Don’t Count on PPP Solutions

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Civil Society, Climate Action, Development & Aid, Economy & Trade, Global, Headlines, Sustainable Development Goals, TerraViva United Nations

Opinion

KUALA LUMPUR, Malaysia, Sep 27 2023 (IPS) – In recent years, public-private partnerships (PPPs) have spread rapidly. While usually profitable for the private partners, PPPs have generally not served the longer-term public interest.

PPPs as miracle all-purpose solution
As Eurodad has shown, PPP financing has grown in recent years, particularly in the Sustainable Development Goals (SDGs) funding discourses. Adopted by the UN in September 2015, the SDGs endorsed PPP financing.

Jomo Kwame Sundaram

Earlier, the mid-2015 Third UN Conference on Financing for Development in Addis Ababa had failed to ensure adequate financing. This was mainly due to rich nations opposing a UN-led international tax cooperation initiative.

Instead, PPPs were strongly endorsed in the 2015 Addis Ababa Action Agenda. Weeks later, SDG17 referred to PPPs as ‘means of implementation’. This all sought to “encourage and promote effective public, public-private and civil society partnerships”.

PPPs have been promoted as a means to finance and deliver infrastructure, social services and, increasingly, climate-related projects. Advocates claimed PPPs would also help overcome other problems besides funding. PPPs, they claimed, would help improve project selection, planning, implementation and maintenance.

PPP promotion
Some advocates even claim only the private sector can deliver high-quality investment and efficiency in infrastructure and social service delivery. Private financing reduces budget-constrained governments’ need to raise funds upfront to finance, develop and manage projects.

Increased private financing supposedly also overcomes public sector incapacity to deliver high-quality infrastructure and public services. Undoubtedly, many government capacities have been diminished by decades of structural adjustment, austerity and less public finance.

This has been worsened by rich countries’ unmet commitments to contribute 0.7% of national income as official development assistance (ODA) on concessional terms. The global North has also been unwilling to effectively stem illicit financial outflows, e.g., due to tax dodging.

PPP promotion has involved many means, media and institutions, including ‘donor’ agencies, multilateral development banks (MDBs), UN agencies, international consultants, transnational accounting firms, and the World Economic Forum (WEF).

The World Bank has long promoted private financial investments in development, as well as ‘blended finance’ and PPPs more recently. In 2022, the influential WEF even proclaimed PPPs as essential for pandemic recovery.

Promoting private finance
Such promotion of private finance has implications far beyond the actually modest amount of funds raised through ‘blended finance’ and PPPs. Almost every project so funded is touted as proof that private finance should be privileged, including by guaranteeing returns using public finance.

The World Bank and other MDBs are devoting considerable effort to advise governments on the use of PPPs. By contrast, they have not put comparable efforts into improving the quality and effectiveness of publicly financed infrastructure and social services.

Over the years, the World Bank Group has produced different tools – including model language for PPP contracts, which favour private sector interests – often to the detriment of the public partner, ultimately governments in need of financing.

Regional development banks – such as the Asian Development Bank, the African Development Bank and the Inter-American Development Bank – have strategic frameworks, networks and dedicated offices to support countries implementing PPPs.

National PPP promotion
PPP advocacy has led to changes in laws, regulatory frameworks and policy environments at international, national and local levels. Developing countries have also started including PPPs – to scale up infrastructure and public service provision – in national development plans.

Many developing countries have enacted laws enabling PPPs and set up ‘PPP Units’ to implement PPP projects. The World Bank, International Monetary Fund (IMF) and regional development banks work closely with private partners to provide policy guidance advising governments on how to best enable PPPs.

All this has transformed policy formulation for public service provision to attract private investors – an agenda Daniela Gabor dubs the ‘Wall Street Consensus’. This implies “an elaborate effort to reorganize development interventions around partnerships with global finance”.

PPPs have not delivered
But actual experiences have not confirmed this favourable impression promoted by PPP advocates. Instead, PPPs have become a major cause for concern. Reliable data on international PPP trends are hard to find. Also, different PPP definitions and terminology have confused reporting.

The World Bank’s Private Participation in Infrastructure Projects Database reports on economic infrastructure – such as for energy, transport, water and sewerage – in 137 low- and middle-income countries.

