MKSS) and through many networks, have been petitioning the government to distribute foodgrains to everyone, and we need to apply this kind of pressure at a larger scale. We’ve seen this work in the past, in the case of programmes such as NFSA (that focuses on food security) and the Mahatma Gandhi National Rural Employment Guarantee Act (NREGA)—both these were a result of consultative processes between the government and civil society. In fact, these rights-based legislations are providing us with the framework for public service delivery during this crisis, and they need to be effectively enhanced.

Therefore, if the government does not listen, we have to make them listen. I believe the people of this country know how to engage with the government—even when we disagree with our leaders, or they don’t listen to us. We live in a constitutional democracy, and the mantle therefore lies with citizens and civil society organisations to put pressure on the government, and to recreate society on the principles of equality, respect, and solidarity. In the short term, this means that we need to build a national movement to ensure that everyone gets access to food, livelihood, and healthcare.

But how can we do this, given the urgency of the situation and the restrictions that have come with it? What is our role in this massive national exercise to ensure that every citizen of the country has food to eat, quality health services, and livelihood opportunities? I believe there is plenty we can do.

Build a network of civil society

Civil society will have to build a network that cuts across the country. We will need to map the different organisations and groups providing relief in every district, block, and down to every village. We can do this because we have volunteers and workers—from field staff of nonprofits to government school teachers—all over the country, and we know whom we can contact for any information or assistance at any place.

The strength of civil society lies in knowing and being the small, decentralised units that have taken responsibility for their entire area—identifying the number of people in the area, the relief needed, the gaps in government relief, the challenges on the ground, and so on. By bringing them together and forming a network, we can enable these units to call upon each other for assistance, such as procuring material or rebuilding supply chains. Most importantly, the network can have a voice at the national-level that says everyone is entitled to benefits, even if they are not ration card holders or active workers under NREGA.

Stand in solidarity with those delivering essential services

COVID-19 is a high-risk disease, and we need to be very careful; but we cannot simply lock ourselves in our homes, because then those who are most vulnerable will not survive. Essential services absolutely have to continue. We have to build systems and mechanisms for safe delivery of services, and public servants have to be motivated, and given economic and moral support. Even though this has to be primarily done by the government, civil society organisations have a huge role to play as well.

For instance, we need to stand in solidarity with those who are currently delivering these services—frontline health workers, sanitation workers, people running ration shops and kirana stores, those making home deliveries of goods, and so on. We have to understand their problems and put pressure on the government to support them. The Delhi government recently announced insurance of INR 1 crore for frontline workers. That is the kind of security we should demand for every individual delivering services in this period. We have to build a movement around them.

These essential jobs could also be the answer to protecting the livelihoods of the poor during this time, by creating a fallback public works programme, unprecedented in scale. Civil society can demonstrate this model to the government. We need to chart the vital services required today, such as delivering rations and caregiving, and show to the government how people can be employed in these roles. This will not only help communities affected by the pandemic, but the mechanism of doing so might help others in turn.

Continue social movements in innovative ways

We might not be able to organise rallies or protests during the lockdown, but social movements must not stop finding ways to mobilise public opinion. When the lockdown first happened, we filed a case in the Supreme Court to say that all active workers under NREGA should be given wages for all 21 days. The case is being heard via video conferencing. So, we have to explore all options that help put pressure on the government.

We can engage with the state, send press notes, exchange information within our networks of civil society organisations, and document what’s happening on the ground. This way, we can raise issues at the state- and national-level. There are restrictions everywhere, but we cannot stop. We have to be innovative.

Civil society leaders and activists must also continue writing for newspapers and alternative media to highlight the situation of the most vulnerable, and do it in a more organised way, by taking the unheard voices and disseminating them using our networks. These must not just be confined to stories of suffering, but include positive stories and creative practices as well—of people working together despite socio-economic differences. Civil society can also help advocate that best practices in one state be replicated in others.

This is an opportunity for civil society to highlight the plight of migrant labourers that existed even before the pandemic—their work and living conditions, the insecurity of work, and the fact that they have no real social support from the state. We’ve heard people say that they didn’t realise that the migrant workforce is the backbone of our economy. Therefore, in addition to looking after their welfare and security, we must recognise their contribution, and build respect for them and their work—not as a favour, but as a means to empower them.

Many civil society organisations have been working with domestic workers, industrial workers, mine workers, street vendors, or other informal sector workers, but we haven’t managed to get them together and build them into the potent, powerful force that they could be. Perhaps now is the time for us to do that.

This is also an opportunity for civil society to counter the communal narrative that took over the country a few weeks ago. By taking the lead in organising multifaith relief efforts and highlighting positive stories of unity across religious lines, we have to show that the only way to overcome this crisis is by working together. We need to demonstrate compassion and care at this time, and shift the focus of politics to those values.