The Covid-19 pandemic undoubtedly disrupted PPP planning, preparation and procurement. But even the World Bank admits that delays and cancellations were not only due to Covid-19 as the pandemic exposed projects already in trouble for other reasons.

Nonetheless, PPPs’ financial impacts to date have been small, as the public sector continues to dominate. But little private investment – including PPPs – goes to low-income countries. Most such projects are concentrated in a few countries.

PPPs tend to be found in countries with large and developed markets allowing faster cost recovery and more secure revenues. This implies market ‘cherry-picking’ – a selection bias – with private investments going to more affluent urban areas rather than to the needy.

The major setbacks to both the SDGs and climate progress in the last decade are not only due to financing. But they are more than enough to underscore that recent reliance on blended finance and PPPs has worsened, rather than helped the situation. The empire of private finance has no clothes!

IPS UN Bureau

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Skyrocketing Inflation Puts Food Security in Pakistan at Risk

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Asia-Pacific, Civil Society, Food Security and Nutrition, Headlines, Humanitarian Emergencies, Poverty & SDGs, TerraViva United Nations, Trade & Investment

Economy & Trade

Jamaat-i-Islami party stage protest in Peshawar against price-hikes. Credit: Ashfaq Yusufzai/IPS

Jamaat-i-Islami party stage protest in Peshawar against price-hikes. Credit: Ashfaq Yusufzai/IPS

PESHAWAR, PAKISTAN, Sep 26 2023 (IPS) – “We are under extreme stress about skyrocketing prices of essential edible commodities and the cost of gas and electricity. The situation is becoming worse because every day. We must pay more for wheat flour, sugar, tea, milk, oil, etc.,” Azizullah Khan, a civil servant, says.

Khan draws a monthly salary of 30,000 rupees (USD100), but the cost of living is increasing daily, making it hard for his family of eight to survive.

The electricity bill for August was 20,000 rupees (USD67), and two-thirds of his salary went into paying that, while the remaining 10,000 rupees (USD33) is meant to pay for gas and other family expenses, which, he says, is next to impossible.

“Now, we are seriously thinking of selling the small house we inherited from our parents because we have to repay loans to the shopkeepers and pay the school fees of three children,” says Khan, 30. He lives on the outskirts of Peshawar, the provincial capital of Khyber Pakhtunkhwa, one of Pakistan’s four provinces.

Pakistan’s leading economy and business analyst, Khurram Hussain, told IPS that the country has been seeing relentless and unending pressure on the exchange rate and price levels for more than two and a half years.

“The present bout of exchange rate volatility began in May 2021 and has continued unabated since then,” Hussain says. The dollar had from around 150 rupees to the dollar to about 300 to the dollar, he says.

Quoted in Dawn, a newspaper in Pakistan, he noted: “It took ten years for the dollar to double in value from 75 to 150 rupees, from 2008 till 2019. It took less than two and a half years to double again from May 2021 till today.

At the same time, inflation, as measured by the Consumer Price Index, started to skyrocket a few months after May 2021 and has risen relentlessly until now, with a few interruptions.

Muhammad Raees, 28, a daily wager, is severely hit by the cost of living.

“One year back, the price of 20 kg wheat four was Rs1300, which has now increased to Rs3000. I don’t find work every day because the construction activities have nosedived due to cement, iron, marble, and tile prices, and most of the contractors have stopped work,” Raees, a father of two, says.

“Many times, I have thought of committing suicide, but then I think of my children and wife,” he says.

At least ten people have committed suicide in the past two months.

“They were unable to pay electricity bills. Now, the government is mulling about jacking up the gas price by 50 percent. The poor population is the worst hit,” he says.

Javid Shah, a vegetable seller in Nowshera city adjacent to Peshawar, is fed up with life. “Cost of transportation has increased, and so the prices of vegetables and, as a result, sales have declined. Many who bought 1 kg of tomatoes, lady fingers, and potatoes daily are now taking half a kg,” he says. “I have to discard rotten vegetables daily for lack of sales.”

Akram Ali, a fruit seller in a tiny shop, also constantly complains of high inflation and devaluation of rupees. Ali says his business has reached a standstill as people no longer buy fruits due to high prices.

“As a result, I am going to close shop and start the business in a hand pushcart to save on rent.”

“My two sons are going to school, but the last one and half years have been tough, and I cannot pay their fees. Both have quit schools and sit at home,” he complained.

Saleem Ahmed, a local economist, tells IPS that pulses, considered poor men’s diet, are so expensive they are out of reach of many.

“All pulses are imported in dollars, so their prices have increased. The people are struck by inflation, and they cannot buy items, like pulses, which used to be cheap,” he said.

Prices were stable until former Prime Minister Imran Khan was removed in April 2022 in a no-confidence vote at the National Assembly.

“People have been running from pillar to post for two square meals. As if inflation wasn’t enough, huge smuggling of sugar, wheat flour, pulses, oil, etc. to neighboring Afghanistan have hammered the last nail in the coffin of the poverty-stricken masses,” he said.

Ahmed says the government is taking loans from the IMF, the World Bank, and other lenders with high interest rates, impacting the cost of living.

In such a scenario, Afghan refugees living in Pakistan are jubilant over the rising Afghan economy under the Taliban, and many are weighing options to return to their country.

“In Pakistan, the US dollar is equal to 300 rupees while it is traded for 75 Afghani back home,” Muhammad Mustafa, an Afghan with a sanitary business in Peshawar, says.

Mustafa says he had sent his elder son to Kabul to search for the rented shop so he could shift his business there.

“All my family live in Kabul, and we want to be there. The time is ripe for us to shift (back) there,” he says.

Petrol is being sold at 312 rupees (USD1.5) per liter in Pakistan, while its rate was 80 Afghani (USD1.02) in Kabul.

IPS – UN Bureau, IPS UN Bureau Report,

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Bahrain’s Political Prisoners: Resistance Against the Odds

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Civil Society, Crime & Justice, Democracy, Featured, Headlines, Human Rights, Middle East & North Africa, TerraViva United Nations

Opinion

Credit: Mohammed al-Shaikh/AFP via Getty Images

MONTEVIDEO, Uruguay, Sep 26 2023 (IPS) – Maryam al-Khawaja’s journey home ended before it had begun: British Airways staff stopped her boarding her flight at the request of Bahraini immigration authorities. Maryam was no regular passenger: her father is veteran human rights activist Abdulhadi al-Khawaja, in jail in Bahrain for 12 years and counting.

Abdulhadi was sentenced to life in prison on bogus terrorism charges for his role in 2011 democracy protests, part of the ‘Arab Spring’ regional wave of mobilisations. His health, weakened due to denial of medical care, has further declined as he joined other political prisoners in a hunger strike demanding improvements in prison conditions.

Emerging from the unlikeliest place – a prison designed to break wills and destroy the desire for freedom – this hunger strike has become the biggest organised protest Bahrain has seen in years.

Maryam has four judicial cases pending in Bahrain but was ready to spend years in prison if this was what it took to save her father’s life. This is far from Abdulhadi’s first hunger strike, but his family warns that his fragile health means it could be his last. In denying Maryam the chance to see her father, the Bahraini regime has reacted as those who rule by fear often do: in fear of those who aren’t afraid of them.

A prison state

The Bahraini cracked down severely on the 2011 protests, unleashing murderous security force violence to clear protest sites, arresting scores of protesters, activists and opposition leaders, subjecting them to mass trials and stripping hundreds of citizenship. It sentenced 51 people to death and has executed six, while 26 wait on death row having exhausted their appeals. Most were convicted on the basis of confessions obtained through torture.

Many of those arrested in the 2011 protests and subsequent crackdown remain behind bars. According to estimates from the Bahrain Center for Human Rights, over the past decade the government has arrested almost 15,000 people for their political views, and between 1,200 and 1,400 are still jailed, mostly in Jau prison in Manama, the capital. Abdulhadi is one of many.

On 7 August, Jau’s political prisoners went on hunger strike. Their demands include an end to solitary confinement, more time outside cells – currently they’re only allowed out for an hour a day, permission to hold prayers in congregation, amended visitation rules and access to adequate medical care and education. Over the following weeks the numbers taking part grew to more than 800. Their families took to the streets to demand their release.