Work with the government

The role of civil society does not stop at putting pressure on the government. There are many areas that the government is unable to reach; we have to reach there. We have to use our transparency and accountability mechanisms to monitor the government’s work and make sure state resources are well-used. We also need to proactively find the gaps, and help fill those gaps.

The government structure is working well in some areas and not working in others. In some of those places, the government is itself asking for our help. Given the enormity of the intervention required, the government cannot do it on its own, and civil society cannot replace the vast role of the government in facing this crisis. While civil society organisations can take responsibility for one area and fully ensure the well-being of the people there, we must also work with local governments, help people access relief measures down to every rural and urban ward, and fill the gaps in the government’s response. Panchayats and local self-governments also have a very big role to play in this effort.

Apart from this, each one of us needs to think hard of the ways in which we can contribute. As individuals, we can immediately start looking at those around us—in our villages and our localities. Some of us can provide economic resources to plug the government’s gaps; others can take up the job of distribution. Individuals can also devote their time and join campaigns. There needs to be a concerted campaign for instance, to use the excessive foodgrain stocks to universalise the PDS, at least for the next few months. We also need to support the demand for an enhanced employment guarantee programme for rural and urban areas. We don’t realise how powerful the middle-class, English-speaking elite in India is; if they raise their voice enough, we will see improved situations around us.

And lastly, let us not forget democracy at this time—the right to speak, the right to challenge, the right to argue—because today, the only thing millions of poor people have is a voice. We need to amplify that voice to ensure that the most vulnerable get the most support, and those who are affluent only get something if it helps the most vulnerable. How much attention we pay to the millions who have been worst affected by COVID-19 and the lockdown will determine whether or not we come out of this crisis.

The article is based on Nikhil’s online discussion with the team members of Azim Premji Philanthropic Initiatives, Azim Premji University, and Azim Premji Foundation.

Nikhil Dey was one of the founding members of the Mazdoor Kisan Shakti Sangathan (MKSS).

This story was originally published by India Development Review (IDR)

  Source

Religion & its Discontents: Considerations Around COVID-19 & Africa

Posted on by admin

Civil Society, Economy & Trade, Featured, Global, Headlines, Health, Human Rights, Humanitarian Emergencies, Inequity, Religion, TerraViva United Nations

Opinion

Dr. Azza Karam is the Secretary General of Religions for Peace International and Professor of Religion and Development at the Vrije Universiteit (VU), Amsterdam; Dr. Mustafa Y. Ali is the Secretary General of the Global Network of Religions for Children (GNRC) based in Nairobi, Kenya.

Credit: United Nations

NEW YORK, May 8 2020 (IPS) – COVID-19 has spread to many nations around the world, and has been declared a pandemic by the World Health Organization. In the global south, the COVID-19 pandemic has stretched the available medical and health resources, triggered economic shocks, and caused social upheavals and insecurity in many countries and localities.

While the pandemic has caused huge numbers of infections and deaths in the global north, the consequences in the poorer nations in the global south is acute.

Serious challenges arising from responses from authorities to contain the pandemic ranging from hard to soft lockdowns, curfews, limitations in movements, and social distancing, are causing strains in communities.

From fragile economies to ill- equipped health facilities and underfunded health programs, to the almost non-existent social security measures that would ordinarily cushion large segments of pupations from falling further into poverty, the impact on many communities in the global south will be grave.

While COVID-19 has not had a devastating impact on Africa as it has elsewhere, according to official statistics, we fear that this may change.

On the health side, health experts are already warning that the pandemic could yet exact a much heavier death toll in the region if it overwhelms local health services – as has happened in the United States and United Kingdom.

There are also concerns that the relatively weak health systems and patchy testing may be enabling COVID-19 to spread through Sub-Saharan Africa, without a means of registering any of this data.

The official figures to date locate much of the pandemic’s regional burden in places like South Africa, which has reported nearly 5,000 confirmed cases of COVID-19 and recently deployed hundreds of Cuban doctors to help fight its impact, and more than 1,800 confirmed cases in Cameroon, which has launched nationwide testing in April.

Two countries in the region, Lesotho and Comoros, have yet to officially report any cases, let alone Covid related deaths. According to a director of the African Center for Disease Control, the collapse of global cooperation has marginalised Africa in the diagnostics market, and its lack of hospitals combined with a high prevalence of HIV, tuberculosis, malaria and malnutrition could lead to relatively high COVID-19 mortality rates.

Food security is another major issue. Speaking of concerns in Nigeria, Sister Agatha Chikelue, Executive Director of the Cardinal Onaiyekan Foundation and Coordinator of Religious for Peace’s interfaith Women’s Network, noted that people are afraid of dying of “Hovid” – the hunger caused as a result of loss of livelihoods from the lockdown.