On 31 August, the political prisoners extended their protest after rejecting the government’s offer of only minor improvements.

On 11 September, a two-week suspension of the strike was announced to allow the government to fulfil promises to improve conditions, including ending isolation for some prisoners. It seemed clear the government had shifted position to avoid embarrassment as Bahrain’s Crown Prince and Prime Minister Salman bin Hamad Al-Khalifa prepared to meet US President Joe Biden.

Abdulhadi, however, soon resumed his hunger strike after being denied access to a scheduled medical appointment, only to suspend it a few days later when he was promised improvements in conditions, including a cardiologist appointment. But the next day it became apparent that these were all lies, and he resumed his hunger strike. It felt, as Maryam put it, ‘like psychological warfare and an attempt to kill solidarity’.

International solidarity urgently needed

In her attempt to return to Bahrain, Maryam received strong international support. Several Bahraini, regional and international civil society groups backed a joint letter urging European Union authorities to call for the immediate and unconditional release of all Bahrain’s political prisoners. A similar letter was sent to the UK government.

In late 2022, backlash from human rights organisations forced Bahrain to withdraw its candidacy for a UN Human Rights Council seat. And earlier this year, during the Inter-Parliamentary Union’s global assembly in Bahrain, which the regime sought to use for whitewashing purposes, parliamentarians called on Bahrain to release Abdulhadi and send him to Denmark for medical treatment.

But while Bahrain’s political prisoners have many allies, some powerful voices aren’t among them.

Bahrain’s foreign allies include not only repressive autocracies such as Saudi Arabia and the United Arab Emirates but also democratic states, notably the UK and the USA, which clearly value stability and security far more highly than democracy and human rights.

Following Bahrain’s independence in 1971, the UK has continued to back the institutions it established – and has pretended to see progress towards democratic reform. In July, Bahrain’s Crown Prince made an official visit to the UK, where he met Prime Minister Rishi Sunak and signed a ‘Strategic Investment and Collaboration Partnership’ between the two countries. This included a US$1 billion investment deal in the UK. Barely a month before the start of the hunger strike, Sunak welcomed ‘progress on domestic reforms in Bahrain, particularly in relation to the judiciary and legal process’.

For the USA, Bahrain has been a ‘major non-NATO ally‘ since 2002 and a ‘major security partner’ since 2021. Bahrain was the first state in the region to be accorded major non-NATO ally status, the first to host a major US military base and the first, in 2006, to sign a free trade agreement with the USA. The US Navy’s Fifth Fleet, one of seven around the world, is stationed there, and the country hosts the headquarters of the US Naval Forces Central Command.

On 13 September, the Crown Prince visited Washington DC and signed a ‘Comprehensive Security Integration and Prosperity Agreement’ meant to scale up military and economic cooperation with the USA.

Only in the last paragraph of its pages-long announcement, meticulously detailed in every other respect, did the White House briefly acknowledge that human rights were an item of discussion. Nothing was said about the content or outcome of those alleged conversations.

The USA has been repeatedly chastised for a ‘selective defence of democracy‘. President Biden promised a foreign policy centred around human rights, but that rings hollow in Bahrain. It’s high time the USA, the UK and other democratic states use the many levers at their disposal to urge the Bahraini government to free its thousands of political prisoners and move towards real democratic reform.

Inés M. Pousadela is CIVICUS Senior Research Specialist, co-director and writer for CIVICUS Lens and co-author of the State of Civil Society Report.

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Music: Parchman Prison Prayer: Some Mississippi Sunday Morning (Glitterbeat Records)

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WHEN the Grammy-winning world music producer and political activist Ian Brennan first approached Parchman Prison, the Mississippi state penitentiary, to ask whether he could record there, he started a ball rolling on a project that would yield extraordinary results. Brennan takes a particular interest in prisons, and the plight of those incarcerated. His previous prison recording, “I have no everything”, recorded the voices of those locked in Malawi’s maximum-security facility in Zomba. Such was its vibrant urgency, it earned a Grammy nomination in 2016.