Religious leaders join COVID-19 fight in Africa. Credit: United Nations

Small wonder, therefore, that Nigeria is one of the countries already struggling to consider reopening some of their businesses, in spite of dire warnings.

According to a UN report, Africa is home to more than half of the 135 million who suffer acutely from food insecurity, which means there are serious concerns about famines and the potential for a significant death toll.

In other words, we are speaking of very real fears that the Covid crises may cause famine in combination with the drought, which will have dire consequences on the conflict-affected countries in the continent.

John Letzing, Digital Editor of Strategic Intelligence at the World Economic Forum, lists some of the dynamics facing the continent as reported on by a number of different sources. Notably,

Some Africans may be suffering indirectly from the impact of COVID-19 while
abroad – in early April, images and video emerged of Africans in Guangzhou,
China, being subjected to passport seizures and arbitrary quarantine,
according to this report. (The Diplomat). Africa has undergone an incredible
journey to make routine immunization possible, though immunization
coverage in sub-Saharan Africa has stalled at 72%. Now, COVID-19 presents
a further threat to progress, according to this analysis. (New African)

Despite the heralding of the coronavirus, there are those who argue that Africa’s governments did little to prepare themselves, their systems, or their people. Other commentators note that many countries have made plans to ease coronavirus-related measures.

There is some speculation that lessons learned from incidents like the 2014 Ebola outbreak will contribute to some countries’ capacities to weather the storm.

The fact is, that one of the key containment measures—social distancing—will be impossible in the crowded markets, high-density informal settlements and dwellings shared by more than one family. Another oft repeated advise is that of frequent handwashing in clean water. But what happens when clean water to drink, is in very short supply for many households across the sub-Saharan African continent?

Moreover, it is inconceivable that governments will, on their own, be able to meet the needs of all their citizens in this COVID pandemic. Many were already struggling to do so even before the pandemic struck.

Besides offering spiritual guidance and support, which is increasingly needed in times of fear and uncertainty, faith communities and organizations in Africa as elsewhere, have, over the years, supplemented governments’ efforts to provide education, health, nutritional and other developmental needs to their communities.

They also have been in the forefront of peacebuilding initiatives, and in advocating for rights-based approaches to development, protection of, and ending violence against children and minorities.

With the COVID-19 pandemic ravaging communities and creating fear and despondency, faith-based and faith-inspired organizations are already providing and augmenting critical services in health care provision – including but not limited to palliative care – and as part of the supply chains (for food, medicines, spiritual relief) reaching the heart of communities.

Religious organisations are also key to disseminating accurate news about the impacts and effects of the pandemic, rendering more critical their services as communicators and advisers on behavioral changes needed to keep communities safe.

Those of us engaged in working with religious actors speak of 84% of the world’s people claiming an affiliation to a faith tradition. This applies to all the world, and the sub-Saharan African subcontinent is no stranger to religiosity and belief as normal in everyday lives.

In times of fear, most believers will turn to faith, and this means that religious institutions, religious leaders and religious NGOs are playing a key role including psycho-social healing of COVID-19 traumas.

The fact is, however, that not all faith actors play the same role. And even when most play a positive role in helping communities and governments to cope, this does not mean all do. We know that some faith leaders are adamant that congregating for religious worship is a means of healing, because “God will spare us”.

These messages are hardly helpful when science and life and death experience indicate that social distancing is not only advisable, but downright necessary.

While the UN Secretary General’s call for a global ceasefire to all conflicts has been echoed by many religious leaders around the world, the question remains whether actors involved in extremist groups using religion as their raison d’etre will contemplate heeding such calls.

In fact, COVID-19 lockdowns may even be opportunities to ramp up violence, as government security services are otherwise engaged. This begs two important questions we have yet to find answers for:

To what extent will those religious institutions involved in providing for the daily spiritual, psycho-social, humanitarian care for their communities, and already overwhelmed in reconfiguring the very nature of religious worship, find the wherewithal to engage with the ‘radical fringes’ in African contexts already deeply divided by conflicts?

And what impact will COVID-19 have on the very same armed groups still insistent on playing out their conflicts? Already, some of those who still carry weapons, are working to serve some of their community needs – providing food, water and even money to households having to do without.

And as they serve their communities’ needs, the extremist groups have also ramped up attacks. In March and April, armed attacks in sub-Saharan Africa increased by 37 %, adding significant strain on the already overstrained resources, currently re-directed to COVID-related emergencies.

Sheikh Ibrahim Lethome, Secretary General of the Center for Sustainable Conflict Resolution, and Convener for the GNRC (Global Network of Religions for Children) Horn of Africa Working Group on religious-based extremism, is not surprised that the extremist groups have fully seized the confusion and despondency that COVID-19 has thrust into already fragile communities.

These stretch from the Sahel in West Africa, the Horn of Africa to Southern Africa’s Cabo Delgado in Mozambique

Will COVID-19 offer an opportunity for a different trajectory for some of those groups? As these groups continue to plant bombs, kill and maim, what will become of armed insurgency in the name of religion, when COVID-19 hits hard in Africa?

  Source

COVID-19 & Human Health Risks Linked to Wildlife Trade Practices

Posted on by admin

Civil Society, Economy & Trade, Featured, Global, Headlines, Health, Humanitarian Emergencies, TerraViva United Nations

Opinion

Steven Broad is Executive Director, TRAFFIC, the Wildlife Trade Monitoring Network

An animal market in Indonesia. Credit: TRAFFIC

CAMBRIDGE, UK, May 7 2020 (IPS) – At the time of writing, the COVID-19 pandemic is raging worldwide, causing human mortality and socio-economic disruption on a massive scale and it appears highly likely that profound impacts will continue for many years to come.

Although the precise origins of the disease remain unproven, there are strong indications of a wild animal source and a direct link to wildlife trade in China.

Even if evidence points elsewhere in future, the magnitude of the current outbreak places under an intense spotlight concerns raised by zoonotic disease experts over many decades about human health risks linked to wild animal trade in the increasingly inter-connected global economy.

As calls for new health-focused restrictions on wildlife trade have increased in volume in response to the current pandemic, some countries have taken immediate action. Building on immediate emergency restrictions placed on wildlife markets in January 2020, China is implementing a long-term prohibition on trade and consumption of wild animals for food as a public health protection measure.

Viet Nam is also considering new health-focused market restrictions and Gabon has introduced new species-specific trade restrictions. Looking ahead, there is a critical need to improve understanding of what sort of interventions might make the biggest difference in reducing risks of zoonotic disease emergence.

However, it is also important to work out how such actions might best complement, rather than conflict with, the range of existing conservation-focused wildlife trade regulation and management measures that are already struggling to contain over-exploitation of nature by people.

Zoonotic disease risks have not been wholly ignored before now. Many countries have live animal quarantine requirements and other rules governing the cross-border movement of meat, fish and other animal products.

Similarly, production, trade and use of live animals and products are subject to animal and human health regulations within domestic markets of most countries. However, such measures are typically designed primarily to address trade and consumption of domesticated species, the volume and value of which vastly exceed wild animal business.

As a result, the provisions of such regulations are seldom tailored to the specific dynamics and risks of the trade in wild animals.

Design of new interventions should be based on evidence-based assessment of disease-related vulnerabilities in current wild animal trade chains. Based on study of past cases, experts point to heightened risks of zoonotic disease spillover in places where large numbers of stressed live animals of different species (wild or domesticated) and people are in close proximity, such as transport hubs, holding facilities and markets.

However, there remains considerable uncertainty about differentiation of risk levels between different wild animal species (or species groups) and about the likelihood of transmission from different wild animal parts and products.

Credit: TRAFFIC

There is a wide range of options for future intervention based on assessment of such risks. Prohibitions on trade and consumption of certain species or products could be warranted. This would likely require new or modified national legislation in many countries, as most current restrictions are explicitly justified by conservation threat levels and jurisdiction is often limited to import/export controls only.

Such measures would of course face the same challenges that undermine existing wildlife trade laws: enforcement is inconsistent, often under-resourced, undermined by criminality and corruption, and given insufficient priority by governments. Risky trade may simply continue through illicit markets.

It is possible that the greatest benefit might come from changes in management practices for holding, trade and processing wild animals in trade. These might include regulatory or voluntary private sector measures aimed to improve animal husbandry, increase separation between species in trade, enhance sanitation at holding facilities and improve personal protection for workers.

These measures may again require modification of existing animal and human health legislation, but there is considerable practical experience from the domesticated animal sector that could be applied to this challenge.

Despite the clear imperative for action provided by the tragic impacts of the COVID-19 pandemic, it will be critical to ensure that remedial restrictions on wildlife commerce are tailored to achieve specific risk reduction goals and designed to take into account potential negative impacts on social equity, livelihoods, and indirect conservation impacts.

Such measures also need to be set in the context of other zoonotic disease pathways and risk factors that need careful attention, such as land-use change, domestic livestock management practices and other human/wildlife interactions.

It is also vital that amidst the urgent need to reduce zoonotic disease threats from wildlife trade, the ongoing drive to address over-exploitation threats to wildlife does not lose momentum. It is of course possible that new health-focused restrictions on wild animal trade and increased scrutiny of wildlife commerce more generally owing to its likely connection with the pandemic may reinforce conservation-focused action.

However, trade in what may be identified as higher risk sectors, such as that of live wild mammals and birds, makes up a small proportion of the global wildlife trade. The greatest over-exploitation threats are faced by marine species and the biggest wildlife trade flows are of timber and other wild plant products.