Brennan tried for several years to get permission to record in Parchman, one of the world’s most notorious penal institutions. When it was finally given, with only a week’s notice, he was only allowed to record sound: no photographs and no video. The resulting recording is truly remarkable, in turns stark and mournful, and then joyful and hopeful. It seems to capture the authentic spiritual life of the Parchman prisoners.

Parchman is an awful place. Founded in 1901, the maximum-security penitentiary occupies 28 square miles of farmland, and houses death-row prisoners and the state execution chamber. In 2019, five prisoners were killed, and dozens more were injured, in a series of riots. Lawsuits filed the following year claimed that the prison was violent and rat-infested, and that prisoners lived in “abhorrent conditions”.

Long after slavery was outlawed, campaigners claimed that Mississippi authorities were circumventing legislation by “leasing” the majority African American prisoners to farmers, in effect re-enslaving them. Although conditions have improved markedly over recent years, the sonorous cries of the jailed men speak of the deep spiritual need still felt by those behind bars. One baritone simply, repeatedly, intones “Solve My Need” — perhaps the most authentic prayer that I have heard. In documenting their songs, Brennan has ensured that the plight of the incarcerated cannot be overlooked.

Parchman Prison Prayer: Some Mississippi Sunday Morning is released by Glitterbeat Records.

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Chakwera urges African Americans to invest back in their respective countries

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The Malawi President Dr. Lazarus Chakwera, currently attending the 78th Session of the United Nations General Assembly (UNGA) in New York, USA, has urged Africans naturalized in America to start investing in their respective countries.

Chakwera made the remarks when he delivered a speech at the African Investment Summit held as a side event during the UNGA Summit.

Malawi University of Science and Technology (MUST), Enyo International, and the National Forum for Black Public Administrators (NFBPA) organized the African Investment Summit to provide a platform for President Chakwera to highlight investment opportunities critical to Africa’s sustainable development.

The summit drew high level participation from Mozambican President Fillipe Nyusi and Lesotho Prime Minister Sam Matekane, among others.

President Chakwera, who co-hosted the summit with Darnell Brown, President of the National Forum for Black Public Administrator, said African governments were committed to creating an environment that fosters transparency, stability, and inclusivity.

The President prompted the audience to consider investing in real estate and infrastructure development, which he said was vital for Africa’s urbanisation and economic growth.

“But most of all, Africa is your motherland, your homeland, and there is nothing more precious in this life than to invest in your home to make it better,” said President Chakwera.

“We invite you to be a part of shaping our cities and building the infrastructure of tomorrow,” he added.

On the other hand, the Malawi leader touted transformative potential of innovation and technology in Africa and encouraged countries to adopt digitalisation, promotion of research and development and nurturing of tech start-ups.

“These initiatives can leverage Africa’s youthful population, unleash creative potential and drive economic growth across the continent,” he said.

The President emphasised that Africa was a continent of investment opportunities and resilience, dispelling its associated negativity.

Such investments, President Chakwera noted, would enhance global food security, reduce poverty and create employment opportunities for Africa’s youthful population.

The Malawi leader said the continent’s fertile lands have potential to catapult Africa into a global breadbasket.

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Iran: One Year on, What’s Changed?

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Active Citizens, Civil Society, Crime & Justice, Democracy, Economy & Trade, Featured, Gender, Headlines, Human Rights, Middle East & North Africa, TerraViva United Nations, Youth

Opinion

Credit: Dan Kitwood/Getty Images

MONTEVIDEO, Uruguay, Sep 19 2023 (IPS) – It’s a year since a photo of 22-year-old Mahsa Amini – bruised and in a coma she would never recover from after being arrested by the morality police for her supposedly improperly worn hijab – went viral, sending people onto the streets.

The protests became the fiercest challenge ever faced by Iran’s theocratic regime. The unprecedented scale of the protests was matched by the unparalleled brutality of the crackdown, which clearly revealed the regime’s fear for its own survival.

Led by women and young people, mobilisations under the ‘Woman, Life, Freedom’ banner articulated broader demands for social and political change. They spread like wildfire – to streets across Iran, to universities, even to cemeteries where growing numbers of the regime’s victims were being buried. They were echoed and amplified by the Iranian diaspora around the world. The Iranian people made it abundantly clear they wanted the Islamic Republic gone.