There is additional cause for concern that socio-economic impacts of the COVID-19 pandemic may be driving new trends in wildlife trade patterns that need careful attention. Past disease outbreaks linked to wild meat trade have led to increased demands for marine fish and there is already evidence of greater attention to wild plant-based medicinal treatments and tonics.

Although some illegal wildlife trade flows may now be suppressed by transport interruptions and retail market closures, there is every likelihood that criminal syndicates will move fast to rebuild illicit businesses and exploit diversion of government enforcement resources to other priorities.

A new focus on human health risks linked to wildlife trade practices is certainly warranted as a component of wider thought and action on the relationship between people and nature as the COVID-19 epidemic persists.

The response should be targeted, appropriate to the task and its design grounded in experience gained from past wildlife trade interventions. In the same way that human and environmental health are intimately connected, it is essential that new health-focused wildlife trade interventions are considered in concert with those already focused on conservation gain.

The “super-year for biodiversity” may have been delayed, but the imperative for conservation action remains.

An abridged version of the article appeared in the April issue of the TRAFFIC Bulletin, available for download at: https://www.traffic.org/site/assets/files/12779/bulletin-32_1-final-web.pdf

  Source

World’s Poor Hit by Double Jeopardy: a Deadly Virus & a Devastating Debt Burden

Posted on by admin

Civil Society, Economy & Trade, Featured, Global, Headlines, Health, Human Rights, Humanitarian Emergencies, Inequity, TerraViva United Nations

Credit: UNFPA

UNITED NATIONS, May 7 2020 (IPS) – The world’s poorer nations, reeling under an unrelenting attack on their fragile economies by the COVID-19 pandemic, have suffered an equally deadly body blow: being buried under heavy debt burdens.

Abiy Ahmed, prime minister of Ethiopia who was awarded the Nobel Peace Prize in 2019, said last week that in 2019, 64 countries, nearly half of them in sub-Saharan Africa, spent more on servicing external debt than on health.

Ethiopia alone, he said, spends twice as much on paying off external debt as on health. “We spend 47 percent of our merchandise export revenue on debt servicing”, he wrote in an oped piece in the New York Times.

According to the UK-based Jubilee Debt Campaign, some of the countries battling debt burdens include Lebanon, which spends about 41% of its revenue on debt service; El Salvador, which spends 38% of its revenues on debt service; and South Sudan, which spends 29%.

And these are not necessarily the most highly-indebted poor countries in the world — Sri Lanka pays 48% of its revenue in debt service, and Angola 43%.

On April 15, the Group of 20 countries (G20) offered temporary relief to some of the world’s lowest-income countries by suspending debt repayments until the end of the year.

But, regrettably, their best offer fell far short of expectations.

Secretary-General Antonio Guterres has called for a “debt standstill” across all developing countries affected by debt vulnerabilities. This includes external public and commercial debt.

“The private sector’s voluntary and well-coordinated engagement in debt relief discussions is crucial”, he adds.

In 2020, “we expect to lose the equivalent of more than 300 million jobs; a decline in global trade between 13 and 32 per cent; remittance flows to low‐ and middle‐income countries to drop by around 20 per cent; and foreign direct investment to decline by 35 per cent,” the United Nations warned last week.

Clemence Landers, a Policy Fellow at the Washington-based Center for Global Development (CGD), told IPS the G20 bilateral debt suspension is a good start, but it’s only a temporary stopgap measure.

In the months ahead, she pointed out, it will be clear that some countries need deeper and more permanent relief.

“The global community should use this time to establish the broad contours of an orderly debt relief process that distributes the burden equitably between all bilateral and commercial creditors”.

In parallel, argued Landers, the international financial institutions should find ways to deploy financing packages above levels that they have already announced to ensure that net flows to countries are robust. But an effective and orderly process is far from a given.

“It will largely hinge on the G20’s ability to provide an ambitious plan and maintain strong political pressure to achieve a coordinated approach,” she declared.

Professor Kunal Sen, Director United Nations University– World Institute for Development Economics Research (UNU-WIDER), told IPS the recent announcement by the governments of the G20 countries of a debt moratorium for the poorest countries is a welcome initiative as it allows these countries to allocate the funds that would have gone to service external debt to deal with the immediate needs of the pandemic.

According to Jubilee Debt Campaign, the suspension covers debt payments by 77 countries to G20 and other governments, from 1 May to the end of 2020, estimated to be $12 billion.

The payments will not be cancelled but come due to be paid between 2022 and 2024, along with interest accrued in the meantime. There will be a review by the G20 before the end of 2020 as to whether further action will be taken.

The G20 announcement also calls on private creditors to similarly suspend debt payments, and calls on multilateral creditors to explore options for doing so.

The G20 members are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Republic of Korea, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States and the European Union (EU).

The Ethiopian Prime Minister said at the very least, the suspension of debt payments should last not just until the end of 2020 but rather until well after the pandemic is truly over.

“It should involve not just debt suspension but debt cancellation. Global creditors need to waive both official bilateral and commercial debt for low-income countries,” he declared.

Richard Ponzio, Senior Fellow and Director of the Stimson Center’s Just Security 2020 Program, told IPS the G20 Finance Ministers wisely agreed on a ‘time-bound suspension of debt service payments’, between now and the end of the year, for 77 of the world’s poorest countries.

“Now it’s time for private creditors, who are owed USD $3 billion (or a quarter of total debt), to step up and participate in this initiative,” he noted.

Since the COVID-19 pandemic continues to affect countries in different ways, once they begin to transition from the current emergency to a full recovery phase, the G20 should revisit the need to sustain this policy, in 2021 and 2022, on a country-by-country basis, with the goal of helping all countries adversely affected by the pandemic to get back-up on their feet, Ponzio declared.

Anuradha Mittal, Executive Director at the Oakland Institute, a leading US-based policy think tank, told IPS the Covid-19 pandemic has unleashed a crisis of untold proportions – the disastrous impact of which is being felt by the poorest and poor nations.

According to the World Bank itself, COVID has pushed about 40-60 million people into extreme poverty, with best estimate being 49 million.

Bank’s projections suggest that Sub-Saharan Africa will be the region hit hardest in terms of increased extreme poverty, she said.

“At such a time, an inclusive bailout requires that united global response should ensure a just recovery and transition to a better future for those most in need.”

She pointed out that Central African Republic has just three ventilators, Sierra Leone has 13, Liberia has three, South Sudan has four.

Mittal said developing countries should be boosting healthcare systems to defend against the virus and protecting their economies and the poor, instead of using precious resources to pay off external debt, which anyway never benefitted the communities.

“These loans were often generated for so called “development” projects which have failed to bring development to the countries or populations that were intended to benefit”.

At this time, she argued, it is pertinent to cancel bilateral, multilateral and private debt for this year and instead, emergency additional finance should be provided. This time also calls for real negotiations around debt cancellation.

Above all, it is important to ensure removal of loan leverage to open up markets and force reforms such as the opening of land markets in Ukraine. Loan programs intended to control economies and natural resources have to stop, said Mittal.

Sarah-Jayne Clifton, Director of Jubilee Debt Campaign said the G20 offer is a first step in dealing with the magnitude of the coronavirus debt crisis, but much more needs to be done.

The G20 deal keeps vital money in countries for now, but today’s suspension will soon become tomorrow’s debt crisis unless payments are cancelled in full.

“We urgently need a UN-led process to cancel external debt owed to all creditors, for all countries in crisis,” said Clifton.

“The suspension of debt payments to private creditors is only voluntary. The UK and New York can make sure it happens by introducing emergency legislation to prevent any lender suing a country for stopping debt payments during the current crisis”.

Otherwise, she argued, “the real beneficiaries of today’s deal could be rich speculators who keep being paid thanks to debt suspensions by other lenders.”

Meanwhile, several Asian countries, including Sri Lanka, India, Pakistan, Bangladesh and the Philippines, have taken a severe beating primarily because of a sharp fall in migrant earnings resulting from the closure of industries and construction work in the Middle East and Gulf nations due to COVID-19.

According to the New York Times, millions of Indians who work in the Arab world — particularly in the oil-rich countries of the Gulf — have lost their jobs in recent weeks as Arab economies have contracted under lockdown.

“We have been getting distress calls from the Gulf,” said Mahesh Kumar, a spokesman for India’s foreign ministry.

The Times said Indian media have reported more than 150,000 Indians in the United Arab Emirates requesting to be evacuated — and that several large naval warships have already been dispatched to the UAE and the Maldives.

The writer can be contacted at thalifdeen@ips.org

  Source

Financial Scams Rise as Coronavirus Hits Developing Countries

Posted on by admin

Civil Society, Economy & Trade, Featured, Global, Headlines, Health, Human Rights, Humanitarian Emergencies, Inequity, TerraViva United Nations

Opinion

David Medine is Senior Financial Sector Specialist at the Consultative Group to Assist the Poor (CGAP). He is also CGAP’s lead on data protection and security and works to develop novel, consumer-oriented approaches to data protection and to encourage the creation of cyber security resource centers for developing countries.

Credit: County of Los Angeles

WASHINGTON DC, May 5 2020 (IPS) – In the Philippines, Peru, India, Kenya, South Africa and many other developing countries, poor people who are already struggling with the health impact of the coronavirus pandemic have been targeted by online fraudsters trying to take unfair advantage of them.

There is the risk that these scams could undermine confidence in digital technologies that are proving so very important in keeping people informed and connected during the pandemic.