A year on, the theocratic regime still stands, but that doesn’t mean nothing has changed. By sheer force, the authorities have regained control – at least for now. But subtle changes in daily life reveal the presence of active undercurrents that could once again spark mass protests. The regime knows this, hence the fear with which it has awaited this date and its redoubled repression as it neared.

A glimpse of change

Last December, as protests raged and the authorities were busy trying to stop them, women could be seen on Iranian streets without their hijabs for the first time in decades. After the protests were quelled, many simply refused to resubmit to the old rules. A tactical shift followed, with mass street mobilisation turning into more elusive civil disobedience.

Women, particularly Gen Z women just like Mahsa, continue to protest on a daily basis, simply by not abiding by hijab rules. Young people express their defiance by dancing or showing affection in public. Cities wake up to acts of civil disobedience emblazoned on their walls. Anti-regime slogans are heard coming from seemingly nowhere. In parts of the country where many people from excluded ethnic minorities live, protest follows Friday prayers. It may take little for the embers of rebellion to reignite.

Preventative repression

Ahead of the anniversary, family members of those killed during the 2022 protests were pressured not to hold memorial services for their loved ones. The lawyer representing Mahsa Amini’s family was charged with ‘propaganda against the state’ due to interviews with foreign media. University professors suspected to be critical of the regime were dismissed, suspended, forced to retire, or didn’t have their contracts renewed. Students were subjected to disciplinary measures in retaliation for their activism.

Artists who expressed support for the protest movement faced reprisals, including arrests and prosecution under ridiculous charges such as ‘releasing an illegal song’. Some were kept in detention on more serious charges and subjected to physical and psychological torture, including solitary confinement and beatings.

Two months ago, the regime put the morality police back on the streets. Initial attempts to arrest women found in violation of hijab regulations, however, were met with resistance, leading to clashes between sympathetic bystanders and police. Women, including celebrities, have been prosecuted for appearing in public without their hijab. Car drivers carrying passengers not wearing hijab have been issued with traffic citations and private businesses have been closed for noncompliance with hijab laws.

The most conservative elements of the regime have doubled down, proposing a new ‘hijab and chastity’ law that seeks to impose harsher penalties, including lashes, heavy fines and prison sentences of up to 10 years for those appearing without the hijab. The bill is now being reviewed by Iran’s Guardian Council, a 12-member, all-male body led by a 97-year-old cleric.

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If not now, then anytime

In the run-up to 16 September, security force street presence consistently increased, with snap checkpoints set up and internet access disrupted. The government clearly feared something big might happen.

As the anniversary passes, the hardline ruling elite remains united and the military and security forces are on its side, while the protest movement has no leadership and has taken a bad hit. Some argue that what made it spread so fast – the role of young people, and young women in particular – also limited its appeal among wider Iranian society, and particularly among low-income people concerned above all with economic strife, rising inflation and increasing poverty.

There are ideological differences among the Iranian diaspora, which formed through successive waves of exiles and includes left and right-wing groups, monarchists and ethnic separatists. While most share the goal of replacing the authoritarian theocracy with a secular democracy, they’re divided over strategy and tactics, and particularly on whether sanctions are the best way to deal with the regime.

Ever since the protests took off last year, thousands of people around the world have shown their support and called on their governments to act. And some have, starting with the USA, which early on imposed sanctions on the morality police and senior police and security officials. New sanctions affecting 29 additional people and entities, including 18 members of the Islamic Revolutionary Guard Corps and security forces, were imposed on the eve of the anniversary of the protests, 15 September, International Day of Democracy. That day, US President Joe Biden made a statement about Mahsa Amini’s inspiration of a ‘historic movement’ for democracy and human dignity.

The continuing outpouring of international solidarity shows that the world still cares and is watching. A new regime isn’t around the corner in Iran, but neither is it game over in the quest for democracy. For those living under a murderous regime, every day of the year is the anniversary of a death, an indignity or a violation of rights. Each day will therefore bring along a new opportunity to resurrect rebellion.

Inés M. Pousadela is CIVICUS Senior Research Specialist, co-director and writer for CIVICUS Lens and co-author of the State of Civil Society Report.

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