In particular, trust in digital financial services, which have been useful in advancing financial inclusion efforts, could be damaged at the very time that they have proven to be an effective means of getting payments to poor people quickly and efficiently.

Here are some examples of virus-related scams:

phishing

    • attack is offering housebound people in India a free Netflix subscription during the lockdown if they click on a survey link and forward the message to 10 WhatsApp users.
    • • Emails with suspicious links have also been sent purporting to be from the World Health Organization, United Nations and Centers for Disease Control and Prevention.

Scammers

    • have been visiting homes in South Africa to “recall” banknotes and coins they say are contaminated with the coronavirus, providing receipts for “clean” cash that is never delivered.

Fake

    • offers of emergency money for essentials have been reported in India.
    • • INTERPOL

warns

    • that criminals have been calling victims pretending to be clinic or hospital officials, reporting that a relative has fallen sick with the virus and requesting payments for medical treatment.
    • • People desperate to protect themselves are falling for offers of

fake

    • medical products, such as masks, vaccines and

testing kits

    • Education and COVID-19: UN helps children continue their learning

There have even been false claims that the coronavirus is related to exposure to new technologies (such as 5G, which can be used to deliver money mobiles services). There are measures authorities can take in response to better protect consumers.

Regulators, providers and consumer protection agencies can alert people to the risks; providers can make sure they have adequate consumer complaint mechanisms in place; and law enforcement can coordinate firm action, not only in country but across borders.

Credit: United Nations

Preying on vulnerable populations in developing countries at a time of crisis is unconscionable. A multi-pronged effort is needed to protect more people from becoming victimized at a time when many are struggling with lost income as a result of being forced to stay at home to combat the illness.

A concerted effort by the public and private sectors is needed to protect customers through educational efforts and high visibility law enforcement actions.

In the short term, education is key, and governments are often best positioned to take the lead. For instance, the South African Banking Risk Information Centre (Sabric) has been warning bank customers about criminals exploiting the virus to engage in phishing.

Similarly, the Philippines Department of Information and Communications Technology has asked Filipinos to be mindful of their safety online and to be wary of unverified COVID-19 websites or applications that require consumers to provide their personal data.

There is a need for governments to continue to identify consumer protection threats — initially, by reaching out to banks, microfinance institutions, fintechs, NGOs and other entities to find out what they are seeing in their markets. Efforts should then be made to warn people how to identify potential scams.

The Central Bank of South Africa has stated that neither banknotes nor coins have been withdrawn from circulation, so anyone offering to “recall” currency should be met with a skeptical eye.

While there is a natural instinct to provide financial support for friends and family in need of medical care, it is important to follow INTERPOL’s warning and confirm that unknown callers are really acting on their behalf. Such consumer warnings could be sent via SMS, WhatsApp or along with other governmental communications.

The private sector must also play a critical role in protecting consumers during the crisis. In the course of providing financial services, trusted firms can educate customers about how to avoid pitfalls, such as responding to fraudulent communications.

There is also the need for digital financial services companies to have effective consumer complaint and resolution centers so that customers who have been scammed have some recourse.

Prosecuting digital scam artists promptly and meting out harsh punishments will send a strong message. One recent example is the response to a brazen attempt by a fraudster in India purporting to sell the world’s tallest statue, the Statue of Unity, for $4 billion to raise money for the Gujarat state to fund its fight against coronavirus.

This action led the Indian police to lodge a case. Similarly, Indian police have registered cases against fake offers of discounted Jio and Netflix services. Such enforcement actions help further educate members of the public about protecting themselves against fraudulent actors.

In the connected world in which we live, it is often easier to commit fraud across borders than inside one’s own country. There is no better time than now for governments to work with their neighbors and go after criminals in each other’s countries.

Such an effort has been led by INTERPOL, an inter-governmental organization with 194 member countries, including many developing countries. INTERPOL has been receiving information from member countries on a near-daily basis regarding coronavirus fraud cases, along with requests to help stop fraudulent payments.

While targeted victims have been primarily located in Asia, criminals have used bank accounts in other regions such as Europe. INTERPOL has helped national authorities to block some of the payments, assisting with some 30 COVID-19 related fraud scam cases.

Where cooperative agreements between countries do not exist, perhaps a silver lining of the current crisis would be to promote such cross-border consumer protection efforts.

Collectively, we can combat the outrageous attempts by some to take advantage of this crisis for their financial benefit. Of course, to survive many people will need more medical and financial help, not just tips on how to avoid scams.

Many countries have undertaken wide-ranging relief efforts. Digital financial services, such as mobile money, are proven mechanisms for getting financial aid quickly to the poorest and neediest in times of crisis.

Let’s take steps now to ensure digital technology is used as a force for good.

  Source

Impact of COVID-19 on Tourism in Small Island Developing States

Posted on by admin

Civil Society, Development & Aid, Economy & Trade, Featured, Global, Headlines, Health, Human Rights, Humanitarian Emergencies, Inequity, TerraViva United Nations

Opinion

Pamela Coke-Hamilton, Director, Division on International Trade and Commodities, UN Conference on Trade & Development (UNCTAD)

Small island developing states are most vulnerable to the impact of COVID-19 on tourism not only because they are highly dependent on tourism, but also because any shock of such magnitude is difficult to manage for small economies

An undersea restaurant in the Maldives, a Small Island Developing State (SIDS)

GENEVA, May 4 2020 (IPS) – The COVID-19 pandemic and the measures put in place to contain its diffusion are taking a heavy toll on the tourism sector. According to the United Nations World Tourism Organization (UNWTO), the COVID-19 pandemic will result in a contraction of the tourism sector by 20% to 30% in 2020.

This estimate is likely to be conservative for countries relying on foreign tourists, as the recent data on daily air traffic indicate a drop of almost 80% since January 2020.

While many economic sectors are expected to recover once restrictive measures are lifted, the pandemic will probably have a longer lasting effect on international tourism. This is largely due to reduced consumer confidence and the likelihood of longer restrictions on the international movement of people.

According to the World Travel and Tourism Council (WTTC), in previous viral epidemics the average recovery time for visitors to a destination was about 19 months.

Highly vulnerable countries

The sudden, deep and likely prolonged downturn in the travel and tourism sector has made countries that rely heavily on foreign tourism very concerned about their finances.

Among these, small island developing states (SIDS) are most vulnerable not only because they are highly dependent on tourism, but also because any shock of such magnitude is difficult to manage for small economies.

On average, the tourism sector accounts for almost 30% of the gross domestic product (GDP) of the SIDS, according to WTTC data. This share is over 50% for the Maldives, Seychelles, St. Kitts and Nevis and Grenada.

Overall, travel and tourism in the SIDS generates approximately $30 billion per year. A decline in tourism receipts by 25% will result in a $7.4 billion or 7.3% fall in GDP. The drop could be significantly greater in some of the SIDS, reaching 16% in the Maldives and Seychelles.

It is expected that for many SIDS, the COVID-19 pandemic will directly result in record amounts of revenue losses without the alternative sources of foreign exchange revenues necessary to service external debt and pay for imports.

Devastating economic consequences

In general, countries may be able to weather economic storms by relying on additional debt or using available foreign reserves.

However, access to global capital markets is increasingly tight, more so for small countries such as SIDS, which are often highly indebted and not well diversified.

The external debt of the SIDS as a group accounts for 72.4% of their GDP on average, reaching up to 200% in the Seychelles and the Bahamas.

Foreign reserves are also generally low, with many of the SIDS possessing only the reserves sufficient for a few months of imports. Given these statistics, it is evident that without international assistance, the economic consequences of the pandemic will be devastating for many of the SIDS.

Immediate financial needs

By considering the economic impact of reduced tourism revenues (assuming a 25% decline in tourism receipts and restoring the minimum level of import coverage (three months), it is possible to provide a rough estimate of each country’s immediate financial needs to offset the damage of the pandemic.

Currently, the SIDS would need about $5.5 billion to counteract the adverse effects of the pandemic on their economies.

The Maldives stands out with a need of $1.2 billion due to its reliance on tourism revenues, followed by the Bahamas and Jamaica.

Many of the SIDS, like Jamaica and the Bahamas, also face high external debt burdens which require complementary external debt suspension or relief programmes.

Table 1: Tourism, Debt and Foreign Currency Reserve Indicators

International response

While governments all over the world have announced fiscal measures totalling $8 trillion to combat the pandemic, the international community has also mobilized funds through international financial institutions to counteract the economic crisis in the most vulnerable countries.

The International Monetary Fund (IMF) created a $50 billion fund through its rapid-disbursing emergency financing facilities for low-income and emerging market countries. It has earmarked $10 billion to serve its poorest members with a zero-interest rate. Regional banks have also created response facilities aimed at financially supporting their members.

What options are available for SIDS?

The IMF has just revamped the Catastrophe Containment and Relief Trust (CCRT) to offer short term debt reliefs to some of its members.

While some SIDS such as Comoros, São Tomé and Príncipe, and the Solomon Islands have already requested and obtained debt relief, there is room for more SIDS to take advantage of this option. While many of the SIDS are not among the poorest countries, they are vulnerable. This is further compounded by high levels of external debt many SIDS experience.

It is critical that SIDS have access to funding at zero interest rates and can suspend existing debt payments until they are financially ready to service their external debt obligations.

Ultimately, this can help blunt the impact of external shocks such as COVID-19 and equip them with the necessary financial resources to plan their next steps for their economic development.

  Source